Bengang Steel Plates Co., Ltd.
Annual Report 2018
April, 2019
I. Important Notice, Table of Contents, and Definitions
The Board of Directors, the Supervisory Committee and the Directors, members ofthe Supervisory Committee and senior management of the Company guarantee thatthere are no misrepresentations or misleading statements, or material omission in thisreport, and individually and collectively accept full responsibility for the authenticity,accuracy andintegrity of the information contained in this report.
Gao Lie, chairman of the Company, Shen Qi ang, Chief financial officer, and ZhaoZhonghua, the person in charge of the accounting department (the person in charge ofthe accounting), make the pledge for the authenticity, accuracy and integrity of theattac hed financial statements.All the members of the Board of Directors attended the board meeting on which thisrepor t was examined.The prospective statements contained in this annual report do not constitute anysubstantial commitment to the investors. Investors should pay attention to the risksattached to investment decisions. This report is prepared in both of Chinese andEnglish. The Chinese version shall prevail when there are any controversialstatements in the two versions.The Com pany takes existing share capital 3,875,371,532.00 shares as the base,distributing cash di vidends 0.5 Yuan per 10 shares (including tax), and distributingbonus dividends 0 to shareholders. The Company will not converse capital reserve toshare capital.
Table of Contents
I. Important Notice, Table of Contents, and Definitions ...................................................................... 2
II. Company Profile and Main Financial Index ................................................................................... 5
III. Company Business Summary ........................................................................................................ 9
IV. Management Discussion and Analysis ......................................................................................... 12
V. Important Events ............................................................................................................................ 24
VI. Status of Share Capital Changes and Shareholders ..................................................................... 49
VII. Status of Preferred Shares .......................................................................................................... 55
VIII. Status of Directors, Supervisors, Senior Executives and Employees ....................................... 56
IX. Corporate Governance ................................................................................................................. 64
X. Relevant Information about Corporate Bonds .............................................................................. 70
XI. Financial Report ........................................................................................................................... 71
XII. Documents available for inspection ......................................................................................... 186
Definition
Terms to be defined Refers to Definition
the Listed Company
Refers to Bengang Steel Plates Co., Ltd.
Bengang Bancai, Bengang Steel, the Company, | ||
Bengang Group | Refers to | Bengang Group Co., Ltd. |
Bengang Co. Refers to Benxi Steel & Iron (Group) Co., Ltd.Liaoning Provincial State-as set Administration Refers to Liaoning State-owned Asset Supervisory and Management CommitteeSSE Refers to Shenzhen Stock ExchangeBengang Puxiang Refers to Bengang Puxiang Cool Rolling Steel Sheet Co., Ltd.
II. Company Profile and Main Financial Index
I. Company Information
Stock abbreviation | Bengang Bancai, Bengangban B | Stock Code | 000761, 20 0761 |
Stock exch ange for listing | Shenzhen Stock Exchange |
Company name in Chinese±¾¸Ö°å²Ä¹É·ÝÓÐÏÞ¹«Ë¾
Chinese
±¾¸Ö°å²ÄCompany name in English (If any) BENGANG STEEL PLATES CO.,LTD.
Abbreviation of Company name inAbbreviation of Company name in
English (If any)
BSPLegal repr esentative Gao Lie
Abbreviation of Company name inRegistra tion Address
Registra tion Address | No.16, Renmin Road, Pingshan District, Benxi City, Liaoning Province |
Post Code of regis tration Address | 117000 |
Office address No.16, Renmin Road, Pingshan District, Benxi City, Liaoning ProvincePost Code of office address 117000Web Address NoneEmail bgbcdm@163.com
II. Contact Information
Secretary of Board of Directors Representative of Securities AffairsName Gao DeshengAddress
Benx i Cit y, Liaoning Province
Tel 024-47827003Fax 024-47827004
No.16, Renmin Road, Pingshan District,Email
bgbcdm@163.com |
III. Information Disclosure and Place for Consulting
Press media for information disclosure China Securities Journal, Securities Times, Hong Kong Commercial Daily
CSRC
http://www.cninfo.com.cnPlace for inquiry of the annual report Secretary Office of the Board, Bengang Steel Plate Co., Ltd.
IV. Change of Business Registration
Organization Code 91210000242690243EChanges of principal business activities since listing (if any) No changeChanges of the controlling shareholder in the past (is any) No change
V. Other Information
Accountants¡¯ firm engaged by the Company:
Name of the accountants¡¯ firm BDO China Shu Lun Pan Certified Public Accountants LLPAddress of the accountants¡¯ firm Address: 4/F 61 Nanjing Rd. East, Huangpu, ShanghaiSigning name of accountants Wu Xue, Li GuiyingSponsor engaged by the Company to conduct sustained supervision during the reporting period¡Ì Applicable ¡õ Not appli cableName of the sponsor inst itution
Address of the sponsor
institution
Name of the sponsor
representative
Sustained supervision periodShenwan Hongyuan SecuritiesUnderwriting Sponsoring Co.,Ltd.
No. 19, Taiping Bridge Street,Xicheng District, Beijing
Zhang Wei, Liu Guoku
March 5
th
, 2018 to December31th, 20 19
Financial consultancy institution engaged by the Company to conduct sustained supervision during the reporting period¡õ Applicable ¡Ì Not applicable
VI. Main Accounting Data and Financial Index
Whether the Company makes retroactive adj ustment or restatement of the accounting data of the last years due to chan ge of theaccounting policy and correction of accounting errors¡õ Yes ¡Ì No
2018 2017
Changed over last
year
2016Operating income£¨RMB£©50,181,869,721.54
40,507,855,843.72
23.88%
29,526,012,651.08
Net profit attributable to the shareholdersof the listed company£¨RMB£©
1,036,493,236.07
1,600,110,229.77
-35.22%
781,296,452.51
Net profit after deducting of non-recurringgain/loss attributable to the shareholdersof listed company£¨RMB£©
1,093,065,140.59
1,607,675,869.15
-32.01%
747,690,316.58
Net Cash flow generated by business |
operation£¨RMB£©
3,619,937,841.93
2,744,243,492.51
31.91%
9,557,419,076.92
Basic earn ings per share (RMB/Share) 0.272
0.510
-46.67%
0.249
Dilut ed gains per share (RMB/Share) 0.272
0.510
-46.67%
0.249
Weighted average net assets yield 5.64%
11.84%
-6.20%
6.34%
End of 2018 End of 2017
Changed over last
year
End of 2016Gross assets£¨RMB£©59,632,504,915.83
62,998,143,513.02
-5.34%
54,197,775,889.31
Net assets attributable to shareholders ofthe listed company£¨RMB£©
19,126,258,116.67
14,315,588,729.00
33.60%
12,757,376,174.34
VII. Differences between Domestic and Foreign Accounting Standards
1. Differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chineseaccounting standards.
¡õ Applicable ¡Ì Not applicable
Unit: Yuan
Net profit attributable to the shareholders of the
listed company
Net assets
listed company2018 2017 Ending balance Beginning balanceAccording to Chineseaccounting standards
1,036,493,236.07
attributable to the shareholders of the
1,600,110,229.77
19,126,258,116.67
14,315,588,729.00
Items and amounts adjusted according to IFRS: No difference
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas andChinese accounting standards.
¡õ Applicable ¡Ì Not applicableThere are no differences of net profi t and net assets disclosed in financial reports prepared under overseas and Chinese accountingstandards during the reporting period.
3. Reasons of differences between domestic and foreign accounting standards
¡õ Applicable ¡Ì Not applicable
VIII. Main Financial Index by Quarters
Unit: YuanFirst quarter Second quarter Third quarter Fourth quarterOperation income 11,641,518,226.15
11,799,729,150.99
13,313,390,671.44
13,427,231,672.96
Net profit attributable to theshareholders of the listed company
350,629,492.24
406,322,495.35
68,230,224.01
211,311,024.47
Net profit after deductingnon-
to the shareholders of listedcompany
347,300,210.06
recurring gain/loss attributable |
377,622,745.92
51,745,834.18
316,396,350.43
Net cash flows generated byoperating activities
-8,871,507,868.81
730,519,741.47
6,933,467,399.98
3,619,937,841.93
Whether significant variances exist between the abo ve financial index or the index with its sum and the financial index o f thequarterly r eport as well as semi-annual report index disclosed by the Company¡õ Yes ¡Ì No
IX. Items and Amount of Non-recurrin g Prof i ts and Losses
¡Ì Applicable ¡õ Not applicable
Unit: Yuan
Item
Item | 2018 | 2017 | 2016 | Notes |
Gains and losses on disposal of non-currentassets (including the write off part of theprovision for impairment)
-148,409,630.35
-65,886,612.10
-1,854,918.03
Government subsidy attributable to profit andloss of current period (except suchgovernment subsidy closely related to the
company's normal business operation, |
86,085,297.03
39,086,900.00
36,089,000.00
enjoyed constantly in certain quota orquantity according to a certain standard)
meeting the r egulation of national policy and |
Profit or loss from investment or |
assets entrusted to others
5,041,397.26
1,715,742.47
Gai ns and losses of debt restructuring
4,725,936.17
8,631,844.34
beginning of the period to the combinationdate of su bsidiaries generated from businesscombination under common control
Net profit of loss of the current period from |
24,668.65
other than above
771,191.90
Other non-operating income and expenses |
14,538,002.49
663,844.36
Less: impact of income tax 22,141.38
162,375.42
11,311,378.29
impact of minority equity (after tax) | 38,018.98 | -107,840.83 | 327,998.92 |
Total -56,571,904.52
-7,565,639.38
33,606,135.93
--Explanation for defining non-recurring gains and losses it ems according to the "Public Offering of Securities Information DisclosureExplanatory Notice No. 1 ¨C Non-Recurring Gains and Losses", and reasons for defining non-recurring gains and losses items listed inthe do cument as recurring items.¡õ Applicable¡Ì Not applicableThere exists no situation of defining non-recurring gains and losses items listed in the document as recurring items.
III. Summary of Company Business
I. the Company's main business during the reporting periodWhether the Company needs to comply with the disclosure requirement for special industryNo
(1) During the reporting period, the company's main business activities include steel smelting, rolling processing, power generation,coal chemical industry, special steel profiles, railways, import and exp ort trade, scientific research, and product sales. Theintroduction of world advanced equipment technology has enabled the implementation of equipment upgrades for the steel industry.The Company has built a fine steel base, formed more than 60 varieties, more than 7500 series of product specifications, highvalue-added and high-tech product rat io reach ed more th an 80%, au tomotive surface panels, household appliances, oil pipeline steel,container board Shipboard and other leading products are widely used in automobiles, home appliances, petrochemicals, aerospace,machinery manufacturing, energy transportation, construction and decoration, and metal products, and are exported to more than 60countries and regions.
During the reporting period, the Company further strengthened technical research, continuously discovered potentials anddramatical ly increased e fficiency, and promoted a substantial increase in production efficiency. The output of some varieties and therecord of daily output and class output were continuously refreshed. A series of indicators all reached the best level in history, and thequality of the Company¡¯s development was significantly improved. At the same time, the Company adap ts to the new requ irementsof the national environmental protection policy, identifies the responsibility for environmental protection work, and achievescontrollable pollution discharge through the strengthening of environmental protection facilities, the implementation of pollutantdischarge standards, and the improvement of automatic online monitoring facilities. The deployment was completed to meet thecentral en vir on mental p ro tection inspectors to inspect the work. In addition, 56 new auto market certification grades have added. TheCompan y has passed the Merced es-Benz and BMW auto market certifications, and successfully entered the world's top auto brandssuch as Ford, Fiat and Renault, marking the company's qualifications and capabilities to supply world-class auto companies. This is amilestone for the Company.
During the reporting period, the main performance drivers were: strongly promoted the second phase of the ¡°four determinants¡± work,orderly promoted all employees to compete for posts and ¡®last out¡¯ system, and the work efficiency was improved significantly.Basically established a ¡°de-administrati ve¡± broadband salary system, which simplifies the salary structure, broadens the promotionpath, an d improves th e performance man agement s ystem for all emp loyees and t he evaluatio n method for emplo yee performan ce. Atthe same t ime, around the process improvement, product structure adjustment and energy conservation and emission reduction, theconstruction of key project renovation projects was accelerated. The No. 5 blast furnace of the Company was successfully opened inone time after 77 days of overhaul. The new No. 1 blast furnace of the Company completed the maintenance task 7 days ahead ofschedule, creating a number of historical records of the same type of blast furnace renovation construction in China. The special steelfactory of the Company researched and implemented the project construction and improvement of the initial rolling zone based onthe requirements of high-quality development, and promoted the transformation and upgrading of the Company. In addition, theCompany¡¯s non-public offering raised 4 billion yuan, which is the first time in the past 20 years to refinance in the capital market.
No significant change occurred during the reporting period.
(2) D uring the reporting period, China's macro-economy sustained its steady growth. Under the strong promotion of the state'scontinuous supply-side structural reform, the prohibition of new production capacity and the prevention of the resurgence of¡®substandard steel products¡¯, China's steel industry has achieved steady progress. Although it is affected to some extent by China-UStrade frictions, steel pri ces are generally stable and remain within a reasonab le range. In particular, Present Xi made an importantspeech during the inspection tour in Liaoning and in the in-depth promotion of the Northeast Revitalization Symposium. The speechdirected the orientat ion of the revitalization of the Northeast in the new era and led th e navigation. It also created a rare historicalopportunity for the Company's development. The Company adheres to the supply-side structural reform as the main line, persists inthe general keynote of steady progress, firmly establishes and practices new concepts of development. It implements high-qualitydevelopment requirements, achieves stable growth of major economic indicators, and continuously improves comprehensivecompetitive strengths. The Company¡¯s status in the industry is standing.
II. Major Changes in Main Assets1. Major Changes in Main Asse t s
Main ass ets Notes to major changesConstruction in progress
65.09%, which is mainly caused by the part of Construction in progress transferred tofixes assets.Interest receivables
The balance at 31 December 2018 is RMB 11,608.70 thousa n d an d it ha s decreased by37.08% compared with beginning balance, which is mainly caused by the decreased ofinteres t receivables.Other cu rrent assets
The balance at 31 December 2018 is RMB 836,594.50 thousand and it has decreased byThe balance at 31 December 2018 is RMB 292,119.80 thousand and it has decreased by
63.91% compared with beginning balance, which is mainly caused by the decreased ofbank financial products.Available-for-sale financial assets
The balance at 31 December 2018 is RMB 292,119.80 thousand and it has decreased by |
The balance at the 31 December 2018 is RMB 1,041,824.80 thousand and it has |
increased by 26689.15%, which is mainly caused by the reason that the Company has10% shareholding of a new joint stock company-Dongbei Special Steel Group Co., Ltd.
Other non-current assets
The balance at the 31 December 2018 is RMB 76,342.00 thousand and it has decreasedby 92.85%, w hic h is because that the investment to East North Special Steel Co. , Ltd isadjus ted to available-for-sale financial assets.2. Main Information of Overseas Assets¡õ Applicable ¡Ì Not applicable
III. Analysis on Core Competitiveness
Whether the Company needs to comply with the disclosure requirement for special industryNo
In 2018, in response to the national industrial revitalization and development policy, and the supply-side structural reform, theCompany carefully planned a new round of technological transformation. The Company implemented technical transformationprojects construction in terms of variety aspect s such as structure adjustment, n ew material research and development, green andintelligent manufacturing, and capacity replacement. The construction will promote the development of high quality, green andintelligent enterprise. The Company successfully joined the China Automotive Engineering Society and the Corrosion-resistant SteelIndustry Technology Innovation Strategic Alliance, and actively integrated into the national technology innovation system;coordinated provincial and municipal departments to promote Hengtong's national high-tech enterprise identification work, andencourage the Company to enjoy the national tax reduction and exemption policy. The Company completed the annual assessment ofthe national technical center and six p rovincial enterprises technology centers, and the ranking was greatly improved. Strengthenforeign technical communication and cooperation, apply for major national and provincial science and technology projects throughmultiple ways. The Company declared a total of 36 government projects, including 6 national-level projects, 27 provincial-levelprojects and 3 other organization projects. 15 projects were approved. A total of 1.25 million government funding was obtained.
In order to comprehensively improve the level of technological innovation and profitability, strengthen product variety adjustmentand market development, improve product quality stability and assurance capabilities, promote low-cost and green manufacturingtechnologies, the Company carried out 58 company-level functions around the three major factors of variety, quality and cost. Someprojects have achieved phased results.
In 2018, a total of 39 new products were developed, including 17 new automotive applications, 6 home appliances, 10 new productsfor engineering structures, and 6 special steel products. Some varieties achieved batch supply. A total of 56 grades of products such ascold rol ling and galvanizing have been co mpleted. Users includ e Mercedes-Benz, BMW, GM, Nissan, Ford, Fiat, Renault and otherglobal famous brands, which indicates that the Company has the qualification to supply world-class auto companies. ability. A totalof 131 patents were accep ted by the State Int ellectual Property Office throu ghout the year; a total of 26 patents were authorized bythe State Intellectual Property Office, including 15 inventions and 11 utility new models. There were 4 new registration softwareproducts. Two invention patents were awarded to participate in the "China International Patent Exhibition".
The Company continued to promote industry-university-research and school-enterprise cooperation, signed a comprehensivestrategic co operation agreement with North eastern Universi ty, and organized the Company-Northeastern University to participate inthe School-Enterprise Cooperation Technical Matchmaking Meeting. Invi ting nearly 80 teachers from Northeast ern University, theCompany organized 8 sub-meeting venues for technical communication, and collect 69 projects. 28 cooperation projects wereinitially identified. It has carried out comprehensive cooperation and matchmaking work with Liaoning University of Science andTechnology. The cooperation covers technical development, talents cultivation and platform construction. In addition, the Companycoop erated and co mmunicated with B eijing Universit y of Science and Technology, China Iron and Steel Research Institute, Insti tuteof Metals of Chinese Academy of Sciences, Shanghai Uni versity, etc. through multi-levels, multi-channels and multi-forms. Thecooperation and communication have accelerated the transformation of scientific and technological achievements into realproductivity.
IV. Management Discussion and Analysis
I. General
During the reporting period, the com pany adhered to Xi Jinping's new era of socialism with Chinese characteristics asthe guide, in-dep th study and imple mentation of the spi rit of the 19th Par ty Congress, adher e to the general to ne ofstead y progres s, fir mly estab lish and practice new development concepts, and implement high-qual it y develo pment . Atthe same time, under the strong support of the supply-side structural reform and the well-developed steel market, thecompany entered a good momentum of sustained and stable development.T he Company produced 8.4874 million tons
of pig iron in the whole year, which decreased by 2.21%, 8.9603 million tons of crude steel which increased by 0.89%,11.4894 million tons of hot-rolled plate which decreased by 3.45%, 5.6053 million tons of cold-rolled sheet whichincreased by 3%, and 0.6801 million tons of special steel which decreased by 6.06% compared to last period. Thecompany did not have any major personal accidents, major fire accidents or major equipment accidents throughout theyear. Looking back at the past year's production and operation process, we mainly completed the following work:
First, the Company went all out to improve quality and efficiency. The qual ity of enterprise deve lopment has beensignificantly i mproved. The production record has been continuously refreshed. The project has been promotedefficiently. The product development has been fruitful, and the brand influence has been continuously expanded.Second, the Company solidly promoted the improvement of efficiency. The overall operation level of the enterprise iscomprehensively improved, effectively reduced the procurement cost, optimized the procurement management mode,strengthe ned the d ynamic manage ment of sup pliers, and strictly co ntrolled t he accep tance of materials. The Companyimproved product profitability and vigorously promoted e-commerce sales. Strengthen the operation of fund and capital,strengthen fund management, coordinate the use of funds, improve the efficiency of use, and optimize the capitallayout.Third, the Company unswervingly deepened reforms, further enhanced the vitality of enterprise development,vigorously promoted the work of ¡°Four Sets¡±, promoted the recruitment and elimination of all employees in an orderlymanner, established a ¡°de-administrative¡± broadband compensation system, and improved the performancemanagement system for all employees and staff performance evaluation method.The Company resolutely rectified the
work style, solidly car ried out the work style assessment of the department, carried out work discipline inspection andsupervi sion work, set up a two-level "service staff hotline", and broadened the channels for optimizing public opinionappeals. The Company promoted the handling of historical issues and accelerated the transfer of management rights andasset transfers for the ¡°three for one industry¡± assets.Fourth, the Company constantly consolidated the management foundation, continuously optimized the company'smanagement and control pr ocesses, strengthened the man agement of rules and regulations, improved the corporategovernance system, strengthened the mana gement system certifi cation, and independ ently developed ERP upgrad es.The scientific research system has been cont inuously improved, the IATF16949 system revision audit has be encompleted, the ¡°production, study and research¡± R&D platform has been established. The Company joined into theChina Automotive Engineer ing Society and the Corrosio n-Resistant Steel Industry Technology Innovation StrategicAlliance. The Company continuously promoted school-enterprise cooperation.T he safety ma nagement was effectivel y
strengthened, and the safety production resp onsibility system at all levels was comprehensi vely improved andimplemented, and the basic management of safety was strengthened. Continue to consolidate environmentalmanagement, strengthen the stable operation of environmental protection facilities, implement pollutant dischargestandards, improve automatic online monitoring facilities, and conduct a second survey of pollution so urces, steelindustry emission permit application, carbon emission verification, and environmental impact assessment ofconstruction projects. The talent management has been promoted in depth, and the channels have been widely recruitedto recruit talents who meet the needs of enterprise development, promote open competition and strengthen cadretraining.
II. Main Business Analysis
1. General
For relevant information please refer to ¡°Manageme nt Discussion and Analysis 1. General¡±.
2. Income and Cost(1) Components of Operating Income
Unit: Yuan
2018 | 2017 |
Change ov er last
year
Amount | Proportion | Amount | Proportion |
Total operating income 50,181,869,721.54
100%
40,507,855,843.72
100%
23.88%
By industriesIndustry 50,181,869,721.54
100.00%
40,507,855,843.72
100.00%
23.88%
By productsSteel plate 46,228,334,211.43
92.12%
37,488,231,200.04
92.55%
23.31%
Others | 3,953,535,510.11 | 7.88% | 3,019,624,643.68 | 7.45% | 30.93% |
By regionsNortheast 15,200,555,630.64
30.29%
12,039,186,774.85
29.72%
26.26%
North China 5,695,230,806.71
11.35%
5,345,627,433.43
13.20%
6.54%
East China 17,511,020,155.51
34.90%
11,602,151,558.67
28.64%
50.93%
Northwest 68,730,984.27
0.14%
65,574,747.86
0.16%
4.81%
Southwest | 179,439,784.55 | 0.36% | 121,903,398.49 | 0.30% | 47.20% |
Central south | 29,348,279.57 | 0.06% | 25,741,875.56 | 0.06% | 14.01% |
Export 11,497,544,080.29
22.90%
11,307,670,054.86
27.91%
1.68%
(2) Industry, Product and Regions Occupying the Company¡¯s Operating Income or Profit over 10%
¡Ì Applicable ¡õ Not applicable
Whether the Company needs to comply with the disclosure requirement for special industryNo
Unit: Yuan
Operating Income
Operating profit Gross margin
Operati ng income |
change ov er last
year
Operating profitchange ov er last
year
Gross marginchange ov er last
yearBy industries
50,181,869,721.54
Industry |
45,243,735,204.31
9.84% | 23.88% | 26.81% | -2.08% |
By products
Steel plate46,228,334,211.43
41,947,082,227.94
9.26%
23.31%
27.33%
-2.86%
Others3,953,535,510.11
3,296,652,976.37
16.62%
30.93%
20.59%
7.15%
By regions
15,200,555,630.64
Northeast |
13,838,195,282.28
8.96% | 26.26% | 29.47% | -2.26% |
North China5,695,230,806.71
5,156,755,673.96
9.45%
6.54%
9.60%
-2.54%
East China17,511,020,155.51
15,752,152,615.84
10.04%
50.93%
54.18%
-1.90%
Northwest68,730,984.27
63,477,268.44
7.64%
4.81%
8.84%
-3.42%
Southwest179,439,784.55
162,256,076.23
9.58%
47.20%
51.12%
-2.34%
Central south29,348,279.57
26,546,325.81
9.55%
14.01%
16.58%
-1.99%
Export |
11,497,544,080.29
10,244,351,961.75
10.90% | 1.68% | 3.69% | -1.73% |
Operating data of recent one year according to adjusted statistics caliber at the year-end in the case that the Company's main businessstatistics caliber has changed during the reporting period¡õ Applicable ¡ÌNot applicable
(3) Whether the Company¡¯s Physical Sales Income Exceeded Service Income
¡Ì Yes ¡õ No
Industry classification Item Unit 2018 2017
yearSteel rolling processingindustry
Change ov er last | |||
Sales | ton |
11,921,203.14
11,270,079.91
5.78%
Production | ton | 11,778,658 | 11,336,966 | 3.90% |
Inventory | ton | 644,714.08 | 787,259.58 | -18.11% |
The main reasons that the relevant data changed more than 30%¡õ Applicable ¡Ì Not applicable
(4) Performance of Significant Sales Contract Signed-up in this Reporting Period
¡õ Applicable ¡Ì Not applicable
(5) Components of Operating Cost
Industry classification
Unit: Yuan
Industryclassification
Item
2018 2017
Change ov er last
yearAmount Proportion Amount ProportionSteel rollingprocessing industry
Raw material21,947,301,201.20
48.51%
16,760,973,503.97
46.98%
1.53%
Steel rollingprocessing industry
Supplementarymaterials
2,042,667,624.99
4.51%
1,702,911,706.70
4.77%
-0.26%
Steel rolling |
processing industry
tools
736,234,636.78
Spare parts and |
1.63%
510,752,659.98
1.43%
0.20%
Steel rolling |
processing industry
Fuel12,532,214,109.19
27.70%
9,604,880,159.74
26.92%
0.78%
Steel rollingprocessing industry
Energy2,851,020,001.46
6.30%
2,459,372,335.20
6.89%
-0.59%
Steel rollingprocessing industry
Salary andbenefits
1,995,005,132.35
4.41%
1,892,325,541.52
5.30%
-0.89%
Steel rollingprocessing industry
Depreciation2,346,173,478.53
5.19%
2,020,739,760.10
5.66%
-0.48%
Steel rolling |
processing industry
Others793,119,019.81
1.75%
726,024,503.52
2.03%
-0.28%
Steel rolling |
processing industry
Total45,243,735,204.31
100.00%
35,677,980,170.73
100.00%
0.00%
(6) Whether Changes Occurred in Consolidation Scope in the Reporting Period
¡õ Yes ¡ÌNo
(7) Relevant Information of Significant Changes or Adjustment of the Business, Product or Service in theReporting Period
¡õ Applicable ¡Ì Not applicable
(8) Information of Main Customers and Main Suppliers
Information of the Company¡¯s main customers
Total sales amount of the top five customers (Yuan) 7,925,406,309.46
proportion of total annual sales
15.79%
Total sales amount of the top five customers accounted for the |
The proportion of the total sales of the related parties in thetop five customers
4.44%
Information of the top 5 customers
No
No | Name | Amount (Yuan) | Proportion |
1 Benxi Beiying Steel & Iron (Group) Co., Ltd.2,227,702,873.21
4.44%
2 Xiamen Jianfa Metals Co., Ltd.1,682,768,907.78
3.35%
Shanghai Minxingda International Trading Co.,Ltd.
1,572,092,746.56
3.13%
4 Ningbo AUX Trading Co., Ltd.1,446,750,945.73
2.88%
5 Zhejiang Hang Lian Steel Co., Ltd. 996,090,836.18
1.98%
Total --7,925,406,309.46
15.79%
Other information of principal customers¡õ Applicable ¡Ì Not applicableInformation of the Company¡¯s main suppliersTotal purchase amount of the top five suppliers (Yuan) 26,235,194,747.64Total purchase amount of the top five suppliers accounted forthe proportion of total purchase
57.99%
The proportion of the total purchase of the related parties inthe top five suppliers
44.25%
Information of the top 5 suppliers
No. | Name | Amount (Yuan) | Proportion |
1 Benxi Beiying Steel & Iron (Group) Co., Ltd.15,980,734,063.34
35.32%
2 Benxi Steel & Iron (Group) Mining Co., Ltd. 4,039,099,444.66
8.93%
3 Heilongjiang Dragon Coal Group Co., Ltd.2,686,319,470.24
5.94%
Power Supply Company
2,382,933,857.63
Liaoning Electric Power Co., Ltd. Benxi Electric |
5.27%
5 Shenyang Coking Coal Co., Ltd. Sales Branch1,146,107,911.77
2.53%
Total -- 26,235,194,747.64
57.99%
Other information of principal suppliers¡õ Applicable ¡Ì Not applicable
3. Expenses
Unit: Yuan2018 2017 Change over last year
Notes to significant
change
Selling and distribution expenses
Selling and distribution expenses | 1,135,004,470.47 | 1,184,294,573.92 | -4.16% | |
General and administrative expenses | 916,341,137.85 | 844,651,916.95 | 8.49% |
Financial expenses1,376,355,160.46
535,642,520.07
156.95%
Increase of exchangelosses in the cur r entperiodResearch and development expenses 6,399,884.30
8,208,922.25
-22.04% |
4. Research and Development Input
¡Ì Applicable ¡õ Not applicable
56 key science and technology projects of the company level were issued, and the project was organized in an orderly manner.Currently, 20 projects have been completed, 21 have been transferred, 8 have been postponed, 8 have been suspended or terminated,and the completed projects have been accepted , evaluated and identified. The considerable economic ben efits have improved thegrades and physical quality of the varieties, greatly impro ved th e abili ty of varieties to i ncrease pr ofit s, and made the "sal es resear chand production" more closely integrated, achieving integrated research and development and seamless docking.A total of 36 government projects were declared, of which 6 were nat ional-level pr ojects; 27 were pr ovincial-level p rojects; 3 wereorganized by other associations, and 15 were approved. A total of 1.25 million government funding was obtained.Information of research and development input by the company2018 2017 Change over last year
Development personnel
1,712
Number of Research and |
1,669
2.58%
Proportion of number ofResearch and Developmentpersonnel
9.51%
8.59%
0.92%
Amount of Research andDevelopment Investment (InRMB)
1,495,775,000.00
1,390,403,000.00
7.58%
Proportion of Research andDevelopment investment tooperating income
2.98%
3.43%
-0.45%
Amount of capitalized Research |
and Development investment
0.00
0.00
0.00%
Proportion of capitalizedResearch and Developmentinvestment accounted to totalResearch and Developmentinvestment
0.00%
0.00%
0.00%
Illustrations of the prominent change in proportion of research and development input occupying the operating income over sameperiod last year¡õ Applicable ¡Ì Not applicableIllustrations of significant change in the research and development input¡¯s capitalization rate and its reasonableness¡õ Applicable ¡Ì Not applicable
5. Cash Flow
Unit: Yuan
Item | 2018 | 2017 | Change ov er last year |
Subtotal of cash inflows from |
operating activities
42,888,958,869.76
39,077,319,940.56
9.75%
Subtotal of cash outflows fromoperating activities
39,269,021,027.83
36,333,076,448.05
8.08%
Net cash flow s from operatingactivities
3,619,937,841.93
2,744,243,492.51
31.91%
Subtotal of cash inflows frominvesting activities
684,483,213.49
427,294,593.14
60.19%
Subtotal of cash outflows paidfor investing activities
761,988,848.56
2,343,736,950.05
-67.49%
Net cash flow s from investing |
activities
-77,505,635.07
-1,916,442,356.91
95.96%
Subtotal of cash inflows from |
financing activities
35,061,062,441.77
29,075,698,099.54
20.59%
Subtotal of cash outflows fromfinancing activities
39,211,589,467.82
29,785,971,645.05
31.64%
Net cash flows fr om financingactivities
-4,150,527,026.05
-710,273,545.51
-484.36%
Net incr ease in cash and cash | -565,028,156.96 | -7,062,880.14 | -7,899.97% |
Illustrations of key factors of significant changes over same period last year¡Ì Applicable ¡õNot applicableNotes:
(1) Net cash flows from operating activities increased by 31.91% compared with the previous period, which
mainly due to the increase in cash received from sale of goods is more than the increase in cash paid for goodsand services.(2) Subtotal of cash inflows from investing activities increased by 60.19% com pared with the previous period,
which was mainly due to the increase in cash received from the purchase of finance products during theperiod.(3) Subtotal of cash outflows from investing activities decreased by 67.49% compared with the previous period,
mainly due to the decrease in cash paid for investment in the current period.(4) Net cash flows from investing activities increased by 95.96% compared to the previous period, which mainly
due to the decrease in cash paid for investment in the current period.(5) Subtotal of cash outflows from financing activities increased by 31.64% compared to the previous period,
mainly due to the increase in cash repayments of borrowings.(6) Net cash flows from financing activities decreased by 484.36% compared to the previous period, mainly due
to the increase in cash repayments of borrowings.
Illustrations of significant difference between cash flow from operating activities and net profit during the reporting period¡õ Applicable ¡ÌNot applicable
III. Analysis of Non-core Business
¡ÌApplicable ¡õ Not applicable
Unit: YuanAmount Proportion in total profit Explanation of cause Whether sustainable
equivalents
Investment income 5,212,886.01
0.49%
Due to interest income fro mfinance products
NoImpairment of assets 37,147,168.61
3.52%
Due to provision of impairment of |
finished products
NoNon-operating income 8,384,120.14
0.80%
Due to in come raised fromscrapping of non-current assets
NoNon-operating expenses 156,235,959.72
14.82%
Due to overhaul of the blast |
furnace and scrap of non-currentassets
No
IV. Assets and Liabilities
Significant Change of Assets Components
Unit: Yuan
End of 2018 End of 2017
Proportion
change
Notes to
significant
changeAmount
Propor tion inthe total assets
(%)
Amount
Propor tion inthe total assets
(%)Cash at bank and onhand
16,567,471,755.77
27.78%
17,037,713,410.49
27.04%
0.74%
Accounts receivable | 639,482,481.45 | 1.07% | 728,597,926.39 | 1.16% | -0.09% |
Inventories10,677,747,112.40
17.91%
11,209,898,096.16
17.79%
0.12%
Long-term equityinvestment
2,455,681.55
0.00%
2,726,009.03
0.00%
0.00%
Fixed assets | 23,924,504,539.97 | 40.12% | 23,852,067,166.10 | 37.86% | 2.26% |
Construction inprocess
836,594,457.82
1.40%
2,396,143,330.06
3.80%
-2.40%
Short-term loans11,938,490,375.85
20.02%
21,999,103,900.00
34.92%
-14.90%
Long-term loans7,083,640,094.16
11.88%
2,444,185,630.28
3.88%
8.00%
2. Assets and Liabilities Measured at Fair Value
¡õ Applicable ¡Ì Not appli cable
3. Restricted Assets by the End of the Period
Items Ending balance ReasonCash at bank and on hand 4,814,923,133.80 Deposit for notes and L/CNotes receivable 124,096,196.40
Pledged for acceptance bill and
short-term loan
Total 4,939,019,330.20
V. Investment
1. General
¡õ Applicable ¡Ì Not applicable
2. Acquiring Significant Equity Investment in the Reporting Period
¡õ Applicable ¡Ì Not applicable
3. Undergoing Significa nt Non-equity Investment in the Reporting Period
¡õ Applicable ¡Ì Not applicable
4. Investment of Financial Assets(1) Investment in Securities
¡õ Applicable ¡Ì Not applicableThere was no investment in securities during the reporting period.
(2) Investment in Derivatives
¡õApplicable ¡Ì Not applicableThere was no investment in derivatives during the repor ting period.
5. Use of Raised Funds
¡Ì Applicable ¡õ Not applicable
(1) Use of Raised Funds
¡ÌApplicable ¡õ Not applicable
Unit: 10 thousand yuan
Year
Source of
funding
Total amount
Usedamount
current
period
Accumulatively used
amount
Thetotalamount
during the | of funds |
raised
forchangin
gpurpose
thereporting period
Accumulat
of fundsraised forchangingpurposes
Proportion
ed amount |
Totalamount of
funds
raisedhave notbeen used
P
fund
raised |
have notbeen used
Theamount of
fundsraised formore thantwo years
of idle2018
Privateplacement
3,965,799,988.19
3,170,677,243.45
3,170,677,243.45
0.00%
267,523,003.62
Deposit 0
Total --3,965,799,988.19
3,170,677,243.45
3,170,677,243.45
0.00%
267,523,003.62
-- 0
Description of the overall use of raised funds
is no change in the company's investment projects in 2018.2. Initial investment and replacement of fund raising projects: The 14th meeting of the 7th Board of Directors and the 10th m
eeting |
of the 7th Board of Supervisors reviewed and approved the proposal on self-raised funds for the use of raised fund
pre-investment funds.
Before the funds raised received, in order to ensure the smooth implementation of the fundraising project, the |
company built the project with self-raised funds. As of February 28, 2018, the amount of pre-investment of self-
raised funds was 1,822,749,211.07 yuan, including 1,484,133,089.39 yuan for cold-rolled high-
strength steel renovation project and |
338,616,121.68 yuan for hot-dip galvanizing production line of three cold rolling mills. Details are as follows:
(1) The replacement amount of the cold-rolled high-strength steel reconstruction engineering company with self-
raise funds for the initial investment is RMB 1,484,133,089.39, mainly for equipment purchase and construction, etc.(2) The replacement amount of the project funded for the Third Cold Rolling Mills Hot-
Dip Galvanizing Production Line with |
self-
used i n the construction of the fundraising project with the self-
raised funds to replace the funds raised. The initial investment and |
replacement of the above-
Accountants LLP. Please refer to PCPAR [2018] No. ZB10101 ¡°Verification report on the self-
raised fund invested in the raised |
funds investment project of Bengang Steel Plates Co., Ltd¡±.(3) Temporary replenishment of circulating funds with idle raised funds: During the repor
the company's fund-raising investment project construction and the fund-
raising plan, part of the funds raised in this issuance is |
temporarily idle. According to the provisions of the "Procedures for the Management
Shenzhen Stock Exchange"
, in accordance with the principle of maximizing the interests of shareholders, under the premise of |
ensuring the fund demand for investment projects and the investment projects for raisin
further reduce the compan y's financial costs, reduce finan cial expenses, and protect the in terests of investors. The company
uses |
530,000,000.00 yuan (250,000,000.00 yuan for cold-rolled high-strength steel renovation project, 280,000,000.00 yuan for hot-
galvanizing production line of three cold rolling mills). The raised funds will temporarily supplement the working capital, a
nd the |
term of use will not exceed 12 months from the date of approval by the board
Directors and the 10th meeting of the 7th Board of Supervisors held on March 13
, 2018. The company's independent directors have |
issued a clear statement. The consen t opinion has fulfilled the necessary decision -
to temporarily supplement the liquidity matters will change the use of raise
d funds or affect the normal operation of the raised |
funds investment plan. There is no damage to the interests of shareholder.
12 months. The company has promised not to use idle raised funds for high-
risk investment, in line with the provisions of the |
relevant laws, regulations and regulatory documents, including the ¡°Regulatory Guidelines No. 2 of Listed Companies ¨C
Regulatory Requirements for the Management and Use of Raised Funds of Listed Compani
es¡±, ¡°Stock Exch ange Listing Rules o f |
Shenzhen Stock Exchange¡± and ¡°Shenzhen Stock Exchange the Standard Operating Guidelines for Main Board Listed Companies¡±.
The use of idle raised funds to temporarily replenish working capital does not involve the use o
f funds in disguised form or affect |
the normal operation of the raised funds investment plan. The sponsor institution agreed to use the idle raised funds to temp
supplement the working capital and issued the ¡°Verification Opinions of Shenwan Hongyua
n Securities Underwriting and |
Sponsoring Co., Ltd. on the temporary replenishment of working capital by Bengang Steel Plate Co., Ltd. using idle raised funds¡±.4. Usage of surplus funds raised: During the reporting period, the company did not have any use of surplus funds raised.5. Use and destination of raised funds that have not been used: As of December 31, 2018, the company's remaining raised funds
temporarily saved in special account for fund raising.
(2) Fundraising commitments
¡ÌApplicable ¡õ Not applicable
Unit: 10 thousand yuan
projects andover-raised funds
Whether
theprojecthas beenchanged(including partialchanges)
Raisedfunds
Committed investment | promised |
totalinvestme
nt
Totalamount
ofinvestme
nt afteradjustme
nt (1)
Amountinvested
during
the
period
Accumul
atedinvestme
ntamountas of the
reporting | end of the period |
(2)
Investme
ntprogressas of the
(3)£½(2)/(1)
Date of
theprojectreaches
theexpected
usablestatus
Benefitsachieved
during
the
end of the period | reporting |
period
Whether
theexpectedbenefits
areachieved
Whether
theproject
haschangedsignifican
tly
feasibility | |
Committed invested projects |
High Strength ColdRolling SteelRenov a t ion Pr oject
No
2,265,799,988.
2,265,799,988.
1,767,751,121.
1,767,751,121.
78.02%
91,742,364.48
No No
The Third Cold Rolling |
Work Hot-DipGalvanizingProduction LineProject
No700,000,000
700,000,000
402,926,121.6
402,926,121.6
57.56%
No NoRepayment of bankloans
No1,000,000,000
1,000,000,000
1,000,000,000
1,000,000,000
100.00%
No NoSubtotal --
3,965,799,988.
3,965,799,988.
3,170,677,243.
3,170,677,243.
-- -- 91,742,364.48
-- --Over-raised funds
Not applicable
Not applicable |
Total --
3,965,799,988.
3,965,799,988.
3,170,677,243.
3,170,677,243.
-- -- 91,742,364.48
-- --
Situation and cause offailure to meet plannedprogress or projectedear ning s (dis c l os e d byproject)
High Strength Cold Rolling Steel: The project has not yet been fully constructed, and the part that hasalready been put into use has not yet reached the design output at the beginning of the operation.Des c ri pti on of m a jorchanges in projectfeasibility
None.Amount, use andprogress of usage ofover-raised funds
Not applicable
Change in theimplementationlocati on of the raisedfunds investmentproject
Not applicable
Adjustment ofimplementationmethods offund-raisinginvestment projects
Not applicable
The initial investment
and replacem ent of thefundraising investmentproject
The initial investment | Applicable |
Refer to the Contents in Sp ec ial Report III 4Temporaryreplenishment ofworking capital withidle raised funds
Applicable
Refer to the Contents in Special Report III 5
for the res t of raisedfund in the projectimplementation
Not applicable
Use and destination ofraised funds that havenot been us e d
Refer to the Contents in Special Report III 8
The amount and reasonProblems or other
situations in the use
and disclosure of raised |
funds
There are no problems or other situations. The use of funds raised by the company is reasonable andstandardized, and the use of raised funds is disclosed in a timely, truthful, accurate and complete manner.
(3) The situation for raised funds change project
¡õ Applicable ¡Ì Not applicableDuring the reporting period, the company did not have any changes in the fundraising project.
VI. Significant Assets and Equity Sold in Reporting Period
1. Significant Assets Sold
¡õ Applicable ¡Ì Not applicableThere was no s ignificant asset sold during the reporting period.
2. Substantial Equity Sold
¡õ Applicable ¡Ì Not applicable
VII. Analysis on Main Subsidiaries and Share Participating Companies
¡Ì Applicable ¡õ Not applicableMain subsidiaries and the joint-stock companies influencing over 10% net profit of the Company
Unit: YuanCompany Name
Company
type
Mainbusiness
Registered
capital
Total assets Net assets
Operating
income
Operating
profit
Net Profit
Puxiang CoolRolling Steel
Sheet Co., Ltd. |
Subsidiaries
and sal esof steel
1,920,000,000.00 4,678,899,388.23
Processing |
1,999,945,307.67
8,063,719,253.01
10,700,557.20
8,838,074.77
Acquirement and disposal of subsidiaries during the reporting period¡õ Applicable ¡Ì Not applicableIllustration of main joint-stock companies
VIII. Structure Entities controlled by the Company
¡õ Applicable ¡Ì Not applicable
IX. Prospect for Future Development of the Company
1. The development trend of the industry and the market competitionIn 2019, the uncertainty of the domestic steel market increased, although the country will continue to increasesupply-side structural reforms and infrastructure construction, but the continuous release of steel production capacityand reasonable adjustment of upstream and downstream profits, as well as the formation of Sino-US trade friction. Thereturn of the market will also have a certain impact on steel prices.H owever, from the perspective of national
authoritative opinions and industry analysis, domestic steel production capacity has basically become reasonable, andwill maintain a basic balance between supply and demand fo r a long time, and the stee l industry will continue t omaintain a stable and good development trend.G eneral Secretary Xi Jinping made an important speech during the
inspection tour in Liaon ing and in the in-depth promotion of the Northeast Revitalization Symposium. He directed theorientation of the revitalization of the Northeast in the ne w era and led the navigation. It further strengthened ourconfidence and determination to accelerate the revitalization and development and pointed out the progress forLiaoning's revita lization and develop ment. The direction and the provision of scienti fic methods will surel y open up anew era of Liaoning's revitalization and development in a new era.
2. The Company¡¯s development strategyThe overall wo rk idea of 2019: comprehensively implement the spirit of the important speech of General Secretary XiJinping during the inspectio n tour in Liaoning and in-depth promotion of the Northeast Revitalization Symposium,adhere to the supply-side structural r eform as the main line, implement the high-quali ty d evelo p ment r equir e ments , andconsistently implement the new development concept. With "four efforts" and "three advances", the Company willunswervingly deepen reforms, seize opportunities and innovate breakthroughs, and strive to build a world-classenterprise gro up w ith world competitiveness.
3. Business planThe overall goal of production and operation in 2019: strive to complete 10 million tons of pig iron, 10.14 million tonsof crude steel, 1 4.34 million tons of hot rolled sheet, 5.95 million tons of cold rolled sheet, 700,000 tons of special steel,and achieve "three zeros" for safe production.In order to achieve the above objectives, we will focus on the following aspects:
(1) Taking the reform of institutional mechanism as a breakthrough to further stimulate the vitality of enterprises.(2) Continuously optimize resource allocation and create new impetus for innovation and development.(3) In-depth implement benchmarking potential and comprehensively improve comprehensive competitive strength.(4) Continue to promote process optimization and build a scientific and rational management and control system.(5) Strengthen party building and ideological work, and create a new situation for enterprise development.
4. Maintaining current business and completing the required capital arrangements of invested projects under
construction.The company will use its own funds and bank loans to meet the funds needed for production operations andtechnological tr a nsformation.
5. Potential risks
£¨1£©Opera tiona l risks:
At present, although the pressure on production capacity of the steel industry is reduced, the demand for domestic steelhas not increased significantly. The demand for steel for machinery, automobiles, home appliances and other relatedindustries wil l slow down, and the contradiction between supply and demand is still outstanding.Countermeasures: Optimize product structure, improve product quality, improve cost, and continue to implementrefined management; organize p roduction in a scientific manner around core products, improve production flexibility;strengthe n dynamic management of market i nformation, and timel y make mar ket forecas t and corr esponding b usinessstrategy adjustment
£¨2£©Environm e ntal protection risks:
China's envi ronmental protection policies and standards are becoming more and more perfect and strict, and theenvironmental protection supervision of enterprises is maintaining a strict trend. Liaoning Pro vince's "Three-YearAction Plan for Blue Sky Defence Warfare" requires the implementation of ultra-low emission transfor mation of thesteel industry. Wastewater, waste gas and waste residue generated in the production process of enterprises will becomethe key targets for environmental protection. In order to achieve full compliance emission, the company will investmore manpower, material resources and financial resources, which will cause the company to face greater pressure onproduction costs. F urther tightening of e nvironmental protection sta ndards will further increase the related compliancerisks.Countermeasures: increase internal environme ntal protection efforts, increase investment in environmental protectio nrenovation projects, and c ontinuously tap the potential for emi ssion reduction; strengthen poll ution source control,control emissions of various pollutants in accordance with national emission limit standards, a nd on the basis ofachieving emission standards, Ultra-low emission standards are marching forward; in-depth implementation ofenvironmental management responsibility, strengthening internal supervision and inspection of various types ofpollution sources of the company, and strengthening environmental awareness of all employees.
£¨3£©Raw fuel price risk:
Althoug h the compan y has certa in advantage s in its own m ines, the sel f-sufficiency rate of iron ore is not high. I f theprice of raw fuel such as coal, coke, ore continues to run at a high level, it will lead to high raw material procurementcosts for steel co mpanies. As the natio nal environmental pr otection policy beco mes more and more strict, it ma y bringgreat difficulty to the supply of mineral resources products, and the fluctuation of the original fuel price may be furtherincreased. If the market trend forecast is inaccurate, it may cause shortage or backlo g of inve ntor y, which may result i nproduction obstruction or waste of resources.Countermeasures: Accurately grasp the procurement market information, scientifically formulate procurement plans,adjust the p urchase quantit y by machine, and rationally control the inventory to achieve cost r eduction and efficiencyincrease. Establish strategic cooperation with customers in the procurement and sales markets to reduce the adverseeffects caused by price fluctuations and ensure the normal production and operation of enterprises
X. Researches, visits and interviews received in this reporting period
1. Registration form of researches, visits and interviews received in this reporting period
¡õ Applicable ¡Ì Not applicableDuring the reporting period, the Company did not receive any research, communication, interviews and other activities.
V. Important Events
I. Profit Distribution or Capital Reserve Conversion
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash dividendpolicy during the reporting period¡õ Applicable ¡Ì Not applicable
The profit distribution plan or proposal and the plan or proposal of conversion of the capital reserve into share capital inrecent three years (including the reporting period)
1. Profit distribution proposal of 2018As audited by BDO China Shu Lun Pan Certi fied Public Accountants LLP., the net profit attributable to the parentcompany of the year 2018 was RMB 1,036,493,236.07. After adding the retained profit of RMB 1,103,162,610.35 at thebeginning of the year, and deducting the actual dividend of RMB 193,768,576.6 from the previous year, the balance ofundistributed profit was RMB 1,945,887,269.82.Profits distribution plan of 2018: The company will take existing share capital 3,875,371,532 shares as the base,distributing cash dividends RMB 0.5 per 10 shares (including tax) to shareholders. The company plans to distributeRMB193,768,576.60 dividends of ordinary shares, and the remaining RMB 1,752,118,693.22 will be carried over tonext yea r¡¯s undistributed profits. This proposal will be subject to approval of the Shareholders¡¯ Annual Meeting of 2018.
2. Profit distribution proposal of 2017As audited by BDO China Shu Lun Pan Certified Public Accountants LLP., the net profit attributable to the parent company of theyear 2017 was RMB 1,600,110,229.77. After adding the retained profit of RMB -496,947,619.42 at the beginning of the year, thebalance of undistribu ted profit was RMB 1,103,162,610.35.Profits distribution plan of 2017: The company will take existing share capital 3,875,371,532 shares as the base, distributing cashdividends RMB 0.5 per 10 shares (including tax) to shareholders. The company plans to distribute RMB193,768,576.60 dividends ofordinary shares, and the remaining RMB 909,394,033.75 will be carried over to n ext year¡¯s undistributed profits. This proposal willbe subject to approval of the Shareholders¡¯ Annual Meeting of 2017.
3. Profit distribution plan of 2016As audited by BDO China Shu Lun Pan Certified Public Accountants LLP., the net profit attributable to the parent company of theyear 2016 was RMB 781,274,829.32. After adding th e retained profit of RMB -1,278,244,071.93 at the beginning of the year, thebalance of undistributed profit was RMB -496,969,242.61.Profits distribution plan of 2016: due to a loss in 2016, according to the relevant C hinese regulations and l aws and the Company'sArticles of Association, the company would not withdraw surplus reserves. The company planed not to distribute cash dividend orbonu s shares, and not to convert capital reserve into share capital.
Cash dividend distribution in recent three years
Unit: YuanYear
Cash dividend(Including Tax)
Net profit attributable to the
parent company in theconsolidated financial
statements
to the parent company in the
consolidated financial
statements
Amount of
Ratio in net profit attributable | cash dividends |
in other ways
Propor tion ofcash dividendsin other ways2018
193,768,576.60 | 1,036,493,236.07 | 18.69% | 0.00 | 0.00% | |
2017 | 193,768,576.60 | 1,600,110,229.77 | 12.11% | 0.00 | 0.00% |
2016 | 0.00 | 781,296,452.51 | 0.00% | 0.00 | 0.00% |
Both 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¡õ Applicable ¡Ì Not appl icable
II. Profit Distribution or Capital Reserve Conversion Proposal in the Reporting Period
¡Ì Applicable ¡õ Not applicableDividend distributed per 10 shares (share) 0
Cash dividend per 10 shares (RMB)£¨including tax
£© |
0.50
The number of capital reserve conversion per 10shares (share)
Share capital base of the distribution plan (share)3,875,371,532
Total amount of cash dividends (RMB) (includingtax)
193,768,576.60
Cash dividend amount (RMB) in other ways (such |
as repurchasing shares)
0.00
Total amount of cash dividends (RMB) (includingother method)
193,768,576.60
Distributable profits 1,945,887,269.82
The proportion of cash dividends to total profit |
distribution
18.69%
The distribution of cash dividends
Others
Detailed description profit distribution or capital reserve conversion proposal | |
1. Profit distribution proposal of 2018 As audited by BDO China Shu Lun Pan Certified Public Accountant s LLP., the net profit attributable to the parent |
company of the year 2018 was RMB 1,036,493,236.07. A
the beginning of the yea
r, and deducting the actual dividend of RMB 193,768,576.6 from the previous year, the |
balance of undistributed profit was RMB 1,945,887,269.82.Profits distribution plan of 2018: The company will take existing share capital 3,875,371,532 shares as the
RMB193,768,576.60 dividends of ordinary shares, and the remaining RMB 1,752,118,693.22
will be carried over to |
next year¡¯s undistributed profits.
2018.
2. Profit distribution proposal of 2017As audited by BDO China Shu Lun Pan Certified Public Accountants LLP., the net profit attributable to the parent comp
any of the |
year 2017 was RMB 1,600,110,229.77. After adding the retained profit of RMB -496,947,619.42 at the beginning of the year, t
balance of undistributed profit was RMB 1,103,162,610.35.Profits distribution plan of 2017: T he company will take exis
ting share capital 3,875,371,532 shares as the base, distributing cash |
dividends RMB 0.5 per 10 shares (including tax) to shareholders. The company plans to distribute RMB193,768,576.60
ordinary shares, and the remaining RMB 909,394,033.75 will be carried over to next year¡¯s undistributed profits. This proposal
will |
be subject to approval of the Shareholders¡¯ Annual Meeting of 2017.
3. Profit distribution plan of 2016As audited by BDO China Shu Lun Pan Certified Public Accountants LLP., the
year 2016 was RMB 781,274,829.32. After adding the retained profit of RMB -1,278,244,071.93 at the beginning of the year, t
he |
balance of undistributed profit was RMB -496,969,242.61.Profits distribution plan of 2016: due to a loss in 2016, according to the relevant Chinese regulations an d laws and the C
Articles o f Associatio n, the company would not withdraw surplus reserves. The company planed
not to d istrib ute cash d ividend or |
bonus shares, and not to convert capital reserve into share capital.
III. Performance of Committed Issues
1. The fulfilled commitments during the reporting period and under-fulfillment commitments by the end ofthe period made by actual controller, acquirer, director, supervisor, senior management personnel andother related parties.
¡Ì Applicable ¡õ Not applicable
Commitments
party
Commitment | Type of |
commitment
Contents
time
Commitment | Commitment |
period
PerformanceCommitment of sharesreform
Commitment made in theacquisition report or theequity change report
asset restructuring
Commitment made duringinitial public of f e ring orrefinancing
Companydirectors,seniormanagement
Othercommitment
According to therelevant provisions ofthe China SecuritiesRegulatoryCommission, thefollowing commitmentscan be made to thecompany¡¯s efforts to fillthe rewards: During thetenure, faithfully and
Commitment made during | ||
diligently perform duties |
and safeguards thelegitimate rights andinterests of the companyand all shareholders,
to: 1. Commitment notto transfer benefits toother unit s orindividuals withoutcom pe ns a t ion or unfairconditions, and not todamage the company¡¯sinterests in other ways;2. Commitment toconstr
ain the behavior of |
job consumption; 3.Commitment to not usecompany assets toengage in i nvestmentand consumptionactivities unrelated tothe performance of theirduties; 4. Commitmentto the compensationsystem established bythe board of directors orthe Remuneration andAppraisal Committee islinked to theimplementation of thecompany's measures tocover th e r eturn; 5. Ifthe company launchesan equity incentive planin the future, the terms
Jan 26
th
2016 Dec 9
th
2019
Under normalfulfillment
linked to theimplementation of thecompany's measures tofill the rewards.LiaoningProvincial
equity incentive plan are | ||
Transportation |
InvestmentGroup Co.,Ltd.
Share salesrestriction
be locked for 12 monthsfrom the date of thelisting of the newnon-publ ic offering ofshares, and will not betransferred during thisperiod.
Mar 5
th
2018
12 monthsfrom the dateof the listingof the newnon-publicoffering
Under normalfulfillment
The allocated shares will | ||
CCB Principal |
AssetManagementCo.,Ltd.
Share salesrestriction
be locked for 12 monthsfrom the date of thelisting of the newnon-publ ic offering ofshares, and will not betransferred during thisperiod.
Mar 5
th
2018
12 monthsfrom the dateof the listingof the newnon-publicoffering
Under normalfulfillment
BeixinRuifeng FundManagementCo., Ltd.
Share salesrestriction
The allocated shares will |
The allocated shares will |
be locked for 12 monthsfrom the date of thelisting of the newnon-publ ic offering ofshares, and will not betransferred during thisperiod.
Mar 5
th
2018
12 monthsfrom the dateof the listingof the newnon-publicoffering
Under normalfulfillment
China LifeAMP AssetManagementCo., Ltd.
Share salesrestriction
be locked for 12 monthsfrom the date of thelisting of the newnon-publ ic offering ofshares, and will not betransferred during thisperiod.
Mar 5
th
2018
12 monthsfrom the dateof the listingof the newnon-publicoffering
Under normalfulfillmentStock option incentivecommitment
The allocated shares will
Other commitm ents to the
company's minorityshareholders
Whether C ommitmentfulfilled on time or not
Yes
2. The Company made illustrations that there are assets or projects which meet the original profit forecastand the reasons w hen there are a ssets or projects profit forecast of the Company and the reporting periodis still in the forecast period
¡õ Applicable ¡Ì Not applicable
IV. Illustrations of Non-Operating Occ upation of Funds by the Controlling Shareholder andRelated Parties
¡õ Applicable ¡Ì Not applicableThere was no non-oper ating occupation of funds by the controlling shareholder and related parties
V. Illustrations of the Supervisory Committee and Independent Directors (If Applicable) onthe Qualified Audit Report Issued by the CPAs
¡õ Applicable ¡Ì Not applicable
VI. Illustrations of Cha nges in t he Accounting Policy, Accounting Es timate and Measu re mentMethods as Compared with the Financial Report of Last Year
¡Ì Applicable ¡õ Not applicable
Ministry of Finance issued ¡°Notice of the Ministry of Finance on the revision of the format for the issuance of thefinancial state ments of the general enterprise for the year 2018¡± (Cai Kuai 2018 No.15) on 15 June 2018, which revisedthe format of financial statement for the general enterprise. The major impact of the imple mentation of the above threeregulations are as follows:
The contents and reasons
The ite ms affected and the amount
(1)
of accounting policy changes |
In Statement of Financial Position, "Notes |
receivable" and "Accounts receivable" are combined
payable an d accoun ts p ayable"; "I nt erest r eceivabl e"
and "Dividends receivable" are incorporated into "Other receivables"; "Interest payable" and "Dividends payable" are incorporated into "Other account payables"; "Disposal of fixed assets" is |
incorporated into "fixed as sets", "Project materials"
"Long-
term payables". The comparative data is |
adjus ted accordingly.
"Notes receiv able" and "Accounts receivab le" arecombined and shown as "Notes receivable andaccounts receivable", amount for current year is
4,575,031,627.26;"Notes payable" and "Accounts
payable" are combined and shown as "Notes payable and accounts payable", amount for |
current year is 15
receivables¡± increased 11,608,705.43 in currentyear, and the increasing amount for previous year
is 18,448,520.50; ¡°Other account payables¡± |
increased 9,658,681.99 in current year, and the
increased 4,900,986.11 in current year, and the
increasing amount for previous year is 4,558,919.60. |
(2)
expenses" is added to the St
atement of Comprehensive Income, reclassifying R&D expenses originally under "General and administrative expenses" into "Research and | "General and administrative expenses" is |
decreased by 6,399,884.30 in current year and
reclassified to "
Research and development expenses ";The amount of ¡°interest expenses¡± for |
"Interest income" are added to
the Statement of Comprehensive Income under financial expenses. The compar ative data is adjusted accordingly. | this year is 1,278,508,985.59, amount for previous year is 1,023,936,982.91; ¡°interest |
incomes¡± in this year is 200,356,927.95, amountfor previous year is 142,752,764.37.
¢÷. Illustrations of Retrospective Restatement Due to Correction of Significant AccountingErrors in the Reporting Period
¡õ Applicable ¡Ì Not applicableThere was no retrospective restatement due to correction of significant accounting errors during the reporting period
VIII. Illustrations of Changes of the Consolidation Scope as Compared with the FinancialReport of Last Year
¡õ Applicable ¡Ì Not applicableThere is no change of the consolidation scope during the reporting period.
IX. Appointment and Dismiss of Certified Accountant¡¯s Firm
Accountant¡¯s firm currently appointed
Name of the domestic accountant¡¯s firm | BDO China Shu Lun Pan Certified Public Accountants LLP |
Payment to t he domestic accoun tant ¡¯s firm (RMB 10 |
thousand)
Service life o f domestic accountant¡¯s firm providing |
audit service
Name of CPAs from the domestic accountant¡¯s firm Wu Xue, Li Guiying
Service life o f domestic acco unt ants¡¯ providing audit |
service
Name of the o ver seas accountant¡¯s firm (if any) None
Payment to overseas accountant¡¯s firm (RMB 10 |
thousand) (if any)
Service life of
overseas accountant¡¯s firm providing |
audit service (if any)
None
Name of CPAs from the overseas accountant¡¯s firm |
(if any)
None
Whether the accountant¡¯s firm was changed during the reporting period¡õ Yes ¡Ì NoEngagement of accountant¡¯s firms, financial consultants or sponsors for internal control auditing¡Ì Applicable ¡õ Not applicableThe Company appointed BDO China Shu Lun Pan Certified Public Accountants LLP as the auditor of internal control auditing atRMB 600 thousand.During the year, due to the non-public offering of shares, the company hired Shenwan Hongyuan Securities Underwriting andSponsoring Co., Ltd. as the sponsor, and paid a total of RMB 10 million during the period.
X. Risk of Suspension or Termination of Listing after the Disclosure of Annual Report
¡õ Applicable ¡Ì Not applicable
XI. Bankrupt and Reforming Events
¡õ Applicable ¡Ì Not applicableThere was no bankrupt and reforming event during the reporting period.
XII. Significant Lawsuits and Arbitrations
¡õ Applicable ¡Ì Not applicableThere was no significant lawsuit or arbitrations during the reporting period.
XIII. Punishment and Rectification
¡õ Applicable ¡Ì Not applicableThere was no punishment or rectification during the reporting period.
XIV. Credit Status of the Company and its Controlling Shareholders and Actual Controllers
¡õ Applicable ¡Ì Not applicable
XV. I mplementation Situation of Stock Incentive Plan of the Company, Employee Stock
Ownership Plan or Other Employee Incentive Measures
¡õ Applicable ¡Ì Not applicable
There was no implementation situation of stock incentive plan of the Company, employee stock ownership plan or otheremployee incentive measures during the reporting period.
XVI. Major Rel at ed Party Transactions1. Related party transactions relevant to daily operations
¡Ì Applicable ¡õ Not applicable
Relatedparties
Relation
ship
Type ofrelated
partytransacti
ons
C
relatedpartytransactio
ns
Pricing
ontent of | principle |
ofrelatedpartytransacti
ons
Price
ofrelate
dpartytransactions
Amount |
ofrelated
partytransactions (in
thousan
d)
Proporti
on ofsimilartransacti
ons
Theapprove
dtradinglimit oftransactions (in
thousan
d)
Whether exceed
theapprove
dlimited(Y/N)
Means
ofpaymen
t ofrelated
partytransacti
ons
Availabl
emarketprice ofsimilartransacti
ons
Date ofdisclosu
re
Index
ofdisclos
ure
BenxiSteel &Iron(Group)Co., Ltd.
ParentCompany
Purchase o fgoodsandservices
Accountspayablefor repair
Onagreement
Relatedagreementprice
30,864.
0.68%
35,000
No
Executeaccording totheagreement
No
2018.04.20
BenxiSteel &Iron(Group)Co., Ltd.
ParentCompany
Purchase o fgoodsandservices
Landlease fee
Onagreement
Relatedagreementprice
5,469.1
0.12%
No
Executeaccording totheagreement
No
2018.04.20
BengangCold-rolled
controller
Purchase o fgoods
Products
Same | On |
agreement
Relatedagree
362.5
0.01%
No
Executeaccording to
Yes
2018.04.20
Relatedparties
Relation
ship
Type ofrelated
partytransacti
ons
C
relatedpartytransactio
ns
Pricing
ontent of | principle |
ofrelatedpartytransacti
ons
Price
ofrelate
dpartytransactions
Amount |
ofrelated
partytransactions (in
thousan
d)
Proporti
on ofsimilartransacti
ons
Theapprove
dtradinglimit oftransactions (in
thousan
d)
Whether exceed
theapprove
dlimited(Y/N)
Means
ofpaymen
t ofrelated
partytransacti
ons
Availabl
emarketprice ofsimilartransacti
ons
Date ofdisclosu
re
Index
ofdisclos
ure
Stainless |
SteelDandongCo., Ltd.
services
and | ment |
price
agreementBenxiSteel &Iron(Group)MiningCo., Ltd.
Samecontroller
Purchase o fgoodsandservices
Labor cost
the | ||
Onagreement
Relatedagreementprice
2,200.1
0.05%
400,000
No
Executeaccording totheagreement
No
2018.04.20
Benxi |
Steel &Iron(Group)MiningCo., Ltd.
Samecontroller
Purchase o fgoodsandservices
materialandsupplementarymaterial
Onagreement
Relatedagreementprice
401,542
.74
Raw |
8.88%
No
according totheagreement
Yes
2018.04.20
BenxiSteel &Iron(Group)MiningCo., Ltd.
Samecontroller
Purchase o fgoodsandservices
Freight
Onagreement
Relatedagreementprice
167.04
Execute | ||
0.00%
No
Executeaccording totheagreement
Yes
2018.04.20
BenxiSteel &Iron(Group)MetallurgyResiduesCo., Ltd.
Samecontroller
Purchase o fgoodsandservices
Rawmaterialandsupplementarymaterial
Onagreement
Relatedagreementprice
25,866.
0.57%
20,000
No
Executeaccording totheagreement
No
2018.04.20
BenxiSteel &Iron(Group)Steel &IronProcessandLogisticsCo., Ltd.
Samecontroller
Purchase o fgoodsandservices
Processing fee
Onagreement
Relatedagreementprice
160.26
0.00%
No
Executeaccording totheagreement
No
2018.04.20
BenxiSteel &Iron(Group)Real-estateDevelopment Co .,Ltd.
Samecontroller
Purchase o fgoodsandservices
Rawmaterials
Onagreement
Relatedagreementprice
7,757.9
0.17%
10,000
No
Executeaccording totheagreement
Yes
2018.04.20
Benxi |
Steel &Iron
Samecontroller
(Group) | Purchas |
e o fgoods
Spareparts
Onagreement
and | Relate |
dagree
14,321.
ment |
0.32%
25,000
No
according to
the |
Yes
2018.04.20
Relatedparties
Relation
ship
Type ofrelated
partytransacti
ons
C
relatedpartytransactio
ns
Pricing
ontent of | principle |
ofrelatedpartytransacti
ons
Price
ofrelate
dpartytransactions
Amount |
ofrelated
partytransactions (in
thousan
d)
Proporti
on ofsimilartransacti
ons
Theapprove
dtradinglimit oftransactions (in
thousan
d)
Whether exceed
theapprove
dlimited(Y/N)
Means
ofpaymen
t ofrelated
partytransacti
ons
Availabl
emarketprice ofsimilartransacti
ons
Date ofdisclosu
re
Index
ofdisclos
ure
Machiner |
yManufacture Co.,Ltd.
services | price | agreeme |
ntBenxiSteel &Iron(Group)MachineryManufacture Co.,Ltd.
Samecontroller
Purchase o fgoodsandservices
Repairservices
Onagreement
Relatedagreementprice
4,617.2
0.10%
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
BenxiSteel &Iron(Group)Construction Co.,Ltd.
Samecontroller
Purchase ofgoodsandservices
Spareparts
Onagreement
Relatedagreementprice
1,072.3
0.02%
60,000
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
BenxiSteel &Iron(Group)Construction Co.,Ltd.
Samecontroller
Purchase o fgoodsandservices
Projectfee
Onagreement
Relatedagreementprice
8,375.5
0.19%
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
BenxiSteel &Iron(Group)Construction Co.,Ltd.
Samecontroller
Purchase o fgoodsandservices
Repairservices
Onagreement
Relatedagreementprice
21,285.
0.47%
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
Steel &Iron(Group)Construction Co.,Ltd.
Samecontroller
Purchase o fgoodsandservices
Rawmaterialandsupplementarymaterial
Onagreement
Relatedagreementprice
55.12
Benxi |
0.00%
No
Execute
accordi
ng to
the
agreeme
nt
Yes
2018.04.20
Steel &Iron(Group)Construction Co.,Ltd.
Samecontroller
Purchase o fgoodsandservices
Freight
Onagreement
Relatedagreementprice
1,469.3
Benxi |
0.03%
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
Steel &Iron
(Group) |
Samecontroller
e o fgoods
and | Raw |
materialand
Onagreement
suppleme | Relate |
dagree
19,722.
ment |
0.44%
40,000
No
accordi
ng to
the |
Yes
2018.04.20
Relatedparties
Relation
ship
Type ofrelated
partytransacti
ons
C
relatedpartytransactio
ns
Pricing
ontent of | principle |
ofrelatedpartytransacti
ons
Price
ofrelate
dpartytransactions
Amount |
ofrelated
partytransactions (in
thousan
d)
Proporti
on ofsimilartransacti
ons
Theapprove
dtradinglimit oftransactions (in
thousan
d)
Whether exceed
theapprove
dlimited(Y/N)
Means
ofpaymen
t ofrelated
partytransacti
ons
Availabl
emarketprice ofsimilartransacti
ons
Date ofdisclosu
re
Index
ofdisclos
ure
Industrial |
Development Co .,Ltd.
services | ntary |
material
price | agreeme |
ntBenxiSteel &Iron(Group)Construction Co.,Ltd.
Samecontroller
Purchase o fgoodsandservices
Repairservices
Onagreement
Relatedagreementprice
2,576.9
0.06%
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
BenxiSteel &Iron(Group)IndustrialDevelopment Co .,Ltd.
Samecontroller
Purchase o fgoodsandservices
Freight
Onagreement
Relatedagreementprice
581.17
0.01%
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
BenxiSteel &Iron(Group)IndustrialDevelopment Co .,Ltd.
Samecontroller
Purchase o fgoodsandservices
Projectfee
Onagreement
Relatedagreementprice
189.45
0.00%
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
BenxiSteel &Iron(Group)Construction andRepairingCo., Ltd.
Samecontroller
Purchase o fgoodsandservices
Rawmaterial&supplementarymaterials& spareparts
Onagreement
Relatedagreementprice
573.58
0.01%
30,000
No
Execute
accordi
ng to
the
agreeme
nt
Yes
2018.04.20
Benxi |
Steel &Iron(Group)Construction andRepairingCo., Ltd.
Samecontroller
Purchase o fgoodsandservices
Projectfee
Onagreement
Relatedagreementprice
2,473.2
0.05%
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
BenxiSteel &Iron(Group)Construction andRepairingCo., Ltd.
Samecontroller
Purchase o fgoodsandservices
Accountspayablefor repair
Onagreement
Relatedagreementprice
20,379.
0.45%
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
Bengang
Same
Electronic | controll |
Purchas
Raw
e o f | material |
On
Relate
agreeme | d |
14,695.
0.32%
20,000
No
Execute
accordi |
Yes
2018.04.20
Relatedparties
Relation
ship
Type ofrelated
partytransacti
ons
C
relatedpartytransactio
ns
Pricing
ontent of | principle |
ofrelatedpartytransacti
ons
Price
ofrelate
dpartytransactions
Amount |
ofrelated
partytransactions (in
thousan
d)
Proporti
on ofsimilartransacti
ons
Theapprove
dtradinglimit oftransactions (in
thousan
d)
Whether exceed
theapprove
dlimited(Y/N)
Means
ofpaymen
t ofrelated
partytransacti
ons
Availabl
emarketprice ofsimilartransacti
ons
Date ofdisclosu
re
Index
ofdisclos
ure
s and Gas |
Co., Ltd.
er | goods |
andservices
supplementarymaterial
and | nt | agree |
mentprice
theagreementBengangElectronics and GasCo., Ltd.
Samecontroller
Purchase o fgoodsandservices
Repairservices
Onagreement
Relatedagreementprice
3,085.9
ng to | ||
0.07%
No
Executeaccording totheagreement
No
2018.04.20
High-
tech |
DrillingToolsManufacture Co.,Ltd.
Samecontroller
Purchase o fgoodsandservices
Spareparts
Onagreement
Relatedagreementprice
61.16
0.00%
No
Executeaccording totheagreement
No
2018.04.20
BenxiNewCareerDevelopment Co .,Ltd.
Samecontroller
Purchase o fgoodsandservices
Repairservices
Onagreement
Relatedagreementprice
340.23
0.01%
2,000
No
Executeaccording totheagreement
No
2018.04.20
BenxiNewCareerDevelopment Co .,Ltd.
Samecontroller
Purchase o fgoodsandservices
Rawmaterialandsupplementarymaterialand food
Onagreement
Relatedagreementprice
630.15
0.01%
No
Executeaccording totheagreement
No
2018.04.20
LiaoningMetallurgyTechnician College
Samecontroller
Purchase o fgoodsandservices
Spareparts
Onagreement
Relatedagreementprice
1,151.3
0.03%
2,000
No
Executeaccording totheagreement
Yes
2018.04.20
Liaoning |
MetallurgicalVocational andTechnicalCollege
Samecontroller
Purchase o fgoodsandservices
Projectfee
Onagreement
Relatedagreementprice
0.00%
No
Executeaccording totheagreement
No
.20
2018.04 | ||
Liaoning |
MetallurgicalVocational andTechnicalCollege
Samecontroller
Purchase o fgoodsandservices
Repairservices
Onagreement
Relatedagreementprice
449.86
0.01%
1,000
No
Executeaccording totheagreement
No
2018.04 |
.20
BengangGroupInternatio
controller
Purchase o fgoods
Agencyfee
Same | On |
agreement
Relatedagree
7,602.2
0.17%
35,000
No
Executeaccording to
No
2018.04 |
.20
Relatedparties
Relation
ship
Type ofrelated
partytransacti
ons
C
relatedpartytransactio
ns
Pricing
ontent of | principle |
ofrelatedpartytransacti
ons
Price
ofrelate
dpartytransactions
Amount |
ofrelated
partytransactions (in
thousan
d)
Proporti
on ofsimilartransacti
ons
Theapprove
dtradinglimit oftransactions (in
thousan
d)
Whether exceed
theapprove
dlimited(Y/N)
Means
ofpaymen
t ofrelated
partytransacti
ons
Availabl
emarketprice ofsimilartransacti
ons
Date ofdisclosu
re
Index
ofdisclos
ure
nal Economic |
andTradingCo., Ltd.
services
and | ment |
price
agreementBengangGroupInternational
the | ||
Economic |
andTradingCo., Ltd.
Samecontroller
Purchase o fgoodsandservices
Portsurcharges
Onagreement
Relatedagreementprice
11,692.
0.26%
No
Executeaccording totheagreement
No
2018.04.20
Steel &Iron(Group)Information andAutomatic TechCo., Ltd.
Samecontroller
Purchase o fgoodsandservices
Spareparts
Onagreement
Relatedagreementprice
2,551.2
Benxi |
0.06%
7,000
No
Executeaccording totheagreement
Yes
.20
BenxiSteel &Iron(Group)Information andAutomatic TechCo., Ltd.
Samecontroller
Purchase o fgoodsandservices
Projectfee
Onagreement
Relatedagreementprice
3,283.8
2018.04 | ||
0.07%
No
Executeaccording totheagreement
Yes
2018.04.20
BenxiSteel &Iron(Group)Information andAutomatic TechCo., Ltd.
Samecontroller
Purchase o fgoodsandservices
Repairservices
Onagreement
Relatedagreementprice
1,292.3
0.03%
No
Executeaccording totheagreement
No
2018.04.20
Steel &Iron(Group)ThermalPowerDevelopment Co .,Ltd.
Samecontroller
Purchase o fgoodsandservices
Heatingcosts
Onagreement
Relatedagreementprice
183.78
Benxi |
0.00%
2,000
No
Executeaccording totheagreement
No
.20
BenxiSteel &Iron(Group)Thermal
Samecontroller
Purchase o fgoodsandservices
Rawmaterialandsupplementary
Onagreement
Relatedagreementprice
7.54
2018.04 | ||
0.00%
No
Executeaccording totheagreeme
Yes
2018.04.20
Relatedparties
Relation
ship
Type ofrelated
partytransacti
ons
C
relatedpartytransactio
ns
Pricing
ontent of | principle |
ofrelatedpartytransacti
ons
Price
ofrelate
dpartytransactions
Amount |
ofrelated
partytransactions (in
thousan
d)
Proporti
on ofsimilartransacti
ons
Theapprove
dtradinglimit oftransactions (in
thousan
d)
Whether exceed
theapprove
dlimited(Y/N)
Means
ofpaymen
t ofrelated
partytransacti
ons
Availabl
emarketprice ofsimilartransacti
ons
Date ofdisclosu
re
Index
ofdisclos
ure
Power |
Development Co .,Ltd.
material | nt |
BenxiSteel &Iron(Group)
Institute
Samecontroller
Purchase o fgoodsandservices
Designfees
Onagreement
Relatedagreementprice
510.96
Designing |
0.01%
2,000
No
Executeaccording totheagreement
No
2018.04.20
BeiyingSteel &Iron(Group)Co., Ltd.
Samecontroller
Purchase o fgoodsandservices
Benxi | Raw |
materialandsupplementarymaterial
Onagreement
Relatedagreementprice
1,507,9
72.99
33.33%
1,700,0
No
Execute |
according totheagreement
Yes
.20
BenxiBeiyingSteel &Iron(Group)Co., Ltd.
Samecontroller
Purchase o fgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
80,758.
2018.04 | ||
1.78%
No
Executeaccording totheagreement
No
2018.04.20
BenxiBeiyingSteel &Iron(Group)Co., Ltd.
Samecontroller
Purchase o fgoodsandservices
Freight
Onagreement
Relatedagreementprice
588.11
0.01%
No
Executeaccording totheagreement
No
2018.04.20
BenxiBeiyingSteel &Iron(Group)Co., Ltd.
Samecontroller
Purchase o fgoodsandservices
Labor cost
Onagreement
Relatedagreementprice
8,117.3
0.18%
No
Executeaccording totheagreement
No
2018.04.20
BenxiBeiyingSteel &Iron(Group)Co., Ltd.
Samecontroller
Purchase o fgoodsandservices
Spareparts
Onagreement
Relatedagreementprice
636.62
0.01%
No
Executeaccording totheagreement
Yes
2018.04.20
HengtongMetallurgicalEquipmentManufacture Co.,Ltd.
Samecontroller
Purchase o fgoodsandservices
Rawmaterialand spareparts
Onagreement
Relatedagreementprice
10,000.
Liaoning |
0.22%
15,000
No
Executeaccording totheagreement
Yes
.20
LiaoningHengtaiHeavyMachiner
Samecontroller
Purchase o fgoodsand
Rawmaterialand spareparts
Onagreement
Relatedagreement
2,106.6
2018.04 | ||
0.05%
5,000
No
Executeaccording tothe
No
2018.04.20
Relatedparties
Relation
ship
Type ofrelated
partytransacti
ons
C
relatedpartytransactio
ns
Pricing
ontent of | principle |
ofrelatedpartytransacti
ons
Price
ofrelate
dpartytransactions
Amount |
ofrelated
partytransactions (in
thousan
d)
Proporti
on ofsimilartransacti
ons
Theapprove
dtradinglimit oftransactions (in
thousan
d)
Whether exceed
theapprove
dlimited(Y/N)
Means
ofpaymen
t ofrelated
partytransacti
ons
Availabl
emarketprice ofsimilartransacti
ons
Date ofdisclosu
re
Index
ofdisclos
ure
y Co., |
Ltd.
services | price | agreeme |
ntLiaoningHengtaiHeavyMachinery Co.,Ltd.
Samecontroller
Purchase o fgoodsandservices
Repairand laborcost
Onagreement
Relatedagreementprice
2,266.2
0.05%
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
BengangGroupCo., Ltd.
Controller
Purchase o fgoodsandservices
Propertymanagement fee
Onagreement
Relatedagreementprice
0.00%
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
BengangElectronics and GasCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
89.86
0.00%
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
BenxiBeiyingSteel &Iron(Group)Co., Ltd.
Samecontroller
Sales ofgoodsandservices
Rawmaterial&supplementarymaterials& spareparts
Onagreement
Relatedagreementprice
80,882.
1.61%
260,000
No
Execute
accordi
ng to
the
agreeme
nt
Yes
2018.04.20
BenxiBeiyingSteel &Iron(Group)Co., Ltd.
Samecontroller
Sales ofgoodsandservices
Products
Onagreement
Relatedagreementprice
2,143.1
0.04%
No
Execute
accordi
ng to
the
agreeme
nt
Yes
2018.04.20
BenxiBeiyingSteel &Iron(Group)Co., Ltd.
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
139,744
.84
2.78%
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
Steel &Iron(Group)Real-estateDevelopment Co .,Ltd.
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
12.15
Benxi |
0.00%
No
Execute
accordi
ng to
the
agreeme
nt
No
.20
BenxiSteel &Iron(Group)
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreement
51.01
2018.04 | ||
0.00%
1,000
No
Execute
accordi
ng to
the
No
2018.04.20
Relatedparties
Relation
ship
Type ofrelated
partytransacti
ons
C
relatedpartytransactio
ns
Pricing
ontent of | principle |
ofrelatedpartytransacti
ons
Price
ofrelate
dpartytransactions
Amount |
ofrelated
partytransactions (in
thousan
d)
Proporti
on ofsimilartransacti
ons
Theapprove
dtradinglimit oftransactions (in
thousan
d)
Whether exceed
theapprove
dlimited(Y/N)
Means
ofpaymen
t ofrelated
partytransacti
ons
Availabl
emarketprice ofsimilartransacti
ons
Date ofdisclosu
re
Index
ofdisclos
ure
Steel & |
IronProcessandLogisticsCo., Ltd.
price | agreeme |
nt
Steel &Iron(Group)Steel &IronProcessandLogisticsCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Products
Onagreement
Relatedagreementprice
Benxi |
0.00%
No
Executeaccording totheagreement
Yes
.20
2018.04 | ||
Benxi |
Steel &Iron(Group)MachineryManufacture Co.,Ltd.
Samecontroller
Sales ofgoodsandservices
Products
Onagreement
Relatedagreementprice
2,009.0
0.04%
20,000
No
Executeaccording totheagreement
Yes
2018.04 |
.20
BenxiSteel &Iron(Group)MachineryManufacture Co.,Ltd.
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
1,758.6
0.04%
No
Executeaccording totheagreement
No
2018.04.20
BenxiSteel &Iron(Group)MachineryManufacture Co.,Ltd.
Samecontroller
Sales ofgoodsandservices
Rawmaterial&supplementarymaterials& spareparts
Onagreement
Relatedagreementprice
1,310.9
0.03%
No
Executeaccording totheagreement
Yes
2018.04.20
Steel &Iron(Group)Construction Co.,Ltd.
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
467.84
Benxi |
0.01%
20,000
No
Executeaccording totheagreement
No
.20
BenxiSteel &Iron(Group)
Samecontroller
2018.04 | ||
Sales of |
goodsandservices
Rawmaterial&suppleme
Onagreement
Relatedagreement
5,416.3
0.11%
No
Executeaccording tothe
Yes
.20
Relatedparties
Relation
ship
Type ofrelated
partytransacti
ons
C
relatedpartytransactio
ns
Pricing
ontent of | principle |
ofrelatedpartytransacti
ons
Price
ofrelate
dpartytransactions
Amount |
ofrelated
partytransactions (in
thousan
d)
Proporti
on ofsimilartransacti
ons
Theapprove
dtradinglimit oftransactions (in
thousan
d)
Whether exceed
theapprove
dlimited(Y/N)
Means
ofpaymen
t ofrelated
partytransacti
ons
Availabl
emarketprice ofsimilartransacti
ons
Date ofdisclosu
re
Index
ofdisclos
ure
Construct |
ion Co.,Ltd.
materials& spareparts
ntary | price | agreeme |
ntBenxiSteel &Iron(Group)MiningCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
68,372.
1.36%
100,000
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
BenxiSteel &Iron(Group)MiningCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Raw |
material&supplementarymaterials& spareparts
Onagreement
Relatedagreementprice
6,421.8
0.13%
No
Execute
accordi
ng to
the
agreeme
nt
Yes
.20
BenxiSteel &Iron(Group)MiningCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Freightrevenue
Onagreement
Relatedagreementprice
1,086.2
2018.04 | ||
0.02%
No
Execute
accordi
ng to
the
agreeme
nt
No
2018.04.20
BenxiSteel &Iron(Group)MiningCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Products
Onagreement
Relatedagreementprice
935.65
0.02%
No
Execute
accordi
ng to
the
agreeme
nt
Yes
2018.04.20
BenxiSteel &Iron(Group)ThermalPowerDevelopment Co .,Ltd.
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
5,825.3
0.12%
12,000
No
Execute
accordi
ng to
the
agreeme
nt
Yes
2018.04.20
Benxi |
Steel &Iron(Group)ThermalPowerDevelopment Co .,Ltd.
Samecontroller
Sales ofgoodsandservices
Rawmaterial&supplementarymaterials& spareparts
Onagreement
Relatedagreementprice
0.07
0.00%
No
Execute
accordi
ng to
the
agreeme
nt
Yes
2018.04.20
BenxiSteel &Iron(Group)
Samecontroller
Sales ofgoodsandservices
Freightrevenue
Onagreement
Relatedagreementprice
Thermal |
0.00%
No
Execute
accordi
ng to
the
No
2018.04.20
Relatedparties
Relation
ship
Type ofrelated
partytransacti
ons
C
relatedpartytransactio
ns
Pricing
ontent of | principle |
ofrelatedpartytransacti
ons
Price
ofrelate
dpartytransactions
Amount |
ofrelated
partytransactions (in
thousan
d)
Proporti
on ofsimilartransacti
ons
Theapprove
dtradinglimit oftransactions (in
thousan
d)
Whether exceed
theapprove
dlimited(Y/N)
Means
ofpaymen
t ofrelated
partytransacti
ons
Availabl
emarketprice ofsimilartransacti
ons
Date ofdisclosu
re
Index
ofdisclos
ure
Power |
Development Co .,Ltd.
BenxiSteel &Iron(Group)IndustrialDevelopment Co .,Ltd.
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
753.92
nt | ||
0.02%
20,000
No
Executeaccording totheagreement
No
2018.04.20
BenxiSteel &Iron(Group)IndustrialDevelopment Co .,Ltd.
Samecontroller
Sales ofgoodsandservices
Products
Onagreement
Relatedagreementprice
1,459.1
0.03%
No
Executeaccording totheagreement
Yes
2018.04.20
Steel &Iron(Group)IndustrialDevelopment Co .,Ltd.
Samecontroller
Sales ofgoodsandservices
Benxi | Raw |
material&supplementarymaterials& spareparts
Onagreement
Relatedagreementprice
1,021.1
0.02%
No
Executeaccording totheagreement
No
.20
BenxiSteel &Iron(Group)Information andAutomatic TechCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
25.45
2018.04 | ||
0.00%
No
Executeaccording totheagreement
No
2018.04.20
BenxiSteel &Iron(Group)Construction andRepairingCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
132.2
0.00%
1,200
No
Executeaccording totheagreement
No
2018.04.20
Benxi |
Steel &Iron(Group)Construction andRepairingCo., Ltd.
Samecontroller
Sales ofgoodsandservices
material&supplementarymaterials& spareparts
Onagreement
Relatedagreementprice
5,008.9
Raw |
0.10%
No
Executeaccording totheagreement
Yes
.20
Relatedparties
Relation
ship
Type ofrelated
partytransacti
ons
C
relatedpartytransactio
ns
Pricing
ontent of | principle |
ofrelatedpartytransacti
ons
Price
ofrelate
dpartytransactions
Amount |
ofrelated
partytransactions (in
thousan
d)
Proporti
on ofsimilartransacti
ons
Theapprove
dtradinglimit oftransactions (in
thousan
d)
Whether exceed
theapprove
dlimited(Y/N)
Means
ofpaymen
t ofrelated
partytransacti
ons
Availabl
emarketprice ofsimilartransacti
ons
Date ofdisclosu
re
Index
ofdisclos
ureBenxiSteel &Iron(Group)MetallurgyResiduesCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
555.29
0.01%
15,000
No
Executeaccording totheagreement
No
2018.04.20
BenxiSteel &Iron(Group)MetallurgyResiduesCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Rawmaterial&supplementarymaterials& spareparts
Onagreement
Relatedagreementprice
23,215.
0.46%
No
Executeaccording totheagreement
Yes
2018.04.20
Steel &Iron(Group)MetallurgyResiduesCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Freightrevenue
Onagreement
Relatedagreementprice
Benxi |
0.00%
No
Executeaccording totheagreement
No
.20
BenxiSteel &Iron(Group)MetallurgyResiduesCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Products
Onagreement
Relatedagreementprice
1,732.8
2018.04 | ||
0.03%
No
Executeaccording totheagreement
Yes
2018.04.20
BenxiSteel &Iron(Group)Co., Ltd.
ParentCompany
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
132.59
0.00%
12,000
No
Executeaccording totheagreement
No
2018.04.20
BenxiSteel &Iron(Group)Co., Ltd.
ParentCompany
Sales ofgoodsandservices
Rawmaterial&supplementarymaterials& spareparts
Onagreement
Relatedagreementprice
300.21
0.01%
No
Executeaccording totheagreement
No
2018.04.20
BenxiNewCareerDevelopment Co .,Ltd.
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
43.87
0.00%
No
Executeaccording totheagreement
No
2018.04.20
Dalian | Same | Sales of | Products | On | Relate | 585.99 | 0.01% | 1,000 | No | Execute | Yes | 2018.04 |
Relatedparties
Relation
ship
Type ofrelated
partytransacti
ons
C
relatedpartytransactio
ns
Pricing
ontent of | principle |
ofrelatedpartytransacti
ons
Price
ofrelate
dpartytransactions
Amount |
ofrelated
partytransactions (in
thousan
d)
Proporti
on ofsimilartransacti
ons
Theapprove
dtradinglimit oftransactions (in
thousan
d)
Whether exceed
theapprove
dlimited(Y/N)
Means
ofpaymen
t ofrelated
partytransacti
ons
Availabl
emarketprice ofsimilartransacti
ons
Date ofdisclosu
re
Index
ofdisclos
ure
Boluole |
SteelTube Co.,Ltd.
er
controll | goods |
andservices
nt
agreeme | d |
agreementprice
ng totheagreement
accordi | .20 |
LiaoningBengangSteel &IronTradingCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Products
Onagreement
Relatedagreementprice
0.00%
1,000
No
Executeaccording totheagreement
Yes
2018.04.20
BenxiSteel &Iron(Group)GeneralHospital
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
8.11
0.00%
No
Executeaccording totheagreement
No
2018.04.20
BenxiSteel &Iron(Group)ZhengtaiConstructionMaterialsCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
0.27
0.00%
No
Executeaccording totheagreement
No
2018.04.20
LiaoningHengtongMetallurgicalEquipmentManufacture Co.,Ltd.
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
0.00%
10,000
No
Executeaccording totheagreement
No
2018.04.20
HengtongMetallurgicalEquipmentManufacture Co.,Ltd.
Samecontroller
Sales ofgoodsandservices
Rawmaterial&supplementarymaterials& spareparts
Onagreement
Relatedagreementprice
1,955.2
Liaoning |
0.04%
No
Executeaccording totheagreement
Yes
2018.04.20
LiaoningHengtongMetallurgicalEquipmentManufacture Co.,Ltd.
Samecontroller
Sales ofgoodsandservices
Products
Onagreement
Relatedagreementprice
1,019.9
0.02%
No
Executeaccording totheagreement
Yes
2018.04.20
Relatedparties
Relation
ship
Type ofrelated
partytransacti
ons
C
relatedpartytransactio
ns
Pricing
ontent of | principle |
ofrelatedpartytransacti
ons
Price
ofrelate
dpartytransactions
Amount |
ofrelated
partytransactions (in
thousan
d)
Proporti
on ofsimilartransacti
ons
Theapprove
dtradinglimit oftransactions (in
thousan
d)
Whether exceed
theapprove
dlimited(Y/N)
Means
ofpaymen
t ofrelated
partytransacti
ons
Availabl
emarketprice ofsimilartransacti
ons
Date ofdisclosu
re
Index
ofdisclos
ure
BengangCold-rolledStainlessSteelDandongCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Rawmaterial&supplementarymaterials& spareparts
Onagreement
Relatedagreementprice
0.00%
No
Executeaccording totheagreement
Yes
2018.04.20
BengangCold-rolledStainlessSteelDandongCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Products
Onagreement
Relatedagreementprice
0.00%
No
Executeaccording totheagreement
Yes
2018.04.20
SuzhouBengangIndustrialCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Products
Onagreement
Relatedagreementprice
39,596.
0.79%
30,000
No
Executeaccording totheagreement
Yes
2018.04.20
BengangGroupFinanceCo., Ltd.
Samecontroller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
1.46
0.00%
No
Executeaccording totheagreement
No
2018.04.20
BengangGroupCo., Ltd.
Controller
Sales ofgoodsandservices
Energy &Power
Onagreement
Relatedagreementprice
3.93
0.00%
No
according totheagreement
No
2018.04.20
Total -- --
2,626,1
51.12
Execute | ||
--
2,920,3
-- -- -- -- --Details of any sales return of a largeamount
None
Give the actual situation during the
reporting period where a forecast hadbeen made for the total amounts ofroutine related-party transactions£¬bytype to occur in the current period(ifany)
NoneReason fo r any si gnificant differencebetween the transaction price and theMarket price for reference (ifapplicable)
None
2. Related transactions relevant to asset acquisition or sold
¡õ Applicable ¡Ì Not applicable
There was no related transaction relevant to asset acquisition or sold during the reporting period.
3. Related transactions relevant to joint investments
¡õ Applicable ¡Ì Not applicableThere was no related transaction relevant to joint investments during the reporting period.
4. Credits and liabilities with related parties
¡Ì Applicable ¡õ Not applicableWhether there are any non-operating related credits and debts¡õ Yes ¡Ì NoThere were no non-o perating related credits and debts during the reporting period.
5. Other significant related transactions
¡õ Applicable ¡Ì Not applicableThere was no other significant related transaction during the reporting period.
XVII. Major Contracts and Their Performance1. Trusteeship, contracting and lease
(1) Trusteeship
¡õ Applicable ¡Ì Not applicableThere was no trusteeship during the reporting period.
(2) Contracting
¡õ Applicable ¡Ì Not applicableThere was no contracting during the reporting period.
(3) Lease
¡Ì Applicable ¡õ Not applicable
Company as the lessor
Lessee Lease capital category Lease income of 2018 Lease income of 2017Benxi Steel & Iron (Group) Steel &Iron Process and Logistics Co., Ltd.
Warehouse and machinery
500,000.00 500,000.00Benxi Steel & Iron (Group)Machinery Manufacture Co., Ltd.
Plant s and machinery
490,000.00 490,000.00
Company as the lessee
Lessor Lease capital category Lease charges of 2018 Lease charges of 2017Benxi Steel & Iron (Group)Co., Ltd
2300 Hot ro l li ng pr o duc t li ne
247,959,966.10 243,353,313.24Benxi Steel & Iron (Group)Co., Ltd
Land use right
54,691,428.60 54,691,428.60
(Group) Co., Ltd.
1780 Hot ro l li ng pr o duc t li ne
135,959,033.13 134,443,446.44
Financial lease matters:
During the reporting period, the company leased machinery and equipment from Liaoning Hengyi Finance Leasing Co., Ltd. inthe form of financial leases. As of the end of the reporting period, the long-term accounts payable amounted to RMB13,686,705.92. The equipment was presented in the construction in progress subject.
Notes to lease from or to related parties:
1. The Company leases land from Bengang Group Co., Ltd., with a monthly rent of 0.594 yuan per square meter. The leasedland is 7,669,068.17 square meters and the annual rent is 54,665.10 thousand yuan.
2. For the 2300mm hot rolling product line leased from the Group to the Company, lease period lasts from 1 January 2018 to 31December 2020. Lease charges are nego tiated between the lessor and the lessee based on the original cost, depreciation, andnational taxation of the product line, with consideration of conditions of production and equipment performance.
3. F or the 1780 hot rolling product line leased from Benxi Beiying Steel & Iron (Group) Co., Ltd. to the Company. ¡°Notice onBengang Steel Plates Co., Ltd. signing a renewal agr eement with Benxi Steel (group) Co., Ltd¡± were adopted on the sixthmeeting of the seventh board of directors, it stipulated that the company leased the 1780 hot rolling product line from BenxiBeiying Steel & Iron (Group) Co., Ltd., lease period lasts from 1 January 2017 to 31 December 2019. Lease charges arenegotiated between the lessor and the lessee based on the origi nal cost, depreciation, and national taxation of the product line,with consideration of conditions of production and equipment performance. The annual rent shall not exceed RMB150,000,000.00.
Proje cts that bring profits and losses to the compan y that exceed 10% of the company's to tal profit during the repo rtingperiod¡õ Applicable ¡Ì Not applicableThere w as no projects that bring profits and losses to the company that exceed 10% of the company's total profit duringthe reporting period.
2. Guarantee
¡õ Applicable ¡Ì Not applicableThere was no guarantee during the reporting period.
3. Entrusting Others for Managing Cash Asset
(1) Entrusted Finance
¡Ì Applicable ¡õ Not appli cableContents of entrusted finance during the reporting period
Unit: in 10 thousand yuanType Fund resource Amount Unexpired balance
Ove r due am ount not
recoveredBank finance products
Temporary workingcapital
17,300
Benxi Beiying Steel & Iron
Total 17,300
The specific situation of high-risk entrusted wealth management with large single amount or low security, poor liquidity andnon-guarantee¡õ Applicable ¡Ì Not applicable
Entrusted wealth management is expected to be unable to recover the principal or other circumstances that may result in impairment¡õ Applicable ¡Ì Not applicable
(2) Entrusted Loans
¡õ Applicable ¡Ì Not applicableThere was no entrusted loan during the reporting period.
4. Other Major Contracts
¡õ Applicable ¡Ì Not applicableThere was no other major contract during the reporting period.
XVIII. Social Responsibilities1. Performing other corporation social responsibilities
During the reporting period, the company actively protected the legitimate rights and interests of creditors and allemployees while pursuing the economic benefits of the company and protecting the interests of shareholders, inaccordance with the spirit of corporate social responsibility, and actively treated suppliers, customers and consumers.Public welfare undertakings such as environmental protection and community building. In the business activities,consciously follow the principles of voluntariness, fairness, equal pay, honesty and credit, consciously abide by socialmorality, professional ethics, consciously accept the supervision of the government and the public, and actively fulfillthe corporate social responsibility.
2. Performing corporation social responsibility of targeted poverty alleviation
In the annual report of the company, there has been no accurate poverty alleviation work, and there is no follow-up accurate povertyalleviation plan.
3. Environmental protection-related conditions
Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the environmentalprotec t io n department.Yes
Name
Mainpollutantsand s
pecific
pollutants
Discharge
modes
The
pecific | number of disch arge |
hatch
The
hatch
Emissionconcentratio
n
Theemissionstandard
Totalemission
Approved
totalemission
S
distribution of disch arge | urpass the |
emissionstandardBengangSteel PlatesCo., Ltd.
COD Continuous 1
Energyintegralfactorysewagetreatmentplant.
Sewage21.6
Sewage 50 279.74 tons
by thegovernment
NoneBengangSteel PlatesCo., Ltd.
ParticulateMatter
Continuousandintermittent
Rawmaterialdumper,transfer
Rawmaterials14-23;Ironmaking
station, | 7-35; |
Rawmaterials25;ironmaking
18052.85
tons
25-50; | Unapproved |
by thegovernment
None
pre-mixing;ironmakingiron andsteel field,furnace top,fuel,solvent,
whole grain, |
ore coketank,sinteringhead, tail;
waterpretreatment, iron alloyfeeding ,North-
South |
invertedirrigationstations,primarydustremoval,secondarydustremoval,
dustremoval;
special steel |
furnace,refiningfurnace,electro s lagfurnace;desulfurization anddenitrificati
generationboilers;cold-rolledacidregeneration, pickling,tensioning,welding,leveling,Annealing,baking; hotrollingfurnace.
on of pow e r | Steelmaking |
7-27;Specialsteel 7-15;Powergeneration5-10; Coldrolling;6-18 hotrolling 6-15.
steelmaking |
20-50;
20; powergeneration10-30; coldrolling 20;hot rolling20.
BengangSteel PlatesCo., Ltd.
SO?
Continuousandintermittent
Ironmakingsintering
special steel | ||
head; power |
generationboiler; coldrollingroasting,annealing;hot rollingfurnace.
Sinteringmachinehead 12 -40;powergeneration10-70; coldrolling80-100; hotrolling118-128.
Sinteringhead 200;powergeneration100-200;cold rolling150; hotrolling 150.
6600.96tons
by thegovernment
None
Bengang
Unapproved | ||
Steel Plates |
Oxides ofnitrogen
Continuous
Ironmaking
and | sintering |
Sintering
Sintering
head | head 300; |
13741.86tons
by the
None
Co., Ltd. | intermittent | head; power |
generationboiler; coldrollingroasting,annealing;hot rollingfurnace.furnace.
powergeneration50-140;cold rolling69-172; hotrolling105-124.
100-230; | power |
generation100-200;cold rolling300; hotrolling 300.
Construction and operation of pollution prevention facility:
The company has a total of 178 sets of environmental pollution prevention and control facilities. In addition to the hot rolling mill2300 production line, the rough-rolling finishing rolling plastic plate dust collector which is designed for the production of stainlesssteel, the rest of the facilities are put into use normally.Environmental Impact Assessment and Other Environmental Protection Administrative Licensing of Construction Projects
Plate special steel rolling mill transformation - t he initial rolling mill r enovation project completed the environ mentalimpact assessment, Benxi City Environmental Protection Bureau issued the environmental assessment approval:
Ben-Huan-Jian-Biao-Zi [2018] No. 02, 2018-5-28;2. The environmental protection of the No. 6 blast furnace dry dedusting and TRT renovation project of the PlateEnergy General Plant was completed by the Benxi Environmental Protection Bureau. The approval of theenvironmental p rotection bureau of this project: Ben-Huan-Jian-Biao-Zi [2018] No. 03, June 29, 2018.The three-electric cogeneration proj ect of the plate power plant completed the enterprise's independent environmentalprotection acceptance in June 2018;Sheet cold-rolled high-strength steel transformation project, sh eet metal three-cold hot-dip galvanizing production lineproject, completed the company's independent environmental protection acceptance in October 2018.Emergency plan for emergency environmental incidentsThe company and its subordinate 13 units are revised the emergency plans for emergency environmental incidents, andcarried out related work such as risk assessment and investigation of emergency resources in accordance with the "Lawof the People's Republic of China on Incident Responses", "Notice on Printing and Distributing the Guidelines for RiskAssessment of Enterprises' Environmental Emergencies (Trial)", and "Emergency Preparedness for EnvironmentalIncidents of Enterprises and Institutions" Existing laws and regulations such as the Administrative Measures (Trial).Environmental self -monitoring project.In 20 18, the sel f-monitori ng plan was carried out in accor dance with the requirement s of the pollutant discharge per mit.The monitoring points of Benxi Steel pollution sources: 172 flue gas, 10 wastewater monitoring points, 5 noise points atthe boundary of the plant, 27 atmospheric dustfall points, and newly added unorganized monitoring. The number ofpoints is 60. Fr om the plate facto ry to the mine, the mo nitoring is divided into weekly, monthly, seasonal, semi-annualand annual freq uency monitor ing. The main monitoring ite ms of the auto matic air qualit y monitorin g station are P M10,PM2.5, sulfur dioxide and nitrogen dioxide. , O3, CO, one set of data per hour, a total of 52,560 monitoring data wereobtained thro ughout the year ; 27 steel dust point s were distr ibuted in the steel p lant area , and 3 24 monitorin g data wereobtained; routine monitoring tasks for flue gas were completed, and monitoring was achieved throughout the year. 1842data; 5 noise monitoring points at the boundary of the plant, 160 monitoring data; 20 wastewater monitor ing points,3,660 monitoring data; 347 temporary monitoring data, and a total of 6333 monitoring data reported by the monitoringstati on. Monthly , quarterly reports and separate monitoring reports for each mine are reported.
Other environmental information that should be disclosedNoneOther environmental protection related information
In 2018, the company completed the application for the pollutant discharge permit of the raw material factory,iron-making pla nt, stee l-m ak i ng p lant, hot-rolling plant, one cold rolling, two cold rolling, three cold rolling and specialsteel plants of the plate company, and completed the discharge permit change work of the plate company power plantand c oking plant.
XIX. Other Major Issues
¡õ Applicable ¡Ì Not applicableThere was no need for illustrating other major issue.
XX. Major Issues of Subsidiaries
¡õ Applicable ¡Ì Not applicable
VI. Status of Share Capital Changes and Shareholders
I. Share Capital Changes
1. Share capital changes
Unit: Share
Before the change | Increase/decrease(+ |
£¬
-) | After the Change |
Quantity
Percenta
ge
share
Bonusshares
Issuing of new | Capitaliz |
ation of
reserve
fund |
Othe
rs
Subtotal Quantity
Percenta
ge
I. Restricted Shares | 739,371,532 | 739,371,532 | 739,371,532 | 19.08% | |||||
1.State shareholding | |||||||||
2. State-own Legal-person Shareholding | 184,842,883 | 184,842,883 | 184,842,883 | 4.77% | |||||
3. Other domestic shareholdings | 554,528,649 | 554,528,649 | 554,528,649 | 14.31% | |||||
Including: | |||||||||
Domestic leg al person holding | 554,528,649 | 554,528,649 | 554,528,649 | 14.31% | |||||
Domestic natural person holding | |||||||||
II. Non-rest r icted Shares | 3,136,000,000 | 100.00% | 3,136,000,000 | 80.92% | |||||
1. Common shares in RMB |
2,736,000,000 87.24%
2,736,000,000 70.60%
400,000,000 12.76%
2. Foreign shares in domestic market |
400,000,000 10.32%
III. Total shares | 3,136,000,000 | 100.00% | 739,371,532 | 739,371,532 | 3,875,371,532 | 100.00% |
Causati on of share capital changes¡ÌApplicable ¡õNot applicableWith the approval of the China Securities Regulatory Commission's "Approval of the Private Issuance of Shares of Benxi Steel PlateCo., Ltd" (Securities Regulatory License [2017] 1476), the company issued the shares to Liaoning Traffic Investment Co., Ltd.,Jianxin Fund Management Co., Ltd., Beixin Ruifeng Fund Management Co., Ltd., and Guoshou Security Fund Management Co., Ltd.in private. Bank 739,371,532 common shares (RMB).Approval of share capital changes¡Ì Applicable ¡õNot applicable1. On June 13, 2017, the China Securities Regulatory Commission (CSRC) issued an audit committee to examine and approve thecompany's application for non-public issuance of shares.2. On August 11, 2017, the China Securities Regulatory Commission (CSRC) approved the issue of Private Issuance of Shares of thisSteel Plate Co., Ltd. (CSRC License No. 1476). The company received the approval on August 21, 2017 and made a publicannouncement on August 22, 2017.Statu s of r egi s tration process of transferred shares¡Ì Applicable ¡õNot applicableOn February 9, 2018, the company submitted relevant registration data to Shenzhen Branch of China Securities Registration andSettlement Co., Ltd. It has been confirmed that the newly issued shares will be registered at the end of the trading day prior to thelisting date and formally listed in the company's shareholder register.Progress of Share Repurchase¡õ Applicable ¡Ì Not applicableImplementation Progress of Reducing Holdings of Repurchase Shares by Centralized Bidding¡õ Applicable ¡Ì Not applicableInfluen ces of share cap ital ch anges on financi al indices su ch as basic earni ngs per s hare, dil uted earnin gs per share, and net asset pershare attributed to common shareholders¡õ Applicable ¡Ì Not applicableOther information the Company deems necessary to be disclosed or required by the authority
¡õ Applicable ¡Ì Not applicable
2. Changes of Restricted Shares
¡õ Applicable ¡Ì Not applicableUnit: Share
II. Securities Issuance and Listing1. Status of Security Issuance (Excluding Preferred Shares) in the Reporting Period
¡Ì Applicable ¡õ Not applicable
and their
derivatives |
Issue d ate
Issuan ce price(or int er es t rate)
Issue quantity Date of listing
Quantity of |
approved listing
transactions | Deal |
Termination
Date | ||
Stock | ||
Bengang Steel Plates |
Feb 1
st
2018 5.41 yuan 739,371,532
Mar 5
th
2019 739,371,532
Convertible corporate bonds, separately traded convertible corporate bonds, corporate bonds | ||||
Other D er iv ative Securities |
Notes on the status of security issuance (excluding preferred shares) in the reporting periodOn August 21, 2017, the company obtained the certificate No. 1476 issued by China Securities Regulatory Commission onAugust 11, 2017, which approved the non-public issuance of no more than 739,371,354 shares of Bengang steel plate. OnFebruary 12, 2018, the company completed the registration of the non-public issuance of shares and the limited sale ofshares. On March 5, 2018, the company listed new shares in its private offering at a price of 5.41 yuan per share.
Shareholder
restrict ed shares
Number of initial | Number of |
Limited S haresReleased i n the
Current Period | Increased number |
of restrict edshares in the
End-of-TermLimited Shares
Restriction
reason
Release dat eLiaoningProvincialTransportationInvestment GroupCo., Ltd.
current period | ||
184,842,883
184,842,883
The number of |
restrict ed sharesparticipating inthe additionalissue was
Mar 5th 2019
184,842,883. | ||
CCB Principal |
Asset Management¨C ICBC ¨C CR Tru st¨C CR Tru st ¡¤ XingSheng No. 5Collective Fund
Trust Plan |
184,842,883
184,842,883
The number ofrestrict ed sharesparticipating inthe additionalissue was184,842,883.
Mar 5th 2019
Bei Xin Rui Feng |
Fund ¨C ChinaMerchants Bank ¨CBei Xin Rui FengFund Feng QingNo. 229 Asset
Manage ment Plan |
184,842,883
184,842,883
The number ofrestrict ed sharesparticipating inthe additionalissue was184,842,883.
Mar 5th 2019
China Life AMP |
Fund¨C ICBC ¨CChina Life AMP ¨CHua Xin TrustTargetedAddit ional SharesIssuance No. 10Asset Man agement
Plan |
184,842,883
184,842,883
The number ofrestrict ed sharesparticipating inthe additionalissue was184,842,883.
Mar 5th 2019
Total | 0 | 0 | 739,371,532 | 739,371,532 | -- | -- |
2. Total Share and Shareholder Change and Asset and Liability Structure Change
¡Ì Applicable ¡õ Not applicableDuring the reporting period, 739,371,354 shares of the company were issued in private. The total equity of the company increasedfrom 3,136,000,000 shares at the beginning of the period to 3,875,371,532 shares, including 3,475,371,532 common shares (RMB)(A shares) and 400,000,000 foreign-funded shares (B shares) listed in China.Liaoning Provincial Transportation Investment Group Co., Ltd., CCB Principal Asset Management ¨C ICBC ¨C CR Trust ¨C CRTrust ¡¤ Xing Sheng No. 5 Collective Fund Trust Plan, Bei Xin Rui Feng Fund ¨C China Merchants Bank ¨C Bei Xin Rui Feng FundFeng Q ing No. 229 Asset Management Plan, China Life AMP Fund¨C ICBC ¨C China Life AMP ¨C Hua Xin Trust Targeted AdditionalShares Issuance No. 10 Asset Management, which participated in the company's non-public offering, have become the top two to fiveshareholders of the company (see the top 10 shareholders in this report for details).
3. Employee Shareholdi ng Status
¡õ Applicable ¡Ì Not applicable
III. Shareholders and Actual Controller1. Total Number of shareholders and shareholdingIn Shares
Total number ofcommo
at the end of thereporting period
61,271
Totalshareholders atthe end of themonth from thedate ofdisclosing theannual report
59,625
The total number ofpreferred shareholdersvoting rights restored at
n shareholders | the end of the reporting |
period (See Notes 8)
Total preferredshareholders at theend of the month fromthe date of disclosingthe annual report (ifany) (See Not es 8)
Shareholding of shareholders holding more than 5% or top 10 shareholdersName of theshareholder
Nature ofshareholder
Holding
(%)
Number ofshares h eld at
period-end
Changes in
reporting
period
Restrictedshares h eld
Un-restricted
shares h eld
Number of pledged or
frozen shar esStatus NumberBenxi Steel & Iron(Group) Co., Ltd.
State-ownedlegal person
60.78%
Percentage |
2,355,409,263
70,998,061
2,355,409,263
Pledged
1,652,095,133
Frozen
45,000,000
Lia oni ng Prov incial |
TransportationInvestment Group
State-ownedlegal person
4.77%
Co., Ltd. |
184,842,883
184,842,883 184,842,883
Management ¨C ICBC¨C CR Tru st ¨C CRTrust ¡¤ Xing ShengNo. 5 Collective Fund
Trust Plan |
Others 4.77%
184,842,883
184,842,883 184,842,883
Fund ¨C ChinaMerchants Bank ¨C
Bei |
Xin Rui Feng FundFeng Qing No. 229Asset Man agement
Others4.77%
Plan |
184,842,883
184,842,883 184,842,883
Fund¨C ICBC ¨C ChinaLife AMP ¨C Hua XinTru st TargetedAddit ional SharesIssuance No. 10 Asset
Manage ment Plan |
Others4.77%
184,842,883
184,842,883 184,842,883
VANGUARD | Overseas legal |
0.21%
8,157,311
8,157,311
MARKETS STOCKINDEX FUND
EMERGING | person |
Chen Jinhong
natura l pe rs on
0.19%
Domestic |
7,480,675
1,773,175
7,480,675
Lyu Ruijun
Domesticnatura l pe rs on
0.13%
5,192,800
69,000
5,192,800
VANGUARD TOTALINTERNATIONALSTOCK INDEXFUND
Overseas legalperson
0.12%
4,606,141
4,606,141
Agr ic ul tur a l bank ofChina - ChinaSecuri ties 500 T
rading |
Open Index SecuritiesInvestment Fund
Others 0.10%
4,057,810
4,057,810
4,057,810
Strategy investors or general legal
to rights issued (if any) (See Notes 3)
NoneNotes to relationship or ¡®action inconcert¡¯ among the top 10 shareholders.
person becomes top 10 shareholders due | |
It is unknown to the Company whether there is any related connection or ¡®Action in Concert¡¯ as described by Rules of Information Disclosing Regarding Changing of Shareholding Status of |
Listed Companies existing among the above shareholders.
Shareholding of top 10 unrestricted shareholdersName of the shareholder
Un-restricted shares held atthe end of the reporting period
Category o f sh aresCategory o f sh ares QuantityBenxi Steel & Iron (Group) Co., Ltd. 2,355,409,263
Common shares in RMB 2,355,409,263
VANGUARD EMERGING MARKETS |
STOCK INDEX FUND
8,157,311
Forei gn shares in domestic exchange8,157,311
Chen Jinhong7,480,675
Common shares in RMB7,480,675
Lyu Ruijun |
5,192,800
Forei gn shares in domestic exchange |
5,192,800
VANGUARD TOTAL INTERNATIONAL |
STOCK INDEX FUND
4,606,141
Forei gn shares in domestic exchange4,606,141
Agricultural bank of China - China Securities500 Trading Open Index Securities InvestmentFund
4,057,810
Common shares in RMB4,057,810
Yu Xiaofan4,002,707
Forei gn shares in domestic exchange4,002,707
Xu Hekun 3,738,800
Foreign shares in domestic exchange 3,738,800
Basic Endowment Insurance Fund 1302Portfolio
3,728,166
Common shares in RMB 3,728,166
Feng Mei juan3,429,850
Common shares in RMB3,429,850
Notes to relationship or ¡®action in concert¡¯among the top 10 non-restricted shareholders,and among the top 10 non-restrictedshareholders and top 10 shareholders
any of the other shareholders among the top 10 shareholders, neith
er being regarded as |
action-in-
Shareholding in PLC.
The Company is not aware of any relationship among the other |
shareholders, neither being regard ed as action-in-concert parties by th
Disclosure Regulations for Change of Shareholding in PLC.
The Company is not aware of any relationship among the top 10 shareholders, neither being regarded as |
action-in-
Share holding in PLC.Shareholders among the top 10 participating insecurit ies margin trading (if any) (see Note 4)
concert parties by the Information Disclosure Regulations for Change of |
Benxi Steel & Iron (Group) Co., Ltd. Holds 2,105,409,263 shares of the Company¡¯s stock through credit security account and holds 250,000,000 shares of the Company¡¯s stock, totaling 2,355,409,263 shares. Feng Meijuan holds 14,000 shares of the |
Company¡¯s stock through ordinary account, and holds 3,415,850 shares
securit y account.
Whether top 10 common shareholders and top 10 un-restricted common shareholders have a buy-back agreementdealing in reporting period
¡õ Yes ¡Ì NoTop 10 common shareholders and top 10 un-restricted common shareholders had no buy-back agreement dealingin reporting period.2. Controlling Shareholder
Nature of Controlling Shareholders: Local state holdingType of Controlling Shareholders: Legal person
Controlling
shareholder | Legal repr esentative |
/ person in charge
Date ofincorporation
Organization
Code
Principal business activ ities
Ltd.
Yang Chengguang July 10,1996
91210500119726263U
Benxi Steel & Iron (Group) Co., | Business scope: steel smelt, mine exploitation, panel |
rolling, oxygen manufacturing, pipe
highway tra
nsportation, import and export trade, traveling industry, construction material, refractory material, measuring device instrument, goods and materials supply and marketing, development of real estate, scientific |
research, design, information service, prope
of Bengang Daily; designing and
making of presswork and advertisement, releasing, producing of TV advertisements in the country and abroad. | ||
Equity of other |
domestic/foreignlisted companywith shar econtrolling and
by controllingshareholder in
reporting period |
None
Changes of controlling shareholders during the reporting period¡õ Applicable ¡Ì Not applicable
3. Actual Controller
Actual controller nature: Local state owned assets managementActual controller type: Legal personName of the controlling shareholder
Legal repr esentative / person in charge |
Date of incorporation Organization Code
Princi pa l bus iness activities | ||||
Bengang Group Co., Ltd. | Chen Jizhuang | November 25, 2010 | 912100005646255759 | Asset manage ment |
Equity of other domestic/foreign |
listed company with sharecontrolling and share participationby controlling shareholder in
NoneChange of actual controller during the reporting period¡õ Applicable ¡Ì Not applicableThere is no change of actual controller during the reporting period.Block diagram of the ownership and control relations between the Company and the actual controller
Whether the actual controller is controlling the Company through trusteeship or other asset management service¡õ Applicable ¡Ì Not applicable
4. Shareholders holding More than 10% of the Shares
¡õ Applicable ¡Ì Not applicable
5. Status of Share Reduction Limitation of Controlling Shareholders, Actual Controller, RestructuringParty and Other Commitment Subjects
¡õ Applicable ¡Ì Not applicable
Bengang Steel Plates Co., Ltd.
Bengang Group Finance Co., Ltd.
Benxi Steel & Iron (Group) Co., Ltd.
Lia oni ng Prov incial State-owned AssetsSupervision and Administration Commission
Liaoning Council for social security fund
80%
20%85.33%
60.78%
Huatai Securities (Shanghai) Asset Management Co., Ltd.
14.67%
VII. Status of Preferred Shares
¡õ Applicable ¡Ì Not applicableThere was no Preferred Shares during the reporting period.
VIII. Status of Directors, Supervisors, Senior Executives and
Employees
I. Change in Shares held by Directors, Supervisors and Senior Executives
Name Position
Officestatus
Sex Age
Starting
date of |
officeterm
Expiry
officeterm
Shares
date of | held at |
theyear-begin
Sharesincreased
reportingperiod
Sharesdecreased
during the | during the |
reportingperiod
Otherincrease/decrease
Shares
theyear-end
WangShu
Director,Chairman
Leavi
ngoffice
Male 48
December |
27, 2016
March 14
2019
CaoAimin
Director,
, | ||
Vice |
Chairman
Inoffice
Male 52
October26, 2009
May 26, |
2019
HuangXinghua
Director
Inoffice
Male 56
May 24, |
2018
May26,2019
JinYongli
IndependentDirector
Inoffice
Male 61
May 17, |
2013
May26,2019
ZhongTianli
IndependentDirector
Inoffice
Female
May 20, |
2014
May26,2019
ZhaoXinan
IndependentDirector
Inoffice
Male 59
May 21, |
2015
May26,2019
Han Mei
Supervisor,
SupervisoryCommittee
Inoffice
Chairman of |
Female
February19, 2014
May26,2019
Li Lin Supervisor
Inoffice
Female
February19, 2014
May26,2019
LiuYansong
Supervisor
Inoffice
Male 49
August14, 2018
May26,2019
ZhangYanlong
Supervisor
Inoffice
Male 42
January26, 2014
May26,2019
Gao Lie
GeneralManager
Inoffice
Male 52
August27, 2018
May26,2019
BaoMingwei
Manager
Inoffice
Deputy General |
Male 56
28, 2012
May26,2019
WangFengmin
December | ||
Deputy General |
Manager
Inoffice
Male 54
January26, 2014
May26,2019
Hu
Deputy General |
In Male 59 January May
Guangyuan
Manager office
26, 2014 26,2019ZhaoZhonghua
Director of |
Finance
Inoffice
Female
April18,2018
May26,2019
GaoDesheng
Secretary of the |
Board
Inoffice
Male 45
September 20,2018
May26,2019
Han Ge
Director,GeneralManager
Leavi
ngoffice
Male 50
February19,2014
August08,2018
TangChaosheng
Director
Leavi
ngoffice
Male 56
December |
27,2016
April18,2018
DongLiju
Supervisor,
SupervisoryCommittee
Leavi
ngoffice
Chairman of |
Female
February19, 2014
April18,2018
LiZhengchun
Supervisor
Leavi
ngoffice
Male 46
April 1, |
2015
April18,2018
WangShaoyu
Manager, CFO
Leavi
ngoffice
Deputy General |
Male 55
October28, 2015
April18,2018
SunYanbin
Board
Leavi
ngoffice
Secretary of the |
Male 37
2015
April18,2018
Total -- -- -- -- -- --
II. Change in Directors, Supervisors and Senior Executives
¡ÌApplicable ¡õ Not applicable
Name Position
August 3,
Type of
change
Date Reason
Han Ge
Type of | |
Director, General |
Manager
Leaving office August 08,2018 Voluntary turnoverTangChaosheng
Director Leaving office April 18,2018 Voluntary turnoverDong Liju
Supervisor,
Supervisory
Committee
Leaving office April 18,2018 Voluntary turnoverLi Zhengchun Supervisor Leaving office April 18,2018 Voluntary turnoverWang Shaoyu
Chairman ofDeputy General
Dismissal April 18,2018 Job change
Manager,
FinanceSun Yanbin
Director of |
Secretary of the |
Board
Dismissal April 18,2018 Job change
III. Posts holding
Work experience in the past five years of Directors, Supervisors and Senior Executives in current office
Profiles of the members of the Board:
Gao Lei, Male, 52, undergraduate, master of engineering, professor-level senior engineer. Once Chairman of BenxiIron and Steel(Group)Mining Co.,Ltd; Manager of Mineral Resources Development Company; Assistant GeneralManager of Bengang Group Co., Ltd. and Manager of Mineral Resources Development Company; Deputy GeneralManager of Bengang Group Co.,Ltd; He is now Member of the Standing Committee of the company¡¯s partycommittee, chairman of Bengang Steel Plate Co.,Ltd.
Cao Aimin, Male, 52, undergraduate, senior accountant. Once Head of Capital Division of Fin ance Department;Head of Planning and Finance Division; and Chief Accountant. Director and Chief Accountant of Bengang GroupCo., Ltd. He is now Member of t he Standing Committee of the company¡¯s party committee, Vice Chairman ofBengang Steel Plates Co., Ltd.
Huang Xinghua, Male, 56, College degree, senior accountant. Once Deputy director of the planning and financedepartment of Benxi Iron and Steel (Group) Co.,Ltd; Director and Chief accountant of Benxi Iron and Steel(Group)Co.,Ltd; Director of the finance department of Bengang Group Co., Ltd. He is now the head of the financedepartment of Bengang Group Co., Ltd., Benxi Iron and Steel Director of (Group) Co., Ltd., Director of BengangSteel Plate Co., Ltd.
Jin Yongli, Male, 61, postgraduate, professor. Once he was the dean of engineering school of Shenyang University.At present he is the dean of Business School of Shenyang University. He has been Independent Director of theCompany since May 2013.
Zhong Tianli, Female, 6 3. Once she was Pr ofessor of Nort heast Universit ies ( Doctorial Tutor). Once she was vicedean of Business School of Northeast University, dean of Fundamental Study School and Head of AccountingInstitute of Northeast University. At present she is professor of Accounting Dept. of Business School of NortheastUniversity. She has been Independent Director of the Company since May 2014.
Zhao Xinan, Male, 59, Professor of Northeast Universities (Doctorial Tutor). Once he was vice dean of BusinessSchool of Northeast University, member of the national Education Dept of Management science and EngineeringTeaching steering Committee; He is now Professor of Business School of Northeast University. He has beenindependent director of the Company since May 2015.
Profiles of the S up ervi sory Committee:
Hen Mei, Female, 5 0 , u ndergraduat e, sen io r acco un tant. O nce sh e was t he vi ce head of finan cial d e par tment o f theCompany; vice head of auditing department and head of administration department of the supervisory committeeof Bengang Group; Provincial Government Liaison in Bengang Benxi Steel & Iron (Group) Co., Ltd. Director ofAudit Dept. She now is Head of Audit Department, Chairman of Supervisory Committee of Bengang Steel PlatesCo. Ltd.
Li Lin, Female, 51, postgraduate, engineer. Once she was the administrator of HR department of Bengang Group;vice chief engineer of Transportation Department of the Company; substitute chairman of the trade union ofTransportation Department of the Company. She now is Secretary of Commission for Discipline Inspection ofTransportation Department and Chairman of the Labour Union of Bengang Steel Plates Co. Ltd. She is now Parysecretar y of R ailway company; Supervisor of Bengang Steel Plates Co. Ltd.
Li Xiaowei M ale, 44, undergraduate, economist. He was once senior officer of the audit department and Divisionchief of the operation audit department of Bengang Group Co., Ltd. he is now the deputy director of the auditdepartment of Bengang Group Co., Ltd., the supervisor of the finance company, the supervisor of HengxinCompany, and the supervisor of the board of supervisors of Bengang Steel Plate Co., Ltd.
Liu Yansong Male, 48 years old, postguaduate, senior engineer. He was once Deputy manager and export managerof Bengang International Trade Co., Ltd.; Acting secretary and Deputy manager of Bengang International TradeCo., L td.; Party secretary of Bengang St eel Cold Rolling Mill. He is now Party secretar y of Bengang Steel HotRolling Mill; and Supervisor of Bengang Steel Plate Co., Ltd.
Zhang Yanlong, Male, 42, undergraduate, senior engineer. He once was the workshop manager of steel-makingfactory; vice chief of QC department of iron-making factory, Director of Steel-making plant, Manager ofManufacturing Department of Ben gang Steel Plates Co., Ltd.; H e is now the assistant of director of productiondivision of steel-making plant, Sup er vi s or of Bengang Steel Plates Co. Ltd.
Executiv es other than directors:
Shen Qiang, Male, 51 years old, master's degree, senior engineer. He has served as Secretary of the Board ofDirectors and Director of the Board of Directors of Bengang Group Corporation, Director of the Office, Directorof the Secr etary of Secr etaries, Secretar y of the P arty Committee of Bengan g Grou p Corpo ration, Chai rman of theBoard of Directors o f the Real Estate Company, Secretary of the Party Committee; Director of Benxi Iron andSteel Company, Deputy Secretary of the Party Committee, Deputy General Manager, Board of Directors Secretary;Assistant General Manager of Bengang Group Corporation, Minister of Human Resources Department(Organization Department); current General Manager of Bengang Steel Plate Co., Ltd.
Bao Mi ngwei, Male, 5 6 years old, Undergradu ate, senior en gineer. He has successively served as Secretar y of theParty Committee, Vice Director and Factory Director of the Hot Strip Mill of Benxi Steel Co., Ltd., Vice GeneralManager of Benxi Steel Co., Ltd. and Director of the Third Cold Rolling Mill, Vice General Engineer of BenxiSteel Group Co., Ltd., Minister of Planning and Development Department (Science and Technology DevelopmentDepartment), Vice General Manager of B enxi Steel Co., Ltd.
Wang Fengmin, Male, 54, postgradu ate, sen ior en gineer. He has been the d eput y directo r, director and S ecret ary ofthe Party Committee of the ironmaking plant of Benxi Iron and Steel Co., Ltd., deputy general manager andmanufacturing Minister of Benxi Steel Co., Ltd., Deputy Engineer of Benxi Steel Group Co., Ltd., deputy generalmanager of B enxi Steel Co., Ltd.
Huo Gang, Male, 46, PHD, senior engineer. He has been the acting general manager of Bengang Puxiang ColdRolling Plant, the Secretary and executive vice director of the Party Committee of Bengang No. 3 Cold RollingPlant, the Secretary and director of the Party Committee of Bengang No. 3 Cold Rolling Plant, and the currentdirector of Bengang Cold Rolling Plant, the general manager of Puxiang Cold Rolling Plant and the deputy generalmanager of B engang Steel Stock Co., Ltd.
Zhao Zhonghua, Female, 35, graduate degree, accountant. She has successively been deputy director and directorof the Finance Department o f Benxi Steel Plate Co., Ltd., assistant d irector of the Finance Department of BenxiSteel Group Co., Ltd., deputy manager of Benxi Steel Group Finance Co., Ltd., and currently the finance ministerof Benxi Steel Plate Co., Ltd.
Gao Deshen g, Male, 4 5, undergraduat e, master of man agement, sen ior econo mist. He has been the actin g directorof the Business Planning Department of the Operation Improvement Department of Benxi Iron and Steel GroupCo., Ltd., the director of the Ownership Management Department of the Operation Improvement Department ofBenxi Iron and Steel Group Co., Ltd., the director of the Ownership Management Department of the OperationImprovement Department of Benxi Iron and Steel Group Co., Ltd., the vice-chairman of the First SupervisoryBoard , and the director of the office and Secretary of the board.Posts holding in Shareholders¡Ì Applicable ¡õ Not applicable
Names of the
persons in
office
Names of theshareholders
Titles engaged in the shareholders
Starting date of
office term
Expirydate ofofficeterm
Does he /she
receiveremunerationor allowance
from theshareholderWang Shu
Bengang Group Co.,Ltd.
Vice Secretary of CCP, GeneralManager, Vice Ch airman
December 1,2013
YesCao Aimin
Bengang Group Co.,Ltd.
Director, Chief Accountant
November 1,2010
YesHuangXinghua
Bengang Group Co.,Ltd.
Minister of Finance Sep 1, 2017 YesHan Mei
Bengang Group Co.,Ltd.
Director of Audit Department,
Directo r of Supervisory
Committee Management
February 1,2016
Yes
shareholdercompanies
NonePosts holding in other companies¡ÌApplicable ¡õNot applicable
Names of the
persons in
office
Names of the other companies
Titlesengaged in
othercompanies
Starting date of
office term
Expiry date of
office term
Does he /she
receiverem une ration orallowance fro mthe sh ar eholderGao Desheng
Benxi Steel Automobile Transportation Co.,Ltd.
Director Nov, 1,2013 NoOffice taking inothercompanies
None
Punishment by the securities regulatory authorities in last three years¡õ Applicable ¡Ì Not applicable
IV. Remuneration to Directors, Supervisors and Senior Executives
Decision-making procedures, basis of recognition and actual payment of the remuneration to Directors,Supervisors and Senior Executives
Decision making procedures1. The Remuneration and Assessment Committee will produce a plan or proposal, which will be implementedupon approval of the Board or the Shareholders¡¯ Meeting;2. According to performance as sessment criteria and procedu res, the Remuneration and Assessmen t Committeeundertakes assessment on the Directors and Senior Executives;3. Remuneration amounts and ways of rewards will be proposed according to the assessment and remunerationpolicies 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 are distributed based on the assessment results and remuneration policies.
Actual payment of the remunerationRemuneration is paid on monthly basis according to the remuneration allocation policies.Rem une ration of Directors, Supervisors and Senior Executives during the reporting period
Unit: 10 thousand YuanName Position Sex Age Office status
Totalremuneration
shareholder
Whether r eceiv erem une ration inthe Company'srelated partiesWang Shu Director, Chairman Male 48 In office
received from the |
Cao Aimin Director, Chairman Male 52 In office
Huang Xinghua Director Male 56 In office
Jin Yongli Independent Director Male 61 In office 5
Zhong Tianli Independent Director Female 62 In office 5
Zhao Xi na n Independent Director Male 59 In office 5
Han Mei
Supervisor, supervisory
board chairman
Female 50 In office
Li Lin Supervisor Female 51 In office 18.1
Liu Yansong Supervisor Male 49 In office 18.51
Zhang Yanlong Supervisor Male 42 In office 13.13
Gao Li e General Manager Male 52 In office 10.94
Bao Mi ngwei Deputy General Manager Male 56 In office 25.47
Wang Fengmin Deputy General Manager Male 54 In office 28.61
Hu Guangyuan Deputy General Manager Male 59 In office 23.57
Zhao Zhonghua CFO Female 35 In office 17.92
Gao Desheng Secretary of Board Male 45 In office 8.07
Han ge Director, General Manager Male 50 Leaving office 14.19
Tang Chaosheng Director Male 56 Leaving office
Dong Liju
Supervisor, supervisory
board chairman
Female 55 Leaving office
Li Zhengchun Supervisor Male 46 Leaving office
Wang Shaoyu
Deput y General Manager,
CFO
Male 55 Leaving office 1.82
Sun Yanbin Secretary of the Board Male 37 Leaving office 2.26
Total -- -- -- -- 197.59
--Incentive equity to Directors, Supervisors and Senior Executives during the reporting period¡õ Applicable ¡Ì Not applicable
V. Staff Condition1. Staff Population, Professional Structure and Education Level
Population of in-service staff in par ent company 18,436
Population of in-service staff in main subsidiaries 580
Total population of in-service staff 18,436
Total population of staff receiving remuneration in the current |
period
18,436
Population of retired staff whose expense was borne by parent
company and major subsidiary companies
22,695
Professional CompositionType of Professional Composition PopulationProduction Staff 14,922
Sales St aff 193
Technician 1,466
Financial Staff 143
Administrative Staff 1,712
Total 18,436
Educational DegreeType of Educational Degree PopulationPhD. 11
Postgraduate 335
Undergraduate 3,463
Junior college 5,375
Others 9,252
Total 18,436
2. Remuneration Poli cies
In 2018, the company will further strengthen the management of salary distribution, establish a "de-administrative"broadband salary system, open up channels for the functional development of business, technology and operationalposts, and improve the salary standards of employees. We should implement total compensation contract, guide allunits to allocate human resources rationally, optimize the distribution mechanism and improve labor productivity,and give full play to the role of salary incentives and constraints. Simplify the annual salary structure and establishan annual salary assessment system which is linked to the group's efficiency and employee's income. Promote andstrength en th e managemen t o f ERP salar y, and r ealize t he d ir ect co nn ection between banks and enterprises and theclosed-loop management of salary.
3. Training Plan
The company plans to complete 96 training projects and train 24,698 people throughout the year. Ensure that thetraining rate of the whole staff reaches 70%, and the implementation rate of the annual training plan reaches 85%.
4. Outsourcing¡õ Applicable ¡Ì Not applicable
IX. Corporate Governance
I. Basic Situation of Corporate GovernanceSince listed in the stock exchange, the Company has been following the laws, regulations anddocuments such as the Company Law, Securities Law, L isted Company Governance Rules,Shareholders¡¯ Meeting Criteria of Listed Companies, Guide of Lifting the Quality of ListedCompany, and Instructions for Articles of Assoc iation of Listed Companies. The Company hasbeen establishing and improving governance structure to protect the interests of the Company andthe investors. The Shareholders¡¯ Meeting was working with clear responsibilities anddecision-making procedures. Arrangements were made to enable convenient participating of thepublic investors. Online voting system was introduced for material decision making processes.During the reporting period, according to the relevant laws and regulations, and combining withthe actual situation of the Company, ¡®Company policy¡¯ and ¡®Rules of Shareholders' GeneralMeeting¡¯ was formulated.
Whether there exists any difference in compliance with corporate governance, PRC Company Lawand relevant provisions of CSRC¡õ Yes ¡Ì No
There exists no difference in compliance with corporate governance, PRC Company Law andrelevant provisions of CSRC
II. Explanation on Structural Independence of the Company on Business, Personnel, Assets,Organization and Finan ce from the Control li ng Share holderThe Company is separated from the controlling shareholder in aspects of business, personnel,assets, organization and finance, etc. and has its own independent and complete businessoperation.
(1) In business operation: The Company has its own production and business planning, financialaffairs check and calculate, labor and personnel, raw material supplies and products sellingbusiness system independently and completely.(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, generalmanager, vice general manager, secretary of Board of Directors, etc. get salary from the Company,and hold the important position other than a director in shareholder department.(3) In Asset: The Company is separated from the controlling shareholder's clearly in asset. TheCompany has its own independent purchase, production, and marketing system.(4) In organization: The internal operations of the Company are independent; organizationstructure and working function are totally independent.
(5) In finance: The company has independent financial management department, the accountingand financial management system where are complete and operated independently, and has bankaccount and pay taxes independently.
III. Competition Situations of the Industry¡õ Applicable ¡Ì Not applicable
IV. Annual General Meeting and Extraordinary Shareholders¡¯ Meetings in the ReportingPeriod1. Annual General Meeting
Sessions Type
Investorparticipation ratio
Meeting Date Date of disclosure
disclosureAnnual Gener alMeeting of 2017
Annual Gener al
Meeting
59.50% May 24 2018 May 25 2018
Announcement No.:
2018-028
2. Request for Extraordinary General Meeting by Preferred Stockholders Whose Voting RightsRestore¡õ Applicable ¡Ì Not applicable
V. Duty fulfillment of Independent Directors in Reporting Period1. The situation of independent directors attending the BOD and shareholders meeting
Attendance of independent directors
Independent
Directors
Number of
Boardmeetings
Index of informationnecessary to be
attendedduring thereporting
period
Number of
spotattendances
Number of
meetingsatte nde d byCommunicatio
n
Number ofattendances
byrepresentative
necessary to be |
Number of
absence
Failure topersonallyattend board
meetingssuccessivelytwice (Yes/No)
Number of
generalmeetings to be
attended
Jin Yongli | 7 | 3 | 4 | 0 | 0 | No | 1 |
Zhong T ianl i | 7 | 3 | 4 | 0 | 0 | No | 1 |
Zhao Xinan 7 3 4 0 0 No 1Illustration to failure to personally attend Board Meetings Twice Successively
2. Objection of Independent Directors on Relevant IssuesObjection of independent directors on some relevant issues¡õ Yes ¡Ì No
Independent directors proposed no objection against the relevant matters during the reportingperiod.
3. Other Notes to Duty Fulfillm ent of Independent DirectorsWhether any independent director¡¯s advice to the Company was accepted¡Ì Yes ¡õ No
Illustration of acceptance of or failure to accept an independent director¡¯s advice to the CompanyIndependent directors have not made recommendations during the reporting period.
VI. Duty Fulfillment of the Special Committees under the Board during the reporting periodThe Remuneration and Assessment Committee is responsible to inspect the assessment process ofthe executives in year 2017.
The Development and Strategy Committee is responsible to examine the Board of Directors¡¯ WorkReport 2017 and the Proposal of Investment Structural Planning 2018 in advance and providesuggestions on the Company¡¯s long-term development basing on its researches.
The Auditing Committee is responsible to inspect the operation of internal auditing system, toverify the financial information disclosure, to examine the Financial Report 2017, and the InternalControl Introspective Evaluation Report, etc.
Nomination Committee provided opinions on the adjustment of executive positions.
VII. Duty Fulfillment of the Supervisory CommitteeWhether the supervisory board made any objection against the supervision issue during thereporting period¡õ Yes ¡Ì No
The Supervisory Board made no objection against the supervision issue during the reportingperiod.
VIII. Appraisal and Incentive System for Senior Executives
The Company¡¯s performance assessment scheme for executives implements a combination ofdaily accountability and annual comprehensive assessment and evaluation. Senior Executives shallbe punished if they fail to perform their duties properly, make mistakes or neglect their duty. Theannual comprehensive assessment is conducted in the form of positive evaluation, horizontal
evaluation and reverse democratic evaluation. The comprehensive evaluation results are animportant basis for selecting and appointing senior management personnel, cultivating education,management supervision and incentives.
IX. Internal Control1. Significant defects of the internal control found in the internal control self-assessment report inthe reporting period¡ÌYes ¡õ No
Signi ficant Defects of The Internal Control Found In The Report PeriodNo significant defects of the internal control were found during the reporting period
2. Self-Evaluation Report on Internal Control
Disclosing date of internal control auditingreport full text
Apr il 19, 2019
full text
http://www.cninfo.com.cnProportion of total assets of subsidiariesbelong to the scope of self-evaluationreport in the total assets of the Company¡¯sconsolidated financial statements
98.00%
Index of the internal control auditing report | |
Proportion of operation income ofsubsidiaries belong to the scope ofself-evaluation report in the operationincome of the Company¡¯s consolidatedfinancial statements
77.00%
Standards of Defects EvaluationCategory Financial Report Non-financial Report
Qualitative criteria
1. Material deficiencies£º
The frauds made bythe directors, or supervisors, or seniormanagement personnel that leads tosignificant losses and adverse effects to the
company. 2. Si gnificant deficienci es£º
Not in |
acc
application of accounting policies; £»
Not |
establi shed an ti-
corresponding com
pensatory control on the |
accounting treatment of non-
1. M aterial deficiencies£º
conventional or | Major errors |
caused by decision-making procedure
control evaluat
ion, especially the significant deficiencies have not been corrected; other circumstances that have |
big negative impact on the company. 2.
Significant deficiencies£º
General errors |
achie
ve the goal of being true a nd accurate. |
3. G eneral deficiencies£º
deficiencies.
caused by decision-
the internal control deficiencies except those constitute the material deficiencies and the significant | making procedure; there are defects in the important |
busin
negative impact on the company. 3.
General deficiencies£ºlow-
the decision-
making process; existed defects in the ordinary business institution or system; serious drain of business personnel in general posts; general deficiencies that have not been |
corrected.
Quantitative criteria
1. Material deficiencies£º1£©
of the total profits; 2£©misstatement¡Ý3% ofthe total assets; 3£©misstatement¡Ý1% of thetotal operating income; 4£©
misstatement¡Ý1% |
of the total amount of the owner¡¯s equity. 5)3% of the total profits ¡Ümisstatement£¼5%of the total profits£»2. Significantdeficiencies£º1£©0.5% of the total assets¡Ümisstatement£¼3% of the total assets£»2£©0.5% of the total operating income¡Ümisstatement£¼1% of the total operatingincome£» 3£©
owner¡¯s equity ¡Ümisstatement£¼1% of thetotal amount of the owner¡¯s equity¡£3.General defi ciencies£º1£©misstatement£¼
3% |
of the total profits£»2£©misstatement£¼
the total assets£»3£©misstatement£¼0.5% ofthe total operating income£»4£©misstatement£¼0.5% of the total amount of the owner¡¯sequity¡£
1. Material deficiencies£º1£©misstatement¡Ý5% of the total profits£»2
0.5% of | £© |
misstatement¡Ý3% of the total assets£»3
misstatement¡Ý1% of the total operatingincome. 4£©
misstatement¡Ý1% of the total |
amount of the owner¡¯s equity. 5) 3% ofthe total profits ¡Ümisstatement£¼5% ofthe total profits£»2. Significantdeficiencies£º1£©
¡Ümisstatement£¼3% of the total assets£»2£©0.5% of the total operating income¡Ümisstatement£¼1% of the totaloperating income£»3£©0.5% of the totalamount of the owner¡¯s equity¡Ümisstatement£¼1% of the total amountof the owner¡¯s equity¡£3. Generaldeficiencies£º1£©misstatement£¼
3% of the |
total profits£»2£©misstatement£¼
the total assets£»3£©misstatement£¼
0.5% |
of the total operating income£»Number of major defects in financialreporting(a)
Number of major defects in non-financialreporting (a)
Number of important defects in financialreporting(a)
Number of important defects innon-financial reporting(a)
X. Internal Control Audit Report
¡Ì Applicable ¡õ Not applicable
Review opinions in the internal control audit reportWe acknowledge that internal cont r ol of B engang Bancai is effective in all material respects and is compliance with ¡®FundamentalRules of Enterprise Internal Control¡¯ up to December 31, 2018.Internal Control Audit ReportStatus
DisclosureDisclosure date of audit report ofinternal control (full-text)
Apr il 19, 2019Index of audit report of internalcontrol (full-text)
http://www.cninfo.com.cnInternal audit report¡¯s opinion Standard unqualified opinionWhether there is significant defectin non-financial report
No
Whether the accountants¡¯ firm issued a qualified auditor¡¯s report of internal control¡õ Yes ¡Ì NoWhether the internal control audit report issued by the accountants¡¯ firm agree with theself-assessment report of the Board of Directors¡Ì Yes ¡õ No
X. Relevant Information about Corporate Bonds
Whether there exists any un-matured corporate bonds public issued and listed on the StockExchange or any matured corporate bonds which the listed company failed to pay in full at theapproval date of the annual reportNo
XI. Financial Report
Auditors¡¯ Report
PCPAR [2019] No. ZB10611
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 2018, 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 financ ial statement s.
In our opinion, the financial statements present fairly, in all material respects, theconsolidated financial position and financial position of the Company as at 31 December2018, 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 Chinese Certified Public AccountantsAuditing Standards. 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 forour opinion.
Key Aud it Matters
Th e 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 thefollowing items as key audit matters that need to be disclosed in the audit report.
Key Audit Matters | Audit Procedure |
1. Provision for Bad Debts |
Please refer to the Note
(10) Bad debt provision for accounts receivable under | The audit process implemented for recoverability of Accounts receivable |
accounting estimates¡± and Note (2) Notesreceivable and accounts receivable under
¡°5. Notes to consolidated financial |
statements¡±.
As at
181,712,302.87.
The management determines the |
estimated recoverable amount of accountsreceivable based on the assessment of thecredit status, fi
repaym en t status of relev ant customer s.
The government determines the estimated
recoverable amount of accounts |
receivable based on significant accounting
amount is significant, we determine that
the recoverability of accounts receivable |
is a key audit matter.
includes mainly:
receivables and determine internal controlrelated to bad debt provision for accountsreceivable;
2. Review the management's consideration and objective evidence for |
the impairment test of accounts receivable
management has fully identified the itemsthat have been impaired;3. Sample the accounts receivable tested
for impairment individually, and review on the assumption and reasonableness of |
future cash flows estimation made by themanagement;
impairment by portfo
lio, evaluate the |
reasonableness of the bad debt provisionproportion;
amount recorded by the management;
6. Check the amount received after the |
reporting period and evaluate thereasonableness of provision for bad debts
made by the management. | |
2. Impairment of Inventory |
Please refer to the Note £¨11£©Inventory
Inventory under ¡°5.
Notes to |
consolidated financial statements¡±.
The procedures carried out for the |
impairment of inventory include:
1. Test and evaluate the effectiveness of
impairment of inventory;
2. Supervise stock taking and check the |
As at
Inventory is measured at the lower of cost
and net realizable value. The sufficiency of impairment for inventory will exert a |
great impact on the financial statement.
products held for direct selling in the dailybusiness activity shall be
calculated by |
deducting the estimated sale expense and
price of inventories.
It involves significant judgement when |
the management determines the estimated
based on status.
As at
December 31, 2018, the carrying amount of inventory was significant and involves the estimation of net realizable |
value. Therefore, we identified it as a key
audit matter. | quantity and status of inventory, |
especially slow-
inventory;
3. Obtain the calculation of the |
impairment of in
analyse the suf f ic ien cy of im pairm ent;4. For products with open market sellingprice, we inquired the open market price
independently and compared with the |
estimat
period.
5.Evaluate the estimated sales expenses |
and related taxes and
after the balance she et date .
Other in fo r ma ti on
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 2018but 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, c onsider whether the otherinformation is materially inconsistent with the financial statements or our knowledgeobtained in the audit 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 theFinancial Statements
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 toenable the preparation of financial statements that are free from material misstatement,whether due 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 statementsas a whole are free from material misstatement, whether due to fraud or error, and to issuean auditor¡¯s report that includes our opinion. Reasonable assurance is a high level ofassurance but is not a guarantee that an audit conducted in accordance with ChineseCertified Public Accountants Auditing Standards will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expectedto influence the economic decisions of users taken on the basis of these financialstatements.
As p art 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 designaudit procedures that are appropriate in the circumstances.(3) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting 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 uncertaintyexists related to events or conditions that may cast significant doubt on Bengang SteelPlate¡¯s ability to continue as a going concern. If we conclude that a material uncertaintyexists, we are required to draw attention in our auditor¡¯s report to the related disclosuresin the financial statements or, if such disclosures are inadequate, to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor¡¯sreport. However, future events or conditions may cause Bengang Steel Plates to cease tocontinue as 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 ofentities 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 anysignifican t def icienci es in i nter nal 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 toaffect 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 thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.
BDO CHINA SHULUN PAN CERTIFIED Certified Public Accountants of China
PUBLIC ACCOUNT ANTS LLP (Engagement Partner)
Certified Public Accountants of China
Shanghai, the People¡¯s Republic of China 17 April 2019
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.
BENGANG STEEL PLATES CO., LTD.CONSOL IDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2018(Expressed in Renminbi unless otherwise indicated)
Asset | Notes | Endi ng balance | Beginning balance |
Current assets | |||
Cash at bank and on hand | 5 (1) | 16,567,471,755.77 | 17,037,713,410.49 |
Settlement pro visions | |||
Capital lent | |||
Fina ncial a sset s at fai r val ue thr ough p rofit or loss |
Derivative financial assets | |||
Notes receivable and Accounts receivable | 5 (2) | 4,219,628,324.83 | 4,575,031,627.26 |
Prepayments | 5 (3) | 1,321,537,514.78 | 1,280,689,094.33 |
Premium receivable | |||
Reinsurance accounts receivable | |||
Receivable deposit for reinsurance contract | |||
Other receivables | 5 (4) | 202,763,964.98 | 308,825,505.84 |
Redemptory financial assets for sale | |||
Inventories | 5 (5) | 10,677,747,112.40 | 11,209,898,096.16 |
Asset s he l d for sale | |||
Non-current assets due within one year | |||
Other current assets | 5 (6) | 292,119,771.13 | 809,322,127.79 |
Total current assets | 33,281,268,443.89 | 35,221,479,861.87 | |
Non-current assets | |||
Loan and advances issued | |||
Available-for-sale financial assets | 5 (7) | 1,041,824,829.00 | 3,888,980.00 |
Held-to-maturity investment | |||
Long-term receivables | |||
Long-term equity investments | 5 (8) | 2,455,681.55 | 2,726,009.03 |
Investment property | |||
Fixed assets | 5 (9) | 23,924,504,539.97 | 23,852,067,166.10 |
Construction in progress | 5 (10) | 836,594,457.82 | 2,396,143,330.06 |
Productive biological assets | |||
Oil and gas assets | |||
Intangible as sets | 5 (11) | 278,062,441.04 | 253,884,881.48 |
Devel opment expenditure | |||
Goodwill | |||
Long-term deferred expenses | |||
Deferred tax assets | 5 (12) | 191,452,547.21 | 200,618,461.36 |
Other non-current assets | 5 (13) | 76,341,975.35 | 1,067,334,823.12 |
Total non-current assets | 26,351,236,471.94 | 27,776,663,651.15 | |
Total assets | 59,632,504,915.83 | 62,998,143,513.02 |
The notes to the fi nancial 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 2018(Expressed in Renminbi unless otherwise indicated)
Liabilities and equities | Notes | Ending bala nce | Beginning balance |
Current Liabilities | |||
Short-term loans | 5 (14) | 11,938,490,375.85 | 21,999,103,900.00 |
Loan from cen tral bank | |||
Absorbed deposit and interbank deposit | |||
Loan from other financial institutions | |||
Financial liabilities at fair value through profit or loss |
Derivative financial liabilities | |||
Notes payable and Accounts payable | 5 (15) | 15,535,234,825.67 | 15,392,258,341.04 |
Advance from customers | 5 (16) | 3,331,854,098.42 | 3,308,567,598.05 |
Financial assets sold for repurchase | |||
Handling charges and commission payable | |||
Employee benef its payable | 5 (17) | 51,466,231.72 | 43,722,537.58 |
Current tax liabilities | 5 (18) | 515,752,369.68 | 87,807,128.50 |
Other payab les | 5 (19) | 862,511,178.96 | 661,129,220.33 |
Reinsurance accounts payable | |||
Provision for insurance contract | |||
Receipt from v icariously traded securities | |||
Receipt from vicariously underwriting securities | |||
Liabilities held for sale | |||
Non-current liabilities due within one year | 5 (20) | 350,965,576.32 | 3,811,540,590.84 |
Other current liabilities | 5 (21) | 27,979,093.21 | |
Total current liabilities | 32,586,274,656.62 | 45,332,108,409.55 | |
Non-current liabilities | |||
Long-term loans | 5 (22) | 7,083,640,094.16 | 2,444,185,630.28 |
Bonds payable | |||
Including: Preferred stock | |||
Perpet ual bond | |||
Long-term payables | 5 (23) | 13,686,705.92 | |
Long-term employee benefits payable | |||
Estimated liabilities | |||
Deferred income | 5 (24) | 289,499,002.97 | 372,785,000.00 |
Deferred tax liabilities | |||
Other non-current liabilities | |||
Total non-current liabilities | 7,386,825,803.05 | 2,816,970,630.28 | |
Total liabilities | 39,973,100,459.67 | 48,149,079,039.83 | |
Shareholders' equity: | |||
Share capital | 5 (25) | 3,875,371,532.00 | 3,136,000,000.00 |
Other equity instruments | |||
Including: Preferred stock | |||
Perpet ual bond | |||
Capital reserves | 5 (26) | 12,343,209,847.29 | 9,114,845,542.05 |
Less: treasury shares | |||
Other comprehensive income | |||
Special reserves | 5 (27) | 683,937.71 | 475,046.75 |
Surplus reserves | 5 (28) | 961,105,529.85 | 961,105,529.85 |
General risk reserve | |||
Undistributed profits | 5 (29) | 1,945,887,269.82 | 1,103,162,610.35 |
Total equity attributable to equity holders of the parent company |
19,126,258,116.67 14,315,588,729.00
Non-controlling interests | 533,146,339.49 | 533,475,744.19 | |
Total shareholder's equit y | 19,659,404,456.16 | 14,849,064,473.19 | |
Total of liabilities and owners¡¯ equity | 59,632,504,915.83 | 62,998,143,513.02 |
The notes to the financial statements attached form part of these financial statements.
Legal Repr esentative£º Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.STATEMENT OF FINANCIAL POSITION
As at 31 December 2018(Expressed in Renminbi unless otherwise indicated)
Assets | Notes | Ending balance | Beginning balance |
Current assets | |||
Cash at bank and on hand | 15,536,305,375.00 | 16,717,913,081.42 | |
Financial assets at fair value through profit or loss | |||
Derivative fi nancial assets | |||
Notes recei vable and Accoun ts receivable | 13(1) | 3,765,573,658.16 | 3,997,543,586.41 |
Prepayments | 1,309,194,738.97 | 1,280,354,579.87 | |
Other receivables | 13(2) | 235,037,391.46 | 395,240,485.68 |
Inventories | 8,681,362,081.72 | 9,228,860,225.75 | |
Assets hel d f or sale | |||
Non-cu r rent assets due within one year | |||
Other current assets | 193,989,096.20 | 682,211,823.73 | |
Total current assets | 29,721,462,341.51 | 32,302,123,782.86 | |
Non-cu r rent assets | |||
Available-for-sale financial assets | 1,041,624,829.00 | 3,888,980.00 | |
Held-to-maturity investment | |||
Long-term receivables | |||
Long-term equity investment | 13(3) | 2,016,281,902.16 | 1,756,981,902.16 |
Investment property | |||
Fixed assets | 22,035,187,328.57 | 21,621,369,452.27 | |
Construction in progress | 825,553,510.15 | 2,387,667,263.65 | |
Productive biological assets | |||
Oil and gas assets | |||
Intang ible assets | 148,776,177.96 | 152,082,315.24 |
Development expenditure
Goodwill |
Long-term deferred expen s es | |||
Deferred tax assets | 96,220,003.00 | 100,189,921.33 | |
Other non-current assets | 76,341,975.35 | 1,037,735,849.00 | |
Total non-current asse ts | 26,239,985,726.19 | 27,059,915,683.65 | |
Total assets | 55,961,448,067.70 | 59,362,039,466.51 |
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 2018(Expressed in Renminbi unless otherwise indicated)
Liabilities and shareholders' equities | Notes | Ending balance | Beginning balance |
Current liabilities | |||
Short-term loans | 10,624,270,375.85 | 20,499,694,500.00 | |
Financial liabilities at fair value through profit or loss | |||
Derivative financial liabilities | |||
Notes payable and Accounts payable | 15,154,564,853.70 | 15,051,433,056.31 | |
Advance from customers | 3,189,143,565.45 | 3,217,423,443.14 | |
Employee benef its payable | 49,378,095.47 | 42,380,713.02 | |
Current tax liabilities | 507,003,883.57 | 66,903,531.67 | |
Other payab les | 538,051,513.13 | 422,286,065.92 | |
Liabilities held for sale | |||
Non-current liabilities due within one year | 350,965,576.32 | 3,811,540,590.84 | |
Other current liabilities | 27,979,093.21 | ||
Total current liabilities | 30,413,377,863.49 | 43,139,640,994.11 | |
Non-current liabilities | |||
Long term loans | 7,083,640,094.16 | 2,444,185,630.28 | |
Bonds payable | |||
Including: Preferred stock | |||
Perpet ual bond | |||
Long-term payables | 13,686,705.92 | ||
Long-term employee benefits payable | |||
Estimated liabilities | |||
Deferred income | 289,499,002.97 | 372,785,000.00 | |
Deferred tax liabilities | |||
Other non-current liabilities | |||
Total non-current liabilities | 7,386,825,803.05 | 2,816,970,630.28 | |
Total liabilities | 37,800,203,666.54 | 45,956,611,624.39 | |
Shareholder¡¯s equity: | |||
Share capital | 3,875,371,532.00 | 3,136,000,000.00 | |
Other equity instruments | |||
Including: Preferred stock | |||
Perpet ual bond | |||
Capital reserves | 11,923,058,165.17 | 8,694,693,859.93 | |
Less: Treasury shares | |||
Other comprehensive income | |||
Special reserves | 525,218.48 | 276,727.96 | |
Surplus reserves | 961,105,529.85 | 961,105,529.85 | |
Undist ributed Profits | 1,401,183,955.66 | 613,351,724.38 | |
Total shareholder's equit y | 18,161,244,401.16 | 13,405,427,842.12 | |
Total liabilities and shareholder¡¯s equity | 55,961,448,067.70 | 59,362,039,466.51 |
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
BENGAN G S TE EL PLATES CO., LTD.CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2018(Expressed in Renminbi unless otherwise indicated)
Items | Notes | 2018 | 2017 |
1. Total operating income | 50,181,869,721.54 | 40,507,855,843.72 | |
Including: Operating income | 5 (30) | 50,181,869,721.54 | 40,507,855,843.72 |
Interest income | |||
Premium earned | |||
Income from handling charges and commission | |||
2. Total operating cost | 49,071,401,810.11 | 38,588,059,963.38 | |
Including: Operating cost | 5 (30) | 45,243,735,204.31 | 35,677,980,170.73 |
Interest expense | |||
E xpe nditure for handling c harges and co mmission | |||
Surrender value | |||
Net expenditure for compensation | |||
Net provision for insurance contract appropriated | |||
Bonus payment for policy | |||
Re insurance premium | |||
Tax and surcharges | 5 (31) | 356,418,784.11 | 233,743,675.12 |
Selling and d istribu tion expenses | 5 (32) | 1,135,004,470.47 | 1,184,294,573.92 |
General and administrative expenses | 5 (33) | 916,341,137.85 | 844,651,916.95 |
Research and development expenses | 5 (34) | 6,399,884.30 | 8,208,922.25 |
Financial expenses | 5 (35) | 1,376,355,160.46 | 535,642,520.07 |
Including: Interest expense | 1,278,508,985.59 | 1,023,936,982.91 | |
Interest income | 200,356,927.95 | 142,752,764.37 | |
Asset impairment loss | 5 (36) | 37,147,168.61 | 103,538,184.34 |
A dd: Other income | 5 (37) | 86,085,297.03 | 39,086,900.00 |
Income on investment£¨¡°-¡± for loss£© | 5 (38) | 5,212,886.01 | 4,052,996.54 |
I ncluding: Income from associates and joint ventures | 171,488.75 | 758,403.40 | |
Ga ins from change of fair value |
£¨
£©
Assets disposal gains |
£¨
£©
5 (39) |
213,401.13
4,280,684.29
Exchange gains | |||
3. Ope ra tio nal profit£¨¡°-¡± for loss£© | 1,201,979,495.60 | 1,967,216,461.17 | |
Add: Non-operating income | 5 (40) | 8,384,120.14 | 19,335,019.49 |
Less: Non-operating expenses | 5 (41) | 156,235,959.72 | 70,238,377.22 |
4. Total profit (¡°-¡± for loss) | 1,054,127,656.02 | 1,916,313,103.44 | |
Less: Income tax expenses | 5 (42) | 17,949,597.66 | 306,922,395.71 |
5. Net profit£¨¡°-¡± for loss£© | 1,036,178,058.36 | 1,609,390,707.73 | |
1.Classificatio n by co ntinuing ope rating | |||
1. N et profit from continuing ope ra tion | 1,036,178,058.36 | 1,609,390,707.73 | |
2. N et profit from discontinued oper a tio n | |||
2.Classification by ownership | |||
1. N et profit attributable to the owners o f parent co mpa ny | 1,036,493,236.07 | 1,600,110,229.77 | |
2 . Ne t profit attributa ble to non-controlling shareholders | -315,177.71 | 9,280,477.96 | |
6. Other comprehensive income | |||
Other comprehensive income attributable to owners of the parent company after tax |
1.Other comprehensive income items that will not be reclassified into gains/losses |
1 |
£©
Re-measurement of d efined benefit plans of cha nges in net debt or net assets |
2£©Other comprehensive income under the equity method cannot be reclassified into profit or loss |
2.Other comprehensive income that will be reclassified into profit o r lo s s . |
1£©Other comprehensive income under the equity method investee can be reclassified into profit or loss |
2£©G ains and lo ss es fr om c hange s in fair val ue ava ila ble for sale financial assets |
3£©Held-to-matur ity investments re classified to gains and losses of available for sale financial assets |
4£©The effective portion of cash flow hedges and losses | |||
5) Translation differences in currency financial statements | |||
6£©Other | |||
Other comprehensive income attributable to |
non-controlling shareholders¡¯ equity after tax
7. Total comprehensive income | 1,036,178,058.36 | 1,609,390,707.73 | |
Total comprehensive income attributable to the owner of the parent company |
1,036,493,236.07 1,600,110,229.77
-315,177.71 9,280,477.96
Total comprehensive income attributable to non-controlling shareholders | |||
8. Earnings per share | |||
1£©Basic earnings per share | 0.272 | 0.510 | |
2£©Diluted earnings per share | 0.272 | 0.510 |
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 COMPREHENSIVE INCOME
For the year ended 31 December 2018(Expressed in Renminbi unless otherwise indicated)
Items | Notes | 2018 | 2017 |
1. Total operating income | 13(4) | 50,425,079,247.74 | 41,239,125,343.24 |
Less: Operating cost | 13(4) | 46,181,928,781.43 | 37,080,706,204.98 |
Tax and surcharges | 315,916,612.32 | 200,820,143.07 | |
Selling and distribution expenses | 649,990,454.92 | 769,196,392.70 | |
General and administrative expenses | 865,648,309.29 | 798,398,143.43 | |
Research and development expenses | 6,399,884.30 | 8,208,922.25 | |
Financial expenses | 1,322,508,429.72 | 476,274,625.93 | |
Including: Interest expense | 1,214,448,750.09 | 959,588,329.92 | |
Interest income | 189,652,832.19 | 137,298,595.07 | |
Asset impairment loss | 40,515,739.88 | 103,897,129.58 | |
Add: Other income | 85,795,297.03 | 39,086,900.00 | |
Income on investment£¨¡°-¡± for loss£© | 13(5) | 5,041,397.26 | 105,369,227.90 |
Including: Income from associates and joint ventures |
loss£©
Gains from change of fair value £¨¡°-¡± for | |||
Asset s disposa l gains£¨¡°-¡± for loss£© | 213,401.13 | 4,280,684.29 | |
2. Ope r a tional profit£¨¡°-¡± for loss£© | 1,133,221,131.30 | 1,950,360,593.49 | |
Add: Non-operating income | 7,861,687.83 | 18,377,401.15 | |
Less: Non-op erating expenses | 155,512,092.92 | 70,167,296.39 | |
3. Total profit (¡°-¡± for loss) | 985,570,726.21 | 1,898,570,698.25 | |
Less: Income tax expenses | 3,969,918.33 | 278,506,683.69 | |
4. Net profit£¨¡°-¡± for loss£© | 981,600,807.88 | 1,620,064,014.56 | |
1.Net profit from continuing operation | 981,600,807.88 | 1,620,064,014.56 | |
2.Net profit from discontinued operation | |||
5.Other comprehensive income | |||
1 .Other comprehensive income items that will not be reclassified into gains/losses |
1£©Re-measurement of defined benefit plans of changes |
2£©Other comprehensive income under the equity |
method cannot be reclassified into profit or
loss |
2.Other comprehensive income that will be reclassified into profit or loss. |
1£©Other comprehensive income under the equity metho d can b e r e classified into profit or loss |
2£©Gains and losses from changes in fair value available for sale financial assets |
gains and losses of available for sale financial
assets |
4£©Th e effecti ve portion of cash flow h edges and losses |
5£©Translation differences in currenc y financial statements |
6£©Other | |||
6. Total compreh ensive income | 981,600,807.88 | 1,620,064,014.56 | |
7. Earnings per share | |||
1£©Basic earnings per share | |||
2£©Di luted earnings per share |
The notes to the financial statements form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2018(Expressed in Renminbi unless otherwise indicated)
Items | Notes | 2018 | 2017 |
1.C as h flow from operating activities | |||
Cash rece ived from sale of goods or rendering of services | 42,328,152,309.09 | 38,398,560,637.86 | |
Net increase of customers' deposit and interbank deposit | |||
Net increase of loan from central bank | |||
Net increase of loans from other financial institutions | |||
Cash rece ived for premium of original insurance contract | |||
Net cash received for reinsurance business | |||
Net increase of deposit and investment of the insured | |||
Net increase of Financial assets at fair value through profit or loss | |||
Cash from receiving interest, handling charge and commission | |||
Net increase of loans from Borrowing funds | |||
Net increase of f und for buy-back business | |||
Tax rebate received | 302,924,880.47 | 396,593,593.65 | |
Other cash received relating to operating activities | 5 (43) | 257,881,680.20 | 282,165,709.05 |
Subtotal of cash inflows from operating activities | 42,888,958,869.76 | 39,077,319,940.56 | |
Cash paid f or goods and services | 36,193,580,135.37 | 33,511,750,779.63 | |
Net increase of customer's loan and advances | |||
Net i nc re ase of deposit in central bank and interbank deposit | |||
Cash for paym ent of compensation for original insurance contract | |||
Cash for paym ent of interest, handling charge and commission | |||
Cash for paym ent of policy bonus | |||
Cash paid to and on behalf of employees | 1,979,770,272.66 | 1,818,262,493.84 | |
Cash paid for all types of taxes | 736,309,593.47 | 497,364,981.50 | |
Other ca sh paid relating to operating activities | 5 (43) | 359,361,026.33 | 505,698,193.08 |
Subtotal of cash outflows from operating activities | 39,269,021,027.83 | 36,333,076,448.05 | |
Net c as h f lows from operating activities | 3,619,937,841.93 | 2,744,243,492.51 | |
2. Ca sh f lows from investing activities | |||
Cash received from return on investments | 679,000,000.00 | 424,000,000.00 | |
Cash rece ived from distribution of dividends or profit | 5,483,213.49 | 3,294,593.14 | |
Net cash r eceived from disp osal of fix ed assets , int angib le ass ets and other long-term assets |
Net cash received from disposal of subsidiary and oth er operating units |
Other ca sh paid relating to investing activities | |||
Subtotal of cash inflows from investing activities | 684,483,213.49 | 427,294,593.14 | |
Cash paid for ac quisition of fixed ass ets, intangible ass ets and other long-term a ssets |
588,988,848.56
577,962,615.41
Cash paid f or acquisition of investments | 173,000,000.00 | 1,765,735,849.00 | |
Net increase of mortgage loan | |||
Net cash r eceived from subsidiary and other operating unit | |||
Other ca sh paid relating to investing activities | 38,485.64 | ||
Subtotal of cash outflows from investing activities | 761,988,848.56 | 2,343,736,950.05 | |
Net c as h f lows from investing activities | -77,505,635.07 | -1,916,442,356.91 | |
3. Ca sh f lows from financing activities | |||
Proceeds f rom investment | 3,965,799,988.19 | 9,000,000.00 | |
Including: Proceeds from investment of non-controlling shareholders of subsidiary |
9,000,000.00
Proceeds f rom borrowings | 30,454,154,238.01 | 29,066,698,099.54 | |
Cash r e ceived from bond issuance | |||
Other proceeds relating to financing activities | 5 (43) | 641,108,215.57 | |
Subtotal of cash inflows from financing activities | 35,061,062,441.77 | 29,075,698,099.54 | |
Cash repaym ents of borrowings | 37,598,204,701.96 | 24,367,516,288.90 | |
Cash payments for distribution of dividends, profit or interest expenses |
1,546,758,168.22
1,348,382,179.94
Including: Cash paid to non-controlling shareholders as di vidend and profit by subsidiaries |
34,024,878.25
Other ca sh payments relating to financing activities | 5 (43) | 66,626,597.64 | 4,070,073,176.21 |
Subtotal of cash outflows from financing activities | 39,211,589,467.82 | 29,785,971,645.05 | |
Net c as h f lows from financing activities | -4,150,527,026.05 | -710,273,545.51 | |
4. Effect of foreign exchange rate changes on cash and cash equivalents |
43,066,662.23
-124,590,470.23
5. Net increase in cash and cash equivalents | -565,028,156.96 | -7,062,880.14 | |
Add: Cash and cash equivalents at the beginning of the period | 12,317,576,778.93 | 12,324,639,659.07 | |
6. Cash and cash equivalents at the ending of the period | 11,752,548,621.97 | 12,317,576,778.93 |
The n o tes to the financial statements attached form part of these financial statementsLegal Representative: Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.
STATEMENT OF CASH FLOWSFor the year ended 31 December 2018(Expressed in Renminbi unless otherwise indicated)
Items | Notes | 2018 | 2017 |
1. C as h flow from operating activities | |||
Cash received from sale of goods or rendering of services |
42,632,583,197.28 38,408,092,773.75
Tax rebate received | 118,774,962.17 | 285,379,382.79 | |
Other cash received relating to operating activities | 231,198,417.23 | 256,722,673.91 | |
Subtotal of cash inflows from operating activities | 42,982,556,576.68 | 38,950,194,830.45 | |
Cash paid for goods and services | 37,353,692,318.60 | 33,504,491,064.85 | |
Cash paid to and on behalf of employees | 1,859,006,850.63 | 1,716,037,102.55 | |
Cash paid for all types of taxes | 624,727,175.93 | 391,088,388.18 | |
Other cash paid relating to operating activ ities | 283,003,821.64 | 480,784,596.96 | |
Subtotal of cash outflows from operating activities | 40,120,430,166.80 | 36,092,401,152.54 | |
Net cash flows from operating activities | 2,862,126,409.88 | 2,857,793,677.91 | |
2. Cash flow s f rom investing activities | |||
Cash received fr om return on investments | 650,000,000.00 | 424,000,000.00 | |
Cash received from distribution of dividends or profit | 5,041,397.26 | 105,369,227.90 | |
Net cash received from disposal of fixed assets, intang ible assets and other long-term assets |
Net cash received from disposal of subsidiary and other ope r a ti ng uni ts | |||
Other cash received relating to investing activities | |||
Subtotal of cash inflows from investing activities | 655,041,397.26 | 529,369,227.90 | |
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets |
583,816,993.15 535,378,428.27
Cash paid for acquisition of investments | 409,300,000.00 | 1,764,735,849.00 | |
Net cash paid for acquisition of subsidiary and other operating unit |
Other cash paid relating to investing activities | 38,485.64 | ||
Subtotal of cash outflows paid for investing activities | 993,116,993.15 | 2,300,152,762.91 | |
Net cash flows from investing activities | -338,075,595.89 | -1,770,783,535.01 | |
3. Cash flow s f rom financing activities | |||
Proceeds fr om i nvestment | 3,965,799,988.19 | ||
Cash received from borrowings | 28,965,014,238.01 | 27,099,099,299.54 | |
Cash received from bond issuance | |||
Other cash received relating to financing activities | 641,108,215.57 | ||
Subtotal of cash inflows from financing activities | 33,571,922,441.77 | 27,099,099,299.54 | |
Cash repayments of borrowings | 36,001,575,301.96 | 22,501,298,853.33 | |
Cash payments for distribution of dividends, profit or interest |
1,479,949,919.63 1,250,068,065.92
Other cas h paym ents relating to financing activities | 1,958,720.83 | 4,034,360,176.07 | |
Subtotal of cash outflows from financing activities | 37,483,483,942.42 | 27,785,727,095.32 | |
Net cash flows from financing activities | -3,911,561,500.65 | -686,627,795.78 | |
4. Effect of foreign exchange r ate changes on cash and cash equivalents |
43,049,979.65 -124,633,410.57
5. Net increase in cash and cash equivalents | -1,344,460,707.01 | 275,748,936.55 | |
Add: Cash and cash equivalents at the beginning of the period |
12,152,285,550.21 11,876,536,613.66
6. Ending balance of cash and cash equivalents | 10,807,824,843.20 | 12,152,285,550.21 |
The notes to the financial statements form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2018(Expressed in Renminbi unless otherwise indicated)
Items
2018 | |
Owner's equity attributable to parent company |
Non-controlling
interest
Total of owner's
equityShare capital
Capital reserves
Less:
Treasury
shares
Other equity instruments | Other | |
compreh
ensive
Specialreserves
Surplus reserves
General
riskreserve
Undistributed
profitPreference
shares
Perpetual
bond
Others
income | |||||||||||||
1. Ending balance of last year | 3,136,000,000.00 | 9,114,845,542.05 | 475,046.75 | 961,105,529.85 | 1,103,162,610.35 | 533,475,744.19 | 14,849,064,473.19 | ||||||
Add: Change of accounting policies | |||||||||||||
Correction of errors for last period | |||||||||||||
Business consolidation under common control | |||||||||||||
Others | |||||||||||||
2. Beginning balance of current year | 3,136,000,000.00 | 9,114,845,542.05 | 475,046.75 | 961,105,529.85 | 1,103,162,610.35 | 533,475,744.19 | 14,849,064,473.19 | ||||||
3. Changes in current year (¡°-¡± for decrease) | 739,371,532.00 | 3,228,364,305.24 | 208,890.96 | 842,724,659.47 | -329,404.70 | 4,810,339,982.97 | |||||||
1) Total comprehensive income | 1,036,493,236.07 | -315,177.71 | 1,036,178,058.36 | ||||||||||
2) Capital increase and decrease by shareholders | 739,371,532.00 | 3,228,364,305.24 | 3,967,735,837.24 | ||||||||||
(1) Common share invested by shareholders | 739,371,532.00 | 3,228,364,305.24 | 3,967,735,837.24 |
(2) Capital input by the holder of other equityinstruments
(3) Share-based payment attributable to owners' equity | |||||||||||||
(4) Others | |||||||||||||
3) Profit distribution | -193,768,576.60 | -193,768,576.60 | |||||||||||
(1) Appropriation to surplus reserves | |||||||||||||
(2) Appropriation to general risk reserve | |||||||||||||
(3) Profit distribution to shareholders | -193,768,576.60 | -193,768,576.60 | |||||||||||
(4) Others | |||||||||||||
4) Transfers within shareholders' equity | |||||||||||||
(1 ) Capital reserves transferred into paid-in capital (or stock) |
(2) Surplus reserves transferred into paid-in ca pital (or stock) | |||||||||||||
(3) Surplus reserves to recover loss | |||||||||||||
(4) Net changes of defined contribution plans |
tra ns f er r ed i nt o Retained Earnings
(5) Others | |||||||||||||
5) Special reserves | 208,890.96 | -14,226.99 | 194,663.97 | ||||||||||
(1) Provision of special reserves | 46,823,964.39 | 46,823,964.39 | |||||||||||
(2 ) Use of special reserves | 46,615,073.43 | 14,226.99 | 46,629,300.42 | ||||||||||
6) Others | |||||||||||||
4. Ending balance of current year | 3,875,371,532.00 | 12,343,209,847.29 | 683,937.71 | 961,105,529.85 | 1,945,887,269.82 | 533,146,339.49 | 19,659,404,456.16 |
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)
For the year ended 31 December 2018(Expressed in Renminbi unless otherwise indicated)
Items
2017 | |
Owner's equity attributable to parent company |
Non-controlling
interest
Tot al shareholder' s
equityShare capital
Capital reserves
Less:
Treasury
Other equit y instruments | shares | |
Othercomprehensi
Specialreserves
Surplus reserves
General
risk
ve income | reserve |
Undistributed
profitPreferenc
Perpetual
e shares | bond |
Others
1. Ending balance of last year | 3,136,000,000.00 | 9,156,845,542.05 | 372,721.86 | 961,105,529.85 | -496,947,619.42 | 549,205,917.49 | 13,306,582,091.83 | ||||||
Add: Change of accounting policies | |||||||||||||
Correction of errors for last period | |||||||||||||
Business consolidation under common control |
Others | |||||||||||||
2. Beginning balance of current year | 3,136,000,000.00 | 9,156,845,542.05 | 372,721.86 | 961,105,529.85 | -496,947,619.42 | 549,205,917.49 | 13,306,582,091.83 | ||||||
3. Changes in current year (¡°-¡± for decrease) | -42,000,000.00 | 102,324.89 | 1,600,110,229.77 | -15,730,173.30 | 1,542,482,381.36 | ||||||||
1) T otal comprehensive income | 1,600,110,229.77 | 9,280,477.96 | 1,609,390,707.73 | ||||||||||
2) Capital increase and decrease by shareholders |
9,000,000.00 9,000,000.00
(2) Capital inpu t by the holder o f other
(1) Common share invested by shareholders |
equity instruments |
(3) Share-based payment attributable to
shareholders' eq uity | |||||||||||||
(4) Others | 9,000,000.00 | 9,000,000.00 | |||||||||||
3) Profit distribution | -34,024,878.25 | -34,024,878.25 | |||||||||||
(1) Appropriation to surplus reserves | |||||||||||||
(2) Appropriation to general risk reserves | |||||||||||||
(3) Profit distribution to shareholders | -34,024,878.25 | -34,024,878.25 | |||||||||||
(4) Others | |||||||||||||
4) Tra nsfers within shareholders' equity |
(1) Capital reser ves transferred into paid-in
capital (or sto ck) |
(2) Surplus reserves transferred into paid-in ca pital (or stock) |
(3) Surplus reserves to recover loss |
(4) Net changes of defined contribution
plans tr ansferred int o Retained E ar nings | |||||||||||||
(5) Others | |||||||||||||
5) Special reserves | 102,324.89 | 14,226.99 | 116,551.88 | ||||||||||
(1) Provisio n o f special reser ves | 40,325,168.14 | 14,226.99 | 40,339,395.13 | ||||||||||
(2) Use of special reser ves | 40,222,843.25 | 40,222,843.25 | |||||||||||
6) Others | -42,000,000.00 | -42,000,000.00 | |||||||||||
4. Ending balance of current year | 3,136,000,000.00 | 9,114,845,542.05 | 475,046.75 | 961,105,529.85 | 1,103,162,610.35 | 533,475,744.19 | 14,849,064,473.19 |
The notes to the financial statements attached form part of these financial statementLegal Representative: Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2018(Expressed in Renminbi unless otherwise indicated)
Items
Share capital
2018 | ||
Other equity instruments |
Capital reserves
Less:
Treasury
shares
Othercomprehensive
income
Specialreserves
Surplus reserves
Undistributed
profits
Total shareholder¡¯s
equityPreference
shares
Perpetual bond Others
1. Ending balance of last year | 3,136,000,000.00 | 8,694,693,859.93 | 276,727.96 | 961,105,529.85 | 613,351,724.38 | 13,405,427,842.12 | |||||
Add: Change of accounting policies | |||||||||||
Correction of errors for last period | |||||||||||
Others | |||||||||||
2. Beginning balance of current year | 3,136,000,000.00 | 8,694,693,859.93 | 276,727.96 | 961,105,529.85 | 613,351,724.38 | 13,405,427,842.12 | |||||
3. Changes in current year (¡°-¡± for decrease) | 739,371,532.00 | 3,228,364,305.24 | 248,490.52 | 787,832,231.28 | 4,755,816,559.04 | ||||||
1) Total comprehensive income | 981,600,807.88 | 981,600,807.88 | |||||||||
2) Capital increase and decrease by shareholders |
739,371,532.00 3,228,364,305.24 3,967,735,837.24
739,371,532.00 3,228,364,305.24 3,967,735,837.24
(1) Common share invested by shareholders |
(2) Capital input by the holder of other equity instruments |
(3) Share-based payment attributable to
shareholders' equity | |||||||||||
(4) Others | |||||||||||
3) Profit distribution | -193,768,576.60 | -193,768,576.60 | |||||||||
(1) Appropriation of surplus reserves | |||||||||||
(2) Profit distribution to shareholders | -193,768,576.60 | -193,768,576.60 | |||||||||
(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) Others | |||||||||||
5) Special reserves | 248,490.52 | 248,490.52 | |||||||||
(1) Provision of special reserves | 40,685,554.06 | 40,685,554.06 | |||||||||
(2) Use of special reserves | 40,437,063.54 | 40,437,063.54 | |||||||||
6) Others | |||||||||||
4. Ending balance of current year | 3,875,371,532.00 | 11,923,058,165.17 | 525,218.48 | 961,105,529.85 | 1,401,183,955.66 | 18,161,244,401.16 |
The notes to the financial statements attached form part of these financial statementsLegal Representative: Chief Financial Officer: Chief Accountant:
BENGANG STEEL PLATES CO., LTD.STATEMENT OF CHANGES IN EQUITY (Continued)
For the year ended 31 December 2018(Expressed in Renminbi unless otherwise indicated)
Items
Share capital
2017 | ||
Other equity instruments |
Capital reserves
Less:
Treasury
shares
Othercomprehensive
income
Specialreserves
Surplus reserves
Undistributed
profits
Total shareholder¡¯s
equityPreference
shares
Perpetual bond Others
1. Ending balance of last year | 3,136,000,000.00 | 8,694,693,859.93 | 230,735.89 | 961,105,529.85 | -1,006,712,290.18 | 11,785,317,835.49 | |||||
Add: Change of accounting policies | |||||||||||
Correction of errors for last period | |||||||||||
Others | |||||||||||
2. Beginning balance of current year | 3,136,000,000.00 | 8,694,693,859.93 | 230,735.89 | 961,105,529.85 | -1,006,712,290.18 | 11,785,317,835.49 | |||||
3. Changes in current year (¡°-¡± for decrease) | 45,992.07 | 1,620,064,014.56 | 1,620,110,006.63 | ||||||||
1) Total comprehensive income | 1,620,064,014.56 | 1,620,064,014.56 | |||||||||
2) Capital increase and decrease by shareholders |
(2) Capital input by the holder of other
(1) Common share invested by shareholders |
equity instruments |
(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 |
(5) Others | |||||||||||
5) Special reserves | 45,992.07 | 45,992.07 | |||||||||
(1) Provision of special reserves | 34,507,289.29 | 34,507,289.29 | |||||||||
(2) Use of special reserves | 34,461,297.22 | 34,461,297.22 | |||||||||
6) Others | |||||||||||
4. Ending balance of current year | 3,136,000,000.00 | 8,694,693,859.93 | 276,727.96 | 961,105,529.85 | 613,351,724.38 | 13,405,427,842.12 |
The notes to the financial statements attached form part of these financial statementsLegal Representative: Chief Financial Officer: Chief Accountant:
Bengang Steel Plates Co., Ltd.
Notes to the financial statements
For the year ended 31 December 2018(Expressed in Renminbi unless otherwise indicated)
1. Basic Information of the Company
(1) Company profile
Bengang Steel Plates Co., Ltd. (hereinafter referred to as ¡°the Company¡±), as approved inLiao-Zheng (1997) No. 57 by Liaoning People¡¯s Government on 27 March 1997, wasincorporated as a joint stock limited company through public share offer of domestic listedforeign currency denominated shares (B shares) in the People¡¯s Republic of China (the ¡°PRC¡±)on 27 June 1997 by Benxi Steel and Iron (Group) Co., Ltd. (¡°Bengang Group¡±), throughreorganization of operations, assets and liabilities of its plants, namely, Steel Smelting Plant,Primary Rolling Plant and Continuous Hot Rolling Plant.
As approved by China Securities Regulatory Commission (hereinafter referred to as ¡°theCSRC¡±), the Company issued 400,000,000 B-shares at HKD2.38 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 ¨C the only holder of non-negotiablestate-owned legal person shares paid the consideration to the current shareholders to obtainthe current option for the 40,800,000 shares of the total 616,000,000 shares it was holding.Shareholding positions have been registered with China Securities Depository & 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 Regulatory
Committee, and were exempted for the liability of undertaking the purchase offer. Theliability was caused by subscribing of the 2 billion new shares and the total shareholding wasthus increased to 2.5752 billion shares (accounting for 82.12% of the total capital shares ofthe Company). 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 wereapproved by Shenzhen Stock Exchange to be placed in the stock market. The placing pricewas RMB4.6733 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.
As at 31 December 2018, the capital shares were totaled to 3,875,371,532 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: Gao Lie.
The parent company of Bengang Steel Plates Co., Ltd is Benxi Steel and Iron (Group) Co.,Ltd. and the actual controller is the State-owned Assets Supervision and AdministrationCommission of the State Council of Liaoning province.
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 17 April 2019.
(2) Consolidation scope
As at 31 December 2018, subsidiaries included in the Company¡¯s consolidated financialstatements are as follows:
Name of the sub sidiariesGuangzhou Bengang Steel & Iron Trading Co., Ltd.
Shanghai Bengang Metallurgy Science and Technology Co., Ltd.Bengang Steel Plates Liaoyang Pellet Co., Ltd.Dalian Benruitong Automobile Material Technology Co., Ltd.Changchun Bengang Steel & Iron Sales Co., Ltd.Harbin Bengang Economic and Trading Co., Ltd.Nanjing Bengang Materials Sales Co., Ltd.Wuxi Bengang St eel & Iron Sales Co., Ltd.Xiamen Beng ang Steel & Iron Sales Co., Ltd.Yantai Bengang Steel & Iron Sales Co., Ltd .Tianjin Bengang Steel & Iron Trading Co., Ltd.Bengang Posco Cold-rolled Sheet Co., Ltd.Benxi Beng ang Steel Sales Co., LtdShen yang Beng ang Metallurgical Science and Technology Co., Ltd.Chongqing Liaoben Steel & Iron Trading Co., Ltd.Bengang Baojin (Shenyang) Automobile New Material Technology Co., Ltd.
For details of consolidation scope and change of the consolidation scope for the period, pleaserefer to Note 6 ¡°Equity in other entities¡±.
2. Basis of preparation
(1) Basis of preparation
The financial statements have been prepared on the going concern basis of actual trading andevents in accordance with ¡°Accounting Standards for Business Enterprises ¨C Basic Standard¡±and relevant specific standards, application materials, interpretations (together hereinafterreferred to as ¡°Accounting Standards for Business Enterprises¡±) issued b y the Ministry ofFinance, and ¡°Information Disclosure Rules for Companies of securities for public issuanceNo. 15 ¨C G eneral Regulations for Financial Statements¡± issued by the China SecuritiesRegulatory Commission.
(2) Going concern
The Company is operating normally and in a good condition, and thus has the capability tocontinue to operate in the next twelve months from the end of reporting period.
3. Significant accounting policies and accounting estimates
The following disclosed content covers the detailed accounting policies and accountingestimates that are adopted by the Company according to the actual features of production oroperation.
(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 Company during the reporting period in accordance with China
Accounting Standards for Business Enterprises.
(2) Accounting year
The Accounting year is from 1 January to 31 December.
(3) Operating period
The operating period is twelve months.
(4) Functional currency
The Company¡¯s functional currency is RMB.
(5) The accounting treatment for Business combination under/not under common control
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 aquiree¡¯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 thecapital reserve is not sufficient, any excess shall be adjusted against retained earnings.
Business combination not under common controlThe Company shall, on the acquisition date, measure the assets given and liabilities incu rredor 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 th e identifiable n et assets it ob tains from the acq uiree as goo dwill.The Company shall treat the negative balance between the combination costs and the fairvalue of the identifiable net assets it obtains from the acquiree into the profits and losses ofthe current period.
The intermediary costs and relevant fees for the business combination paid by the acquirer,including the expenses for audit, assessment and legal services, shall be recorded into theprofits and losses at the current period. The transaction expenses for the issuance of equitysecurities for the business combination shall be recorded into the initial recognition amount ofequity securities.
(6) Consolidation of Financial Statements
1. Scope of consolidationThe scope of consolidation of consolidated financial statements is determined based on
control. All the subsidies (including separable sections of the investees controlled by theCompany) have been consolidated into the scope of consolidation for this period ended.
2. Procedure of consolidationThe consolidated financial statements shall be presented by the parent based on the financialstatements of the parent and its subsidiaries, and using other related information. Whenpreparing consolidated financial statements, the parent shall consider the entire group as anaccounting entity, adopt uniform accounting policies and apply the requirements ofAccounting Standard for Business Enterprises related to recognition, measurement andpresenta tion. The consolidated financial statements sha ll reflect the overa ll financial position ,operating results and cash flows of the group.
The accounting policy and accounting period of the subsidiaries within the consolidationscope shall be in accordance with those of the Company. If not, it is necessary to make theadjustment according to the Company¡¯s accounting policies and accounting period whenpreparing the consolidated financial statements. For subsidiaries through acquisition that arenow under common control, the financial statements are adjusted according to fair value ofidentifiable net assets on the acquisition date. For subsidiaries through acquisition that areunder common contro l, the assets, liabilities (as wel l as the good will arising from purch asingthe subsidiary by the ultimate controller) are adjusted according to book value of net assets inthe financial statements of the ultimate controller.
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 statementof 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 asubsidiary, the excess shall be charged against the minority¡¯s interests.
(1) Increasing new subsidiaries and businessesIf the Company has a new subsidiary due to business combination under common controlduring the reporting period, it shall adjust the beginning balance in the consolidatedstatement of financial position when preparing consolidated statement of financial position.The revenue, expenses and profits of the subsidiaries from the acquisition date to the end ofthe reporting period are included in the Company¡¯s consolidated statement of comprehensiveincome. The cash flow of the subsidiaries from the acquisition date to the end of thereporting period is included in the Company¡¯s consolidated statement of cash flows. Andmeanwhile the Company shall adjust the relevant items of the comparative financialstatements as if the reporting entity for the purpose of consolidation has been in existence
since the date the ultimate controlling party first obtained control.
When the Company becomes capable of exercising control over an investee under 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 now under common control, the Company shall not adjust the beginning balance in theconsolidated statement of financial position when preparing consolidated statement offinancial position. The revenue, expenses and profits of the subsidiaries from the acquisitiondate to the end of the reporting period are included in the parent company¡¯s consolidatedstatement of comprehensive income. The cash flow of the subsidiaries from the acquisitiondate to the end of the reporting period is included in the Company¡¯s consolidated statementof cash flows.
When the Company becomes capable of exercising control over an investee now undercommon control due to additional investment or other reasons, the acquirer shall remeasureits previou sly held eq uity intere st in the acqu iree to its f air value at the acquis ition 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 toprofit or loss for the current period when the acquisition takes place. Other comprehensiveincome arising from remeasurement of defined benefit plan is excluded.
(2) Disposing subsidiaries or businesses
1. General treatmentIf the Company disposes a subsidiary during the reporting period, the revenue, expenses andprofits of the subsidiary from the beginning of the reporting period to disposal date areincluded in the Company¡¯s consolidated statement of comprehensive income. The cash flowof the subsidiaries from the beginning of the reporting period to disposal date is included inthe Company¡¯s consolidated statement of cash flows.
When the Company loses control over an investee due to partial disposal or other reasons,
the acquirer shall re-measure the remaining equity interests in the acquiree to its fair value atthe acquisition date. The difference, between sums of consideration received for disposalequity shares and fair value of the remaining shares, and sums of share of net assets of thesubsidiary calculated continuously from the acquisition date or the combination date basedon the previous shareholding proportion and goodwill, shall be recognized as investmentincome for the period when the Company loses control over acquiree. When thepreviously-held equity investment is accounted for under the equity method, any othercomprehensive income previously recognized in relation to the acquiree¡¯s equity changes,and other equity changes rather than changes from net profit, other comprehensive incomeand profit distribution, shall be transferred to investment income for the current period whenthe Company loses control over acquiree. Other comprehensive income arising fromre-measurement of defined benefit plan is excluded. When the Company loses control over asubsidiary due to the increase of capital from other investors and thus the shareholding ratioof the Company declines, accounting treatment shall be in accordance with theabove-mentioned principles.
2. Disposing subsidiaries by multiple transactionsWhere 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 singletransaction:
(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 thesubsidiary 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 shareholdersWhere 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 port ion of equ it y investment s in subsidi aries without loss ing cont ro lWhen the Company disposes of a portion of the long-term equity investments in asubsidiary without loss of control, the difference between the amount of the considerationreceived and the corresponding portion of the nest assets of the subsidiary calculatedcontinuously from the acquisition date or the combination date related to the disposal of thelong-term equity investments shall be adjusted to the capital reserve (capital premium orshare premium) in the consolidated financial statements. If the balance of the capital reserveis not sufficient, any excess shall be adjusted against retained earnings.
(7) Recognition of cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term ¡°cash¡± refers to the cash onhand and the unrestricted deposit. And the term ¡°cash equivalents¡± refers to short-term(maturing within three months from acquisition) and highly liquid investments that are readilyconvertible t o known amounts of cash and which are subject to an insignificant risk of changein value.
(8) Foreign currency transaction and translation of foreign currency financial statements
1. Foreign currency transaction
Foreign currency transactions are translated into RMB at the current rate at the day 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 initial
recognition 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 financ ial 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 currenc y financial statements related to this oversea business, intothe disposal profits and losses of the current period. If the overseas business is disposed ofpartially, the Company shall calculate the balance arising from the translation of foreigncurrency statements of the part of disposal based on the disposal rate and shall shift them intothe profits and losses of the current period.
(9) Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments
1. Classification of financial instrumentsThe classification of financial assets and financial liabilities at initial recognition are asfollows: financial assets o r financial liabilities designate d at fair value through current profitand loss, including: trading financial investment, held-to-maturity investment, loans andreceivables, available-for-sale investment and other financial liabilities.
2. Recognition and measurement of financial instruments(1) The financial assets (liabilities) at fair value through profit or loss
The financial assets (financial liabil ities) at fair value through profit or los s are recognizedinitially at fair value (minus cash dividends declared but not received or bond interest maturedbut not drawn yet). The relevant transaction cost is recognized in current profit and loss whenoccurred.
The cash dividends or interest are recognized as investment income when the Companyreceives such financial assets. At the balance sheet date, the Company recognizes the fair
value changes in current profit and loss.
The Company recognizes the difference between initial recognition and fair value of thefinancial assets as investment income when disposing the financial assets and at the same timeadjusts the fair value changes in current profit and loss.
(2) Held-to-maturity investment
The Held-to-maturity investments are recognized in itially at fair value (minus bond interestmatured but not drawn yet) plus any related transaction cost.
The held-to-maturity investments are measured at amortized cost using the effective interestrate. The interest income is recognized as investment income. The effective interest will bedetermined at the initial recognition and will not be changed in the holding period or within ashorter applicable period.
When disposing the held-to-maturity investment, the difference between the investingproceeds and the carrying value is recognized as investment income.
(3) Receivables
Receivables from selling products and rendering services or receivable of other company notincluding the receivables with quoted price in the active market (including: accountsreceivable, other receivables, notes receivable, prepayments, long-term receivables) aremeasured at contract price; if the receivables is of financing nature, it shall be recognized atthe present value initially.
When disposing the receivables, the difference between the proceeds and the carrying value isrecognized in current profit and loss.
(4) Available-for-sale financial assets
Available-for-sale financial assets are initially recorded at the sum of fair values (deductingcash dividends that have been declared but not distributed and bond interests that havematured but not been drawn) and transaction costs when acquired.
The Company recognizes the interest or cash dividends as investment income. At eachbalance sheet date, available-for-sale financial assets are measured at fair value and the fairvalue changes are recognized in the capital reserve - other capital reserve.The difference between the proceeds of the disposal and the carrying value shall be
recognized as investment income. And the related fair value change in the shareholders¡¯equity shall be transferred out and recorded as investment income.
(5) Other financial liabilities
For other financial liabilities, they are initially recognized at fair value plus any directlyattributable transaction costs. After the initial recognition, th e other financial liabilities aremeasured at amortized cost.
3. Recognition and measurement of financial assets transfer
Where the Company has transferred nearly all of the risks and rewards related to theownership of the fin ancial asset to the transferee, it sha ll stop recognizing the financial asset.If it reta ined ne arly 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 intopartial financial assets transfer and entire financial asset transfer. If the transfer of an entirefinancial asse t satisfies the conditions for de-recognition, the difference between the amountsof the following 2 items shall be recorded in the profits and losses of the current period:
(1) The book value of the transferred financial asset; and(2) The sum of consideration received from the transfer, and the accumulative amount of thechanges 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 theportion of the accumulative amount of the changes in the fair value originally recorded in the
owner's equities which is corresponding to the portion whose recognition has been stopped(in the event that the financial asset involved in the transfer is a financial assetAvailable-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 liabilitiesOnly when the p revailing obligations of a financia l liability are relieved in a ll 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 theexisting financial liabilities by way of any new financial liability, and if the contractualstipulation s regard ing the new finan cial liabil ity is sub stan tially different from that re gard ingthe existing financial liability, it shall terminate the recognition of the existing financialliability, and shall at the same time recognize the new financial liability.
Where the Company makes substantial revisions to part or all of the contractual stipulationsof the existing fina ncial liability, it shall terminated the recognition of the existing financialliability or part of it, a nd at the same time recognize the financial liab ility after revising thecontractual stipulations as a new financial liability.
Where the re cognition of a financial lia bility is totally or partially terminate d, 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 financia l 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 byquoted prices in the active markets. If active markets for the financial instruments do notexist, valuation techniques shall be applied for the measurement. The Company usesvaluation techniques appropriate in the circumstances and for which sufficient data areavailable to measure fair value. The Company chooses relevant observable inputs foridentical o r similar assets or liabilities. O nly when relevant o bservable inputs are unavailableor should the Company use unobservable inputs for the asset or liability.
6. Impairment provision of the financial assets (excluding accounts receivables)The Company shall carry out impairment review for the financial assets at the balance sheetdate except for the financial assets at fair value through profit or loss. Where there is anyobjective evidence proving that such financial asset has been impaired, an impairmentprovision shall be made.
(1) Impairment of available-for-sale financial assetsAn impairment provision shall be made where the fair value of the available-for-salefinancial assets drops significantly at the balance sheet date or the trend of decrease isexpected not to be temporary after taking various factors into consideration. Theaccumulative losses arising from the decrease of the fair value of the owners¡¯ equity whichwas directly included shall be transferred out and recorded as impairment loss.
Where any available-for-sale debt instruments is recognized as having suffered from anyimpairment loss, if there is any objective evidence proving that t he value of the said debtinstruments has been restored, and it is objectively related to the events that occur after suchloss i s recognized, th e impairment-related losses as originally recognized shall be reversedand be recorded into the profits and losses of the current period.
Impairment losses incurred by investment transactions of available-for-sale equityinstruments shall not be reversed through profits and losses.
The criteria for ¡°significant¡± decrease of fair value of available-for-sale equity instruments:
the book value the equity investment is lower than 50% of the fair value;The criteria for ¡°non-temporary¡± decrease of fair value of available-for-sale equityinstruments: available-for-sale equity instruments have been subject to material un-normalfactors or the book value has been lower than the purchase price for over one year (includingone year).
(2) Impairment of held-to-maturity investmentThe impairment of the held-to-maturity investment can be measured at reference to themeasurement of the impairment of accounts receivables.
(10) Receivables
1. The recognition and provision for bad debts for the individually significant receivablesThe recognition standard for the individually significant receivables:
Accounts receivable over RMB10 million or other receivables over RMB 5 million.
The provision method for bad debts for the individually significant receivables:
The impairment test shall be assessed individually for each individually significant receivable.If th ere is evidence indicating that the receivables have been impaired, the difference betweenthe present value of the future cash flows and the book value of receivables shall berecognized as bad debts provision and shall be recorded into the profits and losses at thecurrent period. Receivables that are assessed not to be impaired individually are subsequentlyassessed for impairment in portfolios.
2. The provision for bad debts for the receivables in portfolio
The provision method for bad debts for the receivables in portfolioCriteria for portfolioPortfolio
Provision method for bad debts for portfolioPortfolio Aging analysis method
Aging analysis method for bad debts provision
Aging
Indi vidual insign ifican t recei vables and receivab les t hat are ind ivi duall y assessednot to be im paired
Bad deb ts ratio foraccounts receiva bl e (%)
Bad deb ts ratio for accounts receiva bl e (%) | Bad deb ts ratio for other receivables ( %) |
Within 1 year (inclusive)1-2 years (in clusive) 5.00 5.002-3 years (in clusive) 20.00 20.00Over 3 years 100.00 100.00
3. Individually insignificant receivables of which bad debts are provisioned individually(1) Reasons for individual provision of bad debtsIndividually insignificant receivables are individually assessed to be impaired.
(2) The provision method for bad debts
The difference between the present value of the future cash flows and the book value of
receivables shall be recognized as bad debts provision and shall be recorded into the profits
and losses at the current period.
(11) Inventory
1. Inventory classification
Inventories inclu de material in transit, raw material, low-valued consumables, finished goods,
work in process, materials for consigned processing, etc.
2. Valuation method for inventory dispatched
The weighted average method is used to confirm the actual cost of the inventories dispatched.
3. The basis for confirming the net realizable value of inventories and the methods to
make provision for the inventories impairment loss
The net realizable value of inventories (finished products, stock commodity, material, etc.)
held for direct selling in the daily business activity shall be calculated by deducting the
estimated sale expense and relevant taxes from the estimated sale price of inventories; The net
realizable value of inventories for further processing in the daily business activity shall be
calculated by deducting the estimated cost of completion, estimated sale expense and relevant
taxes from the estimated sale price of inventories; The net realizable value of inventories held
for the execution of sales contracts or labor contracts shall be calculated on the ground of the
contract price. If the Company holds more inventories than the quantities subscribed in the
sales contract, the net realizable value of the excessive part of the inventories shall be
calculated on the ground of the general sales price.
The Company shall make provision for loss on decline in value of inventories on the ground
of each item of inventories at the year end. For inventories with large quantity and relatively
low unit prices, the provision for loss on decline in value of inventories shall be made on the
ground of the categories of inventories. For the inventories related to the series of products
manufactured and sold in the same area, and of which the final use or purpose is identical or
similar thereto , and if it is difficult to measure th em by separating them from other items, the
provision for loss on decline in value of inventories shall be made on a combination basis.
Unless clear evidence sh ows that the market price is exceptionally fluctuating, the netrealizable value of inventory is based on the market price at the balance sheet date.
The net realizable value of inventory at the year-end is based on the market price at thebalance sheet date.
4. Inventory systemThe Company uses perpetual inventory system.
5. Amortization of low-valued consumables and packing materials(1) Low-valued consumables shall be amortized in full amount on issuance.(2) Packing materials shall be amortized in full amount on issuance.
(12) Assets hold for sales
The Company classifies non-current assets or disposal asset groups when the assets meet thefollowing criterion into holding categories for sale simultaneously:
(1) According to the practice of selling such assets or disposal asset groups in similartransactions, they can be sold immediately under current conditions;(2) The sale of assets is highly probable, as the company has already made a resolution on asale plan and obtained a certain purchase commitment, and the transaction is expected to becompleted within one year. The relevant regulations that the assets can be sold have beenapproved by relevant authorities or regulatory authorities of the Company.
(13) Long-term equity investment
1. Criteria of joint control and significant influenceJoint control is the contractually agreed sharing of control of an arrangement, which existsonly when 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.
Significa nt in flue nce is the power to par ticipa te in the f inancia l and opera ting polic y 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, if the consideration of the combination issatisfied by paying cash, transfer of non-cash assets or assumption of liabilities and issue ofequity securities, the initial investment cost of the long-term equity invest ment shall be theabsorbing party¡¯s share of the carrying amount of the owner¡¯s equity of the party beingabsorbed in the consolidated financial statements of the ultimate controlling party atcombination date. When an investor becomes capable of exercising control over an investeeunder common control due to additional investment or other reasons, the initial investmentcost shall be the absorbing party¡¯s share of the carrying amount of the owner¡¯s equity of theparty being absorbed in the consolidated financial statements of the ultimate controlling partyat combination date. The difference between the initial investment cost and the carryingamount of the previously-held equity investment, together with the additiona l investment costfor new shares at combination date, shall be adjusted to the capital reserve. If the balance ofcapital reserve is not sufficient, any excess shall be adjusted to retained earnings.
For a business combination not under common control, the initial investment cost of thelong-term equity investment shall be the acquisition cost at the acquisition date. When aninvestor becomes capable of exercising control over an investee due to additional investmentor other reasons, the initial investment cost under the cost method shall be the carryingamount of previously-held equity investment together with the additional investment cost.
(2) The initial cost of the long-term equity investment other than from business acquisition
The initia l co st of a lon g-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.
If the exchange of non-monetary assets is commercial in nature and the fair values of both theassets received and surrendered can be reliably measured, the fair value of the assetssurrendered shall be used as the basis for determining the cost of the assets received, unlessthere is any exact evidence showing that the fair value of the assets received is more reliable.Where any non-monetary assets transaction does not meet the conditions as prescribed above,the carrying value and relevant payable taxes of the assets surrendered shall be the initial costof the assets received.
The initial cost of a long-term equity investment obtained by debt restructuring shall beascertained on the basis of fair values.
3. Subsequent measurement and profit or loss recognition
(1) Cost method
The Company adopts cost method for the long term investment in subsidiary company. Underthe cost method, an investing enterprise shall, in accordance with the attributable share of thenet profits or losses of the invested entity, recognize the investment profits or losses except thedividend declared but unpaid, which is included in the payment when acquiring theinvestment.
(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 exceedstan investor¡¯s interest in the fair values of an investee¡¯s identifiable net assets at theacquisition d ate, no adjustment sh all be made to the initi al investment cost. Whe re the initialcost is less th an the investor¡¯s inte res t in the fair v alu es o f the investe e¡¯s identifiable net ass etsat the acquisition date, the difference shall be credited to profit or loss for the current period.
The Company shall recognize its share of the investee¡¯s net profits or losses, as well as itsshare of 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 distributionsor c ash dividends declared b y the investee that is attribu table to the investor. The investor¡¯sshare of the investee¡¯s owners¡¯ equity changes, other than those arising from the investee¡¯s netprofit or loss, other comprehensive income or profit distribution, and the carrying amount ofthe long-term equity investment shall be adjusted accordingly.
The investor shall recognize its share of the investee¡¯s net profits or losses after makingappropriate adjustments according to the Company¡¯s accounting principles and operatingperiod based on the fair values of the investee¡¯s identifiable net assets at the acquisition date.During the holding period, if the investee makes consolidated financial statements, 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 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. Any lossesresulting from transactions between the investor and investee which are attributable to assetimpairment shall be recognized in full. If the transaction of investment or sale of assets among
the Company and associate and joint venture and the assets is a business, it shall apply thetreatment mentioned in Note 3 (5) ¡°The accounting treatment for Business combinationunder/now under common control¡± and Note 3 (6) ¡°Consolidation of Financial Statements¡±.
When the Company recognizes the losses of invested enterprise, it shall follow the followingsequence: First of all, offset the book value of long term equity investment. If the book valueof long-term equity is insufficient to dilute, the investing enterprise shall recognize the netlosses of the invested enterprise until the book value of the long-term equity investment andother long-term rights and interests which substantially form the net investment made to theinvested entity are reduced to zero. If the company still has the obligation to undertake extralosses per contract, and then estimated liabilities shall be recognized into current profit andloss accordingly to the estimated obligation.
(3) Disposal of long-term equity investmentWhen 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.
When the previously-held equity investment is accounted for under the equity method, anyother comprehensive income previously recognized shall be accounted for on the same basisas would have been required if the investee had directly disposed of the related assets orliabilities. Those owner's equity recognized other than the change of net profits or loss, othercomprehensive income, profit distribution of the invested entity shall be transferredproportionally into profit or loss of current period, other comprehensive income arising fromthe re-measurement of defined benefit plan is excluded.
When an investor can no longer exercise joint control of or significant influence over aninvestee due to partial disposal of equity investment or other reasons, the remaining equityinvestment shall be accounted for in accordance with ¡°Accounting Standard for BusinessEnterprises No. 22-Financial instruments: recognition and measurement¡±. The differencebetween the fair value and the carrying amount at the date of the loss of join control orsignificant influence shall be charged to profit or loss for the current period. When thepreviously-held equity investment is accounted for under the equity method, any othercomprehensive income previously recognized shall be accounted for on the same basis aswould have been required if the investee had directly disposed of the related assets orliabilities for the current period upon discontinuation of the equity method. Those owner'sequity recognized other than the change of net profits or loss, other comprehensive income,profit distribution of the invested entity shall be transferred into profit or loss of current periodin full when the Company cease to adopt the equity method.
When the Company can no longer exercise control over an investee due to partial disposal ofequity investment or due to decrease of shareholding ratio because of additional investmentby other investors, and with the retained interest, still has joint control of, or significantinfluence over, the investee, when preparing the individual financial statements, the investorshall change to the equity method and adjust the remaining equity investment as if the equitymethod had been applied from the date of the first acquisition. If the investor cannot exercisejoint control of or significant influence over the investee after partial disposal of equityinvestment, the remaining equity investment shall be accounted for in accordance with¡°Accounting Standard for Business Enterprises No.22-Financial instruments: Recognition andMeasurement¡±, and the difference between the fair value and carrying amount at the date ofthe loss of control shall be charged to profit or loss for the current period.
When the equity investment disposed is acquired through business combination due toadditional investment or other reasons, in stand-alone financial statement, the remainingequity investment shall adopt cost method or equity method, any other comprehensive incomeand other owner¡¯s interests previously recognized of the previously-held equity investmentunder the equity method shall be transferred proportionally. For those remaining equityinvestment accounted for in accordance with ¡°Accounting Standard for Business EnterprisesNo.22-Financial instruments: Recognition and Measurement¡± after disposal, othercomprehensive income and other owner¡¯s interests previously recognized shall be transferredto profit or loss in full.
(14) Investment property
Investment property refers to real estate held for the purpose of earning rent or capital appreciation,or both, including leased land use rights, land use rights held and prepared for transfer afterappreciation, and leased buildings ( Buildings that are leased after completion of self-constructionor development activities and buildings that are being used for rental in the future duringconstruction or development).
The company uses the cost model to measure the existing investment property. For investmentproperty measured according to the cost model - the rental building adopts the same depreciationpolicy as the fixed assets of the company, and the land use right for rental is amortized accordingto the same amortization policy as the intangible assets.
(15) Fixed assets
1. Recognition of Fixed assetsThe term "fixed assets" refers to the tangible assets held for the sake of producingcommodities, rendering labor service, renting or business management and of which usefullife is in excess of one fiscal year. No fixed asset may be recognized unless it simultaneouslymeets the conditions as follows:
(1) The economic benefits pertinent to the fixed asset are likely to flow into the enterprise;and(2) The cost of the fixed asset can be measured reliably.
2. Fixed assets depreciationFixed assets are depreciated under the straight line method. The depreciation rate isdetermined according to the category of assets, the useful life and the expected residual rate.If the components of the fixed assets have different useful lives or provide the economicbenefits in a different way, then different depreciation rate or method shall be applied and thedepreciation of the components shall be calculated separately.
Fixed assets acquired under financial leasing is depreciated over the useful life if it isreasonably certain that the ownership of the leased assets will be acquired upon expiry oflease, or over the shorter of lease term and useful life if it is not reasonably certain that theownership of the leased assets will be acquired upon expiry of lease.
Details of classification, depreciation period, residual value rate and annual depreciation rateare as follows:
Category Depreciation method
Depreciation
Period
Resi dual Value
Rat e (%)
Rate(%)
Depreciation | ||||
Plants and Buildings | straight line method | 8-40 years | 0.00 | 2.50-12.50 |
Machinery | straight line method | 4-18 years | 3.00 | 5.39-24.25 |
Transportation and |
other equipment
5-18 years 3.00 5.39-19.40
3. Recognition criteria for fixed asset leased in by financial leasing and its valuationWhere a lease satisfies one or more of the following criteria, it shall be recognized as afinancial leasing:
(1) The ownership of the leased asset is transferred to the lessee when the term of leaseexpires;
(2) The lessee has the option to buy the leased asset at a price which is expected to be far
lower than the fair value of the leased asset at the date when the option becomes exercisable;(3) The lease term covers the major part of the use life of the leased asset; and(4) The present value of the minimum lease payments on the lease beginning date amounts tosubstantially all of the fair value of the leased asset on the lease beginning date.
On the lease beginning date, the Company shall record the lower one of the fair value of theleased asset and the present value of the minimum lease payments on the lease beginning dateas the initial book value, recognize the amount of the minimum lease payments as the initialbook value of long-term account payable, and treat the difference between the recordedamount of the leased asset and the long-term account payable as unrecognized financingcharges.
(16) Construction in progr e ss
The cost of fixed asse ts transferred from a construction in progress includes all the necessaryexpenses incurred for bringing the asset to the expected conditions for use. Construction inprogress is transferred to fixed asset when it has reached its working condition for its intendeduse. In case the final project accounts have not been completed or approved, the asset shall betransferred to fixed assets at an estimated value by considering project budget, cost or actualcost of the project and etc., and the deprecation of the said fixed assets shall be provided inaccordance with the Company¡¯s accounting policy since it has reached its working conditionfor its intended use. After the project accounts have been approved, the estimated values shallbe adjusted based on the actual cost, but those provided deprecation shall not be adjusted.
(17) Borrowing costs
1. Principle of the recognition of capitalized borrowing costsThe borrowing costs shall include interest on borrowings, amortization of discounts orpremiums on borrowings, ancillary expenses, and exchange balance on foreign currencyborrowings.
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 capitaliza tion refer to the fixed assets, invest ment real estate, inventoriesand other assets, of which the acquisition and construction or production may take quite along time to get ready for its intended use or for sale.
The borrowing costs shall not be capitalized unless they simultaneously meet the followingrequirements:
(1) The asset disbursements have already incurred, which shall include cash, transferrednon-cash assets or interest bearing debts paid for the acquisition and construction orproduction activities for preparing assets eligible for capitalization;(2) The borrowing costs has already incurred; and(3) The acquisition and construction or production activities which are necessary to preparethe asset for its intended use or sale have already started.
2. The capitalization period of borrowing costsThe 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.
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.
Where each part of a qualified asset under acquisition and construction or production iscompleted separately and is ready for use, the capitalization of the borrowing costs in relationto this part of asset shall be ceased.
Where each part of an asset under acquisition and construction or production is completedseparately and is ready for use or sale during the continuing construction of other parts, but itcannot be used or sold until the asset is entirely completed, the capitalization of the borrowingcosts shall be ceased when the asset is completed entirely.
3. The suspension of capitalization of borrowing costsWhere 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 orsale, 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 calcul ating t he capitali zation rate and capital ize d amount of borrowi n g cost s
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 aqualified asset under acquisition, construction or production is ready for the intended use orsale shall be capitalized at the incurred amount when they are incurred, and shall be recordedinto the costs 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 ofthe general borrowing used. The capitalization rate shall be calculated and determined in lightof the weighted average interest rate of the general borrowing.
(18) Intangible Assets
1. Measurement of Intangible Assets(1) Initial measurement is based on cost upon acquisitionThe 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. If the payment for an intangible asset isdelayed beyond the normal credit conditions and it is of the financing nature, the cost of theintangible asset shall be determined on the basis of the present value of the purchase price.
For intangib le assets o btained from debt restr ucturing as settlement o f liabilitie s fro m debtors,initial recognition is based on its fair value, and the difference between the debt restructuredand the fair value of the intangible assets are recognized in the current profit and loss.
For intangible assets obtained from non-monetary transactions with commercial substance,and the fair value of the assets obtained or surrendered can be reliably measured, the initialrecognition of the asset obtained is based on the fair value of the asset surrendered, unlessthere is strong evidence that the fair value of the asset obtained is more reliable. For intangibleassets obtained through non-monetary transactions which do not meet the above criteria, theinitial recognition is based on the book value of the assets surrendered and the relevant taxespayable. No gain or loss will be recognized.
(2) Subsequent M easurement
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-linemethod during the period when the intangible asset can bring economic benefits to theenterprise. If it is unable to estimate the beneficial period of the intangible asset, it s hall beregarded as an intangible asset with uncertain service life and shall not be amortized.
2. Estimated useful lives of intangible assets with limited useful lives
Item | Estimated useful life | Criteria |
Land use right | 50 years | Land use right certificate |
The Company shall review the useful lives and amortization methods of intangible assets withlimited useful lives at each year end.
3. Determination of intangible assets with uncertain useful livesAs at the balance sheet date, the Company has no intangible assets with uncertain useful lives.
4. Classification criteria for internal research phase and development phaseThe 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.
(19) Impairment of long-term assets
For long-term assets under the cost model such aslong-term equity investments, Investment property,
fixed assets, construction in progress, intangible assets with limited useful lives etc., theCompany shall perform impairment tests at the period end if there is clear indication ofimpairment. If the recoverable amounts of long-term assets are less than their carryingamounts, the carrying amounts of the assets shall be written down to their recoverableamounts. The write-downs are recognized as impairment losses and charged to current profitand loss. The recoverable amounts of long-term assets are the higher of their fair values lesscosts to sell and the present values of the future cash flows expected to be derived from theassets. The Company shall estimate its recoverable amount on an individual basis. Where it isdifficult to do so, it shall determine the recoverable amount of the group assets on the basis ofthe asset group to which the asset belongs. The term "group assets¡± refers to a minimum
combination of assets by which the cash flows could be generated independently
The goodwill 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. When apportioning the carryingvalue of the business reputation to the relevant asset groups or combinations of asset groups,it shall be apportioned on the basis of the proportion of the fair value of each asset group orcombination of asset groups to the total fair value of the relevant asset groups or combinationsof asset gr oups. Where it is difficult to measure the fair valu e reliably, it shall be apportionedon the basis of the proportion of the carrying value of each asset group or combination ofasset groups to the total carrying value of the relevant asset groups or combinations of assetgroups.
When making an impairment test on the relevant asset groups or combination of asset groupscontaining bus iness 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 thanthe carrying value thereof, it shall recognize the impairment loss of the business reputation.
Impairment losses on long-term assets shall not be reversed in subsequent accounting periodsonce recognized.
(20) 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
(21) Employee benefits
1. Accounting treatment for short employee benefitThe Company shall recognized, in the accounting period in which an employee providesservice, actually occurred short-term employee benefits as a liability, with a correspondingcharge to the profit or loss or cost of an asset for the current period.
Payments made by an enterprise of social security contributions for employees, payments ofhousing funds, and union running costs employee education costs provided in accordancewith relevant requirements shall, in the accounting period in which employees provideservices, be calculated according to prescribed bases and percentages in determining theamount of employee benefits.
The employee benefits which are non-monetary benefits shall be measured at fair value if itcould be measured reliably.
3. Accounting treatment of post-employment benefits
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 thelocal government regulations. The amount shall be calculated according to local prescribedbases and percentages in determining the amount of employee benefits, with a correspondingcharge to the profit or loss or cost of an asset for the current period.
4. Accounting treatment of termination benefitsThe 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 oftermination benefits.
(22) Estimated liabilities
1. Recognition criteria of estimated liabilitiesThe obligation pertinent to a Contingency (litigation, guarantees, loss contract, restructuring)shall be recognized as an estimated liability when the following conditions are satisfiedsimultaneously:
(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 ofperformance of the obligation; and(3) The amount of the obligation can be measured in a reliable way.
2. Measurement of estimated liabilitiesThe 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.
The best estimate shall be conducted in accordance with the following situations, respectively:
If there is a continuous range for the necessary expenses and if all the outcomes within thisrange are equally likely to occur, the best estimate shall be determined in accordance with theaverage estimate within the range, that is, the average of the upper and lower limit.
If there is not a sequent range for the necessary expenses and if the outcomes within this 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 mostlikely outcome.(2) If the Contingencies concern two or more items, the best estimate shall be calculated anddetermined 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 beseparately recognized as an asset only when it is virtually certain that the reimbursement willbe obtained. The amount recognized for the reimbursement shall not exceed the book value ofthe estimated debts.
(23) Revenue
(1) The general principle of revenue recognition and measurementThe Company has transferred to the buyer the significant risks and rewards of ownership ofthe goods; and r etained neither continuin g managerial involvement which usually relate s tothe ownership nor exerts effective control over the goods sold. The relevant amount ofrevenue can be measured reliably, the economic benefits related to the transaction will flowinto the enterprise; and the relevant costs incurred or to be incurred can be measured reliably.Revenue from the sale of goods may be recognized.(2) The specific criteria of revenue recognition and measurement
The Company mainly sells steel and other products. Domestic sales revenue is recognizedwhen the following conditions are met: The Company has delivered the products to buyerunder the contract, amount of product sales revenue is determinable, received or thecertificate of the right to rece ive the a mount has been obtained and the relevant economicbenefits are likely to flow into the entity, and related costs can be measured reliably.Export sales revenue is recognized when the following conditions are met: the Company hasundertaken the Customs declaration and delivery has occurred under the contract, bill oflading has been obtained, amount of product sales revenue is determinable, received or thecertificate of the right to receive the amount has been obtained and the relevant economicbenefits are likely to flow into the entity, and related costs can be measured reliably.(3) Recognition Criteria for the Revenue from alienating of Assets Use RightsWhen it is probable that economic benefits in relation to the transaction will flow into theenterprise; and the amount of revenues can be measured reliably. The Company shallascertain the amount of revenues from the transfer of Assets Use Right based on thefollowing circumstances respectively:
(1) Interest income shall be calculated based on the duration of which the Company's cashis used by others and the actual interest rate; or(2) Royalty revenue shall be calculated based on the period and method of charging asstipulated in the relevant contract or agreement.
(24) Government Subsidies
A gov ernment 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.
The criteria and accounting treatment of government subsidies pertinent to assets.
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.
Recognition
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 over the periodsduring the useful lives of the relevant assets.
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 criteria and accounting treatment of government subsidies pertinent to income.
The government subsidy related to income refers to the government subsidy other thanthe government subsidy related to the asset.
Recognition
The government subsidies related to incomes to compensate future expenses, shall berecognized as deferred income and transferred to current profit or loss. Governmentsubsidies to compensate expenses or losses already incurred shall be recognized incurrent profit and loss.
Accounting treatment
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 incurrent profit and loss (Subsidies related to daily activities should be recorded in OtherIncome. Subsidies unrelated to daily activities should be recorded in Non-operatingIncome) or deduct relevant cost or loss.
(25) Deferred tax assets and deferred tax liabilities
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 mostlikely to obtain and which can be deducted from the deductible temporary difference.
As for any deductible loss or tax deduction that can be carried forward to the next year, thecorresponding deferred income tax assets shall be determined to the extent that the amount of
future taxable income to be offset by the deductible loss or tax deduction to be likelyobtained.
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 go odwill; initial recognition of an asset or liability in a tran saction orevent that is not a business combination and at the time of the transaction, affects neitheraccounting profit nor taxable profit (tax loss).
An entity shall offset deferred tax assets and deferred tax liabilities if, and only if: (a) theentity has a leg ally enforceab le right to set o ff current tax asse ts against cur rent tax liabilities;and (b) the deferred tax assets and the deferred tax liabilities relate to income taxes levied bythe same taxation authority on either:(i) the same taxable en tity; or (ii) different taxableentities which intend either to settle current tax liabilities and ass ets on a net basis, or torealize the assets and settle the liabilities simultaneously, in each future period in whichsignificant amounts of deferred tax liabilities or assets are expected to be settled orrecovered.
(26) Leases
1. Accounting treatment of operating lease(1) The rents paid for operating leases shall be recorded in the profits and losses of thecurrent period by using the straight-line method over each period of the lease term. Theinitial direct costs paid by the Company shall be recorded into the profits and losses of thecurrent period
If the lessor has shouldered any expense related to the lease which shall have been borne bythe Company, the Company shall deduct these expenses from the total rental expense and theremaining rental expense shall be allocated to each period during the lease term
(2) The rents collected from operating leases shall be recorded in the profits and losses of thecurrent period by using the straight-line method over each period of the whole lease term inwhich free lease period is included . The initial direct costs paid by the Company shall be
recorded into the profits and losses of the current period. The initial direct costs shall becapitalized if it is material, and be allocated to each period as per the basis for rental revenuerecognition.If the Company has shouldered any expense related to the lease which shall have been borneby the lessee, the company shall deduct these expenses from the total rental revenue and theremaining rental revenue shall be allocated to each period during the lease term.
2. Accounting treatment of financial leasing
(1) Leased in asset
On the lease beginning date, a lessee shall record the lower one of the fair value of the leasedasset and the present value of the minimum lease payments on the lease beginning date asthe initial book value, recognize the amount of the minimum lease payments as the initialbook value of long-term account payable, and treat the balance between the recorded amountof the leased asset and the long-term account payable as unrecognized financing charges.
The lessee shall adopt the effective interest rate method to calculate and recognize thefinancing charge in the current period. The unrecognized financing charge shall beamortized to each period during the lease term. Initial direct c osts incurred b y the Companyshall be recorded in the value of the leased asset.
(2) Leased out asset
On the lease beginning date, a lessee shall record the balance between the sum of financelease receivables plus unguaranteed residual value and the present value of the sum asunrealized financing income, and record rental as revenue when received for each period inthe futureInitial direct costs incurred by the Company related to the leased asset shall be recorded inthe initial measurement of the finance lease receivables, and reduce the amount of revenuerecognized during the lease term.
(27) Discontinuing oper at ion
Discontinuing operation is a component that has been disposed or classified as held for saleby the Company, and can be distinguished separately in operating and preparing financialstatements when one of the following conditions is met:
(1) The component stands for an independent main business or a major business area;
(2) The component is a part of disposal plan of an independent main business or a major
business area;(3) The component is a subsidiary which is acquired only for sale again.
(28) Change of significant accounting policy and accounting estimate1. Change of major accounting policy during this reporting period
Ministry of Finance issued ¡°Notice of the Ministry of Finance on the revision of theformat for the issuance of the financial statements of the general enterprise for the year2018¡± ( Cai Kuai 2018 No.15) on 15 June 2018, which revised the format of financialstatement for the g eneral enterprise. The major impact of the implementation of theabove three regulations are as follows:
The contents and reasons
The ite ms affected and the amount
(1)
of accounting policy changes |
In Statement of Financial Position, "Notes |
receivable" and "Accounts receivable" are combined
payable an d accoun ts p ayable"; "I nt erest r eceivabl e"
and "Dividends receivable" are incorporated into "Other receivables"; "Interest payable" and |
"Dividends payable" are incorporated into "Other
incorporated into "fixed as sets", "Project materials"
is incorporated into "Construction in progress"; "Special accounts payable" is incorporated into |
"Long-
adjus ted accordingly.
"Notes receiv able" and "Accounts receivab le" arecombined and shown as "Notes receivable andaccounts receivable", amount for current year is
term payables". The comparative data is | 4,219,628,324.83, amount for previous year is |
4,575,031,627.26;"Notes payable" and "Accounts
current year is 15
,535,234,825.67, amount for previous year is 15,392,258,341.04; ¡°Other |
receivables¡± increased 11,608,705.43 in currentyear, and the increasing amount for previous year
increased 9,658,681.99 in current year, and the
increasing amount for previous year is 84,139,288.02; ¡°Construction in progress¡± |
increased 4,900,986.11 in current year, and the
(2)
increasing amount for previous year is 4,558,919.60. | |
A new item "Research and development expenses" is added to the Statement of | "General and administrative expenses" is decreased by 6,399,884.30 in current year and |
"Interest income" are added to
the Statement of |
Comprehensive Income under financial expenses.
The compar ative data is adjusted accordingly. | 8,208,922.25 in previous year, which is |
reclassified to "
expenses ";The amount of ¡°interest expenses¡± for
this year is 1,278,508,985.59, amount for previous year is 1,023,936,982.91; ¡°interest |
incomes¡± in this year is 200,356,927.95, amountfor previous year is 142,752,764.37.
2. Change of accounting estimate during this reporting periodNone.
4. Taxes(1) Major type of taxes and corresponding tax rates
Tax Taxation Method Tax RateValue-added Tax(VAT)
tax laws after subtracting the deductible
input VAT of the period | 6% |
£¬
¡¢
16% |
£¨
to December in 2018£©
11%¡¢17%£¨Jan to
April in 2018£©City maintenance and construction tax
May | |
Based on VAT and business tax actually paid |
7%, 5%Educational surcharges
3%, 2%Enterprise income tax Based on taxable profit 25%
5. Notes to the consolidated financial statements
(1) Cash at bank and on hand
Items Ending balance Beginning balanceCash on hand
Based on VAT and business tax actuallypaid4,839.95
4,839.95 | 20,871.51 |
Cash at bank
11,752,543,782.02 | 12,317,555,907.42 |
Other monetary funds
4,814,923,133.80 | 4,720,136,631.56 |
Total16,567,471,755.77 17,037,713,410.49Total amount deposited abroad
The details of restricted monetary funds resulted from guarantee or pledge or freezeaccounts ar e as follo ws:
Items Ending balance Beginning balanceMargin for b ank acceptance bill
3,794,647,133.80 | 3,147,582,187.96 |
Margin for letter of credit105,000,000.00
915,276,000.00 1,572,554,443.60Total
4,814,923,133.80 4,720,136,631.56
(2) Notes receivable and Accounts receivable
Items Ending balance Beginning balanceNotes recei vable3,580,145,843.38 3,846,433,700.87Accounts receivable639,482,481.45 728,597,926.39Total4,219,628,324.83 4,575,031,627.26
1. Notes receivable(1) Notes receivable disclosed by category
Items Ending balance Beginning balanceBank accept ance bill
Time deposit or notice depositfor guaran tee3,540,317,759.10
3,540,317,759.10 | 3,622,042,309.91 |
Commercial acceptance bill
39,828,084.28 | 224,391,390.96 |
Total
3,580,145,843.38 | 3,846,433,700.87 |
(2) The pledged acceptance bill at the year-end
Items The pledged acceptance bill at the year-endBank accept ance bill124,096,196.40Total
124,096,196.40
(3) The amount of Notes receivable endorsed over but not yet matured at the year-end.
Items Derecognized ending balance Unrecognized ending balanceBank accept ance bill10,357,325,978.51Total10,357,325,978.51
(4) No Notes receivable has been transferred into accounts receivable due to inability of
drawer to meet acceptance bill at the year-end.2. Accounts receivable
(1) Accounts receivable disclosed by category
Items
Ending balanceCarrying amount Provision for bad debts
Book valueAmount
Amount
Percentage (%) | Bad debts ratio (%) |
and tested for impairment
individually |
47,762,337.18 5.82 47,762,337.18 100.00
773,432,447.14 94.18 133,949,965.69 17.32 639,482,481.45
portfolio |
Other insignificant items |
but tested for impairment
Total821,194,784.32 100.00 181,712,302.87 639,482,481.45
Items
Beginning balanceCarrying amount Provision for bad debts
Book valueAmount
individually
Percentage
(%)
Amount
Percentage (%) | Bad debts ratio (%) | |||
Individually significant and |
tested for impairment
47,762,337.18 4.86 47,762,337.18 100.00
individually |
Accounts receivable tested for impairment by portfolio |
934,445,274.36 95.14 205,847,347.97 22.03 728,597,926.39
but tested for impairment
individually |
Total982,207,611.54 100.00 253,609,685.15 728,597,926.39
Accounts receivables individually significant and tested for impairment individually
Company
Carrying amount
Provision for bad
Ending balance | ||
debts |
Bad debts
ReasonBenxi Nan fen XinheMetallur gi cal Furnace
ratio (%) | ||
Material Co., Ltd |
47,762,337.18 47,762,337.18 100.00 Halt operation
47,762,337.18 47,762,337.18
Accounts receivables tested for impairment by portfolio using the method of Aging analysis
Items
Ending balanceCarrying amount Provision for bad debts Bad debts ratio (%)Within 1 year (inclusive)563,409,367.971-2 years (in clusive)56,752,847.90 2,837,642.39 5.002-3 years (in clusive)27,697,384.96 5,539,476.99 20.00Over 3 years125,572,846.31 125,572,846.31 100.00Total773,432,447.14 133,949,965.69
(2) Information of provision, reversal or recovery of bad debts of current period.The provision of bad debts of current period is RMB 71,897,382.28.
(3) No accounts receivable has been written off this year.
£¨4£©Top five debtors at the year-end
Company
Ending balanceAmount
Percentage of total Accounts receivabl e (%) | Provision for bad d e bts |
The first317,449,873.52 38.66The second129,063,024.28 15.72The third91,185,441.03 11.10 6,792,099.51The fourth47,762,337.18 5.82 47,762,337.18The fifth39,608,495.91 4.82Total625,069,171.92 76.12 54,554,436.69
£¨3£©Prepayments
1. Prepayments disclosed by aging
Aging
Ending balance Beginning balanceAmount Percentage (%) Amount Percentage (%)Within 1 year (inclusive)
1,318,136,339.11 99.74 1,259,327,577.20 98.331-2 years (in clusive)
2,494,489.34 0.19 13,457,173.07 1.052-3 years (in clusive)
901,900.77 0.07 1,669,541.26 0.13Over 3 years
4,785.56 0.00 6,234,802.80 0.49Total1,321,537,514.78 100.00 1,280,689,094.33 100.00
Notes: As of December 31, 2018, there were no outstanding prepayments of over 1 year.
2. Top five prepaid companies at the year-end
Name of the company Amount Percentage (%)The First
713,124,266.80 53.96The Second
119,250,171.60 9.02The Third
77,376,851.40 5.86The Fourth
70,879,684.67 5.36The Fifth
35,679,699.53 2.70Total1,016,310,674.00 76.90
£¨4£©Other receivables
Items Ending balance Beginning balanceInterest receivables
11,608,705.43 18,448,520.50Dividen d receivables
Other receivables191,155,259.55 290,376,985.34Total202,763,964.98 308,825,505.84
1£®Interest receivable
£¨1£©Interest receivable disclosed by category
Items Ending balance Beginning balanceDeposit i nterest
11,608,705.43 18,448,520.50
Total
11,608,705.43 18,448,520.50
2£®Other receivables
(1). Other receivables disclosed by category
Items
Ending balanceCarrying amount Provision for bad debts
Book valueAmount
Amount
Percentage (%) | Bad debts ratio (%) |
Individually significant and testedfor impairment individually
254,359,387.50 99.32
Accounts receivable tested for impairment by portfolio |
64,944,127.95
25.53 189,415,259.55
Other insignificant items but tested for impairment individually |
1,740,000.00 0.68
1,740,000.00Total256,099,387.50100.00
64,944,127.95
191,155,259.55
Items
Beginning balanceCarrying amount Provision for bad debts
Book valueAmount
Amount
Percentage (%) | Bad debts ratio (%) | |||
Individually significant and tested for impairment individually |
Accounts receivable tested for impairment by portfolio |
359,690,439.99 99.52 71,053,454.65 19.75 288,636,985.34
1,740,000.00 0.48 1,740,000.00Total
361,430,439.99 100.00 71,053,454.65 290,376,985.34
Other receivables tested for impairment by portfolio using the method of Aging analysis
Items
Ending balance
Other insignificant items buttested for impairment individually
Carryingamount
Provision for bad debts Bad debts ratio (%)Within 1 year (inclusive)156,340,847.481-2 years (in clusive)4,278,962.95 213,948.15 5.002-3 years (in clusive)36,261,746.59 7,252,349.32 20.00Over 3 years57,477,830.48 57,477,830.48 100.00Total
254,359,387.50 64,944,127.95
(2). Information of provision, reversal or recovery of bad debts of current period.
The provision of bad debts of current period is RMB 6,109,326.70.
(3). No other receivables have been written off this year.(4). Other receivables disclosed by nature
Nature Ending balance Beginning balanceAccounts
203,695,979.62345,146,993.73Margin and deposit
2,238,972.263,045,619.00Others
50,164,435.6213,237,827.26Total256,099,387.50361,430,439.99
(5). Top five debtors at the year-end
Company
Nature or
content
Amount Aging
total other
receivables (%) | Provision |
for bad
The First
Accounts7,718,029.34
debts | ||
within 1 year 3.01
The SecondAccounts6,224,516.81
within 1 year 2.43
The ThirdAccounts4,491,968.59
within 1 year 1.75
The FourthAccounts 4,341,257.18
2-3 years 1.70
868,251.44The Fifth
Accounts3,457,108.78
within 1 year 1.35
Total
26,232,880.7010.24
868,251.44
(5) Inventories
1. Inventories disclosed by category
Items
Ending bala nce Beginning balanceCarryin g am ount Impairment Book value Carrying amount Impairment Book value
Raw material
5,509,216,101.37
and main mat er ial |
26,986,533.69 5,482,229,567.68 5,612,450,076.70 4,894,918.76 5,607,555,157.94Work in process andself-madesemi-finished
1,365,365,191.33
product |
29,012,489.61 1,336,352,701.72 1,689,682,178.82 23,431,222.63 1,666,250,956.19Finished products 3,888,124,260.41
28,959,417.41 3,859,164,843.00 3,964,781,474.74 28,689,492.71 3,936,091,982.03
Total
10,762,705,553.11
84,958,440.71 10,677,747,112.40 11,266,913,730.26 57,015,634.10 11,209,898,096.16
2. Impairment of inventory
Category
Beginning
balance
Increase Decrease
EndingbalanceProvision Others Write-back Others
Raw material
or write-off | ||
and main mat er ial |
4,894,918.76 22,091,614.93 26,986,533.69
self-made semi -finished
product |
23,431,222.63 29,012,489.61 23,431,222.63 29,012,489.61Finished products28,689,492.7128,959,417.29
28,689,492.5928,959,417.41Total57,015,634.1080,063,521.83
52,120,715.2284,958,440.71
(6) Other current assets
(7) Available-for-sale financial assets
1. Detail s of available-for-sale financial assets
Items Ending balance Beginning balancePrepai d enterprise income tax189,634,393.98 182,938,934.20Input tax to be deducted102,485,377.15 120,383,193.59Bank Short-Term Financial Products506,000,000.00Total292,119,771.13 809,322,127.79
Items
Ending balance Beginning balanceCarrying amount Impairment Book value
Impairment Book value
Carrying amount | ||||
Available-for-sale debt instruments |
1,056,239,522.00 14,414,693.00
Available-for-sale equity instruments |
1,041,824,829.00 18,303,673.00
14,414,693.00
3,888,980.00Including:
Measured at fair value |
Measured at cost1,056,239,522.0014,414,693.00
1,041,824,829.00 18,303,673.00
14,414,693.00
3,888,980.00Total1,056,239,522.0014,414,693.00
1,041,824,829.00 18,303,673.00
14,414,693.00
3,888,980.00
2. Available-for-sale financial assets measured at cost
Company invested
in
Carrying amount Impairment
ge ofshare i nthe firm
(%) |
Cas h dividendof the current
periodBeginning Balance Increase Decrease Ending Balance
Beginning
Balance
Increase Decrease
EndingBalance
Industrial Co., Ltd.
3,888,980.00 3,888,980.00 20.10
Suzhou Bengang |
China Steel |
Shan ghai SteelProcessing Co., Ltd.
14,414,693.00 14,414,693.00 14,414,693.00 14,414,693.00 15.00
Steel Group Co.,Ltd.
1,037,735,849.00 1,037,735,849.00 10.00
Dongbei Special |
Guangzhou Benpu |
Auto Board SalesCo., Ltd.
200,000.00 200,000.00 10.00Total18,303,673.00 1,037,935,849.00 1,056,239,522.00 14,414,693.00 14,414,693.00
Other instructions: Dongbei Special Steel Group Co., Ltd. is a new joint stock company during the current period. The company¡¯s shareholding ratio is 10%.
Guangzhou Benpu Auto Board Sales Co., Ltd. is a new joint stock company during the current period. The company¡¯s shareholding ratio is 10%.
(8) Long-term equity investment
Investees
Beginning
Balance
EndingBalance
AmountProvision
TotalImpairment
Increase/decrease | ||
TotalImpairment Ending
BalanceAddInvestment
ReduceInvestme
nt
Investment Gains
and LossesRecognized under
AdjustmentComprehensive Income
OtherEquityChanges
Declaration of
the Equity Method | Cash Dividends |
or P rofit
Others
£®
Joint Venture | |||||||||||
Subtotal | |||||||||||
2 |
£®
Associated Enterprise | |||||||||||
Zhejiang Bengang Jingrui |
Steel P r ocessing Co., Ltd..
2,726,009.03 171,488.75 -441,816.23 2,455,681.55
Subtotal | 2,726,009.03 | 171,488.75 | -441,816.23 | 2,455,681.55 | |||||||
Total | 2,726,009.03 | 171,488.75 | -441,816.23 | 2,455,681.55 |
(9) Fixed assets
1. Fixed assets and Fixed assets liquidation incorporated
Items | Ending Balance | Beginning Balance |
Fixed assets | 23,924,504,539.97 | 23,852,067,166.10 |
Disposal of fixed assets | ||
Total | 23,924,504,539.97 | 23,852,067,166.10 |
2. Details of fixed assets
Items Buildings Machinery
equi pment and
others |
Total
1. Total original value |
Beginning balance 12,311,587,761.99 41,626,541,563.48 902,411,923.49 54,840,541,248.96
Increase
in current period
Increase | 31,819,012.72 | 2,578,087,213.14 | 1,144,674.00 | 2,611,050,899.86 |
Includ i ng : Pur c ha s e | 17,031,921.96 | 1,039,027.45 | 18,070,949.41 | |
Transferred |
from construction inprogress
31,819,012.72 | 2,561,055,291.18 | 105,646.55 | 2,592,979,950.45 | |
Merging | ||||
Others | ||||
Decrease in current |
period
168,915,008.85 | 652,892,800.35 | 1,028,820.37 | 822,836,629.57 | |
Including: Disposal | 168,915,008.85 | 652,892,800.35 | 1,028,820.37 | 822,836,629.57 |
Others |
Ending balance
12,174,491,765.86 | 43,551,735,976.27 | 902,527,777.12 | 56,628,755,519.25 | |
2.Total accumulated |
depreciation
Beginning balance
5,276,168,794.08 | 25,159,715,530.00 | 541,830,618.28 | 30,977,714,942.36 | |
Increase |
in current period
366,707,201.07 | 1,959,703,592.18 | 19,762,685.28 | 2,346,173,478.53 | |
Including: Provision | 366,707,201.07 | 1,959,703,592.18 | 19,762,685.28 | 2,346,173,478.53 |
Others | ||||
Decrease in current |
period
66,848,981.79 | 593,365,302.39 | 997,955.87 | 661,212,240.05 | |
Including: Disposal | 66,848,981.79 | 593,365,302.39 | 997,955.87 | 661,212,240.05 |
Others |
Ending balance 5,576,027,013.36 26,526,053,819.79 560,595,347.69
32,662,676,180.84 | ||||
3. Total impairment |
Beginning balance
8,208,087.85 | 2,551,052.65 | 10,759,140.50 | ||
Increase |
in current period
35,014,689.33 | 75,666.43 | 35,090,355.76 | ||
Including: Provision | 35,014,689.33 | 75,666.43 | 35,090,355.76 |
Items Buildings Machinery
equi pment and
others |
Total
Others | ||||
Decrease in current period | 4,274,697.82 | 4,274,697.82 | ||
Including: Disposal | 4,274,697.82 | 4,274,697.82 | ||
Others |
Ending balance
38,948,079.36 | 2,626,719.08 | 41,574,798.44 | ||
4. Total net book value |
of Fixed assets
Ending book value 6,559,516,673.14 17,023,055,437.40 341,932,429.43
Beginning book value 7,027,210,880.06 16,464,274,980.83 360,581,305.21
23,924,504,539.97 |
23,852,067,166.10 |
3. Fixed assets idled temporarily
Items Original value
Accumulated
Impairment Book value Notes
depreciationBuildings
Buildings | 201,165,792.22 | 116,333,985.36 | 35,014,689.33 | 49,817,117.53 | |
Machinery | 1,224,688.89 | 1,149,022.46 | 75,666.43 | ||
Total | 202,390,481.11 | 117,483,007.82 | 35,090,355.76 | 49,817,117.53 |
4. Fixed assets leased out by operating lease
5. Fixed assets without property rights certificates at the year-end
Items Book value Reason
Buildings1,016,286,114.63To be handled
£¨10£©Construction in progress
1. Construction in progress and Construction materials
Items Book valueBuildings14,786,772.84Machinery142,432.58`Total14,929,205.42
Items | Ending balance | Beginning balance |
Construction in progress | 831,693,471.71 | 2,391,584,410.46 |
Project materials | 4,900,986.11 | 4,558,919.60 |
Total | 836,594,457.82 | 2,396,143,330.06 |
2. Details of construction in progress
Items
Ending balance | Beginning balance |
Carrying amount
Totalimpairment
Total net bookvalue of Fixed
Carrying amount
Totalimpairment
Total net bookvalue of Fixed assetsHigh Str ength Cold Rolling
assets | ||
Steel Renovation Project |
1,187,165,940.86 1,187,165,940.86
The Third Cold Rolling WorkHot-Dip Gal v anizing
611,760,000.00 611,760,000.00
Energy Saving AndEnvironmental ProtectionReconstruction Of TheConv e rter System And 180Ton Dephophorization
Production Line Project |
Converter Project |
170,359,741.31 170,359,741.31
Ultrathin Pickling Line
32,745,791.58 32,745,791.58
Information System
Modification |
Engineering |
32,708,961.76 32,708,961.76
Modifying and Upgrading ofSystem Equipment such as
27,289,578.22 27,289,578.22
The 360 Square Meter
Hot Blast Furnace. |
Sintering Machine |
39,870,921.39 39,870,921.39 26,592,065.27 26,592,065.27
Automobile BoardEngineering Laboratory
20,289,005.83 20,289,005.83
Items
Ending balance | Beginning balance |
Carrying amount
Totalimpairment
Total net bookvalue of Fixed
Carrying amount
Totalimpairment
Total net bookvalue of Fixed assetsEnergy Control Ce nter
assets | ||
Project |
16,068,616.55 16,068,616.55 8,617,499.91 8,617,499.91
Renovation Project of Power
67,436,716.24 67,436,716.24
Energy Saving AndEnvironmental ProtectionReconstruction Of No.1
Plant Three - Power Plant. |
Converter Project |
81,652,336.52 81,652,336.52
Modifying and Upgrading ofNo.2 Casting machin e in Hot
67,751,518.71 67,751,518.71
steel plant | ||||||
New No.2 blast furnace | 79,221,161.00 | 79,221,161.00 | 5,786,289.03 | 5,786,289.03 |
Power plant 4-5# coke oven
27,607,246.17 27,607,246.17 27,567,246.17 27,567,246.17
dry quenching waste heat steam utilization project |
1700 hot rolling perfect transformation |
25,521,831.89 25,521,831.89
CCPP
24,961,721.54 24,961,721.54 1,006,256.89 1,006,256.89
Cokin g p lant gas d eamina tion
power generation project |
and sulfur ammonia maintenance project |
34,300,566.05 34,300,566.05 4,626,059.46 4,626,059.46
44,777,158.00 44,777,158.00 40,641,505.00 40,641,505.00
5#-
360 square meter sintering machine waste heat utilization |
7# Oxygen Generator Nitrogen Increase Energy Saving Reconstruction |
21,715,145.18 21,715,145.18 239,658.18 239,658.18
Dry dedusting of No. 7 blast
22,973,276.80 22,973,276.80 17,669,283.41 17,669,283.41
Items
Ending balance | Beginning balance |
Carrying amount
Totalimpairment
Total net bookvalue of Fixed
Carrying amount
Totalimpairment
Total net bookvalue of Fixed assetsreform
assets | ||
of TRT power generation | ||
No. 6 blast furnace environmental protection overhaul project |
22,895,777.14 22,895,777.14
Other | 254,939,478.53 | 254,939,478.53 | 176,519,527.58 | 176,519,527.58 | ||
Total | 831,693,471.71 | 831,693,471.71 | 2,391,584,410.46 | 2,391,584,410.46 |
Notes: During the reporting period, the company leased machinery and equipment fromLiaoning Hengyi Finance Leasing Co., Ltd. in the form of financial leasing. At the end of thereporting period, the long-term accounts payable amounted to RMB 13,686,705.92. Theequipment was presented in the construction in progress.
3. The change of major construction in progress
Project
Budget (In 10
Thousand
Yuan)
Beginning Balance Increase Transfer to FA
Otherdecre
ase
Ending balance
Input
ofBudge
t
Progress
(%)
Accumulated
amount ofcapitalized interest
Including:
capitalizedinterest ofcurrent period
Capitalizat
ion rate
Source of
fund
High Strength Cold RollingSteel Renovation Project
613,498.00 1,187,165,940.86 13,721,523.28 1,200,887,464.14
83.32 100.00 855,901,421.79
Self-raisedfund &
(%) | ||
Loan |
The Third Cold Rolling WorkHot-Dip Galvanizing
86,918.00 611,760,000.00 10,152,702.49 621,912,702.49
70.39 100.00
Self-raisedfundEnergy Saving AndEnvironmental ProtectionReconstruction Of TheConverter System And 180Ton Dephophorization
Production Line Project |
Converter Project |
177,864.40 170,359,741.31 19,217,862.76 189,577,604.07
86.84 100.00 127,847,567.31
Self-raisedfund &Loan
Renovation Project of Power | 59,399.00 | 67,436,716.24 | 67,436,716.24 | 79.08 | 90.00 | 34,827,795.34 | Self-raised |
Project
Budget (In 10
Thousand
Yuan)
Beginning Balance Increase Transfer to FA
Otherdecre
ase
Ending balance
Input
ofBudge
t
Progress
(%)
Accumulated
amount ofcapitalized interest
Including:
capitalizedinterest ofcurrent period
Capitalizat
ion rate
Source of
fund
Plant Three - Power Plant. fund &
(%) | ||
Loan |
Energy Saving AndEnvironmental ProtectionReconstruction Of No.1
21,800.00
81,652,336.52
81,652,336.52 37.46 45.00
Self-raisedfund
Modifying and Upgradingof No.2 Cas ting machine
Converter Project |
in Hot steel plant |
10,090.00
67,751,518.71
67,751,518.71 67.15 80.00
Self-raisedfund
New No.2 blast furnace 150,000.00 5,786,289.03 75,196,539.52 1,761,667.55
79,221,161.00 5.40 10.00
Self-raised
fund | ||||||||||||
Total | 1,975,071,971.20 | 335,129,199.52 | 2,014,139,438.25 | 296,061,732.47 | 1,018,576,784.44 |
4. Construction materials
Items
Ending balance | Beginning balance |
Impairment
Carrying amount | Book Value | Carrying amount |
Impairment
Book Value | ||
Construction materials |
4,900,986.11
4,900,986.11
4,558,919.60
4,558,919.60
Total 4,900,986.11
4,900,986.11
4,558,919.60
4,558,919.60
(11) Intangible assets
1. Details of intangible assets
Items Land use right Software Total1.Total of original value
Beginning balance
296,245,314.76 | 409,458.15 | 296,654,772.91 |
Increase
30,783,483.08 | 30,783,483.08 |
Includ i ng : Pur c ha s e
30,783,483.08 | 30,783,483.08 |
Decrease
99,056.60 | 99,056.60 |
Including: Disposal
99,056.60 | 99,056.60 |
Ending balance
327,028,797.84 | 310,401.55 | 327,339,199.39 |
2. Total of Accumulated Amortization
Beginning balance
42,688,601.63 | 81,289.80 |
42,769,891.43Increase
6,488,090.52 | 18,776.41 |
6,506,866.92Including: Provision
6,488,090.52 | 18,776.41 |
6,506,866.92Decrease
Including: Disposal
Ending balance
49,176,692.15 | 100,066.21 | 49,276,758.35 |
3. Total of Impairment
Beginning balance
Increase
Including: Provision
Decrease
Including: Disposal
Ending balance
4. Total of Net value
Ending book value
277,852,105.69 | 210,335.35 | 278,062,441.04 |
Beginning book value
253,556,713.13 | 328,168.35 | 253,884,881.48 |
2. Land use right without Certificate of Land use right at the year-endNone.
(12) Deferred tax asset and deferred tax liability
1. Undedicated deferred tax asset
Items
Ending balance Beginning balance
temporary
differences |
Deferred ta x asset
temporary
differences |
Deferred ta x assetImpairment
384,689,582.05 96,172,395.52 403,885,112.30 100,971,278.09
47,141,747.73 11,785,436.93 64,609,874.03 16,152,468.51
Internal unrealized profit |
Differences o f |
depreciation and
333,978,859.03 83,494,714.76 333,978,859.03
amortization |
83,494,714.76
Total
765,810,188.81 191,452,547.21 802,473,845.36 200,618,461.36
2. Unrecognized deferred tax assets
Items Ending balance Beginning balanceDeduct ible temporary differences
2,914,780.92
2,967,495.10Deduct ible losses1,112,718,371.262,105,332,277.56
Total
1,115,633,152.182,108,299,772.66
3. The deductible loss of unrecognized deferred tax assets due in the following period
Items Ending balance Beginning balance NotesYear 2018
4,904,050.21 |
Year 2019
Year 2020
1,085,478,921.77 | 2,086,284,665.11 |
Year 2021
11,436,302.83 | 12,562,922.76 |
Year 2022
1,000,766.72 | 1,580,639.48 |
Year 2023
14,802,379.94 |
Total | 1,112,718,371.26 | 2,105,332,277.56 |
(13) Other non-current assets
Items Ending balance Beginning balancePrepa id of l ong -term assets
76,341,975.35 | 1,067,334,823.12 |
Total
76,341,975.35 | 1,067,334,823.12 |
Notes: The prepaid long-term assets at the end of the period are prepaid equipment andconstruction funds.
£¨14£©Short-term loans
Items Ending balance Beginning balance
Pledge loans
48,262,375.85 | 1,470,000,000.00 |
Guaranteed loans
10,361,008,000.00 | 11,529,063,300.00 |
Credit loans
1,529,220,000.00 | 9,000,040,600.00 |
Total
11,938,490,375.85 | 21,999,103,900.00 |
£¨15£©Notes payable and Accounts payable
Items Ending balance Beginning balanceNotes payable
10,013,192,014.02 | 11,494,589,827.27 |
Accounts payable
5,522,042,811.65 | 3,897,668,513.77 |
Total
15,535,234,825.67 | 15,392,258,341.04 |
1. Notes payable
Items Ending balance Beginning balanceBank accept ance bill
8,738,192,014.02 | 8,782,045,779.95 |
Commercial acceptance bill
1,812,544,047.32 |
Domestic letter of credit
1,275,000,000.00 | 900,000,000.00 |
Total
10,013,192,014.02 | 11,494,589,827.27 |
2. Accounts payable
(1) Accounts payable disclosed by category
Items Ending balance Beginning balanceAccounts payable for goods
4,483,900,163.08 | 3,116,873,305.58 |
Accounts payable for labor
30,829,506.69 | 4,467,697.76 |
Accounts payable for project and equipment
424,097,390.68 | 254,691,333.73 |
Repair expense
579,971,383.23 | 519,035,208.21 |
Others
3,244,367.97 | 2,600,968.49 |
Total
5,522,042,811.65 | 3,897,668,513.77 |
(2) Significant accounts payable aging over one year
Items Ending balance ReasonLiaoning Shenjiao International Trade Co.,Ltd
Not yet settled
MCC Southern Engineering Technology Co., Ltd.
72,839,065.27 |
51,719,440.77 |
Not yet settled
Hang z hou Tianshen Materials Co., Ltd.
Not yet settled
MCC Jiaoli Engineering Technology Co., Ltd.
20,145,902.65 |
19,379,163.99 |
Not yet settled
MCC Jiao Nai (Dalian) Engineering TechnologyCo., Ltd.
Not yet settled
Engineering Co., Ltd.
Shenyang Railway Construction Bridge and Tunnel | 14,200,000.00 |
Not yet settled
Jixi Huasheng Fengyuan Coal Preparation Co., Ltd.
14,005,916.07 |
Not yet settled
Total
(16) Advance from customers
1. Advance from customers disclosed by category
Items Ending balance Beginning balanceAdvance for goods
3,331,854,098.42 3,308,567,598.05
Total3,331,854,098.42 3,308,567,598.05
2. Significant advance from customers aging over one year.
No.
(17) Employee benefits payable
1. Employee benefits payable
Items
209,704,788.75Beginningbalance
Increase Decrease
Beginning balance | Ending balance | |||
Short-term employee benefits | 39,492,800.76 | 1,726,008,899.53 | 1,717,677,231.87 | 47,824,468.42 |
Post-employ ment benefits |
- defined contribution
58,897.24 267,437,459.69 267,321,983.50 174,373.43Termination benefits
plans | ||||
4,170,839.58 | 1,558,773.13 | 2,262,222.84 | 3,467,389.87 | |
Other benefits due within one year |
Total
43,722,537.58 | 1,995,005,132.35 | 1,987,261,438.21 | 51,466,231.72 |
2. Short-term employee benefits
Items
Increase Decrease
Beginning balance | Ending balance | |||
(1) Salary, bonus, allowance and subsidy | 29,912,528.80 | 1,375,294,688.81 | 1,366,924,495.83 | 38,282,721.78 |
(2) Empl oyee welfare
86,798,751.54 | 86,798,751.54 |
(3) Social Insurance
663,146.90 | 128,959,120.81 | 128,969,867.35 | 652,400.36 | |
Including: Medical insurance | 94,504,100.98 | 94,502,502.83 | 1,598.15 | |
Work injury insurance | 663,146.90 | 34,430,079.77 | 34,442,424.46 | 650,802.21 |
Maternity insurance | 24,940.06 | 24,940.06 |
(4) Housing
6,850,655.00 | 104,854,984.00 | 104,850,950.00 | 6,854,689.00 | |
(5) Union funds and staff education fee | 2,066,470.06 | 30,101,354.37 | 30,133,167.15 | 2,034,657.28 |
Items
Increase Decrease
Beginning balance | Ending balance | |||
(6) Short-term compensated absences | ||||
(7) Short-term profit - sharing s cheme |
Total
39,492,800.76 | 1,726,008,899.53 | 1,717,677,231.87 | 47,824,468.42 |
3. Defined contribution plans
Items
Increase Decrease
Beginning balance | Ending balance |
Basic pension fund 57,445.11 260,888,485.09 260,877,591.38 68,338.82Unemployment insurance 1,452.13 6,548,974.60 6,444,392.12 106,034.61
Total 58,897.24 267,437,459.69 267,321,983.50 174,373.43
(18) Current tax liabilities
(19) Other payables
Items | Ending balance | Beginning balance |
Interest payables | 9,658,681.99 | 84,139,288.02 |
Dividends payables | ||
Other payab les | 852,852,496.97 | 576,989,932.31 |
Total | 862,511,178.96 | 661,129,220.33 |
1. Interests payable
Items Ending balance Beginning BalanceCorporate bond interests
70,109,821.13 |
Loan interests
9,658,681.99 | 14,029,466.89 |
Total
9,658,681.99 | 84,139,288.02 |
Items Ending balance Beginning balanceValue-added tax 442,980,368.02 44,433,347.78Corp or ate income tax 2,769,293.58 12,706,288.46City main tenance and construction tax 32,813,368.49 13,007,637.50House property tax 3,004,878.95 2,990,847.04Educational surcharges 23,450,632.11 9,382,026.01Environmental tax 7,340,495.80Others 3,393,332.73 5,286,981.71
Total 515,752,369.68 87,807,128.50
2. Other payables
(1) Other payables disclosed by nature
Items Ending balance Beginning BalanceDeposit
6,876,696.99 2,475,771.82Margin
129,911,043.84 145,686,888.01Accounts
568,285,473.68 349,363,687.04Others
147,779,282.46 79,463,585.44Total852,852,496.97 576,989,932.31
(2) Significant other payables ageing over one year
Name Ending balance ReasonBenxi Steel & Iron (Group) Co., L td.218,328,849.90Not yet settled
(20) Non-current liabilities due within one year
Items Ending balance Beginning balanceLong-term loans due within one year350,965,576.32 2,311,995,410.89Bond payables due within one year1,499,545,179.95Total
350,965,576.32 3,811,540,590.84
(21) Other current liabilities
Items | Ending balance | Beginning balance |
Pending output value-added tax | 27,979,093.21 |
Total | 27,979,093.21 |
(22) Long-term loans
Long-term loans di scl osed by category
Categories Ending balance Beginning balancePledged loansMort gage loanGuaranteed loans 3,931,317,094.16 2,267,263,140.28Credit loans 3,152,323,000.00 176,922,490.00
Total 7,083,640,094.16 2,444,185,630.28
(23) Long-term payables
Items | Ending balance | Beginning balance |
Long-term payables | 13,686,705.92 | |
Special payables | ||
Total | 13,686,705.92 |
1. Long-term payables
Items | Ending balance | Beginning balance |
Financi ng lease payments | 13,686,705.92 | |
Total | 13,686,705.92 |
(24) Deferred income
Items
Increase Decrease
Beginning balance | Ending balance |
Reason
372,785,000.00 2,799,300.00 86,085,297.03 289,499,002.97
Government subsidy |
Total 372,785,000.00 2,799,300.00 86,085,297.03 289,499,002.97
Projects of government subsidies:
Items
Beginning
balance
Increase
non-operating
income |
Otherdecrease
Ending balance
assets or
income |
MES Project Special Fund 3,440,000.00 1,720,000.00 1,720,000.00 AssetsIndust rial Enterprise Energy Management CenterConstr uc tion Demonstration Project
9,280,000.00 2,320,000.00 6,960,000.00 AssetsEnvir onment Pollution Renovation Project 7,240,000.00 3,620,000.00 3,620,000.00 AssetsEnvironment Renovation Project and Regional BasinEnvironment Protection Project
680,000.00 340,000.00 340,000.00 AssetsCold Rolling Steel High Strength Renovation Project 250,000,000.00 50,000,000.00 200,000,000.00 AssetsAutomobile High-class Electrol ytic Z inc Steel PlateProduc t ion Line Project
24,624,000.00 8,208,000.00 16,416,000.00 AssetsSintering Machine Resid ue Heat Usage and DesulfurizationProject
8,408,000.00 4,204,000.00 4,204,000.00 Assets7 130t Boilers Flue Gas Desulfurization Renovation Projectof Power Plant
24,000,000.00 4,800,000.00 19,200,000.00 AssetsTreatment and Sal t Extraction Project of DesulfurizationWaste Liquid of Coke Plant
100,000.00 100,000.00 AssetsOve r s ea s Advanced Technology Introduction Special Fund 9,768,000.00 2,884,000.00 6,884,000.00 AssetsAutomobile Steel Sheet Engineering Laboratory Project 1,000,000.00 1,000,000.00 AssetsThird-generation High Strength Steels for Automobile R&DProject
2,900,000.00 2,900,000.00 AssetsThe 360 Cubic Meter Sintering Machine Flue GasDesulfurization Renovation Project of Blast Furnace Plant
400,000.00 200,000.00 200,000.00 Assets
Items
Beginning
balance
Increase
non-operating
income |
Otherdecrease
Ending balance
assets or
income |
Environment Protection Project Spec ial Fund 2,320,000.00 1,160,000.00 1,160,000.00 AssetsAdvanced Treatment of Carbon Fiber Wastewater Project ofCoke Plant Dongfeng Area
9,500,000.00 9,500,000.00 AssetsDesulfurization and Denitration Projects for Coal-firedBoiler of Power Plant High-pressure Workshop
5,400,000.00 600,000.00 4,800,000.00 AssetsPower Plant No 3 workshop Heat and Power CogenerationRenov a t ion Pr oject
10,000,000.00 2,000,000.00 8,000,000.00 AssetsSintering Machine Energy Saving and EnvironmentalProt ection Project of Blast Furnace Plant
3,480,000.00 1,160,000.00 2,320,000.00 AssetsAir Quality Automatic Monitoring System 245,000.00 70,000.00 175,000.00 AssetsLiaoning artisan subsidies 280,000.00 179,997.03 100,002.97 IncomeXi Yuan Resources supervision Committee Compensation 414,300.00 414,300.00 IncomeCoal-fired boiler demolition subsidy 1,815,000.00 1,815,000.00 Income
Investment promotion tax incentive policy of Baoshan District | 290,000.00 | 290,000.00 |
IncomeTotal 372,785,000.00 2,799,300.00 86,085,297.03 289,499,002.97
(25) Share capital
Notes:
The company issued 739,371,532 shares of RMB common stock to investors in the current period, raising a totalof RMB 3,999,999,988.12. After deducting various issuance expenses, the net proceeds raised by the companywere RMB 3,967,735,837.24. Among the amount, 739,371,532 RMB is included in the share capital, and3,228,364,305.24 RMB is included in the capital reserve.
(26) Capital reserves
(27) Special Reserves
Items Beginning balance Increase Decrease Ending balanceSafety production cost 475,046.75 46,823,964.39 46,615,073.43 683,937.71
Total 475,046.75 46,823,964.39 46,615,073.43 683,937.71
(28) Surplus Reserves
Items
Increase Decrease
Beginning balance | Ending balance |
Statutory surplus reserves 961,105,529.85 961,105,529.85Discretionary surplus reserve
Total 961,105,529.85 961,105,529.85
(29) Undistributed Profits
Items 2018 2018
1,103,162,610.35 -496,947,619.42
Before adjustments: undistributed profits at last year-end |
Adjustments of the beginning distributed profits (increase + / decease -) |
1,103,162,610.35 -496,947,619.42
Items
Beginning
balance
Increase/decrease (+ , - )
EndingbalanceIssuing of new
share
After adjustments: undistributed profit at thisyear-beginningBonus
shares
Transferred |
from
reserves | Others |
SubtotalCapital shares
3,136,000,000.00 739,371,532.00
739,371,532.00 |
3,875,371,532.00
Items Beginning balance Increase Decrease Ending balance
8,998,928,073.23 3,228,364,305.24 12,227,292,378.47Other capital reserves 115,917,468.82 115,917,468.82
Total 9,114,845,542.05 3,228,364,305.24 12,343,209,847.29
Items 2018 2018Add: undistributed profit belonging to parent company 1,036,493,236.07 1,600,110,229.77Less: Statutory surplus reservesDiscretionary reservesGeneral risk reservesCommon shares dividend payable 193,768,576.60Common shares dividend transferred to paid-in capitalOthersEnding balance of undistributed profits 1,945,887,269.82 1,103,162,610.35
(30) Operating income and operating cost
Items
2018 2017Revenue Cost Revenue CostPrinci pa l bus iness 46,228,334,211.43 41,947,082,227.94 37,488,231,200.04 33,295,587,407.25Other business 3,953,535,510.11 3,296,652,976.37 3,019,624,643.68 2,382,392,763.48
Total 50,181,869,721.54 45,243,735,204.31 40,507,855,843.72 35,677,980,170.73
(31) Tax and surcharges
Items 2018 2017City main tenance and construction tax 125,302,026.98 72,133,939.73Educational surcharge 89,864,959.52 51,786,464.96Housing pr o perty tax 73,097,772.24 73,910,361.76Land use right tax 9,230,553.37 6,304,275.26Environmental tax 28,286,566.21Stamp duty and others 30,636,905.79 29,608,633.41
Total 356,418,784.11 233,743,675.12
(32) Selling and distribution expenses
Items 2018 2017Freight 891,366,784.34 871,160,348.90Port sur char ges 116,922,773.17 183,767,518.94Import and export agency fee 76,022,775.79 80,110,942.00Salary and benefits 23,868,787.71 24,212,842.39Others 19,855,677.18 16,620,229.40Package fee 6,967,672.28 8,422,692.29
Total 1,135,004,470.47 1,184,294,573.92
(33) General and administrative expenses
Items 2018 2017Salary and benefits 354,229,795.80 346,361,242.30Repair expense 338,321,930.18 236,344,347.42Sewage charges 55,538,587.00Land use right fee 54,691,428.60 54,691,428.60Depreciation 51,749,401.30 51,486,458.19Heating fee 30,017,619.41 25,014,536.75Water resources fee 18,264,847.73 18,329,900.73Others
69,066,114.83 | 56,885,415.96 |
Total 916,341,137.85 844,651,916.95
(34) Research and development expenses
Items 2018 2017Depreciat ion, materials and compensation, etc. 6,399,884.30 8,208,922.25
Total 6,399,884.30 8,208,922.25
(35) Financial expenses
Items 2018 2017Interest expenditure 1,278,508,985.59 1,023,936,982.91Less: Interest income 200,356,927.95 142,752,764.37Exchange l oss 288,851,132.98 -357,509,334.61Others 9,351,969.84 11,967,636.14
Total 1,376,355,160.46 535,642,520.07
(36) Assets impairment loss
Items 2018 2017Loss for bad debts -78,006,708.98 51,417,469.00Impairment of inventories 80,063,521.83 52,120,715.34Impairment of Fixed assets 35,090,355.76
Total 37,147,168.61 103,538,184.34
(37) Other income
Items 2018 2017
assets or
income |
MES PROJE CT SPECIAL FUND 1,720,000.00 1,720,000.00 Assets
800,000.00 Assets
Secon d Batch of National Cleaned Manufacturing Dem ons tr a t ion Pr oj e c t F u nd |
Indust rial Enterprise Energy Management Center Constr uc tion Demonstration Project |
2,320,000.00 2,320,000.00 AssetsEnvir onment Pollution Renovation Project 3,620,000.00 5,234,000.00 Assets
Items 2018 2017
assets or
income | ||
Envir onment Renovation Project and Regional Basin Environment Protection Project |
340,000.00 500,000.00 Assets
2,954,000.00 Assets
Energy-saving Techno lo gi cal Reform Fiscal Reward Project |
Cold Rolling Steel High Strength Renovation Project |
50,000,000.00 Assets
8,208,000.00 8,208,000.00 Assets
Automobile High-class Electrol ytic Z inc Steel Plate Production Line Project |
Sint ering Machine Residue Heat Usage and Desulfurization Project |
4,204,000.00 4,204,000.00 AssetsWastewater Treatment Plant Renovation Project 1,500,000.00 AssetsOverseas R&D Team Introduction Special Fund 4,000,000.00 Income
4,800,000.00 Assets
7 130t Boilers Flue Gas Desulfurization Renov a t ion Pr oject of Power Plant |
Treatment and Sal t Extraction Project of Desulfurization Waste Liquid of Coke Plant |
100,000.00 100,000.00
Assets
Ove rseas Adv anced Technology Introduction Special Fund |
2,884,000.00 2,884,000.00
Assets
The 360 Cubic Meter Sintering Machine Flue |
Gas Desulfurization Renovation Project of Blast
200,000.00 200,000.00
Assets
Environment Protection Project Spec ial Fund 1,160,000.00 1,160,000.00
Furnace Plant | ||
Assets | ||
Bengang Power plant high pressure workshop |
coal bur ni ng boiler desulfurization and
600,000.00 600,000.00
Assets
denitrification items |
Power Plant No 3 workshop Heat and Power Cogeneration Renovation Project |
2,000,000.00
Assets
1,160,000.00 1,160,000.00
Assets
Fund in Energy saving and environmental protection project in blast furnace plant |
Air quality automatic monitoring system 70,000.00 70,000.00
Assets | ||
Xiyuan s ource resource management committee compensation |
414,300.00 1,472,900.00 IncomeLiaoning artisan subsidies 179,997.03
Coal-fired boiler demolition subsidy 1,815,000.00
Income | ||
Income | ||
Investment promotion tax incentive policy of Baoshan district |
290,000.00
Total 86,085,297.03 39,086,900.00
(38) Income on investment
Items 2018 2017
IncomeIncome on disposal of long-term equity investment by equitymethod
171,488.75 758,403.40Income on bank short-term financial products 5,041,397.26 3,294,593.14
Total 5,212,886.01 4,052,996.54
(39) Assets disposal gains
Items 2018 2017
Income on disposal of long-term equity investment by equitymethod
The amount
recognized in
non-rec urring profit | ||
Disposal gain s or losses arising fro m disposal of fixed asset s not classified for sale |
213,401.13 4,280,684.29 213,401.13Total 213,401.13 4,280,684.29 213,401.13
(40) Non-operating income
Items
2018 2017
recognized in
non-rec urring profit |
Debt rest ructuring gain 4,725,936.17Fines and the penalty income 646,727.69Non-current assets scrapped gains 5,633,553.43 5,633,553.43Others 2,750,566.71 13,962,355.63 2,750,566.71
Total 8,384,120.14 19,335,019.49 8,384,120.14
(41) Non-operating expense
Items 2018 2017
recognized in
non-rec urring profit |
Non-cu r rent assets scrapped loss | 154,256,584.91 | 70,167,296.39 | 154,256,584.91 |
Donations | 1,419,374.81 | 1,419,374.81 | |
Others | 560,000.00 | 71,080.83 | 560,000.00 |
Total
156,235,959.72 | 70,238,377.22 | 156,235,959.72 |
(42) Income tax expense
1. Income tax expense
Items 2018 2017Income tax payable for the current year8,783,683.51 31,439,603.03Adjustment of deferred income tax9,165,914.15 275,482,792.68Total
17,949,597.66 306,922,395.71
2. Accounting profit and income tax expense adjustment process
Items 2018Total profit1,054,127,656.02Income tax e xpense calculate according to the official or applicable tax rate263,531,914.00Effect of different tax rat es applied by subsidiaries
Effect of adjustm ent of the i ncome tax expense of prior period
Effect of non-taxable income-42,872.19Effect of undeductible costs, expenses or losses386,292.21
-4,250,274.89Effect of use of deductible losses of unrecognized deferred tax asset of priorperiod
-245,382,980.62
Effect of use of deductible losses of unrecognized deferred tax asset of prior period |
Effect of deductible temporary differences or deductible losses of unrecognized deferred tax asset of current period |
3,707,519.15Income tax e xpenses
17,949,597.66
(43) Notes of statement of cash flows
1. Cash received related to other operating activities
Items 2018 2017Withdraw of current accounts, advance for another
46,433,149.15 144,739,613.06Interest income
207,196,743.02 124,145,399.94Special subsidy income
2,509,300.00 1,472,900.00Non-operating income
452,241.66 9,220,528.61Others
1,290,246.37 2,587,267.44Total257,881,680.20 282,165,709.05
2. Cash paid related to other operating activities
Items 2018 2017Current accounts, advance for another
94,760,382.17 | 311,562,827.07 |
Sales expenses
141,536,246.92 | 130,350,911.02 |
Administrative expenses
82,458,953.65 | 51,406,846.17 |
Bank charges
9,351,969.84 | 11,826,845.86 |
Others
31,253,473.75 | 550,762.96 |
Total
359,361,026.33 | 505,698,193.08 |
3. Cash received related to other financing activities
Items 2018 2017Margin for b ill, letter of guarantee and letter of credit641,108,215.57
Total
641,108,215.57
4. Cash paid related to other financing activities
Items 2018 2017Margin for bill, letter of guarantee and l etter of cr edit
64,667,876.81 | 4,070,073,176.21 |
Others
1,958,720.83 |
Total
66,626,597.64 | 4,070,073,176.21 |
(44) Supplementary details of statement of cash flows1. Supplementary details for statement of cash flows
Items 2018 20171. A reconciliation of net profit to cash flows from
Net profit 1,036,178,058.36 1,609,390,707.73Add: Asset impair ment losses 37,147,168.61 103,538,184.34Depreciat ion of fixed assets and so on 2,346,173,478.53 2,020,739,760.10Amortization of intangible assets 6,506,866.92 5,964,922.61Losses proceeds from disposal of PPE, intangible assets
operating activities:
and other long-term assets (Earnings marked¡°
£
¡±) |
213,401.13 -4,280,684.29
Items 2018 2017
£
¡±) |
148,623,031.48 70,167,296.39Financial expenses (Earnings marked¡°£¡±)1,771,705,297.79 666,427,648.30Investment losses (Earnings marked¡°£¡±)-5,212,886.01 -4,052,996.54Deferred tax assets reduction (Addition marked¡°£¡±)9,165,914.15 275,482,792.68
£
¡±) |
Reduction of inventory (Addition marked¡°£¡±)504,208,177.15 -1,421,613,785.37
£
¡±) |
491,783,316.75 -3,227,142,290.68Operati ng pay able items increase (Less marked"£")-2,726,553,982.93 2,649,621,937.24Net cash flow s generated from operating activities 3,619,937,841.93 2,744,243,492.51
Liabilities transferred to capitalConvertible bonds due within one yearFixed assets fi nanced by leasing3. The net in cr eas e in cash and cash equivalents:
Ending balance of cash 11,752,548,621.97 12,317,576,778.93Less: Be ginning balance of cash 12,317,576,778.93 12,324,639,659.07Add: Ending balance of cash equivalentsLess: O pening balance of cash equivalentsThe net increase in cash and cash equivalents -565,028,156.96 -7,062,880.14
2. The structure of cash and cash equivalents
Items Ending balance Beginning balance1. Cash
2. Payments of investing and financing activities notinvolving cash:
11,752,548,621.97
11,752,548,621.97 | 12,317,576,778.93 |
Includ i ng : Cas h on ha nd
4,839.95 | 20,871.51 |
Bank deposits available on demand
11,752,543,782.02 | 12,317,555,907.42 |
Other monetary funds available on demand
Central bank deposits available on demandBalances with other financial institutionsLoans to other financial institutions2. Cash equivalentsIncluding: Investment of securities due within 3 months3. Ending balance of cash and cash equivalents
11,752,548,621.97 | 12,317,576,778.93 | |
Including: Cash and cash equivalents limited to use by the parent company of other subsidiary in the group |
(45) Assets of which ownership or right to use are restricted
Items Ending balance ReasonCash at bank and on hand 4,814,923,133.80 Deposit for notes and letter of credit
Items Ending balance ReasonNotes recei vable 124,096,196.40
Total 4,939,019,330.20
(46) Foreign currency monetary items
Items
Pledged for acceptance bill and short termloan
Ending balance inforeign currency
Ending balance in foreign currency | Exchange rate at the year-end | Ending balance translated to RMB |
Cas h a t bank and on hand
2,216,275,084.71Including: USD 315,892,718.96 6.8632 2,168,034,908.58
EUR 6,060,666.56 7.8473 47,559,868.87HKD 776,429.19 0.8762 680,307.26
Short-term loans1,304,008,000.00Including: USD 190,000,000.00 6.8632 1,304,008,000.00EUR
181,525,576.32Including: USD 4,700,000.00 6.8632 32,257,040.00
EUR 18,838,867.28 7.8473 147,834,243.21JPY 23,176,000.00 0.0619 1,434,293.11
Long-term loans2,599,540,094.16
Non-current liabilities duewithin one yearIncluding:USD
311,250,000.00 6.8632 2,136,171,000.00
Including:USD |
EUR |
57,586,016.75 7.8473 451,894,749.26
JPY | 185,408,000.00 | 0.0619 | 11,474,344.90 |
6. Equity in other entities
(1) Equity in subsidiaries
1. Constitution of enterprise group
Name of the sub sidiaries
Principalplace ofbusiness
Register
edaddress
Notes |
ofbusine
Shareholding ratio
Acqui ring method
ss |
Direct
Xiamen Beng ang Steel & Iron Sales Co., Ltd. Xiamen
Indirect | ||
Xiamen |
Sales 100.00
Wuxi Bengang Steel & Iron Sales Co., Ltd. Wuxi Wuxi Sales 100.00
Business combination under common control |
Business combination under common control |
Tianjin Bengang Steel & Iron Trading Co., Ltd. Tianjin Tianjin Sales 100.00
Nanjing Bengang Materials Sales Co., Ltd. Nanjing
Business combination under common control | ||
Nanjing |
Sales 100.00
Yantai Bengang Steel & Iron Sales Co., Ltd . Yantai Yantai Sales 100.00
Business combination under common control | ||
Business combination under common control | ||
Harbin Bengang Economic and Trading Co., Ltd. |
Harbin Harbin Sales 100.00
Business combination under common control | ||
Changchun Bengang Steel & Iron Sales Co., Ltd. |
Changchun
Sales 100.00
Changchun | Business combination under common control | |||
Guangzhou Bengang Steel & Iron Trading Co., Ltd. |
Guangzhou
Sales 100.00 Establishment
Guangzhou | ||
Shanghai Bengang Metallurgy Science and Technology Co., Ltd. |
Shanghai
Sales 100.00 EstablishmentBengang Steel Plates Liaoyang Pellet Co., Ltd. Liaoyang
Liaoya
ng
Shanghai | |
Manuf |
acturin
100.00 Establishment
g | ||
Dalian Benruitong Automobile Material |
Technology Co., Ltd.
Dalian Dalian
acturin
g |
65.00 EstablishmentBengang Posco Cold-rolled Sheet Co., Ltd. Benxi Benxi
acturin
g |
75.00
Business combinationunder common controlBenxi Beng ang Steel Sales Co., Ltd Benxi Benxi Sales 100.00 Establishment
Shenyang
Shen yang Beng ang Metallurgical Science and Technology Co., Ltd. | Shenyang |
Sales 100.00 Establishment
Chongqing
Chongqing Liaoben Steel & Iron Trading Co., Ltd. | Chongqing |
Sales 100.00 EstablishmentBengang Baojin (Shenyang) auto new materialtechnology Co., Ltd.
Shenyang
Shenya
ng
acturin
g |
85.00
Business combinationunder common control
2. Significant but not wholly-owned subsidiaries
Name of the sub sidiaries
Proportion ofnon-
interests (%)
controlling | Profits and losses |
attributing tonon-controlling
shareholders | Dividend declared |
to distribute tonon-controlling
shareholders | Ending |
balance ofnon-controlling
interests | ||
Bengang Posco Cold-rolled Sheet Co., Ltd. |
25.00
2,209,518.69 499,986,326.92
3. Financial information of significant but not wholly-owned subsidiaries
Name of thesubsidiaries
Ending balanceCurrent assets
Non-current
assets
Total assets
Currentliabilities
nt
liabilities |
Total liabilities
Cold-rolled Shee t
Co., Ltd. |
2,986,224,229.42 1,692,675,158.81 4,678,899,388.23 2,678,954,080.56 2,678,954,080.56
Beginning balanceName of thesubsidiaries
Current
assets
Non-current
assets
Total assets
Currentliabilities
nt
liabilities |
Total liabilities
PoscoCold-rolledSheet Co.,
Ltd. |
2,386,618,039.83
2,003,972,503.03
4,390,590,542.86
2,399,426,402.00 2,399,426,402.00
Name of the sub sidiaries
2018Operating
income
Net profit
Total
comprehensive
income |
Net cash flows fromoperating activities
8,063,719,253.01 8,838,074.77 8,838,074.77 1,040,018,505.74
Name of the sub sidiaries
2017Operating
income
Net profit
Bengang Posco Cold-rolledSheet Co., L td.
Total
comprehensive
income |
Net cash flows fromoperating activities
7,442,109,333.08 37,153,450.95 37,153,450.95 -147,937,610.55
(2) Equity in joint venture or associates
1. Summary of financial information of unimportant joint ventures and associates
Bengang Posco Cold-rolledSheet Co., L td.
Ending balance/Current period | Beginni ng balance/Last period | |
Joi nt ventures: | ||
Total book value of investment: | 2,455,681.55 | 2,726,009.03 |
The total amount of the following items
calculat ed according to the shareholding ratio | ||
¡ªNet profit | 171,488.75 | 758,403.40 |
¡ªOther comprehensive income | ||
¡ªTotal comprehensive income | 171,488.75 | 758,403.40 |
7. Risks associated with financial instruments
(1) Credit risk
Credit risk refers to a financial loss to a party due to failure to discharge an obligation by thecounterparties. The Company is exposed to credit risk arising from customers¡¯ failure todischarge an obligation in sales on credit. In order to minimize the credit risk, themanagement of the Company is responsible for determination of credit limits, credit approvalsand other monitoring procedures to ensure that follow-up actions are taken to recover overduedebts.
In addition, the Company strictly approves the line of credit, and only sells on credit toimportant customers for newly-developed products. In the monitoring of credit risk ofcustomers, the Company sorts customers into groups by their credit characteristics. Thosecustomers which are rated as ¡°high risk¡± will be put in the restricted client list. The Companycan only sell to these customers on credit with additional approval; otherwise the Companymust ask for a corresponding deposit in advance.
(2) Market risk
Market risk of financial instruments refers to fluctuations of fair value or future cash flowsdue to market price changes, including currency risk, interest rate risk, and other price risk.1. Interest rate riskInterest rate risk refers to fluctuations of fair value or future cash flows due to market ratechanges. The Company¡¯s exposure to currency risk is primarily arising from variable-ratebank balances and variable-rate borrowings. Currently, the Company does not have a specificpolicy to manage its interest rate risk. The management will carefully choose financingmethods, and combine fixed interest rate with variable interest rate, short-term obligationswith long-term obligations. By using effective interest rate risk management methods, theCompany closely monitors interest rate risk and will consider interest-rate swaps to acquire anexpected structure of interest rates shall the need arise.
Although these measures may not ensure that the Company completely avoids the risk ofpaying at a risk higher than market risk, or that the cash flow risk relevant to interest incomefluctuations is completely eliminated, in the opinion of the management, these measures couldachieve a reasonable balance among these risks.
2. Currency riskCurrency risk refers to fluctuations of fair value or future cash flows due to exchange ratechanges. The Company has been constantly working on the adjustment of the organizationalframework of risk management and optimization of debt structures to lower the currency risk.
The currency risk facing the Company originates from the assets and liabilities measured byUS dollars, Euro, Hongkong dollars and Japanese Yen. The ending balance of the assets andliabilities after converted in RMB is shown as below:
(In 10 Thousand Yuan)
Items
Ending balanceUSD
Euro
HKD
Japanese Y en
TotalAssets
216,803.49 | 4,755.99 | 68.03 | 221,627.51 |
Liabilities
347,243.60 | 59,972.90 | 1,290.86 | 408,507.36 |
Total
564,047.09 | 64,728.89 | 68.03 | 1,290.86 | 630,134.87 |
The table below shows the sensitivity analysis of RMB vs other currencies when RMBdeprecated or appreciated by 5% over other currencies under the assumption that othervariables remain the same. 5% is the sensitivity rate used by the management for internalreport of currency risk and it represents the estimation of the management over the possiblechange of foreign currency. Sensitivity analysis only includes the monetary items measuredby foreign currency unpaid and will be adjusted at the year-end by 5%. The positive figuresreflect the increase of profit by 5% and the negative figures indicate the reduction of profit.
( In 10 Thousand Yuan)
Items
Ending balanceImpact on USD Impact on Euro
Impact on
HKD
Impact onJapanese Y en
TotalAppreciation by 5%
-6,523.20 | -2,760.85 | 3.40 | -64.56 | -9,345.20 |
Depreciation by 5%
6,523.20 | 2,760.85 | -3.40 | 64.56 | 9,345.20 |
(3) Liquidity risk
Liquidity risk refers to the risk of shortage of funds which occurs in fulfilling the obligation ofsettlement in a manner of delivering cash or other financial assets. The Company¡¯s policy is tomaintain sufficient cash to meet maturing obligations. Liquidity risk is centralized controlledby the Company¡¯s finance department. Through the monitoring of unrestricted cash and cashequivalents, bank acceptance bills due in short time and the continues forecasting of cash flowin the next 12 months, the finance department ensures that the Company has sufficient cash tomeet obligations in all predicted reasonable circumstances.
The following table details the Company¡¯s mature date of residual contract value ofunderivative financial liabilities to repay according to the contract terms. The table has beendrawn up based on the undiscounted cash flows of financial liabilities based on the earliestdate on which the Company can be required to pay. The table includes both interest andprincipal cash flows.
(In 10 Thousand Yuan)
Items
Ending balanceWithin 1 year 1-2 years 2-5 years
TotalTrade and other payables
Over 5 years | ||||
1,638,885.92 | 67.12 | 130.65 | 71.79 | 1,639,155.48 |
Loans and interests
1,229,911.46 | 224,083.41 | 371,055.41 | 113,225.19 | 1,938,275.47 |
Total
2,868,797.38 | 224,150.53 | 371,186.06 | 113,296.98 | 3,577,430.95 |
(In 10 Thousand Yuan)
Items
Beginning balanceWithin 1 year 1-2 years 2-5 years
TotalTrade and other payables
Over 5 years | ||||
1,618,161.06 | 73.68 | 159.73 | 97.25 | 1,618,491.72 |
Loans and interests
2,470,640.43 | 31,954.06 | 81,123.04 | 165,472.33 | 2,749,189.86 |
Non-current liabilities due within one year
149,954.52 | 149,954.52 |
Total
4,238,756.01 | 32,027.74 | 81,282.77 | 165,569.58 | 4,517,636.10 |
8. Related party transactions
(1) Details of parent company
(In 100 Million Yuan)Name of parent company
Place ofRegistry
Notes ofBusiness
Registered
capital
Sharepropor tion (%)
Votingrights (%)Benxi Steel (Group) Co., Ltd. Benxi Manufacturing 62.92 60.78 60.78
Note:
The ultimate controlling party of the Company is the State-owned Assets Supervision andAdministration Commission of Liaoning Province.
(2) Details of the subsidiaries
For details of subsidiaries of the Company please refer to Note 6 ¡°Equity in other entities¡±.
£¨
£©Details of other related parties
Name of Other related parti es RelationshipBengang Group International Economicand Trading Co., Ltd.
Both belong to Bengang Group Co., Ltd.Bengang Cold-rolled Stainless SteelDandong Co., Ltd.
Same parent companyBenxi Beiying Steel & Iron (Group) Co.,Ltd.
Both belong to Bengang Group Co., Ltd.Bengang Electronics and Gas Co., Ltd. Both belong to Benxi Steel and Iron (Group) Co., Ltd.Benxi Steel & Iron (Group) Real-estate Same parent company
Name of Other related parti es RelationshipDevelopment Co., Ltd.Benxi Steel & Iron (Group) Steel & IronProcess and Logistics Co., Ltd.
Same parent companyBenxi Steel & Iron (Group) MachineryManufacture Co., Ltd.
Same parent companyBenxi Steel & Iron (Group) ConstructionCo., Ltd.
Same parent companyBenxi St eel & Iron (Group) Mining Co.,Ltd.
Same parent companyBenxi Steel & Iron (Group) Thermal PowerDevelopment Co., Ltd.
Same parent companyBenxi Steel & Iron (Group) DesigningInstitute
Same parent companyBenxi Steel & Iron (Group) IndustrialDevelopment Co., Ltd.
Same parent companyBenxi Steel & Iron (Group) Informationand Automatic Tech Co., Ltd.
Same parent companyBenxi Steel & Iron (Group) Constructionand Repairing Co., Ltd.
Same parent companyBenxi Steel & Iron (Group) MetallurgyResidues Co., Ltd.
Same parent companyBenxi Iron and Steel (Group) EngineeringConstruction Supervision Co., Ltd.
Same parent companyBenxi Steel & Iron (Group) ZhengtaiConstruction Materials Co., Ltd.
Same parent companyBenxi High-tech Drilling ToolsManufacture Co., Ltd.
Both belong to Bengang Group Co., Ltd.Benxi New Car eer Development Co., Ltd. Same parent companyDalian Boluole Steel Tube Co., Ltd. Both belong to Benxi Steel and Iron (Group) Co., Ltd.Guangzho u Free Trade Zone Beng angSales Co ., Ltd.
Both belong to Benxi Steel and Iron (Group) Co., Ltd.Benxi Steel & Iron (Group) GeneralHospital
Both belong to Benxi Steel and Iron (Group) Co., Ltd.Liaoning Bengang Steel & Iron TradingCo., Ltd.
Same parent companyLiaoning Hengtai Heavy Machinery Co.,Ltd.
Same parent companyLiaoning Hengtong MetallurgicalEquipment Manufacture Co., Ltd.
Same parent companyLiaoning Metallurgy Technician College Same parent companyLiaoning Metallurgy Vocation al TechnicalCollege
Same parent companySuzhou Bengang Industrial Co., Ltd. Shareholding company
Name of Other related parti es RelationshipBenxi Steel & Iron (Group) MedicalServices Dep artment;
Related party that the parent company has significant influence on itBengang Group Finance Co., Ltd.Both belong to Bengang Group Co., Ltd.Liaoning Hengyi Financial Leasing Co.,Ltd.
Both belong to Bengang Group Co., Ltd.
(4) Related Party Transactions
1. Related party transactions of purchasing goods and services
Company as the purchaser
(In 10 Thousand Yuan)
Name
2018 2017Benxi Steel & Iron (Group) Co., Ltd. Repair expense
The content of related party transactions | ||
30,864.85 | 24,248.68 |
Benxi Steel & Iron (Group) Co., Ltd. Land lease fee
5,469.14 | 5,469.14 |
Bengang Cold-rolled Stainless Steel Dandong Co., Ltd. Products
362.50 | 5.03 |
Benxi Steel & Iron (Group) Mining Co., Ltd. Labor cost
2,200.17 | 2,659.17 |
Benxi Steel & Iron (Group) Mining Co., Ltd.
Raw material andsupp lementar y material
401,542.74 299,526.85Benxi Steel & Iron (Group) Mining Co., Ltd. Freight
167.04 | 174.43 |
Benxi Steel & Iron (Group) Metallurgy Residues Co., Ltd.
Raw material andsupp lementar y material
25,866.54 17,396.46Benxi Steel & Iron (Group) Steel & Iron Process and LogisticsCo., Ltd.
Processing fee
160.26 168.26Benxi Steel & Iron (Group) Real-estate Development Co., Ltd. Raw materials
7,757.99 | 8,215.57 |
Benxi Steel & Iron (Group) Machinery Manufactur e Co., Ltd. Spare parts
14,321.59 | 13,745.15 |
Benxi Steel & Iron (Group) Machinery Manufacture Co., Ltd. Repair services
4,617.20 | 2,252.82 |
Benxi Steel & Iron (Group) Construction Co., Ltd. Spare parts
1,072.33 | 526.58 |
Benxi Steel & Iron (Group) Construction Co., Ltd. Project fee
8,375.54 | 7,854.97 |
Benxi Steel & Iron (Group) Construction Co., Ltd. Repair services
21,285.38 | 8,397.27 |
Benxi Steel & Iron (Group) Construction Co., Ltd.
Raw material andsupp lementar y material
55.12 83.75Benxi Steel & Iron (Group) Construction Co., Ltd. Freight
1,469.39 | 708.03 |
Benxi Steel & Iron (Group) Industrial Development Co., Ltd. Spare parts
19,722.48 | 25,210.95 |
Benxi Steel & Iron (Group) Industrial Development Co., Ltd.
Raw material andsupp lementar y material
2,576.98 1,608.42Benxi Steel & Iron (Group) Industrial Development Co., Ltd. Freight
581.17 | 540.76 |
Benxi Steel & Iron (Group) Industrial Development Co., Ltd. Project fee
189.45 | 244.17 |
Benxi Steel & Iron (Group) Construction and Repairing Co.,Ltd.
Raw material &supplementary materials &
spare parts
573.58 651.23Benxi Steel & Iron (Group) Construction and Repairing Co.,Ltd.
Proj ect fee
2,473.26 5,058.49
Name
2018 2017Benxi Steel & Iron (Group) Construction and Repairing Co.,Ltd.
Repair expense
20,379.63 12,129.28Bengang Electronics and Gas Co., Ltd.
Raw material andsupp lementar y material
14,695.97 14,201.43Bengang Electronics and Gas Co., Ltd. Repair services
The content of related party
transactions3,085.90
3,085.90 | 1,824.57 |
Benxi High-tech Drilling Tools Manufacture Co., Ltd. Spare parts
61.16 | 104.30 |
Benxi New Car eer Development Co., Ltd. Labor protection fee
340.23 | 533.84 |
Benxi New Car eer Development Co., Ltd.
Raw material andsupp lementar y material
and food
630.15 692.70Liaoning Metallurgy Technician College Spare parts
1,151.38 | 1,504.98 |
Liaoning Metallur g y Vocational Technical College Project fee
- | 159.82 |
Liaoning Metallur g y Vocational Technical College Repair services
449.86 | 259.04 |
Bengang Group International Economic and Trading Co., Ltd. Agency fee
7,602.28 | 7,905.47 |
Bengang Group International Economic and Trading Co., Ltd. Port surcharges
11,692.28 | 16,376.02 |
Benxi Steel & Iron (Group) Information and Automatic TechCo., Ltd.
Spare parts
2,551.21 1,521.69Benxi Steel & Iron (Group) Information and Automatic TechCo., Ltd.
Project fee
3,283.88 2,024.87Benxi Steel & Iron (Group) Information and Automatic TechCo., Ltd.
Repair ser vices
1,292.36 968.96Benxi Steel & Iron (Group) Thermal Power Development Co.,Ltd.
Heating costs
183.78 176.63Benxi Steel & Iron (Group) Thermal Power Development Co.,Ltd.
Raw material andsupp lementar y material
7.54 3.67Benxi Steel & Iron (Group) Designing Institute Design fees
510.96 | 385.79 |
Benxi Beiying Steel & Iron (Group) Co., Ltd.
Raw material andsupp lementar y material
1,507,972.99 1,131,947.10Benxi Beiying Steel & Iron (Group) Co., Ltd. Energy & Power
80,758.32 | 64,877.65 |
Benxi Beiying Steel & Iron (Group) Co., Ltd. Freight
588.11 | 781.29 |
Benxi Beiying Steel & Iron (Group) Co., Ltd. Labor cost
8,117.37 | 7,460.80 |
Benxi Beiying Steel & Iron (Group) Co., Ltd. Spare parts
636.62 | 955.50 |
Liaoning Hengtong Metallurgical Equipment Manufacture Co.,Ltd.
Raw material and spare
parts
10,000.99 9,117.95Liaoning Hengtai Heavy Machinery Co., Ltd.
Raw material and spare
parts
2,106.67 802.73Liaoning Hengtai Heavy Machinery Co., Ltd. Repair and labor cost
2,266.25 | 1,437.18 |
Bengang Group Co., Ltd. Property management fee
- | 84.55 |
Company as the seller
(In 10 Thousand Yuan)
Name
2018 2017
Name
2018 2017Bengang Electronics and Gas Co., Ltd. Energy & Power
The content of related party transactions | ||
89.86 | 88.05 |
Benxi Beiying Steel & Iron (Group) Co., Ltd.
Raw material &supplementary materials &
spare parts
80,882.30 107,584.27Benxi Beiying Steel & Iron (Group) Co., Ltd. Products
2,143.14 | 1,475.15 |
Benxi Beiying Steel & Iron (Group) Co., Ltd. Energy & Power
139,744.84 | 33,191.37 |
Benxi Steel & Iron (Group) Real-estateDevelopment Co., Ltd.
Energy & Power
12.15 20.88Benxi Steel & Iron (Group) Steel & Iron Processand Logistics Co., Ltd.
Energy & Power
51.01 74.66Benxi Steel & Iron (Group) Steel & Iron Processand Logistics Co., Ltd.
Products
29.25Benxi Steel & Iron (Group) MachineryManufacture Co., Ltd.
Products
2,009.03 1,065.99Benxi Steel & Iron (Group) MachineryManufacture Co., Ltd.
Energy & Power
1,758.69 1,606.10Benxi Steel & Iron (Group) MachineryManufacture Co., Ltd.
Raw material &supplementary materials &
spare parts
1,310.90 87.96Benxi Steel & Iron (Group) Construction Co., Ltd. Energy & Power
467.84 | 156.41 |
Benxi Steel & Iron (Group) Construction Co., Ltd.
Raw material &supplementary materials &
spare parts
5,416.38 1,026.54Benxi Steel & Iron (Group) Mining Co., Ltd. Energy & Power
68,372.48 | 71,317.95 |
Benxi Steel & Iron (Group) Mining Co., Ltd.
Raw material &supplementary materials &
spare parts
6,421.84 9,874.06Benxi Steel & Iron (Group) Mining Co., Ltd. Freight revenue
1,086.25 | 804.19 |
Benxi Steel & Iron (Group) Mining Co., Ltd. Products
935.65 | 1,013.41 |
Benxi Steel & Iron (Group) Thermal PowerDevelopment Co., Ltd.
Energy & Power
5,825.31 2,913.18Benxi Steel & Iron (Group) Thermal PowerDevelopment Co., Ltd.
Raw material &supplementary materials &
spare parts
0.07 2,264.70Benxi Steel & Iron (Group) Thermal PowerDevelopment Co., Ltd.
Freight revenue
- 28.34Benxi Steel & Iron (Group) IndustrialDevelopment Co., Ltd.
Energy & Power
753.92 814.35Benxi Steel & Iron (Group) IndustrialDevelopment Co., Ltd.
Products
1,459.16Benxi Steel & Iron (Group) IndustrialDevelopment Co., Ltd.
Raw material &supplementary materials &
spare parts
1,021.16 6,337.01
Name
2018 2017Benxi Steel & Iron (Group) Information andAutomatic Tech Co., Ltd.
Energy & Power
25.45 16.89Benxi Steel & Iron (Group) Construction andRepairing Co., Ltd.
Energy & Power
132.20 136.39Benxi Steel & Iron (Group) Construction andRepairing Co., Ltd.
Raw material &supplementary materials &
spare parts
5,008.95Benxi Steel & Iron (Group) Metallurgy ResiduesCo., Ltd.
Energy & Power
555.29 448.98Benxi Steel & Iron (Group) Metallurgy ResiduesCo., Ltd.
Raw material &supplementary materials &
spare parts
23,215.49 12,068.73Benxi Steel & Iron (Group) Metallurgy ResiduesCo., Ltd.
Freight revenue
-Benxi Steel & Iron (Group) Metallurgy ResiduesCo., Ltd.
Products
1,732.86Benxi Steel & Iron (Group) Co., Ltd. Energy & Power
The content of related party
transactions
132.59
132.59 | 314.50 |
Benxi St eel & Iron (Group) Co., Ltd.
Raw material &supplementary materials &
spare parts
300.21 736.31Benxi New Car eer Development Co., Ltd. Energy & Power
43.87 | 48.09 |
Dalian Boluole Steel Tube Co., Ltd. Products
585.99 | 510.74 |
Liaoning Bengang Steel & Iron Trading Co., Ltd. Products
- | 38.85 |
Benxi Steel & Iron (Group) General Hospital Energy & Power
8.11 | 10.33 |
Benxi Steel & Iron (Group) Zhengtai ConstructionMaterials Co., Ltd.
Energy & Power
0.27 0.18Liaoning Hengtong Metallurgical EquipmentManufacture Co., Lt d.
Energy & Power
- 1,156.65Liaoning Hengtong Metallurgical EquipmentManufacture Co., Ltd.
Raw material &supplementary materials &
spare parts
1,955.29 1,799.29Liaoning Hengtong Metallurgical EquipmentManufacture Co., Ltd.
Products
1,019.91 611.65Bengang Cold-rolled Stainless Steel Dandong Co.,Ltd.
Raw material &supplementary materials &
spare parts
- 7.16Suzhou Bengang Industrial Co., Ltd. Products
39,596.68 | 26,643.27 |
Bengang Group Finance Co., Ltd. Energy & Power
1.46 | 1.49 |
Bengang Gr oup Co., Ltd. Energy & Power
3.93 | 2.47 |
2. Lease information of related partiesCompany as the lessor
Lessee Lease capital category Lease income of 2018 Lease income of 2017
Steel & Ir on Process and
Logistics Co., Ltd. |
Warehouse and machinery
500,000.00 500,000.00
Machinery Manufacture Co.,
Ltd. |
Plant s and machinery
490,000.00 490,000.00
Company as the lessee
Lessor Lease capital category Lease charges of 2018 Lease charges of 2017
2300 Hot ro l li ng pr o duc t li ne
247,959,966.10 243,353,313.24
Benxi Steel & Iron (Group) Co., Ltd |
Benxi Steel & Iron (Group) Co., Ltd |
Land use right
54,691,428.60 54,691,428.60
1780 Hot ro l li ng pr o duc t li ne
135,959,033.13 134,443,446.44
Financial lease matters:
During the reporting period, the company leased machinery and equipment from LiaoningHengyi Finance Leasing Co., Ltd. in the form of financial leases. As of the end of the reportingperiod, the long-term accounts payable amounted to RMB 13,686,705.92. The equipment waspresented in the construction in progress subject.
Notes to lease from or to related parties:
1. The Company leases land fromBengang Group Co., Ltd., with a monthly rent of 0.594 yuan
per square meter. The leased land is 7,669,068.17 square meters and the annual rent is54,665.10 thousand yuan.
2. F or the 2300mm hot rolling product line leased from the Group to the Company, leaseperiod lasts from 1 January 2018 to 31 December 2020. Lease charges are negotiated betweenthe lessor and the lessee based on the original cost, depreciation, and national taxation of theproduct line, with consideration of conditions of production and equipment performance.
3. For the 1780 hot rolling product line leased from Benxi Beiying Steel & Iron (Group) Co.,Ltd. to the Company. ¡°Notice on Bengang Steel Plates Co., Ltd. signing a renewal agreementwith Benxi Steel (group) Co., Ltd¡± were adopted on the sixth meeting of the seventh board ofdirectors, it stipulated that the company leased the 1780 hot rolling product line from BenxiBeiying Steel & Iron (Group) Co., Ltd., lease period lasts from 1 January 2017 to 31December 2019. Lease charges are negotiated between the lessor and the lessee based on theoriginal cost, depreciation, and national taxation of the product line, with consideration ofconditions of production and equipment performance. The annual rent shall not exceed RMB150,000,000.00.
3. Information of Guarantee among related parties(1) Company as the guarantorNo.
(2) Company as the warrantee
Guarantee of loans:
Warrantor Amount of guarantee
Star ting dateof Guarantee
Ending date
ofGuarantee
guarantee
been
fulfilled |
Bengang Group Co., Ltd.
?480,000,000.00 | 2018/1/22 | 2019/1/21 |
NoBenxi Steel & Iron (Group) Co., Ltd.
?270,000,000.00 | 2018/1/23 | 2019/1/22 |
NoBenxi Steel & Iron (Group) Co., Ltd.
?60,000,000.00 | 2018/2/1 | 2019/1/31 |
NoBenxi Steel & Iron (Group) Co., Ltd.
?340,000,000.00 | 2018/2/11 | 2019/2/10 |
NoBengang Group Co., Ltd.
?180,000,000.00 | 2018/3/9 | 2019/3/9 |
NoBengang Group Co., Ltd.
?310,000,000.00 | 2018/3/28 | 2019/3/27 |
NoBengang Group Co., Ltd.
?720,000,000.00 | 2018/4/2 | 2019/4/1 |
NoBenxi Steel & Iron (Group) Co., Ltd.
?150,000,000.00 | 2018/5/18 | 2019/5/17 |
NoBenxi Steel & Iron (Group) Co., Ltd.
?74,000,000.00 2018/5/25 2019/5/24NoBengang Group Co., Ltd.
?160,000,000.00 2018/5/24 2019/5/24
NoBengang Group Co., Ltd.
?150,000,000.00 2018/7/13 2019/7/13NoBengang Group Co., Ltd.
?150,000,000.00 2018/7/13 2019/7/13NoBengang Group Co., Ltd.
?100,000,000.00 2018/7/2 2019/7/1NoBengang Group Co., Ltd. and BenxiSteel & Iron (Group) Co., Ltd.
?200,000,000.00 2018/9/7 2019/9/5
NoBengang Group Co., Ltd. and BenxiSteel & Ir on (Group) Co., Ltd.
?150,000,000.00 2018/10/17 2019/10/16
No
Bengang Group Co., Ltd. and BenxiSteel & Iron (Group) Co., Ltd.
?200,000,000.00 2018/10/12 2019/10/10
No
Bengang Group Co., Ltd. and BenxiSteel & Iron (Group) Co., Ltd.
?200,000,000.00 2018/11/9 2019/11/7
NoBengang Group Co., Ltd. and BenxiSteel & Iron (Group) Co., Ltd.
?200,000,000.00 2018/11/14 2019/11/13
NoBengang Group Co., Ltd.
?300,000,000.00 | 2018/11/15 | 2019/11/14 |
NoBengang Group Co., Ltd.
?800,000,000.00 | 2018/11/27 | 2018/11/26 |
NoBengang Group Co., Ltd.
?900,000,000.00 | 2018/11/28 | 2019/11/27 |
NoBengang Group Co., Ltd.
?390,000,000.00 | 2018/11/29 | 2019/11/28 |
No
Warrantor Amount of guarantee
Star ting dateof Guarantee
Ending date
ofGuarantee
guarantee
been
fulfilled |
Bengang Group Co., Ltd. and BenxiSteel & Iron (Group) Co., Ltd.
?178,000,000.00 2018/12/13 2019/12/12
NoBenxi Steel & Iron (Group) Co., Ltd.
?147,000,000.00 | 2018/12/19 | 2019/12/19 |
NoBenxi Steel & Iron (Group) Co., Ltd.
?300,000,000.00 2018/12/14 2019/12/14
NoBenxi Steel & Iron (Group) Co., Ltd.
?373,000,000.00 2018/12/13 2019/12/13NoBenxi Steel & Iron (Group) Co., Ltd.
?480,000,000.00 2018/12/13 2019/12/13NoBenxi Steel & Iron (Group) Co., Ltd.
?500,000,000.00 2018/12/13 2019/12/13NoBenxi Steel & Iron (Group) Co., Ltd.
US$100,000,000.00 2018/2/24 2019/2/23NoBenxi Steel & Iron (Group) Co., Ltd.
US$90,000,000.00 2018/5/22 2019/5/21
NoBengang Group Co., Ltd. and BenxiSteel & Iron (Group) Co., Ltd.
?90,000,000.00 2016/3/30 2025/3/20
NoBengang Group Co., Ltd. and BenxiSteel & Iron (Group) Co., Ltd.
?610,000,000.00 2017/2/27 2025/2/20
NoBengang Group Co., Ltd.
?16,280,000.00 2015/3/26 2019/3/21
NoBengang Group Co., Ltd.
?100,000,000.00 | 2015/6/25 | 2021/9/21 |
NoBengang Group Co., Ltd.
?24,000,000.00 | 2015/12/9 | 2022/3/21 |
NoBengang Group Co., Ltd.
?36,450,000.00 | 2016/12/27 | 2020/6/21 |
NoBengang Group Co., Ltd.
?87,280,000.00 | 2018/3/26 | 2024/6/21 |
NoBengang Group Co., Ltd.
?59,570,000.00 | 2017/11/15 | 2021/12/21 |
NoBengang Group Co., Ltd.
?622,600,000.00 | 2017/12/15 | 2024/8/20 |
NoBengang Group Co., Ltd.
€ 960,631.08 | 2015/6/25 | 2019/6/30 |
NoBengang Group Co., Ltd.
€ 1,813,075.20 | 2015/6/25 | 2019/8/31 |
NoBengang Group Co., Ltd.
€ 2,311,613.67 | 2015/6/25 | 2019/10/31 |
NoBengang Group Co., Ltd.
€ 1,948,053.95 | 2015/6/25 | 2020/4/30 |
NoBengang Group Co., Ltd.
€ 483,803.97 | 2015/6/25 | 2025/6/30 |
NoBengang Group Co., Ltd.
€ 13,834,496.03 | 2015/6/25 | 2025/6/30 |
NoBengang Group Co., Ltd.
€ 609,296.41 | 2015/6/25 | 2025/8/31 |
NoBengang Group Co., Ltd.
€ 11,990,585.71 | 2015/6/25 | 2025/8/31 |
NoBengang Group Co., Ltd.
€ 233,211.78 | 2015/6/25 | 2025/9/30 |
NoBengang Group Co., Ltd.
€ 719,075.68 | 2015/6/25 | 2025/10/31 |
NoBengang Group Co., Ltd.
€ 9,901,243.51 | 2015/6/25 | 2025/10/31 |
NoBengang Group Co., Ltd.
€ 6,162.48 | 2015/6/25 | 2026/4/30 |
NoBengang Group Co., Ltd.
€ 557,460.75 | 2015/6/25 | 2026/4/30 |
NoBengang Gr oup Co., Ltd.
€ 597,187.50 | 2015/8/20 | 2019/9/30 |
No
Warrantor Amount of guarantee
Star ting dateof Guarantee
Ending date
ofGuarantee
guarantee
been
fulfilled |
Bengang Group Co., Ltd.
€ 7,967,631.00 | 2015/8/20 | 2025/9/30 |
NoBengang Group Co., Ltd.
€ 687,534.21 | 2015/12/28 | 2019/6/30 |
NoBengang Group Co., Ltd.
€ 642,082.50 | 2015/12/28 | 2019/7/30 |
NoBengang Group Co., Ltd.
€ 239,173.64 | 2015/12/28 | 2019/8/31 |
NoBengang Group Co., Ltd.
€ 44,356.22 | 2015/12/28 | 2019/10/31 |
NoBengang Group Co., Ltd.
€ 696,676.50 | 2015/12/28 | 2020/4/30 |
NoBengang Group Co., Ltd.
€ 424,686.42 | 2015/12/28 | 2025/6/30 |
NoBengang Group Co., Ltd.
€ 253,120.00 | 2015/12/28 | 2025/8/31 |
NoBengang Group Co., Ltd.
€ 4,579,846.88 | 2015/12/28 | 2025/10/31 |
NoBengang Group Co., Ltd.
€ 4,069.11 | 2015/12/28 | 2026/4/30 |
NoBengang Group Co., Ltd.
€ 6,798,868.28 | 2015/12/28 | 2026/4/30 |
NoBengang Group Co., Ltd.
€ 410,699.25 | 2016/6/27 | 2020/4/30 |
NoBengang Group Co., Ltd.
€ 3,727,122.75 | 2016/6/27 | 2020/4/30 |
NoBengang Group Co., Ltd.
€ 36,617.16 | 2016/12/14 | 2020/4/30 |
NoBengang Group Co., Ltd.
€ 2,833,183.48 | 2016/12/14 | 2026/4/30 |
NoBengang Group Co., Ltd.
€ 21,690.00 | 2017/6/30 | 2025/10/31 |
NoBengang Group Co., Ltd.
€ 1,091,628.91 | 2017/6/30 | 2025/10/31 |
NoBengang Group Co., Ltd. and BenxiBeiying Steel & Iron (Group) Co.,Ltd.
US$20,000,000.00 2018/5/8 2020/5/7
NoBengang Group Co., Ltd. and BenxiBeiying Steel & Iron (Group) Co.,Ltd.
US$80,000,000.00 2018/5/2 2020/5/21
NoBengang Group Co., Ltd. and BenxiBeiying Steel & Iron (Group) Co.,Ltd.
US$45,000,000.00 2018/7/3 2020/7/2
NoBengang Group Co., Ltd. and BenxiBeiying Steel & Iron (Group) Co.,Ltd.
US$45,000,000.00 2018/8/17 2020/8/7
NoBengang Group Co., Ltd. and BenxiBeiying Steel & Iron (Group) Co.,Ltd.
US$100,000,000.00 2018/8/29 2020/8/28
NoBenxi Steel & Iron (Group) Co., Ltd.
JPY 208,584,000.00 | 1997/10/10 | 2027/9/10 |
No
(3) Guarantee of acceptance billAs of December 31, 2018, the guarantees for notes payable provided by related parties are asfollows:
1. T he Company's balance of notes payable at the Agricultural Bank of China Benxi Xinhuabranch is RMB 60 million, and Bengang Group Co., Ltd. and Benxi Steel & Iron (Group) Co.,
Ltd. provide guarantee.2.The Company's balance of notes payable at Ping An Bank Dalian Branch is RMB1,428,000,000.00, of which RMB 1,000,000,000.00 is guaranteed by Benxi Steel and Iron(Group) Co., Ltd.; the remaining RMB 428,000,000.00 is issued as a pledge guarantee by aRMB 428,000,000.00 certificate of deposit at Ping An Bank Dalian Xigang branch.(3) The Company's balance of notes payable at China Minsheng Bank Dalian Branch wasRMB 2,141,500,000, which was guaranteed by Bengang Group Co., Ltd., and the actualdeposit balance of Bengang Steel Plate Co., Ltd. in Dalian Branch of China Minsheng BankCo., Ltd. was pledged. The balance of the margin account as of December 31, 2018 is RMB7,233,045.30.(4) The balance of notes payable by the Company at the China Guangfa Bank Benxi Branchis RMB 666,000,000, which is guaranteed by Bengang Group Co., Ltd.(5) The Company's balance of notes payable at Bank of Jinzhou Benxi Branch is RMB471,846,195.67, a nd Bengan g Group Co., Ltd. provides guarantee.
4. Remuneration of key management personnel
(In 10 Thousand Yuan)Name 2018 2017Remuneration of key management personnel
197.60 | 217.32 |
5. Other related party transactions(1) Loan from and deposits in Bengang Group Finance Co., Ltd.
(In 10 Thousand Yuan)Item Beginning balanceIncrease Decrease Ending balance NotesDeposits 895,092.1416,226,529.75
16,146,428.81 975,193.08
1. The interests of deposits in Bengang Group Finance Co., Ltd. is RMB 144,464.2thousand in 2018. As at 31 December 2018, the interest receivable from Bengang GroupFinance Co., Ltd. is RMB 11,608.7 thousand.2. As at 31 December 2018, the restricted deposits in Bengang Group Finance Co., Ltd.is RMB 2,715,569.00 thousand.3. In 2018, the company and its subsidiaries did not borrow money from financialcompanies.4. B engang Group Finance Co., Ltd. granted the company an unsecured credit line ofRMB 2.5 billion in 2018. As 31 December 2018£¬the amount of acceptance bill openedby Bengang Group Finance Co., Ltd. was RMB 6.007 billion, and the amount of the
acceptance bill that had been opened and unpaid by the Japanese company is RMB 2.716billion which is 100% deposit.5. In 2018, the Company applied for 2 bill discounting services to the finance company,amounting to RMB 20,000 and paying discounted interest of RMB 7.08.
(2) The company's loan and interest payment to Benxi steel and iron (Group) Co., Ltd.
(In 10 Thousand yuan).Item Beginning balance Increase Decrease Ending balanceEntrusted loan through Bengang
9,940.94 1,422.00 9,940.94 1,422.00Capital lending
Group Finance Co., Ltd. | ||||
9,192.00 | 1,422.00 | 7,770.00 |
Total
9,940.94 | 10,614.00 | 11,362.94 | 9,192.00 |
Details of outstanding loans as at 31 December 2018
Related parties | Lease form | Lease amount | Start date | Due date |
Benxi Steel and Iron (Group) Co., Ltd. | Entrusted loan | 14,220,000.00 | 2018/2/8 | 2019/2/8 |
Benxi Steel and Iron (Group) Co., Ltd. | Money lending | 14,000,000.00 | 2018/6/13 | 2019/6/13 |
Benxi Steel and Iron (Group) Co., Ltd. | Money lending | 11,000,000.00 | 2018/7/5 | 2019/7/5 |
Benxi Steel and Iron (Group) Co., Ltd. | Money lending | 32,700,000.00 | 2018/10/25 | 2019/10/25 |
Benxi Steel and Iron (Group) Co., Ltd.
Money lending | 20,000,000.00 | 2018/12/4 | 2019/12/4 |
Total
91,920,000.00 |
Notes: In 2018, the interest accrued is RMB 4,541,266.03, and as at 31 December 2018,the company has no interest that has not been paid.
5. Receivables and payables of the related parties
¡¢Receivables of the Company
(in 1 0 thousand yuan)
Items Name Name
Ending Balance | Beginn ing Balance |
Carryingamount
Provision
for bad
Carryingamount
Provision
for bad
debts | debts | ||||
Accounts receivab le |
Benxi Beiying Steel & Iron
1,206.26 701.26
Items Name Name
Ending Balance | Beginn ing Balance |
Carryingamount
Provision
for bad
Carryingamount
Provision
for bad
debts | debts |
408.26 112.76 317.53 70.51
Benxi Steel & Iron (Group)
Bengang Electronics and Gas Co., Ltd. |
Machinery Manufacture Co., Ltd. |
6,224.21 2,275.49
Benxi Steel & Iron (Group)Industrial Development
4,108.83 884.08
Co., Ltd. |
Benxi New Career Development Co., Ltd. |
632.98 486.25
Benxi Steel & Iron (Group)
937.22 273.52
Bengang Cold-rolled
Thermal Power Development Co., Ltd. |
Stainless Steel Dandong Co., Ltd. |
155.04 19.31 163.42 4.11
1,022.42
Liaoning Hengtong Metallurgical Equipment Manufacture Co., Ltd. |
Bengang Group International Economic and Trading Co., Ltd. |
12,906.30 4,142.04
113.22
Benxi Steel & Iron (Group) Metallurgy Residues Co., Ltd. | |||||
Prepayments |
Benxi Beiying Steel & Iron
71,312.43 66,415.14
(Group) Co., L td. | |||||
Benxi Steel & Iron (Group) | 967.60 |
Items Name Name
Ending Balance | Beginn ing Balance |
Carryingamount
Provision
for bad
Carryingamount
Provision
for bad
debts | debts | |||
Machinery Manufacture Co., Ltd. |
Bengang Cold-rolled
4.73 4.73
Stainless Steel Dandong Co., Ltd. | |||||
Other receivables |
Benxi Steel & Iron (Group)Real-
261.61 72.45 248.21 95.18
estate Development Co., Ltd. |
Liaoning Metallurgy Technician College |
5.80 15.63 15.63
259.26 1,489.04 246.22
Benxi Steel & Iron (Group)
Benxi Steel & Iron (Group) Machinery Manufacture Co., Ltd. |
Construction Co., Ltd. |
449.20 84.80 84.80
622.45 2,001.40 0.86
Bengang Group International Economic and Trading Co., Ltd. |
Benxi Steel & Iron (Group) Industrial Development Co., Ltd. |
181.50 52.22 43.58
20.41 19.32 19.90 19.34
Benxi Steel & Iron (Group) Zhengtai Construction Materials Co., Ltd. |
Benxi Steel & Iron (Group) Medical Co., Ltd. |
93.95 73.32 91.36 67.48
Items Name Name
Ending Balance | Beginn ing Balance |
Carryingamount
Provision
for bad
Carryingamount
Provision
for bad
debts | debts | ||||
Other non-current
Liaoning HengyiFinancial Leasing Co.,
assets | |
Ltd. |
4,631.32
¡¢Payables of the Company
(in 10 thousand yuan)
Items Name Ending balance
Notes pay a bleBenxi Steel & Iron (Group) Industrial Development Co., Ltd. 190.51 7,099.55Benxi Steel & Iron (Group) Machinery Manufacture Co., Ltd. 22.44 4,778.56Bengang Electronics and Gas Co., Ltd. 904.35Benxi Steel & Iron (Group) Construction and Repairing Co., Ltd. 274.74Liaoning Metallurgy Technician College 1,298.88Benxi Steel & Iron (Group) Mining Co., Ltd. 98,047.94 188,559.94Benxi Steel & Iron (Group) Construction Co., Ltd. 153.09
Beginning
balanceBenxi Steel & Iron (Group) Information and Automatic Tech Co.,Ltd.
189.74Benxi Beiying Steel & Iron (Group) Co., Ltd. 470,958.00 444,936.18
Benxi Steel & Iron (Group) Information and Automatic Tech Co.,Ltd.Liaoning Hengtong Metallurgical Equipment Manufacture Co.,Ltd.
3,778.76Liaoning Metallurgy Technician College 86.79Liaoning Hengtai Heavy Machinery Co., Ltd. 37.13Benxi Steel & Iron (Group) Metallurgy Residues Co., Ltd. 38.56Benxi hi-tech drilling tools Co., Ltd. 132.73Benxi Steel & Iron (Group) Real-estate Development Co., Ltd. 291.70 540.44Accounts payableBengang Electronics and Gas Co., Ltd. 2,038.30 1,308.22Benxi Steel & Iron (Group) Real-estate Development Co., Ltd. 318.45 295.90Bengang Group International Economic and Trading Co., Ltd. 151,974.50 26,957.04Benxi Steel & Iron (Group) Machinery Manufacture Co., Ltd. 3,239.73 15,233.51
Items Name Ending balance
Benxi Steel & Iron (Group) Construction Co., Ltd. 9,288.02 6,143.11Benxi Steel & Iron (Group) Mining Co., Ltd. 46,435.71 31,618.85Benxi Steel & Iron (Group) Industrial Development Co., Ltd. 7,543.14 8,885.85Benxi New Career Development Co., Ltd. 356.98 898.94Benxi Steel & Iron (Group) Construction and Repairing Co., Ltd. 10,736.73 6,420.88Benxi Steel & Iron (Group) Metallurgy Residues Co., Ltd. 1,473.85 4,589.73Benxi Steel & Iron (Group) Medical and Health department 2.04 2.04
Beginning
balanceBenxi Steel & Iron (Group) Information and Automatic Tech Co.,Ltd.
4,578.45 4,086.15Benxi High-tech Drilling Tools Manufacture Co., Ltd. 10.80 11.07Liaoning Metallurgical Technician College 1,033.31 768.35Benxi Steel & Iron (Group) Thermal Power Development Co., Ltd. 20.97 15.13
Benxi Steel & Iron (Group) Information and Automatic Tech Co.,Ltd.Benxi Steel & Iron (Group) Zhengtai Construction Materials Co.,Ltd.
0.24 37.44
Benxi Steel & Iron (Group) Zhengtai Construction Materials Co., Ltd. |
Liaoning Hengtong Metallurgical Equipment Manufacture Co., Ltd. |
529.45 1,025.60Liaoning Metallurgy Vocational Technical College 531.92 232.56Bengang Cold-rolled Stainless Steel Dandong Co., Ltd. 454.96 105.41Liaoning Hengtai Heavy Machinery Co., Ltd. 2,991.38 2,670.49
123.00Advance from customersBenxi Steel & Iron (Group) Machinery Manufacture Co., Ltd. 232.22Benxi Steel & Iron (Group) Industrial Development Co., Ltd. 35.80 59.15Benxi Steel & Iron (Group) Metallurgy Residues Co., Ltd. 285.07
Benxi Iron and Steel (Group) Engineering ConstructionSupervision Co., Ltd.Benxi Steel & Iron (Group) Steel & Iron Process and LogisticsCo., Ltd.
6,069.05 754.21Dalian Boluole Steel Tube Co., Ltd. 66.42 38.11Liaoning Bengang Steel & Iron Trading Co., Ltd. 50.02 5,804.14
Benxi Steel & Iron (Group) Steel & Iron Process and LogisticsCo., Ltd.Liaoning Hengtong Metallurgical Equipment Manufacture Co.,Ltd.
12.91 160.95Bengang Group International Economic and Trading Co., Ltd. 786.55Suzhou Bengang Industrial Co., Ltd. 571.81 2,957.84Other pay abl esBenxi Steel & Iron (Group) Real-estate Development Co., Ltd. 143.59 143.59Bengang Group International Economic and Trading Co., Ltd. 4,948.15 3,925.10Benxi Steel & Iron (Group) Machinery Manufacture Co., Ltd. 75.09 1.41Benxi Steel & Iron (Group) Construction Co., Ltd. 590.19 417.15Benxi Steel & Iron (Group) Industrial Development Co., Ltd. 49.15 98.07Benxi New Career Development Co., Ltd. 97.07 109.64Benxi Steel & Iron (Group) Metallurgy Residues Co., Ltd. 50.15 50.00
Liaoning Hengtong Metallurgical Equipment Manufacture Co.,Ltd.Benxi Steel & Iron (Group) Information and Automatic Tech Co.,Ltd.
10.70
Benxi Steel & Iron (Group) Information and Automatic Tech Co., Ltd. |
Benxi Steel & Iron (Group) Steel & Iron Process and Logistics Co., Ltd. |
331.87Benxi Steel & Iron (Group) Co., Ltd. 21,832.88 7,107.05Benxi Steel & Iron (Group) Thermal Power Development Co., Ltd. 307.73 369.53Guangzhou Free Trade Zone Bengang Sales Co., Ltd. 267.44 267.44
Items Name Ending balance
Beginning balance | ||
Benxi Steel & Iron (Group) Engineering Construction Supervision Co., Ltd. |
71.00Liaoning Hengyi Financial Leasing Co., Ltd. 0.36Liaoning Metallurgy Vocational Technical College 0.30 0.30Bengang Group Finance Co., Ltd. 2.12Liaoning Metallurgical Technician College 36.33Benxi Beiying Steel & Iron (Group) Co., Ltd. 1,824.27Long-term payablesLiaoning Hengyi Financial Leasing Co., Ltd. 1,368.67
9. Government subsidy
(1) Government subsidy related to assets
Category Amount
Item listed on the
balance sheet
Amount recognized in the profit and loss or offset related costs or expenses | Item recognized in the |
profit and loss or offset
related costs or ex pense sCurrent Period
Current Period | Previous Period |
MES Project Special Fund 8,600,000.00 Deferred Income 1,720,000.00 1,720,000.00 Other Income
4,000,000.00 Deferred Income 800,000.00 Other Income
Secon d Batch of National Cleaned Manufacturing Demonstration Project Fund |
Indust rial Enterprise Energy Management Center Construction Demonstration Project |
11,600,000.00 Deferred Income 2,320,000.00 2,320,000.00 Other IncomeEnvir onment Pollution Renovation Project 26,170,000.00 Deferred Income 3,620,000.00 5,234,000.00 Other Income
Envir onment Renovation Project and Regional
Basin Environment Protection Project
2,400,000.00 Deferred Income 340,000.00 500,000.00 Other Income
Envir onment Renovation Project and Regional |
Energy-saving Techno lo gi cal Reform Fiscal Reward Project |
14,770,000.00 Deferred Income 2,954,000.00 Other Income
250,000,000.00 Deferred Income 50,000,000.00 Other Income
High Strength Cold Rolling Steel Renovation Project |
Automobile High-class Electrol ytic Z inc Steel Plate Production Line Project |
41,040,000.00 Deferred Income 8,208,000.00 8,208,000.00 Other Income
Desulfurization Project
21,020,000.00 Deferred Income 4,204,000.00 4,204,000.00 Other Income
Sint ering Machine Residue Heat Usage and |
Wastewater Treatment Plant Renovation |
Project
7,500,000.00 Deferred Income 1,500,000.00 Other Income
24,000,000.00 Deferred Income 4,800,000.00 Other Income
7 130t Boilers Flue Gas Desulfurization Renov a t ion Pr oject of Power Plant |
Treatment and Sal t Extraction Project of Desulfurization Waste Liquid of Coke Plant |
500,000.00 Deferred Income 100,000.00 100,000.00 Other Income
Category Amount
Item listed on the balance sheet | Amount recognized in the profit and loss or offset related costs or expenses | Item recognized in the profit and loss or offset |
Special Fund
14,420,000.00 Deferred Income 2,884,000.00 2,884,000.00 Other Income
Ove rseas Adv anced Technology Introduction |
Bengang Group Co., Ltd. Automotive Board |
Engineering Laboratory Construction Project
1,000,000.00 Deferred Income Other Income
Fund |
R&D for the Third Generation of High-strength Steel for Automobile |
2,900,000.00 Deferred Income Other Income
Gas Desulfurization Renovation Project of
Blast Furnace Plant |
1,000,000.00 Deferred Income 200,000.00 200,000.00 Other IncomeEnvironment Protection Project Spec ial Fund 5,800,000.00 Deferred Income 1,160,000.00 1,160,000.00 Other Income
Wastewater Project of Coke Plant Dongfeng
Area |
9,500,000.00 Deferred Income Other Income
Coal-fired Boiler of Power Plant
High-pressure Workshop |
6,000,000.00 Deferred Income 600,000.00 600,000.00 Other Income
10,000,000.00 Deferred Income 2,000,000.00 Other Income
Power Plant No 3 workshop Heat and Power Cogeneration Renovation Project |
Sintering Machine Energy Saving and |
Environmental Protecti on Project of Blast
5,800,000.00 Deferred Income 1,160,000.00 1,160,000.00 Other IncomeAir Quality Automatic Monitoring System 350,000.00 Deferred Income 70,000.00 70,000.00 Other Income
(2) Government subsidy related to income
Category Amount
Amount recognized in the profit and loss or offset related costs or expenses | Item recognized in |
the profit and loss
or offset related
Current Period Previous PeriodLiaoning Subsidiary for Craftsman 280,000.00 179,997.03 Other Income
costs or expensesXiyuan R es ource ManagementCommittee Compensation
414,300.00 414,300.00 1,472,900.00 Other Income
Xiyuan R es ource Management Committee Compensation |
Coal-fired boiler demolition subsidy |
1,815,000.00 1,815,000.00 Other Income
290,000.00 290,000.00 Other Income
Baoshan District Tax Incentive Policy for Investment Promotion |
Overseas R&D Team Introduction Special Fund |
4,000,000.00 4,000,000.00 Other Income
10. Commitments and Contingencies
(1) Commitments
1. Lease contracts in progress or to be performed and their financial impacts
(1) For the land leased from the Company to the Group, price is RMB 0.594 per Squaremeter per month, and the area of the land is 7,669,068.17 square meters; hence annual rentis RMB 54,665.10 thousand.
(2) For the 2300mm hot rolling product line leased from the Group to the Company, leaseperiod lasts from 1 January 2018 to 31 December 2020. Lease charges are negotiatedbetween the lessor and the lessee based on the original cost, depreciation, and nationaltaxation of the product line, with consideration of conditions of production and equipmentperformance.
(3) For the 1780 hot rolling product line leased from Benxi Beiying Steel & Iron (Group)Co., Ltd. to the Company. ¡°Notice on Bengang Steel Plates Co., Ltd. signing a renewalagreement with Benxi Steel (group) Co., Ltd¡± were adopted on the sixth meeting of theseventh board of directors, it stipulated that the company leased the 1780 hot rollingproduct line from Benxi Beiying Steel & Iron (Group) Co., Ltd., lease period lasts from 1January 2017 to 31 December 2019. Lease charges are negotiated between the lessor andthe lessee based on the original cost, depreciation, and national taxation of the product line,with consideration of conditions of production and equipment performance. The annualrent shall not exceed RMB 150,000,000.00.
2. Irrevocable letter of creditAs at December 31, 2018, the amount of irrevocable letter of credit that was not fulfilled
was 1.275 billion yuan.
(2) Contingencies
At the balance sheet date, no significant contingencies need to be disclosed.
11. Subsequent events(1) Profit distribution after the reporting period
Propos e d pr ofit or di v idend
On April 17, 2019, the resolution of the 24th meeting ofthe 7th Board of Directors passed the 2018 dividenddistribution plan. B ased on the t otal share capital o f the
registration date, a cash dividend of 0.5 yuan (includingtax)
will be distributed to every 10 shares of all |
registered sharehol ders. The estimated cash dividend is
12. Other significant events
(1) Segment information
Since the Company¡¯s main product is steel with other products accounting for only a smallproportion, and the main production base is located in Liaoning area, segmented reporting isnot applicable.
(2)Other material issues that will influence investors¡¯ decisions
1. Financing Lease
For prioritizing the capital structure and exploring financing channel, the Company signed the¡°Financial lease cooperation framework¡± with Liaoning Hengyi Financial Leasing Co., Ltd.with the amount of financial lease not exceeding RMB 5 billion per year. The Company obtainsthe fund through sales and lease back financial lease with interest rate not above the benchmarkinterest rate of loan over the same period published by the People¡¯s bank of China and theinterest rate will be adjusted with the chan ges of benchmark interest rate of loan published by
the People¡¯s bank of China over the lease term. The lease security ratio is not higher than 30%of the lease principal amount. The term of financial lease shall not exceed 12 years.
2. Shares pledged by the Controlling Shareholders
As at 31 December 2018, within the total shares held by the controlling shareholder Benxi Steel& Iron (Group) Co., Ltd., 1,652,095,133 shares are pledged and 45,000,000.00 shares arefrozen.
13. Notes to the financial statements of parent company
(1) Notes receivable and accounts receivable
Item | Ending balance | Beginning balance |
Notes receivable | 3,356,020,598.89 | 3,515,361,992.96 |
Accoun ts receivable | 409,553,059.27 | 482,181,593.45 |
Total | 3,765,573,658.16 | 3,997,543,586.41 |
1. Notes receivable
(1) Notes receivable disclosed by category
Items Ending balance Beginning balanceBank accept ance bill
3,316,192,514.61 | 3,383,242,448.41 |
Commercial acceptance bill
39,828,084.28 | 132,119,544.55 |
Total
3,356,020,598.89 | 3,515,361,992.96 |
(2) The pledged acceptance bill at the year-end
Items The pledged acceptance bill at the year-endBank accept ance bill
Total
124,096,196.40 |
124,096,196.40 |
(3) The amount of Notes receivable endorsed over but not yet matured at the year-end.
Items Derecognized ending balance Underrecognized ending balanceBank accept ance bill
Commercial acceptance bill
Total 11,768,229,905.96
(4) No Notes receivable has been transferred into accounts receivable due to inability of
drawer to meet acceptance bill at the year-end.2. Accounts receivable(1) Accounts receivable disclosed by category
Items
Ending balanceCarrying amount Provision for bad debts
Book valueAmount
Amount
Percentage (%) | Bad debts ratio (%) | |||
Individually significant |
and tested for impairment
47,762,337.18 8.11 47,762,337.18 100.00
individually |
Accounts receivable tested |
for impairment by
541,151,187.11 91.89 131,598,127.84 24.32 409,553,059.27
portfolio |
Other insignificant items |
but tested for impairment
Total 588,913,524.29 100.00 179,360,465.02 409,553,059.27
Items
Beginning balanceCarrying amount Provision for bad debts
Book valueAmount
individually
Percenta
ge (%)
Amount
Percentage (%) | Bad debts ratio (%) | |||
Individually significant and |
tested for impairment
47,762,337.18 6.51 47,762,337.18 100.00
individually | |
Accounts receivable tested |
for im pairment by
685,620,057.01 93.49 203,438,463.56 29.67 482,181,593.45
portfolio |
Other insignificant items |
but tested for impairment
Total 733,382,394.19 100.00 251,200,800.74 482,181,593.45
Receivables individually insignificant but tested for impairment individually
Items
individually
Ending balance
Accounts receivable
Ending balance | ||
Provision for |
bad debts
ratio£¨%£©
Reason
Bad debts | ||
Benxi Nanfen Xinhe Metallurgical |
Co., Ltd.
47,762,337.18 47,762,337.18 100.00
operation.
Benxi Nanfen Xinhe has halt | ||||
Total | 47,762,337.18 | 47,762,337.18 |
Accounts receivable tested for impairment by portfolio
Items
Ending balanceCarrying amount Provision for bad debts Bad debts ratio (%)Within 1 year (inclusive)333,482,302.22
1-2 years (in clusive)56,750,367.45 2,837,518.37 5.00
Items
Ending balanceCarrying amount Provision for bad debts Bad debts ratio (%)2-3 years (in clusive)27,697,384.96 5,539,476.99 20.00
Over 3 years123,221,132.48 123,221,132.48 100.00
Total541,151,187.11 131,598,127.84
(2) Information of provision, reversal or recovery of bad debts of current period.The provision of bad debts of current period is RMB 71,840,335.72.
(3) No accounts receivable has been written off this year.
(4) Top five debtors at the year-end
Company
Ending balanceAmount
Percentage of total accounts r eceivable (%) | Provision for bad d e bts |
No.1
228,538,659.84 38.81No.2
91,185,441.03 15.48 6,792,099.51No.3
47,762,337.18 8.11 47,762,337.18No.4
39,608,495.91 6.73No.5
19,555,323.27 3.32 1,150,024.13Total426,650,257.23 72.45 55,704,460.82
(2) Other receivables
Item | Ending Balance | Beginni ng Balance |
Interest r eceiv ables | 9,815,280.04 | 18,377,036.96 |
Dividen d receivables | ||
Other recei vables | 225,222,111.42 | 376,863,448.72 |
Total | 235,037,391.46 | 395,240,485.68 |
1. Interest receivables(1) Interest receivable disclosed by category
Items Ending balance Beginning balanceDeposit i nterest 9,815,280.04 18,377,036.96
Total 9,815,280.04 18,377,036.96
2. Other receivables(1) Other receivables disclosed by category
Items
Ending balanceCarrying amount Provision for bad debts
Book valueAmount
Amount
Percentage (%) | Bad debts ratio (%) |
and tested for
impairment individually |
tested for impairment by
portfolio |
288,053,726.26 99.40 64,571,614.84 22.42 223,482,111.42
but tes te d f or
impairment individually |
1,740,000.00 0.60 1,740,000.00Total
289,793,726.26 | 100.00 | 64,571,614.84 | 225,222,111.42 |
Items
Beginning balanceCarrying amount Provision for bad debts
Book valueAmount
Amount
Percentage (%) | Bad debts ratio (%) |
and tested for
impairment individually |
tested for impairment by
portfolio |
442,492,865.67 99.61 67,369,416.95 15.22 375,123,448.72
but tes te d f or
impairment individually |
1,740,000.00 0.39 1,740,000.00Total
444,232,865.67 | 100.00 | 67,369,416.95 | 376,863,448.72 |
Other recei vable s tested for impai rment by portfolio using t he met hod of Aging analys is
Items
Ending balanceCarrying amount Provision for bad debts Bad debts ratio (%)Within 1 year (inclusive) 183,173,264.021-2 years (in clusive) 3,202,196.37 160,109.82 5.002-3 years (in clusive) 46,583,451.06 9,316,690.21 20.00Over 3 years 55,094,814.81 55,094,814.81 100.00
Total 288,053,726.26 64,571,614.84
2. Information of provision, reversal or recovery of bad debts of current period.
Reversal of bad debts for other receivable in current period is RMB 2,797,802.11.
3. No other receivables have been written off this year.
4. Other receivables disclosed by Nature
Nature Ending balance Beginning balanceCurre nt Acc ounts 278,547,233.77 435,666,187.53Expor t tax rebateOthers 11,246,492.49 8,566,678.14
Total 289,793,726.26 444,232,865.67
5. Top five debtors at the year-end
Company
Notes o r content Amount Aging
Percentage of |
total other
receivables(%) | Provision |
for
No.1 Accounts74,178,775.96
bad d e bts
Within 1 year25.60
No.2 Accounts14,664,372.10
2-3 years5.06
2,932,874.42
No.3 Accounts7,718,029.34Within 1 year2.66
No.4 Accounts4,341,257.182-3 years1.50
868,251.44
No.5 Accounts4,333,839.78Within 1 year1.50
Total
105,236,274.36
36.32
3,801,125.86
(3) Long-term equity investment
Items
Ending balance Beginning balanceCarrying amount
Impairm
ent
Book value Carrying amount
Impairment | Impairment |
Book valueSubsidiaries 2,016,281,902.16
2,016,281,902.16
1,756,981,902.16
1,756,981,902.16
Total 2,016,281,902.16
2,016,281,902.16
1,756,981,902.16
1,756,981,902.16
Details of investment in subsidiaries
Name of entity Beginning balance Increase
Decre
ase
Endingbalance
Impairm
ent ofcurrentperiod
Ending
balance
ofimpair
ment | ||
Guangzhou Bengang Steel & Iron Trading Co., Ltd. |
1,000,000.00
29,000,000.00
30,000,000.00
Shan ghai Bengang Metallurgy Science and Technology Co., Ltd. |
19,200,000.00
10,800,000.00
30,000,000.00
Bengang Steel Plates Liaoyang Pellet Co., |
Ltd.
529,899,801.38
529,899,801.38
Dalian Benruitong Automobile Material Technology Co., Ltd. |
65,000,000.00
65,000,000.00
Bengang Posco Cold-rolled Sheet Co., Ltd. 1,019,781,571.10
1,019,781,571.10
Changchun Bengang Steel & Iron Sales Co., |
Ltd.
-1,355,124.64 | 29,500,000.00 | 28,144,875.36 | ||||
Harbin Bengang Economic and Trading Co., Ltd. |
423,398.23
29,500,000.00
29,923,398.23
Nanjing Bengang Materials Sales Co., Ltd. 2,081,400.65
2,081,400.65
Wuxi Bengang Steel & Iron Sales Co., Ltd. 936,718.57
29,000,000.00
29,936,718.57
Xiamen Beng ang Steel & Iron Sales Co., |
Ltd.
1,095,711.66
1,095,711.66
Yantai Bengang Steel & Iron Sales Co., Ltd .19,600,329.41
29,500,000.00
49,100,329.41
Tianjin Bengang Steel & Iron Trading Co., Ltd. |
33,318,095.80
27,000,000.00
60,318,095.80
Benxi Beng ang Steel Sales Co., Ltd 5,000,000.00
5,000,000.00
5,000,000.00
Shen yang Beng ang Metallurgical Science and Technology Co., Ltd. |
25,000,000.00
30,000,000.00
5,000,000.00
Chongqing Liaoben Steel & Iron Trade Co., Ltd. |
25,000,000.00
30,000,000.00
New Materials Technology Co., Ltd.
51,000,000.00
Bengang Baojin (Shenyang) Automobile |
25,000,000.00
76,000,000.00
Total 1,756,981,902.16
259,300,000.00
2,016,281,902.16
(4) Operating income and operating cost
Items
2018 2017Revenue Cost Revenue CostPrinci pa l bus iness 45,295,861,844.09 41,702,339,825.46 37,093,245,286.79 33,564,848,835.71Other business 5,129,217,403.65 4,479,588,955.97 4,145,880,056.45 3,515,857,369.27
Total 50,425,079,247.74 46,181,928,781.43 41,239,125,343.24 37,080,706,204.98
(5) Income on investment
Items 2018 2017Income from long-term equity investment (cost method)
102,074,634.76Income from bank short-term financial products 5,041,397.26 3,294,593.14
Total 5,041,397.26 105,369,227.90
15. Supplementary information
(1) Details of non-recurring profit and loss
Items Amount NotesProfit or loss from disposal of non-current assets -148,409,630.35
Government subsidy attributable to profit and loss of current period
(except such government subsidy closely related to the company's normalbusiness operation, meeting the regulation of national policy and enjoyedconstantly in certain quota or quantity according to a certain standard)
86,085,297.03
Profit or loss from investment or assets entrusted to othe rs 5,041,397.26Profit or loss from debt restructuring
Government subsidy attributable to profit and loss of current periodNet profit or loss of subsidiary from the beginning to consolidation dategained from consolidation under same control
Other non-operating revenue and expenditure other than above items 771,191.90Impact of income tax -22,141.38Impact of minority interests-38,018.98
Total -56,571,904.52
(2) Net asset yield and earnings per share
Profit in the Rep orting Period
Weighted averagenet assets y ield (%)
Ear nings per share (Yuan)Basic EPS Diluted EPSNet profit attributable to ordinary shareholders5.64 0.272
0.272
Net profit attributable to ordinary shareholders after deducting non-recurring profit and loss |
5.94 0.287
0.287
(3) Differences between Domestic and Foreign Accounting Standards
1. Differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chineseaccounting standards.¡Ì Applicable ¡õ Not appli cable
Unit: Yuan
Net profit attributable to the shareholders of the
listed company
Net assets
listed company2018 2017 Ending balance Beginning balanceAccording to Chineseaccounting standards
1,036,493,236.07
attributable to the shareholders of the
1,600,110,229.77
19,126,258,116.67
14,315,588,729.00
Items and amounts adjusted according to IFRS: No difference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chineseaccounting standards.¡õ Applicable ¡Ì Not applicable
3. Illustrations for the differences in accounting data between domestic and foreign accounting standards, and thenames of the overseas institutions should be indicated if the differences in the data audited by overseas auditinstitutions have been adju s ted¡õ Applicable ¡Ì Not applicable
(4) Others
XII. Documents available for inspection
1, Fin ancial Statements signed and stamped by the legal representative, CFO, and accounting manager;2, All of the original copies of documents and announcements that have been published on China SecuritiesJournal, Securities Times, and Hong Kong Commercial Daily.;3, Original copy of the Auditors¡¯ Report under the seal of the CPA and signed by and under the seal of certifiedaccountants¡£