BengangSteelPlatesCo.,Ltd.
AnnualReport2022
【DisclosureTime】
2022AnnualReport
SECTIONI.IMPORTANTNOTICE,TABLEOFCONTENTS,ANDDEFINITIONS
TheBoardofDirectors,theSupervisoryCommitteeandtheDirectors,membersoftheSupervisoryCommitteeandseniormanagementoftheCompanyguaranteethattherearenomisrepresentationsormisleadingstatements,ormaterialomissionsinthisreport,andindividuallyandcollectivelyacceptfullresponsibilityfortheauthenticity,accuracyandintegrityoftheinformationcontainedinthisreport.
LiYan,thepersoninchargeoftheCompany,ZhengZhengli,thepersoninchargeofaccountingwork,andSunYanbin,thepersoninchargeoftheaccountingdepartment(accountingofficerincharge),havepledgedtheauthenticity,accuracyandintegrityoftheattachedfinancialstatements.AllthemembersoftheBoardofDirectorsattendedtheboardmeetingonwhichthisreportwasexamined.
Theprospectivestatementscontainedinthisannualreportdonotconstituteanysubstantialcommitmenttotheinvestors.Investorsshouldpayattentiontotherisksattachedtoinvestmentdecisions.ThisreportispreparedinbothofChineseandEnglish.TheChineseversionshallprevailwhenthereareanycontroversialstatementsinthetwoversions.
TheCompanyhasdescribedtherisksandcountermeasuresindetailinthisreport,pleaserefertoSectionIII.XI"RiskstotheCompanyandcountermeasures".ChinaSecuritiesJournal,SecuritiesTimes,thewebsiteofShenzhenStockExchangeandCninfoWebsitearethemediaselectedbytheCompanyforinformationdisclosure.AllinformationoftheCompanyshallbebasedontheinformationpublishedintheabovedesignatedmedia,andinvestorsareadvisedtopayattentiontotheinvestmentrisks.
TheCompanyplansnottopaycashdividends,nottosendbonusshares,andnottoincreaseitssharecapitalbytransferringitspublicreserves.
TableofContents
SectionI.IMPORTANTNOTICE,TABLEOFCONTENTS,ANDDEFINITIONS..............................错误！
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SectionII.COMPANYPROFILEANDMAINFINANCIALINDEX................................................错误！
未定义书签。SectionIII.MANAGEMENTDISCUSSIONANDANALYSIS........................................................错误！未定义书签。
SectionIV.CORPORATEGOVERNANCE.................................................................................错误！
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SectionV.ENVIRONMENTALANDSOCIALRESPONSIBILITY...................................................60
SectionVI.IMPORTANTEVENTS...........................................................................................66
SectionVII.STATUSOFSHARECAPITALCHANGESANDSHAREHOLDERS...............................90
SectionVIII.STATUSOFPREFERREDSHARES.........................................................................98
SectionIX.STATUSOFCONVERTIBLECORPORATEBONDS....................................................99SectionX.FINANCIALREPORT..............................................................................................错误！
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ReferenceFileDirectory
1.FinancialstatementscontainingthesignaturesandsealsofthepersoninchargeoftheCompany,thepersoninchargeofaccountingworkandthepersoninchargeoftheaccountinginstitution;
2.Theoriginalauditreportcontainingthesealoftheaccountingfirmandthesignatureandsealofthecertifiedpublicaccountant.
3.TheoriginalcopiesofallCompanydocumentsandannouncementsthathavebeenpubliclydisclosedduringthereportingperiod;
4.Annualreportspublishedinothersecuritiesmarkets.
Definition
| Interpretationitems | Refersto | Interpretationcontent |
| BengangSteelPlates,Company,theCompany,listedcompany | Refersto | BengangSteelPlatesCo.,Ltd. |
| Ansteel | Refersto | AnsteelGroupCo.,Ltd. |
| BengangGroup | Refersto | BengangGroupCo.,Ltd. |
| BenxiIron&Steel,BengangCompany | Refersto | BenxiIron&Steel(Group)Co.,Ltd. |
| SSE | Refersto | ShenzhenStockExchange |
| LiaoningProvincialState-assetAdministration | Refersto | LiaoningState-ownedAssetSupervisoryandManagementCommittee |
| BengangPuxiang | Refersto | BengangPuxiangCoolRollingSteelSheetCo.,Ltd. |
| AnsteelFinanceCompany | Refersto | AnsteelGroupFinanceCo.,Ltd. |
| Angang | Refersto | AngangSteelCompanyLimited |
| Vanadium&TitaniumCompany | Refersto | PangangGroupVanadium&TitaniumResourcesCo.,Ltd. |
SECTIONII.COMPANYPROFILEANDMAINFINANCIALINDEX
I.Companyinformation
| Stockabbreviation | BengangSteelPlates,BengangSteelPlatesplateB | Stockcode | 000761,200761 |
| Stockexchangeforlisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 本钢板材股份有限公司 | ||
| AbbreviationofCompanynameinChinese | 本钢板材 | ||
| CompanynameinEnglish(ifany) | BENGANGSTEELPLATESCO.,LTD. | ||
| AbbreviationofCompanynameinEnglish(ifany) | BSP | ||
| Legalrepresentative | LiYan | ||
| Registrationaddress | No.16,RenminRoad,PingshanDistrict,BenxiCity,LiaoningProvince | ||
| Postalcodeofregistrationaddress | 117000 | ||
| ChangesintheCompany'sregisteredaddresshistory | None | ||
| Officeaddress | No.1-1,SteelRoad,PingshanDistrict,BenxiCity,LiaoningProvince | ||
| Postalcodeofofficeaddress | 117000 | ||
| Companywebsite | None | ||
| zhengzhengli76@126.com | |||
II.Contactpersonandcontactinformation
| SecretaryofBoardofDirectors | RepresentativeofSecuritiesAffairs | |
| Name | ZhengZhengli | |
| Contactaddress | No.1-1,SteelRoad,PingshanDistrict,BenxiCity,LiaoningProvince | |
| Telephone | 024-47827003 | |
| Fax | 024-47827004 | |
| zhengzhengli76@126.com |
III.Informationdisclosureandplaceforconsulting
| WebsiteofthestockexchangewheretheCompanydisclosestheannualreport | http://www.SSE.cn |
| NameandwebsiteofthemediainwhichtheCompanydisclosestheannualreport | ChinaSecuritiesJournal,SecuritiesTimes,http：//www.cninfo.com.cn |
| Placeforinquiryoftheannualreport | SecretaryOfficeoftheBoard,BengangSteelPlatesCo.,Ltd. |
IV.Changeofbusinessregistration
| Uniformsocialcreditcode | 91210000242690243E |
| Changesofprincipalbusinessactivitiessincelisting(ifany) | Nochange |
| Historicalchangesincontrollingshareholders(ifany) | OnAugust20th,2021,LiaoningState-ownedAssetSupervisoryandManagementCommittee,theformeractualcontrolleroftheCompany,andAnsteelGroupCo.,Ltd.signedtheAgreementbetweenLiaoningState-ownedAssetSupervisoryandManagementCommitteeandAnsteelGroupCo.,Ltd.ontheFreeTransferofBengangGroupCo.,Ltd.State-ownedEquity,inwhichLiaoningProvincialState-assetAdministrationtransferred51%ofitsequityinterestinBengangGroupCo.,Ltd.toAnsteelwithoutcompensation.OnOctober12th,2021,thechangeofbusinesswascompletedandAnsteelGroupCo.,Ltd.becametheindirectcontrollingshareholderoftheCompany.ThedirectcontrollingshareholderoftheCompanyremainsunchangedasBenxiIron&Steel(Group)Co.,Ltd. |
V.Otherrelevantinformation
AccountingfirmengagedbytheCompany
| Nameoftheaccountants’firm | ShineWingCertifiedPublicAccountantsLLP |
| Addressoftheaccountants’firm | 8/F,BlockA,FuHuaMansion,No.8,ChaoyangmenBeidajie,DongchengDistrict,Beijing,100027,P.R.China |
| Nameofsignatoryaccountants | FanJianping,ChenJian |
SponsorengagedbytheCompanytoconductsustainedsupervisionduringthereportingperiod?Applicable□Notapplicable
| Nameofthesponsorinstitution | Addressofthesponsorinstitution | Nameofthesponsorrepresentative | Sustainedsupervisionperiod |
| GuotaiJunanSecuritiesCo.,Ltd. | No.768NanjingWestRoad,Jing'anDistrict,Shanghai | YuanYechen,YangKeyi | August5th,2020toDecember31st,2021 |
FinancialconsultancyinstitutionengagedbytheCompanytoconductsustainedsupervisionduringthereportingperiod
□Applicable?NotapplicableVI.Mainaccountingdataandfinancialindex
WhethertheCompanyisrequiredtoretroactivelyadjustorrestateprioryears'accountingdata
□Yes?No
| FY2022 | FY2021 | Increaseordecreasecomparedwiththepreviousyear | FY2020 | |
| Operatingincome(RMB) | 62,616,621,627.60 | 77,912,144,981.46 | -19.63% | 48,684,792,685.58 |
| Netprofitattributabletoshareholdersofthelistedcompany(RMB) | -1,232,976,557.37 | 2,500,582,902.58 | -149.31% | 384,252,740.78 |
| Netprofitafternon-recurringgainorlossattributabletoshareholdersofthelistedcompany(RMB) | -1,416,415,028.51 | 2,517,758,656.14 | -156.26% | 381,469,784.99 |
| Netcashflowfromoperatingactivities(RMB) | 1,276,362,965.56 | 413,473,454.04 | 208.69% | -2,039,000,213.29 |
| Basicearningsper | -0.300 | 0.600 | -150.00% | 0.1000 |
| FY2022 | FY2021 | Increaseordecreasecomparedwiththepreviousyear | FY2020 | |
| share(RMB/share) | ||||
| Dilutedearningspershare(RMB/share) | -0.300 | 0.496 | -160.48% | 0.1000 |
| Weightedaveragereturnonnetassets | -5.68% | 11.88% | -17.56% | 1.90% |
| EndofFY2022 | EndofFY2021 | Increaseordecreasecomparedwiththeendofthepreviousyear | EndofFY2020 | |
| Totalassets(RMB) | 44,114,652,440.64 | 55,147,123,275.30 | -20.01% | 65,007,470,749.20 |
| Netassetsattributabletoshareholdersoflistedcompanies(RMB) | 18,789,151,216.62 | 22,500,969,014.30 | -16.50% | 21,018,296,389.10 |
Thelowerofthecompany’snetprofitbeforeandafterthedeductionofnon-recurringgainsandlossesinthemostrecentthreefiscalyearsisnegative,andtheauditreportofthemostrecentyearshowsthatthecompany’sabilitytocontinueoperationsisuncertain.
□Yes?NoThelowerofthenetprofitbeforeandafterdeductingnon-recurringgainsandlossesisnegative
□Yes?NoVII.Differencesinaccountingdataunderdomesticandforeignaccountingstandards
1.DifferencesbetweennetprofitandnetassetsdisclosedinfinancialreportspreparedunderIFRSandChineseaccountingstandards.
□Applicable?NotapplicableTherearenodifferencesbetweennetprofitandnetassetsdisclosedinfinancialreportspreparedunderIFRSandChineseaccountingstandardsduringthereportingperiod.
2.Differencesinnetprofitandnetassetsbetweenfinancialreportsdisclosedsimultaneouslyin
accordancewithforeignaccountingstandardsandinaccordancewithChineseaccountingstandards
□Applicable?NotapplicableTherearenodifferencesbetweenthenetprofitandnetassetsoftheCompanyinthefinancialreportsdisclosedinaccordancewithforeignaccountingstandardsandinaccordancewithChineseaccountingstandardsinthereportingperiod.
VIII.MainfinancialindexbyquarterUnit:RMB
| Firstquarter | Secondquarter | Thirdquarter | Fourthquarter | |
| Operatingincome | 16,621,491,876.35 | 18,393,685,428.63 | 12,824,043,663.20 | 14,777,400,659.42 |
| Netprofitattributabletoshareholdersofthelistedcompany | 433,939,380.46 | 127,795,996.95 | -819,660,438.85 | -975,051,495.93 |
| Netprofitafternon-recurringgainorlossattributabletoshareholdersofthelistedcompany | 423,326,955.85 | 98,892,471.08 | -850,929,263.53 | -1,087,705,191.91 |
| Netcashflowfromoperatingactivities | 289,055,672.76 | -61,603,830.55 | 1,632,616,396.48 | -583,705,273.13 |
Whethertheabovefinancialindicatorsorthesumofsuchindicatorsaresignificantlydifferentfromtherelevantfinancial
indicatorsinthedisclosedquarterlyandsemi-annualreportsoftheCompany
□Yes?No
IX.Non-recurringgainorlossitemsandamounts
?Applicable□NotapplicableUnit:RMB
| Item | FY2022amount | FY2021amount | FY2020amount | Description |
| Gainorlossondisposalofnon-currentassets(includingtheoffsettingportionoftheprovisionforassetimpairment) | 3,648,546.62 | -60,100,706.71 | -92,695,525.95 | |
| Governmentsubsidiesincludedincurrentprofitorloss(exceptgovernmentsubsidiesthatarecloselyrelatedtotheCompany'snormalbusinessoperations,inaccordancewithnationalpoliciesandcontinuouslyenjoyedinaccordancewithcertainstandardsandinfixedorquantitativeamounts) | 72,300,830.48 | 66,345,976.64 | 81,193,591.56 | |
| Gainsorlossesfromentrustingotherstoinvestormanageassets | 2,879,850.07 | 2,436,869.33 | 0.00 | |
| Gainsandlossesfromdebtrestructuring | 1,274,270.98 | 32,800.02 | ||
| Gainsorlossesfromchangesinfairvalueoffinancialassetsandliabilitiesheldfortrading,andinvestmentincomefromthedisposaloffinancialassetsandliabilitiesfortradingandavailable-for-salefinancialassets,exceptforeffectivehedgingactivitiesrelatedtotheCompany'snormalbusinessoperations | -37,205,991.34 | 13,500,000.00 | ||
| Non-operatingincomeandexpensesotherthantheitemsmentionedabove | 13,507,766.62 | 5,176,371.41 | 1,592,660.62 | |
| Otherprofitorlossitemsthatmeetthedefinitionofnon-recurringgainorloss | 92,174,927.78 | |||
| Less:Incometaxeffect | 1,956,581.46 | -5,969,319.73 | 786,094.20 | |
| Effectofminorityinterests(aftertax) | 391,139.95 | -202,407.38 | 54,476.26 | |
| Total | 183,438,471.14 | -17,175,753.56 | 2,782,955.79 | -- |
Detailsofotherprofitandlossitemsthatmeetthedefinitionofnon-recurringprofitorloss:
?Applicable□Notapplicable
?Descriptionof"otherprofitandlossitemsthatmeetthedefinitionofnon-recurringprofitorloss"anditemsthataredefinedasnon-recurringprofitorlossaccordingtothenatureandcharacteristicsoftheCompany'snormalbusinessoperations
| Item | Amount | Reason |
| Otherprofitandlossitemsthatmeetthedefinitionofnon-recurringprofitorloss | 4,154,883.39 | GainarisingfromremeasurementoftheremainingequityinterestatfairvalueafterlosingcontroloverShenyangBaojin |
| Otherprofitandlossitemsthatmeetthedefinitionofnon-recurringprofitorloss | 88,020,044.39 | Investmentincomefromthedisposaloflong-termequityinvestmentinLiaoyangQiutuan |
Explanationofthedefinitionofnon-recurringitemsofprofitorlosslistedintheExplanatoryAnnouncementNo.1onDisclosureofInformationbyCompaniesIssuingPublicSecurities-Non-recurringProfitorLossasrecurringitemsofprofitorloss
□Applicable?NotapplicableTheCompanydoesnothaveanynon-recurringitemsofprofitorlosslistedinExplanatoryAnnouncementNo.1onDisclosureofInformationbyCompaniesIssuingPublicSecurities-Non-recurringProfitorLossthataredefinedasitemsofrecurringprofitorloss.
SECTIONIII.MANAGEMENTDISCUSSIONANDANALYSISI.Industrysituationofthecompanyduringthereportingperiod
TheCompanybelongstothesteelindustry,whichisanimportantbasicindustryofChina'snationaleconomy,animportantsupportforbuildingamodernandpowerfulcountry,andanimportantareaforachievinggreenandlow-carbondevelopment.In2022,thesteelindustryoperatingenvironmentismorechallenging,downstreamdemandislessthanexpected,energypricesarefirm,steelpriceshavefallen,theindustry'seconomicbenefitshavedeclined,theglobalsteelmarketisinthedoldrums,andthebenefitsofsteelcompanieshavefallenyearonyear.First,steelproductionfellyear-on-yearandconsumptionintensityweakened.AccordingtotheNationalBureauofStatistics,thenationalpigironandcrudesteelproductionin2022was863.83milliontonsand10,133billiontons,decreasingby0.8%and2.1%year-on-year,respectively.Second,steelimportandexportvolumeroseandfell,accordingtotheGeneralAdministrationofCustomsdata,thecountry'scumulativeexportsofsteelwere
67.32milliontons,anincreaseof0.9%year-on-year.Cumulativesteelimportsof10.57milliontons,adecreaseof25.9%.Third,steelpricesroseslightlyattheendoftheyear,accordingtotheChinaIronandSteelIndustryAssociationmonitoring,theChinaSteelCompositePriceIndexwas113.25pointsattheendofDecember,up4.32points,or4.0%.Fourth,fuelcostsrosesignificantly,andthecumulativeimportoforeremainedfalling.AccordingtodatafromtheGeneralAdministrationofCustoms,thenationalimportofironoreanditsconcentratesamountedto1.10686billiontons,adecreaseof1.5%year-on-year.2023isthebeginningoftheyeartofullyimplementthespiritofthe20thPartyCongress,whichisalsotheimplementationofthe"14thFive-YearPlan"tocarryontheimportantyear,China'seconomyintheexpansionofdomesticdemandstabilizationpolicywillgraduallyreturntothenormalgrowthtrack.Atthesametime,atatimewhenuncertaintywasthenorm,largefluctuationsinsteelpricesanddynamicchangesinthemarketenvironmentandproductionconditionshavesignificantlyincreasedthecomplexityofbusinessdecisions,puttinghigherrequirementsontheCompany'soperationalplanninganddecision-makingcapabilities.Withthedomesticoptimizationoftheepidemicpreventionandcontrolpolicy,thedomesticmarketisexpectedtoimprove,steelpricescontinuetorise,andthedomesticmarketforsteelisexpectedtoimprove.Atthesametime,duetotheriseindomesticsteelpricesandthesharpappreciationoftheRMB,China'sexportoffersishigher,thepriceadvantagehasdeclined,andshort-termsteelexportswillbeunderpressure.Inaddition,China'ssteelindustryisstillfacingthe"double"constraintsofpromotingcapacityreductionandreplacement,aswellaslow-carbondevelopmentandincreasedenergyefficiency.Thecountryhasputforththegoalofstrivingtoachieveacarbonpeakby2030andcarbonneutralityby2060,whichhasputforwardnewrequirementsforthedevelopmentofthesteelindustryandstimulatednewmomentumforthehigh-qualitydevelopmentofthesteelindustry.II.MainbusinessoftheCompanyduringthereportingperiod
1.Mainbusiness,mainproductsandtheirusesDuringthereportingperiod,thecompany’smainbusinessesincludeironandsteelsmelting,rollingprocessing,powergeneration,coalchemicalindustry,specialsteelprofiles,railways,importandexporttrade,scientificresearch,productsales,etc.Theintroductionofstate-of-the-artequipmentandtechnologytoimplementequipmentupgradesforthemainironandsteelindustryandhavebuiltahigh-qualitysteelbase,formedmorethan60varieties,morethan7,500specificationsofproductseries,theproportionofhighvalue-addedandhigh-techproductsreachedmorethan80%.Theleadingproductsforautomotivesurface
panels,homeappliancepanels,petroleumpipelinesteel,containerpanels,shipboard,etc.arewidelyusedinthefieldsofautomobiles,homeappliances,petrochemicals,aerospace,machinerymanufacturing,energyandtransportation,buildingdecorationandmetalproducts,andareexportedtomorethan60countriesandregions.
2.Businessmodel
Procurementmode:TheCompany'sprocurementmodeincludesdomesticprocurementandforeignprocurement.Domesticmaterialprocurementiscarriedoutthroughcentralizedprocurement,unifiedbidding,pricecomparisonandnegotiation.Theprocurementofforeignmaterialsiscarriedoutthroughthemodesoflong-associationprocurement,directprocurement,openandinvitedbidding,inquiryandcomparison,competitivenegotiationandnegotiationprocurement,whicharemainlyrepresentedbyBenxiIron&Steel(Group)InternationalEconomicandTradingCo.,Ltd.Salesmodel:TheCompany'ssalesaredividedintodomesticsalesandforeignsales,domesticsalesaremainlybasedonagreementaccountsales,saleschannelsarebasedondirectsupply,circulationandengineering,organizingcontractordersinadvancebymonth,andorganizingrequiredproductionaccordingtocontractorders.Accordingtodifferentregions,differentchannels,differentindustrycharacteristics,theimplementationoffuturesmode,oneplantandonepolicy,indexpricingandotherpricepolicysalesmethod;exportsalesmainlyusetheBenxiIron&Steel(Group)InternationalEconomicandTradingCo.,Ltd.overtheyearsintheinternationaltradeaccumulatedstrongmarketingnetwork,theCompany'sproductsexportedbyitsagent,andpayBenxiIron&Steel(Group)InternationalEconomicandTradingCo.,Ltd.agencyfees.
3.Mainperformancedrivers
TheCompanyhasseizedafavorableopportunityduringAnben’srestructuring,carriedoutthethree-yearactionofstate-ownedenterprisereformandthreesystematicreforms,closelyfocusedonAnsteel's"7531"strategicgoalandBengangGroup's"1357"workingguidelines,experiencedthetransformationofdeepeningreform,therefinementofmarketdeclineandthechallengeofepidemicpreventionandcontrol,continuouslydeepenedthepotentialandimprovedagainstthestandard,andgatheredthepowerfulenergyofallcadresandworkersto"leadthenewAnsteel,supportthenewAnsteel",andfullypromotedtheimplementationof"1+2+3"importantwork.Establishamanagementandcontrolmodelbasedoncomprehensivebudgetandplannedvaluemanagement,centeredonefficiency,withsalesastheleader,financeasthecore,benchmarkingasthegrasp,andtheconsistentmanagementoftheautomobileboardastheleader,closelylinking"sales,researchandproduction",vigorouslypromotingtheconsistentmanagementofthewholeprocessquality,firmlyestablishingthesenseofresponsibilityof"seekingbenefitsfromreformandpromotingrevitalizationbyreform",adheretotheinnovationdrive,createa"source"oforiginaltechnology,adheretothestrategyof"talentdevelopment",enhancethepreciseincentiveroleofjobperformanceassessment,acceleratethepaceofinnovationanddevelopmenttobuild"ahighlycompetitiveinternationalhigh-qualityplatebaseledbyautomotiveplates",andachievehard-wonproductionandmanagementandenterprisereformperformance.Duringthereportingperiod,therewasnochangeintheCompany'smainbusinessorbusinessmodel.
III.Analysisoncorecompetitiveness
TheCompanyadherestotheinnovation-drivenand"quality+service"developmentmodel,withthestrategicgoalofbuildinganinternationallycompetitivehigh-qualityplatebase,adomesticfirst-classspecialsteelbaseandacomprehensiveserviceprovider,andexertsastrategicleadingrole,focusingonimprovingqualityandefficiency,Intermsofproductupgrades,technologicalinnovation,greenandintelligentmanufacturing,wewillinnovatemanagementideas,enhancethecorecompetitivenessofenterprises,andpromoteenterprisestoachievehigh-quality,greenandintelligentdevelopment.
1.Manufacturingcapabilities.Focusingoneconomicbenefits,theCompanyfirmlygraspsmarketopportunities,implementstheproductionandmanagementideaof"theupperprocessfollowsthelowerprocessandthewholeprocessfollowsthemarket",adherestotheinnovation-drivenand"manufacturing+service"strategies,seizesmarketopportunities,efficientlycooperateswithproductionlinesandthemarket,continuouslyoptimizestheproductstructure,andcontinuouslyimprovestheCompany'sprofitability.Deepenthebenchmarkinganddiggingpotential,increasecostcontrol,absorbtheimpactofupstreampriceincreases,andcontinuouslyimprovemanagementefficiency.
2.Equipmenttransformationandupgrading.In2022,theCompanyissuedafixedassetinvestmentplanofRMB1.82billion.Implementedtheupgradingandtransformationofelectricfurnaceofspecialsteel,transformationofspecialsteelrollingmill,environmentalprotectiontransformationofstorageonecoalyard,environmentalprotectiontransformationofstoragetwocoalyard,acidproductionfromdesulfurizationwasteliquidinthemainplantofplateironmaking,upgradingandtransformationofdryquenchingboilerNo.1ofcoketwointhemainplantofplateironmaking,ultra-lowemissiontransformationof360m2sinteringfluegasdesulfurizationanddenitrification,ultra-lowemissiontransformationof2x265m2sinteringfluegasdesulfurizationanddenitrification,ultra-lowemissiontransformationof566m2sinteringfluegasdesulfurizationanddenitrification,etc.andkeyprojectsrepresentanewroundoflarge-scaletechnicaltransformationandultra-lowemissiontransformation.Atpresent,thespecialsteelelectricfurnaceupgradeprojecthasputintooperationanelectricfurnaceandsupportingrefiningequipmentandcontinuouscastingequipment.
3.Newproductdevelopmentcapabilities.Theannualplanistodevelop38newproducts,theactualcompletionof41,including14gradesofcold-rolledproducts,19gradesofhot-rolledproductsand8gradesofspecialsteelproducts.Successfullydevelopedhot-dipgalvanizedduplexsteelCR330Y590T-DHtofillthegapintheresearchfieldofgalvanizedDHsteel.Cultivated"widehot-rolledhigh-strengthsteelseriesproducts",thefirstdomesticuniqueextremewidth(2000mm)thinspecificationhigh-strengthtanksteel550GT-TH,exclusivesupplyintheregionalmarket.
4.Technologicalinnovationability.Intermsofscientificandtechnologicalcooperation,theCompanyhassigned9externalcontractswiththeUniversityofScienceandTechnologyBeijing,theChineseSocietyforMetals,theInstituteofMetallurgicalIndustryInformationStandards,theInstituteofMetallurgicalIndustryPlanningandResearch,etc.TheCompanyhasalsocarriedout10cooperativeprojectswithDalianUniversityofTechnology,NortheasternUniversityandLiaoningUniversityofScienceandTechnology,whicharemembersofthe"LiaoningIronandSteelIndustryUniversity-ResearchInnovationAlliance".Intermsofintellectualpropertyrights,itparticipatedin4nationalstandards,hosted2groupstandardsandparticipatedin1groupstandard.Thenumberofacceptedpatentsintheyearwas283,andthenumberofauthorizedpatentswas136,amongwhich31wereauthorizedinventionpatents.Intermsofscientificandtechnologicalachievements,"2000MPaHotPressFormingSteel"wonthe"FirstPrizeofTechnicalInnovationinAutomotiveLightweightingApplicationofChinaSocietyofAutomotiveEngineering","ResearchandDevelopmentofLow-CostHighStrengthCorrosionResistantSteelSeriesforLandTransportationContainers"wonthe"SecondPrizeofScienceandTechnologyofChinaSocietyofCorrosionandProtection","DevelopmentofHigh-QualityEconomicNbMicroalloyedAutomotiveGalvanizedDuplexSteelSeries"wonthe"SecondPrizeofTechnicalProgressAwardofCITICNiobiumSteel",and"ResearchonStabilityImprovementofRollBearingBlockinHotRollingMill"wonthe"FirstLineWorkerAwardofAnsteelIronandSteelScienceandTechnologyAward".
5.Greendevelopmentcapability.AccordingtothenationalandLiaoningProvinceonthesteelindustryandlocalultra-lowemissionpolicyrequirements,theCompanyisbravetoassumesocialresponsibility,relyingonprofessionalplanningandresearchinstitutions,thepreparationofenvironmentalprotectiontoenhancetheplanningandannualimplementationplan,2023planningandsortingoutatotalofmorethan20ultra-lowemissionprojects,haveallbeenincludedintheinvestmentplan,haslaunchedtheconstructionorpreliminarywork,throughthetransformationoftheyard,fluegasemissiontreatment,desulfurizationanddenitrificationofultra-lowemissiontransformationandothercomprehensiveexcellentimprovements,and
strivetoachieveultra-lowemissionbytheendof2023,theCompanywillbecomeaharmoniousdevelopmentwiththecityof"ecologicalsteelplant".
6.Intelligentmanufacturingcapabilities.TheCompanystronglypromotestheconstructionofinformationtechnology,intelligenceandotherintelligentmanufacturing-relatedprojects,andhascarriedoutintelligenttransformationin2022,suchastheintegrationofinformationsystemconstruction,theoverallimprovementofsteelindustrymanagementandinformationsupport,thecentralizedcontrolofplateenergy,blastfurnaceintelligentmanagementsystem,steelindustrydailycostmanagementsystem,andtheimprovementofproductionandmanufacturingmanagementsystem.Keeppacewiththedevelopmentofenterprisesintheeraofbigdatatoachievehigh-qualitydevelopment.
IV.Managementdiscussionandanalysis
1.General
In2022,theannualproductionofpigironwas10.003milliontons,anincreaseof165,300tons;crudesteelproductionwas
10.552milliontons,anincreaseof114,000tons;hot-rolledplateproductionwas13.2874milliontons,anincreaseof70,500tons;cold-rolledplateproductionwas5.948milliontons,andspecialsteelproductionwas443,400tons.Reviewingtheworkofthewholeyear,itismainlyreflectedinthefollowingaspects:
(1)Production-orientedtooperation-orientedtransformation,theCompany'soperationqualitycontinuestoimproveThemanagementandcontrolmodelbasedoncomprehensivebudgetandplannedvaluemanagement,centeredonefficiency,salesastheleader,financeasthecore,benchmarkingasthegrip,andtheconsistentmanagementoftheautomobileboardastheleaderhasbeenestablished,andthemanagementconsciousnessofallstaffhasbeenenhancedsignificantly.TheCompanyintensifieditsmarketdevelopmenteffortsandsetup12technicalserviceteamsforprioritycustomerstoprovidepersonalizedservices.Closelylinking"sales,researchandproduction",theannualoutputofautomobileplatesreachedarecordhigh.Strengthenfinancialcontrol,improvetheefficiencyofcapitaloperationinallaspects,andsignificantlyreducethebalanceof"twofunds"comparedwiththebeginningoftheyear.Vigorouslypromotetheconsistentmanagementofthewholeprocessquality,andthe"qualitystorm"iseffective.Buildastarproductionline,equipmentoperationefficiencycontinuedtoimprove,andeachunitsetnewcapacityrecordsmanytimes.
(2)ContinuingtopromotemarketizationanddeepeningreformofenterprisesTheCompanyfirmlyestablishesthesenseofresponsibilityof"seekingbenefitsfromreformandpromotingrevitalizationbyreform",andactivelyandsteadilypromotesthethree-yearactionofreformingstate-ownedenterprisesinathoroughandpracticalmanner.TheCompanyhasimplementedthe"recruitmentcompetitionwithindicatorsandcontract"and100%coverageof"twosystemsandonecontract"and"doublecontract"management.Comprehensivelyimplementthefullpost-performanceassessment,andcontinuouslyenhancethepreciseincentiveroleofpost-performanceassessment.Highlightingthetypicalleadtheway,"authorization+thesamebenefit"market-orientedreformtoactivatethemicrosubjectmotivation,selectedgrass-rootsoperationareaasapilotunitcombinedwiththeirowncharacteristicstodevelopapersonalizedreformprogram,theindicatorshaverepeatedlyachievedgoodresults,regionalworkersfullyenjoyedthereformdividend,incomelevelhasincreasedsignificantly.InaccordancewiththeKoreanPuxiangmodel,theCompanywillpromotethestandardizedoperationofBengangPuxiang,createa"specialzone"anda"model"forreformanddevelopment,andleadBengangSteelPlatestobeonparwithworld-classenterprises.
(3)Consolidationofstandardizedoperationandsignificantenhancementofcorporategovernance
Riskmanagement-oriented,improvingtheinternalcontrolsystem,deeplyanalyzingtheriskpointsofeachprocess,dynamicevaluation,andreal-timecontrol.Establishalistmanagementmodel,realizethelistofauthorityandresponsibilityboundaries,institutionalizeproceduralnorms,andstreamlinethedecision-makingoperation.TheCompanybuildsafull-cycleauthorizationandevaluationsystemfromthreeaspects,includingcorporategovernance,standardizationofexerciseofauthority,theeffectivenessofexerciseofauthority,andimplementsdynamicmanagementtoensurethattheauthorityis"released,accepted,andstable".TheCompanywillfurtherstrengtheninvestorrelations,improvecapitalmarketoperations,andpaycashdividendsofRMB2.465billiontoallshareholdersin2022toeffectivelyrewardinvestors.
(4)OptimizesystemmanagementsystemandimprovemanagementefficiencyandeffectivenessTakingthepromotionofconsistentmanagementasaguide,theCompanyhasdeveloped"system"thinking,continuedtoimprovetheconstructionofthesystem,optimizedtheprocesscontrolpointsitembyitem,builtaclosed-loopcontrolnetwork,andcontinuouslyimprovedmanagementefficiencyandeffectiveness.Insiston"safetyfirst",promote"safetystorm"specialaction,investigateandcorrecthiddendangers,andachievefullcoverageofsafetytraining.BuilduptheconceptofgreendevelopmentandbuildthebeautifulhomeofBengangSteelPlatestogether.TheCompanycompleted10ultra-lowemissionprojectsaccordingtotheplannednodesthroughouttheyear;thesynchronousoperationrateofenvironmentalprotectionfacilitiesandproductionfacilitieswas100%,andtheenvironmentoftheplantwassignificantlyimproved.
(5)Adheretotheinnovation-driven,tocreatetheoriginaltechnology"Source"Implemented9collaborativeprojectsinAnbenScienceandTechnology,9innovativecooperationprojectsinLiaoningSteelAssociation'sIndustry-University-ResearchAlliance,and203scientificresearchprojects.Vigorouslypromotethedigitalizationconstruction,introducetheintegratedoperationmodeofcross-regionalmulti-basesinthemainsteelindustryandthe"manufacturing+service"systemofmulti-basessynergy,andrealizebusinessinnovationandprocessreengineering.The"one-touchsteelmaking"inthesteelmillwasrecognizedbytheindustry;theironfrontcentralizedcontrol,theenergycentralizedcontrolandtheintelligentmanufacturingprojectwiththethreecoldrollingmillsasthepilotwereallimplementedasplanned,layingasolidfoundationforthesustainabledevelopmentoftheCompany.
(6)StrengthentheleadershipofPartybuilding,theworkofthegrouporganizationsisfullofhighlightsThemainlineoflearningandpropagandatoimplementthespiritofthe20thCPCNationalCongress,throughavarietyofwaystograspthepoliticaltheoryandprofessionalbusinesslearningofpartymembersandcadres,sothatlearningbecomesasourceofstrengthtogatherstrengthandovercomedifficulties,andafundamentalguaranteetoservethemassesandpromotework.TheCompanyhaspromotedthestandardizedconstructionofpartyorganizations,selectedandstrengthenedthecadresofthepartygroupsystem,andpromotedthecomprehensiveimprovement,standardizationandhardeningofthegrassrootspartyconstructionwork.Adheringtothestrategyof"talentdevelopment",theCompanyhasestablishedatalentpoolandmadeeffortstobuildBengangSteelPlates'ownexpertteam.Tocarryoutlaborcompetitionsandvariousspecialactivitiesforyouthtobuilduptheirwork,allworkersovercomedifficultiestogether,establishanewimageofyoungpeopleofBengangSteelPlates,andcultivatethemainforceforthefuturedevelopmentoftheenterprise.
(7)Deeplyrootedinpeople-oriented,tocreateabeautifulhomeforplateworkersTheCompanystronglypromotestheconstructionofpeople'slivelihoodprojects,takestheworkers'affairsasthetoppriorityandimplementsthemintoaction,makingeveryefforttocreatea"familyculture"acrosstheboard.Theestablishmentofthe"voiceofworkers"directlineandtheregularpromotionof"doingpracticalthingsforthemasses"hasgreatlyenhancedthesenseofbelongingandhappinessofthemassesofworkers.Tobuilda"AAA"levelscenicgardenfactoryasabasis,andstrivetoimprovetheplantenvironment.
2.Incomeandcost
(1)BreakdownofoperatingincomeUnit:RMB
| FY2022 | FY2021 | Changeoverlastyear | |||
| Amount | Proportion | Amount | Proportion | ||
| Totaloperatingincome | 62,616,621,627.60 | 100% | 77,912,144,981.46 | 100% | -19.63% |
| ByIndustries | |||||
| Industry | 62,616,621,627.60 | 100.00% | 77,912,144,981.46 | 100.00% | -19.63% |
| Byproducts | |||||
| Steelplate | 59,395,642,984.38 | 94.86% | 69,992,675,798.60 | 89.84% | -15.14% |
| Others | 3,220,978,643.22 | 5.14% | 7,919,469,182.86 | 10.16% | -59.33% |
| Byregions | |||||
| Northeast | 23,156,472,367.43 | 36.98% | 31,503,298,043.72 | 40.43% | -26.50% |
| NorthChina | 2,727,436,320.34 | 4.36% | 3,199,355,088.45 | 4.11% | -14.75% |
| EastChina | 28,747,114,756.97 | 45.91% | 33,516,981,788.40 | 43.02% | -14.23% |
| Northwest | 49,874,139.13 | 0.08% | 68,888,026.23 | 0.09% | -27.60% |
| Southwest | 0.00 | 0.00% | 135,459,678.97 | 0.17% | -100.00% |
| Centralsouth | 2,903,291,017.72 | 4.64% | 3,152,641,431.89 | 4.05% | -7.91% |
| Export | 5,032,433,026.01 | 8.04% | 6,335,520,923.80 | 8.13% | -20.57% |
| Bysalesmodel | |||||
| Salesindomesticmarket | 57,584,188,601.59 | 91.96% | 71,576,624,057.66 | 91.87% | -19.55% |
| Salesinexportmarket | 5,032,433,026.01 | 8.04% | 6,335,520,923.80 | 8.13% | -20.57% |
(2)Industry,productandregionsaccountingfortheCompany’soperatingincomeorprofitover10%?Applicable□NotapplicableUnit:RMB
| Operatingincome | Operatingcosts | Grossmargin | Operatingincomechangeoverlastyear | Operatingcostschangeoverlastyear | Grossmarginchangesoverlastyear | |
| Byindustries | ||||||
| Industry | 62,616,621,627.60 | 62,259,334,854.72 | 0.57% | -19.63% | -13.40% | -7.80% |
| Byproducts | ||||||
| Steelplate | 59,395,642,984.38 | 59,110,682,153.73 | 0.48% | -15.14% | -8.74% | -7.58% |
| Others | 3,220,978,643.22 | 3,148,652,700.99 | 2.25% | -59.33% | -55.78% | -8.91% |
| Byregions | ||||||
| Northeast | 23,156,472,367.43 | 23,031,001,219.05 | 0.54% | -26.50% | -20.41% | -8.33% |
| NorthChina | 2,727,436,320.34 | 2,712,587,336.95 | 0.54% | -14.75% | -7.49% | -8.56% |
| EastChina | 28,747,114,756.97 | 28,591,540,849.21 | 0.54% | -14.23% | -8.00% | -7.30% |
| Northwest | 49,874,139.13 | 49,638,921.44 | 0.47% | -27.60% | -22.38% | -7.25% |
| Southwest | 0.00 | 0.00 | 0.00% | -100.00% | -100.00% | -7.35% |
| Centralsouth | 2,903,291,017.72 | 2,881,938,977.49 | 0.74% | -7.91% | -0.07% | -8.57% |
| Export | 5,032,433,026.01 | 4,992,627,550.58 | 0.79% | -20.57% | -14.96% | -7.11% |
| Bysalesmodel | ||||||
| Salesindomesticmarket | 57,584,188,601.59 | 57,266,707,304.14 | 0.55% | -19.55% | -13.26% | -7.86% |
| Salesinexport | 5,032,433,026.01 | 4,992,627,550.58 | 0.79% | -20.57% | -14.96% | -7.11% |
| Operatingincome | Operatingcosts | Grossmargin | Operatingincomechangeoverlastyear | Operatingcostschangeoverlastyear | Grossmarginchangesoverlastyear | |
| market |
Operatingdataofrecentoneyearaccordingtoadjustedstatisticscaliberattheyear-endinthecasethattheCompany'smainbusinessstatisticscaliberhaschangedduringthereportingperiod
□Applicable?Notapplicable
(3)WhethertheCompany’sphysicalsalesincomeexceededserviceincome?Yes□No
| Industryclassification | Item | Unit | FY2022 | FY2021 | Changeoverlastyear |
| Steelrollingprocessingindustry | Sales | ton | 14,022,304.90 | 13,883,661.11 | 1.00% |
| Production | ton | 13,892,713.60 | 13,996,055.15 | -0.74% | |
| Inventory | ton | 472,324.93 | 601,916.23 | -21.53% | |
Themainreasonsthattherelevantdatachangedbymorethan30%
□Applicable?Notapplicable
(4)Performanceofsignificantsalesandpurchasecontractssignedupinthisreportingperiod
□Applicable?Notapplicable
(5)BreakdownofoperatingcostIndustryclassificationIndustryclassificationUnit:RMB
| Industryclassification | Item | FY2022 | FY2021 | Changeoverlastyear | ||
| Amount | Proportion | Amount | Proportion | |||
| Steelrollingprocessingindustry | Rawmaterial | 32,656,346,258.98 | 52.45% | 37,341,970,406.79 | 51.94% | 0.51% |
| Steelrollingprocessingindustry | Supplementarymaterials | 2,471,539,945.40 | 3.97% | 2,839,512,165.81 | 3.95% | 0.02% |
| Steelrollingprocessingindustry | Sparepartsandtools | 664,918,489.57 | 1.07% | 785,960,965.25 | 1.09% | -0.02% |
| Steelrollingprocessingindustry | Fuel | 19,516,799,781.80 | 31.35% | 22,184,848,601.81 | 30.86% | 0.49% |
| Steelrollingprocessingindustry | Energy | 2,654,880,861.12 | 4.26% | 3,182,838,986.67 | 4.43% | -0.17% |
| Steelrollingprocessingindustry | Salaryandbenefits | 1,890,550,009.31 | 3.04% | 2,582,531,198.03 | 3.59% | -0.55% |
| Steelrollingprocessingindustry | Depreciation | 1,941,797,897.36 | 3.12% | 2,333,028,229.90 | 3.25% | -0.13% |
| Steelrollingprocessingindustry | Others | 462,501,611.18 | 0.74% | 640,907,782.70 | 0.89% | -0.15% |
| Steelrollingprocessingindustry | Total | 62,259,334,854.72 | 100.00% | 71,891,598,336.96 | 100.00% | 0.00% |
Instruction:
None
(6)Whetherchangesoccurredinconsolidationscopeinthereportingperiod?Yes□No
ChongqingLiaobenSteelTradingCo.,Ltd.,HarbinNanjingBengangEconomicTradingCo.,Ltd.,NanjingBengangMaterialSalesCo.,Ltd.andWuxiBengangSteelSalesCo.,Ltd.werecancelledduringthereportingperiod.BenxiSteelBaojin(Shenyang)AutomobileNewMaterialTechnologyCo.,Ltd.lostcontrolduetothecapitalincreaseofXiamenXianghongInvestmentCo.,Ltd.onJuly8
th
,2022andwasnolongerincludedinthescopeofconsolidation.BengangSteelPlateLiaoyangQiutuanCo.,Ltd.wassoldtoBenxiIron&Steel(Group)MiningCo.,Ltd.onSeptember30
th,2022.
(7)Relevantinformationonsignificantchangesoradjustmentsofthebusiness,productorserviceinthereportingperiod
□Applicable?Notapplicable
(8)InformationofmaincustomersandmainsuppliersInformationabouttheCompany’smaincustomers
| Totalsalesamountofthetopfivecustomers(RMB) | 12,044,601,335.68 |
| Totalsalesamountofthetopfivecustomersaccountedfortheproportionoftotalannualsales | 19.24% |
| Theproportionofthetotalsalesoftherelatedpartiesinthetopfivecustomers | 0.00% |
Informationonthetop5customers
| No. | Name | Amount(RMB) | Proportion |
| 1 | SINO-ORDINS(SHANGHAI)Co.,Ltd. | 4,733,513,419.58 | 7.56% |
| 2 | NingboAUXTradeCo.,Ltd. | 2,291,124,107.81 | 3.66% |
| 3 | XiamenJianFaMetalCo.,Ltd. | 1,924,217,733.92 | 3.07% |
| 4 | ShanghaiXiangyuMushengTradingCo.,Ltd. | 1,554,697,112.29 | 2.48% |
| 5 | ShanghaiOuyeelSupplyChainCo.,Ltd. | 1,541,048,962.08 | 2.46% |
| Total | -- | 12,044,601,335.68 | 19.24% |
Otherinformationaboutprincipalcustomers
□Applicable?NotapplicableInformationontheCompany’smainsuppliers
| Totalpurchaseamountofthetopfivesuppliers(RMB) | 26,231,620,231.03 |
| Totalpurchaseamountofthetopfivesuppliersaccountedfortheproportionoftotalpurchase | 42.13% |
| Theproportionofthetotalpurchaseoftherelatedpartiesinthetopfivesuppliers | 31.85% |
Informationonthetop5suppliers
| No. | Name | Amount(RMB) | Proportion |
| 1 | BenxiBeiyingSteel&Iron(Group)Co.,Ltd. | 14,514,254,816.98 | 23.31% |
| 2 | BenxiSteel&Iron(Group)MiningCo.,Ltd. | 5,318,150,084.18 | 8.54% |
| 3 | HeilongjiangDragonCoalGroupCo.,Ltd. | 3,407,948,503.54 | 5.47% |
| 4 | LiaoningElectricPowerCo.,Ltd.BenxiElectricPowerSupplyCompany | 2,048,164,867.34 | 3.29% |
| 5 | JiaozuoGuolongLogisticsCo.,Ltd. | 943,101,958.99 | 1.51% |
| Total | -- | 26,231,620,231.03 | 42.13% |
Otherinformationaboutprincipalsuppliers
□Applicable?Notapplicable
3.Expenses
Unit:RMB
| FY2022 | FY2021 | Changeoverlastyear | Notestosignificantchange | |
| Sellinganddistributionexpenses | 128,489,696.80 | 141,394,565.57 | -9.13% | |
| Generalandadministrativeexpenses | 663,080,654.45 | 1,187,239,442.10 | -44.15% | Affectedbydecreasesinsalaries,repaircosts,andlaborcosts |
| Financialexpenses | 523,070,165.35 | 536,593,635.06 | -2.52% | |
| Researchanddevelopmentexpenses | 58,088,008.14 | 56,401,594.44 | 2.99% |
4.Researchanddevelopmentinput
?Applicable□Notapplicable
| MainR&Dprojectname | Projectpurpose | Projectprogress | Intendedgoal | ExpectedimpactonthefuturedevelopmentoftheCompany |
| Keytechnologyresearchonsmeltingofspecialqualitybearingsteel | Throughprocesstechnologyresearch,realizetheindustrializedproductionofspecialqualitybearingsteeltoprovidesupportforhigh-speedtrains,automobiles,windpowerandotherhigh-endequipmentfields,andmeettherawmaterialneedsofdomesticandinternationalhigh-endbearingmanufacturingenterprises. | Oxygen,titanium,calciumandinclusionscontrolprocessresearchisunderway,andproductionprocesstrialsarebeingconducted. |
Achievestablecontrolofchemicalcomposition,inclusions,low-frequencyorganization,androllingcontactfatiguelifeofbearingsteelgreaterthan107cycles.
| IthelpsBengangtoenterthehigh-endbearingsteelmarket,improvetheeconomicefficiencyoftheenterprise,andcanleadtheoverallspecialsteelprocesstechnologyprogress,layingthefoundationforbuildingahigh-qualityspecialsteelproductionbase. | ||||
| LonglifetechnologystudyofblastfurnaceNo.5 | Throughblastfurnacebreakageinvestigation,furnacedesignanalysis,resistantmaterialperformanceanalysis,bindersimulationexperimentandmechanismanalysis,blastfurnaceoperationanalysis,andblastfurnacerapidrepairtechnologyanalysis,weanalyzethecausesoffurnacecylinderbreakageandtakeeffectivemeasurestoimprovethecylinderlife. | Completedbreakageinvestigation,refractoryerosionmechanismresearch,formedBlastFurnaceLiningErosionCharacteristicsAnalysisandBlastFurnaceCylinderBinderPhysicalPhaseandPerformanceAnalysistwoanalysisreports,completedthemid-termnode. | Clarifythemechanismoffurnacecylinderbreakage,improvetheblastfurnacelifeby1yearonthebasisofdesign,andreach3.5yearsofcastablemateriallife. | TheexplorationofthesafelifecycleofcastablesisofgreatsignificancetoBengang,andthesuccessfuldevelopmentofnewfurnacecylindertechnologycanfundamentallysolvetheproblemoftheshortlifeoflargeblastfurnaces. |
| High-gradecold-rolledautomotiveouterplatesurfacequalityimprovement | Improvethesurfacequalityofhigh-gradecold-rolledautomotiveouterplatestomeetuserneedsandreducemanufacturingcosts. | Throughimprovingthecleanlinessofthestrip,optimizingtheacidrollingspeedandchangingtherollingmodeoftheflatteningmachinefromconstantelongationtoconstant | Batchproductionqualificationrateof72%ormore. | Expandthemarketorderquantityofcold-rolledautomobileouterplates,improvethevisibilityofcold-rolledautomobileouterplateproducts,enhancemarket |
| MainR&Dprojectname | Projectpurpose | Projectprogress | Intendedgoal | ExpectedimpactonthefuturedevelopmentoftheCompany |
| rollingforcemode,optimizingthefinalrollingtemperatureofthehotrollingandthepressingrateofthecoldrolling,thefocusisonsolvingthelongitudinalstampingstripeandwideplatescoopingdefectsofthehigh-gradeouterplate. | competitiveness,andcreateconsiderableeconomicbenefits. | |||
| Researchanddevelopmentofsteelforwidehighstrengthtankseries | Atpresent,processingenterprisesmainlypurchase1500mm-basedhigh-strengthtanksteel,materials,equipmentproductionefficiencyislow,theefficiencyofpersonnelislow,whilebecauseofmoreweldingseamsledtoanincreaseinman-hours,aestheticsandotherdefects.Themarketisinurgentneedofextra-widespecificationtanksteel(width≥1800mm),whichcaneffectivelyimprovetheutilizationrateofmaterials,equipment,personnelandproductionefficiencyofprocessingenterprises.UsingtheadvantagesoftheproductionlineofBensteel2300unittoproducewidespecificationhighstrengthsteel,thedevelopmentofwidehighstrengthtankbodyserieswithsteeltomeetmarketdemand. | Completedlaboratoryresearch,industrialtrialproduction,hasachievedbatchstablesupply. | Withefficiencyasthefocus,accordingtothelightweightdemandofsteelforcommercialvehicletanks,theCompanyhasdevelopedawiderangeofhigh-strengthsteelfortankseries. | Takeadvantageofthe2300unittoproducehighstrength,thinspecificationandwidewidth,expandthemarketofsuchproducts,formuniqueproducts,fillthegapsintheindustryandimprovemarketcompetitiveness. |
| Micro-alloyedseriesofautomotivestructuralhigh-strengthsteelperformancestabilitytechnologyresearch | Basedonthestudyofmicrostructure,grainboundarycharacteristics,precipitationphasecharacteristics,strengtheningmechanismandothermechanismsofmicro-alloyedautomotivestructuralhigh-strengthsteel,themicro-alloyedseriesofhot-rolledautomotivestructuralhigh-strengthbeamsteel,compartmentsteelandautomotivestructuralsteelperformancestabilityis | Basedonthemetallographictests,thegrainsizeofthemicro-alloyedseriesofautomotivestructuralhigh-strengthsteelswasmeasuredusingImage-ProPlussoftware,andthecontributionofprecipitationstrengtheningtoyieldstrengthwasback-calculatedfromtheactualperformancetestresults,andthenthedifferencesof | ForthecurrentTimicro-alloyed500MPa~750MPahot-rolledautomotivestructuralbeamsteel,compartmentsteelandhot-rolledpickledplate,etc.,toachievetheaveragetensilestrength±50MParangehitratefromthecurrent78.71%to85.00%,theuseofincreasedTicontent,reduce | Thisprojectfocusesonincreasingsalesbyimprovingcustomersatisfaction. |
| MainR&Dprojectname | Projectpurpose | Projectprogress | Intendedgoal | ExpectedimpactonthefuturedevelopmentoftheCompany |
| improvedthroughthecontrolofsteel-makingcompositionandprecisecontrolofthehotrollingprocess. | precipitationstrengtheningwithdifferentTicontentsanditscontributiontoyieldstrengthwereanalyzed. | theamountofpreciousalloy. |
InformationonresearchanddevelopmentpersonnelbytheCompany
| FY2022 | FY2021 | Changeoverlastyear | |
| Numberofresearchanddevelopmentstaff | 1,601 | 1,798 | -10.96% |
| Proportionofnumberofresearchanddevelopmentstaff | 10.83% | 9.53% | 1.30% |
| Educationalstructureofresearchanddevelopmentstaff | |||
| Bachelor | 1,158 | 1,233 | -6.08% |
| Master'sdegree | 164 | 162 | 1.23% |
| Agecompositionofresearchanddevelopmentstaff | |||
| Undertheageof30 | 82 | 109 | -24.77% |
| 30to40yearsold | 471 | 586 | -19.62% |
InformationonresearchanddevelopmentinputbytheCompany
| FY2022 | FY2021 | Changeoverlastyear | |
| Amountofresearchanddevelopmentinvestment(RMB) | 1,923,920,000.00 | 2,343,822,000.00 | -17.92% |
| Proportionofresearchanddevelopmentinvestmenttooperatingincome | 3.07% | 3.01% | 0.06% |
| Amountofcapitalizedresearchanddevelopmentinvestment | 0.00 | 0.00 | 0.00% |
| Proportionofcapitalizedresearchanddevelopmentinvestmentaccountedtototalresearchanddevelopmentinvestment | 0.00% | 0.00% | 0.00% |
ReasonsforandeffectsofsignificantchangesinthecompositionoftheCompany'sR&Dstaff
□Applicable?NotapplicableReasonsforthesignificantchangeintotalR&Dinvestmentasaproportionofoperatingincomecomparedtothepreviousyear
□Applicable?NotapplicableReasonsforthesignificantchangeinthecapitalizationrateofR&Dinvestmentanditsreasonableness
□Applicable?Notapplicable
5.Cashflow
Unit:RMB
| Item | FY2022 | FY2021 | Changeoverlastyear |
| Subtotalofcashinflowsfromoperatingactivities | 51,680,631,749.58 | 56,328,587,878.30 | -8.25% |
| Subtotalofcashoutflowsfromoperatingactivities | 50,404,268,784.02 | 55,915,114,424.26 | -9.86% |
| Netcashflowsfromoperatingactivities | 1,276,362,965.56 | 413,473,454.04 | 208.69% |
| Subtotalofcashinflowsfrominvestingactivities | 145,128,645.47 | 11,402,720,358.72 | -98.73% |
| Subtotalofcashoutflowsfrominvestingactivities | 1,707,467,068.85 | 7,504,976,365.56 | -77.25% |
| Netcashflowsfrominvestingactivities | -1,562,338,423.38 | 3,897,743,993.16 | -140.08% |
| Subtotalofcashinflowsfromfinancingactivities | 4,759,751,595.78 | 8,162,945,228.08 | -41.69% |
| Subtotalofcashoutflowsfromfinancingactivities | 9,497,398,695.88 | 15,363,346,740.69 | -38.18% |
| Netcashflowsfromfinancingactivities | -4,737,647,100.10 | -7,200,401,512.61 | -34.20% |
| Netincreaseincashandcashequivalents | -5,002,436,380.28 | -2,930,318,531.64 | 70.71% |
Illustrationsofkeyfactorsofsignificantchangesoverthesameperiodlastyear?Applicable□Notapplicable
(1)Netcashflowfromoperatingactivitiesincreasedby208.69%comparedwiththepreviousperiod,mainlyduetothedecreaseinprofitfortheperiod,thedecreaseinincometaxpaidandthereceiptofincrementalretainedtaxrefundforvalue-addedtaxin
theperiod.
(2)Thesubtotalcashinflowfrominvestingactivitiesdecreasedby98.73%comparedwiththepreviousperiod,mainlyduetothedecreaseintimedepositsinthecurrentperiod.
(3)Thesubtotalofcashoutflowfrominvestingactivitiesdecreasedby77.25%comparedwiththepreviousperiod,whichwasmainlyduetotheabsenceofinvestmentandfinancialmanagementactivitiesinthecurrentperiod.
(4)Netcashflowfrominvestingactivitiesdecreasedby140.08%comparedwiththepreviousperiod,mainlyduetothedecreaseintimedepositscollectedandtheabsenceofinvestmentandfinancialmanagementactivitiesinthecurrentperiod.
(5)Thesubtotalofcashinflowfromfinancingactivitiesdecreasedby41.69%comparedwiththepreviousperiod,mainlyduetothedecreaseofborrowingsinthecurrentperiod.
(6)Thesubtotalofcashoutflowfromfinancingactivitiesdecreasedby38.17%comparedwiththepreviousperiod,mainlyduetothedecreaseinrepaymentofloansandinterestonloans,andthedecreaseinrestrictedmonetaryfundsinthecurrentperiod.
(7)Netcashflowfromfinancingactivitiesdecreasedby34.2%comparedwiththepreviousperiod,mainlyduetothedecreaseinrepaymentofloansandinterestonloansinthecurrentperiod.
(8)Netincreaseincashandcashequivalentsincreasedby70.71%comparedwiththepreviousperiod,mainlyduetothedecreaseinborrowingsanddividendpaymentinthecurrentperiod.Illustrationsofsignificantdifferencebetweencashflowfromoperatingactivitiesandnetprofitduringthereportingperiod
□Applicable?NotapplicableV.Analysisofnon-corebusiness
?Applicable□NotapplicableUnit:RMB
| Amount | Proportionoftotalprofit | Reasonforformation | Whetheritissustainableornot | |
| InvestmentIncome | 89,589,183.44 | -8.29% | Investmentincomefromdisposaloflong-termequityinvestments | No |
| Assetimpairment | -33,475,219.25 | 0.40% | Duetotheincreaseintheprovisionforinventoryimpairment | No |
| Non-operatingincome | 40,130,944.39 | -3.71% | Duetotheincomefromdisposalofnon-currentassets | No |
| Operatingexpenses | 26,623,177.77 | -2.46% | Duetothedisposalofassetsinthecurrentperiod | No |
VI.Analysisofassetsandliabilities
1.SignificantchangeofassetscomponentsUnit:RMB
| Endingbalanceof2022 | Beginningbalanceof2022 | Proportionchange | Notestosignificantchange | |||
| Amount | Proportioninthetotalassets(%) | Amount | Proportioninthetotalassets(%) | |||
| Cashandcashequivalents | 1,461,145,641.87 | 3.31% | 8,831,095,737.85 | 16.01% | -12.70% | DuetorepaymentofborrowingsbytheCompany |
| Accountsreceivable | 897,230,896.06 | 2.03% | 256,850,782.71 | 0.47% | 1.56% | |
| Contractassets | 0.00% | |||||
| Inventory | 8,463,728,475.18 | 19.19% | 10,190,166,138.98 | 18.48% | 0.71% | |
| Investmentproperties | 0.00% | |||||
| Long-termequityinvestments | 51,030,777.18 | 0.12% | 2,981,784.07 | 0.01% | 0.11% | |
| Fixedassets | 24,836,556,422.90 | 56.30% | 25,480,674,048.94 | 46.20% | 10.10% | |
| Constructioninprogress | 3,158,195,899.65 | 7.16% | 2,434,182,101.13 | 4.41% | 2.75% | |
| Right-of-useassets | 1,379,990,713.89 | 3.13% | 1,440,365,248.31 | 2.61% | 0.52% | |
| Short-termloans | 49,200,000.00 | 0.11% | 4,053,088,140.00 | 7.35% | -7.24% | DuetorepaymentofborrowingsbytheCompany |
| Contractliabilities | 3,794,115,592.29 | 8.60% | 4,708,188,093.78 | 8.54% | 0.06% | |
| Long-termborrowings | 1,726,938,302.30 | 3.91% | 4,222,821,771.74 | 7.66% | -3.75% | |
| Leaseliabilities | 1,384,348,462.18 | 3.14% | 1,424,667,169.15 | 2.58% | 0.56% |
Highproportionofabroadassets
□Applicable?Notapplicable
2.Assetsandliabilitiesmeasuredatfairvalue
□Applicable?Notapplicable
3.Restrictedassetsbytheendoftheperiod
| Items | Closingbalance | Restrictedreasons |
| Bankacceptancemargin | 164,482,958.67 | Marginonbills |
| Letterofcreditmargin | 355,701,965.15 | Pledgeandendorsementdiscountingnotyetdue |
| Loanmargin | 1,016,420,266.27 | Releaseofpledgeagreementhasbeensignedandapplicationforreleaseofregistrationofequitypledgeisinprocess |
| Timedepositornoticedepositforguarantee | 85,164,490.39 | Mortgagetoobtainfundsforborrowing |
| Restricteddeposits | 35,260,567.22 | Mortgagetoobtainfundsforborrowing |
| Total | 1,657,030,247.70 |
VII.Analysisoftheinvestmentsituation
1.General
□Applicable?Notapplicable
2.Acquiringsignificantequityinvestmentinthereportingperiod
□Applicable?Notapplicable
3.Undergoingsignificantnon-equityinvestmentinthereportingperiod
□Applicable?Notapplicable
4.Investmentoffinancialassets
(1)Investmentinsecurities
□Applicable?NotapplicableTherewasnoinvestmentinsecuritiesduringthereportingperiod.
(2)Investmentinderivatives
□Applicable?NotapplicableTherewasnoinvestmentinderivativesduringthereportingperiod.
5.Useofraisedfunds
?Applicable□Notapplicable
(1)Useofraisedfunds?Applicable□NotapplicableUnit:RMB10,000
| Year | Methodofraisingfunds | Totalamountofraisedfunds | Usedamountofraisedfundthisperiod | Thetotalusedamountoffundsraised | Thetotalamountoffundsraisedforchangeofpurposeduringthereportingperiod | Cumulativetotalamountoffundsraisedforchangeofpurpose | Cumulativeproportionoftotalraisedfundsforchangesofpurposes | Thetotalamountoffundsraisednotused | Thepurposeanddestinationoftheraisedfundsnotyetused | Amountoffundsraisedafterbeingidleformorethantwoyears |
| 2018 | Privateplacementtoraisefunds | 396,580 | 4,520.32 | 338,726.62 | 57,853.38 | Deposit | ||||
| 2020 | Issueofconvertiblebonds | 675,920 | 62,608.05 | 423,676.46 | 252,243.54 | Deposit | 101,479 | |||
| Total | -- | 1,072,500 | 67,128.37 | 762,403.08 | 0 | 0 | 0.00% | 310,096.92 | -- | 101,479 |
| Descriptionoftheoveralluseofraisedfunds | ||||||||||
| 1.StatusofuseoffundsforinvestmentprojectswithraisedfundsDetailsoftheactualuseofproceedsinFY2022oftheCompanyaresetoutinAppendixIComparisonTableontheUseofProceedsfromNon-publicOfferingofSharesandAppendixIIComparisonTableontheUseofProceedsfromPublicOfferingofConvertibleBonds.2.StatusofchangesintheimplementationlocationandimplementationmethodoftheprojectsinvestedbyraisedfundsDuringthereportingperiod,thereisnosituationofchangeintheinvestmentprojectsofraisedfundsortheirimplementationlocationsandimplementationmethods.3.Statusofpreliminaryinvestmentandreplacementofraisedfundsforinvestmentprojects(1)Statusofpreliminaryinvestmentandreplacementoffundsraisedfromnon-publicofferingofstocksAtthe14thmeetingofthe7thBoardofDirectorsandthe10thmeetingofthe7thBoardofSupervisorsoftheCompany,AbouttheUseofRaisedFundstoReplacePre-InvestedRaisedFundsforInvestmentProjectswasreviewedandapproved.Beforetheraisedfundsarriveintheaccount,inordertoensurethesmoothimplementationoftheraisedinvestmentprojects,theCompanyusesself-raisedfundsforprojectconstruction.AsofFebruary28th,2018,thepre-investedamountofself-raisedfundsreplacedbyraisedfundswasRMB1,822,749,211.07,includingRMB1,484,133,089.39forthecold-rolledhigh-strengthsteelreconstructionprojectandRMB338,616,121.68forthehot-dipgalvanizingproductionlineprojectofthethirdcoldrollingplant.DuringtheperiodfromMarch1st,2018toFebruary28th,2019,theCompanypaidRMB88,296,207.56fortheconstructionofprojectswithself-raisedfunds,ofwhichRMB86,709,830.40wasinvestedinthecold-rolledhigh-strengthsteelreconstructionproject,andthethirdcold-rollingplantwashot-dipgalvanized.ThezincproductionlineprojectisRMB1,586,377.16(notyetreplacedfromthespecialaccountofraisedfunds).TheCompanytransferredRMB86,709,830.40fromthefundraisingaccounttothegeneraldepositaccountin2020.DuringtheperiodfromMarch1st,2019toMay31st,2021,theCompanypaidRMB62,608,242.01fortheconstructionoftheproject | ||||||||||
(2)Fundraisingcommitments?Applicable□NotapplicableUnit:RMB10,000
| Commitmenttoinvestmentprojectsandover-raisedfunds | Whethertheitemhasbeenchanged(includingsomechanges) | Totalcommittedinvestmentofraisedfunds | Adjustedtotalinvestment(1) | Amountinvestedduringthereportingperiod | Cumulativeinvestmentamountbytheendoftheperiod(2) | Investmentprogressbytheendoftheperiod(3)=(2)/(1) | Itemreachesscheduledavailabilitydate | Benefitsrealizedduringthereportingperiod | Whethertheexpectedbenefitisachieved | Hastheprojectfeasibilitychangedsignificantly |
| CommitmenttoInvestmentProjects | ||||||||||
| Cold-rolledhigh-strengthsteelrenovationproject | No | 226,580 | 226,580 | 4,520.32 | 197,212.39 | 87.04% | -14,582.14 | No | No | |
| Hot-dipgalvanizingproductionlineprojectofthethirdcoldrollingplant | No | 70,000 | 70,000 | 41,514.24 | 59.31% | -1,797.61 | Yes | No | ||
| Repaybankloan | No | 100,000 | 100,000 | 100,000 | 100.00% | Notapplicable | No | |||
| Highgradehighmagneticinductionnon-orientedsiliconsteelengineeringproject | No | 101,620 | 101,620 | 141 | 0.14% | Notapplicable | No | |||
| SteelPlantNo.8CastingMachineProject | No | 33,500 | 33,500 | 1,300.8 | 17,648.91 | 52.68% | -8,801.71 | Yes | No | |
| No.5blastfurnacecapacityreplacementprojectinironworks | No | 96,000 | 96,000 | 1,805.68 | 78,499.23 | 81.77% | -8,672.7 | No | No | |
| SpecialSteelElectricFurnaceUpgradeandReconstructionProject | No | 141,600 | 141,600 | 37,182.68 | 78,904.64 | 55.72% | Notapplicable | No | ||
| CCPPpower | No | 83,300 | 83,300 | 18,996.71 | 40,437.02 | 48.54% | Not | No | ||
| Commitmenttoinvestmentprojectsandover-raisedfunds | Whethertheitemhasbeenchanged(includingsomechanges) | Totalcommittedinvestmentofraisedfunds | Adjustedtotalinvestment(1) | Amountinvestedduringthereportingperiod | Cumulativeinvestmentamountbytheendoftheperiod(2) | Investmentprogressbytheendoftheperiod(3)=(2)/(1) | Itemreachesscheduledavailabilitydate | Benefitsrealizedduringthereportingperiod | Whethertheexpectedbenefitisachieved | Hastheprojectfeasibilitychangedsignificantly |
| generationproject | applicable | |||||||||
| EnvironmentalprotectionrenovationprojectofconverterNo.4-6insteelmakingplant | No | 19,900 | 19,900 | 3,322.17 | 8,045.66 | 40.43% | Notapplicable | No | ||
| Repaybankloan | No | 200,000 | 200,000 | 200,000 | 100.00% | Notapplicable | No | |||
| SubtotalofCommittedInvestmentProjects | -- | 1,072,500 | 1,072,500 | 67,128.37 | 762,403.08 | -- | -- | -33,854.16 | -- | -- |
| Over-raisedfundsareinvestedin | ||||||||||
| None | ||||||||||
| Total | -- | 1,072,500 | 1,072,500 | 67,128.37 | 762,403.08 | -- | -- | -33,854.16 | -- | -- |
Explanationbyproject,thesituationandreasonsfornotreachingtheplannedprogressandexpectedbenefits(includingthereasonsforselecting"Notapplicable"for"Whethertoachievetheexpectedbenefits")
| Themarketenvironmenthasundergonemajorchanges.Thecold-rolledhigh-strengthsteelreconstructionprojectandthehot-dipgalvanizingproductionlineprojectofthethirdcold-rollingplanthavereachedtheirproductioncapacity.Duringthereportingperiod,otherprojectsdidnotmeettheplannedprogressorexpectedincome. | |
| Statusofthedescriptionofmaterialchangesinprojectfeasibility | None |
| Commitmenttoinvestmentprojectsandover-raisedfunds | Whethertheitemhasbeenchanged(includingsomechanges) | Totalcommittedinvestmentofraisedfunds | Adjustedtotalinvestment(1) | Amountinvestedduringthereportingperiod | Cumulativeinvestmentamountbytheendoftheperiod(2) | Investmentprogressbytheendoftheperiod(3)=(2)/(1) | Itemreachesscheduledavailabilitydate | Benefitsrealizedduringthereportingperiod | Whethertheexpectedbenefitisachieved | Hastheprojectfeasibilitychangedsignificantly |
| Statusofamount,purposeandprogressofuseofover-raisedfunds | Notapplicable | |||||||||
| Statusofchangesinimplementationlocationsofraisedfundsinvestmentprojects | Notapplicable | |||||||||
| Statusofadjustmentoftheimplementationmethodofraisedfundsforinvestmentprojects | Notapplicable | |||||||||
| Statusofpreliminaryinvestmentandreplacementofraisedfundsforinvestmentprojects | Applicable | |||||||||
| Fordetails,pleaserefertothespecialreportIII.(3) | ||||||||||
| Statusoftemporaryreplenishmentofworkingcapitalwithidleraisedfunds | Applicable | |||||||||
| Fordetails,pleaserefertothespecialreportIII.(4) | ||||||||||
| Reasonsandamountforthebalanceofraisedfundsin | Notapplicable | |||||||||
| Commitmenttoinvestmentprojectsandover-raisedfunds | Whethertheitemhasbeenchanged(includingsomechanges) | Totalcommittedinvestmentofraisedfunds | Adjustedtotalinvestment(1) | Amountinvestedduringthereportingperiod | Cumulativeinvestmentamountbytheendoftheperiod(2) | Investmentprogressbytheendoftheperiod(3)=(2)/(1) | Itemreachesscheduledavailabilitydate | Benefitsrealizedduringthereportingperiod | Whethertheexpectedbenefitisachieved | Hastheprojectfeasibilitychangedsignificantly |
| projectimplementation | ||||||||||
| Useandwhereaboutsofunusedraisedfunds | Fordetails,pleaserefertothespecialreportIII.(8) | |||||||||
| Problemsorothersituationsintheuseanddisclosureofraisedfunds | Thereisnoproblemotherwise | |||||||||
(3)Thesituationforchangeoffund-raisingprojects
□Applicable?NotapplicableDuringthereportingperiod,theCompanydidnothaveanychangesinthefundraisingproject.VIII.Significantassetsandequitysoldinthereportingperiod
1.Significantassetssold
□Applicable?NotapplicableTherewasnosignificantassetsoldduringthereportingperiod.
2.Substantialequitysold?Applicable□Notapplicable
| Counterparty | Equityinterestssold | Saleday | Transactionprice(RMB10,000) | Netprofitcontributedbytheequityinteresttothelistedcompanyfromthebeginningoftheperiodtothedateofsale(RMB10,000) | ImpactofthesaleontheCompany | Proportionofnetprofitcontributedtothetotalnetprofitofthelistedcompanyfromequitysales | Equitysalepricingprinciples | Whetheritisarelatedtransaction | Affiliationwithcounterparties | Whethertheequityinterestsinvolvedhavebeenfullytransferred | Whethertheimplementationisonscheduleasplanned,andifnot,thereasonsandthemeasurestakenbytheCompanyshouldbeexplained | Disclosuredate | Disclosureindex |
| BenxiIron&SteelMiningCo.,Ltd. | 100%equityinterestinBengangSteelPlatesLiaoyangPelletCo.,Ltd. | September29th,2022 | 69,798 | ThetransferwillhelppromotetheCompany'sdevelopmentstrategyof"buildingahigh-qualityplatebase"andfurthersolvetheproblemofcompetitioninthesameindustry | ThetransactionpriceisbasedontheequityvaluationvalueissuedbyChinaUnitedAssetsAppraisalGroupCo.,Ltd. | Yes | SamesubsidiaryofBenxiIron&Steel | Yes | yes | October1st,2022 | AnnouncementonEquityTransferandConnectedTransactionofWholly-ownedSubsidiary(No.2022-058) |
IX.Analysisonmainsubsidiariesandshareparticipatingcompanies
?Applicable□NotapplicableMainsubsidiariesandthejoint-stockcompaniesinfluencingover10%netprofitoftheCompanyUnit:RMB
| Companyname | Companytype | Mainbusiness | Registeredcapital | Totalassets | Netassets | Operatingincome | Operatingprofit | NetProfit |
| BengangPuxiangCoolRollingSteelSheetCo.,Ltd. | Subsidiary | Processingandsalesofsteel | 1,920,000,000 | 3,674,072,114.13 | 2,303,358,054.33 | 9,820,616,858.86 | 175,215,785.24 | 135,690,857.38 |
Acquirementanddisposalofsubsidiariesduringthereportingperiod?Applicable□Notapplicable
| Companyname | Methodofacquisitionanddisposalofsubsidiariesduringthereportingperiod | Impactonoverallproductionoperationsandresults |
| HarbinNanjingBengangEconomicTradingCo.,Ltd. | Cancellation | None |
| NanjingBengangMaterialSalesCo.,Ltd. | Cancellation | None |
| ChongqingLiaobenSteelTradingCo.,Ltd. | Cancellation | None |
| WuxiBengangSteelSalesCo.,Ltd. | Mergersandacquisitions | None |
| BenxiSteelBaojin(Shenyang)AutomobileNewMaterialTechnologyCo.,Ltd. | LossofcontroloftheCompanyduetocapitalincreasebyothershareholders | None |
IllustrationofmajorholdingandequityparticipationcompaniesChongqingLiaobenSteelTradingCo.,Ltd.,HarbinNanjingBengangEconomicTradingCo.,Ltd.andNanjingBengangMaterialSalesCo.,Ltd.werecancelledduringthereportingperiod.WuxiBengangSteelSalesCo.,Ltd.wasabsorbedandconsolidatedduringthereportingperiod.BenxiSteelBaojin(Shenyang)AutomobileNewMaterialTechnologyCo.,Ltd.wasnolongerincludedinthescopeofconsolidationastheCompanylostcontrolduetothecapitalincreaseofXiamenXianghongInvestmentCo.,Ltd.
X.StructureentitiescontrolledbytheCompany
□Applicable?Notapplicable
XI.ProspectforfuturedevelopmentoftheCompany
1.ThedevelopmenttrendoftheindustryandthemarketcompetitionpatterntheCompanyfacesTheyear2023isa"challengeyear"forBengangSteelPlatestoimproveitselfinthefaceofdifficulties.Theworldeconomyisenteringanewperiodofturbulenceandchangeasthecentury-oldchangesandtheepidemicofthecenturyintertwine,economicglobalizationencountersacounter-current,andthegamebetweenmajorpowersbecomesincreasinglyfierce.Atthesametime,weshouldalsoclearlyunderstandthefavorablesignalsreleasedbytheParty's20thNationalCongress,China'seconomicresilience,potential,long-termpositivefundamentalshavenotchanged,withthecontinuedforceofinfrastructuredemandandthesteadygrowthofnewenergyvehicles,thesteelmarketisexpectedtoendthedownturnandgraduallystabilize.
2.CompanydevelopmentstrategyOverallworkconceptin2023:takeXiJinpingThoughtsonSocialismwithChineseCharacteristicsintheNewEraastheguidingprinciple,studyandimplementthespiritofthe20thPartyCongress,relyon"twomainlines",adhereto"threeleading",followthe"1357"workingpolicy,anchoredonthestandardofworld-classsteelenterprises,deepenandrefinethe"1+2+3+N"prioritywork,whichis:focusononecenter:adheretotheefficiency-centeredhigh-qualitydevelopmentoflistedcompanies;laytwofoundations:thefoundationofsafedevelopmentandgreendevelopment;focusonthreeenhancements:reformandinnovationcapacityenhancement,managementlevelenhancement,and"N"measurestoensureacomprehensivebenchmarkingenhancement,andstrivetobuildahighlycompetitiveinternationalhigh-qualityplatebaseandadomesticfirst-classspecialsteelbase.
3.BusinessplanIn2023,theproductionandoperationtarget:strivetocomplete10.3milliontonsofpigiron,11.41milliontonsofcrudesteel,
14.29milliontonsofhot-rolledplate,5.7milliontonsofcold-rolledplateand720,000tonsofspecialsteel.Inordertoimplementtheaboveoverallworkconceptandproductionandmanagementobjectives,wefocusoureffortsonthefollowingaspects:
First,adheretotheefficiencyasthecenter,andcomprehensivelypromotethehigh-qualitydevelopmentofBengangSteelPlatesSecond,adheretosafeandgreendevelopment,andenhancethedevelopmentofBengangSteelPlatessecuritypowerinallaspectsThird,adheretobreakingourlimits,comprehensivedevelopmentofBengangSteelPlatestocreatenewadvantagesFourth,adheretotheParty'sleadership,comprehensiveleadershipBengangSteelPlatesdreamnewjourneyFifth,adheretothepeople'ssupremacyandplaythethemeofBengangSteelPlatesinanall-roundway.
4.Maintainthecurrentbusinessandcompletethefundingarrangementsrequiredfortheinvestmentprojectsunderconstruction
TheCompanywilluseitsownfundsandbankloanstomeetthefundsrequiredforproductionandoperationandtechnologicaltransformation.
5.Possiblerisks
(1)MarketriskTheworldeconomyhasnotyetthemomentumtorecover,theoveralldemandforsteeldownstreamindustriesisweak,thesteelmarketsupply-demandrelationshipisweakbalance,andthesupplyexceedsdemandmarketpatternhasnotchangedfundamentally.Restrictedsupplychannels,geopoliticalconflictsandotherfactors,thesupplyofenergyresourcesfactorsmarkettightening,ore,coalandcokeandotherbulkrawfuelpricesfluctuateupward,businessoperatingcostsincreased,andthemarketriskhighlighted.Countermeasures:Establishpredictivemanagementthinking,strengthenmarketinformationcollection,enhanceanalysisandjudgmentofmarketchanges,accuratelycontrolthemarketrhythm,dynamicallyadjustmarketingstrategiesandtimelyadjustmarketingprices;strengthenregionalmarketsynergy,deepenstrategiclong-termcooperationandenhancetheproportionof
directsupplyandsalesinthemarket;optimizeproductstructure,adjustrawmaterialstructure,seizelow-costresources,reasonablycontrolinventoryandeffectivelycopewithmarketrisks.
(2)RawmaterialsupplyriskWiththereleaseandimplementationofthe"FourteenthFive-YearPlan"ComprehensiveWorkPlanforEnergyConservationandEmissionReduction,thedouble-highindustrycapacityproduction"doublelimit",totalenergyconsumptionintensity"doublecontrol"andcarbonpeakcarbonneutralandotherpoliciescontinuetodeepen,environmentalregulationsarebecomingincreasinglystringent,theupstreamcoalandcokeenterprisestoeliminatebackwardproductioncapacityandenvironmentalgovernancecontinuetoincrease,coalandcokeproductioncapacityislimited,pricesrunhigh.Intermsofironoresupply,domesticsupplyisinsufficient,foreigndependenceisstillhigh,influencedbygeopolitics,capitalspeculationandotherfactors,therearemanyuncertaintiesinthesupplyandpriceofironore,andorepriceswillmaintainawiderangeofoscillationpattern,whichwillhaveaseriousimpactonthesupplychainsecurityandbusinessperformanceofsteelcompanies.Countermeasures:Strengthentheanalysisandanalysisofrawmaterialproductioncapacityandmarketdemand,activelypromotestrategiccooperationinrawmaterialsupply,consolidateandexpanddomesticrawmaterialprocurementchannels,deeplyaggregaterawmaterialresources,acceleratetheformationofdomesticandforeigndouble-cyclesupplychainsecuritypattern,enhancethescaleofprocurementpriceadvantage;scientificallycontrolthetimingofprocurement,timelyadjustmentofprocurementstrategy;continuouslypromoteprocessinnovation,optimizetheproductionfurnacestructure,adjusttheprocurementofrawmaterialstructure,reasonablecontrolofrawmaterialinventory,adjustrawfuelwinterstoragepolicy,effectivelyreducetheadverseimpactofrawmaterialpricefluctuations.
(3)EnvironmentalprotectionriskAstheironandsteelindustrycontinuestopromoteultra-lowemissionpoliciesandthe"FourteenthFive-YearPlan"ComprehensiveWorkPlanforEnergyConservationandEmissionReduction,theNoisePollutionPreventionandControlLawandotherenvironmentallawsandregulationsarereleasedandimplemented,nationalandlocalgovernmentsarebecomingincreasinglystringentonenvironmentalprotection,energyconservationandemissionreductionrequirements,andenterprisesarefacingfurtherpressureforenvironmentalprotectionandgreenlow-carbondevelopment.Countermeasures:Deeplyimplementtheconceptofgreenlow-carbondevelopment,strictlyimplementnationalenvironmentalprotectionlawsandregulations,focusonthe"sourcereduction,intermediatecontrol,terminaltransformation"ofthewholeprocessofenvironmentalmanagement,inaccordancewiththe"threetreatment(treatmentofgas,water,solid),theimplementationoffour(thatis,cleaning,greening,beautification,culture)"environmentalprotectionconcept,promotethe"higherthanstandard,betterthanthecity,intothecity"greensteelplantconstruction,thefullimplementationofthe"cleaning,greening,beautification,culture"project,acceleratetheformationof"exhaustgasultra-lowemission,wastewaterzerodischarge,solidwastedoesnotleavethefactory"greendevelopmentpattern,andstrivetobuildthenationalsteelindustrywholeprocessultra-lowemissiondemonstrationprojectandsteelenterprisesgreendevelopmentbenchmark,toensuretherealizationofenvironmentalandecologicalprotectionandgreenhigh-qualitydevelopmentofthe"win-win"newsituation.
(4)SafetyproductionriskThegovernmenthasbeenincreasingthesupervisionandpunishmentofenterprisesafetyproductionandoccupationalhealth.Ifproductionsafetymeasuresarenotinplaceandresponsibilitiesarenotimplemented,varioustypesofaccidenthazardsandsafetyrisksareinterwovenandsuperimposedduringproductionandmaintenance,andproductionsafetyaccidentsmayoccur,causingeconomiclossesandadverseeffectstoenterprises.
Countermeasures:ImplementtheimportantremarksofGeneralSecretaryXiJinpingonsafeproduction,firmlyestablishtheconceptofsafedevelopment,focusonthegoalofpreventingandcurbingseriousaccidents,andmorein-depthassessmentandgradingoftheriskpointsanddangersourcesidentifiedbythespecialaction,especiallytopromotetheworkofgradingandcontrollingtherisksofsafeproduction,promotethescientific,information,standardization,institutionalizationandstandardizationofaccidentprevention,toachievethecontrolofrisksbeforetheformationofhiddendangers,andeliminatehiddendangersinfrontofaccidents.
XII.Researches,visitsandinterviewsreceivedinthisreportingperiod
?Applicable□Notapplicable
| Receptiontime | Receptionlocation | Receptionmethod | Receptiontype | Receptionobject | Themaincontentoftheconversationandtheinformationprovided | Indexofbasicinformationoftheresearch |
| February22nd,2022 | Company | Telephonecommunication | Institution | CITICConstructionInvestment-WangXiaofangShenwanHongyuan-MengXiangwen,ChenSongtao | Companyproductionandoperationandindustrysituation | TranscriptofinvestorrelationsactivitiesonFebruary22nd,2022 |
| April8th,2022 | Company | Others | Individual | Investors | Companyproductionandoperationandindustrysituation | TranscriptofinvestorrelationsactivitiesonApril8th,2022 |
| May31st,2022 | Company | Telephonecommunication | Institution | Hua'anSecurities-XuYongqi | Companyproductionandoperationandindustrysituation | TranscriptofinvestorrelationsactivitiesonMay31st,2022 |
| June16th,2022 | Company | Telephonecommunication | Institution | Hua'anSecurities-XuYongqiIndividualinvestors | Companyproductionandoperationandindustrysituation | TranscriptofinvestorrelationsactivitiesonJune16th,2022 |
| June27th,2022 | Company | Telephonecommunication | Institution | CITICSecurities-TangChuanlinCITICSecurities-WangHuixianandXiaoFanGuoshouPension-LiChiAgriculturalBankofChina-XuQiaoYingdaCapitalManagement-ZhangLichenHuarongSecurities-LiYadongChangxinFund-CaiJunhuaRongtongFundManagementCo.,Ltd.-LiGuandiShenzhenHongchouInvestmentCo.,Ltd.-WangZhidongHangzhouZhongdaJunyueInvestmentCo.,Ltd.-LinBinbinShanghaiLizhenInvestment | Companyproductionandoperationandindustrysituation | TranscriptofinvestorrelationsactivitiesonJune27th,2022 |
| ManagementCo.,Ltd.-ZhuYujunShanghaiRuiYiInvestmentDevelopmentCenter(LimitedPartnership)-LiJingyaoPRUDENCEINVESTMENTMANAEGEMENT(HONGKONG)LIMITED-ZhangZhibin | ||||||
| July14th,2022 | Company | Telephonecommunication | Institution | CindaSecurities-ZhangChi,WangMingluHuabaoFund-SunJialunHuaxinSecuritiesAssetManagement-YangJingleiEvergrandeLife-ShiHanUBSSDICFundManagementCo.,Ltd.-WangKanChinaCapitalOrientFundManagementCo.,Ltd.-LiJinlongCPICFundManagementCo.,Ltd.-TangJingyi | Companyproductionandoperationandindustrysituation | TranscriptofinvestorrelationsactivitiesonJuly14th,2022 |
| September6th,2022 | Company | Others | Individual | Investors | Companyproductionandoperationandindustrysituation | TranscriptofinvestorrelationsactivitiesonSeptember6th,2022 |
| September15th,2022 | Company | Others | Individual | Investors | Companyproductionandoperationandindustrysituation | TranscriptofinvestorrelationsactivitiesonSeptember15th,2022 |
| September18th,2022 | Company | Fieldresearch | Individual | ZhangZheng | Companyproductionandoperationandindustrysituation | TranscriptofinvestorrelationsactivitiesonSeptember18th,2022 |
SectionIV.CORPORATEGOVERNANCE
I.BasicsituationofcorporategovernanceDuringthereportingperiod,theCompanyhasbeenfollowingthelaws,regulationsanddocumentssuchastheCompanyLaw,SecuritiesLaw,GovernanceGuidelinesforListedCompanies,GuidelinesfortheNormativeOperationofListedCompaniesontheShenzhenStockExchangeandArticlesofAssociation.BasedontheactualsituationoftheCompany,theCompanyhasbeencontinuouslyimprovingthecorporategovernancestructureandinternalcontrolsystemoftheCompany,improvingthegovernancelevel,andpromotingtheCompany'sstandardizedoperation.Asoftheendofthereportingperiod,theactualsituationofcorporategovernancemeetstherequirementsoftheregulatorydocumentsrelatedtothegovernanceoflistedcompanies.
1.ShareholdersandShareholders'GeneralMeeting:TheCompanyhasformulatedtheRulesofProceduresforGeneralMeetingsofShareholdersinstrictaccordancewiththeCompanyLaw,RulesforShareholders'GeneralMeetingsofListedCompaniesandtheCompanyArticlesofAssociationtoensuretheexerciseoftherightsoftheCompany'sshareholdersandthestandardoperationoftheshareholders'meeting.TheCompany'spreviousshareholdermeetingshaveprovidedtwoattendancechannels,on-sitevotingandonlinevoting,tofacilitateshareholders.Involvingmajorissuesthataffecttheinterestsofsmallandmediuminvestors,theCompanycountsthevotesofsmallandmediuminvestorsindividuallyanddisclosestheminatimelymannertoensurethatallshareholdersenjoyequalstatusandfullyexercisetheirrights.Andbyhiringlawyerstowitnessandensurethelegalcomplianceoftheconvening,conveningandvotingproceduresofthemeeting,thelegitimaterightsandinterestsofthecompanyandshareholdershavebeensafeguarded.
2.DirectorsandtheBoardofDirectors:thecompany'sBoardofDirectorshasclearresponsibilities,andtheCompany'sdirectorsexercisetheirpowersinstrictaccordancewiththeArticlesofAssociation,RulesofProceduresoftheCompany'sBoardofDirectors,CompanyIndependentDirectorsWorkSystemandotherrelatedsystems,performtheirdutieswithintegrityanddiligence,andsafeguardthelegitimaterightsandinterestsoftheCompanyandshareholders.TheCompany'sBoardofDirectorshasfourspecialcommittees,namelyaudit,strategy,nomination,remunerationandassessment,eachofwhichperformsitsownresponsibilitiesandfunctions,andcancarryoutitsworkinaccordancewiththerulesofprocedureofeachspecialcommittee.Duringthereportingperiod,theconveningandholdingproceduresofthecompany'sBoardofDirectorscompliedwiththeCompanyLaw,ArticlesofAssociationandRulesofProcedureoftheBoardofDirectorsandotherrelevantlawsandregulations.
3.Supervisorsandboardofsupervisors:TheCompany'ssupervisorscanearnestlyperformtheirduties,independentlyandeffectivelyperformsupervisionandinspectionfunctions.TheCompany'ssupervisorsattendshareholders'meetings,attendboardmeetingsasnon-votingdelegates,regularlyinspecttheCompany'slegaloperationsandfinancialconditions,andissueopinionsfromtheboardofsupervisors.SupervisetheCompany'sfinances,theperformanceofthecompany'sdirectorsandseniormanagementpersonnel,andthecapitalexchangeswithrelatedparties,soastosafeguardthelegalrightsandinterestsofthecompanyandshareholders.Thenumberandstructureoftheboardofsupervisorsmeettherequirementsoflawsandregulations,anditsconveningandconveningarestrictlyimplementedinaccordancewiththeArticlesofAssociationandRulesofProcedureoftheBoardofSupervisorstoensurethattheboardofsupervisorseffectivelyperformsitsduties.
4.ControllingshareholdersandtheCompany:TheCompanyhasindependentandcompletebusinessandindependentmanagementcapabilities,andisindependentofthecontrollingshareholdersandactualcontrollersintermsofbusiness,personnel,assets,institutions,andfinances;TheCompany'sBoardofDirectors,boardofsupervisorsandotherinternalinstitutionsoperateindependently;TheCompany'smajordecisionsaremadebytheBoardofDirectorsorthegeneralmeetingofshareholdersinaccordancewiththelaw.Controllingshareholdersandactualcontrollerscanstrictlyregulatetheirown
behavior.ThereisnodirectorindirectinterventionintheCompany'sdecision-makingandproductionandoperationactivitiesbeyondthegeneralmeetingofshareholders,nordoesitharmtheinterestsoftheCompanyandothershareholders.
5.Informationdisclosureandtransparency:TheCompanystrictlycomplieswiththerequirementsoftheShenzhenStockExchangeStockListingRulesandtheInformationDisclosureManagementSystemandotherrequirements,truthful,accurate,andcomplete,withoutfalserecords,misleadingstatementsormajoromissionsinperforminginformationdisclosureobligation,ChinaSecuritiesJournal,SecuritiesTimesandwww.cninfo.com.cnarethedesignatedmediaforCompanyinformationdisclosure.TheCompanypublishesregularreportsandtemporaryannouncementsthroughtheabove-mentionedinformationdisclosuremediatoensurethatallshareholdersoftheCompanycanobtaininformationwithequalopportunities.
6.Investorrelationshipmanagement:TheCompanycontinuestostrengthencommunicationwithinvestorstodeepeninvestors'understandingandrecognitionoftheCompany.TheCompanyappointsthesecretaryoftheBoardofDirectorsasthepersoninchargeofinvestorrelationsmanagement,andtheofficeoftheBoardofDirectorsistheorganizationthatundertakesthedailyworkofinvestorrelationsmanagement.TheCompanymakesfulluseofon-sitemeetings,dedicatedtelephonecalls,investorinteractionplatformsandothermethodstocommunicatewiththecompany'sshareholders,listenscarefullytotheopinionsandsuggestionsofinvestorsontheCompany'sstrategicdevelopmentandproductionandoperation,andhasestablishedagoodcommunicationmechanismwithinvestors,whichenhancesinvestors'understandingandinvestmentconfidenceintheCompany.Whetherthereexistsanydifferenceincompliancewithcorporategovernance,PRCCompanyLawandrelevantprovisionsofCSRC
□Yes√NoThereexistsnodifferenceincompliancewithcorporategovernance,PRCCompanyLawandrelevantprovisionsofCSRC.II.ExplanationonstructuralindependenceoftheCompanyonbusiness,personnel,assets,organizationandfinancefromthecontrollingshareholderandactualcontrollerTheCompanyisseparatedfromthecontrollingshareholderinaspectsofbusiness,personnel,assets,organizationandfinance,etc.andhasitsownindependentandcompletebusinessoperation.
(1)Inbusinessoperation:TheCompanyhasitsownproductionandbusinessplanning,financialaffairscheckandcalculate,laborandpersonnel,rawmaterialsuppliesandproductssellingbusinesssystemindependentlyandcompletely.
(2)Inpersonnel:TheCompanyandcontrollingshareholderareseparateinsuchaspectsaslabor,personnelandsalarymanagement.Suchseniorexecutivesasthegeneralmanager,vicegeneralmanager,secretaryoftheBoardofDirectors,etc.receiveasalaryfromtheCompany,andnoneofthemholdsanimportantpositionintheshareholders'entityotherthandirector.
(3)InAsset:TheCompanyandcontrollingshareholderhaveaclearownershiprelationship.TheCompanyhasitsownindependentpurchase,production,andmarketingsystem.
(4)Inorganization:TheinternaloperationsoftheCompanyareindependent;theorganizationstructureandworkingfunctionaretotallyindependent.
(5)Infinance:TheCompanyhasanindependentfinancialmanagementdepartment,theaccountingandfinancialmanagementsystemthatarecompleteandoperatedindependently,andhasabankaccountandpaystaxesindependently.
III.Competitionsituationsoftheindustry?Applicable□Notapplicable
| Questiontype | Typeofaffiliationwithlistedcompanies | Companyname | Companynature | Cause | Solution | Progressandfollow-upplans |
| Industrycompetition | Controllingshareholder | AnsteelGroupCo.,Ltd. | Other | In2021,theCompany'soriginalactualcontroller,LiaoningState-ownedAssetsSupervisionandAdministrationCommission,transferedits51%stakesinBengangGrouptoAnsteelGroupforfree,andAnsteelGroupwillbecometheCompany'sindirectcontrollingshareholder | AnsteelGrouphasmadecommitmentstoavoidindustrycompetition. | BasedontheprincipleofbenefitingthedevelopmentofBengangSteelandsafeguardingtheinterestsofshareholders,especiallytheinterestsofsmallandmediumshareholders,AnsteelGroupwillcomprehensivelyusevariousmethodssuchasassetrestructuring,businessadjustment,andentrustedmanagementtosteadilypromotetheintegrationofrelatedbusinessestosolvetheproblemofhorizontalcompetition. |
IV.Annualgeneralmeetingandextraordinaryshareholders’meetingsinthereportingperiod
1.Annualgeneralmeeting
| Sessions | Type | Investorparticipationratio | MeetingDate | Dateofdisclosure | Indexofinformationdisclosure |
| FirstExtraordinaryShareholdersGeneralMeetingof2022 | ExtraordinaryGeneralMeeting | 63.41% | March3rd,2022 | March4th,2022 | AnnouncementofResolutionsoftheFirstExtraordinaryGeneralMeetingofShareholdersof2022 |
| AnnualShareholdersGeneralMeetingof2021 | AnnualGeneralMeeting | 63.59% | April26th,2022 | April27th,2022 | AnnouncementofResolutionsoftheAnnualGeneralMeetingofShareholdersof2021 |
| SecondExtraordinaryShareholdersGeneralMeetingof2022 | ExtraordinaryGeneralMeeting | 76.72% | July22nd,2022 | July23rd,2022 | AnnouncementofResolutionsoftheSecondExtraordinaryGeneralMeetingofShareholdersof2022 |
| ThirdExtraordinaryShareholdersGeneralMeetingof2022 | ExtraordinaryGeneralMeeting | 76.82% | September9th,2022 | September10th,2022 | AnnouncementofResolutionsoftheThirdExtraordinaryGeneralMeetingofShareholdersof2022 |
| FourthExtraordinaryShareholdersGeneralMeetingof2022 | ExtraordinaryGeneralMeeting | 76.86% | December2nd,2022 | December3rd,2022 | AnnouncementofResolutionsoftheFourthExtraordinaryGeneralMeetingofShareholdersof2022 |
| FifthExtraordinaryShareholdersGeneralMeetingof2022 | ExtraordinaryGeneralMeeting | 77.07% | December29th,2022 | December30th,2022 | AnnouncementofResolutionsoftheFifthExtraordinaryGeneralMeetingofShareholdersfor2022 |
2.Requestforanextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestored
□Applicable?NotapplicableV.Statusofdirectors,supervisors,seniorexecutivesandemployees
1.Basicsituation
| Name | Position | Officestatus | Sex | Age | Startingdateofofficeterm | Expirydateofofficeterm | Numberofsharesheldatthebeginningoftheperiod(shares) | Numberofadditionalsharesheldduringtheperiod(shares) | Numberofsharesreducedduringtheperiod(shares) | Otherchangesinadditionsanddeletions(shares) | Numberofsharesheldattheendoftheperiod(shares) | Reasonsforchangeinshareincreaseordecrease |
| HuoGang | Chairman | Inoffice | Male | 49 | December7th,2021 | April26th,2025 | ||||||
| WangShiyou | Director,DeputyGeneralManager | Inoffice | Male | 48 | November18th,2021 | April26th,2025 | ||||||
| SunZhen | Director | Inoffice | Male | 39 | December27th,2022 | April26th,2025 | ||||||
| HanMei | Director | Inoffice | Female | 53 | May27th,2021 | April26th,2025 | ||||||
| LiuZhangman | Director,DeputyGeneralManager | Inoffice | Male | 48 | August17th,2022 | April26th,2025 | ||||||
| TangYaowu | Director | Inoffice | Male | 50 | July22nd,2022 | April26th,2025 | ||||||
| ZhangSuxun | IndependentDirectors | Inoffice | Female | 67 | May16th,2019 | April26th,2025 | ||||||
| YuanZhizhu | IndependentDirectors | Inoffice | Male | 41 | May20th,2020 | April26th,2025 | ||||||
| ZhongTianli | IndependentDirector | Inoffice | Female | 66 | May27th,2021 | April26th,2025 | ||||||
| ChengBin | ChairmanoftheSupervisoryBoard | Inoffice | Male | 59 | May27th,2021 | April26th,2025 | ||||||
| BaiYufei | Supervisor | Inoffice | Female | 52 | July22nd,2022 | April26th,2025 |
| Name | Position | Officestatus | Sex | Age | Startingdateofofficeterm | Expirydateofofficeterm | Numberofsharesheldatthebeginningoftheperiod(shares) | Numberofadditionalsharesheldduringtheperiod(shares) | Numberofsharesreducedduringtheperiod(shares) | Otherchangesinadditionsanddeletions(shares) | Numberofsharesheldattheendoftheperiod(shares) | Reasonsforchangeinshareincreaseordecrease |
| LuWeijun | Supervisor | Inoffice | Male | 47 | December7th,2021 | April26th,2025 | ||||||
| ZhangYanlong | Supervisor | Inoffice | Male | 45 | January26th,2014 | April26th,2025 | ||||||
| ZhaoXingtao | Supervisor | Inoffice | Male | 50 | June26th,2019 | April26th,2025 | ||||||
| JingTao | DeputyGeneralManager | Inoffice | Male | 52 | November18th,2021 | April26th,2025 | ||||||
| GuoYuwei | DeputyGeneralManager | Inoffice | Male | 53 | August17th,2022 | April26th,2025 | ||||||
| JiangXiaoyu | SecretaryoftheBoardofDirectors,HeadofFinance | Inoffice | Female | 51 | April26th,2022 | April26th,2025 | ||||||
| NiuLi | Director | Leaveoffice | Male | 54 | December25th,2021 | August2nd,2022 | ||||||
| LinDong | Director,DeputyGeneralManager | Leaveoffice | Male | 52 | May27th,2021 | August2nd,2022 | ||||||
| GaoDesheng | Director,SecretaryoftheBoard | Leaveoffice | Male | 48 | December7th,2021 | July6th,2022 | ||||||
| ZhaoZhonghua | Supervisor | Leaveoffice | Female | 38 | May27th,2021 | July6th,2022 | ||||||
| YangXiaofang | DeputyGeneralManager | Leaveoffice | Male | 58 | April16th,2021 | August2nd,2022 | ||||||
| WangDonghui | ChiefAccountant | Leaveoffice | Male | 53 | November18th,2021 | April26th,2022 | ||||||
| Total | -- | -- | -- | -- | -- | -- | 0 | 0 | 0 | 0 | 0 | -- |
Duringthereportingperiod,isthereanyresignationofdirectorsandsupervisorsanddismissalofseniormanagementpersonnelinthereportingperiod??Yes□No
(1)Mr.NiuLi,aformeremployeeDirectoroftheCompany,resignedduringthereportingperiodduetojobchangesduringhistermofoffice.
(2)Mr.LinDong,formerDirectorandDeputyGeneralManageroftheCompanyresignedduringthereportingperiodduetoachangeinhisemploymentduringhistermofoffice.
(3)Mr.GaoDesheng,formerDirectorandSecretaryoftheBoardofDirectorsoftheCompanyresignedduringthereportingperiodduetochangesinhisworkduringhistermofoffice
(4)Mr.YangXiaofang,theformerDeputyGeneralManageroftheCompany,resignedduringthereportingperiodduetochangesinhisworkduringhistermofoffice
(5)Ms.ZhaoZhonghua,theformerSupervisoroftheCompany,resignedduringthereportingperiodduetochangesinherworkduringhertermofoffice.
(6)Mr.WangDonghui,theformerChiefAccountantoftheCompany,resignedduringthereportingperiodduetothechangeinhisworkduringhistermofoffice.Changesindirectors,supervisorsandseniormanagementoftheCompany?Applicable□Notapplicable
| Name | Position | Officestatus | Date | Reason |
| NiuLi | Director | Leaveoffice | August2nd,2022 | Voluntaryturnover |
| LinDong | Director,DeputyGeneralManager | Leaveoffice | August2nd,2022 | Voluntaryturnover |
| GaoDesheng | Director,SecretaryoftheBoard | Leaveoffice | July6th,2022 | Voluntaryturnover |
| ZhaoZhonghua | Supervisors | Leaveoffice | July6th,2022 | Voluntaryturnover |
| YangXiaofang | DeputyGeneralManager | Terminationofemployment | August2nd,2022 | Jobchange |
| WangDonghui | ChiefAccountant | Terminationofemployment | April26th,2022 | Jobchange |
2.Postsholding
Professionalbackground,majorworkexperienceandcurrentmajorresponsibilitiesintheCompanyofthecurrentdirectors,supervisorsandseniormanagementMemberprofilesoftheBoardofDirectors:
HuoGang,male,49yearsold,Ph.D.,professor-researcher-levelseniorengineer.HesuccessivelyservedasthedirectorofthesteelrollingbranchofBenxiIronandSteelColdRollingPlant;thedeputydirectorofthetechnologydepartmentofBenxiIronandSteelNo.2ColdRollingPlant;thedeputydirectorofthetechnologydepartmentandthedirectoroftheinspectionlaboratory,thedirectoroftheproductiondepartment,theassistanttothegeneralmanager,thedeputygeneralmanager,GeneralManager;SecretaryofthePartyCommitteeandExecutiveDeputyDirectorandDirectoroftheThirdColdRollingPlantofBenxiSteelPlateCompany;DeputyGeneralManagerandDirectoroftheColdRollingPlantofBengangSteelPlateCo.,Ltd.;SecretaryofthePartyCommittee,ChairmanandChairmanoftheLaborUnionofBenxiIronandSteelInternationalTradeCompany.HeiscurrentlyamemberoftheStandingCommitteeofthePartyCommitteeandDeputyGeneralManagerofBengangGroup,SecretaryofthePartyCommitteeandChairmanoftheBoardofDirectorsofSheetMetalCompany,andChairmanoftheBoardofDirectorsof
BengangPuxiangCompany.WangShiyou,male,48yearsold,master,seniorengineer.Hesuccessivelyservedasthedirectorofthethermalworkshopandthesecretaryofthepartybranchoftheiron-makingplantofBengangSteelPlatesCompany,thedeputydirectorofthenewNo.1blastfurnaceworkshop,thedirectorofthefifthblastfurnaceworkshopandthesecretaryofthepartybranch,thechiefoftheproductionsection,thechiefoftheplanningsection,andthedeputydirector;BenxiSteelDirectorofStandardManagementoftheManufacturingDepartmentofthePlateCompany;DirectoroftheIron-makingPlantofBenxiIronandSteelBeiyingCompany;SecretaryofthePartyCommitteeandDirectoroftheIron-makingGeneralPlantofBenxiIronandSteelPlateCompany.Heiscurrentlythedeputysecretaryofthepartycommittee,directoranddeputygeneralmanagerofBengangSteelPlatesCo.,Ltd.(temporarilyresponsibleforoverallproductionandoperation).SunZhen,male,39yearsold,bachelorofuniversity,assistanteconomist.HehasservedasthedirectoroftheofficeofBengangSteelPlatesCompany;secretaryoftheorganpartycommittee,chairmanofthelaborunion,directoroftheofficeandsecretaryoftheBoardofDirectorsofBengangGroupCompany;deputyheadofthepartycommitteepreparatorygroup,headofthedisciplinarycommitteepreparatorygroup,chairmanofthelaborunion,employeedirector,generalcounsel,headoftheorganpartycommitteepreparatorygroupofBengangSteelMiningCompany;deputysecretaryofthepartycommittee,headofthedisciplinarycommitteepreparatorygroup,chairmanofthelaborunion,secretaryoftheorganpartycommitteeofBengangSteelPlatesCompany;heiscurrentlythedeputysecretaryofthepartycommittee,secretaryofthedisciplinarycommittee,chairmanofthelaborunionandsecretaryoftheorganpartycommitteeandemployeedirectorofBengangSteelPlatesCompany.LiuZhangman,male,48yearsold,collegedegree,seniorengineer.HehasservedasdeputydirectorofBeiyingSecondSteelmakingPlant,deputydirectorofBeiyingSteelmakingPlant;assistanttotheexecutivevicegeneralmanagerofBeiyingCompanyandchairmanofScienceandTechnologyAssociation,directorofTechnologyCenter;chiefengineerofBeiyingCompanyandchairmanofScienceandTechnologyAssociation,directorofNewProductsDepartment,managerofbarandwiredevelopmentprojectdepartment,directorofBarandWireInstitute;deputygeneralmanageranddirectorofBengangBeiyingCompany;deputydirectorofmanufacturingdepartmentofBengangSteelPlates;deputygeneralmanageroftheOperationsManagementDepartmentofBengangGroup.Currently,heisadirectoranddeputygeneralmanagerofBengangSteelPlatesCo.,Ltd.HanMei,female,53yearsold,Bachelor,senioraccountant.ShesuccessivelyservedasthedeputydirectorofthefinancedepartmentofBengangSteelPlateCo.,Ltd.;thedeputydirectoroftheauditdepartmentofBenxiIronandSteelGroupCo.,Ltd.andthedirectorofthesupervisoryboardmanagementdepartment,thedeputychairmanofthethirdboardofsupervisors,thesupervisorofBenxiIronandSteelGroupFinanceCompany,andtheauditorofBenxiIronandSteel(Group)Co.,Ltd.DirectoroftheDepartment;DirectoroftheAuditDepartmentofBengangGroupCo.,Ltd.,ChairmanandViceChairmanoftheSupervisoryCommitteeofBengangSteelPlateCo.,Ltd.SheiscurrentlytheDeputyChiefAccountantofBenxiIronandSteelGroupCorporation,GeneralManageroftheFinanceDepartmentofBenxiIronandSteelGroup,andDirectorofBenxiIronandSteelPlateCompany.TangYaowu,male,50yearsold,bachelorofuniversity,engineer.HehasservedasdeputydirectoroftherollingmillofBengangBeiyingCompany;executivedeputydirectoroftherollingmillofBengangBeiyingCompany;directoroftherollingmillofBengangBeiyingCompany;assistanttothegeneralmanageranddirectoroftheproductiondepartmentofBengangBeiyingCompany;chiefengineerofBengangBeiyingCompany;chiefengineeranddirectoroftherollingmillofBengangBeiyingCompany;deputygeneralmanagerandchiefengineerofBengangBeiyingCompany;deputydirectorofenergyandenvironmentalprotectiondepartmentofBengangSteelPlates.Heiscurrentlyafull-timedirectorandsupervisorofBengangGroup'soffice;directorofStainless-SteelCompany;directorofMachineryManufacturingCompany;directorofBengangSteelPlatesCo.,Ltd.andsupervisorofThermalPowerDevelopmentCompany.
ZhangSuxunFemale,67yearsold,bachelor'sdegree,professor.ShehasservedasateacherattheBusinessSchoolofLiaoningUniversity;nowsheisretired.YuanZhizhu,male,41yearsold,PhD,associateprofessorofaccountingatNortheasternUniversity,mastertutor,non-practicingmemberofChinesecertifiedpublicaccountants.HehasservedasalecturerintheSchoolofBusinessAdministrationofNortheasternUniversity;heiscurrentlythedirectoroftheAccountingDepartmentoftheSchoolofBusinessAdministrationofNortheasternUniversityandservesasadirectoroftheLiaoningAccountingandAbacusMentalArithmeticSocietyandadirectoroftheLiaoningAuditingSociety.ZhongTianli,Female,bornin1966,professor(doctoralsupervisor)atNortheasternUniversity.ShesuccessivelyservedasthedeputydeanoftheSchoolofBusinessAdministrationofNortheasternUniversity;thedeanoftheSchoolofBasicStudiesofNortheasternUniversityandthedirectoroftheInstituteofFinancialManagementoftheBusinessSchoolofNortheasternUniversity;sheiscurrentlyaprofessoroftheAccountingDepartmentoftheSchoolofBusinessAdministrationofNortheasternUniversity.MembersprofileoftheSupervisoryBoard:
ChengBin,male,59yearsold,master,seniorengineer.HesuccessivelyservedasthedirectorofthematerialsupplydepartmentofBenxiIronandSteel;thevicechairmanoftheboard,thesecretaryofthepartycommitteeandthechairmanofthelaborunion,thesecretaryoftheDisciplinaryCommittee,andthedeputymanagerofBengangInternationalTradeCo.,Ltd.;thedirectorofthecustomerservicedepartmentofthesalesdepartmentofBengangSteelPlateCo.,Ltd.;SecretaryofthePartyCommitteeandManageroftheCenter;SecretaryofthePartyCommitteeandDeputyDirectoroftheHotRollingPlantofBengangSteelPlateCo.,Ltd.,Ltd.;DirectoroftheAuditDepartmentofBengangGroup;currentlyChiefAuditorofBengangGroupCorporationandChairmanoftheSupervisoryBoardofBengangSteelPlateCo.,Ltd.BaiYufei,female,52yearsold,master,seniorengineer.ShehasservedasassistantprofessorandlecturerintheconstructionteachingandresearchdepartmentoftheDepartmentofMechanicalConstructionofBengangEngineeringCollege;directoroftheengineeringauditdivisionoftheauditdepartmentofBengangGroupCompany;directoroftheauditdepartmentofthePlatesCompany;supervisoroftheFinanceCompany;executivedeputyheadofthepreparationgroupofBengangGroupTenderCompany;managerofBengangGroupTenderCompany.Currently,sheisthegeneralmanageroftheauditdepartmentofBengangGroupCompany,directorofMiningCompany,andsupervisorofBengangSteelPlatesCo.,Ltd.LuWeijun,male,47yearsold,master,senioraccountant.HesuccessivelyservedasthechiefofthecostsectionofthefinancedepartmentofBenxiIronandSteel(Group)ConstructionCo.,Ltd.;thechiefbusinessengineeroftheauditdepartmentofBenxiIronandSteelSheetCo.,Ltd.;thechiefbusinessengineeroftheauditdepartmentofBenxiIronandSteelGroupCorporation.HeiscurrentlytheSupervisorandDeputyManageroftheFinanceDepartmentofBengangSteelPlateCo.,Ltd.ZhangYanlongMale,45yearsold,master,seniorengineer.HesuccessivelyservedasproductiondirectorofthesteelmakingworkshopofBengangSteelPlateCo.,Ltd.steelmakingplant;deputysectionchiefofthetechnicalqualitysectionofBengangSteelPlateCo.,Ltd.steelmakingplant;directorofthesteelmakingworkshopofBengangSteelPlateCo.,Ltd.steelmakingplant;BengangSteelPlateCo.,Ltd.Chiefoftheproductionsectionofthecompany'ssteelmakingplant;assistanttothedirectorofthesteelmakingplantofBengangSteelPlateCo.,Ltd.;currentlydeputydirectorofthesteelmakingplantofBengangSteelPlateCo.,Ltd.;supervisorofBengangSteelPlateCo.,Ltd.ZhaoXingtao,male,50yearsold,universitydegree,masterofengineering,seniorengineer.HehasservedasdeputychiefengineerofBengangPuxiangCompany;deputygeneralmanagerofBengangPuxiangCompany;deputydirectorofthecoldrollingmillofBengangSteelPlatesCo.,Ltd.;secretaryofthepartycommitteeandchairmanoflaborunionofthecoldrollingmillofBengangSteelPlatesCo.,Ltd.,Heiscurrentlythedeputyheadofthepartycommitteepreparatorygroup,headofthe
disciplinarycommitteepreparatorygroupandchairmanofthelaborunionofBengangSteelPlatesCompanyMarketingCenter,andsupervisorofBengangSteelPlatesCo.,Ltd.Profileofnon-directorseniormanagement:
JingTao,male,52yearsold,master,seniorengineer.Hehasservedasdirectorofthefinishingworkshopanddeputysecretaryofthepartybranchofthehotrollingmill,headofthetechnicalqualitysectionandsecretaryofthepartybranch,assistantplantmanageranddeputyplantmanagerofBengangSteelPlates;deputydirector,secretaryofthepartycommitteeanddeputydirectorofthequalitymanagementcenter,managerofthepackagingprojectdepartmentandmanagerofthePackagingCompanyofBengangSteelPlates;directorofthehotrollingmillofBengangSteelPlates;secretaryofthepartycommitteeandchairmanofthelaborunionandvicepresidentofthetechnicalresearchinstituteofBengangSteelPlates;directorofthescienceandtechnologyinnovationdepartmentofBengangGroup.HeiscurrentlythedeputygeneralmanagerandgeneralcounselofBengangSteelPlates,andtheheadofthepartycommitteepreparationgroupofthemarketingcenterofthePlatesCompany.GuoYuwei,male,53yearsold,master'sdegree,seniorengineer.HehasservedasassistantdirectorofironmakingplantanddeputydirectorofironmakingplantofBengangSteelPlatesCompany;secretaryofthepartycommitteeandchairmanofthelaborunionofironmakingplantanddeputydirectorofironmakingplantofBengangSteelPlatesCompany;memberofpreparatorygroupofthepartycommitteeanddeputygeneralmanagerofBeiyingCompany,directorofBengangSteelConstructionCompany;secretaryofthepartycommitteeanddeputydirectorofironmakingplantofBengangSteelPlatesCompany;HeiscurrentlythedeputygeneralmanagerofBengangSteelPlatesCo.,Ltd.JiangXiaoyu,female,51yearsold,universitydegree,senioraccountant.Shehasbeenthedirectorofcomprehensivemanagement,directorofcapitalmanagementanddeputygeneralmanagerofthefinancedepartmentofBengangGroupCompany,andsupervisorofBenxiBeiyingIron&Steel(Group)Co.,Ltd.Sheiscurrentlytheassistantgeneralmanager,financialofficerandsecretaryoftheBoardofDirectorsofBengangSteelPlates,andthechairmanofthesupervisoryboardofNortheastSpecialSteel.Positionsinshareholderunits?Applicable□Notapplicable
| Namesofthepersonsinoffice | Namesoftheshareholders | Titlesengagedintheshareholders | Startingdateofofficeterm | Expirydateofofficeterm | Doeshe/shereceiveremunerationorallowancefromtheshareholder |
| HuoGang | BengangGroupCo.,Ltd. | DeputyGeneralManager | October11th,2022 | Yes | |
| HanMei | BengangGroupCo.,Ltd. | DeputyChiefAccountant,GeneralManagerofFinanceDepartment | February1st,2021 | Yes | |
| TangYaowu | BengangGroupCo.,Ltd. | Full-timeDirector | April20th,2022 | Yes | |
| ChengBin | BengangGroupCo.,Ltd. | ChiefAuditor | February1st,2021 | Yes | |
| BaiYufei | BengangGroupCo.,Ltd. | GeneralManagerofAuditDepartment | November29th,2021 | Yes | |
| Descriptionofthepositionintheshareholder | None | ||||
Postsholdinginothercompanies?Applicable□Notapplicable
| Namesofthepersonsinoffice | Namesoftheothercompanies | Titlesengagedinothercompanies | Startingdateofofficeterm | Expirydateofofficeterm | Doeshe/shereceiveremunerationorallowancefromtheshareholder |
| HuoGang | BengangPOSCOCold-rolledSheetCo.,Ltd. | Chairman | November1st,2021 | No | |
| HanMei | DongbeiSpecialSteelGroupCo.,Ltd. | ChairmanoftheSupervisoryBoard | May11th,2022 | No | |
| Descriptionofthepositioninothercompanies | None | ||||
Punishmentbythesecurity’sregulatoryauthoritiesinthelastthreeyears
□Applicable?Notapplicable
3.RemunerationtoDirectors,SupervisorsandSeniorExecutivesDecision-makingprocedures,basisofrecognitionandactualpaymentoftheremunerationtodirectors,supervisorsandseniorexecutivesDecision-makingprocedures
1.TheRemunerationandAssessmentCommitteewillproduceaplanorproposal,whichwillbeimplementeduponapprovaloftheBoardortheShareholders’Meeting;
2.Accordingtoperformanceassessmentcriteriaandprocedures,theRemunerationandAssessmentCommitteeundertakesassessmentsontheDirectorsandSeniorExecutives;
3.RemunerationamountsandwaysofrewardswillbeproposedaccordingtotheassessmentandremunerationpoliciesforDirectors,SupervisorsandSeniorExecutives,andadoptedbyvoting;
4.TobeimplementeduponapprovaloftheBoard.BasisofrecognitionTheremunerationschemeforaparticularpositionisrecognizedbasedontherangeofresponsibilities,andduties.Remunerationsaredistributedbasedontheassessmentresultsandremunerationpolicies.ActualpaymentoftheremunerationRemunerationispaidonmonthlybasisaccordingtotheremunerationallocationpolicies.RemunerationofDirectors,SupervisorsandSeniorExecutivesduringthereportingperiodUnit:RMB10,000
| Name | Position | Sex | Age | Officestatus | Totalremunerationreceivedfromtheshareholder | WhetherreceiveremunerationintheCompany'srelatedparties |
| HuoGang | Chairman | Male | 49 | Inoffice | 36.95 | Yes |
| WangShiyou | Director,DeputyGeneralManager | Male | 48 | Inoffice | 44.1 | No |
| SunZhen | Director | Male | 39 | Inoffice | 1.2 | Yes |
| HanMei | Director | Female | 53 | Inoffice | Yes | |
| LiuZhangman | Director,DeputyGeneralManager | Male | 48 | Inoffice | 9.86 | Yes |
| TangYaowu | Director | Male | 50 | Inoffice | Yes | |
| ZhangSuXun | IndependentDirector | Female | 67 | Inoffice | 5 | No |
| YuanZhizhu | IndependentDirector | Male | 41 | Inoffice | 5 | No |
| ZhongTianli | IndependentDirector | Female | 66 | Inoffice | 5 | No |
| ChengBin | Chairmanofthe | Male | 59 | Inoffice | Yes |
| Name | Position | Sex | Age | Officestatus | Totalremunerationreceivedfromtheshareholder | WhetherreceiveremunerationintheCompany'srelatedparties |
| SupervisoryBoard | ||||||
| BaiYufei | Supervisors | Female | 52 | Inoffice | Yes | |
| LuWeijun | Supervisors | Male | 47 | Inoffice | 22.2 | No |
| ZhangYanlong | Supervisors | Male | 45 | Inoffice | 35.4 | No |
| ZhaoXingtao | Supervisors | Male | 50 | Inoffice | 33.36 | No |
| JingTao | DeputyGeneralManager | Male | 52 | Inoffice | 30.52 | No |
| GuoYuwei | DeputyGeneralManager | Male | 53 | Inoffice | 11.92 | Yes |
| JiangXiaoyu | SecretaryoftheBoardofDirectors,HeadofFinance | Female | 51 | Inoffice | 15.11 | Yes |
| NiuLi | Directors | Male | 54 | Leavingoffice | 17.45 | Yes |
| LinDong | Director,DeputyGeneralManager | Male | 52 | Leavingoffice | 23.83 | Yes |
| GaoDesheng | Director | Male | 48 | Leavingoffice | Yes | |
| ZhaoZhonghua | Supervisors | Female | 38 | Leavingoffice | 12.95 | No |
| YangXiaofang | DeputyGeneralManager | Male | 58 | Leavingoffice | 18.1 | Yes |
| WangDonghui | ChiefAccountant | Male | 53 | Leavingoffice | 7.68 | Yes |
| Total | -- | -- | -- | -- | 335.63 | -- |
VI.Dutyfulfillmentofdirectorsduringthereportingperiod
1.ThesituationoftheBoardofDirectorsduringthereportingperiod
| Sessions | MeetingDate | Dateofdisclosure | Indexofinformationdisclosure |
| 25thEighthplenarysession | January27th,2022 | January28th,2022 | AnnouncementonResolutionsof25thEighthplenarysession |
| 26thEighthplenarysession | February15th,2022 | February16th,2022 | AnnouncementonResolutionsof26thEighthplenarysession |
| 27thEighthplenarysession | March24th,2022 | March26th,2022 | AnnouncementonResolutionsof27thEighthplenarysession |
| 1stNinthplenarysession | April26th,2022 | April27th,2022 | AnnouncementonResolutionsof1stNinthplenarysession |
| 2ndNinthplenarysession | July6th,2022 | July7th,2022 | AnnouncementonResolutionsof2ndNinthplenarysession |
| 3rdNinthplenarysession | July27th,2022 | July28th,2022 | AnnouncementonResolutionsof3rdNinthplenarysession |
| 4thNinthplenarysession | August17th,2022 | August19th,2022 | AnnouncementonResolutionsof4thNinthplenarysession |
| 5thNinthplenarysession | September25th,2022 | September26th,2022 | AnnouncementonResolutionsof5thNinthplenarysession |
| 6thNinthplenarysession | October26th,2022 | October28th,2022 | AnnouncementonResolutionsof6thNinthplenarysession |
| 7thNinthplenarysession | November15th,2022 | November16th,2022 | AnnouncementonResolutionsof7thNinthplenarysession |
| 8thNinthplenarysession | December8th,2022 | December9th,2022 | AnnouncementonResolutionsof8thNinthplenarysession |
2.ThesituationofdirectorsattendingtheBODandshareholdersmeeting
| AttendanceofDirectorsatBoardofDirectorsandGeneralMeetingsofShareholders | |||||||
| Directorname | NumberofBoardmeetingsnecessarytobeattendedduringthereportingperiod | Numberofspotattendances | NumberofmeetingsattendedbyCommunication | Numberofattendancesbyrepresentative | Numberofabsences | Failuretopersonallyattendboardmeetingssuccessivelytwice(Yes/No) | Numberofgeneralmeetingstobeattended |
| HuoGang | 11 | 2 | 9 | 0 | 0 | No | 6 |
| WangShiyou | 11 | 2 | 9 | 0 | 0 | No | 6 |
| SunZhen | 0 | 0 | 0 | 0 | 0 | No | 0 |
| HanMei | 11 | 2 | 9 | 0 | 0 | No | 6 |
| LiuZhangman | 4 | 0 | 4 | 0 | 0 | No | 2 |
| TangYaowu | 6 | 0 | 6 | 0 | 0 | No | 3 |
| ZhangSuxun | 11 | 0 | 11 | 0 | 0 | No | 6 |
| YuanZhizhu | 11 | 0 | 11 | 0 | 0 | No | 6 |
| ZhongTianli | 11 | 0 | 11 | 0 | 0 | No | 6 |
| NiuLi | 6 | 2 | 4 | 0 | 0 | No | 3 |
| LinDong | 6 | 2 | 4 | 0 | 0 | No | 3 |
| GaoDesheng | 5 | 2 | 3 | 0 | 0 | No | 2 |
ExplanationoftwoconsecutiveabsencesfromattendingtheBoardofDirectorsinpersonNone
3.Objectionsofdirectorsonrelevantissues
Objectionsofindependentdirectorsonsomerelevantissues
□Yes√NoIndependentdirectorsproposednoobjectionagainsttherelevantmattersduringthereportingperiod.
4.OthernotestodutyfulfillmentofdirectorsWhetheranydirector’sadvicetotheCompanywasaccepted
√Yes□NoIllustrationofacceptanceoforfailuretoacceptadirector’sadvicetotheCompanyDirectorshavenotmaderecommendationsduringthereportingperiod.
VII.Dutyfulfillmentofthespecialcommitteesundertheboardduringthereportingperiod
| Committees | Membership | Numberofmeetingsheld | Meetingdate | Meetingcontent | Importantcommentsandsuggestionsraised | Otherperformanceofduties | Specificcircumstancesoftheobjection(ifany) |
| AuditCommittee | ZhangSuxun,YuanZhizhu,HanMei | 7 | January20th,2022 | 1.Proposalontheimplementationofdailyconnectedtransactionsfor2021 | Agree | Notapplicable | No |
| AuditCommittee | ZhangSuxun,YuanZhizhu,HanMei | 7 | March13th,2022 | 1.2021annualreportandabstract;2.2021annualfinancialaccountsreport;3.2021annualprofitdistributionproposal;4.proposaltosigntheRawMaterialsandServicesSupplyAgreementwithAnsteel;5.proposaltosigntheRawMaterialsandServicesSupplyAgreement(2022-2024)withPangangSteelVanadiumandTitanium;6.proposaltoanticipatedailyconnectedtransactionsin2022;7.2021annualinternalcontrolevaluationreport;8.proposaltomakeprovisionforassetimpairment;9.2021specialreportonthedepositanduseoffundsraised | Agree | Fullycommunicatewithauditors | No |
| AuditCommittee | ZhangSuxun,YuanZhizhu,HanMei | 7 | April20th,2022 | 2022firstquarterreport | Agree | Notapplicable | No |
| AuditCommittee | ZhangSuxun,YuanZhizhu,HanMei | 7 | July18th,2022 | Proposaltouseidleproceedstotemporarilyreplenishworkingcapital | Agree | Notapplicable | No |
| AuditCommittee | ZhangSuxun,YuanZhizhu,HanMei | 7 | August10th,2022 | 1.Half-yearlyreportfor2022;2.Proposaltochangetheaccountingfirm;3.Specialreportonthedepositanduseofproceedsforthehalf-yearlyperiodof2022 | Agree | Notapplicable | No |
| AuditCommittee | ZhangSuxun,YuanZhizhu,HanMei | 7 | October20th,2022 | 1.2022Thirdquarterlyreport;2.Proposalforchangeinaccountingestimates | Agree | Notapplicable | No |
| AuditCommittee | ZhangSuxun,YuanZhizhu,HanMei | 7 | December8th,2022 | Proposalonestimateddailyconnectedtransactionsfor2023 | Agree | Notapplicable | No |
| NominatingCommittee | YuanZhizhu,ZhangSuxun,HuoGang | 5 | March13th,2022 | 1.ProposalonthegeneralelectionoftheBoardofDirectorsoftheCompany;2.ProposalontheresignationoftheSecretaryoftheBoardofDirectors | Agree | Notapplicable | No |
| Committees | Membership | Numberofmeetingsheld | Meetingdate | Meetingcontent | Importantcommentsandsuggestionsraised | Otherperformanceofduties | Specificcircumstancesoftheobjection(ifany) |
| NominatingCommittee | YuanZhizhu,ZhangSuxun,HuoGang | 5 | April20th,2022 | 1.ProposaltoelectthechairmanoftheninthsessionoftheBoardofDirectorsoftheCompany;2.ProposaltoresigntheseniormanagementoftheCompany;3.Proposaltoappointseniormanagement | Agree | Notapplicable | No |
| NominatingCommittee | YuanZhizhu,ZhangSuxun,HuoGang | 5 | July1st,2022 | 1.ProposalontheresignationofdirectorsoftheCompany;2.ProposalonthenominationofcandidatesfordirectorsoftheCompany | Agree | Notapplicable | No |
| NominatingCommittee | YuanZhizhu,ZhangSuxun,HuoGang | 5 | July21st,2022 | ProposalontheappointmentoftheSecretaryoftheBoardofDirectorsoftheCompany | Agree | Notapplicable | No |
| NominatingCommittee | YuanZhizhu,ZhangSuxun,HuoGang | 5 | August10th,2022 | 1.ProposaltonominatecandidatesfordirectoroftheCompany;2.ProposaltoappointseniormanagementoftheCompany | Agree | Notapplicable | No |
| StrategyCommittee | HuoGang,WangShiyou,GaoDesheng,ZhongTianli | 3 | March13th,2022 | 1.2021annualreportoftheBoardofDirectors;2.2022annualinvestmentframeworkplanproposal | Agree | Notapplicable | No |
| StrategyCommittee | HuoGang,WangShiyou,GaoDesheng,ZhongTianli | 3 | September19th,2022 | Proposalonthesaleofequityinterestinawholly-ownedsubsidiaryandconnectedtransaction | Agree | Notapplicable | No |
| StrategyCommittee | HuoGang,WangShiyou,GaoDesheng,ZhongTianli | 3 | November10th,2022 | ProposalontheacquisitionofequityinterestinAnsteelGroupFinanceCo.,Ltd. | Agree | Notapplicable | No |
VIII.DutyfulfillmentofthesupervisorycommitteeWhetherthesupervisoryboardmadeanyobjectionagainstthesupervisionissueduringthereportingperiod
□Yes?NoTheSupervisoryBoardmadenoobjectiontothesupervisionissueduringthereportingperiod.
IX.Staffcondition
1.Numberofstaff,professionalstructureandeducationlevel
| Numberofin-servicestaffintheparentcompany | 16,854 |
| Numberofin-servicestaffinmainsubsidiaries | 629 |
| Totalpopulationofin-servicestaff | 17,483 |
| Totalpopulationofstaffreceivingremunerationinthecurrentperiod | 17,483 |
| Numberofretiredstaffwhoseexpensewasbornebyparentcompanyandmajorsubsidiarycompanies | 22,867 |
| Professionalcomposition | |
| Typeofprofessionalcomposition | Population |
| Productionstaff | 14,501 |
| Salesstaff | 234 |
| Technicianstaff | 1,658 |
| Financialstaff | 119 |
| AdministrativeStaff | 971 |
| Total | 17,483 |
| Educationaldegree | |
| Typeofeducationaldegree | Population |
| PhD. | 11 |
| Postgraduate | 319 |
| Undergraduate | 4,062 |
| JuniorCollege | 6,374 |
| Technicalsecondaryschool | 457 |
| HighSchoolandTechnicalSchool | 3,520 |
| MiddleSchoolandothers | 2,740 |
| Total | 17,483 |
2.Remunerationpolicies
In2022,theCompanyestablishedacompleteperformancemanagementsystembasedonthedeterminedannualproductionandoperationguidelines,policiesandoverallmanagementgoals.TheCompanyevaluatedtheoperationindicatorandworktasksofvariousfunctionaldepartments,factoriesandmines,setkeyperformanceevaluationindicators,andimplementsmonthlyevaluations.Salaryisbasedonposition,abilityandperformance.Salaryisdeterminedbypost,asalaryischangedbypost,guideemployeestoimprovetheirabilities,establishasalarydistributionmechanismthatreliesoncompetitionandincomebycontribution,andhighlightstheassessmentofkeyperformanceindicators,soastotrulyrealizethatincomecanbeincreasedordecreased.Continuetopromotethetotalsalarycontract,guideallunitstorationallyallocatehumanresources,optimizetheallocationmechanismandimprovelaborproductivity,andgivefullplaytotheroleofsalaryincentivesandconstraints.
3.Trainingplan
In2022,thecompanyaimstodeeplyimplementthetalent-firstdevelopmentstrategy,significantlyenhancetheabilityoftalenttraining,taketheoverallimprovementoftheoverallqualityofemployeesastheultimategoal,focusonmeetingtrainingneeds,andfocusonupdatingtrainingconcepts,innovatingtrainingmethods,andimprovingtrainingquality.Thefocusistoadheretotheprincipleof"controllingthetotalamount,optimizingthestructure,andfocusingonpracticalresults",andwhilecloselyfocusingontheproductionandoperationcenter,comprehensivelycarryoutsystematic,modular,andpreciseeducationandtraining.Promotethedevelopmentoftrainingproductsthatcombinelongandshort,highandlowmatching,andparallelsizes,andstrivetocreatecharacteristichigh-qualitytrainingprograms,effectivelyreleasetrainingeffectiveness,andfurtherimprovetheoverallqualityoftheworkforce,layingasolidfoundationforthehigh-qualitydevelopmentofthesteelsheet.TheCompanycompleted54trainingprogramsthroughouttheyear,training43,299people,withafulltrainingrateof80%andanannualtrainingplanimplementationrateof96%.Thetrainingtargetplanwasfullyachieved.
4.Outsourcing
□Applicable?Notapplicable
X.Profitdistributionorcapitalreserveconversion
Formulation,implementationandadjustmentofprofitdistributionpolicyofcommonsharesespeciallycashdividendpolicyduringthereportingperiod?Applicable□NotapplicableAsauditedbyShineWingCertifiedPublicAccountantsLLP,thenetprofitattributabletotheparentcompanyfortheyear2022wasRMB-1,232,976,557.37,plustheundistributedprofitofRMB2,977,306,297.64atthebeginningoftheyear,netoftheprofitdistributionofRMB2,464,914,827.4madeinthecurrentperiodfortheyear2021andtherecoveryoftheprofitfromthedisposalofGuangzhouBenpuAutomobileBoardSalesCo.,Ltd.inthecurrentperiodofRMB25,416.4.ThebalanceoftheundistributedprofitfortheperiodwasRMB-720,559,670.73.
TheprofitdistributionplanforFY2022is:Nocashdividend,nobonussharesandnocapitalizationofcapitalreserve.
| Specialdescriptionofcashdividendpolicy | |
| Whetheritmeetstherequirementsofthecompany'sarticlesofassociationortheresolutionsoftheshareholdersmeeting: | Yes |
| Whetherthedividendstandardandratioareclear: | Yes |
| Whethertherelevantdecision-makingproceduresandmechanismsarecomplete: | Yes |
| Whetherindependentdirectorshaveperformedtheirdutiesduediligenceandplayedtheirduerole: | Yes |
| Whethersmallandmediumshareholdershavesufficientopportunitiestoexpresstheiropinionsanddemands,andwhethertheirlegitimaterightsandinterestsarefullyprotected: | Yes |
| Whetheritmeetstherequirementsofthecompany'sarticlesofassociationortheresolutionsoftheshareholdersmeeting: | Yes |
BoththeCompany’sprofitandtheparentcompany’sretainedearningsarepositivehowevernoproposalofcashdividenddistributionwasproposedduringthereportingperiod
□Applicable?NotapplicableProfitDistributionorCapitalReserveConversionProposalintheReportingPeriod
□Applicable?NotapplicableTheCompanyplanstodistributenocashdividends,nobonussharesandnoincreaseincapitalbywayofthetransferofpublicreservesfortheyear.XI.ImplementationofCompanyequityincentiveplans,employeestockownershipplansorotheremployeeincentives
□Applicable?NotapplicableDuringthereportingperiod,theCompanyhadnoequityincentiveplan,employeestockownershipplanorotheremployeeincentivemeasuresandtheirimplementation.XII.Constructionandimplementationofinternalcontrolsystemduringthereportingperiod
1.Constructionandimplementationofinternalcontrolsystem
(1)ReconstructthesystemofrulesandregulationsinBengangSteelPlates.TheCompanyhasestablishedasystemofrulesandregulationswhichtakesfundamentalmanagementregulationsasthebasis,professionalmanagementregulationsasthemainbody,andworknormsasthesupport.ThecurrenteffectiverulesandregulationsattheCompanylevelrelatetofunctionalmodulesandcorebusinessessuchasstrategicplanning,productionoperation,financialmanagement,etc.
(2)Strictlyexecutetheregulationsreviewprocedure,andestablishandimplementalong-termmechanismforthemanagementofrulesandregulations.theCompanyhasrevisedandissuedProvisionsontheManagementoftheRulesandRegulationsinBengangSteelPlatesCo.,Ltd.,releasedNoticeonCarryingouttheEstablishmentofRulesandRegulations,pushedforwardtheworkofissuing,revising,repealing,andinterpretingrulesandregulationsasplanned,adheredtotheprinciplesofbeingcompliantwithbothlawsandregulations,beingsystematicandcomprehensive,pragmaticandeffective,andbeingclearinrightsandresponsibilities.theCompany’srulesandregulationshavebeenanalyzedandsortedout,andatotalof215regulationshavebeenreformulatedandrevised.Thecompliancereviewnodehasbeenaddedtotheregulationsreviewprocedure.It’samustthatregulationshavepassedthecompliancereviewbeforebeingreleasedtoensuretherateoftheregulations'compliancereviewis100%.
(3)Optimizethespecialinternalcontrolsystem.theCompanyhasgraduallyestablishedandimprovedtheinternalcontrolsysteminvolvingriskinternalcontrol,compliancemanagement,andsupervisionandaccountability,basedonRegulationsonComprehensiveRiskandInternalControlManagementinBengangSteelPlatesCo.,Ltd.andsupportedbyMeasuresforRiskAssessmentandComplianceReviewofImportantEventsinBengangSteelPlatesCo.,Ltd.,MeasuresforInternalControlEvaluationinBengangSteelPlatesCo.,Ltd.,andComplianceManagementMeasuresinBengangSteelPlatesCo.,Ltd.
(4)Improvethestandardsofriskassessmentandinternalcontroldefectsevaluation.Accordingtotherequirementsofmaterialdefects,significantdefectsandgeneraldefectsevaluationintheenterprise'sinternalcontrolsystemandthefactorssuchastheCompany'ssize,riskappetiteandrisktolerance,theCompanyhasnaileddownthespecificqualitativeandquantitativestandardsofinternalcontroldefectsevaluationwithreferencetotheriskassessmentstandards.Eachfunctionalmanagementdepartmentcanidentifyanddeterminecriticalriskfactorsinrelevantbusinessesbyanalyzingtheimpactandprobabilityofrisksandconsideringpracticalconditions.BasedontheinternalcontrolinspectionofAnsteelGroupandtheself-examinationofBengangSteelPlates,theCompanyhastimelyrectifiedtheidentifiedinternalcontroldefectsandfullyperformedtheroleoftheBoardofDirectorsintheleadershipandsupervisionofcomprehensiveinternalcontrolevaluation.Intheannualinternalcontrolauditingofanexternalauditinstitution,theCompanyhasreachedthegoalofzeromaterialinternalcontroldefects.
2.Materialinternalcontroldefectsfoundduringthereportingperiod
□Yes?No
XIII.Managementandcontrolofsubsidiariesduringthereportingperiod
| Companyname | Integrationplan | Integrationprogress | Problemsencounteredduringintegration | Solutionsimplemented | Solutionsprogress | Follow-upsolutionsplan |
| HarbinBengangEconomicandTradingCo.,Ltd. | Deregistration | Completed | N/A | N/A | N/A | N/A |
| NanjingBengangMaterialsSalesCo.,Ltd. | Deregistration | Completed | N/A | N/A | N/A | N/A |
| ChongqingLiaobenSteel&IronTradingCo.,Ltd. | Deregistration | Completed | N/A | N/A | N/A | N/A |
| WuxiBengangSteel&IronSalesCo.,Ltd. | Mergersandacquisitions | Completed | N/A | N/A | N/A | N/A |
| BengangBaojin(Shenyang)AutomobileNewMaterialsTechnologyCo.,Ltd. | Lossofcontrolduetoothershareholders’raisedfunds | Completed | N/A | N/A | N/A | N/A |
XIV.Internalcontrolself-evaluationreportorinternalcontrolauditreport
1.Internalcontrolself-evaluationreport
| Disclosingdateoftheinternalcontrolauditreport(fulltext) | March30th,2023 |
| Indexoftheinternalcontrolauditreport(fulltext) | http://www.cninfo.com.cn |
| Proportionoftotalassetsofsubsidiarieswithinthescopeoftheself-evaluationreportintotalassetsoftheCompany’sconsolidatedfinancialstatements | 97.16% |
Proportionofoperatingincomeofsubsidiarieswithinthescopeofself-evaluationreportinoperatingincomeoftheCompany’sconsolidatedfinancialstatements
| 92.50% | ||
| Standardsofdefectsevaluation | ||
| Category | Financialreport | Non-financialreport |
| Qualitativecriteria | 1.Materialdefects:fraudofdirectors,supervisorsandseniormanagement;theCompanycorrectsitspublishedfinancialstatements;thereisamaterialmisstatementinthefinancialstatements,andtheinternalcontrolfailstodetectthemisstatementduringtheoperation;thecorporateauditcommitteeandtheinternalauditinstitutionhavenoeffectonthesupervisionofinternalcontrol.2.Significantdefects:theseriousnessandeconomicconsequencesofaccountingpolicies,accountingand | 1.theCompany'sstandardsofinternalcontroldefectsevaluationintermsofdailyoperation:1)Materialdefects:haveamaterialimpactonthenormaloperationoftheCompany:affectmostoftheCompany’smainbusinesstypes/mainfunctionalareas;haveasignificantimpactontheoveralloperationoftheCompanywhichmakesitdifficulttorecoverinthelongrun.2)Significantdefects:haveagreatimpactonthenormaloperationoftheCompany:affectsomeoftheCompany'smainbusinesstypes/mainfunctionalareas;havealargeimpactontheCompany'soveralloperation,requiringagreatpricefortheCompanytorecoverinalongperiodoftime.3) |
| financialreportingarelowerthanmaterialdefects,buttherearestillinternalcontroldefectsthatmaycausetheCompanytodeviatefromthecontrolobjectives.3.Generaldefects:otherthanmaterialandsignificantdefects,otherinternalcontroldefectsinfinancialreporting. | Generaldefects:haveamoderateorlessimpactonthenormaloperationoftheCompany:affectacertainmainbusinesstype/mainfunctionalareaorgeneralbusinesstype/generalfunctionalareaoftheCompany;haveamoderateorlessimpactontheoveralloperationoftheCompany,requiringsomepricefortheCompanytorecoverwithinacertainperiodoftime.2.theCompany'sstandardsofinternalcontroldefectsevaluationintermsofbusinessobjectives:1)Materialdefects:haveasignificantimpactontheCompany'sbusinessobjectives:haveasignificantimpactonanytypeofbudgetindicatorsoftheCompany;affectmostoftheCompany'simportantmanagementobjectives;haveasignificantimpactonliquidity(0.8times≤currentassetturnoverrate<1time);haveasignificantimpactonanytypeofbudgetindicatorsoftheCompany(profit≥RMB800million).2)Significantdefects:haveagreatimpactontheCompany'sbusinessobjectives:haveagreatimpactonanytypeofbudgetindicatorsoftheCompany;affectsomeimportantmanagementobjectivesoftheCompany;haveagreatimpactoncurrentcapital(0.5times≤currentassetturnoverrate﹤0.8times);haveagreatimpactonanytypeofbudgetindicatorsoftheCompany(RMB400million≤profit﹤RMB800million).3)Generaldefects:haveamoderateorlessimpactontheCompany’sbusinessobjectives:haveamoderateorlessimpactonanytypeofbudgetindicatorsoftheCompany;affectoneimportantmanagementobjectiveorseveralgeneralmanagementobjectivesoftheCompany;haveamoderateorlessimpactoncurrentcapital(currentassetturnoverrate﹤0.5times);haveamoderateorlessimpactonanytypeofbudgetindicatorsoftheCompany(profit﹤RMB400million).3.theCompany'sstandardsofinternalcontroldefectsevaluationintermsofsafety:1)Materialdefects:affectacertainnumberofemployees/publichealth/safety,criticalaccidents.2)Significantdefects:affectsomeemployees/publichealth/safety,majoraccidents.3)Generaldefects:affectasmallnumberofemployees/publichealth/safety,minoraccidents.4.theCompany'sstandardsofinternalcontroldefectsevaluationintermsofenvironmentalprotection:1)Materialdefects:seriousenvironmentaldamage,theoccurrenceofcriticalenvironmentalincidents(nationallevelIIoraboveenvironmentalprotectionaccidents).2)Significantdefects:greatenvironmentaldamageandmajorenvironmentalincidents(nationallevelIII).3)Generaldefects:moderateorlessenvironmentalimpact,generalenvironmentalincidents(nationallevelIV). |
| Quantitativecriteria | 1.Rangeofmisstatementamountofmaterialdefectsinfinancialstatements:1)misstatement≥5%oftotalprofits;2)misstatement≥3%oftotalassets;3)misstatement≥1%oftotaloperatingincome;4)misstatement≥1%oftotalshareholders’equity.2.Rangeofmisstatementamountofsignificantdefectsinfinancialstatements:1)3%oftotalprofits≤misstatement＜5%oftotalprofits;2)0.5%oftotalassets≤misstatement＜3%oftotalassets;3)0.5%oftotaloperatingincome≤misstatement＜1%oftotaloperatingincome;4)0.5%oftotalshareholders’equity≤misstatement＜1%oftotalshareholders’equity.3.Rangeofmisstatementamountofgeneraldefectsinfinancialstatements:1)misstatement＜3%oftotalprofits;2)misstatement＜0.5%oftotalassets;3)misstatement＜0.5%oftotaloperatingincome;4)misstatement＜0.5%oftotalshareholders’equity. | None |
| Numberofmaterialdefectsinfinancialreporting(a) | 0 | |
| Numberofmaterialdefectsinnon-financialreporting(a) | 0 | |
| Numberofsignificantdefectsinfinancialreporting(a) | 0 | |
| Numberofsignificantdefectsinnon-financialreporting(a) | 0 | |
2.Internalcontrolauditreport
?Applicable□Notapplicable
| Opinionintheinternalcontrolauditreport | |
| AccordingtoFundamentalRulesofEnterpriseInternalControlandrelatedregulations,BengangSteelPlateshasremainedeffectiveinternalcontrolinfinancialreportinguptoDecember31st,2022. | |
| Statusoftheinternalcontrolauditreport | Disclosure |
| Disclosingdateoftheinternalcontrolauditreport(fulltext) | March30th,2023 |
| Indexoftheinternalcontrolauditreport(fulltext) | http://www.cninfo.com.cn |
| Internalauditreport’sopinion | Standardunqualifiedopinion |
| Whethertherearesignificantdefectsinnon-financialreporting | No |
Whethertheaccountants’firmissuesaqualifiedopinionintheinternalcontrolauditreport
□Yes?NoWhethertheinternalcontrolauditreportissuedbytheaccountants’firmagreeswiththeself-assessmentreportoftheBoardofDirectors?Yes□No
XV.Self-examinationandrectificationofgovernanceinitiativesoflistedcompanies
Duringthereportingperiod,theCompanyactivelyfollowedandimplementedthespiritofOpinionsonFurtherImprovingtheQualityofListedCompaniesissuedbytheStateCouncilandworkedouttheListofListedCompanyGovernanceInitiativesbasedonChinaSecuritiesRegulatoryCommission[2020]No.69AnnouncementonCarryingoutInitiativesonCorporateGovernanceofListedCompaniesandtheCompany’spracticalconditions.Thelistreflectedtheproblemsandrectificationofgovernanceinlistedcompaniesinatrue,accurateandcomprehensivemanner.TheCompanymadeeffortstostrengthentheendogenousdrivingforceofcorporategovernance,improvethecorporategovernancesystem,andbuildahealthyecologyofcorporategovernance.Inthoseways,ithasfurtheroptimizedthegovernancestructureasalistedcompanyfeaturingclear-cutdutiesandresponsibilities,harmoniouscoordinationandoperation,andeffectivecheckandbalance,andhastampedthefoundationforhigh-qualitydevelopmentasalistedcompanyandpromotedthegovernancelevel.
SectionV.EnvironmentalandSocialResponsibility
I.Majorenvironmentalissues
Whetherthelistedcompanyanditssubsidiariesbelongingtothekeypollutantdischargeunitsannouncedbytheenvironmentalprotectiondepartment?Yes□NoEnvironmentalprotectionpoliciesandindustrystandardsTheCompanyimplementedEnvironmentalProtectionLawofthePeople'sRepublicofChina,EnvironmentalImpactAssessmentLawofthePeople'sRepublicofChina,WaterPollutionPreventionandControlLawofthePeople'sRepublicofChina,AtmosphericPollutionPreventionandControlLawofthePeople'sRepublicofChina,SoilPollutionPreventionandControlLawofthePeople'sRepublicofChina,SolidWastePollutionPreventionandControlLawofthePeople'sRepublicofChina,andotherrelevantecologicalandenvironmentalpolicies,andcompliedwithsuchindustrystandardsasWaterPollutantsEmissionStandardforIronandSteelIndustry(GB13456-2012)andPollutantsEmissionStandardforCokingChemicalIndustry(GB16171-2012),SinteringandSinteredPelletsAirPollutantsEmissionStandardforIronandSteelIndustry(GB28662-2012),AirPollutantsEmissionStandardforIronMakingIndustry(GB28663-2012),AirPollutantsEmissionStandardforSteelRollingIndustry(GB28665-2012),andAirPollutantsEmissionStandardforThermalPowerPlants(GB13223-2011).EnvironmentalprotectionadministrativelicenseTheCompanyhas14pollutantsdischargingunits,11ofwhicharekeypollutantsdischargingunits.ThelicensewasobtainedforthefirsttimeinDecember2018andwasextendedtoDecember2026inDecember2021accordingtotherequirementsoflicensemanagement.ThreeunitshavebeenregisteredandgrantedtheregistrationreceiptoffixedpollutionsourcedischargeinMarch2020,whichisvaliduntil2025.theCompanystrictlyimplementsthestableoperationofenvironmentalprotectionfacilities,strictlycontrolsthedischargeofpollutants,anddischargespollutantswithinthescopeofpermissioneveryyear.Itcompletesquarterlyreportingandannualreportingthroughonlinefilingasrequired.Industryemissionstandardsandthedescriptionofpollutantsemissioninvolvedinproductionandbusinessactivities
| Companyorsubsidiaryname | Categoryofmajorpollutantsandcharacteristicpollutants | Nameofmajorpollutantsandcharacteristicpollutants | Emissionmethod | Numberofdischargeoutlets | Distributionofdischargeoutlets | Emissionconcentration/intensity | Implementedpollutantsdischargestandards | Totalemissions | Totalapprovedemissions | Excessiveemissions |
| BengangSteelPlatesCo.,Ltd. | Wastewaterpollutants | COD | Continuous | 1 | EnergyGeneralPlantSewageTreatmentPlant | 12.5 | 50 | 66.18tonnes | Notapprovedbythegovernment | None |
| BengangSteelPlatesCo.,Ltd. | Wastewaterpollutants | Ammonianitrogen | Continuous | 1 | EnergyGeneralPlantSewageTreatmentPlant | 0.4 | 8 | 2.17tonnes | Notapprovedbythegovernment | None |
| BengangSteelPlatesCo.,Ltd. | Exhaustgaspollutants | Particulatematter | Continuousandintermittent | 191 | Rawmaterialdumper,transferstation,receivingtank,pre-batching;iron-makingcastingyard,furnaceroof,fuel,solvent,granulation,orecoketank,sinteringheaddustremoval,desulfurization,machinetaildustremoval;ironandsteelwaterpretreatment,north-southpouringstation,tundish,primarydustremoval,secondarydustremoval,refiningdustremoval;specialsteelelectricfurnace,refiningfurnace;cokingcoaladdition,cokepushing,dryquenching,chimneydesulfurizationanddenitrification;powerboilerdustremoval,desulfurizationanddenitrification;coldrolling |
Rawmaterial14-19;sintering13-25;ironmaking7-35;steelmaking3-10;specialsteel3-10;coking5-50;powergeneration3-18;coldrolling6-18;hotrolling6-15.
| Rawmaterial25;sintering50-30;ironmaking25;steelmaking20-50;specialsteel20;coking10-50;powergeneration5-30;coldrolling20-30;hotrolling20-30. | Smoke1,231tonnes,powder11,794tonnes | Notapprovedbythegovernment | None |
| Companyorsubsidiaryname | Categoryofmajorpollutantsandcharacteristicpollutants | Nameofmajorpollutantsandcharacteristicpollutants | Emissionmethod | Numberofdischargeoutlets | Distributionofdischargeoutlets | Emissionconcentration/intensity | Implementedpollutantsdischargestandards | Totalemissions | Totalapprovedemissions | Excessiveemissions |
| acidregeneration,pickling,straightening,welding,leveling,annealing,roasting;hotrollingfurnace. | ||||||||||
| BengangSteelPlatesCo.,Ltd. | Exhaustgaspollutants | Sulfurdioxide | Continuousandintermittent | 65 | Sinteringhead;cokeovenchimney;powergenerationboilerdesulfurization;coldrollingroastingandannealing;hotrollingheatingfurnace. | Sinteringhead12-40;cokeovenchimney20-50;powergeneration5-45;coldrolling80-100;hotrolling118-128. | Sinteringhead200;cokeoven30-100;powergeneration35-200;coldrolling100;hotrolling150. | 3,378tonnes | Notapprovedbythegovernment | None |
| BengangSteelPlatesCo.,Ltd. | Exhaustgaspollutants | Nitrogenoxides | Continuousandintermittent | 58 | Sinteringhead;cokingchimney;powergenerationboiler;coldrollingroasting;annealing;hotrollingheatingfurnace. | Sinteringhead90-167;cokingchimney60-120;powergeneration21-140;coldrolling69-172;hotrolling105-124. | Sinteringhead300;cokingchimney150-500;powergeneration50-200;coldrolling200;hotrolling300. | 8,637tonnes | Notapprovedbythegovernment | None |
PollutantstreatmentIn2022,13ultra-lowemissionprojectshavebeencompleted,involvingiron-makingyards,miningtankdustremovalandstandardupgradingtransformation,andsinteringheaddesulfurizationanddenitrificationtransformation;secondarydustremovaltransformationofsteelmaking;cokingprocessVOCstreatment,machinesidedustremoval,desulfurizationanddenitrificationandotherprojecttransformation.Pollutionpreventionandcontrolfacilitiesareinstableoperation,andthetotalamountofpollutantemissionsin2022decreasedby8.6%yearonyear.Environmentalself-monitoringprogramManualmonitoringpointsofpollutionsourcesduringthereportingperiod:261fluegasmonitoringpoints,14wastewatermonitoringpoints,13boundarynoisepoints,17atmosphericdustreductionpoints,and190organizedfluegasmonitoringpoints,71unorganizedfluegasmonitoringpoints.Monitoringiscarriedoutonaweekly,monthly,quarterly,semi-annualandannualfrequency.204piecesofmonitoringdatawereobtainedatatmosphericdustreductionpoints.TheCompanyhasaccomplishedroutinemonitoringofunorganizedatmosphericdustreductionandorganizedfluegasandacquired1,985piecesofmonitoringdatathroughouttheyear.416piecesofmonitoringdatawereobtainedinboundarynoisepoints;3,457piecesofmonitoringdatawereobtainedinwastewatermonitoringpoints;125piecesofmonitoringdatawereobtainedinotherpoints.Monthly,quarterlyandannualmonitoringreportswereprepared.Automaticmonitoringpointsofpollutionsourcesduringthereportingperiod:50organizedfluegasmonitoringpoints,and2wastewatermonitoringpoints.TheCompanyhasrealizedcontinuousautomaticmonitoring.EmergencyplanforenvironmentalemergenciesStrictlybasedontheEmergencyResponseLawofthePeople'sRepublicofChina,theNoticeonPrintingandDistributingthe"GuidelinesforRiskAssessmentofEnvironmentalEmergenciesforEnterprises(Trial),andMeasuresfortheFilingManagementofEnvironmentalEmergencyResponsePlansofEnterprisesandUndertakings(Trial)andotherexistinglawsandregulations,theCompanyanditssubsidiarieshavecarriedoutenvironmentalemergencymanagement,revisedtheemergencyplanforenvironmentalemergencies,re-implementedriskassessmentandemergencyresourceinvestigation,andhavealreadycompletedassessmentandfilingaccordingtothemanagementrequirementsofthemunicipalbureau.Atthesametime,eachunitofBengangSteelPlatesformulatesadrillplanaccordingtotheemergencyplanandcarriesoutthedrill.InvestmentinenvironmentalgovernanceandprotectionandpaymentofenvironmentalprotectiontaxIn2022,theoperatingexpensesofenvironmentalprotectionfacilitieswereRMB1.239billion.RMB355millionwasinvestedinenvironmentalgovernanceandprotection,andRMB37.46millionwaspaidforenvironmentalprotectiontaxes.Measuresaretakentoreducecarbonemissionsduringthereportingperiodandtheireffects?Applicable□NotApplicable
1.Reducethecomprehensiveenergyconsumptionofsteelintonne.TheCompanycontinuouslyreducedthecomprehensiveenergyconsumptionofsteelintonnebycuttingdowntheenergyconsumptionofthemainprocessandimprovingsecondaryenergyrecoveryin2022.Intheiron-makingprocess,theCompanyensuredstableblastfurnaceoperationandrosetheairtemperaturetoreducethefuelratio,reducedthegasconsumptionthroughthecentralizedcontrolofthehotblastfurnace,anddidagoodjobinthelinkagebetweenTRTandtheblastfurnacetoimprovetherecoveryofresidualenergy,realizingthepowergenerationofironintonne42.53kwh/t.Underthestableoperationofthesinteringmachine,thepowergenerationofwasteheatreached13kwh/t,andthecomprehensivewasteheatrecoveryofmineintonneroseto0.15GJ.Inthecokingprocess,theCompanyfocusedonthestableoperationofthedryquenchingsystem,increasingtheCDQrecoveryofcokesteamintonnejouleto7.0GJ.Inthesteel-makingprocess,theCompanyoptimizedthewasteheatrecoverybyimprovinggasrecoveryand
transferringwasteheat-saturatedsteamtosupportthepowergenerationof265m2sinteringmachine.Thecomprehensiveenergyconsumptionofsteelmakingremainedbelow-10kgce/tafterApril.Inthehotrollingprocess,theCompanymadecontinuouseffortstoreduceairconsumptionduringthewaitingperiod,andincreasethepurchaseoffirst-andsecondary-levelwasteheatsteam.In2022,theCompany'scomprehensiveenergyconsumptionofsteelintonnewasplannedtobe580kgce/t,andtheactualconsumptionwas575.92kgce/twhichwas4.08kgce/tlowerthantheplanand10.42kgce/tlowerthanthesameperiodoflastyear.
2.Thefuelconsumptionofsinteredsolidsinthesinteringprocesswas50.68kg/t,whichwas1.52kg/tlowerthantheplanand
1.67kg/tlowerthanthesameperiodoflastyear.Theenergyconsumptionofthenegativeenergysteel-makingprocesswas-
5.5kgce/t,ayear-on-yeardecreaseof2.81kgce/t.Whilereducingthecomprehensiveenergyconsumptionofsteelintonne,theCompanypaidcontinuous,strenuouseffortsinthefuelratioreduction,makingthefuelratio532.64kg/tin2022,ayear-on-yeardecreaseof1.86kg/t.
3.Pushforwardtheimplementationofenergy-savingprojectsinfullswing.TheCompanyinvestedatotalofRMB1,257.49million,completed7energysavingprojectsin2022andputthemintooperation,includingCCPPpowergeneration,six-furnaceheatexchangertransformation,cold-firedsubstationdynamiccompensationtransformation,hotrolling1700productionlinereactivepowercompensationtransformation,hotrolling2300productionlinephosphorusremovalpumptransformation,convertersaturatedsteamsystemoptimizationandenergy-savingtransformation,convertergasrecoveryandefficiencyimprovementtransformation.TheprojectscreatedbenefitsofRMB177.52millionandsaved59,500tonnesofstandardcoalperyear.Administrativepenaltiesforenvironmentalissuesduringthereportingperiod
| Companyorsubsidiaryname | Causationofpenalty | Violation | Consequenceofpenalty | Influenceontheproductionandoperationoflistedcompanies | theCompany'srectificationmeasures |
| BengangSteelPlatesCo.,Ltd. | Fugitiveemissions | 1.9#Thecokeovendoorwasnottightlyclosed,resultinginfugitiveemissionsofsomesmokeanddustinthecarbonizationchamber.2.TheemissionoffugitiveexhaustgaspollutantsontheroofofNo.8cokeovenexceededthestandardvalue;3.Duringtheoxygenationblowingprocessofsteelmaking7#converter,partofthesmokeanddustoverflewfromtheplantcovertocausefugitiveemissions,duetopoormoltenironcompositionandimproperoperation. | Environmentalprotectionpenaltieswereimposed3times,totalingRMB470,000. | None | Allhavebeenrectified:1.Thecokingprocesswasimplementedinstrictaccordancewiththeoperationprocedure.Thesealingofthefurnacedoorwascheckedintime.Thefurnacewallwasweldedandrepaired,andthefurnacedoorwasrepairedtoreducesensorypollution.2.Themainreasonforexceedingthestandardwasasbelow.Theammoniadecompositionfurnaceoftheproductionfacilitywasoverhauledaccordingtothemaintenanceplaninthegaspurificationoperationarea,andthereplacementofgaspipelinesduringthemaintenanceandrelocationprocesscausedfugitiveemissions.TheCompanyacceleratedtheconstructionprogress,andresumednormalproduction.3.TheCompanystrengthenedthequalityinspectionofmoltenironandcoordinatedthereplacementofmoltenironintimewhenproblemswerefound.Thesmokeproblemcausedbypoormoltenironcompositionwaseffectivelyresolved. |
OtherenvironmentalinformationthatshouldbedisclosedNoneOtherenvironmentalprotectionrelatedinformationNone
II.Socialresponsibility
Pleasereferto2022CorporateSocialResponsibilityReportofBengangSteelPlatesCo.,Ltd.disclosedonhttp://www.cninfo.com.cnonMarch30
th,2023.III.Consolidateandexpandtheachievementsofpovertyalleviationandruralrevitalization
1.TheCompanyselected10outstandingcadresinasuccessiontoparticipateinruralrevitalization,4ofwhichstillserveasthefirstsecretaryinvillagesforthepresent.Duringthespecialperiodofnormalepidemicpreventionandcontrol,thecadresinvillagesremainedtruetotheiroriginalaspiration,kepttheirmissioninmind,strengthenedtheirconfidence,andworkedtenaciously.Theydidagoodjobinpovertyalleviationandpreventionfromreturningtopovertyafterbeingliftedoutofitindesignatedpovertyreliefregionsin2022.theCompanyprovidedgrowthpointsfortheruralcollectiveeconomythroughemployeewelfareprocurementofagriculturalandsidelineproductsinruralareas,effectivelyincreasingpercapitaincome.IthasbeencompletingratedasOutstandingUnitforPovertyAlleviationinDesignatedRegionsofLiaoningProvinceformanyconsecutiveyears.
2.Toprovideassistanceforemployeesinneedwhoweredeterminedinaccordancewiththestandardforthereviewandidentificationofalltypesofemployeesinneed,theCompanymadefulluseoftheassistancesystemofthenationaltradeunionandthenormalizedassistancemechanismandendeavoredtooffersubstantiveassistancetoemployeesinneedthroughacombinationofholidayvisitsandregularassistance.TheCompanyprovidedmutual-aidinsurancecoveringhospitalization,criticalillnessandaccidentforemployeestofurtherimprovetheircapacityforresistingmedicalrisks.
SectionVI.ImportantEvents
I.Performanceofcommittedissues
1.Thefulfilledcommitmentsduringthereportingperiodandunder-fulfillmentcommitmentsbytheendofthereportingperiodmadebyactualcontroller,
shareholder,partyinvolved,acquirer,companyandotherrelatedparties
?Applicable□Notapplicable
| Commitments | Commitmentparty | Typeofcommitment | Contents | Commitmenttime | Commitmentperiod | Performance |
| Commitmentmadeintheacquisitionreportortheequitychangereport | AnsteelGroupCo.,Ltd. | Othercommitment | InordertomaintaintheindependenceofBengangSteelPlates,AnsteelGroupundertakesthefollowing:1.AnsteelGroupguaranteestokeepseparatefromBengangSteelPlatesintermsofassets,personnel,finance,organizationandbusiness,andstrictlyabidesbytheChinaSecuritiesRegulatoryCommission'sregulationsontheindependenceoflistedcompanies.ItdoesnotuseitscontrollingpositiontointerferewiththestandardoperationofBengangSteelPlates,interferewithBengangSteelPlates’businessdecisions,ordamagethelegitimaterightsandinterestsofBengangSteelPlatesandothershareholders.AnsteelGroupandothersubsidiariescontrolledbyitpromisenottoillegallyoccupythefundsofBengangSteelPlatesanditscontrolledsubsidiariesinanyway.2.TheabovecommitmentswillcontinuetobeeffectiveduringtheperiodwhenAnsteelGrouphascontroloverBengangSteelPlates.IfAnsteelGroupfailstofulfilltheabove-mentionedcommitmentsandcauseslossestoBengangSteelPlates,AnsteelGroupwillbearthecorrespondingliabilityforcompensation. | August20th,2021 | Longterm | Undernormalfulfillment |
| Commitmentmadeintheacquisitionreportortheequitychangereport | AnsteelGroupCo.,Ltd. | Othercommitment | Inordertoavoidhorizontalcompetition,AnsteelGroupundertakesthefollowing:(1)InviewoftheoverlappingbusinessbetweenAnsteelGroupandBengangSteelPlatesafterthecompletionoftheacquisition,accordingtotherequirementsofexistinglaws,regulationsandrelevantpolicies,AnsteelGroupwillissuealetterofcommitment.Within5yearsorlesstimeifmoreeffortfromthedateofissue,itwillcomprehensivelyadoptvariousmethodssuchasassetrestructuring,businessadjustment,andentrustedmanagementtosteadilypromotetheintegrationofrelevantbusinessestosolvetheproblemofhorizontalcompetition,inaccordancewiththe | August20th,2021 | Longterm | Undernormalfulfillment |
| Commitments | Commitmentparty | Typeofcommitment | Contents | Commitmenttime | Commitmentperiod | Performance |
| requirementsoftherelevantsecuritiesregulatoryauthorities,underthepremiseofcomplyingwiththeapplicablelawsandregulationsandrelevantregulatoryrulesatthattime,andintheprincipleoffacilitatingthedevelopmentofBengangSteelPlatesandsafeguardtheinterestsofshareholders,especiallytheinterestsofsmallandmediumshareholders.Theaforesaidsolutionsincludebutarenotlimitedto:1)Assetrestructuring:adifferentwayofassetpurchase,assetreplacement,assettransferorotherfeasiblerestructuringmethodspermittedbyrelevantlawsandregulations,suchascashconsiderationorissueshareconsideration.ItwillgraduallysortoutandreorganizetheassetsoftheoverlappingpartsofthebusinessbetweenAnsteelGroupandBengangSteelPlatestoeliminatetheoverlappingofsomebusinesses.2)Businessadjustment:itwillsortoutthebusinessboundariesandtrythebesttoachievedifferentiatedoperations,suchasbusinesscategorizationthroughassettransactions,businessseparationandotherdifferentmethods,includingbutnotlimitedtobusinesscomposition,productgrade,applicationfieldandcustomergroups,etc.3)Entrustedmanagement:bysigninganentrustmentagreement,onepartywillentrustdecisionmakingandmanagementofrelatedassetoperationofoverlappingpartstotheotherpartyforunifiedmanagement.4)Otherfeasiblesolutionspermittedbylaws,regulationsandrelevantpolicies.Theimplementationoftheabove-mentionedsolutionsispremisedonperformingthenecessarydeliberationproceduresforlistedcompaniesandtheapprovalproceduresofsecuritiesregulatoryauthoritiesandrelevantcompetentauthoritiesinaccordancewithrelevantlawsandregulations.(2)AnsteelGrouphasnotyetformulatedaspecificimplementationplanandtimearrangementforsolvingtheproblemofpartialbusinessoverlapbetweenAnsteelGroupandBengangSteelPlates.Itwilltimelyperformthedutyofdisclosinginformationrequiredbyrelevantlawsandregulationswhenafeasible,specificplanisformulated.(3)Inadditiontotheabovecircumstances,whenAnsteelGrouporothersubsidiariesobtainbusinessopportunitiesthatmaycompetewiththebusinessofBengangSteelPlates,AnsteelGroupwilldoitsbesttogiveBengangSteelPlatestheprioritytodevelopsuchopportunitiesandtherighttofirstrefuseorpurchasetheproject,ensurethepriceoftherelevanttransactionisfairandreasonable,andsetthepricebasedonthebusinesspracticesfollowedinnormalcommercialtransactionsasindependentthirdparties.(4)AnsteelGroupguaranteesthatitwillstrictly |
| Commitments | Commitmentparty | Typeofcommitment | Contents | Commitmenttime | Commitmentperiod | Performance |
| abidebylaws,regulations,ArticlesofAssociationofBengangSteelPlatesCo.,Ltd.anditsrelevantmanagementsystem,andnotuseitspositionasanindirectcontrollingshareholderofBengangSteelPlatestoseekillegitimateinterestswhichtherebyimpairtherightsandinterestsofothershareholdersofBengangSteelPlates.(5)DuringtheperiodofcontroloverBengangSteelPlates,theabovecommitmentsmadebyAnsteelGroupareallvalid.IntheeventofviolationoftheabovecommitmentsandthedamagetotherightsandinterestsofBengangSteelPlatesiscaused,AnsteelGroupiswillingtoassumethecorrespondingliabilityfordamages. | ||||||
| Commitmentmadeintheacquisitionreportortheequitychangereport | AnsteelGroupCo.,Ltd. | Othercommitment | InordertostandardizeandreducetherelatedtransactionsbetweenAnsteelGroupandlistedcompanies,AnsteelGrouphasmadecommitments:1.AnsteelGroupwillensuretheindependenceofBengangSteelPlates’business,thecompletenessofitsassets,andtheindependenceandcompletenessofproduction,supply,salesandotherauxiliaryfacilities.2.AnsteelGroupandotherenterprisescontrolledbyAnsteelGroupwillnottakeadvantageofthecontroloverBengangSteelPlatestoseekpreferentialtransactionswithBengangSteelPlatesanditssubordinateenterprises.3.AnsteelGroupandotherenterprisescontrolledbyAnsteelGroupwillavoidandreduceunnecessarytransactionswithBengangSteelPlatesanditssubordinateenterprises.Ifthereisatrulynecessaryandunavoidabletransaction,AnsteelGroupandotherenterprisescontrolledbyAnsteelGroupwillsignanagreementwithBengangSteelPlatesanditssubordinateenterprisesinaccordancewiththeprinciplesoffairness,equity,andcompensationforequalvalue,performlegalprocedures,andcomplywithrelevantlaws,regulationsandstandarddocumentsandArticlesofAssociationofBengangSteelPlatesCo.,Ltd.toperformthedutyofdisclosinginformationandexecuterelevantinternaldecisionmakingandapprovalprocedures.AnsteelGroupensuresthatitwillnotofferanunfairpriceorconditioncomparedwithmarketpriceinthetransactionswithBengangSteelPlatesanditssubordinateenterprisesandnotusesuchtransactionstoengageinanybehaviorthatdamagesthelegitimaterightsandinterestsofBengangSteelPlatesanditsshareholders.4.IntheeventofviolationoftheabovecommitmentsandthedamagetothelegitimaterightsandinterestsofBengangSteelPlatesiscaused,AnsteelGroupwillcompensateforthelossescausedtoBengangSteelPlatesaccordingtolaws. | August20th,2021 | Longterm | Undernormalfulfillment |
| Commitmentmadeduringinitialpublic | Companydirectors,senior | Othercommitment | AccordingtotherelevantregulationsofChinaSecuritiesRegulatoryCommission,alldirectorsandseniormanagementoftheCompanyhave | May22nd,2019 | Longterm | Undernormalfulfillment |
| Commitments | Commitmentparty | Typeofcommitment | Contents | Commitmenttime | Commitmentperiod | Performance |
| offeringorrefinancing | management/BenxiSteel&Iron(Group)Co.,Ltd. | madethefollowingcommitmentstotheCompany’sfulfillmentofthedilutedimmediatereturnmeasures:1.Ipromisetoperformmydutiesfaithfullyanddiligently,andsafeguardthelegitimaterightsandinterestsoftheCompanyandallshareholders.2.Ipromisenottodeliverbenefitstootherunitsorindividualswithoutcompensationorunderunfairconditions,nortouseothermeanstodamagetheCompany'sinterests.3.Ipromisetorestricttheposition-relatedconsumptionbehaviorofcompanydirectorsandseniormanagementpersonnel.4.IpromisenottousetheCompany’sassetstodoinvestmentandconsumptionactivitiesthatarenotrelatedtotheperformanceofmyduties.5.Withinthescopeofmyresponsibilitiesandauthority,IpromisetomakeeveryefforttopromotetheCompany'sBoardofDirectorsortheremunerationsystemestablishedbytheremunerationandappraisalcommitteetobelinkedtotheimplementationoftheCompany'scompensationmeasures,andvoteinfavoroftherelevantproposalsreviewedbytheCompany'sBoardofDirectorsandgeneralmeetings(IfIhavevotingrights).6.IftheCompanyintendstoimplementequityincentives,Ipromiseto,withinthescopeofmyresponsibilitiesandauthority,makeeveryefforttopromotetheCompany’sproposedequityincentiveexerciseconditionstobelinkedtotheimplementationoftheCompany'scompensationmeasures,andvoteinfavoroftherelevantproposalsreviewedbytheCompany'sBoardofDirectorsandgeneralmeetings(IfIhavevotingrights).7.BetweentheissuanceofthiscommitmentandthecompletionoftheCompany’spublicissuanceofconvertiblecorporatebonds,ifChinaSecuritiesRegulatoryCommissionannouncesothernewregulationsoncompensationmeasuresandcommitmentsandtheabovecommitmentscannotmeettheregulations,theCompanypromisestoissueasupplementarypromiseinaccordancewiththelatestregulations.TheCompany'scontrollingshareholder,BenxiIron&Steel(Group)Co.,Ltd.,promisesnottointerferewiththeCompany'soperationandmanagementactivitiesbeyonditsauthoritynortoinfringeontheCompany'sinterests. | ||||
| Commitmentmadeduringinitialpublicofferingorrefinancing | BengangGroupCo.,Ltd.andBenxiSteel&Iron(Group)Co.,Ltd. | Othercommitment | 1.Thefilingofforeigneconomicandtradeoperators,takingintoaccounttheneedtograduallyimprovethequalificationcertificationofrawmaterialsuppliers,customsimportandexportqualificationcertification,etc.Intheshortterm,theactualconditionsandcapabilitiesforindependentimportandexportbusinessarestilllacking.InordertoensurethenormalbusinessdevelopmentofBengangSteel | July24th,2019 | Longterm | Undernormalfulfillment |
| Commitments | Commitmentparty | Typeofcommitment | Contents | Commitmenttime | Commitmentperiod | Performance |
| Plates,theGroupagreesthatwithintheperiodofnomorethan5yearsfromthedateofissuanceofthiscommitment,themainimportandexportbusinessofBengangSteelPlateswillstillberepresentedbyBengangInternationalTradeuntilBengangSteelPlatescanindependentlydevelopImportandexportbusiness,andBengangInternationalTrade,duringthisperiod,willprovidethenecessarysupportfortheestablishmentandimprovementofBengangSteelPlates’importandexportbusiness.Inaddition,thesalescompanyunderBengangInternationalTradeisonlyresponsibleforsellingtheproductsofBeiyingIronandSteel(Group),andneversellssteelproductsofathirdparty.2.ThesalescompanyundertheGroup,ShanghaiBengangIronandSteelSalesCo.,Ltd.,iscurrentlynolongeractuallyengagedinanybusinessactivities,specifically:ShanghaiBengangIron&SteelSalesCo.,Ltd.filedforbankruptcyin2014,andtheShanghaiChangningDistrictPeople'sCourtissuedanannouncementtoappointGuohaoLawyer(Shanghai)Officeasthebankruptcyadministrator.Aftercommunicationwiththebankruptcyadministrator,uponcompletionoftheaforementionedbankruptcyliquidationprocedures,therelevantproceduresforcancellationofShanghaiBengangIronandSteelSalesCo.,Ltd.willbehandledimmediately. | ||||||
| Commitmentmadeduringinitialpublicofferingorrefinancing | BengangGroupCo.,Ltd.andBenxiSteel&Iron(Group)Co.,Ltd. | Othercommitment | Inordertoavoidhorizontalcompetition,BenxiIronandSteelGroupCo.,Ltd.andBengangGroupCo.,Ltd.(hereinaftercollectivelyreferredtoastheGroup),asadirectcontrollingshareholderandanindirectshareholderofBengangSteelPlatesCo.,Ltd.(HereinafterreferredtoasBengangSteelPlates),undertakethefollowing:1.DuringtheperiodwhentheGroupisthecontrollingshareholderofBengangSteelPlates,theGroupandotherenterprisescontrolledbytheGroupotherthanBengangSteelPlatesnolongerproduceordevelopanyproductsthatcompeteormaycompetewiththeproductsproducedbyBengangSteelPlatesanditssubsidiariesathomeandabroad,anddonotdirectlyorindirectlyoperateanybusinessthatcompeteswithBengangSteelPlatesanditssubsidiaries.Businessesthatmayconstitutecompetition,noraretheyinvolvedininvestinginanyotherenterprisethatcompeteswithormaycompetewithproductsorbusinessesproducedbyBengangSteelPlatesanditssubsidiaries.2.IfBengangSteelPlatesanditssubsidiariesfurtherexpandtheirbusinessscope,theGroupandotherenterprisescontrolledbytheGroupwillnotcompetewiththeexpandedbusinessofBengangSteelPlatesanditssubsidiaries.IfanybusinessmaycompetewiththeexpandedbusinessofBengangSteelPlates | July24th,2019 | Longterm | Undernormalfulfillment |
| Commitments | Commitmentparty | Typeofcommitment | Contents | Commitmenttime | Commitmentperiod | Performance |
| anditssubsidiaries,itwillwithdrawfromthecompetitionwithBengangSteelPlatesasfollows:(1)StopthebusinessthatmayormaycompetewithBengangSteelPlatesanditssubsidiaries;(2)IncorporatethecompetingbusinessesintothebusinessscopeofBengangSteelPlatesanditssubsidiariesinalegalandcompliantmanner;(3)Transferthecompetingbusinesstounrelatedthirdparties.3.IftheGrouphasengagedinorparticipatedinanybusinessopportunitythatmayconstitutecompetitionwithBengangSteelPlates’operation,theGroupshallimmediatelynotifyBengangSteelPlatesoftheaboveopportunity.IfBengangSteelPlatesiswillingtotakeadvantageofthebusinessopportunityandreplieswithanaffirmativeanswerwithinareasonableperiodspecifiedinthenotice,theGroupwillendeavortogivethebusinessopportunitytoBengangSteelPlateswiththeconditionsnotworsethanthoseofferedtoanyindependentthirdparty.4.Iftheabovecommitmentsareviolated,theGroupiswillingtobearalltheresponsibilitiesarisingtherefrom,andfullycompensateorcompensateforalldirectorindirectlossescausedtoBengangSteelPlates.5.ThisletterofcommitmentcontinuestobeeffectiveduringtheperiodoftheGroupasthecontrollingshareholderofBengangSteelPlatesandcannotbechangedorwithdrawn. | ||||||
| Commitmentmadeduringinitialpublicofferingorrefinancing | BengangGroupCo.,Ltd.andBenxiSteel&Iron(Group)Co.,Ltd. | Othercommitment | InordertoregulateTheGroup'srelatedtransactionwithBengangSteelPlates,BenxiIronandSteelGroupCo.,Ltd.andBengangGroupCo.,Ltd.(hereinaftercollectivelyreferredtoastheGroup),asadirectcontrollingshareholderandanindirectshareholderofBengangSteelPlatesCo.,Ltd.(HereinafterreferredtoasBengangSteelPlates),undertakethefollowing:1.TheGroupwillfullyrespecttheindependentlegalpersonstatusofBengangSteelPlates,ensuretheindependentoperationandindependentdecisionmakingofBengangSteelPlates,guaranteetheindependenceofBengangSteelPlates’business,thecompletenessofasset,andtheindependenceofpersonnelandfinancetoavoidandreduceunnecessaryrelatedtransactions.TheGroupwillstrictlycontrolrelatedtransactionswithBengangSteelPlatesanditssubsidiaries.2.TheGroupandotherenterprisescontrolledbytheGrouppromisenottouseloans,debtrepayment,substitutefundsorotherwaystooccupyormisappropriatethefundsofBengangSteelPlatesanditssubsidiaries,norrequireBengangSteelPlatesanditssubsidiariestoprovideillegalguaranteesfortheGroupandotherenterprisescontrolledbytheGroup.3.TheGroupandotherenterprisescontrolledbytheGroupwillreducerelatedtransactionsasmuchaspossiblewithBengangSteelPlates.If | July24th,2019 | Longterm | Undernormalfulfillment |
| Commitments | Commitmentparty | Typeofcommitment | Contents | Commitmenttime | Commitmentperiod | Performance |
| relatedtransactionsareindeednecessaryandunavoidable,itwillstrictlyimplementthedecisionmakingauthority,decisionmakingprocedures,avoidancesystemandotherrequirementsstipulatedinBengangSteelPlates’ArticlesofAssociationandrelatedtransactiondecisionmakingsystems,givefullplaytotheroleoftheBoardofSupervisorsandindependentdirectors,andearnestlyfulfilltheobligationofdisclosinginformationtoensurethattransactionsareconductedinaccordancewiththeopen,fair,andequalprinciplesofmarkettransactionsandnormalcommercialterms.TheGroupandotherenterprisescontrolledbytheGroupwillnotrequireoracceptBengangSteelPlatestoofferpreferentialtreatmentwhichisnotgiventoathirdpartyinanyfairmarkettransaction,therebyprotectingothershareholdersandinterestsofBengangSteelPlatesfromdamage.4.TheGroupguaranteesthattheabovecommitmentsarecontinuouslyeffectiveandirrevocableaslongasBengangSteelPlatesislistedonthedomesticstockexchangeandtheGroupactsasitsdirectandindirectcontrollingshareholder.Ifanyviolationoftheabovecommitmentsoccurs,theGroupthereforewillbearallthelossescausedtoBengangSteelPlates. | ||||||
| WhetherCommitmentfulfilledontimeornot | Yes | |||||
2.TheCompanyremarksthatthereareassetsorprojectswhichmeettheoriginalprofitforecastandthe
reasonswhenthereareassetsorprojectsprofitforecastoftheCompanyandthereportingperiodisstillintheforecastperiod
□Applicable?Notapplicable
II.Non-operatingcapitaloccupationoflistedcompaniesbythecontrollingshareholderand
otherrelatedparties
□Applicable?NotapplicableTherewasnonon-operatingoccupationoffundsbythecontrollingshareholderandrelatedparties.III.Non-compliancewithexternalguarantees
□Applicable?NotapplicableTherewasnonon-compliancewithexternalguarantees.IV.IllustrationbytheBoardofDirectorsonthelatestQualifiedAuditReport
□Applicable?NotapplicableV.IllustrationbytheBoardofDirectors,theSupervisoryCommitteeandtheIndependentDirectors(ifany)ontheQualifiedAuditReportoftheaccountants’firmforthereportingperiod
□Applicable?NotapplicableVI.Illustrationofchangesinaccountingpolicy,accountingestimateandsignificantaccountingerrorascomparedwiththefinancialreportoflastyear?Applicable□Notapplicable
?Significantchangesinaccountingpolicy
①AccountingStandardsforBusinessEnterprisesInterpretationNo.15OnDecember30
th,2021,theMinistryofFinanceissuedtheAccountingStandardsforBusinessEnterprisesInterpretationNo.15(Caikuai[2021]No.35,hereinafterreferredtoasInterpretationNo.15),inwhich"Accountingfortheexternalsalesofproductsorby-productsproducedbyanenterprisebeforethefixedassetsreachtheusableconditionasintendedorareintheR&DProcess"and"Judgmentonloss-makingcontracts"cameintoforceonJanuary1
st
,2022.
②AccountingStandardsforBusinessEnterprisesInterpretationNo.16OnDecember30
th
,2022,theMinistryofFinanceissuedtheAccountingStandardsforBusinessEnterprisesInterpretationNo.16(Caikuai[2022]No.31,hereinafterreferredtoasInterpretationNo.16),inwhich"Accountingfordeferredincometaxrelatedtoassetsandliabilitiesarisingfromasingletransactionwhichisnotsubjecttotheaccountingtreatmentofinitialrecognitionexemption"cameintoforceonJanuary1
st
,2023."Accountingfortheincometaximplicationsofdividendsrelatedtofinancial
instrumentsclassifiedbyissuersasequityinstruments"and"Accountingforenterpriseschangingfromcash-settledsharepaymenttoequity-settledsharepayment"cameintoforceonthedateofpromulgation.?Significantchangesinaccountingestimate
| Contentandcausationofaccountingestimatechange | Approvalprocess | Dateofapplication | Affecteditemsoffinancialstatements | Amount |
| Typesoffixedassets,Depreciationperiod,andresidualvaluerate | The6thmeetingoftheCompany’s9thBoardofDirectors | July1st,2022 | Accumulateddepreciation | 271,947,090.70 |
| Operatingcosts | 266,457,899.30 | |||
| Administrativeexpenses | 5,489,191.40 | |||
| Totalprofit | 271,947,090.70 | |||
| Netprofit | 271,947,090.70 |
Inrecentyears,theCompanyhascontinuouslyincreasedinvestmentinfixedassets,launchedtechnicaltransformationandtechnologicalinnovationofthemainequipmentproductionline,regularlyoverhauledtheequipment,improvedtheperformanceoftheequipmentandextendedtheservicelifeoffixedassets.FollowingtheprincipleofaccountingprudenceandAccountingStandardsforBusinessEnterprisesNo.4-FixedAssetsArticle15ofChapter4about"anenterpriseshallreasonablyconfirmtheservicelifeandestimatednetresidualvalueoffixedassetsaccordingtothenatureanduseoffixedassets",theCompanychangestheaccountingestimatesoffixedassettypes,depreciationperiodandresidualvaluerateaccordingtothenatureanduseoffixedassets,sothatthetype,depreciationperiodandresidualvaluerateoffixedassetsareclosertopracticalconditions.OnOctober26
th,2022,theCompanyheldthe6thmeetingofthe9thBoardofDirectorsanddeliberatedandpassedtheProposalonChangesinAccountingEstimate.TheCompanybegantoimplementthechangedaccountingestimateonJuly1
st,2022.ThischangeinaccountingestimatehadnoimpactontheCompany'smainbusinessscope.TheCompany'sdepreciationamountwillreducebyRMB270millionin2022.
VII.Illustrationofchangesintheconsolidationscopeascomparedwiththefinancialreportof
lastyear?Applicable□NotapplicableChongqingLiaobenSteel&IronTradingCo.,Ltd.,HarbinBengangEconomicandTradingCo.,Ltd.,NanjingBengangMaterialsSalesCo.,Ltd.,andWuxiBengangSteel&IronSalesCo.,Ltd.werederegisteredduringthereportingperiod.TheCompanylostcontroloverBengangBaojin(Shenyang)AutomobileNewMaterialsTechnologyCo.,Ltd.duetotheraisedfundsofXiamenXianghongInvestmentCo.,Ltd.onJuly8
th
,2022,andthusBengangBaojinwasnolongerincludedintheconsolidation.BengangSteelPlatesLiaoyangPelletCo.,Ltd.wassoldtoBenxiSteel&Iron(Group)MiningCo.,Ltd.onSeptember30
th
,2022.VIII.Appointmentanddismissalofcertifiedaccountants’firmAccountants’firmcurrentlyappointed
| Nameofthedomesticaccountants’firm | ShineWingCertifiedPublicAccountantsLLP |
| Paymenttothedomesticaccountants’firm(inRMB10,000) | 295 |
| Servicelifeofdomesticaccountants’firmprovidingauditservice | 1 |
| NameofCPAsfromthedomesticaccountants’firm | FanJianping,ChenJian |
| Servicelifeofdomesticaccountants’providingauditservice | 1 |
Whethertheaccountants’firmischangedduringthereportingperiod?Yes□NoWhethertheaccountants’firmischangedduringtheauditingperiod?Yes□NoOnAugust17
th,2022andSeptember9
th,2022,theCompanyrespectivelyheldthe4thmeetingofthe9thBoardofDirectorsandthe3rdextraordinarygeneralmeeting,deliberatedandpassedtheProposalonChangesinAccountants’Firm,andappointedShineWingCertifiedPublicAccountantsLLPastheCompany'sauditinstitutionfortheyearof2022.TheCompanyhascommunicatedinadvancewithBDOChinaShuLunPanCPAs,theCompany'soriginalaccountingandauditinstitution,aboutthechangeofaccountants’firm,andthelatterwasinformedofthechangeandconfirmedthattherewasnoobjection.Whetherthechangeoftheaccountants’firmhascompliedwiththeapprovalprocedure?Yes□NoDetailedillustrationoftheappointmentandchangeoftheaccountants’firmTheCompanytookintoaccountthepracticalconditionsincludingitsbusinessdevelopmentandauditneeds,personnelarrangementandworkplansoftheaccountants’firm,andintendedtoShineWingCertifiedPublicAccountantsLLPastheCompany'sauditinstitutionfortheyearof2022aftercomprehensivecommunicationandnegotiation,TheCompanyhascommunicatedinadvancewithBDOChinaShuLunPanCPAs,theCompany'soriginalaccountingandauditinstitution,aboutthechangeofaccountants’firm,andthelatterwasinformedofthechangeandconfirmedthattherewasnoobjection.TheCompany'sAuditCommittee,independentdirectorsandtheBoardofDirectorshadnoobjectiontothechangeofaccountants’firm,whichhasbeendeliberatedandapprovedbytheCompany'sgeneralmeetingofshareholders.Fordetails,pleaserefertotheAnnouncementontheProposedChangeofAccountants’Firm(2022-051)disclosedbytheCompanyonAugust19
th,2022.Engagementofaccountant’sfirms,financialconsultantsorsponsorsforinternalcontrolauditing?Applicable□NotapplicableTheCompanyappointedShineWingCertifiedPublicAccountantsLLPastheauditinstitutionforinternalcontrolauditingatthepriceofRMB600,000.IX.Riskofsuspensionorterminationoflistingafterthedisclosureoftheannualreport
□Applicable?NotApplicableX.Bankruptcyandrestructuringevents
□Applicable?NotApplicableTherewerenobankruptcyandrestructuringeventsduringthereportingperiod.
XI.Significantlawsuitsandarbitrations
?Applicable□Notapplicable
| Basicinformationoflawsuits(arbitrations) | Totalamountinvolved(RMB10,000) | Wherethereareestimatedliabilities | Progressoflawsuits(arbitrations) | Judicialresultandinfluenceoflawsuits(arbitrations) | Enforcementofthejudgmentoflawsuitsandarbitrations | Dateofdisclosure | Indexofdisclosure |
| Summaryofsignificantlawsuitsandarbitrationsnotreachingthestandardofdisclosure | 6,961 | No | Injudgment/execution | TheCompanyhaswonmostcasesandisnotaffected. | Implementationaccordingtolaws |
XII.Punishmentandrectification
□Applicable?NotApplicableTherewasnopunishmentorrectificationduringthereportingperiod.XIII.CreditstatusoftheCompanyanditscontrollingshareholdersandactualcontrollers
□Applicable?NotApplicable
XIV.Majorrelatedtransactions
1.Relatedtransactionsrelevanttodailyoperations
?Applicable□Notapplicable
| Relatedparties | Relationship | Typeofrelatedpartytransactions | Contentofrelatedpartytransactions | Pricingprincipleofrelatedpartytransactions | Priceofrelatedpartytransactions | Amountofrelatedpartytransactionss(RMB10,000) | Proportionofsimilartransactions | Theapprovedtradinglimitoftransactions(RMB10,000) | Whetherexceedtheapprovedlimit(Y/N) | Meansofpaymentofrelatedpartytransactions | Availablemarketpriceofsimilartransactions | Dateofdisclosure | Indexofdisclosure |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Samecontroller | Purchasinggoods/providingservices | Purchasingmainrawmaterials | Onagreement | Relatedagreementprice | 1,401,540.48 | 22.51% | 1,928,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiIronandSteel(Group)MiningCo.,Ltd. | Sameparentcompany | Purchasinggoods/providingservices | Purchasingmainrawmaterials | Onagreement | Relatedagreementprice | 652,634.84 | 10.48% | 895,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiIronandSteel(Group)MetallurgicalSlagCo.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Purchasingmainrawmaterials | Onagreement | Relatedagreementprice | 28,954.33 | 0.47% | 51,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiIronandSteel(Group)IndustrialDevelopmentCo.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Purchasingmainrawmaterials | Onagreement | Relatedagreementprice | 40,737.18 | 0.65% | 30,000 | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| AnshanIronandSteelCo.,Ltd. | BothbelongtoAnsteelGroup | Purchasinggoods/providingservices | Purchasingmainrawmaterials | Onagreement | Relatedagreementprice | 7,550.44 | 0.12% | 130,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| AnsteelGroupMiningGongchanglingCo.,Ltd. | BothbelongtoAnsteelGroup | Purchasinggoods/providingservices | Purchasingmainrawmaterials | Onagreement | Relatedagreementprice | 46,171.1 | 0.74% | 160,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| Relatedparties | Relationship | Typeofrelatedpartytransactions | Contentofrelatedpartytransactions | Pricingprincipleofrelatedpartytransactions | Priceofrelatedpartytransactions | Amountofrelatedpartytransactionss(RMB10,000) | Proportionofsimilartransactions | Theapprovedtradinglimitoftransactions(RMB10,000) | Whetherexceedtheapprovedlimit(Y/N) | Meansofpaymentofrelatedpartytransactions | Availablemarketpriceofsimilartransactions | Dateofdisclosure | Indexofdisclosure |
| AnsteelGroupInternationalEconomicandTradeCo.,Ltd. | BothbelongtoAnsteelGroup | Purchasinggoods/providingservices | Purchasingmainrawmaterials | Onagreement | Relatedagreementprice | 5,829.2 | 0.09% | 120,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| AnsteelScrapResources(Anshan)Co.,Ltd. | BothbelongtoAnsteelGroup | Purchasinggoods/providingservices | Purchasingmainrawmaterials | Onagreement | Relatedagreementprice | 50,126.48 | 0.81% | 70,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| PangangGroupVanadium&TitaniumResourcesCo.,Ltd. | BothbelongtoAnsteelGroup | Purchasinggoods/providingservices | Purchasingmainrawmaterials | Onagreement | Relatedagreementprice | 0 | 0.00% | 2,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Purchasingsupplementarymaterials | Onagreement | Relatedagreementprice | 23,759.86 | 0.38% | 2,000 | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| LiaoningHengtongMetallurgicalEquipmentManufactureCo.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Purchasingsupplementarymaterials | Onagreement | Relatedagreementprice | 13,568.94 | 0.22% | 25,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BengangElectricCo.,Ltd. | Associatesoftheparentcompany | Purchasinggoods/providingservices | Purchasingsupplementarymaterials | Onagreement | Relatedagreementprice | 12,121.98 | 0.19% | 20,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Purchasingsupplementarymaterials | Onagreement | Relatedagreementprice | 15,433.29 | 0.25% | 10,000 | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| Relatedparties | Relationship | Typeofrelatedpartytransactions | Contentofrelatedpartytransactions | Pricingprincipleofrelatedpartytransactions | Priceofrelatedpartytransactions | Amountofrelatedpartytransactionss(RMB10,000) | Proportionofsimilartransactions | Theapprovedtradinglimitoftransactions(RMB10,000) | Whetherexceedtheapprovedlimit(Y/N) | Meansofpaymentofrelatedpartytransactions | Availablemarketpriceofsimilartransactions | Dateofdisclosure | Indexofdisclosure |
| LiaoningHengyiSteelTradingCo.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Purchasingsupplementarymaterials | Onagreement | Relatedagreementprice | 41,058.53 | 0.66% | 0 | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| AnsteelMiningMachineryManufacturingCo.,Ltd. | BothbelongtoAnsteelGroup | Purchasinggoods/providingservices | Purchasingsupplementarymaterials | Onagreement | Relatedagreementprice | 0 | 0.00% | 3,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| AngangSteelRopeCo.,Ltd. | BothbelongtoAnsteelGroup | Purchasinggoods/providingservices | Purchasingsupplementarymaterials | Onagreement | Relatedagreementprice | 0 | 0.00% | 1,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| OthersubsidiariesofAnsteelGroup | BothbelongtoAnsteelGroup | Purchasinggoods/providingservices | Purchasingsupplementarymaterials | Onagreement | Relatedagreementprice | 15,654.65 | 0.25% | 2,000 | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Purchasingenergy&power | Onagreement | Relatedagreementprice | 77,911.05 | 1.25% | 60,000 | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiSteel&Iron(Group)ConstructionCo.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 77,578.83 | 1.25% | 52,000 | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 10,342.45 | 0.17% | 10,000 | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiIronandSteel(Group)MachineryEngineering | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 13,307.82 | 0.21% | 20,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| Relatedparties | Relationship | Typeofrelatedpartytransactions | Contentofrelatedpartytransactions | Pricingprincipleofrelatedpartytransactions | Priceofrelatedpartytransactions | Amountofrelatedpartytransactionss(RMB10,000) | Proportionofsimilartransactions | Theapprovedtradinglimitoftransactions(RMB10,000) | Whetherexceedtheapprovedlimit(Y/N) | Meansofpaymentofrelatedpartytransactions | Availablemarketpriceofsimilartransactions | Dateofdisclosure | Indexofdisclosure |
| Co.,Ltd. | |||||||||||||
| BenxiIronandSteel(Group)MiningCo.,Ltd. | Sameparentcompany | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 3,311.18 | 0.05% | 5,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiIronandSteel(Group)InternationalEconomicandTradeCo.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 90,447.11 | 1.45% | 50,000 | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiIronandSteel(Group)InformationAutomationCo.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 10,458.42 | 0.17% | 13,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| AnsteelSteelProcessingandDistribution(Changchun)Co.,Ltd. | BothbelongtoAnsteelGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 10.11 | 0.00% | 1,300 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| AnsteelGroupEngineeringTechnologyDevelopmentCo.,Ltd. | BothbelongtoAnsteelGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 6,337.58 | 0.10% | 201,500 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| AnsteelConstructionGroupCo.,Ltd. | BothbelongtoAnsteelGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 3,684.09 | 0.06% | 3,000 | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BengangGroupCo.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 380.48 | 0.01% | 10,000 | No | Executeaccordingtothe | Yes | March26th,2022 | 2022-017 |
| Relatedparties | Relationship | Typeofrelatedpartytransactions | Contentofrelatedpartytransactions | Pricingprincipleofrelatedpartytransactions | Priceofrelatedpartytransactions | Amountofrelatedpartytransactionss(RMB10,000) | Proportionofsimilartransactions | Theapprovedtradinglimitoftransactions(RMB10,000) | Whetherexceedtheapprovedlimit(Y/N) | Meansofpaymentofrelatedpartytransactions | Availablemarketpriceofsimilartransactions | Dateofdisclosure | Indexofdisclosure |
| agreement | |||||||||||||
| BenxiSteel&Iron(Group)Co.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 29,280.12 | 0.47% | 35,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 4,870.21 | 0.08% | 4,100 | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| LiaoningMetallurgicalTechnicianCollege | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 1,468.99 | 0.02% | 2,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| NorthernHengdaLogisticsCo.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 2,553.01 | 0.04% | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 | |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,Ltd. | BothbelongtoBengangGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 6,395.63 | 0.10% | 10,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| AnsteelGroupAutomationCo.,Ltd. | BothbelongtoAnsteelGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 7,287.3 | 0.12% | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 | |
| OthersubsidiariesofAnsteelGroup | BothbelongtoAnsteelGroup | Purchasinggoods/providingservices | Receivingsupportingservices | Onagreement | Relatedagreementprice | 6,802.95 | 0.11% | 1,570 | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| AnsteelLianzhong | BothbelongtoAnsteel | Purchasinggoods/providing | Purchasingsteelproducts | Onagreement | Relatedagreement | 0 | 0.00% | 16,000 | No | Executeaccordingto | Yes | March26th,2022 | 2022-017 |
| Relatedparties | Relationship | Typeofrelatedpartytransactions | Contentofrelatedpartytransactions | Pricingprincipleofrelatedpartytransactions | Priceofrelatedpartytransactions | Amountofrelatedpartytransactionss(RMB10,000) | Proportionofsimilartransactions | Theapprovedtradinglimitoftransactions(RMB10,000) | Whetherexceedtheapprovedlimit(Y/N) | Meansofpaymentofrelatedpartytransactions | Availablemarketpriceofsimilartransactions | Dateofdisclosure | Indexofdisclosure |
| (Guangzhou)StainlessSteelCo.,Ltd. | Group | services | price | theagreement | |||||||||
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | BothbelongtoBengangGroup | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 96,772.69 | 1.55% | 420,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| AnshanIronandSteelCo.,Ltd. | BothbelongtoAnsteelGroup | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 16,864.38 | 0.27% | 210,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiIronandSteel(Group)MiningCo.,Ltd. | Sameparentcompany | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 114,274.98 | 1.82% | 190,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| SuzhouLongbenMetalMaterialsCo.,Ltd. | Jointstockcompany | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 195.2 | 0.00% | 50,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiIronandSteel(Group)MetallurgicalSlagCo.,Ltd. | Sameparentcompany | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 17,875.85 | 0.29% | 50,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| AnsteelGroupInternationalEconomicandTradeCo.,Ltd. | BothbelongtoAnsteelGroup | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 0 | 0.00% | 30,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| PanzhongYihongMetalProducts(Chongqing)Co.,Ltd. | BothbelongtoAnsteelGroup | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 676.43 | 0.01% | 20,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| Relatedparties | Relationship | Typeofrelatedpartytransactions | Contentofrelatedpartytransactions | Pricingprincipleofrelatedpartytransactions | Priceofrelatedpartytransactions | Amountofrelatedpartytransactionss(RMB10,000) | Proportionofsimilartransactions | Theapprovedtradinglimitoftransactions(RMB10,000) | Whetherexceedtheapprovedlimit(Y/N) | Meansofpaymentofrelatedpartytransactions | Availablemarketpriceofsimilartransactions | Dateofdisclosure | Indexofdisclosure |
| ChangchunFAWAnsteelSteelProcessingandDistributionCo.,Ltd. | BothbelongtoAnsteelGroup | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 976.82 | 0.02% | 11,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiIronandSteel(Group)ThermalDevelopmentCo.,Ltd. | Sameparentcompany | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 6,111.08 | 0.10% | 10,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,Ltd. | Sameparentcompany | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 4,339.83 | 0.07% | 10,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| AnsteelChemicalTechnologyCo.,Ltd. | BothbelongtoAnsteelGroup | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 14,293.74 | 0.23% | 177,822 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiSteel&Iron(Group)ConstructionCo.,Ltd. | Sameparentcompany | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 6,824.78 | 0.11% | 8,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| LiaoningHengtongMetallurgicalEquipmentManufactureCo.,Ltd. | BothbelongtoBengangGroup | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 3,534.73 | 0.06% | 5,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiIronandSteel(Group) | Sameparent | Sellinggoods/providing | Sellinggoods | Onagreement | Relatedagreement | 4,015.97 | 0.06% | 5,000 | No | Executeaccordingto | Yes | March26th,2022 | 2022-017 |
| Relatedparties | Relationship | Typeofrelatedpartytransactions | Contentofrelatedpartytransactions | Pricingprincipleofrelatedpartytransactions | Priceofrelatedpartytransactions | Amountofrelatedpartytransactionss(RMB10,000) | Proportionofsimilartransactions | Theapprovedtradinglimitoftransactions(RMB10,000) | Whetherexceedtheapprovedlimit(Y/N) | Meansofpaymentofrelatedpartytransactions | Availablemarketpriceofsimilartransactions | Dateofdisclosure | Indexofdisclosure |
| IndustrialDevelopmentCo.,td. | company | services | price | theagreement | |||||||||
| DalianBorollerSteelPipeCo.,Ltd. | Sameparentcompany | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 1,713.88 | 0.03% | 2,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BenxiSteel&Iron(Group)Co.,Ltd. | Parentcompany | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 1,528.38 | 0.02% | 1,000 | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| DelinLandPortSupplyChainServiceCo.,Ltd. | BothbelongtoAnsteelGroup | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 6,853.43 | 0.11% | 253,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| NorthernHengdaLogisticsCo.,Ltd. | BothbelongtoBengangGroup | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 157,552.24 | 2.52% | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 | |
| ZhejiangJingruiSteelProcessingCo.,Ltd. | Jointstockcompany | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 63,487.86 | 1.01% | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 | |
| AnsteelGreenResourcesTechnologyCo.,Ltd. | BothbelongtoAnsteelGroup | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 9,258.71 | 0.15% | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 | |
| WuhanYuanhongTradingCo.,Ltd. | Jointstockcompany | Sellinggoods/providingservices | Sellinggoods | Onagreement | Relatedagreementprice | 5,185.43 | 0.08% | Yes | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 | |
| Other | Bothbelong | Selling | Sellinggoods | On | Related | 406.56 | 0.01% | 2,355 | No | Execute | Yes | March | 2022-017 |
| Relatedparties | Relationship | Typeofrelatedpartytransactions | Contentofrelatedpartytransactions | Pricingprincipleofrelatedpartytransactions | Priceofrelatedpartytransactions | Amountofrelatedpartytransactionss(RMB10,000) | Proportionofsimilartransactions | Theapprovedtradinglimitoftransactions(RMB10,000) | Whetherexceedtheapprovedlimit(Y/N) | Meansofpaymentofrelatedpartytransactions | Availablemarketpriceofsimilartransactions | Dateofdisclosure | Indexofdisclosure |
| subsidiariesofAnsteelGroup | toAnsteelGroup | goods/providingservices | agreement | agreementprice | accordingtotheagreement | 26th,2022 | |||||||
| BenxiIronandSteel(Group)MiningCo.,Ltd. | Sameparentcompany | Sellinggoods/providingservices | Providingsupportingservices | Onagreement | Relatedagreementprice | 637.57 | 0.01% | 1,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| BengangGroupCo.,Ltd. | ControllingShareholderofparentcompany | Sellinggoods/providingservices | Providingsupportingservices | Onagreement | Relatedagreementprice | 0 | 0.00% | 17,000 | No | Executeaccordingtotheagreement | Yes | March26th,2022 | 2022-017 |
| Total | -- | -- | 3,240,949.17 | -- | 5,416,647 | -- | -- | -- | -- | -- | |||
| Detailsofanysalesreturnofalargeamount | N/A | ||||||||||||
| Illustrationoftheactualsituationduringthereportingperiodwhereaforecasthadbeenmadebytypeforthetotalamountsofroutinerelatedtransactionswhichwouldoccurduringthereportingperiod(ifany) | N/A | ||||||||||||
| Reasonforanysignificantdifferencebetweenthetransactionpriceandthemarketpriceforreference(ifapplicable) | N/A | ||||||||||||
2.Relatedtransactionsrelevanttoassetacquisitionorsold
□Applicable?NotapplicableTherewasnorelatedtransactionrelevanttoassetacquisitionorsaleduringthereportingperiod.
3.Relatedtransactionsrelevanttojointinvestments
□Applicable?NotapplicableTherewasnorelatedtransactionrelevanttojointinvestmentsduringthereportingperiod.
4.Creditsandliabilitieswithrelatedparties
□Applicable?NotapplicableTherewerenocreditsandliabilitieswithrelatedparties.
5.Transactionswithrelatedfinancialcompanies?Applicable□NotapplicableDepositbusiness
| Relatedparty | Relationship | Maximumdailydepositlimit(RMB10,000) | depositraterange | Beginningbalance(RMB10,000) | Amountforthisperiod | Closingbalance(RMB10,000) | |
| Totaldepositamountforthecurrentperiod(RMB10,000) | Totalamountwithdrawninthecurrentperiod(RMB10,000) | ||||||
| AnsteelGroupFinanceCo.,Ltd. | BothbelongtoAnsteelGroup | 450,000 | 1.9% | 442,965.63 | 16,081,552.08 | 16,417,025.86 | 107,491.85 |
| BengangGroupFinanceCo.,Ltd. | BothbelongtoBengangGroup | 1,100,000 | 3.0%-3.5% | 0 | 269.72 | 269.72 | 0 |
Loanbusiness
| Relatedparty | Relationship | Loanamount(RMB10,000) | Loaninterestraterange | Beginningbalance(RMB10,000) | Amountforthisperiod | Closingbalance(RMB10,000) |
Totalloanamountforthecurrentperiod(RMB10,000)
| Totalloanamountforthecurrentperiod(RMB10,000) | Totalrepaymentamountforthecurrentperiod(RMB10,000) |
Creditorotherfinancialbusiness
| Relatedparty | Relationship | Businesstype | Total(RMB10,000) | Actualamount(RMB10,000) |
6.TransactionsbetweenfinancialcompaniescontrolledbytheCompanyandrelatedparties
□Applicable?NotapplicableTherewerenodepositbusiness,loanbusiness,creditorotherfinancialbusinessbetweenfinancialcompaniescontrolledbytheCompanyandrelatedparties.
7.Othersignificantrelatedtransactions
□Applicable?NotapplicableDuringthereportingperiod,theCompanyhadnoothersignificantrelatedtransactions.XV.Majorcontractsandtheirperformance
1.Trusteeship,contractingandlease
(1)Trusteeship
□Applicable?NotapplicableTherewasnotrusteeshipduringthereportingperiod.
(2)Contracting
□Applicable?NotapplicableTherewasnocontractingduringthereportingperiod.
(3)Lease?Applicable□NotapplicableDescriptionoflease?Companyasthelessor
| Lessee | Leasecapitalcategory | Leaseincomeofthisyear | Leaseincomeoflastyear |
| AnsteelTenderingCo.,Ltd. | Plantsandancillaryfacilities | 255,045.87 | |
| BengangTenderingCo.,Ltd. | Plantsandancillaryfacilities | 250,917.43 | 480,000.00 |
?Companyasthelessee
| Lessor | Leasecapitalcategory | Rentalexpenseforshort-termleasesandleasesoflow-valueassets | Rentpaid | Assumedinterestexpenseonleaseliability | |||
| Amountforthisyear | Amountforlastyear | Amountforthisyear | Amountforlastyear | Amountforthisyear | Amountforlastyear | ||
| BenxiSteel&Iron(Group)Co.,Ltd. | Landuseright7,669,068.17m2.Landuseright42,920.00m2. | 55,251,233.39 | 55,251,233.39 | 38,983,993.51 | 39,600,209.28 | ||
| BenxiSteel&Iron(Group)Co.,Ltd. | 2300Hotrollingproductline,relatedrealestate | 16,098,161.06 | 16,098,161.06 | 7,657,901.26 | 7,982,648.96 | ||
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | 1780Hotrollingproductline,relatedrealestate | 12,397,899.09 | 12,397,899.09 | 5,897,685.23 | 6,147,787.68 | ||
| BengangGroupCo., | Landuseright728,282.30m2 | 9,945,423.08 | 9,945,423.08 | 2,375,669.84 | 2,666,923.92 | ||
| Lessor | Leasecapitalcategory | Rentalexpenseforshort-termleasesandleasesoflow-valueassets | Rentpaid | Assumedinterestexpenseonleaseliability | |||
| Amountforthisyear | Amountforlastyear | Amountforthisyear | Amountforlastyear | Amountforthisyear | Amountforlastyear | ||
| Ltd. | |||||||
| NorthernHengdaLogisticsCo.,Ltd. | Realestateofofficeareas | 120,596.33 | |||||
Notes:1.AccordingtotheLandUseRightLeaseContractandsubsequentsupplementaryagreementssignedbetweentheCompanyandBengangGrouponApril7
th
,1997andDecember30
th,2005,theCompanyleasedlandfromBengangGroup,withamonthlyrentofRMB0.594/m
.Theleasedlandis7,669,068.17m
andtheannualrentisRMB54.6651million.
2.OnAugust14
th,2019,theCompanysignedtheHouseLeaseAgreementwithBengangGroupandBeiyingIron&SteelCo.,Ltd.,andleasedthehousesandauxiliaryfacilitiesoccupiedbythe2300hotrollingmillproductionlineandthe1780hotrollingmillproductionline.TheleasetermofthehousesandancillaryfacilitiesisDecember31
st
,2038.
3.OnJuly15
th,2019,theCompanysignedLandLeaseAgreementwithBengangGroup,leasedandusedatotalof8piecesoflandfromBengangGroup,withleasedareasof42,920.00m
and728,282.30m
.Theleasetermis20years,andtherentalpriceisRMB1.138/m
permonth.ProjectsthatbringprofitsandlossestotheCompanyreachingmorethan10%oftheCompany'stotalprofitduringthereportingperiod
□Applicable?NotapplicableDuringthereportingperiodoftheCompany,therewasnoleasingprojectthatbroughttheCompany'sprofitandlosstomorethan10%oftheCompany'stotalprofitduringthereportingperiod.
2.Guarantee
□Applicable?NotapplicableTherewasnoguaranteeduringthereportingperiod.
3.Entrustingothersformanagingcashassets
(1)Entrustedfinance
□Applicable?NotapplicableTherewasnoentrustedfinanceduringthereportingperiod.
(2)Entrustedloans
□Applicable?NotapplicableTherewerenoentrustedloansduringthereportingperiod.
4.Othermajorcontracts
□Applicable?Notapplicable
Therewerenoothermajorcontractsduringthereportingperiod.
XVI.Descriptionofothermajorevents?Applicable□NotapplicableOnMarch21
st,2023,theCompanyissuedtheIndicativeAnnouncementofBengangSteelPlatesCo.,Ltd.onthePlanningofSignificantAssetReplacementandRelatedPartyTransactions.InordertoenhancetheoperatingefficiencyandprofitabilityoftheCompanyandacceleratethepacetobeaworld-classminingdevelopmententerprise,itintendstoconductanassetreplacementwithitscontrollingshareholder,BenxiSteel&Iron(Group)Co.,Ltd.(hereinafterreferredtoas"BenxiSteel&Iron"),specifically,theassetstobereceivedbeingmining-relatedassetsunderBenxiSteel&Iron,tobesurrenderedbeingtheassetsandliabilitiesrelatedtoalltheCompany'sironandsteelbusinesses,andthedifferencebetweenreceivedandsurrendermadeupincashbyonepartytotheother.Atpresent,thetransactionisstillintheplanningstage,whichmeansspecificinformationsuchasthescopeandpricingoftheunderlyingassetshaveyettobefinalizedandnoagreementhasbeensignedbythetwosides.Thetransactionproposalstillrequiresfurtherdemonstration,communicationandconsultation,andissubjecttonecessarydecision-makingandapprovalproceduresinaccordancewithrelevantlaws,regulationsandtheArticlesofAssociationoftheCompany.Therearestillsignificantuncertaintiesintherelevantmatters.XVII.MajoreventsofsubsidiariesoftheCompany?Applicable□Notapplicable
1.HarbinBengangEconomicandTradingCo.,Ltd.completedthederegistrationprocedureattheBureauofIndustryandCommerceonAugust4
th
,2022,witharegisteredcapitalofRMB30,000,000.
2.NanjingBengangMaterialsSalesCo.,Ltd.completedthederegistrationprocedureattheBureauofIndustryandCommerceonJuly1
st
,2022,witharegisteredcapitalofRMB1,150,000.
3.ChongqingLiaobenSteel&IronTradingCo.,Ltd.completedthederegistrationprocedureattheBureauofIndustryandCommerceonJune16
th
,2022,witharegisteredcapitalofRMB30,000,000.
4.WuxiBengangSteel&IronSalesCo.,Ltd.wasmergedandacquiredbyShanghaiBengangMetallurgyScienceandTechnologyCo.,Ltd.,witharegisteredcapitalofRMB30,000,000,andcompletedthederegistrationprocedureattheBureauofIndustryandCommerceonSeptember15
th,2022.
5.TheCompanylostcontroloverBengangBaojin(Shenyang)AutomobileNewMaterialsTechnologyCo.,Ltd.becauseXiamenXianghongInvestmentCo.,Ltd.RaisedfundsonJuly8
th
,2022,andthusBaojinwasnotincludedintheconsolidation.TheaboveeventsofsubsidiarieswillnotexertsignificantinfluenceontheCompany.
SectionVII.StatusofShareCapitalChangesandShareholders
I.ShareCapitalChanges
1.Sharecapitalchanges
Unit:shares
| Beforethechange | Increase/decrease(+，-) | Afterthechange | |||||||
| Quantity | Percentage | Issuingofnewshare | Bonusshares | Capitalizationofcommonreservefund | Other | Subtotal | Quantity | Percentage | |
| I.Restrictedshares | |||||||||
| 1.Stateshareholdings | |||||||||
| 2.State-ownLegalpersonshareholding | |||||||||
| 3.Otherdomesticshareholdings | |||||||||
| Including:Domesticlegalpersonholding | |||||||||
| Domesticnaturalpersonholding | |||||||||
| 3.Foreignshareholding | |||||||||
| Including:Foreignlegalpersonholding | |||||||||
| Foreignnaturalpersonholding | |||||||||
| II.Un-restrictedshares | 4,108,191,379 | 100.00% | 20,838 | 20,838 | 4,108,212,217 | 100.00% | |||
| 1.CommonsharesinRMB | 3,708,191,379 | 90.26% | 20,838 | 20,838 | 3,708,212,217 | 90.26% | |||
| 2.Foreignsharesindomesticmarket | 400,000,000 | 9.74% | 400,000,000 | 9.74% | |||||
| 3.Foreignsharesinforeignmarket | |||||||||
| Other | |||||||||
| III.Totalshares | 4,108,191,379 | 100.00% | 20,838 | 20,838 | 4,108,212,217 | 100.00% | |||
Causationofsharecapitalchanges?Applicable□NotapplicableDuringthereportingperiod,925convertiblecorporatebondsissuedbytheCompanywereconvertedintoshares,andthetotalsharecapitaloftheCompanyincreasedby20,838shares.Statusofapprovalofsharecapitalchanges
□Applicable?NotapplicableStatusoftheregistrationprocessoftransferredshares
□Applicable?NotapplicableInfluencesofsharecapitalchangesonfinancialindicessuchasbasicearningspershare,dilutedearningspershare,andnetassetpershareattributedtocommonshareholdersinthemostrecentyearandthemostrecentperiod
□Applicable?NotapplicableOtherinformationthattheCompanydeemsnecessarytobedisclosedorrequiredbytheauthority
□Applicable?Notapplicable
2.Changesofrestrictedshares
□Applicable?Notapplicable
II.Securitiesissuanceandlisting
1.Statusofsecurityissuance(excludingpreferredshares)duringthereportingperiod
□Applicable?Notapplicable
2.Statusoftotalsharesandshareholderchangeandassetsandliabilitystructurechange
□Applicable?Notapplicable
3.Statusofexistinginternalemployeeshares
□Applicable?Notapplicable
III.Shareholdersandactualcontrollers
1.NumberofshareholdersandtheirshareholdingoftheCompany
Unit:shares
| Totalnumberofcommonshareholdersattheendofthereportingperiod | 65,350 | Totalshareholdersattheendofthepreviousmonthfromthedateofdisclosingtheannualreport | 65,573 | Thetotalnumberofpreferredshareholdersvotingrightsrestoredattheendofthereportingperiod(ifany)(refertoNotes8) | 0 | Totalpreferredshareholdersattheendofthepreviousmonthfromthedateofdisclosingtheannualreport(refertoNotes8) | 0 | |
| Shareholdingofshareholdersholdingmorethan5%ortop10shareholders | ||||||||
| Nameoftheshareholder | Natureoftheshareholder | Shareholdingpercentage(%) | Numberofsharesheldattheendofthereportingperiod | Changesduringthereportingperiod | Restrictedsharesheld | Un-restrictedsharesheld | Numberofpledged,markedorfrozenshares | |
| Status | Number | |||||||
| BenxiSteel&Iron(Group)Co.,Ltd. | State-ownedlegalperson | 58.65% | 2,409,628,094 | 2,409,628,094 | Pledged | 110,000,000 | ||
| BenxiSteel&Iron(Group)Co.,Ltd. | State-ownedlegalperson | 58.65% | 2,409,628,094 | 2,409,628,094 | Frozen | 102,100,000 | ||
| AnsteelGroupCo.,Ltd. | State-ownedlegalperson | 17.95% | 737,371,532 | 737,371,532 | ||||
| HuataiYouyiNo.5MixedPensionProduct-BankofChinaCo.,Ltd | Other | 0.68% | 27,800,000 | 27,800,000 | ||||
| ZhangWenyou | Domesticnaturalperson | 0.47% | 19,149,967 | 19,149,967 | ||||
| GuanHui | Domesticnaturalperson | 0.42% | 17,400,000 | 17,400,000 | 17,400,000 | |||
| HongKongSecuritiesClearingCo.,Ltd. | Foreignlegalperson | 0.27% | 11,271,134 | -20,758,667 | 11,271,134 | |||
| ZhouWei | Domesticnaturalperson | 0.21% | 8,831,800 | 1,198,869 | 8,831,800 | |||
| LiChunhou | Domesticnaturalperson | 0.18% | 7,550,000 | 7,550,000 | 7,550,000 | |||
| ChinaInternationalCapitalCorporationHongKongSecuritiesLtd. | Foreignlegalperson | 0.15% | 6,012,372 | -987,600 | 6,012,372 | |||
| ShanghaiPudongDevelopmentBankCo.,Ltd.-JianxinZhongshengIndex1000EnhancedLaunchSecuritiesInvestmentFund | Other | 0.11% | 4,455,500 | 4,455,500 | 4,455,500 | |||
| Strategyinvestorsorgenerallegalpersonsbecometop10shareholdersduetosharesnewlyissued(ifany)(SeeNotes3) | None | |||||||
| Illustrationofrelationshipor“actioninconcert”amongtop10shareholders | BenxiIronandSteel(Group)Co.,Ltd.hasanassociatedrelationshipwithBengangGroupCo.,Ltd.,andisapersonactinginconcertasstipulatedintheAdministrativeMeasuresfortheAcquisitionofListedCompanies.TheCompanyisnotawareofwhetherthereisanassociatedrelationshipbetweenothershareholdersorwhethertheyarepersonsactinginconcertasstipulatedintheAdministrativeMeasuresfortheAcquisitionofListedCompanies. | |||||||
| Illustrationoftheaboveshareholdersinvolvingentrusting/entrustedvotingrightsandabstentionfromvotingrights | Illustrationoftheaboveshareholdersdonotinvolveentrusting/entrustedvotingrightsorabstentionfromvotingrights | |||||||
| Specialremarksforthebuy-backaccountsoftop10shareholders(ifany)(SeeNotes10) | N/A | |||||||
| Shareholdingoftop10unrestrictedshareholders | ||||||||
| Nameoftheshareholder | Un-restrictedsharesheldattheendofthereportingperiod | Categoryofshares | ||||||
| Categoryofshares | Quantity | |||||||
| BenxiSteel&Iron(Group)Co.,Ltd. | 2,409,628,094 | CommonsharesinRMB | 2,409,628,094 | |||||
| AnsteelGroupCo.,Ltd. | 737,371,532 | CommonsharesinRMB | 737,371,532 | |||||
| HuataiYouyiNo.5MixedPensionProduct-BankofChinaCo.,Ltd | 27,800,000 | CommonsharesinRMB | 27,800,000 | |||||
| ZhangWenyou | 19,149,967 | CommonsharesinRMB | 19,149,967 | |||||
| GuanHui | 17,400,000 | Commonsharesin | 17,400,000 | |||||
| RMB | |||
| HongKongSecuritiesClearingCo.,Ltd. | 11,271,134 | CommonsharesinRMB | 11,271,134 |
| ZhouWei | 8,831,800 | CommonsharesinRMB | 8,831,800 |
| LiChunhou | 7,550,000 | CommonsharesinRMB | 7,550,000 |
| ChinaInternationalCapitalCorporationHongKongSecuritiesLtd. | 6,012,372 | Domesticlistedforeignshares | 6,012,372 |
| ShanghaiPudongDevelopmentBankCo.,Ltd.-JianxinZhongshengIndex1000EnhancedLaunchSecuritiesInvestmentFund | 4,455,500 | CommonsharesinRMB | 4,455,500 |
| Illustrationofrelationshipor“actioninconcert”amongtop10un-restrictedshareholders,andbetweentop10un-restrictedshareholdersandtop10shareholders | BenxiIronandSteel(Group)Co.,Ltd.hasanassociatedrelationshipwithBengangGroupCo.,Ltd.,andisapersonactinginconcertasstipulatedintheAdministrativeMeasuresfortheAcquisitionofListedCompanies.TheCompanyisnotawareofwhetherthereisanassociatedrelationshipbetweenothershareholdersorwhethertheyarepersonsactinginconcertasstipulatedintheAdministrativeMeasuresfortheAcquisitionofListedCompanies. | ||
| Illustrationoftop10shareholdersparticipatinginsecuritiesmargintrading(ifany)(seeNotes4) | ZhangWenyouholds19,149,967sharesthroughaninvestorcreditsecuritiesaccount.GuanHuiholds17,400,000sharesthroughaninvestorcreditsecuritiesaccount.ZhouWeiholds8,831,800sharesthroughaninvestorcreditsecuritiesaccount.LiChunhouholds7,550,000sharesthroughaninvestorcreditsecuritiesaccount. | ||
Whetherthetop10commonshareholdersandtop10un-restrictedcommonshareholdershavebuy-backagreementdealingduringthereportingperiod
□Yes?NoThetop10commonshareholdersandtop10un-restrictedcommonshareholdershavenobuy-backagreementdealingduringthereportingperiod.
2.ControllingshareholderNatureofcontrollingshareholders:centralstate-ownedholdingsTypeofcontrollingshareholders:legalperson
| Nameofthecontrollingshareholder | Legalrepresentative/personincharge | Dateofincorporation | Organizationcode | Principalbusinessactivities |
| BenxiSteel&Iron(Group)Co.,Ltd. | ZhaiHongwei | July10th,1996 | 91210500119726263U | Steelsmelting,mineexploitation,platesrolling,pipemanufacturing,powergeneration,specialsteelmaterialmanufacturing,heating,supplyofthewater,electricity,windandgas,metalprocessing,electromechanicsrepairmentandmanufacturing,equipmentmanufacturing,architectureinstallation,railway,highwaytransportation,importandexporttrade,traveling,hotel,cateringandentertainingservices,printing,newspaperandperiodicaldistribution,building |
| Nameofthecontrollingshareholder | Legalrepresentative/personincharge | Dateofincorporation | Organizationcode | Principalbusinessactivities |
| materials,refractorymaterials,metersandinstruments,materialsupplyandmarketing,realestatedevelopment,scientificresearch,designandinformationservices,propertymanagement,communications,purchase,processingandsalesofscrapsteel,housing,civilairdefenseprojectleasing,steeladjustment,wasteoilpurchase(theaboveprojectsarelimitedtosubsidiaries),assetsmanagement,BengangDailypublishing;designandproductionofprintadvertisements,useBengangDailytopublishdomesticandforeignadvertisements,designandproduceTVstationadvertisements. | ||||
| Equityofthecontrollingshareholderinotherdomestic/foreignlistedcompaniesunderitscontrolorparticipationduringthereportingperiod | None | |||
Changesofthecontrollingshareholderduringthereportingperiod
□Applicable?NotapplicableThecontrollingshareholderoftheCompanydidnotchangeduringthereportingperiod.
3.ActualcontrollerandconcertedactionpersonActualcontrollernature:CentralState-ownedAssetsManagementAgencyActualcontrollertype:Legalperson
| Nameofthecontrollingshareholder | Legalrepresentative/personincharge | Dateofincorporation | Organizationcode | Principalbusinessactivities |
| AnsteelGroupCo.,Ltd. | TanChengxu | July28th,2010 | 91210000558190456G | Steel,iron,vanadium,titanium,stainlesssteel,specialsteelproductionandmanufacturing,nonferrousmetalproductionandmanufacturing,steelrollingprocessing,iron,vanadium,titaniumandothernon-ferrousmetal,nonmetallicminingandcomprehensiveutilization,miningauxiliaryindustry,cleanenergypowergeneration,salesofcoalandproducts,chemicalproductsandgases(excludinghazardouschemicals),productionandsalesofrefractorymaterials,industrialandminingengineering,metallurgicalengineeringconstruction,engineeringandtechnicalservices,equipment |
| Nameofthecontrollingshareholder | Legalrepresentative/personincharge | Dateofincorporation | Organizationcode | Principalbusinessactivities |
| manufacturing,InternetofThingsinformationservices,energyconservation,technicalservicesofenvironmentalprotection,R&Dofnewmaterials,developmentofrenewableresources,mechanicalprocessing,technologydevelopment,transferandservices,transportationservices,realestatedevelopment,urbanenergysupply,softwareandinformationtechnologyservices,intelligentmanufacturingandservices,domesticandforeigntrade,financialmanagement,biddingandtenderingservices,medicalandhealthcareservices,vocationalskillstraining,economicinformationconsultingservices,enterprisemanagement,hotelandcateringservices,operatingofotherstate-ownedassetsandinvestmentswithinthescopeauthorizedbytheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil;operationsofbranchesinclude:newspaperdistribution,publicationprinting,packagingdecorationandotherprintprinting.(Forprojectssubjecttoapprovalaccordingtolaws,businessactivitiescanonlybecarriedoutafterapprovalbyrelevantdepartments.) | ||||
| Equityofthecontrollingshareholderinotherdomestic/foreignlistedcompaniesunderitscontrolduringthereportingperiod | Duringthereportingperiod,AnsteelGroupCo.,Ltd.indirectlyheld53.35%ofthesharesofAnsteelandindirectlyheld52.62%ofthesharesofPansteelVanadiumandTitanium. | |||
Changeoftheactualcontrollerduringthereportingperiod
□Applicable?NotapplicableThereisnochangeoftheCompany’sactualcontrollerduringthereportingperiod.BlockdiagramoftheownershipandcontrolrelationsbetweentheCompanyandtheactualcontroller
WhethertheactualcontrolleriscontrollingtheCompanythroughtrusteeshiporotherassetmanagementservice
□Applicable?Notapplicable
4.Controllingshareholderorthelargestshareholderanditsconcertedactionperson'scumulative
pledgedsharesaccountingfor80%oftheCompany'ssharesheldbythem
□Applicable?Notapplicable
5.Shareholdersholdingmorethan10%oftheshares
□Applicable?Notapplicable
6.Sharereductionlimitationofcontrollingshareholders,actualcontroller,restructuringpartyandother
commitmentsubjects
□Applicable?NotapplicableIV.Implementationofsharerepurchaseduringthereportingperiod
Implementationprogressofsharerepurchase
□Applicable?NotapplicableImplementationprogressofreducingsharerepurchasebycentralizedbidding
□Applicable?Notapplicable
SectionVIII.Preferredshares
□Applicable?NotapplicableTherewerenopreferredsharesintheCompanyduringthereportingperiod.
SectionIX.Bonds
?Applicable□NotapplicableI.Corporatebonds
□Applicable?NotapplicableTherewerenocorporatebondsintheCompanyduringthereportingperiod.II.Companybonds
□Applicable?NotapplicableTherewerenocompanybondsintheCompanyduringthereportingperiodIII.Non-financialcorporatedebtfinancinginstruments
□Applicable?NotapplicableTherewerenonon-financialcorporatedebtfinancinginstrumentsintheCompanyduringthereportingperiod.IV.Companybonds
?Applicable□Notapplicable
1.Previousadjustmentofconversionprice
(1)TheinitialconversionpriceofBengangConvertibleBondswasRMB5.03pershare.
(2)DuetotheCompany'simplementationofthe2020annualequitydistributionplan,theconversionpriceofBengangConvertibleBondswasadjustedtoRMB5.02pershareonJuly19
th
,2021.
(3)DuetotheCompany'simplementationofthe2021mid-termequitydistributionplan,theconversionpriceofBengangConvertibleBondswasadjustedtoRMB4.55pershareonOctober13
th
,2021.
(4)DuetotheCompany'simplementationofthe2021annualequitydistributionplan,theconversionpriceofBengangConvertibleBondswasadjustedtoRMB3.95pershareonOctober13
th,2021.
2.Cumulativeshareconversion?Applicable□Notapplicable
| Convertiblebondabbreviation | Conversionbeginningandendingdate | Totalamountissued(bonds) | Totalamountissued(RMB) | Cumulativeamountofsharesconverted(RMB) | Cumulativenumberofsharesconverted(shares) | Proportionofthenumberofconvertedsharestothetotalissuedsharesbeforeconversion | Amountnotyetconverted(RMB) | Proportionofunconvertedamounttototalissuedamount |
| BengangConvertibleBonds | FromJanuary4th,2021toJune28th,2026 | 68,000,000 | 6,800,000,000.00 | 1,168,947,900.00 | 232,840,685 | 6.01% | 5,631,052,100.00 | 82.81% |
3.Toptenholdersofconvertiblebonds
Unit:shares
| No. | Convertiblebondholders | Natureofconvertiblebondholders | Numberofconvertiblebondsheldattheendofthereportingperiod(bonds) | Amountofconvertiblebondsheldattheendofthereportingperiod(RMB) | Percentageofconvertiblebondsheldattheendofthereportingperiod |
| 1 | IndustrialBankCo.,Ltd.-TianhongYongliBondSecuritiesInvestmentFund | Other | 2,614,994 | 261,499,400.00 | 4.64% |
| 2 | BankofChina-YifangdaStableProfitIncreaseBondSecuritiesInvestmenFund | Other | 1,804,006 | 180,400,600.00 | 3.20% |
| 3 | ChinaCITICGroupCorporationLimitedEnterpriseAnnuityPlan-ChinaCITICBankCorporationLimited | Other | 1,407,519 | 140,751,900.00 | 2.50% |
| 4 | ChinaAMCYannianYishouNo.9FixedIncomePensionProduct－ChinaMerchantsBankCo.,Ltd. | Other | 1,362,468 | 136,246,800.00 | 2.42% |
| 5 | ChinaConstructionBankCorporationLimited-ZheshangFengliEnhancedBondSecuritiesInvestmentFund | Other | 1,000,000 | 100,000,000.00 | 1.78% |
| 6 | GreatWallGlorySecuritiesCo.,Ltd. | Domesticnon-state-ownedlegalperson | 853,440 | 85,344,000.00 | 1.52% |
| 7 | IndustrialandCommercialBankofChinaLimitedEnterpriseAnnuityPlan-ChinaConstructionBankCorporationLimited | Other | 764,258 | 76,425,800.00 | 1.36% |
| No. | Convertiblebondholders | Natureofconvertiblebondholders | Numberofconvertiblebondsheldattheendofthereportingperiod(bonds) | Amountofconvertiblebondsheldattheendofthereportingperiod(RMB) | Percentageofconvertiblebondsheldattheendofthereportingperiod |
| 8 | DachengFund-PostalSavingsBankofChina-DachengFund-PSBCNo.1IntegratedAssetsManagementPlan | Other | 751,826 | 75,182,600.00 | 1.34% |
| 9 | CITICSecurities-SanyHeavyIndustryCo.,Ltd.-CITICSanyPrivilegedCustomizedNo.1SingleAssetsManagementPlan | Other | 687,877 | 68,787,700.00 | 1.22% |
| 10 | ChinaAMCYannianYishouNo.8FixedIncomePensionProduct-ChinaCITICBankCorporationLimited | Other | 679,931 | 67,993,100.00 | 1.21% |
4.Significantchangesintheguarantor'sprofitability,assetconditionandcreditstanding
□Applicable?Notapplicable
5.Liabilitiesandchangesincreditattheendofthereportingperiodandcasharrangementsanddebt
repaymentinfutureyearsAttheendofthereportingperiod,theCompany'smajoraccountingdataandfinancialindicatorsandtheCompany'screditratingofconvertiblebondsinthepasttwoyearshavenotchangedthisyear.V.Lossintheconsolidationduringthereportingperiodexceeding10%ofthenetassetsat
theendofthepreviousyear
□Applicable?NotapplicableVI.Overdueinterest-bearingdebtsexceptforbondsattheendofthereportingperiod
□Applicable?NotapplicableVII.Violationofrulesandregulationsduringthereportingperiod
□Yes?NoVIII.ThemainaccountingdataandfinancialindicatorsoftheCompanyinthepasttwoyearsat
theendofthereportingperiodUnit:RMB10,000
| Item | Attheendofthisperiod | Attheendoflastperiod | Change |
| Currentratio | 0.81 | 1.14 | -28.95% |
| LiabilitiestoAssetsRatio | 56.08% | 58.17% | -2.09% |
| Quickratio | 0.21 | 0.66 | -68.18% |
| Attheendofthisperiod | Attheendoflastperiod | Change | |
| Netprofitafterdeductingnonrecurringgainsandlosses(RMB) | -139,183.79 | 251,775.87 | -155.28% |
| EBITDAtotalliabilitiesratio | 10.89% | 19.23% | -8.34% |
| Interestcoverageratio | -0.75 | 4.37 | -117.16% |
| Cashinterestcoverageratio | 3.68 | 2.35 | 56.60% |
| EBITDAinterestcoverageratio | 2.39 | 6.12 | -60.95% |
| Loanrepaymentrate | 100.00% | 100.00% | 0.00% |
| Interestrepaymentrate | 100.00% | 100.00% | 0.00% |
SectionX.Financialreport
I.Auditor’sreport
| Opinionofauditreport | Standardunmodifiedopinion |
| Dateofauditreport | March28th,2023 |
| NameofCPAfirm | ShineWingCertifiedPublicAccountantsLLP |
| Auditreportnumber | XYZH/2023BJAA15B0064 |
| NameofCPA | FanJianping,ChenJian |
Auditor’sReportXYZH/2023BJAA15B0064TotheShareholdersofBengangSteelPlatesCo.,Ltd.:
?Auditor’sopinionWehaveauditedthefinancialstatementsofBengangSteelPlatesCo.,Ltd.(hereinafterreferredtoas“BengangSteelPlates”),whichcomprisetheconsolidatedandtheparentcompany’sstatementoffinancialpositionasatDecember31
st
,2022,theconsolidatedandtheparentcompany’sincomestatement,theconsolidatedandtheparentcompany’scashflowstatementandtheconsolidatedandtheparentcompany’sstatementofchangesinshareholders’equityfortheyear2022,andthenotestothefinancialstatements.Inouropinion,theaccompanyingfinancialstatementswerepreparedinaccordancewithAccountingStandardsforBusinessEnterprisesinallmaterialrespects,andpresentedfairlytheconsolidatedandtheparentcompany’sfinancialpositionofBengangSteelPlatesasofDecember31
st,2022,andtheconsolidatedandtheparentcompany’sresultsofoperationsandcashflowsfortheyear2022.
?BasisforOpinion
WeconductedourauditinaccordancewithChinaStandardsonAuditingforChineseCertifiedPublicAccountants.Ourresponsibilitiesunderthosestandardsarefurtherdescribedinthe“Auditor’sResponsibilitiesfortheAuditoftheFinancialStatements”sectionofourreport.WeareindependentofBengangSteelPlatesinaccordancewiththeCodeofEthicsforChineseCertifiedPublicAccountants,andwehavefulfilledourotherethicalresponsibilitiesofthecode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouraudit.
?Keyauditmatters
Keyauditmattersarethosemattersthat,inourprofessionaljudgment,areconsideredtobemostsignificanttotheauditofthefinancialstatementsfortheperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawholeand,informingourauditopinionthereon,andwedonotexpressaseparateopiniononthesematters.
| 1.Cashandcashequivalentsmatters | |
| Keyauditmatters | Responsesintheaudit |
| PleaserefertoNotes1and52of"VI.Notestotheprincipalitemsoftheconsolidatedfinancialstatements”inthenotestothefinancialstatements.AsatDecember31st,2022,thebalanceofcashandcashequivalentsintheConsolidatedStatementofFinancialPositionofBengangSteelPlateswasRMB1,461,145,600,adecreaseofRMB7,369,950,100fromthebalanceatthebeginningoftheyear,andweclassifieditasakeyauditmatterinviewofthehighriskofmisstatementarisingfromthesignificantchangesincashandcashequivalents. | Theauditproceduresweperformedwereasfollows:(1)Understandingandtestingkeyinternalcontrolsrelatedtocashandcashequivalentsandevaluatingwhethertherelevantcontrolsareproperlydesignedandeffectivelyimplemented;(2)Checkingoriginalvouchersforreceiptsanddisbursementsrelatedtocashjournalsandbankdepositjournals;testingbankjournalsforlargeamountsofreceiptsanddisbursements;(3)Checkingbankstatements,obtainingaccountopeninglist,obtaininghistoricaldetailsofbanktransactions,performingtwo-wayverification,andperformingcorrespondenceproceduresforbankaccountsandfundattribution;(4)CheckingtheStatementofBankReconciliationandperformingcut-offtests;(5)Performingauditproceduresonothercashandcashequivalents,examiningrestrictedcashandcashequivalents,andverifyingthereasonsforrestrictedcashandcashequivalents;(6)Checkingwhethertheinformationrelatedtocashandcashequivalentsmattershasbeenproperlypresentedanddisclosedinthefinancialstatements. |
| 2.Bankborrowingmatters | |
| Keyauditmatters | Responsesintheaudit |
| PleaserefertotheaccountingpoliciesdescribedinNote17of"IV.Significantaccountingpoliciesandaccountingestimates"andNotes17,24and26of"VI.Notestotheprincipalitemsoftheconsolidatedfinancialstatements"inthenotestothefinancialstatements.AsatDecember31st,2022,thebalanceoflong-andshort-termborrowingsofBengangSteelPlatesamountedtoRMB4,277,308,200,whichwassignificant,andBengangSteelPlateshadinterestcapitalizationitems,soweclassifieditasakeyauditmatter. | Theauditproceduresweperformedwereasfollows:(1)Understandingandtestingkeyinternalcontrolsrelatedtolong-andshort-termborrowingsandinterestonlong-andshort-termborrowings,andevaluatingwhethertherelevantcontrolsareappropriateandeffectivelyimplemented;(2)Obtainingborrowingcontracts,reviewingthenatureofborrowings,understandingtheborrowingintentionsofBengangSteelPlates,understandingthefutureplansfortherelevantborrowingcostcapitalizationitems,andreviewingitsinternalresolutionsrelatedtothecapitalizationofborrowingcosts; |
| (3)RecalculatingtheborrowingcostsofBengangSteelPlatesandcheckingwhethertheclassificationoftheexpensedamountandcapitalizedamountiscorrect;(4)Reviewinginthefieldthecurrentstatusofborrowingcostcapitalizationitems,analyzingandcheckingwhethertheymeettheconditionsforborrowingcostcapitalization,andcheckingtheaccountingtreatmentrelatedtoborrowingcostcapitalization;(5)Checkingwhethertheinformationrelatedtoborrowingmattershasbeenproperlypresentedanddisclosedinthefinancialstatements. | |
| 3.Revenuerecognitionmatters | |
| Keyauditmatters | Responsesintheaudit |
| PleaserefertotheaccountingpoliciesdescribedinNote24of"IV.Significantaccountingpoliciesandaccountingestimates"andNotes37of"VI.Notestotheprincipalitemsoftheconsolidatedfinancialstatements"inthenotestothefinancialstatements.InFY2022,theamountofoperatingincomerecognizedintheconsolidatedfinancialstatementsofBengangSteelPlateswasRMB62,616,621,600.SincerevenueisakeyperformanceindicatorofBengangSteelPlates,andthemanagementofBengangSteelPlatesmaybeexposedtotheriskofmaterialmisstatementinrevenuerecognition,weclassifiedrevenuerecognitionasakeyauditmatter. | Theauditproceduresweperformedwereasfollows:(1)Understandingandtestingkeyinternalcontrolsrelatedtorevenueandevaluatingwhethertherelevantcontrolsareappropriateandeffectivelyimplemented;(2)Selectingsamplestoexaminesalescontracts,identifythecontractualtermsandconditionsrelatedtothetransferofcontrolofgoods,andevaluatewhetherthetimingofrevenuerecognitionofBengangSteelPlatesmeetstherequirementsoftheAccountingStandardsforBusinessEnterprises;(3)Obtainingdetailsofsalesforthecurrentyear,selectingsamplesofrevenuetransactionsrecordedduringtheyeartochecksupportingdocumentssuchassalescontracts,invoices,outboundorders,acceptanceslips,customsdeclarations,oceanbillsoflading,andevaluatewhethertherelevantrevenuerecognitionisinaccordancewiththeCompany'saccountingpolicies;(4)Performinganalyticalproceduresonrevenues,includingacomparisonofthegrossprofitofrevenuesofmajorproductsforthecurrentperiodwiththegrossprofitofrevenuesofthepreviousperiodandthesameindustry,andananalysisoffluctuationsinrevenuestocheckforabnormalities;(5)Performingcorrespondenceprocedureswithasampleofcustomersregardingsalesrevenueforthereportingperiodinconjunctionwiththeaccountsreceivableauditprocedures;(6)Checkingsalestorelatedparties,reviewingthefairnessof |
?OtherInformation
ThemanagementofBengangSteelPlates(hereinafterreferredtoastheManagement)isresponsiblefortheotherinformation.Otherinformationincludestheinformationcoveredinthe2022AnnualReportofBengangSteelPlates,butexcludesthefinancialstatementsandourauditor’sreport.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementoftheotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.?ResponsibilitiesoftheManagementandthosechargedwithgovernanceforthefinancialstatements
TheManagementisresponsibleforthepreparationofthefinancialstatementsinaccordancewiththeprovisionsoftheAccountingStandardsforBusinessEnterprisestoachieveafairpresentation,anddesigning,implementingandmaintainingthenecessaryinternalcontrolssothatthefinancialstatementsarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,theManagementisresponsibleforassessingtheabilityofBengangSteelPlatestocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlesstheManagementeitherintendstoliquidateBengangSteelPlatesortoceaseoperations,orhavenorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingthefinancialreportingprocessofBengangSteelPlates.
?Auditor’sresponsibilitiesfortheauditofthefinancialstatementsOurobjectivesaretoobtainreasonableassuranceastowhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatexpressesouropinion.Althoughreasonableassuranceisahighlevelofassurance,itisnotaguaranteethatanauditconductedinaccordancewithauditingstandardswill
alwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandaregenerallyconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsthatusersofthefinancialstatementsmakeonthebasisofthefinancialstatements.Duringthecourseoftheauditinaccordancewithauditingstandards,weexerciseprofessionaljudgementandmaintainprofessionalskepticism.Wealsocarryoutthefollowingworks:
?Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,design
andperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouraudit.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
?Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.
?Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelated
disclosuresmadebytheManagement.
?ConcludeontheappropriatenessoftheManagement’suseofthegoingconcernbasisofaccountingand,basedonthe
auditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheabilityofBengangSteelPlatestocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsinaccordancewiththeauditingstandardsor,ifsuchdisclosuresareinadequate,weshallmodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycauseBengangSteelPlatestoceasetocontinueasagoingconcern.
?Evaluatetheoverallpresentation,structureandcontent(includingdisclosures)ofthefinancialstatements,andalso
whetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
?Obtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivities
withinBengangSteelPlatestoexpressanopinionontheconsolidatedfinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceauditofthegroup.Weremainsolelyresponsibleforourauditopinion.Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindingsetc.,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwiththoserelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependenceandrelatedsafeguards,whereapplicable.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprohibitedpublicdisclosureaboutthematterorwhen,inrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
| ShineWingCertifiedPublicAccountantsLLP | ChineseCertifiedPublicAccountant:(Engagementpartner) |
ChineseCertifiedPublicAccountant:
Beijing,China
| Beijing,China | March28th,2023 |
II.Financialstatements
TheunitofthestatementsinthefinancialnotesisRMB.
1.ConsolidatedstatementoffinancialpositionPreparedby:BengangSteelPlatesCo.,Ltd.December31
st,2022Unit:RMB
| Item | December31st,2022 | January1st,2022 |
| Currentassets: | ||
| Cashandcashequivalents | 1,461,145,641.87 | 8,831,095,737.85 |
| Settlementprovisions | ||
| Capitallent | ||
| Financialassetsheldfortrading | ||
| Derivativefinancialassets | ||
| Notesreceivable | 429,707,174.70 | 1,540,482,182.07 |
| Accountsreceivable | 897,230,896.06 | 256,850,782.71 |
| Accountsreceivablefinancing | 137,591,996.02 | 1,530,735,647.38 |
| Prepayments | 1,247,177,748.33 | 994,370,345.64 |
| Premiumreceivable | ||
| Reinsuranceaccountsreceivable | ||
| Receivabledepositforreinsurancecontract | ||
| Otherreceivables | 127,198,692.92 | 165,937,280.41 |
| Including:Interestreceivables | 2,523,993.39 | |
| Dividendsreceivable | ||
| Redemptoryfinancialassetsforsale | ||
| Inventories | 8,463,728,475.18 | 10,190,166,138.98 |
| Contractassets | ||
| Assetsheldforsale | ||
| Non-currentassetsduewithinoneyear | ||
| Othercurrentassets | 395,441,136.26 | 754,948,193.56 |
| Totalcurrentassets | 13,159,221,761.34 | 24,264,586,308.60 |
| Non-currentassets: | ||
| Loanandadvancesissued | ||
| Debtinvestments | ||
| Otherdebtinvestments | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 51,030,777.18 | 2,981,784.07 |
| Otherequityinstrumentinvestments | 1,020,418,482.31 | 1,042,024,829.00 |
| Othernon-currentfinancialassets | ||
| Investmentproperty | ||
| Fixedassets | 24,836,556,422.90 | 25,480,674,048.94 |
| Constructioninprogress | 3,158,195,899.65 | 2,434,182,101.13 |
| Productivebiologicalassets | ||
| Oilandgasassets | ||
| Right-of-useassets | 1,379,990,713.89 | 1,440,365,248.31 |
| Intangibleassets | 262,784,937.41 | 297,921,548.81 |
| Developmentexpenditure | ||
| Goodwill | ||
| Long-termdeferredexpenses |
| Item | December31st,2022 | January1st,2022 |
| Deferredtaxassets | 136,387,885.28 | 153,756,548.31 |
| Othernon-currentassets | 110,065,560.68 | 30,630,858.13 |
| Totalnon-currentassets | 30,955,430,679.30 | 30,882,536,966.70 |
| Totalassets | 44,114,652,440.64 | 55,147,123,275.30 |
| Currentliabilities: | ||
| Short-termloans | 49,200,000.00 | 4,053,088,140.00 |
| Loanfromcentralbank | ||
| Loanfromotherbanks | ||
| Financialliabilityheldfortrading | ||
| Derivativefinancialliabilities | ||
| Notespayable | 4,389,336,619.36 | 4,635,083,376.48 |
| Accountspayable | 3,696,420,463.85 | 5,352,272,685.89 |
| Advancefromcustomers | 0.00 | 0.00 |
| Contractliabilities | 3,794,115,592.29 | 4,708,188,093.78 |
| Financialassetssoldforrepurchase | ||
| Depositsfromcustomersandinterbank | ||
| Receiptfromvicariouslytradedsecurities | ||
| Receiptfromvicariouslyunderwritingsecurities | ||
| Employeebenefitspayable | 10,046,363.27 | 152,095,376.49 |
| Taxespayable | 44,392,920.78 | 114,267,988.70 |
| Otherpayables | 1,247,722,165.47 | 1,348,025,731.98 |
| Including:Interestpayable | ||
| Dividendspayable | ||
| Handlingchargesandcommissionpayable | ||
| Reinsuranceaccountspayable | ||
| Liabilitiesheldforsale | ||
| Non-currentliabilitiesduewithinoneyear | 2,586,250,886.43 | 310,780,518.14 |
| Othercurrentliabilities | 493,235,027.03 | 612,064,452.20 |
| Totalcurrentliabilities | 16,310,720,038.48 | 21,285,866,363.66 |
| Non-currentliabilities: | ||
| Provisionforinsurancecontract | ||
| Long-termloans | 1,726,938,302.30 | 4,222,821,771.74 |
| Bondspayable | 5,276,502,232.78 | 5,054,251,668.83 |
| Including:Preferredstock | ||
| Perpetualbond | ||
| Leasingliabilities | 1,384,348,462.18 | 1,424,667,169.15 |
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Estimatedliabilities | ||
| Deferredincome | 42,377,015.51 | 93,106,285.89 |
| Deferredtaxliabilities | 27,309.01 | |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 8,430,193,321.78 | 10,794,846,895.61 |
| Totalliabilities | 24,740,913,360.26 | 32,080,713,259.27 |
| Owners'equity: | ||
| Sharecapital | 4,108,212,217.00 | 4,108,191,379.00 |
| Otherequityinstruments | 947,863,834.02 | 947,882,663.63 |
| Including:Preferredstock | ||
| Perpetualbond | ||
| Capitalreserves | 13,272,205,160.21 | 13,272,134,173.09 |
| Less:Treasuryshares | ||
| Othercomprehensiveincome | -15,904,760.02 | |
| Specialreserves | 2,217,913.77 | 337,978.57 |
| Surplusreserves | 1,195,116,522.37 | 1,195,116,522.37 |
| Generalriskreserve |
| Item | December31st,2022 | January1st,2022 |
| Undistributedprofits | -720,559,670.73 | 2,977,306,297.64 |
| Totalequityattributabletoownersoftheparentcompany | 18,789,151,216.62 | 22,500,969,014.30 |
| Non-controllinginterests | 584,587,863.76 | 565,441,001.73 |
| Totalowners’equity | 19,373,739,080.38 | 23,066,410,016.03 |
| Totalofliabilitiesandowners’equity | 44,114,652,440.64 | 55,147,123,275.30 |
LegalRepresentative:LiYanChiefFinancialOfficer:ZhengZhengliChiefAccountant:SunYanbin
2.StatementoffinancialpositionoftheparentcompanyUnit:RMB
| Item | December31st,2022 | January1st,2022 |
| Currentassets: | ||
| Cashandcashequivalents | 585,125,555.12 | 7,580,872,007.38 |
| Financialassetsheldfortrading | ||
| Derivativefinancialassets | ||
| Notesreceivable | 669,193,401.02 | 1,514,416,395.80 |
| Accountsreceivable | 931,035,796.58 | 353,631,563.42 |
| Accountsreceivablefinancing | 127,468,835.80 | 1,504,640,362.79 |
| Prepayments | 1,247,084,271.88 | 1,004,241,075.82 |
| Otherreceivables | 150,724,545.56 | 268,606,048.52 |
| Including:Interestreceivables | 2,014,931.61 | |
| Dividendsreceivable | ||
| Inventories | 6,988,993,205.61 | 8,289,784,141.78 |
| Contractassets | ||
| Assetsheldforsale | ||
| Non-currentassetsduewithinoneyear | ||
| Othercurrentassets | 310,293,996.25 | 670,787,069.41 |
| Totalcurrentassets | 11,009,919,607.82 | 21,186,978,664.92 |
| Non-currentassets: | ||
| Debtinvestments | ||
| Otherdebtinvestments | ||
| Long-termreceivables | ||
| Long-termequityinvestments | 2,270,277,904.85 | 2,015,186,190.50 |
| Otherequityinstrumentinvestments | 1,020,418,482.31 | 1,041,624,829.00 |
| Othernon-currentfinancialassets | ||
| Investmentproperty | ||
| Fixedassets | 23,777,736,434.39 | 24,110,222,815.60 |
| Constructioninprogress | 3,127,247,793.98 | 2,401,120,232.45 |
| Productivebiologicalassets | ||
| Oilandgasassets | ||
| Right-of-useassets | 1,379,990,713.89 | 1,440,365,248.31 |
| Intangibleassets | 174,295,096.19 | 178,414,033.19 |
| Developmentexpenditure | ||
| Goodwill | ||
| Long-termdeferredexpenses | ||
| Deferredtaxassets | 115,126,210.76 | 124,046,003.13 |
| Othernon-currentassets | 110,065,560.68 | 22,010,941.60 |
| Totalnon-currentassets | 31,975,158,197.05 | 31,332,990,293.78 |
| Totalassets | 42,985,077,804.87 | 52,519,968,958.70 |
| Currentliabilities: | ||
| Short-termloans | 49,200,000.00 | 3,353,088,140.00 |
| Financialliabilityheldfortrading | ||
| Derivativefinancialliabilities | ||
| Notespayable | 3,982,738,952.59 | 4,650,517,420.18 |
| Accountspayable | 3,821,848,200.25 | 5,674,841,169.66 |
| Item | December31st,2022 | January1st,2022 |
| Advancefromcustomers | 0.00 | 0.00 |
| Contractliabilities | 4,805,281,178.80 | 4,660,051,055.89 |
| Employeebenefitspayable | 9,901,551.31 | 151,595,453.62 |
| Taxespayable | 22,518,649.65 | 40,949,825.13 |
| Otherpayables | 861,392,691.88 | 683,141,570.83 |
| Including:Interestpayable | ||
| Dividendspayable | ||
| Liabilitiesheldforsale | ||
| Non-currentliabilitiesduewithinoneyear | 2,586,250,886.43 | 310,780,518.14 |
| Othercurrentliabilities | 624,686,553.24 | 605,806,637.27 |
| Totalcurrentliabilities | 16,763,818,664.15 | 20,130,771,790.72 |
| Non-currentliabilities: | ||
| Longtermloans | 1,726,938,302.30 | 4,222,821,771.74 |
| Bondspayable | 5,276,502,232.78 | 5,054,251,668.83 |
| Including:Preferredstock | ||
| Perpetualbond | ||
| Leaseliabilities | 1,384,348,462.18 | 1,424,667,169.15 |
| Long-termpayables | ||
| Long-termemployeebenefitspayable | ||
| Estimatedliabilities | ||
| Deferredincome | 42,377,015.51 | 93,106,285.89 |
| Deferredtaxliabilities | 27,309.01 | |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 8,430,193,321.78 | 10,794,846,895.61 |
| Totalliabilities | 25,194,011,985.93 | 30,925,618,686.33 |
| Shareholder’sequity: | ||
| Sharecapital | 4,108,212,217.00 | 4,108,191,379.00 |
| Otherequityinstruments | 947,863,834.02 | 947,882,663.63 |
| Including:Preferredstock | ||
| Perpetualbond | ||
| Capitalreserves | 12,852,053,478.09 | 12,851,982,490.97 |
| Less:Treasuryshares | ||
| Othercomprehensiveincome | -15,904,760.02 | |
| Specialreserves | 58,212.15 | 155,469.58 |
| Surplusreserves | 1,195,116,522.37 | 1,195,116,522.37 |
| Undistributedprofits | -1,296,333,684.67 | 2,491,021,746.82 |
| Totalowners'equity | 17,791,065,818.94 | 21,594,350,272.37 |
| Totalliabilitiesandowners’equity | 42,985,077,804.87 | 52,519,968,958.70 |
3.Consolidatedincomestatement
Unit:RMB
| Item | FY2022 | FY2021 |
| I.Totaloperatingincome | 62,616,621,627.60 | 77,912,144,981.46 |
| Including:Operatingincome | 62,616,621,627.60 | 77,912,144,981.46 |
| Interestincome | ||
| Premiumearned | ||
| Incomefromhandlingchargesandcommission | ||
| II.Totaloperatingcost | 63,838,504,250.02 | 74,244,688,137.82 |
| Including:Operatingcost | 62,259,334,854.72 | 71,891,598,336.96 |
| Interestexpense | ||
| Expenditureforhandlingchargesandcommission | ||
| Surrendervalue | ||
| Netexpenditureforcompensation | ||
| Netprovisionforinsurancecontractappropriated |
| Item | FY2022 | FY2021 |
| Bonuspaymentforpolicy | ||
| Reinsurancepremium | ||
| Taxandsurcharges | 206,440,870.56 | 431,460,563.69 |
| Sellinganddistributionexpenses | 128,489,696.80 | 141,394,565.57 |
| Generalandadministrativeexpenses | 663,080,654.45 | 1,187,239,442.10 |
| Researchanddevelopmentexpenses | 58,088,008.14 | 56,401,594.44 |
| Financialexpenses | 523,070,165.35 | 536,593,635.06 |
| Including:Interestexpense | 599,359,597.96 | 1,007,595,231.75 |
| Interestincome | 80,619,490.18 | 393,818,460.36 |
| Add:Otherincome | 72,300,830.48 | 66,345,976.64 |
| Incomeoninvestment(“-”forloss) | 89,589,183.44 | -120,519,309.82 |
| Including:Incomefromassociatesandjointventures | -181,084.64 | 520,432.46 |
| Incomefromderecognitionoffinancialassetsmeasuredatamortizedcost | ||
| Exchangegains(“-”forloss) | ||
| Netexposurehedgeincome(“-”forloss) | ||
| Gainsfromchangeoffairvalue(“-”forloss) | ||
| Creditimpairmentloss(“-”forloss) | -4,366,027.94 | -7,754,375.77 |
| Assetsimpairmentloss(“-”forloss) | -33,475,219.25 | -113,671,335.02 |
| Assetsdisposalgains(“-”forloss) | 3,648,546.62 | 130,675.05 |
| III.Operationalprofit(“-”forloss) | -1,094,185,309.07 | 3,491,988,474.72 |
| Add:Non-operatingincome | 40,130,944.39 | 7,783,225.80 |
| Less:Non-operatingexpenses | 26,623,177.77 | 64,272,629.43 |
| IV.Totalprofit(“-”forloss) | -1,080,677,542.45 | 3,435,499,071.09 |
| Less:Incometaxexpenses | 125,374,177.41 | 901,863,572.46 |
| V.Netprofit(“-”forloss) | -1,206,051,719.86 | 2,533,635,498.63 |
| (I)Classificationbycontinuingoperating | ||
| 1.Netprofitfromcontinuingoperation(“-”forloss) | -1,206,051,719.86 | 2,533,635,498.63 |
| 2.Netprofitfromdiscontinuedoperation(“-”forloss) | ||
| (II)Classificationbyownership | ||
| 1.Netprofitattributabletotheownersofparentcompany | -1,232,976,557.37 | 2,500,582,902.58 |
| 2.Netprofitattributabletonon-controllingshareholders | 26,924,837.51 | 33,052,596.05 |
| VI.Netafter-taxamountofothercomprehensiveincome | -15,879,343.62 | 0.00 |
| Othercomprehensiveincomeattributabletoownersoftheparentcompanyaftertax | -15,879,343.62 | 0.00 |
| (I)Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/losses | -15,879,343.62 | 0.00 |
| 1.Re-measurementofdefinedbenefitplansofchangesinnetdebtornetassets | ||
| 2.Othercomprehensiveincomeundertheequitymethodcannotbereclassifiedintoprofitorloss | ||
| 3.Changesinfairvalueofinvestmentsinotherequityinstruments | -15,879,343.62 | |
| 4.ChangesinfairvalueofCompany'screditrisk | ||
| 5.Others | ||
| (II)Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss | 0.00 | 0.00 |
| 1.Othercomprehensiveincomeundertheequitymethodwhichcanbereclassifiedintoprofitorloss | ||
| 2.Changesinfairvalueofotherdebtinvestments | ||
| 3.Amountoffinancialassetsreclassifiedintoothercomprehensiveincome | ||
| 4.Creditimpairmentprovisionofotherdebtinvestments | ||
| 5.Cashflowhedgereserves | ||
| 6.Translationdifferencesinforeigncurrencyfinancialstatements | ||
| 7.Others | ||
| Othercomprehensiveincomeattributabletonon-controllingshareholders’equityaftertax | ||
| VII.Totalcomprehensiveincome | -1,221,931,063.48 | 2,533,635,498.63 |
| Totalcomprehensiveincomeattributabletotheowneroftheparentcompany | -1,248,855,900.99 | 2,500,582,902.58 |
| Item | FY2022 | FY2021 |
| Totalcomprehensiveincomeattributabletonon-controllingshareholders | 26,924,837.51 | 33,052,596.05 |
| VIII.Earningspershare | ||
| (I)Basicearningspershare | -0.300 | 0.600 |
| (II)Dilutedearningspershare | -0.300 | 0.496 |
Intheeventofabusinesscombinationundercommoncontrolduringtheperiod,thenetprofitrealizedbythepartybeingconsolidatedbeforethecombinationwasRMB:,andthenetprofitrealizedbytheconsolidatedpartyinthepreviousperiodwasRMB:.LegalRepresentative:LiYanChiefFinancialOfficer:ZhengZhengliChiefAccountant:SunYanbin
4.IncomestatementoftheparentcompanyUnit:RMB
| Item | FY2022 | FY2021 |
| I.Operatingincome | 63,081,757,089.14 | 78,721,461,725.71 |
| Less:Operatingcost | 63,165,254,867.80 | 73,203,463,475.56 |
| Taxandsurcharges | 157,419,976.34 | 381,385,801.80 |
| Sellinganddistributionexpenses | 162,072,670.40 | 122,357,594.15 |
| Generalandadministrativeexpenses | 579,730,173.82 | 1,123,575,016.51 |
| Researchanddevelopmentexpenses | 58,088,008.14 | 56,401,594.44 |
| Financialexpenses | 523,903,605.28 | 521,028,798.20 |
| Including:Interestexpense | 580,671,493.79 | 971,156,413.61 |
| Interestincome | 59,532,341.41 | 372,598,200.22 |
| Add:Otherincome | 71,247,038.47 | 65,897,317.34 |
| Incomeoninvestment(“-”forloss) | 260,636,435.24 | -123,815,558.88 |
| Including:Incomefromassociatesandjointventures | -580,788.56 | 0.00 |
| Incomefromderecognitionoffinancialassetsmeasuredatamortizedcost(“-”forloss) | ||
| Netexposurehedgeincome(“-”forloss) | ||
| Gainsfromchangeoffairvalue(“-”forloss) | ||
| Creditimpairmentloss(“-”forloss) | -4,244,546.20 | -8,563,525.91 |
| Assetsimpairmentloss(“-”forloss) | -33,475,219.25 | -113,671,335.02 |
| Assetsdisposalgains(“-”forloss) | 3,669,258.68 | 130,675.05 |
| II.Operationalprofit(“-”forloss) | -1,266,879,245.70 | 3,133,227,017.63 |
| Add:Non-operatingincome | 32,814,019.52 | 3,831,724.04 |
| Less:Non-operatingexpenses | 26,463,198.79 | 62,183,332.01 |
| III.Totalprofit(“-”forloss) | -1,260,528,424.97 | 3,074,875,409.66 |
| Less:Incometaxexpenses | 59,489,282.29 | 734,765,484.50 |
| IV.Netprofit(“-”forloss) | -1,320,017,707.26 | 2,340,109,925.16 |
| (I)Netprofitfromcontinuingoperation(“-”forloss) | -1,320,017,707.26 | 2,340,109,925.16 |
| (II)Netprofitfromdiscontinuedoperation(“-”forloss) | ||
| V.Netafter-taxamountofothercomprehensiveincome | -15,904,760.02 | 0.00 |
| (I)Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/losses | -15,904,760.02 | 0.00 |
| 1.Re-measurementofdefinedbenefitplansofchanges | ||
| 2.Othercomprehensiveincomeundertheequitymethodcannotbereclassifiedintoprofitorloss | ||
| 3.Changesinfairvalueofinvestmentsinotherequityinstruments | -15,904,760.02 | |
| 4.ChangesinfairvalueofCompany'screditrisk | ||
| 5.Others | ||
| (II)Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss | 0.00 | 0.00 |
| 1.Othercomprehensiveincomeundertheequitymethodinvesteecanbereclassifiedintoprofitorloss | ||
| 2.Changesinfairvalueofotherdebtinvestments | ||
| 3.Amountoffinancialassetsreclassifiedintoothercomprehensiveincome | ||
| 4.Creditimpairmentprovisionofotherdebtinvestments | ||
| 5.Cashflowhedgereserves |
| Item | FY2022 | FY2021 |
| 6.Translationdifferencesinforeigncurrencyfinancialstatements | ||
| 7.Others | ||
| VI.Totalcomprehensiveincome | -1,335,922,467.28 | 2,340,109,925.16 |
| VII.Earningspershare | ||
| (I)Basicearningspershare | ||
| (II)Dilutedearningspershare |
5.Consolidatedcashflowstatement
Unit:RMB
| Item | FY2022 | FY2021 |
| I.Cashflowfromoperatingactivities | ||
| Cashreceivedfromsaleofgoodsorrenderingofservices | 51,073,772,028.16 | 55,748,897,664.65 |
| Netincreaseofcustomers’depositandinterbankdeposit | ||
| Netincreaseofloanfromcentralbank | ||
| Netincreaseofloansfromotherfinancialinstitutions | ||
| Cashreceivedforpremiumoforiginalinsurancecontract | ||
| Netcashreceivedforreinsurancebusiness | ||
| Netincreaseofdepositandinvestmentoftheinsured | ||
| Cashfromreceivinginterest,handlingchargeandcommission | ||
| Netincreaseofloansfromborrowingfunds | ||
| Netincreaseoffundforrepurchasebusiness | ||
| Netcashreceivedfromtradedsecurities | ||
| Taxrebatereceived | 483,849,940.14 | 78,323,445.53 |
| Othercashreceivedrelatingtooperatingactivities | 123,009,781.28 | 501,366,768.12 |
| Subtotalofcashinflowsfromoperatingactivities | 51,680,631,749.58 | 56,328,587,878.30 |
| Cashpaidforgoodsandservices | 46,861,851,072.12 | 50,647,643,333.57 |
| Netincreaseofcustomer’sloanandadvances | ||
| Netincreaseofdepositincentralbankandinterbankdeposit | ||
| Cashforpaymentofcompensationfororiginalinsurancecontract | ||
| Netincreaseincapitallent | ||
| Cashforpaymentofinterest,handlingchargeandcommission | ||
| Cashforpaymentofpolicybonus | ||
| Cashpaidtoandonbehalfofemployees | 2,802,982,355.80 | 2,451,084,010.00 |
| Cashpaidforalltypesoftaxes | 651,109,945.61 | 2,673,210,895.18 |
| Othercashpaidrelatingtooperatingactivities | 88,325,410.49 | 143,176,185.51 |
| Subtotalofcashoutflowsfromoperatingactivities | 50,404,268,784.02 | 55,915,114,424.26 |
| Netcashflowsfromoperatingactivities | 1,276,362,965.56 | 413,473,454.04 |
| II.Cashflowsfrominvestingactivities | ||
| Cashreceivedfromdisposalofinvestments | 422,818.29 | 11,400,000,000.00 |
| Cashreceivedfromreturnoninvestments | 2,879,850.07 | 2,717,582.45 |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 4,752,720.71 | 2,776.27 |
| Netcashreceivedfromdisposalofsubsidiaryandotheroperatingunits | 137,073,256.40 | 0.00 |
| Othercashpaidrelatingtoinvestingactivities | ||
| Subtotalofcashinflowsfrominvestingactivities | 145,128,645.47 | 11,402,720,358.72 |
| Cashpaidforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 1,707,467,068.85 | 1,304,976,365.56 |
| Cashpaidforinvestments | 6,200,000,000.00 | |
| Netincreaseofmortgageloan | ||
| Netcashreceivedfromsubsidiaryandotheroperatingunit | ||
| Othercashpaidrelatingtoinvestingactivities | ||
| Subtotalofcashoutflowsfrominvestingactivities | 1,707,467,068.85 | 7,504,976,365.56 |
| Netcashflowsfrominvestingactivities | -1,562,338,423.38 | 3,897,743,993.16 |
| III.Cashflowsfromfinancingactivities |
| Item | FY2022 | FY2021 |
| Proceedsfrominvestment | ||
| Including:Proceedsfromtheinvestmentofnon-controllingshareholdersofthesubsidiary | ||
| Proceedsfromborrowings | 2,000,000,000.00 | 5,801,673,020.00 |
| Otherproceedsrelatingtofinancingactivities | 2,759,751,595.78 | 2,361,272,208.08 |
| Subtotalofcashinflowsfromfinancingactivities | 4,759,751,595.78 | 8,162,945,228.08 |
| Cashrepaymentsofborrowings | 6,245,551,350.67 | 12,072,544,553.18 |
| Cashpaymentsforthedistributionofdividends,profitorinterestexpenses | 2,765,916,748.51 | 2,550,802,187.51 |
| Including:Cashpaidtonon-controllingshareholdersasdividendsandprofitbysubsidiaries | ||
| Othercashpaymentsrelatingtofinancingactivities | 485,930,596.70 | 740,000,000.00 |
| Subtotalofcashoutflowsfromfinancingactivities | 9,497,398,695.88 | 15,363,346,740.69 |
| Netcashflowsfromfinancingactivities | -4,737,647,100.10 | -7,200,401,512.61 |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | 21,186,177.64 | -41,134,466.23 |
| V.Netincreaseincashandcashequivalents | -5,002,436,380.28 | -2,930,318,531.64 |
| Add:Cashandcashequivalentsatthebeginningoftheperiod | 6,299,099,063.48 | 9,229,417,595.12 |
| VI.Cashandcashequivalentsattheendoftheperiod | 1,296,662,683.20 | 6,299,099,063.48 |
6.Cashflowstatementoftheparentcompany
Unit:RMB
| Item | FY2022 | FY2021 |
| I.Cashflowfromoperatingactivities | ||
| Cashreceivedfromthesaleofgoodsortherenderingofservices | 52,566,695,245.11 | 60,408,664,898.10 |
| Taxrebatereceived | 446,252,731.21 | 21,209,047.83 |
| Othercashreceivedrelatingtooperatingactivities | 95,185,405.62 | 461,672,257.35 |
| Subtotalofcashinflowsfromoperatingactivities | 53,108,133,381.94 | 60,891,546,203.28 |
| Cashpaidforgoodsandservices | 48,331,653,935.65 | 55,735,903,034.60 |
| Cashpaidtoandonbehalfofemployees | 2,666,197,042.40 | 2,345,338,852.62 |
| Cashpaidforalltypesoftaxes | 339,347,119.05 | 2,498,120,146.95 |
| Othercashpaidrelatingtooperatingactivities | 114,224,449.37 | 123,901,730.49 |
| Subtotalofcashoutflowsfromoperatingactivities | 51,451,422,546.47 | 60,703,263,764.66 |
| Netcashflowsfromoperatingactivities | 1,656,710,835.47 | 188,282,438.62 |
| II.Cashflowsfrominvestingactivities | ||
| Cashreceivedfromdisposalofinvestments | 0.00 | 11,400,000,000.00 |
| Cashreceivedfromreturnoninvestments | 56,019,227.23 | 2,436,869.33 |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 4,341,972.00 | 0.00 |
| Netcashreceivedfromdisposalofsubsidiaryandotheroperatingunits | 205,076,325.08 | 0.00 |
| Othercashreceivedrelatingtoinvestingactivities | 0.00 | 0.00 |
| Subtotalofcashinflowsfrominvestingactivities | 265,437,524.31 | 11,402,436,869.33 |
| Cashpaidforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 1,698,674,088.11 | 1,304,157,060.45 |
| Cashpaidforinvestments | 850,000,000.00 | 6,200,000,000.00 |
| Netcashpaidforacquisitionofsubsidiaryandotheroperatingunit | ||
| Othercashpaidrelatingtoinvestingactivities | ||
| Subtotalofcashoutflowspaidforinvestingactivities | 2,548,674,088.11 | 7,504,157,060.45 |
| Netcashflowsfrominvestingactivities | -2,283,236,563.80 | 3,898,279,808.88 |
| III.Cashflowsfromfinancingactivities | ||
| Cashflowsfromfinancingactivities | ||
| Cashreceivedfromborrowings | 2,000,000,000.00 | 5,101,673,020.00 |
| Othercashreceivedrelatingtofinancingactivities | 2,759,751,595.78 | 1,374,782,185.21 |
| Subtotalofcashinflowsfromfinancingactivities | 4,759,751,595.78 | 6,476,455,205.21 |
| Cashrepaymentsofborrowings | 5,545,551,350.67 | 11,112,544,553.18 |
| Cashpaymentsfordistributionofdividends,profitorinterest | 2,750,764,581.84 | 2,518,311,312.47 |
| Othercashpaymentsrelatingtofinancingactivities | 485,930,596.70 | 740,000,000.00 |
| Item | FY2022 | FY2021 |
| Subtotalofcashoutflowsfromfinancingactivities | 8,782,246,529.21 | 14,370,855,865.65 |
| Netcashflowsfromfinancingactivities | -4,022,494,933.43 | -7,894,400,660.44 |
| IV.Effectofforeignexchangeratechangesoncashandcashequivalents | 20,787,925.20 | -41,145,257.65 |
| V.Netincreaseincashandcashequivalents | -4,628,232,736.56 | -3,848,983,670.59 |
| Add:Cashandcashequivalentsatthebeginningoftheperiod | 5,048,875,333.01 | 8,897,859,003.60 |
| VI.Cashandcashequivalentsattheendingoftheperiod | 420,642,596.45 | 5,048,875,333.01 |
7.Consolidatedstatementofchangesinowners’equity
AmountincurrentperiodUnit:RMB
| Item | FY2022 | ||||||||||||||
| Equityattributabletoownersoftheparentcompany | Non-controllinginterest | Totalofowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplusreserves | Generalriskreserve | Undistributedprofit | Others | Subtotal | |||||
| Preferenceshares | Perpetualbond | Others | |||||||||||||
| I.Closingbalanceoftheprioryear | 4,108,191,379.00 | 0.00 | 0.00 | 947,882,663.63 | 13,272,134,173.09 | 0.00 | 0.00 | 337,978.57 | 1,195,116,522.37 | 0.00 | 2,977,306,297.64 | 22,500,969,014.30 | 565,441,001.73 | 23,066,410,016.03 | |
| Add:Changeofaccountingpolicies | 0.00 | ||||||||||||||
| Correctionofprior-perioderrors | 0.00 | ||||||||||||||
| Businessconsolidationundercommoncontrol | 0.00 | ||||||||||||||
| Others | 0.00 | ||||||||||||||
| II.Openingbalanceofthecurrentyear | 4,108,191,379.00 | 0.00 | 0.00 | 947,882,663.63 | 13,272,134,173.09 | 0.00 | 0.00 | 337,978.57 | 1,195,116,522.37 | 0.00 | 2,977,306,297.64 | 0.00 | 22,500,969,014.30 | 565,441,001.73 | 23,066,410,016.03 |
| III.Changesincurrentyear(“-”fordecrease) | 20,838.00 | 0.00 | 0.00 | -18,829.61 | 70,987.12 | 0.00 | -15,904,760.02 | 1,879,935.20 | 0.00 | 0.00 | -3,697,865,968.37 | 0.00 | -3,711,817,797.68 | 19,146,862.03 | -3,692,670,935.65 |
| (I)Totalcomprehensiveincome | -15,879,343.62 | -1,232,976,557.37 | -1,248,855,900.99 | 26,924,837.51 | -1,221,931,063.48 | ||||||||||
| (II)Capitalincreaseanddecreasebyowners | 20,838.00 | 0.00 | 0.00 | -18,829.61 | 70,987.12 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 72,995.51 | -7,777,975.48 | -7,704,979.97 |
| 1.Commonshareinvestedbyshareholders | 0.00 | 0.00 | |||||||||||||
| 2.Capitalinputbytheholderofotherequityinstruments | 20,838.00 | -18,829.61 | 70,987.12 | 72,995.51 | 72,995.51 | ||||||||||
| 3.Share-basedpaymentattributabletoshareholders’ | 0.00 | 0.00 | |||||||||||||
| Item | FY2022 | ||||||||||||||
| Equityattributabletoownersoftheparentcompany | Non-controllinginterest | Totalofowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplusreserves | Generalriskreserve | Undistributedprofit | Others | Subtotal | |||||
| Preferenceshares | Perpetualbond | Others | |||||||||||||
| equity | |||||||||||||||
| 4.Others | 0.00 | 0.00 | -7,777,975.48 | -7,777,975.48 | |||||||||||
| (III)Profitdistribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -2,464,914,827.40 | 0.00 | -2,464,914,827.40 | 0.00 | -2,464,914,827.40 |
| 1.Appropriationtosurplusreserves | 0.00 | 0.00 | |||||||||||||
| 2.Appropriationtogeneralriskreserve | 0.00 | 0.00 | |||||||||||||
| 3.Profitdistributiontoowners(orshareholders) | -2,464,914,827.40 | -2,464,914,827.40 | -2,464,914,827.40 | ||||||||||||
| 4.Others | 0.00 | 0.00 | |||||||||||||
| (IV)Internaltransferofowners'equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -25,416.40 | 0.00 | 0.00 | 0.00 | 25,416.40 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1.Capitalreserveconvertedintocapital(orsharecapital) | 0.00 | 0.00 | |||||||||||||
| 2.Surplusreserveconvertedintocapital(orsharecapital) | 0.00 | 0.00 | |||||||||||||
| 3.Recoveroflossbysurplusreserve | 0.00 | 0.00 | |||||||||||||
| 4.Changesindefinedbenefitplanscarriedforwardtoretainedearnings | 0.00 | 0.00 | |||||||||||||
| 5.Othercomprehensiveincomecarriedforwardtoretainedearnings | -25,416.40 | 25,416.40 | 0.00 | 0.00 | |||||||||||
| 6.Others | 0.00 | 0.00 | |||||||||||||
| (V)Specialreserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,879,935.20 | 0.00 | 0.00 | 1,879,935.20 | 0.00 | 1,879,935.20 | ||
| 1.Withdrawnin | 77,018,511.80 | 77,018,511.80 | 4,978,649.22 | 81,997,161.02 | |||||||||||
| Item | FY2022 | ||||||||||||||
| Equityattributabletoownersoftheparentcompany | Non-controllinginterest | Totalofowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplusreserves | Generalriskreserve | Undistributedprofit | Others | Subtotal | |||||
| Preferenceshares | Perpetualbond | Others | |||||||||||||
| currentperiod | |||||||||||||||
| 2.Usedincurrentperiod | 75,138,576.60 | 75,138,576.60 | 4,978,649.22 | 80,117,225.82 | |||||||||||
| (VI)Others | 0.00 | 0.00 | |||||||||||||
| IV.Closingbalanceofthecurrentperiod | 4,108,212,217.00 | 0.00 | 0.00 | 947,863,834.02 | 13,272,205,160.21 | 0.00 | -15,904,760.02 | 2,217,913.77 | 1,195,116,522.37 | 0.00 | -720,559,670.73 | 0.00 | 18,789,151,216.62 | 584,587,863.76 | 19,373,739,080.38 |
AmountinpriorperiodUnit:RMB
| Item | FY2021 | ||||||||||||||
| Equityattributabletoownersoftheparentcompany | Non-controllinginterest | Totalofowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplusreserves | Generalriskreserve | Undistributedprofit | Others | Subtotal | |||||
| Preferenceshares | Perpetualbond | Others | |||||||||||||
| I.Closingbalanceoftheprioryear | 3,875,371,532.00 | 0.00 | 0.00 | 1,146,290,662.42 | 12,343,209,847.29 | 0.00 | 0.00 | 300,412.14 | 961,105,529.85 | 0.00 | 2,692,018,405.40 | 21,018,296,389.10 | 532,388,405.68 | 21,550,684,794.78 | |
| Add:Changeofaccountingpolicies | 0.00 | 0.00 | |||||||||||||
| Correctionofprior-perioderrors | 0.00 | 0.00 | |||||||||||||
| Businessconsolidationundercommoncontrol | 0.00 | 0.00 | |||||||||||||
| Others | 0.00 | 0.00 | |||||||||||||
| II.Openingbalanceofthecurrentyear | 3,875,371,532.00 | 0.00 | 0.00 | 1,146,290,662.42 | 12,343,209,847.29 | 0.00 | 0.00 | 300,412.14 | 961,105,529.85 | 0.00 | 2,692,018,405.40 | 0.00 | 21,018,296,389.10 | 532,388,405.68 | 21,550,684,794.78 |
| III.Changesincurrentyear(“-” | 232,819,847.00 | 0.00 | 0.00 | -198,407,998.79 | 928,924,325.80 | 0.00 | 0.00 | 37,566.43 | 234,010,992.52 | 0.00 | 285,287,892.24 | 0.00 | 1,482,672,625.20 | 33,052,596.05 | 1,515,725,221.25 |
| Item | FY2021 | ||||||||||||||
| Equityattributabletoownersoftheparentcompany | Non-controllinginterest | Totalofowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplusreserves | Generalriskreserve | Undistributedprofit | Others | Subtotal | |||||
| Preferenceshares | Perpetualbond | Others | |||||||||||||
| fordecrease) | |||||||||||||||
| (I)Totalcomprehensiveincome | 2,500,582,902.58 | 2,500,582,902.58 | 33,052,596.05 | 2,533,635,498.63 | |||||||||||
| (II)Capitalincreaseanddecreasebyowners | 232,819,847.00 | 0.00 | 0.00 | -198,407,998.79 | 928,924,325.80 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 963,336,174.01 | 0.00 | 963,336,174.01 |
| 1.Commonshareinvestedbyshareholders | 0.00 | 0.00 | |||||||||||||
| 2.Capitalinputbytheholderofotherequityinstruments | 0.00 | 0.00 | |||||||||||||
| 3.Share-basedpaymentattributabletoshareholders’equity | 0.00 | 0.00 | |||||||||||||
| 4.Others | 232,819,847.00 | -198,407,998.79 | 928,924,325.80 | 963,336,174.01 | 963,336,174.01 | ||||||||||
| (III)Profitdistribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 234,010,992.52 | 0.00 | -2,215,295,010.34 | 0.00 | -1,981,284,017.82 | 0.00 | -1,981,284,017.82 |
| 1.Appropriationtosurplusreserves | 234,010,992.52 | -234,010,992.52 | 0.00 | 0.00 | |||||||||||
| 2.Appropriationtogeneralriskreserve | 0.00 | 0.00 | |||||||||||||
| 3.Profitdistributionto | -1,981,284,017.82 | -1,981,284,017.82 | -1,981,284,017.82 | ||||||||||||
| Item | FY2021 | ||||||||||||||
| Equityattributabletoownersoftheparentcompany | Non-controllinginterest | Totalofowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplusreserves | Generalriskreserve | Undistributedprofit | Others | Subtotal | |||||
| Preferenceshares | Perpetualbond | Others | |||||||||||||
| owners(orshareholders) | |||||||||||||||
| 4.Others | 0.00 | 0.00 | |||||||||||||
| (IV)Internaltransferofowners'equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1.Capitalreserveconvertedintocapital(orsharecapital) | 0.00 | 0.00 | |||||||||||||
| 2.Surplusreserveconvertedintocapital(orsharecapital) | 0.00 | 0.00 | |||||||||||||
| 3.Recoveroflossbysurplusreserve | 0.00 | 0.00 | |||||||||||||
| 4.Changesindefinedbenefitplanscarriedforwardtoretainedearnings | 0.00 | 0.00 | |||||||||||||
| 5.Othercomprehensiveincomecarriedforwardtoretainedearnings | 0.00 | 0.00 | |||||||||||||
| 6.Others | 0.00 | 0.00 | |||||||||||||
| (V)Specialreserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 37,566.43 | 0.00 | 0.00 | 0.00 | 0.00 | 37,566.43 | 0.00 | 37,566.43 |
| 1.Withdrawnincurrentperiod | 63,036,424.58 | 63,036,424.58 | 63,036,424.58 | ||||||||||||
| Item | FY2021 | ||||||||||||||
| Equityattributabletoownersoftheparentcompany | Non-controllinginterest | Totalofowners’equity | |||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplusreserves | Generalriskreserve | Undistributedprofit | Others | Subtotal | |||||
| Preferenceshares | Perpetualbond | Others | |||||||||||||
| 2.Usedincurrentperiod | 62,998,858.15 | 62,998,858.15 | 62,998,858.15 | ||||||||||||
| (VI)Others | 0.00 | 0.00 | |||||||||||||
| IV.Closingbalanceofthecurrentperiod | 4,108,191,379.00 | 0.00 | 0.00 | 947,882,663.63 | 13,272,134,173.09 | 0.00 | 0.00 | 337,978.57 | 1,195,116,522.37 | 0.00 | 2,977,306,297.64 | 0.00 | 22,500,969,014.30 | 565,441,001.73 | 23,066,410,016.03 |
8.Parentcompany'sstatementofchangesinowners'equity
AmountincurrentperiodUnit:RMB
| Item | FY2022 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplusreserves | Undistributedprofit | Others | Totalofowners’equity | |||
| Preferenceshares | Perpetualbond | Others | ||||||||||
| I.Closingbalanceoftheprioryear | 4,108,191,379.00 | 0.00 | 0.00 | 947,882,663.63 | 12,851,982,490.97 | 0.00 | 0.00 | 155,469.58 | 1,195,116,522.37 | 2,491,021,746.82 | 21,594,350,272.37 | |
| Add:Changeofaccountingpolicies | 0.00 | |||||||||||
| Correctionofprior-perioderrors | 0.00 | |||||||||||
| Others | 0.00 | |||||||||||
| II.Openingbalanceofthecurrentyear | 4,108,191,379.00 | 0.00 | 0.00 | 947,882,663.63 | 12,851,982,490.97 | 0.00 | 0.00 | 155,469.58 | 1,195,116,522.37 | 2,491,021,746.82 | 0.00 | 21,594,350,272.37 |
| III.Changesincurrentperiod(“-”fordecrease) | 20,838.00 | 0.00 | 0.00 | -18,829.61 | 70,987.12 | 0.00 | -15,904,760.02 | -97,257.43 | 0.00 | -3,787,355,431.49 | 0.00 | -3,803,284,453.43 |
| (I)Totalcomprehensiveincome | -15,904,760.02 | -1,320,017,707.26 | -1,335,922,467.28 | |||||||||
| (II)Capitalincreaseanddecreasebyowners | 20,838.00 | 0.00 | 0.00 | -18,829.61 | 70,987.12 | 0.00 | 0.00 | 0.00 | 0.00 | -2,422,896.83 | 0.00 | -2,349,901.32 |
| Item | FY2022 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplusreserves | Undistributedprofit | Others | Totalofowners’equity | |||
| Preferenceshares | Perpetualbond | Others | ||||||||||
| 1.Commonshareinvestedbyowners | 0.00 | |||||||||||
| 2.Capitalinputbytheholderofotherequityinstruments | 20,838.00 | -18,829.61 | 70,987.12 | 72,995.51 | ||||||||
| 3.Share-basedpaymentattributabletoowners’equity | 0.00 | |||||||||||
| 4.Others | 0.00 | 0.00 | -2,422,896.83 | -2,422,896.83 | ||||||||
| (III)Profitdistribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -2,464,914,827.40 | 0.00 | -2,464,914,827.40 |
| 1.Appropriationtosurplusreserves | 0.00 | |||||||||||
| 2.Profitdistributiontoowners(orshareholders) | -2,464,914,827.40 | -2,464,914,827.40 | ||||||||||
| 3.Others | 0.00 | |||||||||||
| (IV)Internaltransferofowners'equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1.Capitalreserveconvertedintocapital(orsharecapital) | 0.00 | |||||||||||
| 2.Surplusreserveconvertedintocapital(orsharecapital) | 0.00 | |||||||||||
| 3.Recoveroflossbysurplusreserve | 0.00 | |||||||||||
| 4.Changesindefinedbenefitplanscarriedforwardtoretainedearnings | 0.00 | |||||||||||
| 5.Othercomprehensiveincomecarriedforwardtoretainedearnings | 0.00 | |||||||||||
| 6.Others | 0.00 | |||||||||||
| (V)Specialreserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -97,257.43 | 0.00 | 0.00 | 0.00 | -97,257.43 |
| Item | FY2022 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplusreserves | Undistributedprofit | Others | Totalofowners’equity | |||
| Preferenceshares | Perpetualbond | Others | ||||||||||
| 1.Withdrawnincurrentperiod | 60,105,371.53 | 60,105,371.53 | ||||||||||
| 2.Usedincurrentperiod | 60,202,628.96 | 60,202,628.96 | ||||||||||
| (VI)Others | 0.00 | |||||||||||
| IV.Closingbalanceofthecurrentperiod | 4,108,212,217.00 | 0.00 | 0.00 | 947,863,834.02 | 12,852,053,478.09 | 0.00 | -15,904,760.02 | 58,212.15 | 1,195,116,522.37 | -1,296,333,684.67 | 0.00 | 17,791,065,818.94 |
AmountinpriorperiodUnit:RMB
| Item | FY2021 | |||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplusreserves | Undistributedprofit | Others | Totalofowners’equity | |||
| Preferenceshares | Perpetualbond | Others | ||||||||||
| I.Closingbalanceoftheprioryear | 3,875,371,532.00 | 0.00 | 0.00 | 1,146,290,662.42 | 11,923,058,165.17 | 0.00 | 0.00 | 120,972.62 | 961,105,529.85 | 2,366,206,832.00 | 20,272,153,694.06 | |
| Add:Changeofaccountingpolicies | 0.00 | |||||||||||
| Correctionofprior-perioderrors | 0.00 | |||||||||||
| Others | 0.00 | |||||||||||
| II.Openingbalanceofthecurrentyear | 3,875,371,532.00 | 0.00 | 0.00 | 1,146,290,662.42 | 11,923,058,165.17 | 0.00 | 0.00 | 120,972.62 | 961,105,529.85 | 2,366,206,832.00 | 0.00 | 20,272,153,694.06 |
| III.Changesincurrentperiod(“-”fordecrease) | 232,819,847.00 | 0.00 | 0.00 | -198,407,998.79 | 928,924,325.80 | 0.00 | 0.00 | 34,496.96 | 234,010,992.52 | 124,814,914.82 | 0.00 | 1,322,196,578.31 |
| (I)Totalcomprehensiveincome | 2,340,109,925.16 | 2,340,109,925.16 | ||||||||||
| (II)Capitalincreaseanddecreasebyowners | 232,819,847.00 | 0.00 | 0.00 | -198,407,998.79 | 928,924,325.80 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 963,336,174.01 |
| 1.Commonshareinvestedbyowners | 0.00 | |||||||||||
| 2.Capitalinputbytheholderofotherequityinstruments | 0.00 | |||||||||||
| 3.Share-basedpaymentattributabletoowners’equity | 0.00 | |||||||||||
| 4.Others | 232,819,847.00 | -198,407,998.79 | 928,924,325.80 | 963,336,174.01 | ||||||||
| (III)Profitdistribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 234,010,992.52 | -2,215,295,010.34 | 0.00 | -1,981,284,017.82 |
| 1.Appropriationtosurplusreserves | 234,010,992.52 | -234,010,992.52 | 0.00 | |||||||||
| 2.Profitdistributiontoowners(orshareholders) | -1,981,284,017.82 | -1,981,284,017.82 | ||||||||||
| 3.Others | 0.00 | |||||||||||
| (IV)Internaltransferofowners'equity | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 1.Capitalreserveconvertedintocapital(orsharecapital) | 0.00 | |||||||||||
| 2.Surplusreserveconvertedintocapital(orsharecapital) | 0.00 | |||||||||||
| 3.Recoveroflossbysurplusreserve | 0.00 | |||||||||||
| 4.Changesindefinedbenefitplanscarriedforwardtoretainedearnings | 0.00 | |||||||||||
| 5.Othercomprehensiveincomecarriedforwardtoretainedearnings | 0.00 | |||||||||||
| 6.Others | 0.00 | |||||||||||
| (V)Specialreserves | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 34,496.96 | 0.00 | 0.00 | 0.00 | 34,496.96 |
| 1.Withdrawnincurrentperiod | 43,962,017.71 | 43,962,017.71 | ||||||||||
| 2.Usedincurrentperiod | 43,927,520.75 | 43,927,520.75 | ||||||||||
| (VI)Others | 0.00 |
| IV.Closingbalanceofthecurrentperiod | 4,108,191,379.00 | 0.00 | 0.00 | 947,882,663.63 | 12,851,982,490.97 | 0.00 | 0.00 | 155,469.58 | 1,195,116,522.37 | 2,491,021,746.82 | 0.00 | 21,594,350,272.37 |
III.BasicinformationoftheCompanyBengangSteelPlatesCo.,Ltd.(hereinafterreferredtoas“BengangSteelPlates”or“theCompany”),asapprovedinLiao-Zheng(1997)No.57byLiaoningPeople’sGovernmentonMarch27
th,1997,wasincorporatedasajointstocklimitedcompanythroughpublicshareofferofdomesticlistedforeigncurrencydenominatedshares(Bshares)inthePeople’sRepublicofChina(the“PRC”)onJune27
th,1997byBenxiSteel&Iron(Group)Co.,Ltd.(“BenxiIronandSteelGroup”),throughreorganizationofoperations,assetsandliabilitiesofitsplants,namely,SteelSmeltingPlant,PrimaryRollingPlantandContinuousHotRollingPlant.AsapprovedbyChinaSecuritiesRegulatoryCommission(hereinafterreferredtoas“theCSRC”),theCompanyissued400,000,000B-sharesatHKD2.38eachonShenzhenStockExchangeonJune10
th,1997.OnNovember3
rd,1997,theCompanyissuedanother120,000,000A-shares(RenminbiCommonShares)atRMB5.40eachandlistedonShenzhenStockExchangesinceJanuary15
th
,1998.Thecapitalsharestotalled1,136,000,000shares.OnMarch14
th
,2006,accordingtotheresolutionsoftheShareholders’Meetingregardingshareequityrelocation,theShareEquityRelocationScheme,ResponsetoBengangSteelPlatesCo.,Ltd.aboutShareEquityRelocationissuedbyLiaoningProvincialGovernmentState-ownedAssetAdministrativeCommittee(hereinafterreferredtoastheLiaoningSASAC),BenxiIronandSteelGroup–theonlyholderofnon-negotiablestate-ownedlegalpersonsharespaidtheconsiderationtothecurrentshareholderstoobtainthecurrentoptionforthe40,800,000sharesofthetotal616,000,000sharesitwasholding.ShareholdingpositionshavebeenregisteredwithChinaSecuritiesDepository&ClearingCorporationLtd.ShenzhenOffice.However,thetotalamountofcapitalsharesofBengangSteelPlatesCo.,Ltd.wasnotchangedthroughtheshareequityrelocationaction.Accordingtotheapprovaldocument“Zheng-Jian-Gong-Si-Zi[2006]No.126”byChinaSecuritiesRegulatoryCommissiononJune30
th
,2006,theCompanywasapprovedtoplace2billionRenminbicommonshares,particularlytoBenxiIronandSteelGroupandtheproceedswouldbeusedtopurchasetherelatedassetsoftheBenxiIronandSteelGroup.Onthesameday,BenxiIronandSteelGroupreceivedcircularZheng-Jian-Gong-Si-Zi[2006]No.127issuedbyChinaSecuritiesRegulatoryCommittee,Onthesameday,BenxiIronandSteelGroupobtainedthedocument"ZhengJianCompanyZi(2006)No.127"issuedbytheChinaSecuritiesRegulatoryCommission,whichagreedtoexemptBenxiIronandSteelGroupfromtheacquisitionof2billionnewsharesissuedbytheCompany,resultinginthenumberofsharesheldbytheCompanyreaching2.5752billionshares(accountingfortheCompany's82.12%ofthetotalsharecapital)tofulfillthetenderofferobligation.OnAugust28
th
,2006,asapprovedbyChinaSecuritiesDepository&ClearingCorporationLtd.ShenzhenOffice,theregistrationandconditionalplacingproceduresofthe2billionnewshareswerecompleted.OnSeptember28
th,2006,thelistingprocedureofthenewsharesofBengangSteelPlatesinthisnon-publicofferingwasapprovedbyShenzhenStockExchange.Theissuepriceofnewshares:RMB4.6733pershare.ApprovedbytheChinaSecuritiesRegulatoryCommission[2017]No.1476,BengangSteelPlatesCo.,Ltd.privatelyplacednomorethan739,371,534RMBordinaryshares(Ashares)tonomorethan10issuers.Thenon-publicofferingwascompletedonFebruary9
th,2018,and739,371,532shareswereactuallyissued.TheplacingpricewasRMB5.41pershare.
OnAugust20
th,2021,LiaoningProvincialState-ownedAssetsSupervisionandAdministrationCommission(hereinafterreferredtoastheLiaoningSASAC)andAnsteelGroupCo.,Ltd.(hereinafterreferredtoasAnsteelGroup)signedthe"LiaoningProvincialPeople'sGovernmentState-ownedAssetsSupervisionandAdministrationCommissionandAnsteelGroupCo.,Ltd.onFreeTransferAgreementontheState-ownedEquityofBengangGroupCo.,Ltd.Accordingtotheagreement,LiaoningState-ownedAssetsSupervisionandAdministrationCommissionwilltransferits51%sharesofBengangGroupCo.,Ltd.(hereinafterreferredtoasBengangGroup)toAngangGroupforfree.Afterthecompletionofthefreetransfer,AnsteelGroupwillbecomethecontrollingshareholderofBengangGroup,andAnsteelGroupwillhold81.07%ofthetotalsharecapitalofBengangGroupCo.,Ltd.indirectly.AsatDecember31
st
,2022,thecapitalsharestotalled4,108,212,217shares.TheCompany’suniformsocialcreditcode:91210000242690243E.TheCompany’sregisteredaddress:16RenminRoad,PingshanDistrict,Benxi,LiaoningProvince.TheCompany’slegalrepresentative:HuoGang.TheparentcompanyofBengangSteelPlatesCo.,LtdisBenxiSteel&Iron(Group)Co.,Ltd.andtheactualcontrollerisAnsteelGroupCo.,Ltd.BengangSteelPlatesCo.,Ltd.belongstotheferrousmetalsmeltingandrollingprocessingindustryandismainlyinvolvedinproducingandtradingofferrousmetalproducts.AsatDecember31
st
,2022,therewereninesubsidiarieswithinthescopeoftheCompany'sconsolidatedfinancialstatements,asdetailedbelow:
| Subsidiaryname |
| GuangzhouBenxiIronandSteelTradeCo.,Ltd. |
| ShanghaiBengangMetallurgyTechnologyCo.,Ltd. |
| DalianBenruitongAUTOMATERIALSTechnologyCo.,Ltd. |
| ChangchunBengangIron&SteelSalesCo.,Ltd. |
| YantaiBenxiSteelSalesCo.,Ltd. |
| TianjinBenxiIronandSteelTradeCo.,Ltd. |
| BXSteelPoscoColdRolledSheetCo.,Ltd. |
| BenxiBengangSteelSalesCo.,Ltd. |
| ShenyangBengangMetallurgicalTechnologyCo.,Ltd. |
Thenumberofentitiesincludedinthescopeofconsolidatedfinancialstatementsfortheyeardecreasedby6ascomparedtothepreviousyear.Fordetailsofthechangeinthescopeofconsolidation,pleaserefertoNote"VIII.Changesinthescopeofconsolidation”.FordetailsoftheCompany'ssubsidiaries,pleaserefertoNote"IX.Equityinotherentities".
IV.Basisofpreparation
1.BasisofpreparationTheCompany'sfinancialstatementshavebeenpreparedonagoingconcernbasis,basedonactualtransactionsandevents,inaccordancewiththeAccountingStandardsforBusinessEnterprisesissuedby
theMinistryofFinanceandrelatedregulations,andbasedontheaccountingpoliciesandestimatesdescribedin
Note"IV.Significantaccountingpoliciesandaccountingestimates".
2.GoingconcernTheCompanyisoperatingnormallyandinagoodconditionandthushasthecapabilitytocontinuetooperateinthenexttwelvemonthsfromtheendofthereportingperiod.V.Significantaccountingpoliciesandaccountingestimates
Noticeofspecificaccountingpoliciesandaccountingestimates:ThespecificaccountingpoliciesandaccountingestimatesformulatedbytheCompanybasedonactualproductionandoperationcharacteristicsincludeoperatingcycle,recognitionandmeasurementofallowanceforbaddebtsofreceivables,measurementofinventoriesissued,classificationoffixedassetsanddepreciationmethods,amortizationofintangibleassets,conditionsforcapitalizationofresearchanddevelopmentexpenses,andrecognitionandmeasurementofrevenue.
1.StatementofcompliancewithChinaAccountingStandardsforBusinessEnterprisesThefinancialstatementspreparedbytheCompanycomplywiththerequirementsofAccountingStandardsforBusinessEnterprisesandgiveatrueandcompletepictureofthefinancialposition,operatingresultsandcashflowsoftheCompany.
2.Accountingyear
TheAccountingyearisfromJanuary1
sttoDecember31
st.
3.OperatingperiodTheoperatingperiodistwelvemonths.
4.FunctionalcurrencyTheCompany’sfunctionalcurrencyisRMB.
5.TheaccountingtreatmentforBusinesscombinationsunder/notundercommoncontrolBusinesscombinationundercommoncontrol:TheassetsandliabilitiesthattheCompanyacquiredinabusinesscombinationshallbemeasuredonthebasisoftheircarryingamountofacquiree’sassets,liabilities(aswellasthegoodwillarisingfromthebusinesscombination)intheconsolidatedfinancialstatementoftheultimatecontrolleronthecombiningdate.AsforthebalancebetweenthecarryingamountofthenetassetsobtainedbytheCompanyandthecarryingamountoftheconsiderationpaidbyit(orthetotalparvalueofthesharesissued),thecapitalreserveneedstobeadjusted.Ifthecapitalreserveisnotsufficient,anyexcessshallbeadjustedagainstretainedearnings.
Businesscombinationnotundercommoncontrol:TheCompanyshall,ontheacquisitiondate,measure
theassetsgivenandliabilitiesincurredorassumedbyanenterpriseforabusinesscombinationinlightoftheirfairvalues,andshallrecordthebalancesbetweenthemandtheircarryingamountsintotheprofitsandlossesatthecurrentperiod.TheCompanyshallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeasgoodwill.TheCompanyshalltreatthenegativebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeintotheprofitsandlossesofthecurrentperiod.Theintermediarycostsandrelevantfeesforthebusinesscombinationpaidbytheacquirer,includingtheexpensesforaudit,assessmentandlegalservices,shallberecordedintotheprofitsandlossesatthecurrentperiod.Thetransactionexpensesfortheissuanceofequitysecuritiesforthebusinesscombinationshallberecordedintotheinitialrecognitionamountofequitysecurities.
6.Consolidationoffinancialstatements
(1)ScopeofconsolidationThescopeofconsolidationofconsolidatedfinancialstatementsisdeterminedbasedoncontrol.Allthesubsidies(includingseparablesectionsoftheinvesteescontrolledbytheCompany)havebeenconsolidatedintothescopeofconsolidationforthisperiodended.
(2)ProcedureofconsolidationTheconsolidatedfinancialstatementsshallbepresentedbytheparentbasedonthefinancialstatementsoftheparentanditssubsidiariesandusingotherrelatedinformation.Whenpreparingconsolidatedfinancialstatements,theparentshallconsidertheentiregroupasanaccountingentity,adoptuniformaccountingpoliciesandapplytherequirementsofAccountingStandardsforBusinessEnterprisesrelatedtorecognition,measurementandpresentation.Theconsolidatedfinancialstatementsshallreflecttheoverallfinancialposition,operatingresultsandcashflowsofthegroup.TheaccountingpolicyandaccountingperiodofthesubsidiarieswithintheconsolidationscopeshallbeinaccordancewiththoseoftheCompany.Ifnot,itisnecessarytomaketheadjustmentaccordingtotheCompany’saccountingpoliciesandaccountingperiodwhenpreparingtheconsolidatedfinancialstatements.Forsubsidiariesthroughacquisitionthatarenowundercommoncontrol,thefinancialstatementsareadjustedaccordingtothefairvalueofidentifiablenetassetsontheacquisitiondate.Forsubsidiariesthroughacquisitionthatareundercommoncontrol,theassets,andliabilities(aswellasthegoodwillarisingfrompurchasingthesubsidiarybytheultimatecontroller)areadjustedaccordingtothebookvalueofnetassetsinthefinancialstatementsoftheultimatecontroller.Theowners’interests,profitorloss,andcomprehensiveincomeofthesubsidiaryattributabletothenon-controllingshareholdersshallbepresentedseparatelyintheshareholders’equityoftheconsolidatedbalancesheetandundertheitemofnetprofitoftheconsolidatedstatementofcomprehensiveincomeandundertheitemoftotalcomprehensiveincome.Wherelossesassumedbytheminorityexceedtheminority’sinterestsinthebeginningequityofasubsidiary,theexcessshallbechargedagainsttheminority’sinterests.
1)Increasingnewsubsidiariesandbusinesses
IftheCompanyhasanewsubsidiaryduetoabusinesscombinationundercommoncontrolduringthereportingperiod,itshalladjustthebeginningbalanceintheconsolidatedstatementoffinancialpositionwhenpreparingtheconsolidatedstatementoffinancialposition.Therevenue,expensesandprofitsofthesubsidiariesfromtheacquisitiondatetotheendofthereportingperiodareincludedintheCompany’sconsolidatedstatementofcomprehensiveincome.ThecashflowofthesubsidiariesfromtheacquisitiondatetotheendofthereportingperiodisincludedintheCompany’sconsolidatedstatementofcashflows.Andmeanwhile,theCompanyshalladjusttherelevantitemsofthecomparativefinancialstatementsasifthereportingentityforthepurposeofconsolidationhasbeeninexistencesincethedatetheultimatecontrollingpartyfirstobtainedcontrol.WhentheCompanybecomescapableofexercisingcontroloveraninvesteeundercommoncontrolduetoadditionalinvestmentorotherreasons,adjustmentshallbemadeasifthereportingentityafterthecombinationhasbeeninexistencesincethedatetheultimatecontrollingpartyfirstobtainedcontrol.Theinvestmentincomerecognizedbetweenthedateofpreviouslyobtainingequityinvestmentandthedatetheacquireeandacquirerareundercommoncontrol,whichislater,andthecombiningdate,othercomprehensiveincomeandotherchangesofnetassetsarisingfromtheequityinvestmentpreviouslyheldbeforeobtainingthecontroltheacquireeshallbeadjustedagainstthepriorretainedearningsofthecomparativefinancialstatementsandthecurrentprofitorlossrespectively.Ifitisnowundercommoncontrol,theCompanyshallnotadjustthebeginningbalanceintheconsolidatedstatementoffinancialpositionwhenpreparingtheconsolidatedstatementoffinancialposition.Therevenue,expensesandprofitsofthesubsidiariesfromtheacquisitiondatetotheendofthereportingperiodareincludedintheparentcompany’sconsolidatedstatementofcomprehensiveincome.ThecashflowofthesubsidiariesfromtheacquisitiondatetotheendofthereportingperiodisincludedintheCompany’sconsolidatedstatementofcashflows.WhentheCompanybecomescapableofexercisingcontroloveraninvesteenowundercommoncontrolduetoadditionalinvestmentorotherreasons,theacquirershallremeasureitspreviouslyheldequityinterestintheacquireetoitsfairvalueattheacquisitiondate.Thedifferencebetweenthefairvalueandthecarryingamountshallberecognizedasinvestmentincomefortheperiodwhentheacquisitiontakesplace.Whenthepreviously-heldequityinvestmentisaccountedforundertheequitymethod,anyothercomprehensiveincomepreviouslyrecognizedinrelationtotheacquiree’sequitychangesshallbetransferredtoprofitorlossforthecurrentperiodwhentheacquisitiontakesplace.Othercomprehensiveincomearisingfromtheremeasurementofthedefinedbenefitplanisexcluded.
2)Disposingsubsidiariesorbusinesses
①GeneraltreatmentIftheCompanydisposesofasubsidiaryduringthereportingperiod,therevenue,expensesandprofitsofthesubsidiaryfromthebeginningofthereportingperiodtothedisposaldateareincludedintheCompany’sconsolidatedstatementofcomprehensiveincome.ThecashflowofthesubsidiariesfromthebeginningofthereportingperiodtothedisposaldateisincludedintheCompany’sconsolidatedstatementofcashflows.WhentheCompanylosescontroloveraninvesteeduetopartialdisposalorotherreasons,theacquirershallre-measuretheremainingequityinterestsintheacquireetoitsfairvalueattheacquisitiondate.
Thedifference,betweensumsoftheconsiderationreceivedforthedisposalofequitysharesandfairvalueoftheremainingshares,andsumsofshareofnetassetsofthesubsidiarycalculatedcontinuouslyfromtheacquisitiondateorthecombinationdatebasedonthepreviousshareholdingproportionandgoodwillshallberecognizedasinvestmentincomefortheperiodwhentheCompanylosescontroloveracquiree.Whenthepreviously-heldequityinvestmentisaccountedforundertheequitymethod,anyothercomprehensiveincomepreviouslyrecognizedinrelationtotheacquiree’sequitychanges,andotherequitychangesratherthanchangesfromnetprofit,othercomprehensiveincomeandprofitdistribution,shallbetransferredtoinvestmentincomeforthecurrentperiodwhentheCompanylosescontroloveracquiree.Othercomprehensiveincomearisingfromre-measurementofthedefinedbenefitplanisexcluded.WhentheCompanylosescontroloverasubsidiaryduetotheincreaseofcapitalfromotherinvestorsandthustheshareholdingratiooftheCompanydeclines,accountingtreatmentshallbeinaccordancewiththeabove-mentionedprinciples.
②DisposingsubsidiariesbymultipletransactionsWheretheCompanylosescontrolofasubsidiaryinmultipletransactionsinwhichitdisposesofitssubsidiaryinstages,indeterminingwhethertoaccountforthemultipletransactionsasasingletransaction,theCompanyshallconsiderallofthetermsandconditionsofthetransactionsandtheireconomiceffects.OneormoreofthefollowingmayindicatethattheCompanyshallaccountforthemultiplearrangementsasasingletransaction:
(a)Arrangementsareenteredintoatthesametimeorincontemplationofeachother;(b)Arrangementsworktogethertoachieveanoverallcommercialeffect;(c)Theoccurrenceofonearrangementisdependentontheoccurrenceofatleastoneotherarrangement;and(d)Onearrangementconsideredonitsownisnoteconomicallyjustified,butitiseconomicallyjustifiedwhenconsideredtogetherwithotherarrangements.Ifeachofthemultipletransactionsformspartofabundledtransactionwhicheventuallyresultsinlossofcontrolofthesubsidiary,thesemultipletransactionsshallbeaccountedforasasingletransaction.Intheconsolidatedfinancialstatements,thedifferencebetweentheconsiderationreceivedandthecorrespondingproportionofthesubsidiary’snetassetsineachtransactionpriortothelossofcontrolshallberecognizedinothercomprehensiveincomeandtransferredtotheprofitorlosswhentheCompanyeventuallylosescontrolofthesubsidiary.Ifeachofthemultipletransactionswhicheventuallyresultsinlossofcontrolofthesubsidiarydoesnotformpartofabundledtransaction,applythetreatmentofdisposingofpartiallong-termequityinvestmentsinasubsidiarywithoutlossofcontrolpriortothelossofcontrol.Afterthelossofcontrol,applythetreatmentofdisposingofthesubsidiaryincommoncases.
(3)Acquiringthesubsidiaries’equityinterestheldbynon-controllingshareholders
WheretheCompanyhasacquiredasubsidiary’sequityinterestheldbynon-controllingshareholders,thedifferencebetweentheincreaseinthecostoflong-terminvestmentsasaresultoftheacquisitionofnon-controllinginterestsandtheshareofnetassetsofthesubsidiarycalculatedcontinuouslyfromtheacquisitiondateorthecombinationdatebasedonthenewshareholdingproportionshallbeadjustedtothecapitalreserve(capitalpremiumorsharepremium)intheconsolidatedfinancialstatements.Ifthebalanceofthecapitalreserveisnotsufficient,anyexcessshallbeadjustedagainstretainedearnings.
(4)DisposingportionofequityinvestmentsinsubsidiarieswithoutlosingcontrolWhentheCompanydisposesofaportionofthelong-termequityinvestmentsinasubsidiarywithoutlossofcontrol,thedifferencebetweentheamountoftheconsiderationreceivedandthecorrespondingportionofthenetassetsofthesubsidiarycalculatedcontinuouslyfromtheacquisitiondateorthecombinationdaterelatedtothedisposalofthelong-termequityinvestmentsshallbeadjustedtothecapitalreserve(capitalpremiumorsharepremium)intheconsolidatedfinancialstatements.Ifthebalanceofthecapitalreserveisnotsufficient,anyexcessshallbeadjustedagainstretainedearnings.
7.Classificationofjointventurearrangementsandaccountingtreatment
Jointventurearrangementsaredividedintojointoperationsandjointventures.WhentheCompanyisajointventurepartyofajointventurearrangementandhastheassetsrelatedtothearrangementandassumestheliabilitiesrelatedtothearrangement,itisajointoperation.TheCompanyconfirmsthefollowingitemsrelatedtotheshareofinterestinthejointoperationandperformsaccountingtreatmentinaccordancewiththerelevantenterpriseaccountingstandards:
a.ConfirmtheassetsheldbytheCompanyseparately,andconfirmtheassetsheldjointlybytheCompany'sshare;b.RecognizetheliabilitiesassumedbytheCompanyseparatelyandtheliabilitiesjointlyassumedbytheCompany'sshare;c.RecognizetheincomegeneratedbythesaleoftheCompany’sshareofcommonoperatingoutput;d.RecognizetherevenuegeneratedfromthesaleofjointoperationsbasedontheCompany'sshare;e.ConfirmtheexpensesincurredseparatelyandtheexpensesincurredinthejointoperationaccordingtotheCompany'sshare.
8.CriteriafordeterminingcashandcashequivalentsTheterm“cash”referstothecashonhandandtheunrestricteddeposit.Andtheterm“cashequivalents”referstoshort-term(maturingwithinthreemonthsfromacquisition)andhighlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangeinvalue.
9.Foreigncurrencytransactionandtranslationofforeigncurrencyfinancialstatements
(1)ForeigncurrencytransactionForeigncurrencytransactionsaretranslatedintoRMBatthecurrentrateonthedayoftransactions.Theforeigncurrencymonetaryitemsshallbetranslatedatthespotexchangerateonthebalancesheetdate.Thebalanceofexchangearisingfromthedifferencebetweenthespotexchangerateonthebalancesheetdateandthespotexchangerateatthetimeofinitialrecognitionorpriortothebalancesheetdate,exceptthosearisingfromtheraisingofspecialforeigndebtforthepurchaseorconstructionofcapitalizableassetsthusshallbecapitalizedaccordingtotheborrowingcostscapitalizationprinciple,shallberecordedintotheprofitsandlossesatthecurrentperiod.
(2)TranslationofforeigncurrencyfinancialstatementsTheassetandliabilityitemsinthestatementoffinancialpositionshallbetranslatedataspotexchangerateonthebalancesheetdate.Amongtheowner'sequityitems,excepttheonesas"undistributedprofits",othersshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Theincomeandexpenseitemsintheincomestatementshallbetranslatedusinganexchangeratethatisdeterminedinasystematicandreasonablemannerandapproximatesthespotexchangerateonthetransactiondate.Whendisposingofanoverseasbusiness,theCompanyshallshiftthebalance,whichispresentedundertheitemsoftheowner'sequitiesinthestatementoffinancialpositionandarisesfromthetranslationofforeigncurrencyfinancialstatementsrelatedtothisoverseabusiness,intothedisposalprofitsandlossesofthecurrentperiod.
10.FinancialinstrumentsFinancialinstrumentsincludefinancialassets,financialliabilitiesandequityinstruments.
(1)ClassificationoffinancialinstrumentsTheCompanyshallclassifyfinancialassetsonthebasisofboththeentity’sbusinessmodelformanagingthefinancialassetsandthecontractualcashflowcharacteristicsofthefinancialassetas:financialassetsmeasuredatamortizedcost,financialassetsmeasuredatfairvaluethroughothercomprehensiveincomeandfinancialassetsmeasuredatfairvaluethroughprofitorlossatinitialmeasurement.Afinancialassetshallbemeasuredatamortizedcostifbothofthefollowingconditionsaremet.Thefinancialassetisheldwithinabusinessmodelwhoseobjectiveistoholdfinancialassetsinordertocollectcontractualcashflowsandthecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Afinancialassetshallbemeasuredatfairvaluethroughothercomprehensiveincomeifbothofthefollowingconditionsaremet.Thefinancialassetisheldwithinabusinessmodelwhoseobjectiveisachievedbybothcollectingcontractualcashflowsandsellingfinancialassetsandthecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.
TheCompanymaymakeanelectionatinitialrecognitionfornon-tradingequityinstrumentinvestmentswhetheritisdesignatedasafinancialasset(equityinstrument)thatismeasuredatfairvaluethroughothercomprehensiveincome.Thedesignationismadeonthebasisofasingleinvestment,andtherelatedinvestmentmeetsthedefinitionofanequityinstrumentfromtheissuer'sperspective.Otherfinancialassetsotherthantheseareclassifiedasfinancialassetsmeasuredatfairvaluethroughprofitorloss.Attheinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,financialassetsthatshouldbeclassifiedasmeasuredatamortizedvalueorfinancialassetsmeasuredatfairvaluethroughothercomprehensiveincomecanbedesignatedasfinancialassetsmeasuredatfairvaluethroughprofitorloss.TheCompanyshallclassifyfinancialliabilitiesasfinancialliabilitiesmeasuredatamortizedcostandfinancialliabilitiesmeasuredatfairvaluethroughprofitorlossatinitialmeasurement.Intheinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,financialassetscanbedesignatedasfinancialassetsmeasuredatfairvalueandtheirchangesincludedinthecurrentprofitandloss.Accordingtotheaboveconditions,theCompanydoesnothavesuchdesignatedfinancialassets.TheCompanymay,atinitialrecognition,designateafinancialliabilityasmeasuredatfairvaluethroughprofitorlossbecauseeither:
(a)iteliminatesorsignificantlyreducesanaccountingmismatch;(b)agroupoffinancialliabilitiesorfinancialassetsandfinancialliabilitiesismanagedanditsperformanceisevaluatedonafairvaluebasis,inaccordancewithadocumentedriskmanagementorinvestmentstrategy,andinformationaboutthegroupisprovidedinternallyonthatbasistotheentity’skeymanagementpersonnel;(c)thefinancialliabilitycontainsembeddedderivativesthatneedtobeseparated.
(2)Recognitionandmeasurementoffinancialinstruments
1)FinancialassetsmeasuredatamortizedcostFinancialassetsmeasuredatamortizedcostincludenotesreceivables,accountsreceivables,otherreceivables,long-termreceivables,debtinvestments,etc.Atinitialrecognition,theCompanyshallmeasureafinancialassetatitsfairvalueplusorminustransactioncoststhataredirectlyattributabletotheacquisitionorissueofthefinancialasset.TheCompanyshallmeasureaccountreceivablesattheirtransactionpriceiftheaccountreceivablesdonotcontainasignificantfinancingcomponentandaccountreceivablesthattheCompanyhasdecidednottoconsiderforafinancingcomponentofnomorethanoneyear.Interestscalculatedbyusingtheeffectiveinterestmethodduringtheholdingperiodshallberecognizedinprofitorloss.Whenrecoveringordisposingofthereceivables,thedifferencebetweenthepriceobtainedandthecarryingvalueshallberecognizedincurrentprofitorloss.
2)Financialassetsmeasuredatfairvaluethroughothercomprehensiveincome(debtinstruments)Financialassetsmeasuredatfairvaluethroughothercomprehensiveincome(debtinstruments)include
receivablesfinancing,otherdebtinvestments,etc.Atinitialrecognition,theCompanyshallmeasureafinancialassetatitsfairvalueplustransactioncoststhataredirectlyattributabletotheacquisitionorissuanceofthefinancialasset.Thefinancialassetsaresubsequentlymeasuredatfairvalue.Changesinfairvalueareincludedinothercomprehensiveincomeexceptforinterestcalculatedusingtheeffectiveinterestmethod,impairmentlossesorgainsandexchangegainsandlosses.Whenthefinancialassetsarederecognized,theaccumulatedgainorlosspreviouslyrecognizedinothercomprehensiveincomeistransferredfromothercomprehensiveincomeandrecognizedinprofitorloss.
3)Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments)Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments).includeotherequityinstrumentinvestments,etc.Atinitialrecognition,theCompanyshallmeasureafinancialassetatitsfairvalueplustransactioncoststhataredirectlyattributabletotheacquisitionorissueofthefinancialasset.Thefinancialassetsaresubsequentlymeasuredatfairvalue.Changesinfairvalueareincludedinothercomprehensiveincome.Thedividendsobtainedarerecognizedinprofitandloss.Whenthefinancialassetsarederecognized,theaccumulatedgainorlosspreviously.recognizedinothercomprehensiveincomeistransferredfromothercomprehensiveincomeandrecognizedinretainedearnings.
4)FinancialassetsatfairvaluethroughprofitorlossFinancialassetsatfairvaluethroughprofitorlossincludetransactionalfinancialassets,derivativefinancialassets,othernon-currentfinancialassets,etc.TheCompanyshallmeasurethefinancialassetsatfairvalueatinitialrecognition.Transactioncostsarerecognizedinprofitorloss.Changesinfairvalueareincludedinprofitorloss.Whenthefinancialassetsarederecognized,thedifferencebetweenthefairvalueandthe.initiallyrecordedamountisrecognizedasinvestmentincome,andthegainsandlossesfromchangesinfairvalueareadjusted.
5)FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludecurrentfinancialliabilities,derivativefinancialliabilities,etc.TheCompanyshallmeasurethefinancialassetsatfairvalueatinitialrecognition.Transactioncostsarerecognizedinprofitorloss.Changesinfairvalueareincludedinprofitorloss.Whenthefinancialliabilitiesarederecognized,thedifferencebetweenthefairvalueandthe.initiallyrecordedamountisrecognizedasinvestmentincome,andthegainsandlossesfromchangesinfairvalueareadjusted.
6)FinancialliabilitiesmeasuredatamortizedcostFinancialliabilitiesmeasuredatamortizedcostincludeshort-termborrowings,notespayables,accountspayables,otherpayables,long-termborrowings,bondspayables,andlong-termpayables.
Atinitialrecognition,theCompanyshallmeasureafinancialliabilityatitsfairvalueplustransactioncoststhataredirectlyattributabletotheacquisitionorissueofthefinancialasset.Interestscalculatedbyusingtheeffectiveinterestmethodduringtheholdingperiodshallberecognizedinprofitorloss.Whenthefinancialliabilitiesarederecognized,thedifferencebetweenthepriceobtainedandthecarryingvalueshallberecognizedinprofitandloss.
(3)TerminationofrecognitionoffinancialassetsandfinancialassetstransferWhenoneofthefollowingconditionsismet,theCompanyterminatestherecognitionoffinancialassets.-Terminationofcontractualrightstoreceivecashflowsfromfinancialassets;-Thefinancialassetshavebeentransferred,andalmostalltherisksandrewardsintheownershipofthefinancialassetshavebeentransferredtothetransferee;-Thefinancialassetshavebeentransferred.AlthoughtheCompanyhasneithertransferrednorretainedalmostalltherisksandrewardsoftheownershipofthefinancialassets,ithasnotretainedcontrolofthefinancialassets.Ifitretainednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itshallnotstoprecognizingthefinancialasset.TojudgewhetherthetransferofafinancialassetcansatisfytheconditionsasprescribedintheseStandardsforstoppingtherecognitionofafinancialasset,theCompanyshallfollowtheprincipleofsubstanceoverform.Transferofanentirefinancialassetcanbedividedintopartialfinancialassetstransferandentirefinancialassettransfer.Ifthetransferofanentirefinancialassetsatisfiestheconditionsforde-recognition,thedifferencebetweentheamountsofthefollowing2itemsshallberecordedintheprofitsandlossesofthecurrentperiod:
1)Thebookvalueofthetransferredfinancialasset;and
2)Thesumoftheconsiderationreceivedfromthetransfer,andtheaccumulativeamountofthechangesofthefairvalueoriginallyrecordedintheowners'equities(intheeventthatthefinancialassetinvolvedinthetransferisafinancialassetAvailable-for-sale).Ifthetransferofpartialfinancialassetsatisfiestheconditionstoderecognize,theentirebookvalueofthetransferredfinancialassetshall,betweentheportionwhoserecognitionhasbeenstoppedandtheportionwhoserecognitionhasnotbeenstopped(undersuchcircumstance,theserviceassetretainedshallbedeemedasaportionofthefinancialassetwhoserecognitionhasnotbeenstopped),beapportionedaccordingtotheirrespectiverelativefairvalue,andthedifferencebetweentheamountsofthefollowing2itemsshallbeincludedintotheprofitsandlossesofthecurrentperiod:
1)Thebookvalueoftheportionwhoserecognitionhasbeenstopped;and
2)Thesumofconsiderationoftheportionwhoserecognitionhasbeenstoppedandtheportionoftheaccumulativeamountofthechangesinthefairvalueoriginallyrecordedintheowner'sequitieswhichiscorrespondingtotheportionwhoserecognitionhasbeenstopped(intheeventthatthefinancialassetinvolvedinthetransferisafinancialassetAvailable-for-sale).Ifthetransferoffinancialassetsdoesnotsatisfytheconditionstostoptherecognition,itshallcontinue
toberecognizedasfinancialassetsandtheconsiderationreceivedshallberecognizedasfinancialliabilities.
(4)TerminationofrecognitionoffinancialliabilitiesOnlywhentheprevailingobligationsofafinancialliabilityarerelievedinallorinpartmaytherecognitionofthefinancialliabilitybeterminatedinallorpartly.WheretheCompany(thedebtor)entersintoanagreementwithacreditorsoastosubstitutetheexistingfinancialliabilitiesbywayofanynewfinancialliability,andifthecontractualstipulationsregardingthenewfinancialliabilityaresubstantiallydifferentfromthatregardingtheexistingfinancialliability,itshallterminatetherecognitionoftheexistingfinancialliability,andshallatthesametimerecognizethenewfinancialliability.WheretheCompanymakessubstantialrevisionstopartorallofthecontractualstipulationsoftheexistingfinancialliability,itshallterminatetherecognitionoftheexistingfinancialliabilityorpartofit,andatthesametimerecognizethefinancialliabilityafterrevisingthecontractualstipulationsasanewfinancialliability.Wheretherecognitionofafinancialliabilityistotallyorpartiallyterminated,theCompanyshallincludeintheprofitsandlossesofthecurrentperiodthedifferencebetweenthecarryingamountwhichhasbeenterminatedfromrecognitionandtheconsiderationsithaspaid(includingthenon-cashassetsithastransferredoutandthenewfinancialliabilitiesithasassumed).WheretheCompanybuysbackpartofitsfinancialliabilities,itshalldistribute,onthedateofrepurchase,thecarryingamountofthewholefinancialliabilitiesinlightofthecomparativelyfairvalueofthepartthatcontinuestoberecognizedandthepartwhoserecognitionhasalreadybeenterminated.Thegapbetweenthecarryingamountwhichisdistributedtothepartwhoserecognitionhasterminatedandtheconsiderationsithaspaid(includingthenoncashassetsithastransferredoutandthenewfinancialliabilitiesithasassumed)shallberecordedintotheprofitsandlossesofthecurrentperiod.
(5)Determinationofthefairvalueofthefinancialassets(liabilities)Ifactivemarketsforthefinancialinstrumentsexist,thefairvalueshallbemeasuredbyquotedpricesintheactivemarkets.Ifactivemarketsforthefinancialinstrumentsdonotexist,valuationtechniquesshallbeappliedforthemeasurement.TheCompanyusesvaluationtechniquesappropriatetothecircumstancesandforwhichsufficientdataareavailabletomeasurefairvalue.TheCompanychoosesrelevantobservableinputsforidenticalorsimilarassetsorliabilities.OnlywhenrelevantobservableinputsareunavailableorshouldtheCompanyuseunobservableinputsfortheassetorliability.
(6)ImpairmentprovisionofthefinancialassetsTheCompanyrecognizedtheexpectedcreditlossonfinancialassetsmeasuredatamortizedcost,financialassetsmeasuredatfairvaluethroughothercomprehensiveincome(debtinstruments),financialguaranteecontract,andsoon,onanindividualorportfoliobasis.TheCompanyconsidersallreasonableandrelevantinformation,includingpastevents,currentconditions,andforecastsoffutureeconomicconditions,andusestheriskofdefaultastheweighttocalculatetheprobability-weightedamountofpresentvalueofthedifferencebetweenthecashflowreceivablefrom
thecontractandthecashflowexpectedtobereceivedtoconfirmtheexpectedcreditloss.Ifthecreditriskofthefinancialinstrumenthasincreasedsignificantlysincetheinitialconfirmation,theCompanyshallmeasurethelossallowanceforafinancialinstrumentatanamountequaltothelifetimeexpectedcreditlosses.Ifthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition,theCompanyshallmeasurethelossallowanceforthatfinancialinstrumentatanamountequalto12-monthexpectedcreditlosses.Theincreaseorreversalamountoflossallowancethusformedshallbeincludedinthecurrentprofitsandlossesasimpairmentlossesorgains.Themeasurementofexpectedcreditlossdependsonwhetherthereisasignificantincreaseinthecreditriskoffinancialassetssincetheinitialrecognition.TheCompanycomparestheriskofdefaultonthebalancesheetdateoffinancialinstrumentswiththeriskofdefaultonthedateofinitialrecognitiontodeterminetherelativechangeintheriskofdefaultduringtheexpectedlifeofthefinancialinstrumenttoassesswhetherthereisasignificantincreaseinthecreditriskoffinancialassetssincetheinitialrecognition.Generally,theCompanybelievesthatthecreditriskofthefinancialinstrumenthassignificantlyincreasedover30daysaftertheduedateunlessthereissolidevidencethatthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition.Ifthecreditriskofafinancialinstrumentatthereportingdateisrelativelylow,theCompanyconsidersthatthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysincetheinitialrecognition.Ifthereisobjectiveevidenceindicatingthatacertainfinancialassethasbeenimpaired,theCompanyshallrecognizetheprovisionforimpairmentofthefinancialassetindividually.ForaccountreceivablesandcontractassetsrecognizedaccordingtoAccountingStandardsforBusinessEnterprisesNo.14Revenue(2017),whetherasignificantfinancingcomponentiscontainedornot,theCompanyshallalwaysmeasurethelossallowanceatanamountequaltolifetimeexpectedcreditlosses.Forleasereceivables,theCompanyshallalwaysmeasurethelossallowanceatanamountequaltolifetimeexpectedcreditlosses.
11.Inventory
(1)InventoryclassificationInventoriesincludematerialsintransit,rawmaterial,turnovermaterials,finishedgoods,workinprocess,issuingcommodities,materialsforconsignedprocessing,etc.Inventoryisinitiallymeasuredatcost.Inventorycostincludespurchasecost,processingcostandotherexpendituresincurredtobringinventorytoitscurrentlocationandstate.
(2)ValuationmethodforinventorydispatchedTheweightedaveragemethodisusedtoconfirmtheactualcostoftheinventoriesdispatched.
(3)Thebasisforconfirmingthenetrealizablevalueofinventoriesandthemethodstomakeprovisionfortheinventoryimpairmentloss
Onthebalancesheetdate,inventoriesshallbemeasuredatthelowerofcostandnetrealizablevalue.Whenthecostofinventoriesishigherthanitsnetrealizablevalue,provisionforinventoryimpairmentlossshallbemade.Thenetrealizablevaluereferstotheamountoftheestimatedsellingpriceoftheinventoryminustheestimatedcoststhatwilloccuratthetimeofcompletion,estimatedsellingexpenses,andrelevanttaxesindailyactivities.Thenetrealizablevalueofinventories(finishedproducts,stockcommodity,material,etc.)heldfordirectsellinginthedailybusinessactivityshallbecalculatedbydeductingtheestimatedsaleexpenseandrelevanttaxesfromtheestimatedsalepriceofinventories;Thenetrealizablevalueofinventoriesforfurtherprocessinginthedailybusinessactivityshallbecalculatedbydeductingtheestimatedcostofcompletion,estimatedsaleexpenseandrelevanttaxesfromtheestimatedsalepriceofinventories;Thenetrealizablevalueofinventoriesheldfortheexecutionofsalescontractsorlaborcontractsshallbecalculatedonthegroundofthecontractprice.IftheCompanyholdsmoreinventoriesthanthequantitiessubscribedinthesalescontract,thenetrealizablevalueoftheexcessivepartoftheinventoriesshallbecalculatedonthegroundofthegeneralsalesprice.Aftertheinventoryimpairmentiswithdrawn,ifthefactorsthatpreviouslyaffectedthewrite-downoftheinventoryvaluehavedisappeared,causingthenetrealizablevalueoftheinventorytobehigherthanitsbookvalue,itshallbereversedwithintheamountoftheinventoryimpairmentthathasbeenwithdrawn,andtherevertedamountshallbeincludedinthecurrentprofitandloss.
(4)InventorysystemTheCompanyusesaperpetualinventorysystem.
(5)Amortizationoflow-valuedconsumablesandpackingmaterials
1)Low-valuedconsumablesshallbeamortizedinfullamountonissuance.
2)Packingmaterialsshallbeamortizedinfullamountonissuance.
12.Contractasset
Wheneitherpartytoacontracthasperformed,theCompanyshallpresentthecontractinthestatementoffinancialpositionasacontractassetoracontractliability,dependingontherelationshipbetweentheCompany’sperformanceandthecustomer’spayment.IftheCompanyhavetherighttoreceiveconsideration(therightisconditionedonfactorsotherthanthepassageoftime)bytransferringgoodsorservicestoacustomer,theentityshallpresentthecontractasacontractasset.Contractassetsandcontractliabilitiesunderthesamecontractaredisclosedinnetamounts.Anentityshallpresentanyunconditionalrightstoconsideration(onlythepassageoftimeisrequired)separatelyasareceivable.Fortheaccountingpolicyoftheexpectedcreditlossofcontractassets,pleaserefertoNote“10.(6)Impairmentprovisionofthefinancialassets”under“IV.Significantaccountingpoliciesandaccountingestimates”.
13.Contractcosts
Contractcostsincludecoststofulfillacontractandincrementalcostsofobtainingacontract.IfthecostsincurredinfulfillingacontractwithacustomerarenotwithinthescopeofanotherStandard,forexample,Inventories,Property,PlantandEquipmentorIntangibleAssets,theCompanyshallrecognizeanassetfromthecostsincurredtofulfilacontractonlyifthosecostsmeetallofthefollowingcriteria:
(a)thecostsrelatedirectlytoacontractortoanexpectedcontract;(b)thecostsgenerateorenhanceresourcesoftheCompanythatwillbeusedinsatisfyingperformanceobligationsinthefuture;and(c)thecostsareexpectedtoberecovered.TheCompanyshallrecognizeasanassettheincrementalcostsofobtainingacontractwithacustomeriftheCompanyexpectstorecoverthosecosts.Anassetrecognizedinaccordancewithcontractcostsshallbeamortizedinconsistencewiththetransfertothecustomerofthegoodsorservicestowhichtheassetrelates.TheCompanymayrecognizetheincrementalcostsofobtainingacontractasanexpensewhenincurrediftheamortizationperiodoftheassetisoneyearorless.TheCompanyshallrecognizeanimpairmentlossinprofitorlosstotheextentthatthecarryingamountofanassetrelatedtocontractassetsexceeds:
(a)theremainingamountofconsiderationthattheCompanyexpectstoreceiveinexchangeforthegoodsorservicestowhichtheassetrelates;less(b)thecoststhatrelatedirectlytoprovidingthosegoodsorservicesandthathavenotbeenrecognizedasexpenses.TheCompanyshallrecognizeinprofitorlossareversalofsomeorallofanimpairmentlosspreviouslyrecognizedwhentheimpairmentconditionsnolongerexistorhaveimproved.Theincreasedcarryingamountoftheassetshallnotexceedthecarryingamountifnoimpairmentlosshadbeenrecognizedpreviously.
14.Long-termequityinvestment
(1)CriteriaofjointcontrolandsignificantinfluenceJointcontrolisthecontractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhendecisionsabouttherelevantactivitiesrequiretheunanimousconsentofthepartiessharingcontrol.IftheCompanyandotherjointventureshavejointcontroloftheinvesteeandhaverightstothenetassetsoftheinvestee,theinvesteeisajointventureoftheCompany.
Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutnotcontrolorjointcontrolofthosepolicies.IftheCompanycouldexertsignificantinfluenceovertheinvestee,theinvesteeistheassociateoftheCompany.
(2)Theinitialcostoflong-termequityinvestmentfrombusinessacquisition
1)Long-termequityinvestmentfrombusinessacquisitionForabusinesscombinationundercommoncontrol,iftheconsiderationofthecombinationissatisfiedbypayingcash,transferofnon-cashassetsorassumptionofliabilitiesandtheissueofequitysecurities,theinitialinvestmentcostofthelong-termequityinvestmentshallbetheabsorbingparty’sshareofthecarryingamountoftheowner’sequityofthepartybeingabsorbedintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatcombinationdate.Whenaninvestorbecomescapableofexercisingcontroloveraninvesteeundercommoncontrolduetoadditionalinvestmentorotherreasons,theinitialinvestmentcostshallbetheabsorbingparty’sshareofthecarryingamountoftheowner’sequityofthepartybeingabsorbedintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatcombinationdate.Thedifferencebetweentheinitialinvestmentcostandthecarryingamountofthepreviouslyheldequityinvestment,togetherwiththeadditionalinvestmentcostfornewsharesatthecombinationdate,shallbeadjustedtothecapitalreserve.Ifthebalanceofcapitalreserveisnotsufficient,anyexcessshallbeadjustedtoretainedearnings.Forabusinesscombinationnotundercommoncontrol,theinitialinvestmentcostofthelong-termequityinvestmentshallbetheacquisitioncostattheacquisitiondate.Whenaninvestorbecomescapableofexercisingcontroloveraninvesteeduetoadditionalinvestmentorotherreasons,theinitialinvestmentcostunderthecostmethodshallbethecarryingamountofpreviously-heldequityinvestmenttogetherwiththeadditionalinvestmentcost.
2)Theinitialcostofthelong-termequityinvestmentotherthanfrombusinessacquisitionTheinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchasecostwhichisactuallypaid.Theinitialcostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethefairvalueoftheequitysecuritiesissued.
(3)Subsequentmeasurementandprofitorlossrecognition
1)CostmethodTheCompanyadoptsthecostmethodforthelong-terminvestmentinasubsidiarycompany.Underthecostmethod,aninvestingenterpriseshall,inaccordancewiththeattributableshareofthenetprofitsorlossesoftheinvestedentity,recognizetheinvestmentprofitsorlossesexceptthedividenddeclaredbutunpaid,whichisincludedinthepaymentwhenacquiringtheinvestment.
2)Equitymethod
Along-termequityinvestmentinanassociateorajointventureshallbeaccountedforusingtheequitymethod.Wheretheinitialinvestmentcostofalong-termequityinvestmentexceedsinvestor’sinterestinthefairvaluesofaninvestee’sidentifiablenetassetsattheacquisitiondate,noadjustmentshallbemadetotheinitialinvestmentcost.Wheretheinitialcostislessthantheinvestor’sinterestinthefairvaluesoftheinvestee’sidentifiablenetassetsattheacquisitiondate,thedifferenceshallbecreditedtoprofitorlossforthecurrentperiod,andthecostoflong-termequityinvestmentshallbeadjustedaccordingly.TheCompanyshallrecognizeitsshareoftheinvestee’snetprofitsorlosses,aswellasitsshareoftheinvestee’sothercomprehensiveincome,asinvestmentincomeorlossesandothercomprehensiveincome,andadjustthecarryingamountoftheinvestmentaccordingly.Thecarryingamountoftheinvestmentshallbereducedbytheportionofanyprofitdistributionsorcashdividendsdeclaredbytheinvesteethatisattributabletotheinvestor.Theinvestor’sshareoftheinvestee’sowners’equitychanges,otherthanthosearisingfromtheinvestee’snetprofitorloss,othercomprehensiveincomeorprofitdistribution,andthecarryingamountofthelong-termequityinvestmentshallbeadjustedaccordingly.Theinvestorshallrecognizeitsshareoftheinvestee’snetprofitsorlossesaftermakingappropriateadjustmentsaccordingtotheCompany’saccountingprinciplesandoperatingperiodbasedonthefairvaluesoftheinvestee’sidentifiablenetassetsattheacquisitiondate.Duringtheholdingperiod,iftheinvesteemakesconsolidatedfinancialstatements,theCompanyshallcalculateitssharebasedontheinvestee’snetprofit,othercomprehensiveincomeandtheamountofotherowners'equityattributedtotheinvesteeintheconsolidatedfinancialstatements.Theunrealizedprofitsorlossesresultingfromtransactionsbetweentheinvestoranditsassociateorjointventureshallbeeliminatedinproportiontotheinvestor’sequityinterestintheinvestee,basedonwhichinvestmentincomeorlossesshallberecognized,exceptthetransactionofinvestmentorsaleofassetsisabusiness.Anylossesresultingfromtransactionsbetweentheinvestorandinvesteewhichareattributabletoassetimpairmentshallberecognizedinfull.TheCompany’snetlossesincurredbyjointventuresorassociates,inadditiontoassumingadditionallossobligations,arelimitedtothebookvalueoflong-termequityinvestmentsandotherlong-termequitythatessentiallyconstitutesanetinvestmentinjointventuresorassociates.Ifajointventureorassociatedenterpriserealizesnetprofitsinthefuture,theCompanyresumesrecognizingitsshareofprofitsaftertheshareofprofitsmakesupfortheshareofunrecognizedlosses.
3)Disposaloflong-termequityinvestmentWhendisposingoflong-termequityinvestment,thedifferencebetweentheproceedsactuallyreceivedandthecarryingamountshallberecognizedinprofitorlossforthecurrentperiod.Partialdisposaloflong-termequityinvestmentsaccountedforbytheequitymethod,andtheremainingequityisstillaccountedforbytheequitymethod,theothercomprehensiveincomerecognizedbytheoriginalequitymethodshallbecarriedforwardaccordingtothesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvestee.Allotherchangesintheinterestsoftheholdersarecarriedforwardtothecurrentprofitandlossonapro-ratabasis.Whenaninvestorcannolongerexercisejointcontroloforsignificantinfluenceoveraninvesteeduetopartialdisposalofanequityinvestmentorotherreasons,anyothercomprehensiveincomepreviouslyrecognizedshallbeaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehad
directlydisposedoftherelatedassetsorliabilitiesforthecurrentperiodupondiscontinuationoftheequitymethod.Otherowner'sequitychangeshallbetransferredintoprofitorlossofthecurrentperiodinfullwhentheCompanyceasetoadopttheequitymethod.Whenaninvestorcannolongercontroltheinvesteeduetopartialdisposal,whentheindividualfinancialstatementsareprepared,theremainingequitycanexercisejointcontrolorsignificantinfluenceontheinvestee,andtheequitymethodshallbeusedtoaccountfortheremainingequity.Itisdeemedthattheequitymethodisadoptedforadjustmentsincetheacquisition,andtheothercomprehensiveincomerecognizedbeforethecontroloftheinvesteeisobtainediscarriedforwardonthesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvestee,becausetheequitymethodisusedforaccounting.Theconfirmedchangesinotherowners’equityarecarriedforwardtothecurrentprofitandlossonapro-ratabasis.Iftheremainingequitycannotexercisejointcontrolorexertsignificantinfluenceontheinvestee,itshallberecognizedasafinancialasset,andthedifferencebetweenitsfairvalueandbookvalueonthedatewhencontrolislostshallbeincludedinthecurrentprofitandloss,andothercomprehensiveincomeandotherowner’sinterestspreviouslyrecognizedshallbetransferredtoprofitorlossinfull.Iftheequityinvestmentofasubsidiaryisdisposedofthroughmultipletransactionsuntilitlosescontrol,whichisapackagetransaction,eachtransactionshallbeaccountedasatransactionthatdisposesoftheequityinvestmentofthesubsidiaryandlosescontrol.Foreachtransactionbeforethelossofcontrol,thedifferencebetweenthedisposalpriceandthebookvalueofthecorrespondingdisposedpartoflong-termequityinvestmentisfirstrecognizedasothercomprehensiveincomeinindividualfinancialstatementsandthentransferredtothecurrentprofitandlosswhenthecontrolislost.Ifitisnotapackagetransaction,eachtransactionshallbeaccountedforseparately.
15.Fixedassets
(1)RecognitionofFixedassetsTheterm"fixedassets"referstothetangibleassetsheldforthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagementandofwhichusefullifeisinexcessofonefiscalyear.Nofixedassetmayberecognizedunlessitsimultaneouslymeetstheconditionsasfollows:
1)Theeconomicbenefitspertinenttothefixedassetarelikelytoflowintotheenterprise;and
2)Thecostofthefixedassetcanbemeasuredreliably.Fixedassetsareinitiallymeasuredatcost(andconsideringtheimpactofexpecteddismantlingcostfactors).Subsequentexpendituresrelatedtofixedassetsareincludedinthecostoffixedassetswhentherelatedeconomicbenefitsarelikelytoflowinandtheircostscanbereliablymeasured;thebookvalueofthereplacedpartisderecognized;allothersubsequentexpendituresareincurredshallbeincludedinthecurrentprofitandloss.
(2)Fixedassetsdepreciation
Fixedassetsaredepreciatedunderthestraight-linemethod.Thedepreciationrateisdeterminedaccordingtothecategoryofassets,theusefullifeandtheexpectedresidualrate.Ifthecomponentsofthefixedassetshavedifferentusefullivesorprovideeconomicbenefitsinadifferentway,thendifferentdepreciationrateormethodsshallbeappliedandthedepreciationofthecomponentsshallbecalculatedseparately.Fixedassetsacquiredunderfinancialleasingaredepreciatedovertheusefullifeifitisreasonablycertainthattheownershipoftheleasedassetswillbeacquireduponexpiryofthelease,orovertheshorteroftheleasetermandusefullifeifitisnotreasonablycertainthattheownershipoftheleasedassetswillbeacquireduponexpiryofthelease.Detailsofclassification,residualvaluerateandannualdepreciationrateareasfollows:
| Category | Depreciationmethod | Depreciationperiod | Residualvaluerate | Annualdepreciationrate |
| PlantsandBuildings | Yearaveragemethod | 40 | 5 | 2.38 |
| Machinery | Yearaveragemethod | 17-24 | 5 | 3.96-5.59 |
| Transportationandotherequipment | Yearaveragemethod | 5-12 | 5 | 7.92-19.00 |
(3)DisposaloffixedassetsWhenafixedassetisdisposedof,oritisexpectedthatnoeconomicbenefitswillbegeneratedthroughuseordisposal,therecognitionofthefixedassetshallbedetermined.Theamountofdisposableincomeoffixedassetsraisedfromsale,transfer,scrappingordamageshallbeincludedinthecurrentprofitandlossafterdeductingitsbookvalueandrelatedtaxes.
16.Constructioninprogress
Constructioninprogressismeasuredattheactualcostincurred.Theactualcostincludesconstructioncosts,installationcosts,borrowingcoststhatmeetthecapitalizationconditions,andothernecessaryexpendituresincurredbeforetheconstructioninprogressreachesitsintendedusestatus.Constructioninprogressistransferredtofixedassetwhenithasreacheditsworkingconditionforitsintendeduseanddepreciationwillbeaccruedfromthenextmonth.
17.Borrowingcosts
(1)PrincipleoftherecognitionofcapitalizedborrowingcostsWheretheborrowingcostsincurredbyanenterprisecanbedirectlyattributabletotheacquisitionandconstructionorproductionofassetseligibleforcapitalization,itshallbecapitalizedandrecordedintothecostsofrelevantassets.Otherborrowingcostsshallberecognizedasexpensesonthebasisoftheactualamountincurredandshallberecordedintothecurrentprofitsandlosses.Assetseligibleforcapitalizationrefertothefixedassets,investmentproperty,inventoriesandotherassets,ofwhichtheacquisitionandconstructionorproductionmaytakequitealongtimetogetreadyfortheirintendeduseorforsale.
(2)ThecapitalizationperiodofborrowingcostsThecapitalizationperiodshallrefertotheperiodfromthecommencementtothecessationofcapitalizationoftheborrowingcosts,excludingtheperiodofsuspensionofcapitalizationoftheborrowingcosts.Theborrowingcostsshallnotbecapitalizedunlesstheysimultaneouslymeetthefollowingrequirements:
1)Theassetdisbursementshavealreadybeenincurred,whichshallincludecash,transferrednoncashassetsorinterest-bearingdebtspaidfortheacquisitionandconstructionorproductionactivitiesforpreparingassetseligibleforcapitalization;
2)Theborrowingcostshavealreadybeenincurred;and
3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted.Whenthequalifiedassetunderacquisitionandconstructionorproductionisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased.
(3)ThesuspensionofcapitalizationofborrowingcostsWheretheacquisitionandconstructionorproductionofaqualifiedassetareinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspended.Iftheinterruptionisanecessarystepformakingthequalifiedassetunderacquisitionandconstructionorproductionreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallcontinue.Theborrowingcostsincurredduringsuchperiodshallberecognizedasexpensesandshallberecordedintotheprofitsandlossesofthecurrentperiod,tilltheacquisitionandconstructionorproductionoftheassetrestarts.
(4)MethodofcalculatingthecapitalizationrateandcapitalizedamountofborrowingcostsForinterestexpense(minustheincomeofinterestsearnedontheunusedborrowingloansasadepositinthebankorinvestmentincomeearnedontheloanasatemporaryinvestment)andtheancillaryexpenseincurredtoaspecificallyborrowedloan,thoseincurredbeforeaqualifiedassetunderacquisition,constructionorproductionisreadyfortheintendeduseorsaleshallbecapitalizedattheincurredamountwhentheyareincurred,andshallberecordedintothecostsoftheasseteligibleforcapitalization.TheCompanyshallcalculateanddeterminetheto-be-capitalizednumberofinterestsonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Thecapitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.Duringthecapitalizationperiod,theexchangedifferencebetweentheprincipalandinterestoftheforeigncurrencyspecialloaniscapitalizedandincludedinthecostoftheassetsthatmeetthecapitalization
conditions.Exchangedifferencesarisingfromtheprincipalandinterestofforeigncurrencyborrowingsotherthanforeigncurrencyspecialborrowingsareincludedinthecurrentprofitsandlosses.
18.Intangibleassets
(1)Measurementofintangibleassets
1)InitialmeasurementisbasedoncostuponacquisitionThecostofanintangibleassetonacquisitionincludesthepurchaseprice,relevanttaxesandothernecessarydisbursementswhichmaybedirectlyattributabletobringingtheintangibleassettotheconditionsfortheexpectedpurpose.
2)SubsequentmeasurementTheCompanyshallanalyzeandjudgethebeneficialperiodofintangibleassetsuponacquisition.Intangibleassetswithfinitebeneficialperiodsshallbeamortizedunderthestraight-linemethodduringtheperiodwhentheintangibleassetcanbringeconomicbenefitstotheenterprise.Ifitisunabletoestimatethebeneficialperiodoftheintangibleasset,itshallberegardedasanintangibleassetwithuncertainservicelifeandshallnotbeamortized.
Estimatedusefullivesofintangibleassetswithlimitedusefullives:
| Item | Estimatedusefullife | Criteria |
| Landuseright | 50years | Landuserightcertificate |
(2)AccountingpoliciesforinternalresearchanddevelopmentexpendituresClassificationcriteriafortheinternalresearchphaseanddevelopmentphase:
Theexpendituresfortheinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchexpendituresanddevelopmentexpenditures.Researchphasereferstothephaseofcreativeandplannedinvestigationtoacquireandstudytoacquireandunderstandnewscientificortechnologicalknowledge.Developmentphasereferstothephaseduringwhichtheresultoftheresearchphaseorotherknowledgeisappliedtocertainprojectsordesignsforthemanufacturingofneworsubstantiallyimprovedmaterials,devicesandproductsbeforecommercialmanufacturinganduse.Specificconditionsforcapitalizationofdevelopmentphaseexpenditures:
Researchexpendituresarerecognizedinprofitorlossasincurred.Expendituresinthedevelopmentphasearerecognizedasintangibleassetsifthefollowingconditionsaremet,andexpendituresinthedevelopmentphasethatdonotmeetthefollowingconditionsarerecognizedinprofitorloss:
1)Itistechnicallyfeasibletocompletetheintangibleassetsothatitcanbeusedorsold;
2)Thereisanintenttocompletetheintangibleassetanduseorsellit;
3)Themannerinwhichanintangibleassetgenerateseconomicbenefits,includingbeingabletodemonstratethatthereisamarketfortheproductproducedfromtheintangibleassetorthatthereisamarketfortheintangibleassetitselfandthattheintangibleassetwillbeusedinternally,shouldproveitsusefulness;
4)Therearesufficienttechnical,financialandotherresourcestosupportthecompletionofthedevelopmentoftheintangibleassetandiscapableofusingorsellingtheintangibleasset;
5)Theexpenditureattributabletothedevelopmentphaseoftheintangibleassetcanbemeasuredreliably.Ifitisnotpossibletodistinguishbetweenresearchphaseexpendituresanddevelopmentphaseexpenditures,allresearchanddevelopmentexpendituresincurredarechargedtocurrentprofitorloss.
19.Impairmentoflong-termassets
Long-termequityinvestments,fixedassets,constructioninprogress,right-of-useassets,intangibleassetswithlimitedusefullivesandotherlong-termassetsshallbetestedforimpairmentifthereisanindicationofimpairmentatthebalancesheetdate.Iftheresultoftheimpairmenttestindicatesthattherecoverableamountofanassetislessthanitsbookvalue,thedifferenceshallberecognizedasaprovisionforimpairmentandincludedinimpairmentloss.Therecoverableamountisthehigherofthefairvalueofassets,lesscostsofdisposal,andthepresentvalueofestimatedfuturecashflowsfromtheassets.Theprovisionforimpairmentofassetsshallbecalculatedandrecognizedonanindividualbasis,andifitisdifficulttoestimatetherecoverableamountofanindividualasset,theCompanyshallrecognizetherecoverableamountofassetgrouptowhichtheassetbelongs.Theterm"assetsgroup”referstoaminimumcombinationofassetsbywhichthecashflowscouldbegeneratedindependentlyGoodwillarisingfrombusinesscombinations,intangibleassetswithanindefiniteusefullife,andintangibleassetsthathavenotyetreachedtheirintendeduseablestateshallbetestedforimpairmentatleastattheendofeachyear,regardlessofwhetherthereisanindicationofimpairment.Inperforminganimpairmenttestongoodwill,theCompanyshallapportionthebookvalueofgoodwillarisingfrombusinesscombinationstotherelevantassetgroupfromthedateofpurchaseinaccordancewithareasonablemethod;forthosethatitisdifficulttobeapportionedtotherelevantassetgroup,theyshallbeapportionedtotherelevantportfolioofassetgroup.Therelevantassetgrouporcombinationofassetgroupsarethosethatcanbenefitfromthesynergisticeffectsofthebusinesscombination.Inperforminganimpairmenttestontherelevantassetgrouporportfolioofassetgroupthatcontainsgoodwill,theCompanyshallconducttheimpairmenttestfirstontheassetgrouporportfolioofassetgroupthatdoesnotcontaingoodwillifthereisanindicationofimpairmentontheassetgrouporportfolioofassetgrouprelatingtogoodwill,andcalculateitsrecoverableamountaswellascompareitwiththerelevantbookvaluetorecognizethecorrespondingimpairmentloss.Thentheimpairmenttestshallbeperformedfortheassetgrouporportfolioofassetgroupthatcontainsgoodwill,comparingitsbookvalueanditsrecoverableamount.Iftherecoverableamountislessthanthebookvalue,theamountofimpairmentlossshallbeoffsetandapportionedtothebookvalueofgoodwillcontainedintheassetgrouporportfolioofassetgroup,andthenoffsetthebookvalueofotherassetsinproportiontotheproportionofbookvalueofassetsotherthangoodwillintheassetgrouporportfolioofassetgroup.Theimpairmentlossesonassetsmentionedabove,oncerecognized,shallnotbereversedinsubsequentaccountingperiods.
20.Long-termdeferredexpense
Thelong-termdeferredexpensereferstotheexpensesincurredbutshallbebornebythecurrentandsubsequentaccountingperiod,whichismorethanoneyear.Thelong-termdeferredexpenseshallbeamortizedoveritsbeneficiaryperiodevenly.
21.Contractliabilities
TheCompanyshallpresentcontractassetsorcontractliabilitiesinthestatementoffinancialpositioninaccordancewiththerelationshipbetweentheperformanceofanobligationandthepaymentof
customers.TheobligationoftheCompanytotransfergoodsorprovideservicestocustomersforconsiderationreceivedorreceivablefromcustomersshallbepresentedascontractliabilities.Contractassetsandcontractliabilitiesunderthesamecontractshallbeshownonanetbasis.
22.Employeebenefits
(1)Accountingtreatmentforshort-termemployeebenefitsTheCompanyshallrecognizetheshort-termbenefitsactuallyincurredastheliabilities,andrecognizesuchliabilitiesintothecurrentprofitandlossorthecostsoftherelatedassetsintheaccountingperiodtowhichtheemployeesrendertheservices.PaymentsmadebytheCompanyofsocialsecuritycontributionsforemployees,paymentsofhousingprovidentfunds,unionfundsandemployeeeducationcostsprovidedinaccordancewithrelevantrequirementsshall,intheaccountingperiodinwhichemployeesprovideservices,becalculatedaccordingtoprescribedbasesandpercentagesindeterminingtheamountofemployeebenefits.TheemployeewelfareexpensesincurredbytheCompanyareincludedinthecurrentprofitandlossorrelatedassetcostsbasedontheactualamountwhentheyactuallyoccur.Amongthem,non-monetarybenefitsaremeasuredatfairvalue.
(2)Accountingtreatmentforpost-employmentbenefits
1)DefinedcontributionplanTheCompanyshallrecognize,intheaccountingperiodinwhichanemployeeprovidesservice,pensionfundandunemploymentfundforemployeesasliabilitiesaccordingtothelocalgovernmentregulations.Theamountshallbecalculatedaccordingtolocalprescribedbasesandpercentagesindeterminingtheamountofemployeebenefits,withacorrespondingchargetotheprofitorlossorcostofanassetforthecurrentperiod.TheCompanycontributestothebasicpensioninsuranceandunemploymentinsuranceforitsemployeesinaccordancewiththerelevantlocalgovernmentregulations.TheamountpayableiscalculatedonthebasisofthecontributionbaseandattherateprescribedbythelocalregulationsandisrecognizedasaliabilityandchargedtocurrentprofitandlossorthecostofrelatedassetsintheaccountingperiodinwhichtheemployeesprovideservicestotheCompany.Inaddition,theCompanyparticipatesinanenterpriseannuityplan/supplementalpensionfundapprovedbytherelevantstateauthorities.TheCompanycontributesacertainpercentageoftheemployees'grosssalariestotheannuityplans/localsocialinsuranceinstitutionsandthecorrespondingexpensesarechargedtocurrentprofitandlossortothecostofrelatedassets.
2)DefinedbenefitplanNone.
3)AccountingtreatmentforterminationbenefitsTheCompanyshallrecognizeemployeebenefitsliabilitiesforterminationbenefits,withacorrespondingchargetothecurrentprofitandloss,attheearlierofthefollowingdates:whentheCompanycannot
unilaterallywithdrawtheofferofterminationbenefitsbecauseofanemploymentterminationplanoracurtailmentproposal;orwhentheCompanyrecognizescostsorexpensesrelatedtoarestructuringthatinvolvesthepaymentofterminationbenefits.
23.Estimatedliabilities
Theobligationpertinenttoacontingencyshallberecognizedasanestimatedliabilitywhenthefollowingconditionsaresatisfiedsimultaneously:
1)ThatobligationisacurrentobligationoftheCompany;
2)ItislikelytocauseanyeconomicbenefittoflowoutoftheCompanyasaresultoftheperformanceoftheobligation;and
3)Theamountoftheobligationcanbemeasuredinareliableway.Theestimatedliabilitiesshallbeinitiallymeasuredinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.Todeterminethebestestimate,theCompanyshalltakeintofullconsiderationoftherisks,uncertainty,timevalueofmoney,andotherfactorspertinenttothecontingencies.Ifthetimevalueofmoneyisofgreatsignificance,thebestestimateshallbedeterminedafterdiscountingtherelevantfutureoutflowofcash.Ifthereisacontinuousrangeofexpensesrequiredandthelikelihoodofvariousoutcomeswithinthatrangeisequal,thebestestimateisdeterminedbythemid-pointoftherange;inothercases,thebestestimateistreatedseparatelyasfollows.?Ifacontingencyrelatestoasingleitem,itshallbedeterminedinthelightofthemostlikelyoutcome.?Ifthecontingenciesrelatetomorethanoneitem,thebestestimateshallbecalculatedanddeterminedinaccordancewithallpossibleoutcomesandtherelevantprobabilities.Whenallorsomeoftheexpensesnecessaryfortheliquidationofanestimatedliabilitiesofanenterpriseisexpectedtobecompensatedbyathirdparty,thecompensationshallbeseparatelyrecognizedasanassetonlywhenitisvirtuallycertainthatthereimbursementwillbeobtained.Theamountrecognizedforthereimbursementshallnotexceedthebookvalueoftheestimatedliabilities.TheCompanyreviewsthebookvalueoftheestimatedliabilitiesonthebalancesheetdate.Ifthereisconclusiveevidencethatthebookvaluedoesnotreflectthecurrentbestestimate,thebookvaluewillbeadjustedaccordingtothecurrentbestestimate.
24.Revenue
(1)AccountingpoliciesusedforrevenuerecognitionandmeasurementTheCompanyshallrecognizerevenuewhen(oras)theCompanysatisfiesaperformanceobligationwhen(oras)thecustomerobtainscontrolofapromisedgoodorservice.Controlofapromisedgoodorservicereferstotheabilitytodirecttheuseof,andobtainsubstantiallyalloftheremainingbenefitsfromit.Ifthecontractcontainstwoormoreperformanceobligations,theCompanyshallallocatethetransaction
pricetoeachindividualperformanceobligationbasedontherelativeproportionofthestand-alonesellingpriceofthegoodsorservicespromisedbyeachindividualperformanceobligationonthedateofthecontract.TheCompanymeasuresrevenuebasedonthetransactionpriceallocatedtoeachindividualperformanceobligation.ThetransactionpriceistheamountofconsiderationtowhichtheCompanyexpectstobeentitledinexchangefortransferringpromisedgoodsorservicestocustomers,excludingamountscollectedonbehalfofthethirdpartiesoramountsexpectedtobereturnedtocustomers.TheCompanyshallconsiderthetermsofthecontractanditscustomarybusinesspracticestodeterminethetransactionprice.Whendeterminingthetransactionprice,theCompanyshallconsidertheeffectsofallofthefollowing:variableconsideration,theexistenceofasignificantfinancingcomponentinthecontract,non-cashconsideration,andconsiderationpayabletocustomers.TheCompanydeterminesthetransactionpricethatincludesvariableconsiderationatanamountthatdoesnotexceedtheamountofaccumulatedrecognizedrevenuethatisunlikelytobemateriallyreversedwhentherelevantuncertaintyiseliminated.Ifthereisasignificantfinancingcomponentinthecontract,theCompanyshallrecognizerevenueatanamountthatreflectsthepricethatacustomerwouldhavepaidforthepromisedgoodsorservicesifthecustomerhadpaidcashforthosegoodsorserviceswhen(oras)theytransfertothecustomer,andusetheeffectiveinterestmethodtoamortizethedifferencebetweenthetransactionpriceandthecontractconsiderationduringthecontractperiod.Whenoneofthefollowingconditionsismet,theCompanyisdeemedtohaveundertakentheperformanceobligationwithinacertaintime;otherwise,itwillbedeemedasundertakingtheperformanceobligationatacertainpointintime:
?ThecustomersimultaneouslyreceivesandconsumesthebenefitsprovidedbytheCompany’sperformanceastheCompanyperforms;?ThecustomerhascontroloverthegoodsinprogressduringtheCompany'sperformance.?ThegoodsproducedinthecourseoftheCompany'sperformanceareofirreplaceableuseandtheCompanyisentitledtoreceivepaymentfortheportionoftheperformancethathasbeencompletedcumulativelytodateduringtheentiretermofthecontract.TheCompanyshallrecognizerevenueovertimebymeasuringtheprogresstowardscompletesatisfactionofthatperformanceobligation,exceptwheretheperformanceprogresscannotbereasonablydetermined.TheCompanyconsidersthenatureofthegoodsorservicesandadoptstheoutputmethodortheinputmethodtodeterminetheprogressofperformance.Wheretheperformanceprogresscannotbereasonablydetermined,buttheCompanyexpectstorecoverthecostsincurredinsatisfyingtheperformanceobligation,theCompanyshallrecognizerevenueonlytotheextentofthecostsincurreduntilsuchtimethatitcanreasonablymeasuretheoutcomeoftheperformanceobligation.Forperformanceobligationssatisfiedatacertainpointintime,theCompanyshallrecognizerevenueatthepointwhenthecustomerobtainscontroloftherelevantgoodsorservices.Todeterminethepointintimeatwhichacustomerobtainscontrolofpromisedgoodsorservices,theCompanyshallconsiderrequirementsasfollows:
?TheCompanyhasapresentrighttopaymentforthepromisedgoodsorservicesandthecustomerispresentlyobligedtopayforthat;?TheCompanyhastransferredthelegalownershipofthegoodstothecustomer,thatis,thecustomer
hasthelegalownershiptothegoods;?TheCompanyhastransferredphysicalpossessionofthegoodstothecustomer,thatis,thecustomerhastakenpossessionofthegoods;?TheCompanyhastransferredthemainrisksandrewardsofownershipofthegoodstothecustomer,thatis,thecustomerhasthemainrisksandrewardsofownershipofthegoods;?Thecustomerhasacceptedthepromisedgoodsorservices.Differencesinaccountingpoliciesforrevenuerecognitionduetodifferentoperatingmodelsforthesametypeofbusiness.
(2)SpecificaccountingpoliciesforrevenuerecognitionCommoditysalescontractsbetweencompaniesandcustomersusuallyonlyincludeperformanceobligationsforthetransferofsteelandothercommoditiesorservice.Thistypeofperformanceobligationisaperformanceobligationperformedatacertainpointintime.TheCompanyrecognizesrevenuewhenthecustomerobtainscontroloftherelevantgoodsorservices.Whenjudgingwhetherthecustomerhasobtainedcontrolofgoodsorservices,theCompanyconsidersthefollowingindications:
TheCompanyobtainsthepresentrightofcollectionofreceivables,thelegalownershipofthegoodsistransferredtothecustomer,thephysicalassetsofthegoodsaretransferredtothecustomer,theCompanytransfersthemainrisksandrewardsoftheownershipofthegoodstothecustomer,andthecustomerhasacceptedthegoods.Differencesinaccountingpoliciesforrevenuerecognitionduetodifferentoperatingmodelsforthesametypeofbusiness.
25.Governmentgrants
(1)TypesGovernmentgrantsmeanthemonetaryornon-monetaryassetsobtainedfreeofchargebytheCompanyfromthegovernment.Governmentgrantsconsistofgovernmentsubsidiespertinenttoassetsandgovernmentsubsidiespertinenttoincome.GovernmentgrantsrelatedtoassetsaregovernmentgrantsacquiredbytheCompanyfortheacquisitionorotherformationoflong-termassets.Governmentgrantsrelatedtoincomearegovernmentgrantsotherthanthoserelatedtoassets.ThespecificcriteriafortheCompanytoclassifygovernmentgrantsasasset-relatedare:governmentgrantsacquiredbytheenterpriseandusedtoacquireorotherwiseformlong-termassets.ThecriteriaoftheCompanyrecognizingthegovernmentgrantsrelatedtoincomeis:Inadditiontogovernmentgrantsrelatedtoassets,governmentgrantsthathavebeenclearlytargetedforsubsidies.Forgovernmentdocumentsthatdonotspecifytheobjectofthegrant,theCompanyclassifiesthegovernmentgrantasasset-relatedorincome-relatedbasedonthefollowingjudgment:ifitcanformalong-termasset,theportionofthegovernmentgrantthatcorrespondstothevalueoftheassetistreatedasanasset-relatedgovernmentgrantandtherestasanincome-relatedgovernmentgrant;ifitisdifficult
todistinguish,thegovernmentgrantasawholeistreatedasanincome-relatedgovernmentgrant.
(2)RecognitionGovernmentgrantsrelatedtoassetsarerecognizedwhenitactuallyreceived,andtransferredthedeferredincometothecurrentprofitandlossaccordingtotheestimateduseperiodofthelong-termassetsfromwhenthelong-termassetsareavailable.Governmentgrantsrelatedtoincomearerecognizedwhenitactuallyreceived.Whichtocompensatetherelevantexpensesorlossesinsubsequentperiodsshallbeincludedinthecurrentnon-operatingincomeduringtheperiodwhentherelevantexpensesarerecognized.Whichtocompensateexpensesorlossesalreadyincurredshallberecognizedincurrentnon-operatingincome.
(3)AccountingtreatmentGovernmentgrantsrelatedtoassetsshallbeusedtooffsetthebookvalueoftherelatedassetsorrecognizedasdeferredincome.Thegovernmentgrantsrecognizedasdeferredincomeshallbechargedtocurrentprofitandloss(iftheyrelatetoordinaryactivities,tootherincome;ifdonot,tonon-operatingincome)inaccordancewithareasonableandsystematicmethodovertheusefullifeoftherelatedassets;Governmentgrantsrelatedtoincomethatisusedtocompensatefortherelatedcostsandexpensesorlossesinsubsequentperiodsshallberecognizedasdeferredincomeandchargedtocurrentprofitandloss(iftheyrelatetoordinaryactivities,tootherincome;ifdonot,tonon-operatingincome)intheperiodinwhichtherelatedcostsandexpenseorlossesarerecognized,oroffsettherelatedcostsandexpensesorlosses;forthoseusedtocompensatefortherelatedcostsandexpensesorlossesthathavebeenincurred,theyshallbedirectlyincludedincurrentprofitandloss(iftheyrelatetoordinaryactivities,tootherincome;ifdonot,tonon-operatingincome)oroffsettherelatedcostsandexpensesorlosses.ThepolicydiscountloansobtainedbytheCompanyaredividedintothefollowingtwosituationsandareseparatelyaccountedfor:
1)IfthegovernmentallocatesdiscountedfundstotheloanbankandtheloanbankprovidesloanstotheCompanyatapolicypreferentialinterestrate,theCompanywilltaketheactualamountoftheloanreceivedastheentryvalueoftheloanandcalculatetherelevantborrowingcostsbasedontheloanprincipalandthepolicypreferentialinterestrate.
2)IfthegovernmentdirectlyallocatesthediscountedfundstotheCompany,theCompanywillwrite-downtherelevantborrowingcostswiththecorrespondingdiscounts.
26.Deferredincometaxassets/deferredincometaxliabilities
Incometaxincludescurrentincometaxanddeferredincometax.Exceptforincometaxarisingfrombusinesscombinationsandtransactionsoreventsthataredirectlyincludedinowner'sequity(includingothercomprehensiveincome),theCompanywillincludecurrentincometaxanddeferredincometaxincurrentprofitandloss.Deferredincometaxassetsanddeferredincometaxliabilitiesarecalculatedandconfirmedbasedonthedifference(temporarydifference)betweenthetaxbaseofassetsandliabilitiesandtheirbookvalues.Anenterpriseshallrecognizethedeferredincometaxassetsarisingfromadeductibletemporary
differencetotheextentoftheamountofthetaxableincomewhichitismostlikelytobeobtainedandwhichcanbedeductedfromthedeductibletemporarydifference.Asforanydeductiblelossortaxdeductionthatcanbecarriedforwardtothenextyear,thecorrespondingdeferredincometaxassetsshallbedeterminedtotheextentthattheamountoffuturetaxableincometobeoffsetbythedeductiblelossortaxdeductiontobelikelyobtained.Deferredincometaxliabilitiesarerecognizedfortaxabletemporarydifferences,exceptinexceptionalcircumstances.Specialcircumstancesinwhichdeferredincometaxassetsordeferredincometaxliabilitiesarenotrecognizedinclude:
?Theinitialrecognitionofgoodwill.?Transactionsoreventsthatareneitherbusinesscombinationsnor,whentheyoccur,affectaccountingprofitandtaxableincome(ordeductiblelosses).Fortaxabletemporarydifferencesrelatedtoinvestmentsinsubsidiaries,associatesandjointventures,deferredincometaxliabilitiesarerecognized,unlesstheCompanycancontrolthetimingofthereversalofthetemporarydifferencesandthetemporarydifferencesarelikelynottobetransferredbackintotheforeseeablefuture.Fordeductibletemporarydifferencesrelatedtoinvestmentsinsubsidiaries,associatesandjointventures,whenthetemporarydifferencesarelikelytobereversedintheforeseeablefutureandarelikelytobeusedtodeductthetaxableincomeofdeductibletemporarydifferencesinthefuture,incometaxassetsarerecognized.Onthebalancesheetdate,deferredincometaxassetsanddeferredincometaxliabilitiesaremeasuredattheapplicabletaxrateduringtheperiodwhentherelevantassetsareexpectedtoberecoveredortherelevantliabilitiesareexpectedtoberecoveredinaccordancewiththeprovisionsofthetaxlaw.Onthebalancesheetdate,theCompanyreviewsthebookvalueofdeferredincometaxassets.Ifitisprobablethatsufficienttaxableincomecannotbeobtainedinthefuturetooffsetthebenefitsofdeferredincometaxassets,thebookvalueofthedeferredincometaxassetsshallbewrittendown.Whenitispossibletoobtainsufficienttaxableincome,thereducedamountshallbereversed.WhentheCompanyhasthestatutoryrighttosettleonanetbasisandintendstosettleonanetbasisortoobtainassetsandpayoffliabilitiessimultaneously,thecurrentincometaxassetsandcurrentincometaxliabilitiesarepresentedatthenetamountafteroffsetting.Onthebalancesheetdate,deferredincometaxassetsanddeferredincometaxliabilitiesarestatedatthenetofoffsettingamountswhenthefollowingconditionsarealsomet:
?Thetaxableentityhasthelegalrighttosettlecurrentincometaxassetsandcurrentincometaxliabilitiesonanetbasis.?Deferredincometaxassetsanddeferredincometaxliabilitiesrelatetoincometaxesleviedbythesametaxationauthorityonthesametaxableentityorondifferenttaxableentities,butineachfutureperiodinwhichitissignificantthatthedeferredincometaxassetsandliabilitiesreverse,thetaxableentitiesinvolvedintendtosettlethecurrentincometaxassetsandliabilitiesonanetbasisortoacquiretheassetsandsettletheliabilitiessimultaneously.
27.Leases
(1)AccountingtreatmentforoperatingleasesAleaseisacontractwherebythelessortransferstherightofusageonanassettothelesseeforconsiderationwithinacertainperiodoftime.Onthecontractcommencementdate,theCompanyevaluateswhetherthecontractisaleaseorincludesalease.Ifonepartyinthecontracttransferstherighttocontroltheuseofoneormoreidentifiedassetswithinacertainperiodinexchangeforconsideration,thecontractisaleaseorincludesalease.Ifthecontractcontainsmultipleseparateleasesatthesametime,theCompanywillsplitthecontractandconductaccountingtreatmentforeachseparatelease.Ifthecontractincludesbothleaseandnon-leaseparts,theCompany,asthelessorandlessee,willsplittheleaseandnon-leasepartsforaccountingtreatmentForrentreductions,exemptions,deferredpaymentsandotherrentalreductionsdirectlycausedbytheCOVID-19epidemicandreachedonexistingleasecontracts,ifthefollowingconditionsaremetatthesametime,theCompanyadoptsasimplifiedmethodforalllease,anddoesnotevaluatewhetherthereisaleasechange.Leaseclassificationisnotreassessed:
?Theleaseconsiderationafterthereductionislessthanorsubstantiallythesameasbeforethereduction.Theleaseconsiderationmaybeundiscountedordiscountedatthediscountratebeforethereduction;?ThereductionisonlyforleasepaymentspayablebeforeJune30th,2022,anincreaseinleasepaymentspayableafterJune30th,2022doesnotaffectmeetingthiscondition,andadecreaseinleasepaymentspayableafterJune30th,2022doesnotsatisfythiscondition;?Theothertermsandconditionsoftheleasehavenotchangedsignificantlyaftertakingintoaccountbothqualitativeandquantitativefactors.
1)TheCompanyasalessee
①Right-of-useassetsOnthebeginningdateoftheleaseterm,theCompanyrecognizestheright-of-useassetsforleasesotherthanshort-termleasesandlow-valueassetleases.Theright-of-useassetsareinitiallymeasuredatcost.Thiscostincludes:
?Initialmeasurementamountofleaseliabilities;?Fortheleasepaymentpaidonorbeforethebeginningoftheleaseterm,ifthereisleaseincentive,therelevantamountofleaseincentiveenjoyedshallbededucted;?TheinitialdirectcostsincurredbytheCompany;?CostsexpectedtobeincurredbytheCompanytodismantleandremovetheleasedasset,torestorethesiteonwhichtheleasedassetislocatedortorestoretheleasedassettoitsagreedconditionunderthetermsofthelease,butdonotincludecoststhatarepartofthecostsincurredtoproducetheinventory.
TheCompanysubsequentlydepreciatesright-of-useassetsusingthestraight-linemethod.Ifitisreasonablycertainthatownershipoftheleasedassetwillbeobtainedattheendoftheleaseterm,theCompanydepreciatestheleasedassetoveritsremainingusefullife;otherwise,theleasedassetisdepreciatedovertheshorteroftheleasetermortheremainingusefullifeoftheleasedasset.FortheprinciplesbywhichtheCompanydetermineswhethertheright-of-useassethasbeenimpaired,pleaserefertoNote“IV.19Impairmentoflong-termassets”.
②LeaseliabilitiesAtthebeginningoftheleaseterm,theCompanyrecognizesleaseliabilitiesforleasesotherthanshort-termleasesandleasesoflow-valueassets.Theleaseliabilityisinitiallymeasuredatthepresentvalueofoutstandingleasepayments.Leasepaymentsinclude:
?Fixedpayments(includingactualfixedpayments),ifthereisaleaseincentive,deducttherelevantamountoftheleaseincentive;?Variableleasepaymentsthatdependonanindexorratio;?TheexpectedpaymentaccordingtotheresidualvalueoftheguaranteeprovidedbytheCompany;?Theexercisepriceofthepurchaseoption,providedthattheCompanyisreasonablycertainthattheoptionwillbeexercised;?Paymentsforexercisingtheoptiontoterminatethelease,providedthattheleasetermreflectsthattheCompanywillexercisetheoptiontoterminatethelease.TheCompanyusestheinterestrateimplicitintheleaseasthediscountrate,butiftheinterestrateimplicitintheleasecannotbereasonablydetermined,theCompany'sincrementalborrowingrateisusedasthediscountrate.TheCompanycalculatestheinterestexpenseoftheleaseliabilityineachperiodoftheleasetermaccordingtothefixedperiodicinterestrateandincludesitinthecurrentprofitandlossorthecostofrelatedassets.Variableleasepaymentsthatarenotincludedinthemeasurementofleaseliabilitiesareincludedinthecurrentprofitandlossorthecostofrelatedassetswhentheyareactuallyincurred.Afterthecommencementdateoftheleaseterm,theCompanyshallre-measuretheleaseliabilitiesandadjustthecorrespondingright-of-useassetsunderthefollowingcircumstances.Ifthebookvalueoftheright-of-useassetshasbeenreducedtozero,buttheleaseliabilitiesstillneedtobefurtherreduced,thedifferenceisincludedinthecurrentprofitandloss:
?Whenthereisachangeintheevaluationresultsofthepurchaseoption,leaserenewaloptionorterminationoption,orwhentheactualexerciseoftheaforementionedoptionsisinconsistentwiththeoriginalevaluationresult,theCompanyshallcalculatetheleasepaymentamountafterthechangeandthereviseddiscountedvalue.Remeasuretheleaseliabilityatthepresentvalueoftheratecalculation;?Whentheactualfixedpaymentchanges,theestimatedpayableamountoftheguaranteedresidualvaluechanges,ortheindexorratiousedtodeterminetheleasepaymentchanges,theCompanyre-measurestheleaseliabilityatthepresentvalueofthechangedleasepaymentsandtheoriginaldiscount
rate.However,wherechangesinleasepaymentsresultingfromchangesinfloatinginterestrates,areviseddiscountrateisusedtocalculatethepresentvalue.
③Short-termleasesandlow-valueassetleasesTheCompanychoosesnottorecognizeright-of-useassetsandleaseliabilitiesforshort-termleasesandlow-valueassetleases,andincludestherelevantleasepaymentsinthecurrentprofitandlossorrelatedassetcostsonastraight-linebasisovereachperiodoftheleaseterm.Short-termleasesrefertoleaseswithaleasetermofnotmorethan12monthsandexcludingpurchaseoptionsonthecommencementdateoftheleaseterm.Alow-valueassetleasereferstoaleasewithalowervaluewhenasingle-leasedassetisabrand-newasset.IftheCompanysubleasesorexpectstosubleasetheleasedassets,theoriginalleaseisnotalow-valueassetlease.
④LeasechangesIftheleasechangesandthefollowingconditionsaremetatthesametime,theCompanywillaccountfortheleasechangeasaseparatelease:
?Theleasemodificationexpandsthescopeoftheleasebyaddingtherighttouseoneormoreleasedassets;?Theincreasedconsiderationisequivalenttotheamountadjustedbytheindividualpriceoftheexpandedpartoftheleasescopeaccordingtothecontract.Iftheleasemodificationisnotaccountedforasaseparatelease,ontheeffectivedateoftheleasemodification,theCompanyre-allocatestheconsiderationofthemodifiedcontract,re-determinestheleaseterm,andre-calculatestheleaseliabilitybasedonthepresentvalueofthemodifiedleasepaymentsandthereviseddiscountrate.Iftheleasemodificationleadstothenarrowingoftheleasescopeortheshorteningoftheleaseterm,theCompanywillreducethebookvalueoftheright-of-useassetsaccordingly,andincludetherelevantgainsorlossesonpartialorcompleteterminationoftheleaseintothecurrentprofitandloss.Ifotherleasechangesresultinre-measurementofleaseliabilities,theCompanyadjuststhebookvalueoftheright-of-useassetsaccordingly.
⑤RentreductionsrelatedtoCOVID-19epidemicForthoseusingthesimplifiedmethodofrentreductionsrelatedtotheCOVID-19epidemic,theCompanydoesnotassesswhetheraleasechangehasoccurred,continuestocalculateinterestexpenseontheleaseliabilityatthesamediscountrateasbeforethereductionsandincludesitincurrentprofitandloss,andcontinuestodepreciateright-of-useassetsonthesamebasisasbeforethereductions.Ifarentreductionoccurs,theCompanytreatsthereducedrentasavariableleasepayment,andreducestherelatedassetcostorexpensebytheamountdiscountedattheundiscountedorpre-reductiondiscountratewhentheoriginalrentpaymentobligationisdischarged,suchaswhenareductionagreementisreached,andadjuststheleaseliabilityaccordingly;iftherentpaymentisdeferred,theCompanyreducestheleaseliabilityrecognizedinpriorperiodswhentheactualpaymentismade.Forshort-termleasesandlow-valueassetleases,theCompanycontinuestoincludetheoriginal
contractualrentalsinthecostorexpenseoftherelevantassetsinthesamewayasbeforetheconcession.Intheeventofrentreductionorexemption,theCompanywilltakethereducedrentasthevariableleasepayment,andwritedowntherelevantassetcostsorexpensesduringthereductionorexemptionperiod;iftherentpaymentisdelayed,theCompanywillrecognizetherentpayableaspayableduringtheoriginalpaymentperiod.Whentheactualpaymentismade,thepayablesrecognizedinthepreviousperiodareoffset.
2)TheCompanyasalessorOntheleasecommencementdate,theCompanyclassifiesleasesintofinancialleasesandoperatingleases.Afinancialleaseisaleasethatessentiallytransfersalmostalltherisksandrewardsassociatedwiththeownershipoftheleasedasset,regardlessofwhetherownershipisultimatelytransferred.Operatingleasesrefertoleasesotherthanfinancialleases.WhentheCompanyactsasasubleaselessor,itclassifiesthesubleasebasedontheright-of-useassetarisingfromtheoriginallease.
AccountingtreatmentofoperatingleasesTheCompanyrecognizesleasereceiptsfromoperatingleasesasrentalincomeusingthestraight-linemethodforeachperiodoftheleaseterm.Initialdirectcostscapitalizedinconnectionwithoperatingleasesareamortizedovertheleasetermonthesamebasisasrentalincomeisrecognizedandarerecognizedincurrentprofitandloss.Variableleasepaymentsnotincludedintheamountofleasereceiptsarerecognizedincurrentprofitandlosswhentheyareactuallyincurred.Whenthereisachangeinoperatingleases,theCompanyaccountsforitasanewleasefromtheeffectivedateofthechange,andtheamountofleasereceiptsreceivedinadvanceorreceivableinrelationtotheleasepriortothechangeistreatedasareceiptunderthenewlease.
(2)Accountingtreatmentoffinanciallease
1)AccountingtreatmentoffinancialleaseOntheleasecommencementdate,theCompanyrecognizesthefinancialleasereceivablesforthefinancialleaseandderecognizesthefinancialleaseassets.WhentheCompanyinitiallymeasuresthefinancialleasereceivables,thenetinvestmentintheleaseisregardedastheentryvalueofthefinancialleasereceivables.Thenetleaseinvestmentisthesumoftheunguaranteedresidualvalueandthepresentvalueoftheleasereceiptsnotyetreceivedatthecommencementdateoftheleaseterm,discountedattheinterestrateimplicitinthelease.TheCompanycalculatesandrecognizesinterestincomeovertheleasetermatafixedperiodicrate.DerecognitionandimpairmentoffinanceleasereceivablesareaccountedforinaccordancewithNote“V.
10.Financialassetsandfinancialliabilities".Variableleasepaymentsnotincludedinthemeasurementofnetinvestmentinleasesarechargedtocurrentprofitandlosswhenactuallyincurred.Ifthefinancialleaseischangedandthefollowingconditionsaremetatthesametime,theCompanywillaccountforthechangeasaseparatelease:
?Thechangeexpandsthescopeoftheleasebyincreasingtherighttouseoneormoreoftheleasedassets;?Theincreasedconsiderationisequivalenttotheamountadjustedbytheindividualpriceoftheexpandedpartoftheleasescopeaccordingtothecontract.Ifthemodificationofafinancialleaseisnotaccountedforasaseparatelease,theCompanyshalldealwiththemodifiedleaseunderthefollowingcircumstances:
?Ifthechangehadbeeneffectiveontheinceptiondateoftheleaseandtheleasewouldhavebeenclassifiedasanoperatinglease,theCompanyshallaccountforitasanewleasefromtheeffectivedateoftheleasechangeandusethenetinvestmentintheleasepriortotheeffectivedateasthebookvalueoftheleasedasset;Ifthechangehadbeeneffectiveattheinceptiondateoftheleaseandtheleasewouldhavebeenclassifiedasafinancelease,theCompanyshallaccountforitinaccordancewiththepolicyonmodificationorrenegotiationofcontractsasdescribedinNote“V.10.Financialassetsandfinancialliabilities".
2)RentreductionsrelatedtoCOVID-19epidemic?ForoperatingleasesthatusethesimplifiedmethodofrentreductionsrelatedtotheCOVID-19epidemic,theCompanycontinuestorecognizetheoriginalcontractualrentalsasleaseincomeinthesamemannerasbeforethereductions;whererentreductionsoccur,theCompanytreatsthereducedrentalsasvariableleasepaymentsandreducesleaseincomeintheperiodofthereductions;wherethecollectionofrentalsisdeferred,theCompanyrecognizestherentalsreceivableintheoriginalcollectionperiodandreducesthereceivablesrecognizedinpriorperiodswhentheyareactuallyreceived.ForfinancialleasesusingthesimplifiedmethodofrentreductionrelatedtotheCOVID-19epidemic,theCompanycontinuestocalculateinterestandrecognizeitasleaseincomeatadiscountrateconsistentwiththeratepriortothereduction.Intheeventofarentreduction,theCompanytreatsthereducedrentasavariableleasepaymentand,uponwaiveroftheoriginalrighttoreceiverent,suchastheconclusionofareductionagreement,reducestheoriginallyrecognizedleaseincomebytheamountdiscountedattheundiscountedorpre-reductiondiscountrate,withanyshortfallchargedtoinvestmentincomeandthefinancialleasereceivableadjustedaccordingly;intheeventofdeferredreceiptofrent,theCompanyreducesthepreviouslyrecognizedfinancialleasereceivableuponactualreceiptIntheeventofdelayedcollectionofrentals,theCompanywillreducethefinancialleasereceivablerecognizedinthepreviousperioduponactualreceipt.
28.Othersignificantaccountingpoliciesandaccountingestimates
MajoraccountingestimatesandjudgementsWhenpreparingfinancialstatements,theCompany'sManagementneedstouseestimatesandassumptions,whichwillaffecttheapplicationofaccountingpoliciesandtheamountofassets,liabilities,incomeandexpenses.Actualconditionsmaydifferfromtheseestimates.TheManagementoftheCompanycontinuouslyevaluatesthejudgmentofkeyassumptionsanduncertaintiesinvolvedintheestimation,andtheimpactofchangesinaccountingestimateswillberecognizedinthecurrentand
futureperiods.Themainuncertaintiesintheestimatedamountareasfollows:
(1)MeasurementofexpectedcreditlossesTheCompanycalculatestheexpectedcreditlossthroughthedefaultriskexposureandtheexpectedcreditlossrate,anddeterminestheexpectedcreditlossratebasedonthedefaultprobabilityandthedefaultlossrate.Whendeterminingtheexpectedcreditlossrate,theCompanyusesinternalhistoricalcreditlossexperienceandotherdata,andadjuststhehistoricaldataincombinationwithcurrentconditionsandforward-lookinginformation.Whenconsideringforward-lookinginformation,theindicatorsusedbytheCompanyincludetheriskofeconomicdownturn,theexpectedincreaseinunemploymentrate,changesintheexternalmarketenvironment,technologicalenvironmentandcustomerconditions.TheCompanyregularlymonitorsandreviewsassumptionsrelatedtothecalculationofexpectedcreditlosses.
(2)ProvisionfordeclineinvalueofinventoriesAsmentionedinNote“V.11.Inventory”,theCompanyregularlyestimatesthenetrealizablevalueoftheinventory,andrecognizesthedifferenceininventorycosthigherthanthenetrealizablevalue.Whenestimatingthenetrealizablevalueofinventory,theCompanyconsidersthepurposeofholdingtheinventoryandusestheavailableinformationasthebasisforestimation,includingthemarketpriceoftheinventoryandtheCompany'spastoperatingcosts.Theactualsellingprice,completioncost,salesexpensesandtaxesoftheinventorymaychangeaccordingtochangesinmarketsalesconditions,productiontechnology,ortheactualuseoftheinventory.Therefore,theamountofinventorydepreciationreservemaychangeaccordingtotheabovereasons.Adjustmentstotheinventoryimpairmentwillaffectthecurrentprofitandloss.
(3)ImpairmentofotherassetsexceptinventoryandfinancialassetsAsmentionedinNote“V.19Long-termAssetImpairment”,theCompanyperformsanimpairmentassessmentonassetsotherthaninventoryandfinancialassetsonthebalancesheetdatetodeterminewhethertherecoverableamountoftheassethasfallentoalowerlevelthanitsbookvalue.Ifthesituationshowsthatthebookvalueofthelong-termassetsmaynotbefullyrecovered,therelevantassetswillbedeemedtobeimpairedandtheimpairmentlosswillberecognizedaccordingly.Therecoverableamountisthehigherofthenetvalueofthefairvalueoftheasset(orassetgroup)minusthedisposalexpensesandthepresentvalueoftheasset(orassetgroup)'sexpectedfuturecashflow.BecausetheCompanycannotreliablyobtainthepublicmarketpriceofassets(orassetgroups),andcannotreliablyandaccuratelyestimatethefairvalueofassets.Therefore,theCompanyregardsthepresentvalueoftheexpectedfuturecashflowastherecoverableamount.Whenestimatingthepresentvalueoffuturecashflows,itisnecessarytomakeasignificantjudgmentontheoutput,sellingprice,relatedoperatingcostsoftheproductsproducedbytheasset(orassetgroup),andthediscountrateusedincalculatingthepresentvalue.TheCompanywilluseallavailablerelevantinformationwhenestimatingtherecoverableamount,includingthepredictionofoutput,sellingpriceandrelatedoperatingcostsbasedonreasonableandsupportableassumptions.
(4)Depreciationandamortizationofassetssuchasfixedassetsandintangibleassets
AsdescribedinNote“V.15.Fixedassets”andNote“V.18.Intangibleassets”,theCompanyshallaccruedepreciationforthefixedassetsandamortizationforintangibleassetswithintheusefullifeafterconsideringtheirresidualvalues.TheCompanyregularlyreviewstheusefullifeofrelatedassetstodeterminetheamountofdepreciationandamortizationexpensestobeincludedineachreportingperiod.TheusefullifeofassetsisdeterminedbytheCompanybasedonpastexperiencewithsimilarassetsandincombinationwithanticipatedtechnologicalchanges.Ifthepreviousestimateschangesignificantly,thedepreciationandamortizationexpenseswillbeadjustedinthefuture.
(5)DeferredincometaxassetsWhenitisestimatedthatsufficienttaxableincomewillbeavailableinfutureperiodstoutilizetheunrecoveredtaxlossesanddeductibletemporarydifferences,theCompanycalculatesandrecognizestherelateddeferredincometaxassettotheextentthatitisprobablethattaxableincomewillbeavailableagainstwhichtheunrecoveredtaxlossesanddeductibletemporarydifferencescanbeutilized,andonthebasisoftheincometaxrateapplicabletotheperiodinwhichtheassetisexpectedtoberecovered.TheCompanyisrequiredtousejudgmenttoestimatethetimingandamountoffuturetaxableincomeandtomakereasonableestimatesandjudgmentsabouttheapplicablefutureincometaxratesinaccordancewithcurrenttaxpoliciesandotherrelevantpoliciestodeterminetheamountofdeferredincometaxassetstoberecognized.IfthetimingandamountofactualprofitstobegeneratedinfutureperiodsortheactualapplicableincometaxratediffersfromtheManagement'sestimates,suchdifferenceswillhaveanimpactontheamountofdeferredincometaxassets.
29.Changesinsignificantaccountingpoliciesandaccountingestimates
(1)Changesinsignificantaccountingpolicies?Applicable□Notapplicable
| Thecontentandreasonsforchangesinaccountingpolicies | Approvalprocedure | Note |
InterpretationofAccountingStandardsforBusinessEnterprisesNo.15OnDecember30
th,2021,theMinistryofFinanceissuedInterpretationofAccountingStandardsforBusinessEnterprisesNo.15(CaiKuai[2021]No.35,hereinafterreferredtoas"InterpretationNo.15"),inwhich"Accountingtreatmentfortheexternalsaleofproductsorby-productsproducedbyanenterprisebeforeafixedassetreachesitsintendeduseablestateorduringtheresearchanddevelopmentprocess"and"Judgmentononerouscontracts"areeffectivefromJanuary1
st
,2022.InterpretationNo.15providesthatanenterprisethatsellstothepublicproductsorby-productsproducedbeforeafixedassetreachesitsintendeduseablestateorduringtheresearchanddevelopmentshallbeaccountedfortherevenueandcostsrelatedtotrialsalesseparatelyinaccordancewithapplicableaccountingstandardssuchasAccountingStandardsforBusinessEnterprisesNo.14-RevenueandAccountingStandardsforBusinessEnterprisesNo.1-Inventories,andshallbeincludedinthecurrentprofitandloss.Thenetamountofrevenuerelatedtotrialsalesafteroffsettingrelatedcostsshouldnotbewrittendownagainstthecostoffixedassetsorresearchanddevelopmentexpenditure.InterpretationNo.15ononerouscontractsreferstocontractswherethecoststhatwouldinevitablybeincurredinperformingthecontractualobligationsexceedtheexpectedeconomicbenefits.Thecoststhatwouldinevitablybeincurredinperformingacontractualobligationshouldreflectthelowestnetcostofexitingthatcontract,i.e.thelowerofthecostofperformingthatcontractorthecompensationorpenaltiesincurredforfailuretoperformthatcontract.Thecosttotheenterpriseofperformingthecontractincludestheincrementalcostofperformingthecontractandtheapportionedamountofothercostsdirectlyrelatedtotheperformanceofthecontract,suchastheapportionedamountofdirectlabour,directmaterials,
depreciationoffixedassetsusedtoperformthecontract,etc.TheimplementationoftheaboveprovisionshasnothadamaterialimpactonthefinancialpositionandresultsofoperationsoftheCompany.
InterpretationofAccountingStandardsforBusinessEnterprisesNo.16OnNovember30
th,2022,theMinistryofFinanceissuedInterpretationofAccountingStandardforBusinessEnterprisesNo.16(CaiKuai[2022]No.31,hereinafterreferredtoas"InterpretationNo.16"),inwhich"Accountingtreatmentfordeferredincometaxrelatingtoassetsandliabilitiesarisingfromasingletransactionforwhichnoexemptionfrominitialrecognitionapplies"iseffectivefromJanuary1
st
,2023;"Accountingtreatmentfortheincometaxeffectofdividendsrelatedtofinancialinstrumentsclassifiedasequityinstrumentsbytheissuer"and"Accountingtreatmentforanenterprisethatmodifiesacash-settledshare-basedpaymenttoanequity-settledshare-basedpayment"iseffectivefromthedateofpublication.InterpretationNo.16onsingletransactions(includingleasetransactionsinwhichthelesseeinitiallyrecognizesaleaseliabilityattheinceptiondateoftheleaseandrecordsitintheright-of-useasset,andtransactionsinwhichanestimatedliabilityisrecognizedandrecordedinthecostoftherelatedassetbecauseoftheexistenceofanabandonmentobligation,suchasafixedasset,etc.,hereinafterreferredtoassingletransactionstowhichthisinterpretationapplies)thatarenotbusinesscombinations,thataffectneitheraccountingprofitnortaxableincome(ordeductibleloss)atthetimeofthetransactionandwheretheinitialrecognitionofassetsandliabilitiesresultsintaxabletemporarydifferencesanddeductibletemporarydifferencesinequalamounts,andtheprovisionsinArticles11(2)and13ofAccountingStandardsforBusinessEnterprisesNo.18-IncomeTaxconcerningtheexemptionofdeferredincometaxliabilitiesanddeferredincometaxassetsforinitialrecognitionarenotapplicable.Theenterpriseshouldrecognizethecorrespondingdeferredincometaxliabilitiesanddeferredincometaxassetsforthetaxabletemporarydifferencesanddeductibletemporarydifferencesarisingfromtheinitialrecognitionofassetsandliabilitiesforthetransactionwhenthetransactionoccurs,inaccordancewiththerelevantprovisionsofAccountingStandardsforBusinessEnterprisesNo.18-IncomeTaxandotherrelevantregulations,respectively.InterpretationNo.16regardingfinancialinstrumentsclassifiedasequityinstruments(suchasperpetualbondsclassifiedasequityinstruments,etc.)byanenterprise(referringtotheissuer,thesamebelow)inaccordancewiththeprovisionsofAccountingStandardsforBusinessEnterprisesNo.37-PresentationofFinancialInstruments,etc.,andtherelateddividendexpenseisdeductedbeforecorporateincometaxinaccordancewiththerelevantprovisionsofthetaxpolicy,theenterpriseshallrecognizetheincometaxeffectrelatedtothedividendwhenrecognizingthedividendpayable.Theincometaxeffectofthedividendisusuallymoredirectlyrelatedtothetransactionoreventinthepastthatgaverisetothedistributableprofit,andtheenterpriseshouldrecognizetheincometaxeffectofthedividendincurrentprofitandlossorinanitemofowners'equity(includinganitemofothercomprehensiveincome)inamannerconsistentwiththeaccountingtreatmentusedinthepastforthetransactionoreventthatgaverisetothedistributableprofit.Forprofitsdistributedfromtransactionsoreventspreviouslygivingrisetogainsorlosses,theincometaxeffectofsuchdividendsshouldbechargedtocurrentprofitandloss;forprofitsdistributedfromtransactionsoreventspreviouslyrecognizedinowners'equity,theincometaxeffectofsuchdividendsshouldbechargedtotheitemofowners'equity.InterpretationNo.16onthemodificationbyanenterpriseofthetermsandconditionsinacash-settledshare-basedpaymentagreementtomakeitanequity-settledshare-basedpayment.Atthedateofmodification,theenterpriseshallmeasuretheequity-settledshare-basedpaymentatthefairvalueoftheequityinstrumentgrantedonthatdate,recordtheservicesacquiredincapitalsurplusandderecognizetheliabilityrecognizedforthecash-settledshare-basedpaymentatthedateofmodification,withthedifferencebetweenthetwochargedtocurrentprofitorloss.Thesameapplieswherethemodificationoccursaftertheendofthewaitingperiod.Ifthewaitingperiodisextendedorshortenedasaresultofthe
modification,theenterpriseshouldaccountfortheaboveinaccordancewiththemodifiedwaitingperiod(withoutregardtotherelevantaccountingprovisionsforadversemodifications).Iftheenterprisecancelsacash-settledshare-basedpayment,grantsanequity-settledshare-basedpaymentanddeterminesatthedateofgrantoftheequityinstrumentthatitisintendedtoreplacethecancelledcash-settledshare-basedpayment(exceptwhereitiscancelledbecausetheconditionsforexercisingtherighthavenotbeenmet),theaboveprovisionsofthisInterpretationapply.
(2)Changesofsignificantaccountingestimates?Applicable□Notapplicable
| Thecontentandreasonsforchangesinaccountingestimates | Approvalprocedure | Pointofcommencementofapplication | Note |
| Fixedassetcategories,depreciablelivesandresidualvaluerates | SixthMeetingoftheNinthSessionoftheBoardofDirectors | July1st,2022 | |
| Affectedstatementitems | Amount | ||
| Accumulateddepreciation | 271,947,090.70 | ||
| Operatingcosts | 266,457,899.30 | ||
| Administrativeexpenses | 5,489,191.40 | ||
| Totalprofits | 271,947,090.70 | ||
| Netprofit | 271,947,090.70 | ||
Inrecentyears,theCompanyhascontinuouslyincreaseditsinvestmentinfixedassets,andthroughtechnicalrenovationandinnovationofthemainequipmentproductionline,andregularmaintenanceofequipment,theperformanceoftheequipmenthasbeenimprovedandtheusefullifeoffixedassetshasbeenextended.Inaccordancewiththeprincipleofprudenceinaccounting,andinaccordancewiththeprovisionsofChapter4,Article15ofAccountingStandardsforBusinessEnterprisesNo.4-FixedAssets,"Anenterpriseshallreasonablyrecognizetheusefullifeandestimatednetresidualvalueoffixedassetsbasedonthenatureanduseofthefixedassets".TheCompanyhaschangedtheaccountingestimatesforthecategoriesoffixedassets,depreciablelivesandresidualvalueratestobringthecategoriesoffixedassets,depreciablelivesandresidualvalueratesclosertotheiractuals,basedonthenatureanduseoffixedassets.TheCompanyheldtheSixthMeetingoftheNinthSessionoftheBoardofDirectorsonOctober26
th
,2022andconsideredandapprovedtheProposalonChangeinAccountingEstimates.TheCompanywillimplementthechangedaccountingestimateeffectiveJuly1
st
,2022.ThechangeinaccountingestimatewillhavenoimpactontheCompany'sscopeofprincipalactivitiesandwillreducetheCompany'sdepreciationbyRMB270millionin2022.
30.Others
TerminationofoperationsisaseparatelydistinguishablecomponentthatmeetsoneofthefollowingconditionsandwhichhasbeendisposedofbytheCompanyorclassifiedbytheCompanyasheld-for-sale.
1)Thecomponentstandsforanindependentmainbusinessoraseparatemajorbusinessarea;
2)Thecomponentisapartofthedisposalplanofanindependentmainbusinessoramajorbusinessarea;Thecomponentispartofalinkedplanfortheproposeddisposalofanindependentmainbusinessoraseparatemajorbusinessarea;
3)Thiscomponentisasubsidiaryacquiredspecificallyforresale.Theprofitandlossfromcontinuingoperationsandtheprofitandlossfromdiscontinuedoperationsareseparatelylistedintheincomestatement.Operationalgainsandlossessuchasimpairmentlossesandreversalamountanddisposalgainsandlossesfromdiscontinuedoperationsarereportedasdiscontinuedoperationgainsandlosses.Forthediscontinuedoperationsreportedinthecurrentperiod,theCompany
adjuststheinformationpreviouslydisclosedascontinuingoperationsprofitsandlossesinthecurrentfinancialstatementsasthediscontinuedoperationsprofitsandlossesforthecomparableaccountingperiod.
VI.Taxes
1.Maintaxcategoriesandtaxrates
| Typeoftax | Taxbase | Taxrate |
| Value-addedtax(VAT) | OutputVATiscalculatedonthebasisoftheincomefromthesaleofgoodsandtaxableservicesinaccordancewiththeprovisionsofthetaxlaw,andaftersubtractingthedeductibleinputVATforthecurrentperiod,thedifferenceisVATpayable | 6%,9%,13% |
| Citymaintenanceandconstructiontax | BasedonVATactuallypaid | 7%,5% |
| Corporateincometax | Basedontaxableprofit | 25% |
Disclosureofinformationiftherearetaxableentitieswithdifferentcorporateincometaxrates
| Nameoftaxableentity | Incometaxrates |
VII.Notestotheitemsoftheconsolidatedfinancialstatements
1.Cashandcashequivalents
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Cashonhand | 24,334.93 | |
| Cashinbank | 1,296,662,683.20 | 6,299,074,728.55 |
| Othercashandcashequivalents | 164,482,958.67 | 2,531,996,674.37 |
| Total | 1,461,145,641.87 | 8,831,095,737.85 |
| Totalamountrestrictedinuseduetomortgage,pledgeorfreeze | 164,482,958.67 | 2,531,996,674.37 |
Othernotes:
Restricteduseofcashandcashequivalents
| Item | Closingbalance | Openingbalance |
| Marginforbankacceptancebill | 163,297,958.67 | 1,492,236,674.37 |
| Marginforletterofcredit | 125,000,000.00 | |
| Loandeposit | 760,000.00 | |
| Timedepositornoticedepositforguarantee | 174,000,000.00 | |
| Restricteddeposit | 1,185,000.00 | 740,000,000.00 |
| Total | 164,482,958.67 | 2,531,996,674.37 |
2.Notesreceivable
(1)Presentationofnotesreceivablebycategory
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Bankacceptancebill | 139,442,122.88 |
| Commercialacceptancebill | 290,265,051.82 | 1,540,482,182.07 |
| Total | 429,707,174.70 | 1,540,482,182.07 |
Unit:RMB
| Category | Closingbalance | Openingbalance | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Ratio | Amount | Accrualratio | Amount | Ratio | Amount | Accrualratio | |||
| Including： | ||||||||||
| Including： | ||||||||||
Iftheprovisionforbaddebtsonnotesreceivableisbasedonthegeneralmodelofexpectedcreditlosses,pleasediscloseinformationabouttheprovisionforbaddebtsinthesamemannerasthedisclosureforotherreceivables.
□Applicable?Notapplicable
(2)NotesreceivablepledgedbytheCompanyattheendoftheperiod
Unit:RMB
| Item | Amountpledgedattheendoftheperiod |
| Bankacceptancebill | 139,442,122.88 |
| Total | 139,442,122.88 |
(3)NotesreceivableendorsedordiscountedbytheCompanyattheendoftheperiodandnotyetdueatthebalancesheetdateUnit:RMB
| Item | Amountderecognizedattheendoftheperiod | Amountnotderecognizedattheendoftheperiod |
| Commercialacceptancebill | 216,259,842.27 | |
| Total | 216,259,842.27 |
3.Accountsreceivable
(1)AccountsreceivabledisclosurebycategoryUnit:RMB
| Category | Closingbalance | Openingbalance | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Percentage | Amount | Accrualratio | Amount | Percentage | Amount | Accrualratio | |||
| Accountsreceivableforwhichbaddebtprovisionismadeonanindividualbasis | 353,419,325.80 | 25.82% | 353,419,325.80 | 100.00% | 352,985,418.30 | 47.20% | 352,985,418.30 | 100.00% | ||
| Including： | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionismadeonaportfoliobasis | 1,015,413,788.67 | 74.18% | 118,182,892.61 | 11.64% | 897,230,896.06 | 394,916,528.33 | 52.80% | 138,065,745.62 | 34.96% | 256,850,782.71 |
| Including： | ||||||||||
| Portfolio1:Agingportfolio | 1,015,413,788.67 | 74.18% | 118,182,892.61 | 11.64% | 897,230,896.06 | 394,916,528.33 | 52.80% | 138,065,745.62 | 34.96% | 256,850,782.71 |
| Total | 1,368,833,114.47 | 100.00% | 471,602,218.41 | 897,230,896.06 | 747,901,946.63 | 100.00% | 491,051,163.92 | 256,850,782.71 | ||
Provisionforbaddebtsonanindividualbasis：353,419,325.80Unit:RMB
| Name | Closingbalance | |||
| Bookbalance | Baddebtprovision | Accrualratio | Reasonsforaccrual | |
| BenxiNanfenXinheMetallurgicalFurnaceMaterialCo.,Ltd. | 48,196,244.68 | 48,196,244.68 | 100.00% | Productionhasceasedandisnotexpectedtoberecovered |
| BrillianceAutomotiveGroupHoldingsCo.,Ltd. | 305,223,081.12 | 305,223,081.12 | 100.00% | Bankruptcyreorganizationwithnoexpectedrecovery |
| Total | 353,419,325.80 | 353,419,325.80 | ||
Provisionforbaddebtsonanindividualbasis：
Unit:RMB
| Item | Closingbalance | |||
| Bookbalance | Baddebtprovision | Accrualratio | Reasonsforaccrual | |
Provisionforbaddebtsonaportfoliobasis：
Unit:RMB
| Item | Closingbalance | ||
| Bookbalance | Baddebtprovision | Accrualratio | |
| Within1year(inclusive) | 892,035,646.81 | 8,920,356.48 | 1.00% |
| 1to2years(inclusive) | 14,717,227.92 | 1,471,722.79 | 10.00% |
| 2to3years(inclusive) | 1,087,625.75 | 217,525.15 | 20.00% |
| Over3years | 107,573,288.19 | 107,573,288.19 | 100.00% |
| Total | 1,015,413,788.67 | 118,182,892.61 | |
Notesfordeterminingthebasisoftheportfolio:
Iftheprovisionforbaddebtsonaccountsreceivableisbasedonthegeneralmodelofexpectedcreditlosses,pleasediscloseinformationabouttheprovisionforbaddebtsinthesamemannerasthedisclosureforotherreceivables:
□Applicable?NotapplicableDisclosurebyagingUnit:RMB
| Aging | Bookbalance |
| Within1year(inclusive) | 892,035,646.81 |
| 1to2years | 14,717,227.92 |
| 2to3years | 5,931,757.76 |
| Over3years | 456,148,481.98 |
| 3to4years | 456,148,481.98 |
| Total | 1,368,833,114.47 |
(2)Provisionforbaddebtsaccrued,recoveredorreversedinthecurrentperiod
Provisionforbaddebtsinthecurrentperiod:
Unit:RMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Accrual | Recoveryorreversal | Write-off | Others | |||
| Provisionforbaddebtsonaccountsreceivable | 491,051,163.92 | 9,155,504.25 | 28,604,449.76 | 471,602,218.41 | ||
| Total | 491,051,163.92 | 9,155,504.25 | 28,604,449.76 | 471,602,218.41 | ||
Ofwhichtheamountofprovisionforbaddebtsrecoveredorreversedinthecurrentperiodismaterial:
Unit:RMB
| Nameofthecompany | Amountrecoveredorreversed | Recoverymethods |
(3)Actualwrite-offofaccountsreceivableinthecurrentperiod
Unit:RMB
| Item | Write-offamount |
| ChangzhouForeignEnterpriseGoods&MaterialsGeneralCompany | 9,008,967.00 |
| ShenyangWeldedPipeFactory | 3,991,372.27 |
| BenxiCivilAffairsHongdaMetalRestructuringPlant | 2,386,307.13 |
| YanjiRongjunBuildingMaterialsSalesDepartment | 2,295,095.34 |
| ZhuhaiSpecialEconomicZoneHuaxinyueIndustrialCo.,Ltd. | 1,883,089.58 |
| DalianFreeTradeZoneBendaSpecialSteelCo.,Ltd. | 1,464,685.47 |
| WafangdianBengangSpecialSteelSalesCo.,Ltd. | 992,110.82 |
| DalianFreeTradeZoneMaofengInternationalIndustryandTradeCompany | 766,111.09 |
| TianjinBengangSpecialSteelSalesCo.,Ltd. | 749,215.44 |
| DalianEconomicandTechnologicalDevelopmentZoneBengangSpecialSteelSalesOffice | 650,313.34 |
| BenxiBranchofDalianHardwareandMineralImportandExportCompany | 613,819.73 |
| HefeiZhongyaCementMachineFactory | 435,086.35 |
| ChengduBenteBuildingMaterialsManagementCompany | 345,428.35 |
| MaterialSupplyandMarketingCompanyofShenyangEnvironmentalProtectionEquipmentIndustryCompany | 343,523.05 |
| LingningLinyuanSteel-tubeFactory | 340,167.23 |
| Others | 2,339,157.57 |
| Total | 28,604,449.76 |
Ofwhichsignificantwrite-offsofaccountsreceivable:
Unit:RMB
| Nameofthecompany | Natureofaccountsreceivable | Write-offamount | Reasonsforwrite-off | Write-offproceduresperformed | Whethertheamountarisesfromrelatedtransactions |
| ChangzhouForeignEnterpriseGoods&MaterialsGeneralCompany | Paymentforgoods | 9,008,967.00 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| ShenyangWeldedPipeFactory | Paymentforgoods | 3,991,372.27 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| BenxiCivilAffairsHongdaMetalRestructuringPlant | Paymentforgoods | 2,386,307.13 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| YanjiRongjunBuildingMaterialsSalesDepartment | Paymentforgoods | 2,295,095.34 | Cancelled | LegaladviceandBoardofDirectorsapproval | No |
| ZhuhaiSpecialEconomicZoneHuaxinyueIndustrialCo.,Ltd. | Paymentforgoods | 1,883,089.58 | Cancelled | LegaladviceandBoardofDirectorsapproval | No |
| DalianFreeTradeZoneBendaSpecialSteelCo.,Ltd. | Paymentforgoods | 1,464,685.47 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| WafangdianBengangSpecialSteelSalesCo.,Ltd. | Paymentforgoods | 992,110.82 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| DalianFreeTradeZoneMaofengInternationalIndustryandTradeCompany | Paymentforgoods | 766,111.09 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| TianjinBengangSpecialSteelSalesCo.,Ltd. | Paymentforgoods | 749,215.44 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| DalianEconomicandTechnologicalDevelopmentZoneBengangSpecialSteelSalesOffice | Paymentforgoods | 650,313.34 | Cancelled | LegaladviceandBoardofDirectorsapproval | No |
| BenxiBranchofDalianHardwareandMineralImportandExportCompany | Paymentforgoods | 613,819.73 | Cancelled | LegaladviceandBoardofDirectorsapproval | No |
| HefeiZhongyaCementMachine | Paymentforgoods | 435,086.35 | Cancelled | LegaladviceandBoard | No |
| Nameofthecompany | Natureofaccountsreceivable | Write-offamount | Reasonsforwrite-off | Write-offproceduresperformed | Whethertheamountarisesfromrelatedtransactions |
| Factory | ofDirectorsapproval | ||||
| ChengduBenteBuildingMaterialsManagementCompany | Paymentforgoods | 345,428.35 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| MaterialSupplyandMarketingCompanyofShenyangEnvironmentalProtectionEquipmentIndustryCompany | Paymentforgoods | 343,523.05 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| LingningLinyuanSteel-tubeFactory | Paymentforgoods | 340,167.23 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| Others | Paymentforgoods | 2,339,157.57 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| Total | 28,604,449.76 |
Notesonwrite-offofaccountsreceivable:
(4)Accountsreceivableofthetopfiveclosingbalancescollectedbyarrears
Unit:RMB
| Nameofthecompany | Closingbalance | Percentageoftotalclosingbalanceofaccountsreceivable | Closingbalanceofbaddebtprovision |
| TheFirst | 663,311,074.79 | 48.46% | 6,633,110.75 |
| TheSecond | 305,223,081.12 | 22.30% | 305,223,081.12 |
| TheThird | 73,094,699.54 | 5.34% | 730,947.00 |
| TheFourth | 51,257,341.26 | 3.74% | 1,756,550.97 |
| TheFifth | 48,196,244.68 | 3.52% | 48,196,244.68 |
| Total | 1,141,082,441.39 | 83.36% |
4.Receivablesfinancing
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Notesreceivable | 137,591,996.02 | 1,530,735,647.38 |
| Total | 137,591,996.02 | 1,530,735,647.38 |
Changesinreceivablesfinancinginthecurrentperiodandchangesinfairvalue
□Applicable?NotapplicableIftheprovisionforimpairmentofreceivablesfinancingisbasedonthegeneralmodelofexpectedcreditlosses,pleasediscloseinformationabouttheprovisionforimpairmentbyreferringtothedisclosureforotherreceivablesasfollows:
□Applicable?NotapplicableOthernotes:
Notesreceivableendorsedordiscountedatyear-endandnotyetdueatthebalancesheetdate
| Item | Amountderecognizedatyear-end | Amountnotderecognizedatyear-end |
| Bankacceptancebill | 7,682,157,083.95 | |
| Commercialacceptancebill | ||
| Total | 7,682,157,083.95 |
5.Prepayments
(1)PrepaymentsarepresentedbyagingUnit:RMB
| Aging | Closingbalance | Openingbalance | ||
| Amount | Percentage | Amount | Percentage | |
| Within1year | 1,235,907,044.32 | 99.10% | 977,541,107.55 | 98.31% |
| 1to2years | 8,892,828.10 | 0.71% | 16,681,487.73 | 1.68% |
| 2to3years | 2,301,638.78 | 0.18% | 147,750.36 | 0.01% |
| Over3years | 76,237.13 | 0.01% | ||
| Total | 1,247,177,748.33 | 994,370,345.64 | ||
Notestothereasonswhyprepaymentsagedoveroneyearandofsignificantamounthavenotbeensettledinatimelymanner:
Asattheendofthereportingperiod,therewasnosignificantprepaymentagedmorethanoneyear.
(2)Topfiveprepaymentswithclosingbalances,groupedbyprepaidobjects
| Nameofthecompany | Closingbalance | Aging | Percentageoftotalclosingbalanceofprepayments(%) |
| TheFirst | 398,341,075.40 | Within1year | 31.94 |
| TheSecond | 102,919,025.91 | Within1year | 8.25 |
| TheThird | 88,438,260.66 | Within1year | 7.09 |
| TheFourth | 75,243,235.25 | Within1year | 6.03 |
| TheFifth | 62,721,935.31 | Within1year | 5.03 |
| Total | 727,663,532.53 | —— | 58.34 |
Othernotes:
6.Otherreceivables
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Interestreceivable | 2,523,993.39 | |
| Otherreceivables | 127,198,692.92 | 163,413,287.02 |
| Total | 127,198,692.92 | 165,937,280.41 |
(1)Interestreceivable
1)ClassificationofinterestreceivableUnit:RMB
| Item | Closingbalance | Openingbalance |
| Timedeposit | 2,523,993.39 | |
| Total | 2,523,993.39 |
(2)Otherreceivables
1)ClassificationofotherreceivablesbynatureofpaymentUnit:RMB
| Natureofpayment | Closingbookbalance | Openingbookbalance |
| Accountcurrent | 181,771,075.61 | 224,540,231.45 |
| Others | 9,560,814.07 | 11,572,865.95 |
| Total | 191,331,889.68 | 236,113,097.40 |
2)Provisionforbaddebts
Unit:RMB
| Baddebtprovision | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossesforthenext12months | Expectedcreditlossesovertheentirelife(Notcredit-impaired) | Expectedcreditlossesovertheentirelife(Credit-impaired) | ||
| BalanceasatJanuary1st,2022 | 526,800.70 | 6,305,393.56 | 65,867,616.12 | 72,699,810.38 |
| BalanceasatJanuary1st,2022inthecurrentperiod | ||||
| ——Transfertostage2 | -64,969.07 | 64,969.07 | ||
| ——Transfertostage3 | -114,780.42 | 114,780.42 | ||
| Accrualinthecurrentperiod | 388,830.08 | -4,901,909.83 | -276,396.56 | -4,789,476.31 |
| Baddebtprovision | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossesforthenext12months | Expectedcreditlossesovertheentirelife(Notcredit-impaired) | Expectedcreditlossesovertheentirelife(Credit-impaired) | ||
| Write-offinthecurrentperiod | 3,774,307.31 | 3,774,307.31 | ||
| Otherchanges | -2,830.00 | -2,830.00 | ||
| BalanceasatDecember31st,2022 | 850,661.71 | 1,353,672.38 | 61,928,862.67 | 64,133,196.76 |
Changesinthebookbalanceoftheprovisionforlosseswithasignificantamountofchangeintheperiod
□Applicable?NotapplicableDisclosurebyagingUnit:RMB
| Aging | Bookbalance |
| Within1year(inclusive) | 85,596,605.22 |
| 1to2years | 38,267,869.02 |
| 2to3years | 3,519,908.21 |
| Over3years | 63,947,507.23 |
| 3to4years | 63,947,507.23 |
| Total | 191,331,889.68 |
3)Provisionforbaddebtsaccrued,recoveredorreversedinthecurrentperiod
Provisionforbaddebtsinthecurrentperiod:
Unit:RMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Accrual | Recoveryorreversal | Write-off | Others | |||
| Baddebtprovisionforotherreceivables | 72,699,810.38 | -4,789,476.31 | 3,774,307.31 | 2,830.00 | 64,133,196.76 | |
| Total | 72,699,810.38 | -4,789,476.31 | 3,774,307.31 | 2,830.00 | 64,133,196.76 | |
Ofwhichtheamountofprovisionforbaddebtsreversedorrecoveredinthecurrentperiodismaterial:
Unit:RMB
| Nameofthecompany | Amountreversedorrecovered | Recoverymethods |
4)Actualwrite-offofotherreceivablesinthecurrentperiod
Unit:RMB
| Item | Write-offamount |
| Write-offofotherreceivables | 3,774,307.31 |
Ofwhichsignificantwrite-offsofotherreceivables:
Unit:RMB
| Nameofthecompany | Natureofotherreceivables | Write-offamount | Reasonsforwrite-off | Write-offproceduresperformed | Whethertheamountarisesfromrelatedtransactions |
| BenxiManchuAutonomousCounty | Paymentforgoods | 2,202,434.85 | Asuspendedcompanythatisunreachableforalongtimewithout | LegaladviceandBoardof | No |
| Nameofthecompany | Natureofotherreceivables | Write-offamount | Reasonsforwrite-off | Write-offproceduresperformed | Whethertheamountarisesfromrelatedtransactions |
| DibangConcreteCo.,Ltd. | businesstransactionsandincludedinthemanagementofaccountwrite-offs | Directorsapproval | |||
| LimingFarmofBenxiForestryDepartmentofShenyangMiningBureau | Paymentforgoods | 225,088.76 | Cancelled | LegaladviceandBoardofDirectorsapproval | No |
| BenxiLifaNewBuildingMaterialsCo.,Ltd. | Paymentforgoods | 186,772.35 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| BenxiIronandSteelRecyclingMaterialsPlant | Paymentforgoods | 131,098.24 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| BenxiXihuDistrictHuafengSmeltingPlant | Paymentforgoods | 100,150.00 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| BenxiFuledoPipeCo.,Ltd. | Paymentforgoods | 39,904.04 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| BenxiXihuDistrictXiujiangPaperProductsFactory | Paymentforgoods | 32,942.48 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| BenxiPlasticMiningandMetallurgyMachineryFactory | Paymentforgoods | 31,257.51 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| XihuTarChemicalPlant | Paymentforgoods | 21,309.78 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| BenxiIronandSteel(Group)ChintBuildingMaterialsCo.,Ltd. | Paymentforgoods | 18,673.20 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | Yes |
| BengangCrudeFuelDivisionDistributionCompany | Paymentforgoods | 18,001.73 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| Nameofthecompany | Natureofotherreceivables | Write-offamount | Reasonsforwrite-off | Write-offproceduresperformed | Whethertheamountarisesfromrelatedtransactions |
| ComprehensivePlantofOxygenPlantofBenxiIronandSteel | Paymentforgoods | 18,000.00 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| TheSecondSmallRollingMillofBenxiIronandSteel | Paymentforgoods | 17,522.80 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| MetalProcessingPlantofMaterialSupplyDepartmentofBenxiIronandSteelCo.,Ltd. | Paymentforgoods | 16,554.16 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| AutoPartsBranchofBenxiIronandSteelCo.,Ltd. | Paymentforgoods | 12,165.92 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| BengangSheetProcessingPlant | Paymentforgoods | 11,093.60 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| BengangPrimaryRollingMiniMill | Paymentforgoods | 9,355.68 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| BengangPrimaryRolledPlateProcessingPlant | Paymentforgoods | 8,963.60 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| BenxiShenquanCompany | Paymentforgoods | 8,763.52 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| Others | Paymentforgoods | 664,255.09 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinthemanagementofaccountwrite-offs | LegaladviceandBoardofDirectorsapproval | No |
| Total | 3,774,307.31 |
Notestowrite-offofotherreceivables:
5)Otherreceivablesofthetopfiveclosingbalancescollectedbyarrears
Unit:RMB
| Nameofthecompany | Natureofpayment | Closingbalance | Aging | Percentageoftotalclosingbalanceofotherreceivables | Closingbalanceofbaddebtprovision |
| TheFirst | Accountcurrent | 13,028,492.10 | 1-2years | 6.81% | 433,910.93 |
| TheSecond | Accountcurrent | 11,612,008.77 | Over1-3years | 6.07% | 11,612,008.77 |
| TheThird | Accountcurrent | 5,176,720.00 | Within1year | 2.71% | 51,767.20 |
| TheFourth | Accountcurrent | 4,760,949.45 | Within1year | 2.49% | 47,609.49 |
| TheFifth | Accountcurrent | 4,609,686.93 | Within1year | 2.41% | 46,096.87 |
| Total | 39,187,857.25 | 20.49% | 12,191,393.26 |
7.Inventories
WhethertheCompanyisrequiredtocomplywiththedisclosurerequirementsoftherealestateindustryNo
(1)Classificationofinventories
Unit:RMB
| Item | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionfordeclineinvalueofinventoriesorimpairmentofcontractperformancecosts | Bookvalue | Bookbalance | Provisionfordeclineinvalueofinventoriesorimpairmentofcontractperformancecosts | Bookvalue | |
| Rawmaterials | 4,215,260,584.25 | 24,954,852.46 | 4,190,305,731.79 | 4,730,515,761.34 | 26,986,533.69 | 4,703,529,227.65 |
| Work-in-process | 2,070,182,298.44 | 18,271,254.09 | 2,051,911,044.35 | 2,105,832,905.07 | 25,390,821.52 | 2,080,442,083.55 |
| Goodsinstock | 2,236,715,664.20 | 15,203,965.16 | 2,221,511,699.04 | 3,439,625,765.66 | 33,430,937.88 | 3,406,194,827.78 |
| Total | 8,522,158,546.89 | 58,430,071.71 | 8,463,728,475.18 | 10,275,974,432.07 | 85,808,293.09 | 10,190,166,138.98 |
(2)ProvisionforthedeclineinvalueofinventoriesandprovisionforimpairmentofcontractperformancecostsUnit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance | ||
| Accrual | Others | Reversalorcarry-forward | Others | |||
| Rawmaterials | 26,986,533.69 | 2,031,681.23 | 24,954,852.46 | |||
| Work-in-process | 25,390,821.52 | 18,271,254.09 | 25,390,821.52 | 18,271,254.09 | ||
| Goodsinstock | 33,430,937.88 | 15,203,965.16 | 33,430,937.88 | 15,203,965.16 | ||
| Total | 85,808,293.09 | 33,475,219.25 | 60,853,440.63 | 58,430,071.71 | ||
8.Othercurrentassets
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Prepaidtaxes | 166,991,140.45 | 444,009,128.46 |
| VATinputtax | 228,449,995.81 | 310,939,065.10 |
| Total | 395,441,136.26 | 754,948,193.56 |
Othernotes:
9.Long-termequityinvestments
Unit:RMB
| Investee | Openingbalance(Bookvalue) | Increase/decreaseinthecurrentperiod | Closingbalance(Bookvalue) | Closingbalanceofprovisionforimpairment | |||||||
| Increaseininvestment | Decreaseininvestment | Gainsandlossesoninvestmentsrecognizedundertheequitymethod | Othercomprehensiveincomeadjustments | Otherchangesinequity | Cashdividendsandprofitsdeclared | Impairmentprovision | Others | ||||
| I.Jointventures | |||||||||||
| II.Associates | |||||||||||
| BenxiIronandSteelBaojin(Shenyang)AutomobileNewMaterialTechnologyCo.,Ltd. | 48,230,077.75 | -233,763.14 | 47,996,314.61 | ||||||||
| ZheJiangBengang-EliteIron&SteelProcessingCo.,Ltd. | 2,981,784.07 | 52,678.50 | 3,034,462.57 | ||||||||
| Subtotal | 2,981,784.07 | 48,230,077.75 | -181,084.64 | 51,030,777.18 | |||||||
| Total | 2,981,784.07 | 48,230,077.75 | -181,084.64 | 51,030,777.18 | |||||||
Othernotes:
10.Otherequityinstrumentinvestments
Unit:RMB
| Item | Closingbalance | Openingbalance |
| EquityofSuzhouLongbenMetalMaterialCo.,Ltd. | 3,998,216.04 | 3,888,980.00 |
| EquityofZhonggangShanghaiSteelProcessingCo.,Ltd. | ||
| EquityofNortheastSpecialSteelGroupCo.,Ltd. | 1,016,420,266.27 | 1,037,735,849.00 |
| EquityofGuangzhouBenpuAutomobilePanelSalesCo.,Ltd. | 200,000.00 | |
| WuhanYuanhongTradingCo.,Ltd. | 200,000.00 | |
| Total | 1,020,418,482.31 | 1,042,024,829.00 |
Segmentaldisclosureofinvestmentsinnon-tradingequityinstrumentsinthecurrentperiodUnit:RMB
| Item | Dividendincomerecognized | Accumulatedgains | Accumulatedlosses | Transferfromothercomprehensiveincometoretainedearnings | Reasonsfordesignationasatfairvaluethroughothercomprehensiveincome | Reasonsfortransferofothercomprehensiveincometoretainedearnings |
| EquityofSuzhouLongbenMetalMaterialCo.,Ltd. | 109,236.04 | |||||
| EquityofZhonggangShanghaiSteelProcessingCo.,Ltd. | 14,414,693.00 | |||||
| EquityofNortheastSpecialSteelGroupCo.,Ltd. | 21,315,582.73 | |||||
| EquityofGuangzhouBenpuAutomobilePanelSalesCo.,Ltd. | 25,416.40 | -25,416.40 | Disposal | |||
| WuhanYuanhongTradingCo.,Ltd. | Disposal | |||||
| Total | 134,652.44 | 35,730,275.73 | -25,416.40 |
Othernotes:
Note:①TheCompanyholds15%equityinZhonggangShanghaiSteelProcessingCo.,Ltd.
②TheCompany's9.93%equityinNortheastSpecialSteelGroupCo.,Ltd.hasbeenpledgedtoBankofDalianCo.,Ltd.ShenyangBranchandareleaseofpledgeagreementwassignedwithBankofDalianCo.,Ltd.ShenyangBranchinFebruary2022,andtheapplicationforreleaseofregistrationofthepledgeofequityinterestisbeingprocessed.
11.Fixedassets
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Fixedassets | 24,836,556,422.90 | 25,480,674,048.94 |
| Total | 24,836,556,422.90 | 25,480,674,048.94 |
(1)Detailsoffixedassets
Unit:RMB
| Item | Housesandbuildings | Machineryandequipment | Transportationandotherequipment | Total |
| I.Originalbookvalue： | ||||
| 1.Openingbalance | 13,244,653,376.33 | 49,481,748,950.04 | 920,958,736.87 | 63,647,361,063.24 |
| 2.Increaseinthecurrentperiod | 220,247,656.28 | 1,628,388,714.05 | -339,256,459.51 | 1,509,379,910.82 |
| (1)Purchase | 3,315,146.56 | 43,608,939.48 | 1,949,125.85 | 48,873,211.89 |
| (2)Transferredfromconstructioninprogress | 215,069,360.24 | 1,205,698,394.58 | 39,738,944.11 | 1,460,506,698.93 |
| (3)Increasefrombusinesscombinations | ||||
| (4)Others | 1,863,149.48 | 379,081,379.99 | -380,944,529.47 | |
| 3.Decreaseinthecurrentperiod | 198,389,769.71 | 572,892,785.47 | 7,055,264.92 | 778,337,820.10 |
| (1)Disposalorscrapping | 13,727,420.22 | 188,889,936.22 | 4,593,296.36 | 207,210,652.80 |
| (2)Decreasefrombusinesscombinations | 184,662,349.49 | 384,002,849.25 | 2,461,968.56 | 571,127,167.30 |
| 4.Closingbalance | 13,266,511,262.90 | 50,537,244,878.62 | 574,647,012.44 | 64,378,403,153.96 |
| II.Accumulateddepreciation | ||||
| 1.Openingbalance | 6,411,622,637.46 | 31,016,196,563.08 | 645,389,717.80 | 38,073,208,918.34 |
| 2.Increaseinthecurrentperiod | 266,279,988.34 | 1,898,941,569.41 | -223,423,660.39 | 1,941,797,897.36 |
| (1)Accrual | 265,622,268.77 | 1,621,405,745.52 | 54,769,883.07 | 1,941,797,897.36 |
| (2)Others | 657,719.57 | 277,535,823.89 | -278,193,543.46 | |
| 3.Decreaseinthecurrentperiod | 116,138,455.85 | 445,443,403.26 | 5,056,321.49 | 566,638,180.60 |
| (1)Disposalorscrapping | 8,981,517.95 | 157,477,897.86 | 3,579,135.16 | 170,038,550.97 |
| (2)Decreasefrombusinesscombinations | 107,156,937.90 | 287,965,505.40 | 1,477,186.33 | 396,599,629.63 |
| 4.Closingbalance | 6,561,764,169.95 | 32,469,694,729.23 | 416,909,735.92 | 39,448,368,635.10 |
| III.Provisionforimpairment | ||||
| 1.Openingbalance | 84,098,414.32 | 9,379,681.64 | 93,478,095.96 | |
| 2.Increaseinthecurrentperiod | ||||
| (1)Accrual |
3.Decreaseinthecurrentperiod
| 3.Decreaseinthecurrentperiod |
| (1)Disposalorscrapping |
4.Closingbalance
| 4.Closingbalance | 84,098,414.32 | 9,379,681.64 | 93,478,095.96 | |
| IV.Bookvalue | ||||
| 1.Closingbookvalue | 6,620,648,678.63 | 18,058,170,467.75 | 157,737,276.52 | 24,836,556,422.90 |
| 2.Openingbookvalue | 6,748,932,324.55 | 18,456,172,705.32 | 275,569,019.07 | 25,480,674,048.94 |
(2)Temporarilyidlefixedassets
Unit:RMB
| Item | Originalbookvalue | Accumulateddepreciation | Provisionforimpairment | Bookvalue | Notes |
| Housesandbuildings | 223,416,300.48 | 139,189,651.03 | 84,098,414.32 | 128,235.13 | |
| Machineryandequipment | 100,086,005.34 | 89,198,289.39 | 9,379,681.64 | 1,508,034.31 |
| Transportation | 1,042,125.89 | 1,042,125.89 | ||
| Total | 324,544,431.71 | 229,430,066.31 | 93,478,095.96 | 1,636,269.44 |
(3)Fixedassetsleasedoutthroughoperatingleases
Unit:RMB
| Item | Closingbookvalue |
| Housesandbuildings | 1,239,002.14 |
(4)Fixedassetswithoutpropertitlecertificate
Unit:RMB
| Item | Bookvalue | Reasonsfornon-completionoftitlecertificates |
| Housesandbuildings | 1,142,595,483.45 | Inprocess |
Othernotes:
12.ConstructioninprogressUnit:RMB
| Item | Closingbalance | Openingbalance |
| Constructioninprogress | 3,158,195,899.65 | 2,431,761,889.08 |
| Constructionmaterials | 2,420,212.05 | |
| Total | 3,158,195,899.65 | 2,434,182,101.13 |
(1)Detailsofconstructioninprogress
Unit:RMB
| Item | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
| SpecialSteelElectricFurnaceCapacityReplacementProject | 1,437,078,751.92 | 1,437,078,751.92 | 975,649,876.97 | 975,649,876.97 | ||
| CCPPPowerGenerationProject | 662,907,316.06 | 662,907,316.06 | ||||
| SpecialSteelRollingMillRenovationProject | 470,182,411.88 | 470,182,411.88 | 225,662,005.25 | 225,662,005.25 | ||
| EnvironmentalProtectionRenovationofSheetRawMaterialPlant | 165,792,014.40 | 165,792,014.40 | 10,144,284.63 | 10,144,284.63 | ||
| EnergyGeneralPlantNo.1ConverterGasTankSystemTransformationProject | 66,477,477.13 | 66,477,477.13 | ||||
| FirstColdRollingTransformationProject | 90,087,329.61 | 90,087,329.61 | ||||
| 360SquareMeterSinteringMachineWasteHeatUtilization | 82,730,000.00 | 82,730,000.00 | 56,547,049.50 | 56,547,049.50 | ||
| CaixiSpecialSteelFeedingStationofSteelPlateScrapPlant | 51,959,719.57 | 51,959,719.57 | 38,375,436.67 | 38,375,436.67 | ||
| Steelmaking1#2#3#7#ConverterNewThreeTimesDustRemovalEnergyMainPlantSupportingProject | 42,834,455.31 | 42,834,455.31 | 391,744.50 | 391,744.50 | ||
| TheOverallImprovementofBenxiSteel’sManufacturing | 39,756,485.12 | 39,756,485.12 | 36,748,743.10 | 36,748,743.10 | ||
| No.4-6ConverterEnvironmentalProtectionRenovationProject | 24,470,633.70 | 24,470,633.70 | ||||
| RenovationoftheDesulphurizationSystemoftheCokingProcessintheIronmakingGeneralPlant | 23,070,618.10 | 23,070,618.10 | ||||
| PlateNo.1DryQuenchingSystemBoostingModificationandUnitNo.33Relocation | 20,249,501.21 | 20,249,501.21 | ||||
| InformationTechnologyConstructionintheIronZoneofBengangPlates | 18,023,984.15 | 18,023,984.15 | 778,685.00 | 778,685.00 | ||
| OverallImprovementofBengang’sInformationTechnologyInfrastructurePlatform | 17,745,620.12 | 17,745,620.12 | 17,108,420.12 | 17,108,420.12 | ||
| Self-builtDomesticWaterPreparationinthePanelPlantArea | 38,500,000.00 | 38,500,000.00 | ||||
| AdaptiveTransformationofSteelmakingProcessestoReduceIronConsumption | 17,440,611.68 | 17,440,611.68 | 20,492,385.18 | 20,492,385.18 | ||
| PurificationofIandIIvocsExhaustGasTreatment | 16,878,425.31 | 16,878,425.31 | 18,980,000.00 | 18,980,000.00 | ||
| 360SquareMeterSinteringMachine | 92,259,450.24 | 92,259,450.24 | 88,340,997.99 | 88,340,997.99 | ||
| Otherprojects | 547,635,887.33 | 547,635,887.33 | 174,657,466.98 | 174,657,466.98 | ||
| Total | 3,158,195,899.65 | 3,158,195,899.65 | 2,431,761,889.08 | 2,431,761,889.08 | ||
(2)Changesinsignificantconstructioninprogressprojectsinthecurrentperiod
Unit:RMB
| Nameofproject | Budget | Openingbalance | Amountincreasedinthecurrentperiod | Amounttransferredtofixedassetsinthecurrentperiod | Otherdecreasesinthecurrentperiod | Closingbalance | Percentageofcumulativeinvestmentinprojectstobudget | Progress | Accumulatedamountofcapitalizedinterest | Including:Amountofinterestcapitalizedinthecurrentperiod | Capitalizationrateofinterestinthecurrentperiod(%) | Sourceoffund |
| SpecialSteelElectricFurnaceCapacityReplacementProject | 1,923,430,000.00 | 975,649,876.97 | 461,428,874.95 | 1,437,078,751.92 | 7,471.00% | 89 | 8,077,442.20 | 8,077,442.20 | 4.35% | Self-raised | ||
| CCPPPowerGenerationProject | 1,060,000,000.00 | 662,907,316.06 | 50,965,642.63 | 713,872,958.69 | 6,735.00% | 100 | 26,401,127.09 | 11,903,565.01 | 3.12% | Self-raised | ||
| SpecialSteelRollingMillRenovationProject | 823,860,000.00 | 225,662,005.25 | 244,684,106.63 | 163,700.00 | 470,182,411.88 | 6,945.00% | 72 | 13,164,686.38 | 6,394,453.47 | 3.12% | Loansfromfinancialinstitutions | |
| EnvironmentalProtectionRenovationofSheetRawMaterialPlant | 677,043,263.46 | 10,144,284.63 | 155,647,729.77 | 165,792,014.40 | 2,449.00% | 43 | 4,302,198.84 | 4,302,198.84 | 4.35% | Loansfromfinancialinstitutions | ||
| No.1ConverterGasTankSystemModificationProject | 160,860,000.00 | 66,477,477.13 | 54,785,840.22 | 121,263,317.35 | 7,538.00% | 100 | 644,634.60 | 644,634.60 | 4.35% | Loansfromfinancialinstitutions | ||
| FirstColdRollingTransformationProject | 973,010,000.00 | 90,087,329.61 | 90,087,329.61 | 1,514.00% | 81 | 3,831,132.38 | 3,831,132.38 | 4.35% | Loansfromfinancialinstitutions | |||
| 360SquareMeterSinteringMachineWasteHeatUtilization | 91,750,000.00 | 56,547,049.50 | 26,182,950.50 | 82,730,000.00 | 9,210.00% | 95 | Others |
| Nameofproject | Budget | Openingbalance | Amountincreasedinthecurrentperiod | Amounttransferredtofixedassetsinthecurrentperiod | Otherdecreasesinthecurrentperiod | Closingbalance | Percentageofcumulativeinvestmentinprojectstobudget | Progress | Accumulatedamountofcapitalizedinterest | Including:Amountofinterestcapitalizedinthecurrentperiod | Capitalizationrateofinterestinthecurrentperiod(%) | Sourceoffund |
| NewlyConstructed8#Single-StrandSlabCastingMachineSupportingProject | 592,690,759.86 | 78,639,051.12 | 78,639,051.12 | 8,972.00% | 100 | Others | ||||||
| IntegrationofInformationTechnologySystemsintheReorganizationofAnsteelGroupCo.,Ltd. | 232,100,000.00 | 74,719,067.36 | 74,719,067.36 | 3,219.00% | 100 | 1,846,067.36 | 1,846,067.36 | 4.35% | Loansfromfinancialinstitutions | |||
| High-StrengthSteelRenovation | 6,389,880,000.00 | 68,002,169.36 | 68,002,169.36 | 9,326.00% | 100 | Others | ||||||
| CaixiSpecialSteelFeedingStationofSteelPlateScrapPlant | 121,140,000.00 | 38,375,436.67 | 13,584,282.90 | 51,959,719.57 | 4,289.00% | 47 | Others | |||||
| Steelmaking1#2#3#7#ConverterNewThreeTimesDustRemovalEnergyMainPlantSupportingProject | 112,054,271.67 | 391,744.50 | 43,020,692.47 | 577,981.66 | 42,834,455.31 | 3,823.00% | 66 | 959,815.54 | 959,815.54 | 4.35% | Loansfromfinancialinstitutions | |
| TheOverallImprovementofBenxiSteel’s | 56,000,000.00 | 36,748,743.10 | 3,007,742.02 | 39,756,485.12 | 7,099.00% | 93 | Others |
| Nameofproject | Budget | Openingbalance | Amountincreasedinthecurrentperiod | Amounttransferredtofixedassetsinthecurrentperiod | Otherdecreasesinthecurrentperiod | Closingbalance | Percentageofcumulativeinvestmentinprojectstobudget | Progress | Accumulatedamountofcapitalizedinterest | Including:Amountofinterestcapitalizedinthecurrentperiod | Capitalizationrateofinterestinthecurrentperiod(%) | Sourceoffund |
| Manufacturing | ||||||||||||
| 220kVSubstationProject | 313,500,000.00 | 29,491,156.12 | 29,491,156.12 | 5,994.00% | 100 | 811,868.32 | 811,868.32 | 4.35% | Loansfromfinancialinstitutions | |||
| No.4-6ConverterEnvironmentalProtectionRenovationProject | 243,192,029.42 | 24,470,633.70 | 24,470,633.70 | 8,698.00% | 91 | Others | ||||||
| RenovationoftheDesulphurizationSystemoftheCokingProcessintheIronmakingGeneralPlant | 39,250,000.00 | 23,070,618.10 | 23,070,618.10 | 5,878.00% | 20 | Others | ||||||
| SupportfortheOverallImprovementoftheManagementandInformatizationofBengang’sSteelIndustry | 72,630,000.00 | 22,370,000.00 | 22,370,000.00 | 3,080.00% | 100 | Others | ||||||
| PlateNo.1DryQuenchingSystemBoostingModificationandUnitNo.33Relocation | 65,400,000.00 | 20,249,501.21 | 20,249,501.21 | 3,096.00% | 35 | Others |
| Nameofproject | Budget | Openingbalance | Amountincreasedinthecurrentperiod | Amounttransferredtofixedassetsinthecurrentperiod | Otherdecreasesinthecurrentperiod | Closingbalance | Percentageofcumulativeinvestmentinprojectstobudget | Progress | Accumulatedamountofcapitalizedinterest | Including:Amountofinterestcapitalizedinthecurrentperiod | Capitalizationrateofinterestinthecurrentperiod(%) | Sourceoffund |
| InformationTechnologyConstructionintheIronZoneofBengangPlates | 25,550,000.00 | 778,685.00 | 17,245,299.15 | 18,023,984.15 | 7,054.00% | 87 | Others | |||||
| OverallImprovementofBengang’sInformationTechnologyInfrastructurePlatform | 24,300,000.00 | 17,108,420.12 | 637,200.00 | 17,745,620.12 | 7,303.00% | 84 | Others | |||||
| Self-builtDomesticWaterPreparationinthePanelPlantArea | 38,500,000.00 | 17,505,131.99 | 17,505,131.99 | 4,547.00% | 100 | Others | ||||||
| AdaptiveTransformationofSteelmakingProcessestoReduceIronConsumption | 20,492,385.18 | 16,182,585.56 | 3,874,557.86 | 2,616,531.74 | 17,440,611.68 | 8,511.00% | 91 | Others | ||||
| PurificationofIandIIvocsExhaustGasTreatment | 18,980,000.00 | 16,878,425.31 | 16,878,425.31 | 8,893.00% | 94 | Others | ||||||
| 360SquareMeterSinteringMachine | 1,377,230,000.00 | 88,340,997.99 | 3,918,452.25 | 92,259,450.24 | 9,382.00% | 96 | 68,627,433.26 | Loansfromfinancialinstitutions | ||||
| Total | 15,452,842,709.59 | 2,195,314,622.48 | 1,544,466,455.23 | 1,129,221,065.39 | 2,610,560,012.32 | 128,666,405.97 | 38,771,177.72 |
(3)ConstructionmaterialsUnit:RMB
| Item | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
| Constructionmaterials | 2,420,212.05 | 2,420,212.05 | ||||
| Total | 2,420,212.05 | 2,420,212.05 | ||||
Othernotes:
13.Right-of-useassets
Unit:RMB
| Item | Land | Housesandbuildings | Total |
| I.Originalbookvalue | |||
| 1.Openingbalance | 1,132,274,415.17 | 368,465,367.56 | 1,500,739,782.73 |
| 2.Increaseinthecurrentperiod |
3.Decreaseinthecurrentperiod
3.Decreaseinthecurrentperiod
4.Closingbalance
| 4.Closingbalance | 1,132,274,415.17 | 368,465,367.56 | 1,500,739,782.73 |
| II.Accumulateddepreciation | |||
| 1.Openingbalance | 39,904,236.22 | 20,470,298.20 | 60,374,534.42 |
| 2.Increaseinthecurrentperiod | 39,904,236.22 | 20,470,298.20 | 60,374,534.42 |
| (1)Accrual | 39,904,236.22 | 20,470,298.20 | 60,374,534.42 |
3.Decreaseinthecurrentperiod
| 3.Decreaseinthecurrentperiod |
| (1)Disposal |
4.Closingbalance
| 4.Closingbalance | 79,808,472.44 | 40,940,596.40 | 120,749,068.84 |
| III.Provisionforimpairment | |||
| 1.Openingbalance | |||
| 2.Increaseinthecurrentperiod | |||
| (1)Accrual |
3.Decreaseinthecurrentperiod
| 3.Decreaseinthecurrentperiod |
| (1)Disposal |
4.Closingbalance
| 4.Closingbalance | |||
| IV.Bookvalue | |||
| 1.Closingbookvalue | 1,052,465,942.73 | 327,524,771.16 | 1,379,990,713.89 |
| 2.Openingbookvalue | 1,092,370,178.95 | 347,995,069.36 | 1,440,365,248.31 |
Othernotes:
14.Intangibleassets
(1)Intangibleassets
Unit:RMB
| Item | Landuseright | Patentright | Non-patentedtechnology | Softwareandothers | Total |
| I.Originalbookvalue | |||||
| 1.Openingbalance | 367,668,797.84 | 310,401.55 | 367,979,199.39 |
| Item | Landuseright | Patentright | Non-patentedtechnology | Softwareandothers | Total |
| 2.Increaseinthecurrentperiod | |||||
| (1)Purchase | |||||
| (2)Internalresearchanddevelopment | |||||
| (3)Increasefrombusinesscombinations |
3.Decreaseinthecurrentperiod
| 3.Decreaseinthecurrentperiod | 30,783,483.08 | 42,452.83 | 30,825,935.91 | |
| (1)Disposal | 42,452.83 | 42,452.83 | ||
| (2)Decreasefrombusinesscombinations | 30,783,483.08 | 30,783,483.08 | ||
| 4.Closingbalance | 336,885,314.76 | 267,948.72 | 337,153,263.48 | |
| II.Accumulatedamortization | ||||
| 1.Openingbalance | 69,882,153.01 | 175,497.57 | 70,057,650.58 | |
| 2.Increaseinthecurrentperiod | 7,045,540.80 | 26,794.92 | 7,072,335.72 | |
| (1)Accrual | 5,354,681.52 | 26,794.92 | 5,381,476.44 |
3.Decreaseinthecurrentperiod
| 3.Decreaseinthecurrentperiod | 2,719,207.40 | 42,452.83 | 2,761,660.23 | |
| (1)Disposal | 42,452.83 | 42,452.83 | ||
| (2)Decreasefrombusinesscombinations | 2,719,207.40 | 2,719,207.40 | ||
| 4.Closingbalance | 74,208,486.41 | 159,839.66 | 74,368,326.07 | |
| III.Provisionforimpairment | ||||
| 1.Openingbalance | ||||
| 2.Increaseinthecurrentperiod | ||||
| (1)Accrual |
3.Decreaseinthecurrentperiod
| 3.Decreaseinthecurrentperiod |
| (1)Disposal |
4.Closingbalance
| 4.Closingbalance | ||||
| IV.Bookvalue | ||||
| 1.Closingbookvalue | 262,676,828.35 | 108,109.06 | 262,784,937.41 | |
| 2.Openingbookvalue | 297,786,644.83 | 134,903.98 | 297,921,548.81 |
Percentageofintangibleassetsformedthroughinternalresearchanddevelopmenttothebalanceofintangibleassetsattheendofcurrentperiod.
(2)Landuserightwithoutpropertitlecertificate
Unit:RMB
| Item | Bookvalue | Reasonsfornon-completionoftitlecertificates |
| Landuseright | 38,743,466.68 | Inprocess |
Othernotes:
15.Deferredincometaxassets/deferredincometaxliabilities
(1)DeferredincometaxassetsnotoffsetUnit:RMB
| Item | Closingbalance | Openingbalance | ||
| Deductibletemporarydifferences | Deferredincometaxassets | Deductibletemporarydifferences | Deferredincometaxassets | |
| Impairmentofassets | 396,834,109.83 | 99,208,527.46 | 451,808,313.33 | 112,952,078.33 |
| Internalunrealizedprofit | 80,751,325.52 | 20,187,831.38 | 93,178,777.44 | 23,294,694.36 |
| Depreciationoramortizationdifferences | 21,906,259.43 | 5,476,564.86 | ||
| Item | Closingbalance | Openingbalance | ||
| Deductibletemporarydifferences | Deferredincometaxassets | Deductibletemporarydifferences | Deferredincometaxassets | |
| Changesinfairvalueofotherfinancialassetsincludedinothercomprehensiveincome | 21,315,582.73 | 5,328,895.68 | ||
| Others | 46,650,523.04 | 11,662,630.76 | 48,132,843.04 | 12,033,210.76 |
| Total | 545,551,541.12 | 136,387,885.28 | 615,026,193.24 | 153,756,548.31 |
(3)Deferredincometaxliabilitiesnotoffset
Unit:RMB
| Item | Closingbalance | Openingbalance | ||
| Taxabletemporarydifferences | Deferredincometaxliabilities | Taxabletemporarydifferences | Deferredincometaxliabilities | |
| Changesinfairvalueofotherfinancialassetsincludedinothercomprehensiveincome | 109,236.04 | 27,309.01 | ||
| Total | 109,236.04 | 27,309.01 | ||
(4)Unrecognizeddeferredtaxassets
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Deductibletemporarydifferences | 305,224,166.01 | 305,643,743.02 |
| Deductiblelosses | 1,349,817,349.12 | 45,093,302.90 |
| Total | 1,655,041,515.13 | 350,737,045.92 |
(3)Thedeductiblelossofunrecognizeddeferredtaxassetsdueinthefollowingyears
Unit:RMB
| Item | Amountatendofperiod | Amountatbeginningofperiod | Notes |
| Year2022 | 1,001,166.72 | ||
| Year2023 | 6,836,473.11 | 10,336,118.65 | |
| Year2024 | 12,164,389.35 | 13,696,334.51 | |
| Year2025 | 8,257,832.98 | 10,723,063.42 | |
| Year2026 | 6,799,314.77 | 9,336,619.60 | |
| Year2027 | 1,315,759,338.91 | ||
| Total | 1,349,817,349.12 | 45,093,302.90 |
Othernotes:
16.Othernon-currentassets
Unit:RMB
| Item | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
| Prepaidlong-termassets | 110,065,560.68 | 110,065,560.68 | 30,630,858.13 | 30,630,858.13 | ||
| Total | 110,065,560.68 | 110,065,560.68 | 30,630,858.13 | 30,630,858.13 | ||
Othernotes:
17.Short-termborrowings
(1)Classificationofshort-termborrowings
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Guaranteedborrowings | 3,823,088,140.00 | |
| Creditborrowings | 230,000,000.00 | |
| Discountedoutstandingnotes | 49,200,000.00 | |
| Total | 49,200,000.00 | 4,053,088,140.00 |
Notestotheclassificationofshort-termborrowings:
18.Notespayable
Unit:RMB
| Category | Closingbalance | Openingbalance |
| Commercialacceptancebill | 1,407,117,263.33 | 1,724,083,376.48 |
| Bankacceptancebill | 2,242,219,356.03 | 2,286,000,000.00 |
| Domesticletterofcredit | 740,000,000.00 | 625,000,000.00 |
| Total | 4,389,336,619.36 | 4,635,083,376.48 |
ThetotalamountofnotespayabledueandunpaidattheendofthecurrentperiodwasRMB0.
19.Accountspayable
(1)PresentationofaccountspayableUnit:RMB
| Item | Closingbalance | Openingbalance |
| Accountspayableforgoods | 2,650,335,777.91 | 4,272,890,365.57 |
| Accountspayableforlaborservices | 60,238,703.49 | 51,392,037.81 |
| Accountspayableforprojectandequipment | 767,867,762.87 | 557,316,885.80 |
| Repairexpenseandothers | 217,978,219.58 | 470,673,396.71 |
| Total | 3,696,420,463.85 | 5,352,272,685.89 |
(2)Significantaccountspayableagedover1yearUnit:RMB
| Item | Closingbalance | Reasonsfornon-reimbursementorcarry-over |
| Company1 | 12,919,780.46 | Settlementconditionsnotyetmet |
| Total | 12,919,780.46 |
Othernotes:
20.Contractliabilities
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Advanceforgoods | 3,794,115,592.29 | 4,708,188,093.78 |
| Total | 3,794,115,592.29 | 4,708,188,093.78 |
Amountandreasonsforsignificantchangesinthebookvalueduringthereportingperiod.Unit:RMB
| Item | Amountofchange | Reasonsforchange |
| Advanceforgoods | -914,072,501.49 | Mainlyduetolowersteelpricesincurrentyear |
| Total | -914,072,501.49 | —— |
21.Employeebenefitspayable
(1)PresentationofemployeebenefitsUnit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance |
| I.Short-termbenefits | 152,095,376.49 | 2,341,407,303.98 | 2,483,456,317.20 | 10,046,363.27 |
| II.Post-employmentbenefits-definedcontributionplan | 274,990,162.78 | 274,990,162.78 | ||
| II.Terminationbenefits | 44,535,875.82 | 44,535,875.82 | ||
| Total | 152,095,376.49 | 2,660,933,342.58 | 2,802,982,355.80 | 10,046,363.27 |
(2)Presentationofshort-termbenefits
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance |
| 1.Salaries,bonuses,allowancesandsubsidies | 138,746,833.89 | 1,599,823,245.28 | 1,738,570,079.17 | |
| 2.Employeewelfare | 290,726,764.03 | 290,726,764.03 | ||
| 3.Socialinsurance | 194,901,531.45 | 194,901,531.45 | ||
| Workinjuryinsurance | 43,279,967.12 | 43,279,967.12 | ||
| 4.Housingprovidentfund | 6,862,795.00 | 166,439,550.24 | 166,680,036.24 | 6,622,309.00 |
| 5.Unionfundsandstaffeducationfee | 6,485,747.60 | 37,782,328.66 | 40,844,021.99 | 3,424,054.27 |
| 6.Othershort-termbenefits | 51,733,884.32 | 51,733,884.32 | ||
| Total | 152,095,376.49 | 2,341,407,303.98 | 2,483,456,317.20 | 10,046,363.27 |
(3)Presentationofdefinedcontributionplan
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance |
| 1.Basicpensionfund | 266,794,222.70 | 266,794,222.70 | ||
| 2.Unemploymentinsurance | 8,195,940.08 | 8,195,940.08 | ||
| Total | 274,990,162.78 | 274,990,162.78 |
Othernotes:
22.Taxespayable
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Value-addedtax(VAT) | 5,168,511.13 | 29,696,795.33 |
| Corporateincometax | 11,469,020.92 | 35,810,190.67 |
| Personalincometax | 2,546,699.73 | 4,744,348.35 |
| Citymaintenanceandconstructiontax | 175,567.61 | 2,362,795.25 |
| Propertytax | 3,785,986.96 | 16,819,232.89 |
| Landusetax | 1,051,651.99 | 2,878,545.36 |
| Educationsurcharge(includinglocaleducationsurcharge) | 125,405.40 | 1,710,729.40 |
| Others | 20,070,077.04 | 20,245,351.45 |
| Total | 44,392,920.78 | 114,267,988.70 |
Othernotes:
23.OtherpayablesUnit:RMB
| Item | Closingbalance | Openingbalance |
| Otherpayables | 1,247,722,165.47 | 1,348,025,731.98 |
| Total | 1,247,722,165.47 | 1,348,025,731.98 |
(1)Otherpayables
1)PresentationofotherpayablesbynatureofpaymentUnit:RMB
| Item | Closingbalance | Openingbalance |
| Deposit | 2,303,050.00 | 1,556,363.89 |
| Margin | 290,353,044.56 | 127,642,584.79 |
| Currentmoney | 941,440,196.32 | 1,133,934,695.19 |
| Others | 13,625,874.59 | 84,892,088.11 |
| Total | 1,247,722,165.47 | 1,348,025,731.98 |
2)Significantotherpayablesagedover1yearUnit:RMB
| Item | Closingbalance | Reasonsfornon-reimbursementorcarry-over |
| Company1 | 26,293,468.88 | Unsettled |
| Total | 26,293,468.88 |
Othernotes:
24.Non-currentliabilitiesduewithinoneyearUnit:RMB
| Item | Closingbalance | Openingbalance |
| Long-termborrowingsduewithinoneyear | 2,501,169,854.72 | 246,949,595.95 |
| Bondspayableduewithinoneyear | 44,762,324.73 | 25,053,455.40 |
| Leaseliabilitiesduewithinoneyear | 40,318,706.98 | 38,777,466.79 |
| Total | 2,586,250,886.43 | 310,780,518.14 |
Othernotes:
25.OthercurrentliabilitiesUnit:RMB
| Item | Closingbalance | Openingbalance |
| Outputtaxtobetransferred | 493,235,027.03 | 612,064,452.20 |
| Total | 493,235,027.03 | 612,064,452.20 |
Changesinshort-termbondspayable:
Unit:RMB
| Name | Nominalvalue | Issuedate | Termtomaturity | Amountissued | Openingbalance | Issuedinthecurrentperiod | Interestaccruesatnominal | Amortizationofpremiumanddiscount | Currentperiodreimbursement | Closingbalance |
Othernotes:
26.Long-termborrowings
(1)Classificationoflong-termborrowingsUnit:RMB
| Item | Closingbalance | Openingbalance |
| Pledgedborrowings | 622,600,000.00 | |
| Guaranteedborrowings | 360,780,612.70 | 595,921,771.74 |
| Creditborrowings | 1,366,157,689.60 | 3,004,300,000.00 |
| Total | 1,726,938,302.30 | 4,222,821,771.74 |
Notestotheclassificationoflong-termborrowings:
Interestratesonlong-termborrowingsrangedfrom2.10%to4.70%attheendoftheperiod.Othernotes,includinginterestrateranges.
valueTotal
27.Bondspayable
(1)Bondspayable
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Convertiblecorporatebonds | 5,276,502,232.78 | 5,054,251,668.83 |
| Total | 5,276,502,232.78 | 5,054,251,668.83 |
(2)Increaseordecreaseinbondspayable(Excludingotherfinancialinstrumentssuchaspreferencesharesandperpetualdebtclassifiedasfinancialliabilities)
Unit:RMB
| Name | Nominalvalue | Issuedate | Termtomaturity | Amountissued | Openingbalance | Issuedinthecurrentperiod | Interestaccruesatnominalvalue | Amortizationofpremiumanddiscount | Currentperiodreimbursement | Transferofsharesinthecurrentyear | Closingbalance |
| BengangConvertibleBond(Bondcode:127018) | 6,800,000,000.00 | June29th,2020 | 6years | 6,800,000,000.00 | 5,054,251,668.83 | 64,757,392.53 | 287,100,456.48 | 92,500.00 | 5,276,502,232.78 | ||
| Total | —— | 6,800,000,000.00 | 5,054,251,668.83 | 64,757,392.53 | 287,100,456.48 | 92,500.00 | 5,276,502,232.78 | ||||
(3)Descriptionoftheconditionsandtimeforconversionofconvertiblecorporatebonds
ApprovedbyShenzhenStockExchange"ShenZhengShang[2020]No.656",theCompany’sRMB6.80billionconvertiblecorporatebondswerelistedontheShenzhenStockExchangeonAugust4th,2020,andtheabbreviationis"BengangConvertibleBond".Thebondcodeis"127018".Theconversionperiodoftheconvertiblecorporatebondsissuedthistimeisfromthefirsttradingdayaftersixmonthsoftheissuanceoftheconvertiblecorporatebonds(July3
rd,2020)tothematuritydateoftheconvertiblecorporatebonds,thatis,fromJanuary4
th,2021toJune28th,2026.TheinitialconversionpriceoftheconvertiblebondsisRMB5.03pershare.DuringtheperiodfromJanuary1
st
,2022toDecember31
st,2022,theCompany'sA-shareconvertiblebondsofRMB92,500.00wereconvertedintotheCompany'sA-shareordinaryshares,andthenumberofconvertedshareswas20,838.00shares.Ofwhich:
Inthefirstquarterof2022,Bengang'sconvertiblebondsdecreasedbyRMB67,000(670bonds)duetoshareconversion,thenumberofsharesconvertedwas14,698shares,andtheconversionpricewasRMB
4.55pershare;Inthesecondquarterof2022,Bengang'sconvertiblebondsdecreasedbyRMB13,200(132bonds)duetoshareconversion,thenumberofsharesconvertedwas3,029shares,andtheconversionpricewasRMB
3.95pershare;Inthethirdquarterof2022,Bengang'sconvertiblebondsdecreasedbyRMB9,300.00(93bonds)duetoshareconversion,thenumberofsharesconvertedwas2,352shares,andtheconversionpricewasRMB
3.95pershare;Inthefourthquarterof2022,Bengang'sconvertiblebondsdecreasedbyRMB3,000.00(30bonds)duetoshareconversion,thenumberofsharesconvertedwas759shares,andtheconversionpricewasRMB3.95pershare;AsatDecember31
st
,2021,theCompany'sremainingbalanceofconvertiblebondswasRMB5,631,052,100.00(56,310,521bonds).
28.Leaseliabilities
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Leasepayments | 2,191,946,735.27 | 2,285,639,451.89 |
| Unrecognizedfinancingexpenses | -767,279,566.11 | -822,194,815.95 |
| Reclassificationtonon-currentliabilitiesduewithinoneyear | -40,318,706.98 | -38,777,466.79 |
| Total | 1,384,348,462.18 | 1,424,667,169.15 |
Othernotes:
29.Deferredincome
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance | Causesofformation |
| Governmentgrants | 93,106,285.89 | 9,720,000.00 | 60,449,270.38 | 42,377,015.51 | Governmentgrants |
| Total | 93,106,285.89 | 9,720,000.00 | 60,449,270.38 | 42,377,015.51 | -- |
Itemsinvolvinggovernmentgrants:
Unit:RMB
| Liabilitiesitems | Openingbalance | Amountofnewgrantsinthecurrentperiod | Amountchargedtonon-operatingincomeinthecurrentperiod | Amountchargedtoothergainsinthecurrentperiod | Amountofcurrentperiod'seliminationofcostsandexpenses | Otherchanges | Closingbalance | Asset-related/income-related |
| Cold-rolledHigh-strengthSteelRenovationProject | 50,000,000.00 | 50,000,000.00 | Asset-related | |||||
| 7Setsof130TonsCombustionBoilerFlueGasDesulfurizationProjectinPowerPlan | 4,800,000.00 | 4,800,000.00 | Asset-related | |||||
| ResearchandDevelopmentofHigh-strengthSteelfortheThirdGenerationofAutomobiles | 1,740,000.00 | 580,000.00 | 1,160,000.00 | Asset-related | ||||
| AdvancedTreatmentProjectofCarbonFiberWastewaterinDongfengPlantAreaofPlateCokingPlant | 7,600,000.00 | 1,900,000.00 | 5,700,000.00 | Asset-related | ||||
| DesulfurizationandDenitrificationProjectofCoal-firedBoilerinHigh-pressureWorkshopofBengangPowerPlant | 3,000,000.00 | 600,000.00 | 2,400,000.00 | Asset-related | ||||
| PowerPlantThreePowerPlantCogenerationReformProject | 2,000,000.00 | 2,000,000.00 | Asset-related | |||||
| AirPollutionPreventionandControlFund-SecondBurningFinishingDustRemovalUltra-LowEmissionTransformationProject | 1,640,000.00 | 410,000.00 | 1,230,000.00 | Asset-related | ||||
| 2021ManufacturingStrongProvinceSpecialFund | 8,100,000.00 | 8,100,000.00 | Asset-related | |||||
| 2021BenxiTalentandEnterpriseMatchmakingProject | 10,000.00 | 5,000.00 | 5,000.00 | Income-related | ||||
| 2021BenxiPollutionControlandEnergySavingandCarbonReductionSpecialProject | 1,500,000.00 | 1,500,000.00 | Asset-related |
| Liabilitiesitems | Openingbalance | Amountofnewgrantsinthecurrentperiod | Amountchargedtonon-operatingincomeinthecurrentperiod | Amountchargedtoothergainsinthecurrentperiod | Amountofcurrentperiod'seliminationofcostsandexpenses | Otherchanges | Closingbalance | Asset-related/income-related |
| (ConverterGasRecoveryandEfficiencyImprovementProject) | ||||||||
| 2021MunicipalMasterSkillWorkstationFee | 80,000.00 | 2,702.49 | 77,297.51 | Asset-related | ||||
| LiaoningProvince“BaiQianWanTalentsProgram”FundingProjectin2018 | 220,000.00 | 220,000.00 | Asset-related | |||||
| 2018MunicipalSkillMasterWorkstationFee | 58,766.34 | 58,766.34 | Asset-related | |||||
| 2019MunicipalSkillMasterWorkstationFee | 98,084.16 | 28,583.97 | 69,500.19 | Asset-related | ||||
| 2020EcologicalCivilizationConstructionProject(SpecialSteelElectricFurnaceUpgradeProject) | 20,000,000.00 | 20,000,000.00 | Asset-related | |||||
| LiaoningArtisanSubsidy | 21.89 | 18.92 | 2.97 | Asset-related | ||||
| ResearchontheInfluenceMechanismandControlofRareEarthOxideSulfideonAutomobileSteelPlasticity | 457,413.50 | 122,965.00 | 334,448.50 | Asset-related | ||||
| DesignofMetallurgicalSlagSystemforRareEarthSteelandResearchonItsPhysicochemicalProperties | 340,000.00 | 340,000.00 | Income-related | |||||
| ProvincialScienceandTechnologyDepartmentNationalNaturalScienceFoundationofChina-LiaoningProvincialGovernmentJointFundProject | 334,000.00 | 334,000.00 | Income-related | |||||
| 2019ProvincialSkilledMasterWorkstationFee | 200,000.00 | 200,000.00 | Income-related | |||||
| 2020ProvincialSkilledMasterWorkstationFee | 100,000.00 | 100,000.00 | Income-related | |||||
| BasicResearchonNew | 168,000.00 | 168,000.00 | Income-related |
| Liabilitiesitems | Openingbalance | Amountofnewgrantsinthecurrentperiod | Amountchargedtonon-operatingincomeinthecurrentperiod | Amountchargedtoothergainsinthecurrentperiod | Amountofcurrentperiod'seliminationofcostsandexpenses | Otherchanges | Closingbalance | Asset-related/income-related |
| TechnologyofCompositeIronCokeLowCarbonIronmakingCharge | ||||||||
| TheSecondBatchof2021LiaoningFundsonCentralGovernmentGuidingtheDevelopmentofLocalScienceandTechnology | 300,000.00 | 300,000.00 | Income-related | |||||
| LiaoningProvince“BaiQianWanTalentsProgram”FundedProjectin2020 | 50,000.00 | 50,000.00 | Income-related | |||||
| ProvincialScienceandTechnologyDepartment2022LiaoningProvincialNaturalScienceFoundationProgram | 30,000.00 | 30,000.00 | Income-related | |||||
| Total | 93,106,285.89 | 9,720,000.00 | 60,449,270.38 | 42,377,015.51 |
Othernotes:
30.Sharecapital
Unit:RMB
| Openingbalance | Increase/decrease(+,-) | Closingbalance | |||||
| Issueofnewshares | Bonusissue | Transferfromprovidentfund | Others | Subtotal | |||
| Totalshares | 4,108,191,379.00 | 20,838.00 | 20,838.00 | 4,108,212,217.00 | |||
Othernotes:
TheincreaseinthecurrentperiodisduetotheconversionoftheA-shareconvertiblebondsissuedbythecompanyinto20,838.00A-shareordinarysharesinthecurrentperiod.Fordetails,pleaserefertoNote“VI.27Bondspayable”.
31.Otherequityinstruments
(1)InformationofotherfinancialinstrumentssuchaspreferredstocksandperpetualbondsissuedattheendoftheperiodUnit:RMB
| Items | Beginningoftheperiod | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Endoftheperiod | ||||
| Number | Bookvalue | Number | Bookvalue | Number | Bookvalue | Number | Bookvalue | |
| Convertiblecorporatebonds | 56,311,446.00 | 947,882,663.63 | 925.00 | 18,829.61 | 56,310,521.00 | 947,863,834.02 | ||
| Total | 56,311,446.00 | 947,882,663.63 | 925.00 | 18,829.61 | 56,310,521.00 | 947,863,834.02 | ||
Notestothechangesinotherequityinstrumentsinthecurrentperiod,thereasonsforthechanges,andthebasisoftherelatedaccountingtreatment.ThedecreaseinthecurrentperiodisduetotheaccumulativeamountofRMB92,500.00(925bonds)ofA-shareconvertiblebondsissuedbytheCompanybeingconvertedintotheCompany’sA-shareordinaryshares.AsatDecember31
st
,2021,theremainingconvertiblebondbalanceofthecompanyisRMB5,631,052,100.00(56,310,521bonds).Fordetails,pleaserefertoNote“VI.27Bondspayable”.Othernotes:
32.Capitalreserve
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance |
| Capitalpremium(sharecapitalpremium) | 13,156,216,704.27 | 70,987.12 | 13,156,287,691.39 | |
| Othercapitalreserve | 115,917,468.82 | 115,917,468.82 | ||
| Total | 13,272,134,173.09 | 70,987.12 | 13,272,205,160.21 |
Othernotes,includingnotesonchangesinthecurrentperiodandreasonsforchanges:
TheincreaseinthecurrentperiodisduetotheconversionofA-shareconvertiblebondsissuedbytheCompanyintoA-shareordinaryshares.Fordetails,pleaserefertonote“VI.27.Bondspayable”.
33.Othercomprehensiveincome
| Item | Openingbalance | Amountincurredinthecurrentperiod | Closingbalance | |||||
| Amountincurredbeforeincometaxinthecurrentperiod | Less:Transfertoprofitorlossinthecurrentperiodfrompriorperiodschargedtoothercomprehensiveincome | Less:Transfertoretainedearningsinthecurrentperiodfrompriorperiodschargedtoothercomprehensiveincome | Less:Incometaxexpense | Attributabletotheparentcompanyaftertax | Attributabletominorityshareholdersaftertax | |||
| I.Othercomprehensiveincomethatcannotbereclassifiedtoprofitorloss | -21,206,346.69 | -5,301,586.67 | -15,904,760.02 | -15,904,760.02 | ||||
| Changesinfairvalueofinvestmentsinotherequityinstruments | -21,206,346.69 | -5,301,586.67 | -15,904,760.02 | -15,904,760.02 | ||||
| Totalothercomprehensiveincome | -21,206,346.69 | -5,301,586.67 | -15,904,760.02 | -15,904,760.02 | ||||
Othernotes,includingadjustmentstotheeffectiveportionofthecashflowhedgegainorlosstransferredtotheamountinitiallyrecognizedforthehedgeditem:
34.Specialreserve
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance |
| Safetyproductioncost | 337,978.57 | 77,018,511.80 | 75,138,576.60 | 2,217,913.77 |
| Total | 337,978.57 | 77,018,511.80 | 75,138,576.60 | 2,217,913.77 |
Othernotes,includingnotesonchangesinthecurrentperiodandreasonsforchanges.
35.Surplusreserve
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance |
| Statutorysurplusreserve | 1,195,116,522.37 | 1,195,116,522.37 | ||
| Total | 1,195,116,522.37 | 1,195,116,522.37 |
Notesonsurplusreserves,includingchangesinthecurrentperiodandreasonsforthechanges:
36.Undistributedprofits
Unit:RMB
| Item | Currentperiod | Priorperiod |
| Adjustmentsofthebeginningdistributedprofits | 2,977,306,297.64 | 2,692,018,405.40 |
| Add:Netprofitfortheperiodattributabletoownersoftheparentcompany | -1,232,976,557.37 | 2,500,582,902.58 |
| Less:Withdrawalofstatutorysurplusreserve | 234,010,992.52 | |
| Dividendspayableonordinaryshares | 2,464,914,827.40 | 1,981,284,017.82 |
| Otherfactors | 25,416.40 | |
| Undistributedprofitattheendoftheperiod | -720,559,670.73 | 2,977,306,297.64 |
Detailsofadjustmentstoundistributedprofitatthebeginningoftheperiod:
1)TheretrospectiveadjustmentduetotheAccountingStandardsforBusinessEnterprisesanditsrelatednewprovisionsaffectedtheopeningundistributedprofitbyRMB0.00.
2)Asaresultofthechangeinaccountingpolicy,theopeningundistributedprofitwasaffectedbyRMB0.00.
3)Asaresultofthecorrectionofamaterialaccountingerror,theopeningundistributedprofitwasaffectedbyRMB0.00.
4)ThechangeinscopeofconsolidationduetothesamecontrolaffectedopeningundistributedprofitbyRMB0.00.
5)TheaggregateofotheradjustmentsaffectedtheopeningundistributedprofitofRMB0.00.
37.Operatingincomeandoperatingcost
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | ||
| Income | Cost | Income | Cost | |
| Mainoperations | 59,395,642,984.38 | 59,110,682,153.73 | 69,992,675,798.60 | 64,770,421,744.20 |
| Otheroperations | 3,220,978,643.22 | 3,148,652,700.99 | 7,919,469,182.86 | 7,121,176,592.76 |
| Total | 62,616,621,627.60 | 62,259,334,854.72 | 77,912,144,981.46 | 71,891,598,336.96 |
Whetherthelowerofauditednetprofitbeforeorafterextraordinarygainorlossisnegative
□Yes?No
Revenue-relatedinformation:
Unit:RMB
| Classificationofcontracts | Division1 | Division2 | Incomefrommainoperations | Incomefromotheroperations | Total |
| Bytypeofcommodity | |||||
| Including： |
Byregionofoperation
| Byregionofoperation | 59,395,642,984.38 | 3,220,978,643.22 | 62,616,621,627.60 | |
| Including： | ||||
| Domestic | 54,363,209,958.37 | 3,220,978,643.22 | 57,584,188,601.59 | |
| Abroad | 5,032,433,026.01 | 5,032,433,026.01 | ||
| Bymarketorcustomertype | ||||
| Including： |
Bytypeofcontract
| Bytypeofcontract |
| Including： |
Classifiedbythetimeofcommoditytransfer
| Classifiedbythetimeofcommoditytransfer | 59,395,642,984.38 | 3,220,978,643.22 | 62,616,621,627.60 | |
| Including： | ||||
| Recognizeatacertainpointintime | 59,395,642,984.38 | 3,218,410,482.41 | 62,614,053,466.79 | |
| Recognizewithinacertaintime | 2,568,160.81 | 2,568,160.81 | ||
| Bydurationofcontract | ||||
| Including： |
Bysaleschannel
| Bysaleschannel |
| Including： |
Total
| Total | 59,395,642,984.38 | 3,220,978,643.22 | 62,616,621,627.60 |
Informationrelatingtoperformanceobligations:
None.Informationrelatingtothetransactionpriceapportionedtotheremainingperformanceobligation:
TheamountofrevenuecorrespondingtoperformanceobligationsthathavebeencontractedforbutnotyetperformedornotyetcompletedattheendofthereportingperiodisRMB0.00,ofwhichRMBXisexpectedtoberecognizedasrevenueintheXyear,RMBXisexpectedtoberecognizedasrevenueintheXyearandRMBisexpectedtoberecognizedasrevenueintheXyear.Othernotes:
38.TaxesandsurchargesUnit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Citymaintenanceandconstructiontax | 8,247,520.23 | 123,495,868.43 |
| Educationsurcharge | 6,202,547.48 | 88,373,442.32 |
| Propertytax | 81,251,574.97 | 81,377,911.78 |
| Landusetax | 13,148,324.89 | 13,696,962.53 |
| Stampduty | 59,436,033.58 | 82,245,033.15 |
| Environmentaltax | 37,955,614.65 | 41,124,449.80 |
| Others | 199,254.76 | 1,146,895.68 |
| Total | 206,440,870.56 | 431,460,563.69 |
Othernotes:
39.Sellingexpenses
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Importandexportagencyfee | 62,722,202.78 | 73,807,602.10 |
| Employeebenefits | 37,325,748.94 | 35,270,978.16 |
| Packagefee | 10,634,173.84 | 6,901,048.55 |
| Others | 17,807,571.24 | 25,414,936.76 |
| Total | 128,489,696.80 | 141,394,565.57 |
Othernotes:
40.Administrativeexpenses
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Employeebenefits | 319,515,626.55 | 656,796,852.87 |
| Repairexpense | 159,772,788.05 | 249,469,415.56 |
| Heatingfee | 60,603,595.23 | 91,825,534.38 |
| Depreciation | 40,266,699.01 | 42,367,710.99 |
| Landusecharges | 39,904,236.24 | 39,930,546.94 |
| Sewagecharges | 8,639,505.26 | 14,522,765.23 |
| Sewagecharges | 1,820,505.40 | 7,059,455.17 |
| Others | 32,557,698.71 | 85,267,160.96 |
| Total | 663,080,654.45 | 1,187,239,442.10 |
Othernotes:
41.ResearchanddevelopmentexpensesUnit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Depreciation,materialsandbenefits,etc. | 58,088,008.14 | 56,401,594.44 |
| Total | 58,088,008.14 | 56,401,594.44 |
Othernotes:
42.FinancialexpensesUnit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Interestexpenses | 599,359,597.96 | 1,007,595,231.75 |
| Interestincome | -80,619,490.18 | -393,818,460.36 |
| Exchangeloss | -3,956,001.44 | -86,313,266.83 |
| Otherexpenditure | 8,286,059.01 | 9,130,130.50 |
| Total | 523,070,165.35 | 536,593,635.06 |
Othernotes:
43.OtherincomeUnit:RMB
| Sourcesofotherincome | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Governmentgrants | 68,613,890.38 | 66,345,976.64 |
| Sourcesofotherincome | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Taxcredits | 3,408,920.09 | |
| Personaltaxrebates | 278,020.01 | |
| Total | 72,300,830.48 | 66,345,976.64 |
44.Investmentincome
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Investmentincomefromlong-termequityinvestmentsaccountedforundertheequitymethod | -181,084.64 | 520,432.46 |
| Investmentincomefromthedisposaloflong-termequityinvestments | 88,020,044.39 | 1,434,393.28 |
| Investmentincomefromthedisposaloffinancialassetsheldfortrading | -6,558,780.75 | -124,911,004.89 |
| Gainfromremeasurementofremainingequityatfairvalueafterlossofcontrol | 4,154,883.39 | |
| Gainfromdebtrestructuring | 1,274,270.98 | |
| Others | 2,879,850.07 | 2,436,869.33 |
| Total | 89,589,183.44 | -120,519,309.82 |
Othernotes:
45.Creditimpairmentlosses
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Baddebtlossesonotherreceivables | 4,789,476.31 | -5,336,416.67 |
| Baddebtlossesonaccountsreceivable | -9,155,504.25 | -2,417,959.10 |
| Total | -4,366,027.94 | -7,754,375.77 |
Othernotes:
46.Assetsimpairmentlosess
Unit:RMB
| Item | Amountincurredintheperiod | Amountincurredinthepriorperiod |
| II.Lossondeclineinvalueofinventoriesandimpairmentlossoncontractperformancecosts | -33,475,219.25 | -58,821,759.40 |
| V．Impairmentlossonfixedassets | -54,849,575.62 | |
| Total | -33,475,219.25 | -113,671,335.02 |
Othernotes:
47.AssetsdisposalgainsUnit:RMB
| Source | Amountincurredintheperiod | Amountincurredinthepriorperiod |
| Gainorlossonthedisposaloffixedassetsnotclassifiedasheldforsale | 3,648,546.62 | 130,675.05 |
| Total | 3,648,546.62 | 130,675.05 |
48.Non-operatingincomeUnit:RMB
| Item | Amountincurredintheperiod | Amountincurredinthepriorperiod | Amountrecordedinnon-recurringgainsandlossesduringthecurrentperiod |
| Gainsondestructionandretirementofnon-currentassets | 19,686,518.10 | 2,606,854.39 | 19,686,518.10 |
| Liquidateddamages | 82,285.55 | 82,285.55 | |
| Unpayableaccountspayable | 17,144,884.54 | 17,144,884.54 | |
| Others | 3,217,256.20 | 5,176,371.41 | 3,217,256.20 |
| Total | 40,130,944.39 | 7,783,225.80 | 40,130,944.39 |
Governmentgrantschargedtocurrentprofitorloss:
Unit:RMB
| Subsidyitem | Issuingbody | Reasonforissuing | Typeofnature | Whetherthesubsidyaffectstheprofitandlossfortheyear | Whetheritisaspecialsubsidy | Amountincurredintheperiod | Amountincurredinthepriorperiod | Asset-related/income-related |
Othernotes:
49.Non-operatingexpensesUnit:RMB
| Item | Amountincurredintheperiod | Amountincurredinthepriorperiod | Amountrecordedinnon-recurringgainsandlossesduringthecurrentperiod |
| Lossesondestructionandretirementofnon-currentassets | 26,618,184.57 | 64,272,629.43 | 26,618,184.57 |
| Penaltyexpenses | 4,993.20 | 4,993.20 | |
| Total | 26,623,177.77 | 64,272,629.43 | 26,623,177.77 |
Othernotes:
50.Incometaxexpenses
(1)TableofincometaxexpensesUnit:RMB
| Item | Amountincurredintheperiod | Amountincurredinthepriorperiod |
| Currentincometaxexpenses | 108,153,891.06 | 853,911,187.93 |
| Deferredincometaxexpenses | 17,220,286.35 | 47,952,384.53 |
| Total | 125,374,177.41 | 901,863,572.46 |
(2)Reconciliationbetweenincometaxexpenseandaccountingprofit:
Unit:RMB
| Item | Amountincurredintheperiod |
| Totalprofit | -1,080,677,542.45 |
| Incometaxexpensecalculatedatstatutory/applicabletaxrate | -270,169,385.61 |
| Effectoftheadjustmentonprior-periodincometax | 42,091,927.34 |
| Effectofnon-taxableincome | 132,027.51 |
| Effectofnon-deductiblecosts,expensesandlosses | 102,571.04 |
| Effectofdeductibletemporarydifferencesordeductiblelossesondeferredincometaxassetsnotrecognisedintheyear | 351,789,748.57 |
| Item | Amountincurredintheperiod |
| Others | 1,427,288.56 |
| Incometaxexpense | 125,374,177.41 |
Othernotes:
51.Cashflowstatementitems
(1)OthercashreceivedinrelationtooperatingactivitiesUnit:RMB
| Item | Amountincurredintheperiod | Amountincurredinthepriorperiod |
| Currentaccounts,advancesreceived | 5,681,740.65 | 4,269,927.26 |
| Interestincome | 80,619,490.18 | 424,979,825.98 |
| Specialsubsidies,grants | 9,720,381.00 | 3,752,120.00 |
| Non-operatingincome | 1,853,285.67 | 3,029,073.33 |
| Others | 25,134,883.78 | 65,335,821.55 |
| Total | 123,009,781.28 | 501,366,768.12 |
Notes:
(2)OthercashpaidinrelationtooperatingactivitiesUnit:RMB
| Item | Amountincurredintheperiod | Amountincurredinthepriorperiod |
| Intercompanycurrentaccounts | 15,076,408.22 | 19,482,383.93 |
| Administrationexpenses | 45,010,167.69 | 86,597,752.51 |
| Sellingexpenses | 19,555,768.39 | 14,638,578.99 |
| Servicecharges | 8,286,059.01 | 22,157,726.11 |
| Others | 397,007.18 | 299,743.97 |
| Total | 88,325,410.49 | 143,176,185.51 |
Note:
(3)OthercashreceivedinrelationtofinancingactivitiesUnit:RMB
| Item | Amountincurredintheperiod | Amountincurredinthepriorperiod |
| Notes,letterofguarantee,andletterofcreditmargins | 1,845,751,595.78 | 2,105,252,645.77 |
| Recoveryoftimedeposits | 174,000,000.00 | |
| Recoveryofshort-termborrowingfundsusedfortargetedpayments | 740,000,000.00 | |
| Documentarycreditincome | 41,310,294.37 | |
| Financeleasepayments | 214,709,267.94 | |
| Total | 2,759,751,595.78 | 2,361,272,208.08 |
Note:
(4)OthercashpaidinrelationtofinancingactivitiesUnit:RMB
| Item | Amountincurredintheperiod | Amountincurredinthepriorperiod |
| Notes,letterofguarantee,andletterofcreditmargins | 391,052,880.08 | |
| Short-termborrowingfundsusedfor | 740,000,000.00 |
| Item | Amountincurredintheperiod | Amountincurredinthepriorperiod |
| targetedpayments | ||
| Leasepayments | 93,692,716.62 | |
| Restricteddeposits | 1,185,000.00 | |
| Total | 485,930,596.70 | 740,000,000.00 |
Note:
52.Supplementaryinformationofcashflowstatement
(1)SupplementaryinformationofcashflowstatementUnit:RMB
| Supplementaryinformation | Currentperiodamount | Priorperiodamount |
| 1.Reconciliationofnetprofittocashflowsfromoperatingactivities | ||
| Netprofit | -1,206,051,719.86 | 2,533,635,498.63 |
| Add:Provisionforimpairmentofassets | 37,841,247.19 | 121,425,710.79 |
| Depreciationoffixedassets,oilandgasassets,andproductivebiologicalassets | 1,941,797,897.36 | 2,333,028,229.90 |
| Depreciationofright-of-useassets | 60,374,534.42 | 60,374,534.42 |
| Amortisationofintangibleassets | 7,072,335.72 | 7,651,103.73 |
| Amortisationoflong-termdeferredexpenses | 0.00 | 0.00 |
| Lossondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainlistedwith“-”) | -3,648,546.62 | -130,675.05 |
| Lossondamagedandretirednon-currentassets(gainlistedwith“-”) | 6,931,666.47 | 61,665,775.04 |
| Lossonchangesinfairvalue(gainlistedwith“-”) | 0.00 | 0.00 |
| Financialexpenses(gainlistedwith“-”) | 595,403,596.52 | 921,281,964.92 |
| Investmentlosses(gainlistedwith“-”) | -89,589,183.44 | 120,519,309.82 |
| Decreaseindeferredtaxassets(increaselistedwith"-") | 22,697,558.71 | 47,952,384.53 |
| Increaseindeferredtaxliabilities(decreaselistedwith"-") | 0.00 | 0.00 |
| Decreaseininventories(increaselistedwith"-") | 1,692,962,444.55 | -1,202,351,320.94 |
| Decreaseinreceivablesfromoperatingactivities(increaselistedwith"-") | 2,034,468,353.22 | 2,159,270,698.56 |
| Increaseinpayablesfromoperatingactivities(decreaselistedwith"-") | -3,825,777,153.88 | -6,750,849,760.31 |
| Othes | 1,879,935.20 | |
| Netcashflowsfromoperatingactivities | 1,276,362,965.56 | 413,473,454.04 |
| 2.Significantnon-cashinvestingandfinancingactivities: | ||
| Conversionofdebtsintocapital | ||
| Convertiblebondsduewithin1year | ||
| Fixedassetsunderfinancingleases | ||
| 3.Changesincashandcashequivalents: | ||
| Closingbalanceofcash | 1,296,662,683.20 | 6,299,099,063.48 |
| Less：Openingbalanceofcash | 6,299,099,063.48 | 9,229,417,595.12 |
| Add：Closingbalanceofcashequivalents | ||
| Less：Openingbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | -5,002,436,380.28 | -2,930,318,531.64 |
(2)NetcashfromthedisposalofsubsidiariesduringtheperiodUnit:RMB
| Amount | |
| Cashorcashequivalentsreceivedondisposalofsubsidiariesduringtheperiod | 137,470,560.86 |
| Including: | |
| BengangSteelLiaoyangQiutuanCo.,Ltd. | 137,470,560.86 |
| Less:Cashandcashequivalentsheldbysubsidiariesonthedateoflossofcontrol | 397,304.46 |
| Including: |
| Amount | |
| BengangSteelLiaoyangQiutuanCo.,Ltd. | 381,298.05 |
| BengangBaojin(Shenyang)autonewmaterialtechnologyCo.,Ltd. | 16,006.41 |
| Including: | |
| Netcashreceivedondisposalofsubsidiaries | 137,073,256.40 |
Othernotes:
(3)ComponentofcashandcashequivalentsUnit:RMB
| Item | Closingbalance | Openingbalance |
| I.Cash | 1,296,662,683.20 | 6,299,099,063.48 |
| Including:Cashonhand | 24,334.93 | |
| Bankdepositsavailableforpaymentatanytime | 1,296,662,683.20 | 6,299,074,728.55 |
| III.Closingbalanceofcashandcashequivalents | 1,296,662,683.20 | 6,299,099,063.48 |
Othernotes:
53.AssetswithrestrictedownershipanduserightsUnit:RMB
| Item | Closingbookvalue | Reasonsforrestrictions |
| Cashandcashequivalents | 164,482,958.67 | Marginonbills |
| Notesreceivable | 355,701,965.15 | Pledgeandendorsementdiscountnotyetdue |
| Fixedassets | 85,164,490.39 | Mortgagetoobtainfundsforborrowing |
| Intangibleassets | 35,260,567.22 | Mortgagetoobtainfundsforborrowing |
| Investmentsinotherequityinstruments | 1,016,420,266.27 | Releaseofpledgeagreementwassignedandapplicationforreleaseofregistrationofequitypledgewasinprocess |
| Total | 1,657,030,247.70 |
Othernotes:
54.Foreigncurrencymonetaryitems
(1)ForeigncurrencymonetaryitemsUnit:RMB
| Item | Closingbalanceinforeigncurrencies | Exchangerate | EquivalentRMBamount |
| Cashandcashequivalents | 49,235,465.27 | ||
| Including:USD | 6,358,482.45 | 6.9646 | 44,284,286.87 |
| EUR | 2,866.74 | 7.4229 | 21,279.52 |
| HKD | 5,518,749.45 | 0.8933 | 4,929,898.88 |
Accountsreceivable
| Accountsreceivable |
| Including:USD |
| EUR |
| HKD |
Long-termborrowings
| Long-termborrowings | 265,008,157.01 | ||
| Including:USD | 2,450,000.00 | 6.9646 | 17,063,270.00 |
| EUR | 18,714,699.47 | 7.4229 | 138,917,342.70 |
| HKD | 0.00 | 0.00 | |
| JPY | 92,704,000.00 | 0.0524 | 4,857,689.60 |
| Non-currentliabilitiesduewithin1year | 104,169,854.71 | ||
| Including:USD | 4,700,000.00 | 6.9646 | 32,733,620.00 |
| EUR | 9,460,158.74 | 7.4229 | 70,221,812.31 |
| JPY | 23,176,000.00 | 0.0524 | 1,214,422.40 |
Othernotes:
(2)Descriptionofforeignoperatingentitiesincludesdisclosesontheprincipalplaceofoverseasbusiness,functionalcurrencyandthebasisforitsselectionforsignificantforeignoperatingentities,ifthereisachangeinthefunctionalcurrency,aswellasthereasons.
□Applicable?Notapplicable
55.Governmentgrants
(1)BasicinformationofgovernmentgrantsUnit:RMB
| Type | Amount | Presentation | Amountincludedtocurrentprofitorloss |
| Cold-rolledhigh-strengthsteelrenovationproject | 50,000,000.00 | Deferredincome | 50,000,000.00 |
| 7setsof130tonscombustionboilerfluegasdesulfurizationprojectinpowerplant | 4,800,000.00 | Deferredincome | 4,800,000.00 |
| Researchanddevelopmentofhigh-strengthsteelforthethirdgenerationofautomobiles | 1,740,000.00 | Deferredincome | 580,000.00 |
| AdvancedTreatmentProjectofCarbonFiberWastewaterinDongfengPlantAreaofPlateCokingPlant | 7,600,000.00 | Deferredincome | 1,900,000.00 |
| DesulfurizationandDenitrificationProjectofCoal-firedBoilerinHigh-pressureWorkshopofBengangPowerPlant | 3,000,000.00 | Deferredincome | 600,000.00 |
| Powerplantthreepowerplantcogenerationrenovationproject | 2,000,000.00 | Deferredincome | 2,000,000.00 |
| AirPollutionPreventionandControlFunds-FinishingDustRemovalUltra-LowEmissionTransformationProjec | 1,640,000.00 | Deferredincome | 410,000.00 |
| 2021ManufacturingStrongProvinceSpecialFund | 8,100,000.00 | Deferredincome | |
| 2021BenxiExpertTalentandEnterpriseMatchmakingProject | 10,000.00 | Deferredincome | 5,000.00 |
| 2021BenxiPollutionControlandEnergySavingandCarbonReductionSpecialProject(ConverterGasRecoveryandEfficiencyImprovementProject) | 1,500,000.00 | Deferredincome | |
| 2021MunicipalMasterSkillWorkstationFee | 80,000.00 | Deferredincome | 2,702.49 |
| LiaoningProvince"Hundred,Thousand,Thousand,ThousandTalentsProject"fundingprojectin2018 | 220,000.00 | Deferredincome | |
| 2018MunicipalSkillMasterWorkstationFee | 58,766.34 | Deferredincome | |
| 2019MunicipalSkillMasterWorkstationFees | 98,084.16 | Deferredincome | 28,583.97 |
| 2020SpecialProjectfortheConstructionofEcologicalCivilization(SpecialSteelElectricFurnaceUpgradeProject) | 20,000,000.00 | Deferredincome | |
| LiaoningArtisanSubsidy | 21.89 | Deferredincome | 18.92 |
| ResearchontheInfluenceMechanismandControlofRareEarthOxideSulfideonAutomobileSteelPlasticity | 457,413.50 | Deferredincome | 122,965.00 |
| DesignofMetallurgicalSlagSystemsforrareEarthSteelsandTheirPhysicochemicalProperties | 340,000.00 | Deferredincome | |
| ProvincialScienceandTechnologyDepartmentNationalNatural | 334,000.00 | Deferredincome |
| Type | Amount | Presentation | Amountincludedtocurrentprofitorloss |
| ScienceFoundationofChina-LiaoningProvincialGovernmentJointFundproject | |||
| 2019ProvincialSkillMasterWorkstationFee | 200,000.00 | Deferredincome | |
| 2020ProvincialSkillMasterWorkstationFee | 100,000.00 | Deferredincome | |
| BasicResearchonNewTechnologyofLowCarbonIronmakingFurnaceChargeforCompositeIronCoke | 168,000.00 | Deferredincome | |
| TheSecondBatchof2021LiaoningFundsonCentralGovernmentGuidingtheDevelopmentofLocalScienceandTechnology | 300,000.00 | Deferredincome | |
| LiaoningProvince"Hundred,Thousand,Thousand,ThousandTalentsProject"fundingprojectin2020 | 50,000.00 | Deferredincome | |
| ProvincialScienceandTechnologyDepartment2022LiaoningProvincialNaturalScienceFoundationProgram | 30,000.00 | Deferredincome | |
| Socialsecurityandtaxrefund | 771,262.00 | Otherincome | 771,262.00 |
| DalianJinpuNewDistrictEmploymentandSocialInsuranceBusinessServiceCentreSkillsUpgradingSpecialAccount–Work-for-TrainingGrants | 4,510.00 | Otherincome | 4,510.00 |
| Additionaltaxreliefforretiredsoldiersin2022 | 1,080,000.00 | Otherincome | 1,080,000.00 |
| BenxiHumanResourcesServiceCentreUnemploymentInsuranceFund | 6,308,848.00 | Otherincome | 6,308,848.00 |
| Total | 110,990,905.89 | — | 68,613,890.38 |
(2)Returnofgovernmentgrants
□Applicable?NotapplicableOthernotes:
VIII.Changesinthescopeofconsolidation
1.DisposalofsubsidiariesWhetherthereisasingledisposalofaninvestmentinasubsidiarythatresultsinalossofcontrol??Yes□NoUnit:RMB
Othernotes:
Whetherthereisastep-by-stepdisposalofinvestmentinasubsidiarythroughmultipletransactionsandlossofcontrolduringtheperiod?
□Yes?No
| Nameofsubsidiary | Equitydisposalprice | Disposalratio | Disposalway | Pointoftimeatwhichcontrolislost | Basisfordeterminingthepointoftime | Differencebetweenthedisposalpriceandtheshareofthesubsidiary’snetassetsattheleveloftheconsolidatedfinancialstatementscorrespondingtothedisposalofinvestment | Ratiooftheremainingequityatthedateoflossofcontrol | Bookvalueoftheremainingequityatthedateoflossofcontro | Fairvalueoftheremainingequityatthedateoflossofcontro | Gainorlossontheremeasurementoftheremainingequityinteresttofairvalue | Methodandkeyassumptionsfordeterminingthefairvalueoftheremainingequityinterestatthedateoflossofcontrol | Amountofothercomprehensiveincometransferredtoinvestmentincomethatisrelatedtotheoriginalsubsidiary’sequityinvestment |
| BengangSteelPlatesLiaoyangPelletCo.,Ltd. | 697,980,000.00 | 100.00% | Sold | September30th,2022 | Equitytransferagreementandnoticeofdelivery | 88,020,044.39 |
2.ChangesinthescopeofconsolidationforotherreasonsDescriptionofotherreasonsresultinginthechangesinthescopeofconsolidation(e.g.,newestablishmentofsubsidiaries,liquidationofsubsidiaries,etc.)andtherelatedinformation:
ChongqingLiaobenSteel&IronTradingCo.,Ltd.,HarbinBengangEconomicTradingCo.,Ltd.,NanjingBengangMaterialSalesCo.,Ltd.andWuxiBengangSteel&IronSalesCo.,Ltd.werecancelledduringthereportingperiod.BengangBaojin(Shenyang)AutoNewMaterialTechnologyCo.,Ltd.isnolongerincludedinthescopeofconsolidationduetothelossofcontrolthatresultedfromtheadditionalinvestmentfromXiamenXianghongInvestmentCo.,Ltd.onJuly8
th
,2022.IX.Equityinotherentities
1.Equityinsubsidiaries
(1)Constitutionofenterprisegroup
| Nameofsubsidiary | Mainplaceofbusiness | Registrationplace | Natureofbusiness | Shareholdingratio | Acquiringmethod | |
| Direct | Indirect | |||||
| GuangzhouBengangSteel&IronTradingCo.,Ltd | Guangzhou | Guangzhou | Sale | 100.00% | Establishment | |
| ShanghaiBengangMetallurgyScienceandTechnologyCo.,Ltd | Shanghai | Shanghai | Sale | 100.00% | Establishment | |
| DalianBenruitongAutomobileMaterialTechnologyCo.,Ltd | Dalian | Dalian | Production | 65.00% | Establishment | |
| BengangPOSCOCold-rolledSheetCo.,Ltd. | Benxi | Benxi | Production | 75.00% | Businesscombinationundercommoncontrol | |
| ChangchunBengangSteel&IronTradingCo.,Ltd. | Changchun | Changchun | Sale | 100.00% | Businesscombinationundercommoncontrol | |
| YantaiBengangSteelSalesCo.,Ltd. | Yantai | Yantai | Sale | 100.00% | Businesscombinationundercommoncontrol | |
| TianjinBengangSteelTradingCo.,Ltd. | Tianjin | Tianjin | Sale | 100.00% | Businesscombinationundercommoncontrol | |
| BenxiBengangSteel&IronSalesCo.,Ltd. | Benxi | Benxi | Sale | 100.00% | Establishment | |
| ShenyangBengangBengangMetallurgyScienceandTechnologyCo.,Ltd | Shenyang | Shenyang | Sale | 100.00% | Establishment | |
Descriptionoftheshareholdingratioinasubsidiarydifferentfromthevotingpowerratio:
Basisforholdinghalforlessofthevotingpowerbutstillcontrollingtheinvestee,andforholdingmorethanhalfofthevotingpowerbutnotcontrollingtheinvestee：
Basisforthecontroloverthesignificantstructuredentitiesincludedinthescopeofconsolidation;Basisfordeterminingwhetheracompanyisanagentoraprincipal:
Othernotes:
(2)Significantnon-whollyownedsubsidiariesUnit:RMB
| Nameofsubsidiary | Minorityshareholdingratio | Profitorlossfortheperiodattributabletominorityshareholders | Dividendsdeclaredtominorityshareholdersduringtheperiod | Balanceofminorityinterestsattheendoftheperiod |
| BengangPOSCOCold-rolledSheetCo.,Ltd. | 25.00% | 33,922,714.35 | 575,839,513.58 |
Descriptionoftheshareholdingratioofminorityshareholdersofasubsidiarydifferentfromthevotingpowerratio:
Othernotes:
(3)Keyfinancialinformationonsignificantnon-whollyownedsubsidiariesUnit:RMB
| Nameofsubsidiary | Closingbalance | Openingbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | TotalLiabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | TotalLiabilities | |
| BengangPOSCOCold-rolledSheetCo.,Ltd. | 2,642,318,664.91 | 1,031,753,449.22 | 3,674,072,114.13 | 1,370,714,059.80 | 1,370,714,059.80 | 2,969,950,327.43 | 1,134,904,732.59 | 4,104,855,060.02 | 1,937,187,863.07 | 1,937,187,863.07 | ||
Unit:RMB
| Nameofsubsidiary | Amountincurredintheperiod | Amountincurredinthepriorperiod | ||||||
| Operatingincome | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingincome | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| BengangPOSCOCold-rolledSheetCo.,Ltd. | 9,820,616,858.86 | 135,690,857.38 | 135,690,857.38 | 368,340,695.62 | 11,529,193,715.01 | 143,131,193.39 | 143,131,193.39 | 205,955,801.18 |
Othernotes:
2.Significantjointoperations
| Name | Principalplaceofbusiness | Placeofregistration | Natureofbusiness | Shareholdingratio/entitledshare | |
| Direct | Indirect | ||||
Descriptionofshareholdingratioorentitledshareinjointoperationsdifferentfromvotingpowerratio:
TheCompanyhasnosignificantjointventuresorassociates.Basisfortheclassificationofajointoperationthatisaseparateentityasthejointoperation:
Othernotes:
3.EquityinstructuredentitiesnotincludedinthescopeoftheconsolidatedfinancialstatementsOthernotes:
| Item | Closingbalance/Amountincurredintheyear | Openingbalance/Amountincurredintheprioryear |
| Jointventures | — | — |
| Totalbookvalueofinvestments | ||
| Totalamountofthefollowingscalculatedbasedonshareholdingratio | — | — |
| --Netprofit | ||
| --Othercomprehensiveincome | ||
| --Totalcomprehensiveincome | ||
| Associates | — | — |
| Totalbookvalueofinvestments | 51,030,777.18 | 2,981,784.07 |
| Totalamountofthefollowingscalculatedbasedonshareholdingratio | -181,084.64 | 520,432.46 |
| --Netprofit | -1,444,809.15 | 2,602,162.30 |
| --Othercomprehensiveincome | ||
| --Totalcomprehensiveincome | -1,444,809.15 | 2,602,162.30 |
X.Risksassociatedwithfinancialinstruments
TheCompany'sprincipalfinancialinstrumentsincludeinvestmentsinotherequityinstruments,borrowings,receivablesandpayables,andadetaileddescriptionofeachfinancialinstrumentissetoutinNoteVI.Therisksassociatedwiththesefinancialinstruments,andtheriskmanagementpoliciesadoptedbytheCompanytomitigatetheserisks,aredescribedbelow.TheseriskexposuresaremanagedandmonitoredbytheCompany’smanagementtoensurethattheaboverisksarekeptwithinlimits.
1.RiskmanagementobjectivesandpoliciesTheCompany'sobjectivesinengaginginriskmanagementaretostrikeanappropriatebalancebetweenriskandreturn,tominimisethenegativeimpactofriskontheCompany'soperatingperformanceandtomaximisetheinterestsofshareholdersandotherequityinvestors.Basedontheseriskmanagementobjectives,theCompany'sbasicstrategyforriskmanagementistoidentifyandanalysethevariousriskstowhichtheCompanyisexposed,establishappropriaterisktolerancelimitsandmanagetherisks,aswellasmonitorthevariousrisksinatimelyandreliablemannertokeeptheriskswithinthelimits.
(1)Marketrisk
1)ExchangerateriskTheCompany'sexposuretoexchangerateriskrelatesprimarilytoUSD,HKD,JPYandEUR.ExceptforasmallamountofpurchasesofrawmaterialsandsalesoffinishedgoodswhicharesettledinUSD,HKD,JPYandEUR,theCompany'sothermajorbusinessactivitiesaresettledinRMB.AsatDecember31
st
,2022,theassetsorliabilitiesdescribedinthetablebelowarethebalancesofitemsexpressedinUSD,HKD,JPYandEUR.
| Item | December31st,2022 | December31st,2021 |
| Cashandcashequivalents-USD | 6,358,482.45 | 2,815,562.23 |
| Cashandcashequivalents-HKD | 5,518,749.45 | 4,729,748.36 |
| Cashandcashequivalents-EUR | 2,866.74 | 15,038.78 |
| Short-termborrowings-USD | 90,200,000.00 | |
| Non-currentliabilitiesduewithinoneyear-USD | 4,700,000.00 | 4,700,000.00 |
| Non-currentliabilitiesduewithinoneyear-EUR | 9,460,158.74 | 9,460,158.72 |
| Non-currentliabilitiesduewithinoneyear-JPY | 23,176,000.00 | 23,176,000.00 |
| Long-termborrowings-USD | 2,450,000.00 | 11,850,000.00 |
| Long-termborrowings-EUR | 18,714,699.47 | 37,635,017.31 |
| Long-termborrowings-JPY | 92,704,000.00 | 139,056,000.00 |
TheCompany’spolicyistocontrolthesizeofforeigncurrencydenominationsandsettlementsasfaraspossible,andthemanagementisresponsibleformonitoringforeignexchangeriskandwillconsiderhedgingsignificantforeignexchangeexposuresasandwhenrequired.
2)InterestrateriskInterestrateriskreferstofluctuationsoffairvalueorfuturecashflowsofafinancialinstrumentduetomarketratechanges.TheCompany’sexposuretointerestrateriskiscashflowinterestriskprimarilyarisingfromvariable-ratebankbalancesandvariable-rateborrowings.Currently,theCompanydoesnothaveaspecificpolicytomanageitsinterestraterisk.Themanagementwillcarefullychoosefinancingmethods,andcombinefixedinterestrateswithvariableinterestrates,andshort-termobligationswithlong-termobligations.Byusingeffectiveinterestrateriskmanagementmethods,theCompanycloselymonitorsinterestraterisk,controlsthesizeofvariable-rateborrowingsandwillconsiderinterest-rateswapstoacquireanexpectedstructureofinterestratesshalltheneedarise.
(2)CreditriskAtDecember31
st
,2022,thelargestexposuretocreditriskthatcouldgiverisetofinanciallossesfortheCompanyarisesprimarilyfromlossesincurredontheCompany'sfinancialassetsasaresultofthefailureoftheotherpartytothecontracttoperformitsobligations,specifically:
Thebookvalueoffinancialassetsisrecognisedintheconsolidatedbalancesheet;forfinancialinstrumentsmeasuredatfairvalue,thebookvaluereflectstheriskexposurebutisnotthemaximumexposureanditsmaximumexposurewillchangewithfuturechangesinfairvalue.Inordertomitigatecreditrisk,theCompanyhasestablishedadedicateddepartmenttodeterminecreditlimits,performcreditapprovalsandimplementothermonitoringprocedurestoensurethatthe
necessarymeasuresaretakentocollectoverdueclaims.Inaddition,theCompanyreviewsthecollectionofeachindividualreceivableateachbalancesheetdatetoensurethatadequateprovisionsforbaddebtsaremadeforuncollectibleamounts.Asaresult,theCompany'smanagementbelievesthattheCompany'sexposuretocreditriskhasbeensignificantlyreduced.TheCompany'sworkingfundisplacedwithfinancialinstitutionswithhighcreditratingsandthereforeitisalow-creditriskworkingfund.
(3)LiquidityriskLiquidityriskistheriskthattheCompanywillnotbeabletomeetitsfinancialobligationsastheyfalldue.TheCompanymanagesitsliquidityriskbyensuringthatithassufficientfinancialliquiditytomeetitsobligationsastheyfallduewithoutincurringunacceptablelossesorcausingdamagetoitscorporatereputation,anditregularlyanalysesthestructureandmaturityofitsliabilitiestoensurethatsufficientfundsareavailable.TheCompany'smanagementmonitorstheuseofbankborrowingsandensurescompliancewithborrowingagreements.Atthesametime,theCompanynegotiatesfinancingwithfinancialinstitutionstomaintainacertaincreditlimitandmitigateliquidityrisk.
XI.Disclosureoffairvalue
1.Period-endfairvalueofassetsandliabilitiesmeasuredatfairvalueUnit:RMB
| Item | Fairvalueatendoftheperiod | |||
| Fairvaluemeasurementinthefirstlevel | Fairvaluemeasurementinthesecondlevel | Fairvaluemeasurementinthethirdlevel | Total | |
| I.Continuousfairvaluemeasurement | -- | -- | -- | -- |
| (i)Financialassetsheldfortrading | 137,591,996.02 | 137,591,996.02 | ||
| 1.Financialassetsatfairvaluethroughprofitorloss | 137,591,996.02 | 137,591,996.02 | ||
| (1)Investmentindebtinstruments | 137,591,996.02 | 137,591,996.02 | ||
| III.Investmentsinotherequityinstruments | 1,020,418,482.31 | 1,020,418,482.31 | ||
| Totalassetscontinuouslymeasuredatfairvalue | 1,158,010,478.33 | 1,158,010,478.33 | ||
| II.Non-continuousfairvalue | -- | -- | -- | -- |
| Item | Fairvalueatendoftheperiod | |||
| Fairvaluemeasurementinthefirstlevel | Fairvaluemeasurementinthesecondlevel | Fairvaluemeasurementinthethirdlevel | Total | |
| measurements | ||||
2.Qualitativeandquantitativeinformationonvaluationtechniquesandsignificantparametersused
incontinuousandnon-continuousthird-levelfairvaluemeasurementitemsInvestmentsinotherequityinstrumentscontinuouslymeasuredatfairvalueinthethirdlevelareunlistedequityinvestmentsheldbytheCompany.Receivablesfinancingcontinuouslymeasuredatfairvalueinthethirdlevelarebanker'sacceptancesheldbytheCompany,thefairvalueofwhichisrecognisedbyreferencetothefaceamount.TheCompanyhasadoptedvaluationtechniquesforfairvaluemeasurement,primarilyusingvaluationtechniquesbasedonthelistedcompanycomparativemethod,withreferencetosharepricesofsimilarsecuritiesandtakingintoaccountliquiditydiscounts.
XII.RelatedPartiesandRelatedTransactions
1.TheparentcompanyoftheCompany
| Name | Placeofregistration | Natureofbusiness | Registeredcapital | Shareholdingratio | Votingpowerratio |
| XIII.BenxiSteel&Iron(Group)Co.,Ltd. | Benxi,Liaoning | Production | 74.01 | 58.65% | 58.65% |
Note:
?Registeredcapitalofthecontrollingshareholderanditschanges
| Controllingshareholder | Openingbalance | Increase | Decrease | Closingbalance |
| BenxiSteel&Iron(Group)Co.,Ltd. | 7,401,091,400.00 | 7,401,091,400.00 |
?Shareholdingorequityofcontrollingshareholdersanditschanges
| Controllingshareholder | Amountofshareholding | Shareholdingratio(%) | ||
| Closingbalance | Openingbalance | Ratioattheendofyear | Ratioatthebeginningofyear | |
| BenxiSteel&Iron(Group)Co.,Ltd. | 2,409,628,094.00 | 2,409,628,094.00 | 58.65 | 58.65 |
TheultimatecontrollingpartyoftheCompanyisAnsteelGroupCo.,Ltd.Othernotes:
2.DetailsofsubsidiariesFordetailsofsubsidiariesoftheCompanypleaserefertoNote“IX.1.(1)Constitutionofenterprisegroup”.
3.Thecompany'sjointventuresandassociatesFordetailsofsignificantjointventuresandassociatesoftheCompanypleaserefertoNote“IX.2.(1)Significantjointventuresorassociates”.OtherjointventuresorassociatesthathaverelatedpartytransactionswiththeCompanyinthecurrentperiod,orhaverelatedpartytransactionswiththeCompanyinthepreviousperiodandformedabalanceareasfollows:
| Nameofjointventuresandassociates | Relationship |
| BengangBaojin(Shenyang)autonewmaterialtechnologyCo.,Ltd. | Associate |
| ZheJiangEliteIron&SteelProcessingCo.,Ltd. | Associate |
Othernotes:
4.Detailsofotherrelatedparties
| Nameofotherrelatedparties | Relationship |
| BengangGroupCo.,Ltd. | Parentcompany&controllingshareholder |
| AnsteelElectrlcCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelScrapResources(Anshan)Co.,Ltd. | BothbelongtoAnsteelGroup |
| ZhaoyangBranchofAnsteelScrapResources(Anshan)Co.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelSteelProcessingandDistribution(Dalian)Co.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelSteelProcessingandDistribution(Changchun)Co.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelSteelProcessingandDistribution(Zhenzhou)Co.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelSteelDistribution(Hefei)Co.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelSteelDistribution(Wuhan)Co.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelSteelRopeCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnshanIronandSteelCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelChemicalTechnologyCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelGroup(Anshan)RailwayTransportationEquipmentManufacturingCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelGroupFinanceCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelGroupEngineeringTechnologyDevelopmentCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelGroupEngineeringTechnologyCo.,Ltd. | AssociatesofAnsteelGroup |
| AnsteelGroupInternationalEconomicandTradeCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelGroupMiningGongchanglingCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelGroupMiningCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelGroupCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelGroupAutomaionCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelConstructionGroupCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelMetalConstructionCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelTechnologyandDevelopmentCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelMiningMachineryManufacturingCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelGreenResourcesTechnologyCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelEnergyTechnologyCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelIndustryGroup(Anshan)EquipmentOperationandMaintenanceCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelIndustrialGroupMetallurgicalMachineryCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelShuangsheng(Anshan)FanCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelModernCityService(Anshan)Co.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelRollerCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelHeavyMachineryDesignandResearchInstituteCo.,Ltd. | BothbelongtoAnsteelGroup |
| AnsteelHeavyMachineCo.,Ltd. | BothbelongtoAnsteelGroup |
| Nameofotherrelatedparties | Relationship |
| AnsteelCastSteelCo.,Ltd. | BothbelongtoAnsteelGroup |
| NorthHengdaLogisticsCo.,Ltd. | BothbelongtoBengangGroup |
| BenxiSteelStainlessSteelColdRollingDandongCo.,Ltd. | Sameparentcompany |
| BengangElectricCo.,Ltd. | Associatesoftheparentcompany |
| BenxiIronandSteelGroupFinanceCo.,Ltd. | BothbelongtoBengangGroup |
| BenxiIronandSteelGroupInternationalEconomicandTradeCo.,Ltd. | BothbelongtoBengangGroup |
| BenxiIronandSteelTenderingCo.,Ltd. | BothbelongtoBengangGroup |
| BenxiBeitaiDuctileCASTIronPipesCo.,Ltd. | BothbelongtoBengangGroup |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | BothbelongtoBengangGroup |
| BenxiIronandSteel(Group)RealEstateDevelopmentCo.,Ltd. | Sameparentcompany |
| BenxiIronandSteel(Group)EngineeringConstructionSupervisionCo.,Ltd. | Sameparentcompany |
| BenxiIron&Steel(Group)MachineryManufactureCo.,Ltd. | Sameparentcompany |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Sameparentcompany |
| BenxiIron&SteelMiningCo.,Ltd. | Sameparentcompany |
| BenxiIronandSteel(Group)ThermalDevelopmentCo.,Ltd. | Sameparentcompany |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Sameparentcompany |
| BenxiIronandSteel(Group)DesignandResearchInstitute | Sameparentcompany |
| BenxiIronandSteel(Group)IndustrialDevelopmentCo.,Ltd. | Sameparentcompany |
| BenxiIronandSteel(Group)InformationAutomationCo.,Ltd. | Sameparentcompany |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Sameparentcompany |
| BenxiIron&Steel(Group)MetallurgicalSlagCo.,Ltd. | Sameparentcompany |
| BenxiSteel&Iron(Group)Co.,Ltd. | Parentcompany |
| BenxiIronandSteel(Group)ChintBuildingMaterialsCo.,Ltd. | Sameparentcompany |
| BenxiHigh-techDrillingToolsManufacturingCo.,Ltd. | BothbelongtoBengangGroup |
| BenxiNewBusinessDevelopmentCo.,Ltd. | Sameparentcompany |
| ChengduPansteelHotelCo.,Ltd. | BothbelongtoAnsteelGroup |
| DalianBorollerSteelPipeCo.,Ltd. | Sameparentcompany |
| DelinIndustrialProductsCo.,Ltd. | BothbelongtoAnsteelGroup |
| DelinLandPortSupplyChainServiceCo.,Ltd. | BothbelongtoAnsteelGroup |
| GuangzhouAnsteelProcessingCo.,Ltd. | BothbelongtoAnsteelGroup |
| GuangzhouFreeTradeZoneBenxiSteelSalesCo.,Ltd. | Sameparentcompany |
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | Sameparentcompany |
| LiaoningHengyiSteelTradeCo.,Ltd. | BothbelongtoBengangGroup |
| LiaoningMetallurgicalTechnicalCollege | Sameparentcompany |
| LiaoningMetallurgicalVocationalandTechnicalCollege | Sameparentcompany |
| PansteelGroupXichangironandvanadiumCo.,Ltd. | BothbelongtoAnsteelGroup |
| PanzhongYihongMetalProducts(Chongqing)Co.,Ltd. | BothbelongtoAnsteelGroup |
| SuzhouLongbenMetalMaterialCo.,Ltd. | Joint-stockcompany |
| TianjinAnsteelSteelProcessingandDistributionCo.,Ltd. | BothbelongtoAnsteelGroup |
| TianjinAnsteelInternationalNorthTradeCo.,Ltd. | BothbelongtoAnsteelGroup |
| WuhanYuanhongTradingCo.,Ltd. | Joint-stockcompany |
| ChangchunFAWAnsteelSteelProcessingandDistributionCo.,Ltd. | BothbelongtoAnsteelGroup |
| ZheJiangJingruiSteelProcessingCo.,Ltd. | Joint-stockcompany |
| AnsteelTenderingCo.,Ltd. | BothbelongtoAnsteelGroup |
Othernotes:
5.Relatedpartytransactions
(1)Relatedpartytransactionsofpurchasingandsellinggoods,andrenderingandreceivingservicesPurchasinggoods/receivingservicesUnit:RMB
| Relatedparty | Relatedpartytransaction | Amountincurredintheperiod | Approvedtransactionamount | Overtransactionamountornot | Amountincurredinthepriorperiod |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Agencyfee | 169,853.96 | 2,406,400.10 | ||
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Energyandpower | 779,110,506.13 | 600,000,000.00 | No | 574,159,764.50 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Repairlabor | 97,016,086.32 | 100,000,000.00 | No | 83,669,158.97 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Rawmaterial | 14,015,404,775.69 | 19,280,000,000.00 | No | 3,413,966,208.00 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Sparepart | 237,598,626.48 | 20,000,000.00 | No | 16,090,360.87 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Trafficexpense | 6,238,586.40 | 5,035,680.51 | ||
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Repairlabor | 33,111,773.58 | 50,000,000.00 | No | 38,823,832.46 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Rawmaterial | 6,526,348,389.47 | 8,950,000,000.00 | No | 7,897,911,371.00 |
| AnsteelScrapResources(Anshan)Co.,Ltd. | Rawmaterial | 501,264,827.39 | 700,000,000.00 | No | 10,664,269.91 |
| AnsteelScrapResources(Anshan)Co.,Ltd. | Rawmaterial | 6,052,002.21 | |||
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Sparepart | 4,646,764.56 | 21,777,211.97 | ||
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Engineeringexpense | 520,498,816.97 | 347,084,983.80 | ||
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Repairlabor | 254,504,020.71 | 520,000,000.00 | Yes | 278,104,032.80 |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Rawmaterialandsparepart | 31,238,074.42 | 16,097,907.80 | ||
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Trafficexpense | 785,478.54 | 4,140,887.20 | ||
| LiaoningHengyiSteelTradeCo.,Ltd. | Sparepart | 410,585,327.20 | |||
| BenxiSteel&Iron(Group)Co.,Ltd. | Testingfee | 29,476.75 | |||
| BenxiSteel&Iron(Group)Co.,Ltd. | Repairlabor | 292,771,749.19 | 350,000,000.00 | No | 304,560,898.30 |
| BenxiSteel&Iron(Group)Co.,Ltd. | Rawmaterial | 181,321.91 | |||
| AnsteelGroupMiningGongchanglingCo.,Ltd. | Rawmaterial | 362,137,279.01 | 1,600,000,000.00 | No | |
| BenxiIron&Steel(Group)MetallurgicalSlagCo.,Ltd. | Rawmaterial | 289,543,277.06 | 510,000,000.00 | No | 489,148,093.50 |
| BenxiIron&Steel(Group)MachineryManufactureCo.,Ltd. | Repairlabor | 63,956,264.17 | 100,000,000.00 | No | 71,834,926.85 |
| BenxiIron&Steel(Group)MachineryManufactureCo.,Ltd. | Rawmaterialandsparepart | 154,332,860.09 | 100,000,000.00 | Yes | 74,302,355.66 |
| LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | Engineeringexpense | 2,070,000.00 | 250,000,000.00 | No | |
| LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | Repairlabor | 5,984,428.81 | 9,214,383.72 | ||
| LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | Rawmaterialandsparepart | 135,689,377.05 | 67,724,736.21 | ||
| BengangElectricCo.,Ltd. | Repairlabor | 13,542,063.00 | 30,766,390.09 |
| Relatedparty | Relatedpartytransaction | Amountincurredintheperiod | Approvedtransactionamount | Overtransactionamountornot | Amountincurredinthepriorperiod |
| BengangElectricCo.,Ltd. | Rawmaterial | 121,219,826.14 | 200,000,000.00 | No | 144,661,193.60 |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Engineeringexpense | 26,575,682.85 | 12,223,337.95 | ||
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Repairlabor | 103,244,339.53 | 200,000,000.00 | No | 172,496,212.10 |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Rawmaterialandsparepart | 3,258,197.53 | 3,141,468.85 | ||
| BenxiIronandSteel(Group)InformationAutomationCo.,Ltd. | Engineeringexpense | 89,244,708.98 | 7,731,900.58 | ||
| BenxiIronandSteel(Group)InformationAutomationCo.,Ltd. | Repairlabor | 15,339,461.49 | 130,000,000.00 | No | 58,288,892.03 |
| BenxiIronandSteel(Group)InformationAutomationCo.,Ltd. | Rawmaterialandsparepart | 8,171,621.28 | 2,382,441.39 | ||
| BenxiIronandSteel(Group)IndustrialDevelopmentCo.,Ltd. | Sparepart | 46,331,491.99 | 300,000,000.00 | Yes | |
| BenxiIronandSteel(Group)IndustrialDevelopmentCo.,Ltd. | projectfund | 1,974,511.01 | 1,412,870.70 | ||
| BenxiIronandSteel(Group)IndustrialDevelopmentCo.,Ltd. | Repairlabor | 3,445,388.98 | 14,899,040.30 | ||
| BenxiIronandSteel(Group)IndustrialDevelopmentCo.,Ltd. | Rawmaterial | 407,371,792.39 | 195,317,492.00 | ||
| BenxiIronandSteel(Group)IndustrialDevelopmentCo.,Ltd. | Trafficexpense | 4,953,917.35 | 1,184,903.02 | ||
| AnsteelGroupMiningCo.,Ltd. | Rawmaterial | 99,573,714.25 | |||
| AnsteelSteelCompanyLimited | Crudefuel | 75,504,413.81 | 1,300,000,000.00 | No | |
| AnsteelGroupAutomaionCo.,Ltd. | Engineeringexpense | 72,873,000.00 | |||
| AnsteelGroupEngineeringTechnologyCo.,Ltd. | Engineeringexpense | 63,375,792.47 | 2,015,000,000.00 | No | 4,156,465.29 |
| BenxiIronandSteelGroupInternationalEconomicandTradeCo.,Ltd. | Rawmaterial | 16,836,635,147.00 | |||
| BenxiIronandSteelGroupInternationalEconomicandTradeCo.,Ltd. | Portsurcharge | 843,578,220.03 | 500,000,000.00 | Yes | 401,150,627.60 |
| BenxiIronandSteelGroupInternationalEconomicandTradeCo.,Ltd. | Agencyfee | 60,892,920.39 | 71,401,202.00 | ||
| AnsteelGroupInternationalTradeCo.,Ltd. | Rawmaterial | 58,292,035.42 | 1,200,000,000.00 | No | 158,920,329.80 |
| NorthHengdaLogisticsCo.,Ltd. | Sparepart | 25,720,478.21 | |||
| NorthHengdaLogisticsCo.,Ltd. | Storagefee | 4,261,203.22 | |||
| NorthHengdaLogisticsCo.,Ltd. | Processingcharge | 1,401.77 | |||
| NorthHengdaLogisticsCo.,Ltd. | Freightrevenue | 18,595,601.60 | |||
| NorthHengdaLogisticsCo.,Ltd. | Trafficexpense | 2,671,869.60 | |||
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | Engineeringexpense | 13,781,211.87 | |||
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | Repairlabor | 15,853,592.59 | 41,000,000.00 | No | 25,652,748.93 |
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | Rawmaterialandsparepart | 18,919,911.07 | 1,779,712.77 | ||
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | Trafficexpense | 147,379.53 | |||
| AnsteelConstructionGroupCo.,Ltd. | Engineeringexpense | 34,442,304.94 | 30,000,000.00 | Yes | 1,380,000.00 |
| AnsteelConstructionGroupCo.,Ltd. | Repairlabor | 2,398,546.32 | |||
| AnsteelIndustryGroup(Anshan)EquipmentOperationandMaintenanceCo.,Ltd. | Repairlabor | 14,317,414.23 | |||
| BengangGroupCo.,Ltd. | Repairlabor | 3,804,811.13 | 100,000,000.00 | No | 103,266,123.30 |
| BenxiNewBusinessDevelopmentCo.,Ltd. | Repairlabor | 227,358.60 | |||
| BenxiNewBusinessDevelopmentCo.,Ltd. | Rawmaterialandmealfee | 12,217,302.64 | 5,995,558.58 |
| Relatedparty | Relatedpartytransaction | Amountincurredintheperiod | Approvedtransactionamount | Overtransactionamountornot | Amountincurredinthepriorperiod |
| DelinIndustrialProductsCo.,Ltd. | Sparepart | 10,765,203.78 | |||
| AnsteelHeavyMachineryDesignandResearchInstituteCo.,Ltd. | Engineeringexpense | 6,200,000.00 | |||
| DelinLandPortSupplyChainServiceCo.,Ltd. | Freightrevenue | 818,644.75 | |||
| DelinLandPortSupplyChainServiceCo.,Ltd. | Trafficexpense | 93,266.01 | |||
| LiaoningMetallurgicalVocationalandTechnicalCollege | Trainingexpense | 239,175.22 | |||
| LiaoningMetallurgicalVocationalandTechnicalCollege | Repairlabor | 14,450,747.87 | 20,000,000.00 | No | 20,848,183.42 |
| BenxiIronandSteel(Group)ThermalDevelopmentCo.,Ltd. | Heatingexpense | 3,243,574.57 | 1,935,670.90 | ||
| BenxiIronandSteel(Group)ThermalDevelopmentCo.,Ltd. | Rawmaterial | 397,091.33 | 4,315,772.16 | ||
| AnsteelHeavyMachineCo.,Ltd. | Sparepart | 3,000,690.00 | |||
| AnsteelIndustrialGroupMetallurgicalMachineryCo.,Ltd. | Repairlabor | 2,511,630.02 | 621,231.00 | ||
| BenxiIronandSteel(Group)EngineeringConstructionSupervisionCo.,Ltd. | Engineeringexpense | 1,767,865.81 | |||
| TianjinAnsteelSteelProcessingandDistributionCo.,Ltd. | Processingcharge | 1,448,165.59 | |||
| AnsteelTechnologyDevelopmentCo.,Ltd. | Testingfee | 4,182.00 | |||
| AnsteelTechnologyDevelopmentCo.,Ltd. | Repairlabor | 1,328,524.96 | |||
| LiaoningMetallurgicalTechnicalCollege | Sparepart | 13,181,606.66 | 3,180.19 | ||
| LiaoningMetallurgicalTechnicalCollege | Trainingexpense | 1,180,127.18 | |||
| AnsteelElectrlcCo.,Ltd. | Repairlabor | 985,900.00 | 1,090,000.00 | ||
| ChengduPansteelHotelCo.,Ltd. | Sparepart | 693,726.32 | |||
| AnsteelGroupCo.,Ltd. | Technicalservices | 559,822.74 | |||
| AnsteelGroup(Anshan)RailwayTransportationEquipmentManufacturingCo.,Ltd. | Rawmaterial | 541,592.84 | |||
| AnsteelProcessing&Distribution(Dalian)Co.,Ltd. | Processingcharge | 532,674.24 | |||
| AnsteelProcessing&Distribution(Dalian)Co.,Ltd. | Repairlabor | 12,297.35 | |||
| AnsteelGroupFinanceCo.,Ltd. | Financialservice | 509,257.61 | |||
| AnsteelShuangsheng(Anshan)FanCo.,Ltd. | Rawmaterial | 149,000.00 | |||
| AnsteelProcessing&Dstribution(Changchun)Co.,Ltd. | Processingcharge | 101,089.62 | 13,000,000.00 | No | |
| BenxiHigh-techDrillingToolsManufacturingCo.,Ltd. | Sparepart | 33,451.50 | 355,020.64 | ||
| AnsteelModernCityService(Anshan)Co.,Ltd. | Lifeservice | 871.70 | |||
| AnsteelModernCityService(Anshan)Co.,Ltd. | Rawmaterialandmealfee | 13,379.21 | |||
| ChengduPansteelHotelCo.,Ltd. | Rawmaterialandmealfee | 2,344.35 | |||
| BenxiIronandSteel(Group)SteelProcessingandDistributionCo.,Ltd. | Processingcharge | 97,509.28 | |||
| AnsteelSteelRopeCo.,Ltd. | Rawmaterial | 16,415.00 | |||
| BenxiIronandSteel(Group)DesignandResearchInstitute | Designfee | 370,754.72 | |||
| AnsteelGroupEngineeringTechnologyDevelopmentCo.,Ltd. | Engineeringexpense | 66,371.68 | |||
| BenxiSteelStainlessSteelColdRollingDandongCo.,Ltd. | Goodsinstock | 830,980.11 |
Sellinggoods/renderingservicesUnit:RMB
| Relatedparty | Relatedpartytransaction | Amountincurredintheperiod | Amountincurredinthepriorperiod |
| NorthHengdaLogisticsCo.,Ltd. | Storagefee | 147,942.35 | |
| NorthHengdaLogisticsCo.,Ltd. | Energyandpower | 1,050.44 | |
| NorthHengdaLogisticsCo.,Ltd. | Commodity | 1,575,318,242.55 | |
| NorthHengdaLogisticsCo.,Ltd. | Storagetransferfee | 50,000.00 | |
| NorthHengdaLogisticsCo.,Ltd. | Freightrevenue | 5,147.49 | |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Energyandpower | 59,612,037.69 | 190,994,041.40 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Commodity | 15,275,523.39 | 32,286,695.60 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Rawmaterialandsparepart | 892,839,309.94 | 5,361,496,192.00 |
| BenxiIron&SteelMiningCo.,Ltd. | Energyandpower | 956,298,497.17 | 713,763,626.60 |
| BenxiIron&SteelMiningCo.,Ltd. | Rawmaterialandsparepart | 186,451,326.19 | 114,817,486.80 |
| BenxiIron&SteelMiningCo.,Ltd. | Freightrevenue | 6,375,742.64 | 9,635,045.20 |
| BenxiIron&SteelMiningCo.,Ltd. | Commodity | 9,553,320.94 | |
| ZheJiangJingruiSteelProcessingCo.,Ltd. | Commodity | 634,878,571.04 | |
| BenxiIron&Steel(Group)MetallurgicalSlagCo.,Ltd. | Energyandpower | 5,533,038.14 | 5,657,234.80 |
| BenxiIron&Steel(Group)MetallurgicalSlagCo.,Ltd. | Commodity | 145,986,324.82 | 30,477,308.13 |
| BenxiIron&Steel(Group)MetallurgicalSlagCo.,Ltd. | Rawmaterialandsparepart | 27,239,136.49 | 489,209,578.20 |
| AnsteelChemicalTechnologyCo.,Ltd. | Commodity | 142,937,378.90 | 10,327,963.75 |
| AnsteelGreenResourcesTechnologyCo.,Ltd. | Commodity | 92,587,078.07 | |
| DelinLandPortSupplyChainServiceCo.,Ltd. | Commodity | 68,534,296.17 | 99,872,552.22 |
| BenxiIronandSteel(Group)ThermalDevelopmentCo.,Ltd. | Energyandpower | 27,593,537.32 | 46,499,282.17 |
| BenxiIronandSteel(Group)ThermalDevelopmentCo.,Ltd. | Rawmaterialandsparepart | 33,517,303.11 | 35,958,414.07 |
| WuhanYuanhongTradingCo.,Ltd. | Commodity | 51,854,280.95 | |
| AnsteelSteelCompanyLimited | Commodity | 61,069,908.45 | |
| BenxiIron&Steel(Group)MachineryManufactureCo.,Ltd. | Energyandpower | 18,448,720.59 | 22,129,966.93 |
| BenxiIron&Steel(Group)MachineryManufactureCo.,Ltd. | Commodity | 24,949,599.98 | 26,997,250.99 |
| BenxiIron&Steel(Group)MachineryManufactureCo.,Ltd. | Rawmaterialandsparepart | 1,129,457.58 | |
| AnsteelSteelDistribution(Hefei)Co.,Ltd. | Commodity | 41,250,074.07 | |
| LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | Commodity | 35,333,688.31 | 25,919,093.49 |
| LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | Rawmaterialandsparepart | 13,595.28 | 3,020,156.10 |
| LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | Energyandpower | 320.75 | |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Energyandpower | 7,997,295.31 | 7,832,094.60 |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Rawmaterialandsparepart | 60,250,515.33 | 164,513,121.80 |
| AnsteelProcessing&Distribution(Dalian)Co.,Ltd. | Commodity | 22,445,530.77 | |
| AnsteelSteelDistribution(Wuhan)Co.,Ltd. | Commodity | 18,120,370.66 | |
| ChengduPansteelHotelCo.,Ltd. | Storagefee | 3,396.23 |
| Relatedparty | Relatedpartytransaction | Amountincurredintheperiod | Amountincurredinthepriorperiod |
| ChengduPansteelHotelCo.,Ltd. | Commodity | 17,135,415.98 | 13,819,225.85 |
| AnsteelProcessing&Dstribution(Changchun)Co.,Ltd. | Commodity | 15,877,239.25 | |
| BenxiSteel&Iron(Group)Co.,Ltd. | Energyandpower | 3,295,769.40 | 2,419,372.66 |
| BenxiSteel&Iron(Group)Co.,Ltd. | Rawmaterialandsparepart | 11,988,074.72 | 5,994,769.96 |
| ChangchunFAWAnsteelSteelProcessingandDistributionCo.,Ltd. | Commodity | 9,768,207.73 | |
| PanzhongYihongMetalProducts(Chongqing)Co.,Ltd. | Commodity | 6,764,295.39 | 8,069,888.63 |
| AnsteelSteelProcessingandDistribution(Zhenzhou)Co.,Ltd. | Commodity | 6,664,609.41 | |
| BenxiIronandSteel(Group)IndustrialDevelopmentCo.,Ltd. | Energyandpower | 8,005,174.12 | 9,729,798.22 |
| BenxiIronandSteel(Group)IndustrialDevelopmentCo.,Ltd. | Freightrevenue | 524,233.20 | |
| BenxiIronandSteel(Group)IndustrialDevelopmentCo.,Ltd. | Commodity | 31,630,297.95 | 25,064,326.22 |
| BenxiIronandSteel(Group)IndustrialDevelopmentCo.,Ltd. | Rawmaterialandsparepart | 12,069,150.04 | |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Energyandpower | 1,066,969.43 | 1,239,534.34 |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Rawmaterialandsparepart | 1,236,444.77 | 3,463,893.89 |
| SuzhouLongbenMetalMaterialCo.,Ltd. | Commodity | 1,952,008.09 | 668,359,087.00 |
| PanzhongYihongMetalProducts(Chongqing)Co.,Ltd. | Commodity | 1,608,574.50 | |
| TianjinAnsteelSteelProcessingandDistributionCo.,Ltd. | Commodity | 1,607,469.03 | |
| BengangElectricCo.,Ltd. | Energyandpower | 875,626.86 | 942,198.15 |
| BenxiIronandSteelTenderingCo.,Ltd. | Rawmaterialandsparepart | 108,000.74 | |
| BenxiIronandSteel(Group)InformationAutomationCo.,Ltd. | Energyandpower | 153,773.87 | 127,347.06 |
| BengangGroupCo.,Ltd. | Energyandpower | 135,434.69 | 124,535.96 |
| BengangGroupCo.,Ltd. | Rawmaterialandsparepart | 12,820,827.06 | |
| BengangGroupCo.,Ltd. | Servicefee | 75,423,224.98 | |
| BengangGroupCo.,Ltd. | Commodity | 127,816,445.90 | |
| AnsteelEnergyTechnologyCo.,Ltd. | Rawmaterialandsparepart | 124,582.55 | 796,230.34 |
| AnsteelConstructionGroupCo.,Ltd. | Energyandpower | 119,001.02 | |
| BenxiIronandSteel(Group)RealEstateDevelopmentCo.,Ltd. | Energyandpower | 110,785.80 | 36,751.81 |
| AnsteelCastSteelCo.,Ltd. | Commodity | 87,707.40 | |
| AnsteelGroupEngineeringTechnologyCo.,Ltd. | Energyandpower | 81,276.69 | |
| BenxiNewBusinessDevelopmentCo.,Ltd. | Energyandpower | 44,469.48 | 224,285.83 |
| LiaoningMetallurgicalTechnicalCollege | Servicefee | 9,072.64 | |
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | Energyandpower | 8,558.44 | 389,676.08 |
| BenxiIronandSteelGroupFinanceCo.,Ltd. | Energyandpower | 8,362.33 | 13,938.60 |
| BenxiIronandSteel(Group)EngineeringConstructionSupervisionCo.,Ltd. | Energyandpower | 2,229.09 | |
| LiaoningHengyiSteelTradeCo.,Ltd. | Energyandpower | 1,266.90 | |
| BenxiIronandSteel(Group)SteelProcessingandDistributionCo.,Ltd. | Energyandpower | 4,553.41 | |
| BenxiSteelStainlessSteelColdRollingDandongCo.,Ltd. | Commodity | 2,954,071.01 | |
| AnsteelElectrlcCo.,Ltd. | Energyandpower | 109.68 |
Note:
(2)LeaseinformationofrelatedpartiesTheCompanyasthelessor:
Unit:RMB
| Lessee | Typeofleasedassets | Leaseincomerecognizedintheperiod | Leaseincomerecognizedinthepriorperiod |
| AnsteelTenderingCo.,Ltd. | Warehouseandancillaryfacilities | 255,045.87 | |
| BenxiIronandSteelTenderingCo.,Ltd. | Warehouseandancillaryfacilities | 250,917.43 | 480,000.00 |
TheCompanyasthelessee:
Unit:RMB
| Lessor | Typeofleasedassets | Rentalexpenseonshorttermleasesandleasesoflowvalueassetswithasimplifiedtreatment(ifapplicable) | Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities(ifapplicable) | Rentpaid | Interestexpenseonleaseliabilitiesassumed | Increaseinright-of-useassets | |||||
| Amountincurredintheperiod | Amountincurredinthepriorperiod | Amountincurredintheperiod | Amountincurredinthepriorperiod | Amountincurredintheperiod | Amountincurredinthepriorperiod | Amountincurredintheperiod | Amountincurredinthepriorperiod | Amountincurredintheperiod | Amountincurredinthepriorperiod | ||
| BenxiSteel&Iron(Group)Co.,Ltd. | Landuseright7,669,068.17squaremeter,Landuseright42,920.00squaremeter | 55,251,233.39 | 55,251,233.39 | 38,983,993.51 | 39,600,209.28 | ||||||
| BenxiSteel&Iron(Group)Co.,Ltd. | 2300hotrollingproductline,relatedrealestate | 16,098,161.06 | 16,098,161.06 | 7,657,901.26 | 7,982,648.96 | ||||||
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | 1780hotrollingproductline,relatedrealestate | 12,397,899.09 | 12,397,899.09 | 5,897,685.23 | 6,147,787.68 | ||||||
| BengangGroupCo.,Ltd. | Landuseright728,282.30squaremeter | 9,945,423.08 | 9,945,423.08 | 2,375,669.84 | 2,666,923.92 | ||||||
| NorthHengda | Officeroom | 120,596.33 | |||||||||
| LogisticsCo.,Ltd. | property |
Notes:
(1)AccordingtotheLandUseRightLeasingContractandsubsequentsupplementaryagreementssignedbetweentheCompanyandBengangSteel(Group)onApril7
th
,1997,December30,2005,andsubsequently,theCompanyleaseslandfromBenxiSteel(Group),withamonthlyrentofRMB0.594persquaremeter.Theleasedlandis7,669,068.17squaremetersandtheannualrentisRMB54,665.10million..
(2)OnAugust14
th,2019,theCompanysignedtheHouseLeaseAgreementwithBenxiSteel(Group)andBeiyingIronandSteelCompany,andleasedthehousesandauxiliaryfacilitiesoccupiedbythe2300hotrollingmillproductionlineandthe1780hotrollingmillproductionline.TheleasetermofthehousesandancillaryfacilitiesisDecember31
st
,2038.
(3)OnJuly15
th,2019,theCompanysignedLandLeaseAgreementwithBengangGroupandBengangSteel(Group)respectively,leasedandusedatotalof8piecesoflandfromBengangGroupandBengangGroupCompany,withleasedareasof42,920.00squaremetersand728,282.30squaremeters.Theleasetermis20years,therentalpriceisRMB1.138persquaremeterpermonth.
(3)InformationofGuaranteeamongrelatedpartiesTheCompanyasaguarantor:
Unit:RMB
| Securedparty | Amountofguarantee | Startingdateoftheguarantee | Endingdateoftheguarantee | Hastheguaranteebeenfulfilled |
TheCompanyasthewarranty:
Unit:RMB
| Warrantor | Amountofguarantee | Startingdateoftheguarantee | Endingdateoftheguarantee | Hastheguaranteebeenfulfilled |
| BengangGroupCo.,Ltd.、BenxiSteel&Iron(Group)Co.,Ltd. | 50,000,000.00 | March30th,2016 | March20th,2025 | Notfulfilled |
| BengangGroupCo.,Ltd.、BenxiSteel&Iron(Group)Co.,Ltd. | 250,000,000.00 | February27th,2017 | February20th,2025 | Notfulfilled |
| BengangGroupCo.,Ltd. | 40,500,000.00 | December27th,2016 | June21st,2024 | Notfulfilled |
| BengangGroupCo.,Ltd. | 26,088,872.85 | March12th,2015 | September30th,2025 | Notfulfilled |
| BengangGroupCo.,Ltd. | 48,242,944.41 | March12th,2015 | April30th,2026 | Notfulfilled |
| BengangGroupCo.,Ltd. | 51,828,156.94 | March12th,2015 | October30th,2025 | Notfulfilled |
| BengangGroupCo.,Ltd. | 42,090,659.62 | March12th,2015 | June30th,2025 | Notfulfilled |
| BengangGroupCo.,Ltd. | 40,888,521.19 | March12th,2015 | August29th,2025 | Notfulfilled |
| BengangGroupCo.,Ltd. | 49,796,890.00 | December27th,2016 | June21st,2024 | Notfulfilled |
Note:
(4)RemunerationofkeymanagementpersonnelUnit:RMB10,000
| Item | Amountincurredintheperiod | Amountincurredinthepriorperiod |
| Totalremuneration | 335.63 | 322.09 |
(5)Otherrelatedpartytransactions
1)TheCompanydisposedoftheformersubsidiaryBengangSteelPlatesLiaoyangPelletCo.,Ltd.toBenxiIron&SteelMiningCo.,Ltd.OnSeptember29
th,2022,theCompanyandBenxiIron&SteelMiningCo.,Ltd.(hereinafterreferredtoas"BenxiIron&SteelMiningCompany")enteredintotheBengangSteelPlatesLiaoyangPelletCo.,Ltd.EquityTransferAgreementtotransfer100%equityinterestinBengangSteelPlatesLiaoyangPelletCo.,Ltd.(hereinafterreferredtoas"LiaoyangPelletCompany")heldbytheCompanytoBenxiIron&SteelMiningCompanyforanappraisedvalueofRMB697.98million(ZLPBZNo.2715[2022]),andtheindustrialandcommercialchangeregistrationprocedureswerecompletedonOctober20
th
,2022,resultinginaninvestmentgainofRMB88.02millionintheconsolidatedfinancialstatementsoftheCompany.
2)ThemaincontentsofthecentralizedmanagementoffundsthattheCompanyparticipatesinandimplementsareasfollows:
InApril2021,afternegotiationwithBenxiIronandSteelGroupFinanceCo.,Ltd.(hereinafterreferredtoasBengangFinanceCompany),theFinancialServicesAgreementwassignedtostipulatetherelevantfinancialbusinesstermsandamountcapofrelatedtransactionsbetweentheCompanyanditssubsidiariesandBengangFinanceCompany.TheagreementstipulatesthatthemaximumdailydepositbalanceoftheCompanyanditscontrolledsubsidiariesinthenexttwelvemonthswillbeRMB11billion,themaximumloanandothercreditbusinesswillbeRMB8billion,andthemaximumcreditlinewillbeRMB8billion.InDecember2021,afternegotiationwithAnsteelGroupFinanceCo.,Ltd.(hereinafterreferredtoasAnsteelFinanceCompany),theFinancialServicesAgreement(2022-2024)wassignedtoagreeontherelevantfinancialbusinesstermsandamountcapofrelatedtransactionsbetweentheCompanyanditssubsidiariesandAnsteelFinanceCompanyin2022,2023,and2024.TheagreementstipulatesthatthemaximumdailydepositbalanceoftheCompanyanditsholdingsubsidiariesinAnsteelFinanceCompanyinthenexttwelvemonthsisRMB4.5billion,themaximumcreditlimitofloans,billsandotherformsisRMB5billion,andAnsteelFinanceCompanyprovidesentrustedloanstotheCompany.ThemaximumlimitisRMB2billion.
1.TheCompany'stransactionswithfinancecompanies
| Item | Openingbalancein2022 | Increase | Decrease | Closingbalancein2022 | Interestcollected | Interestpaid,servicecharge |
| I.Depositswithfinancecompanies | ||||||
| BengangFinanceCompany | 2,697,239.97 | 2,697,239.97 | 2,588,679.58 | |||
| AnsteelFinanceCompany | 4,429,656,296.13 | 160,815,520,805.89 | 164,170,258,570.27 | 1,074,918,531.75 | 51,183,445.79 | |
| Including:restrictedmargindeposits | ||||||
| BengangFinanceCompany | ||||||
| AnsteelFinanceCompany | ||||||
| II.Borrowingsfromfinancecompanies | ||||||
| BengangFinanceCompany | ||||||
| AnsteelFinanceCompany | ||||||
| III.Notesdiscountedbyfinancecompanies | ||||||
| BengangFinanceCompany | ||||||
| AnsteelFinanceCompany | 875,823,519.04 | 875,823,519.04 | 3,677,270.34 | |||
| IV.Acceptancebillentrustedtofinancecompanies | ||||||
| BengangFinanceCompany | ||||||
| AnsteelFinanceCompany | 1,058,145,374.46 | 1,058,145,374.46 | 381,101.72 | |||
| IV.Notesdepositedwithfinancecompanies | ||||||
| BengangFinanceCompany | ||||||
| AnsteelFinanceCompany | 211,597,205.57 | 211,597,205.57 |
Note:ThemaximumcreditlimitgrantedbyAnsteelFinanceCompanytoBengangSteelPlatesintheformofloans,notesandotherformsfortheyearisRMB5billion,andthemaximumentrustedloanprovidedbyAnsteelFinanceCompanytoBengangSteelPlatesisRMB2billion.
(6)Relatedpartyfundsborrowingandlending
| Nameofrelatedparty | Closingbalanceoftheperiod | Closingbalanceoftheprioryear |
| Borrowingfunds | ||
| Otherpayable | 85,617,500.00 | 82,081,562.50 |
Note:TheCompany'ssubsidiary,DalianBenruitongAutomobileMaterialTechnologyCo.,Ltd,borrowedRMB75,000,000.00fromBenxiSteel&Iron(Group)Co.AsofDecember31
st,2022,theCompanyhadanoutstandinginterestofRMB10,617,500.00(asofDecember31
st
,2021,theCompanyhadanoutstandinginterestofRMB7,081,562.50).
6.Receivablesandpayablesofrelatedparty
(1)ReceivablesUnit:RMB
| Item | relatedparty | Closingbalance | Openingbalance | ||
| Bookbalance | Baddebtprovision | Bookbalance | Baddebtprovision | ||
| Notesreceivable | BenxiBeiyingIronandSteel(Group)Co.,Ltd. | 3,100,000.00 | 1,146,019,625.74 | ||
| Notesreceivable | BenxiIron&SteelMiningCo.,Ltd. | 5,518,976.33 | 6,906,467.75 | ||
| Notesreceivable | AnsteelRollerCo.,Ltd. | 200,000.00 | |||
| Notesreceivable | AnsteelHeavyMachineCo.,Ltd. | 189,621.75 | |||
| Notesreceivable | AnsteelSteelDistribution(Hefei)Co.,Ltd. | 30,000,000.00 | |||
| Notesreceivable | PansteelGroupPanzhihuaironandvanadiumCo.,Ltd. | 5,000,000.00 | |||
| Receivablefinancing | SuzhouLongbenMetalMaterialCo.,Ltd. | 6,580,000.00 | |||
| Receivablefinancing | BenxiBeiyingIronandSteel(Group)Co.,Ltd. | 2,300,000.00 | |||
| Receivablefinancing | BenxiSteel&Iron(Group)Co.,Ltd. | 500,000.00 | |||
| Receivablefinancing | BenxiIron&SteelMiningCo.,Ltd. | 500,000.00 | |||
| Accountsreceivable | BenxiIronandSteelGroupInternationalEconomicandTradeCo.,Ltd. | 663,311,074.79 | 6,633,110.75 | 30,777,943.03 | 307,779.43 |
| Accountsreceivable | BenxiIronandSteel(Group)ThermalDevelopmentCo.,Ltd. | 840,398.67 | 8,403.99 | 7,007,076.55 | 70,070.77 |
| Accountsreceivable | AnsteelSteelProcessingandDistribution(Zhenzhou)Co.,Ltd. | 4,477,814.06 | 44,778.14 | ||
| Accountsreceivable | AnsteelSteelDistribution(Hefei)Co.,Ltd. | 248,775.35 | 2,487.75 | ||
| Accountsreceivable | AnsteelSteelDistribution(Wuhan)Co.,Ltd. | 8,113,115.19 | 81,131.15 | ||
| Accountsreceivable | AnsteelSteelCompanyLimited | 30,314,005.82 | 303,140.06 | ||
| Accountsreceivable | AnsteelGreenResourcesTechnologyCo.,Ltd. | 4,667,550.15 | 46,675.50 | ||
| Accountsreceivable | BenxiIron&SteelMiningCo.,Ltd. | 44,914,278.63 | 449,142.79 | ||
| Accountsreceivable | LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | 144,307.22 | 1,443.07 | ||
| Item | relatedparty | Closingbalance | Openingbalance | ||
| Bookbalance | Baddebtprovision | Bookbalance | Baddebtprovision | ||
| Prepayment | BenxiIronandSteelGroupInternationalEconomicandTradeCo.,Ltd. | 398,341,075.40 | 562,083,080.63 | ||
| Prepayment | BenxiIron&Steel(Group)MachineryManufactureCo.,Ltd. | 49,429,296.57 | 46,764,418.62 | ||
| Prepayment | BenxiNewBusinessDevelopmentCo.,Ltd. | 2,324,912.22 | 2,525,240.41 | ||
| Prepayment | LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | 365,010.53 | |||
| Prepayment | AnsteelGroupInternationalTradeCo.,Ltd. | 0.01 | |||
| Prepayment | LiaoningHengtaiHeavyMachineryCo.,Ltd. | 13,619,388.23 | |||
| Otherreceivables | BenxiIronandSteel(Group)RealEstateDevelopmentCo.,Ltd. | 1,097,290.88 | 991,268.28 | 2,798,975.71 | 2,585,594.69 |
| Otherreceivables | BengangGroupCo.,Ltd. | 1,403,512.36 | |||
| Otherreceivables | BenxiIronandSteelTenderingCo.,Ltd. | 602,040.84 | 6,020.41 | ||
| Otherreceivables | AnsteelSteelCompanyLimited | 421,142.66 | 421,142.66 | 421,142.66 | 421,142.66 |
| Otherreceivables | BenxiIronandSteel(Group)ChintBuildingMaterialsCo.,Ltd. | 270,462.55 | 211,172.50 | ||
| Otherreceivables | AnsteelHeavyMachineryDesignandResearchInstituteCo.,Ltd. | 5,176,720.00 | 51,767.20 | ||
| Otherreceivables | NorthHengdaLogisticsCo.,Ltd. | 65,563.55 | |||
| Otherreceivables | BenxiIronandSteelGroupInternationalEconomicandTradeCo.,Ltd. | 6,617.52 | |||
| Otherreceivables | BenxiIronandSteel(Group)ConstructionCo.,Ltd. | 13,028,492.10 | 433,910.93 | ||
| Otherreceivables | BenxiIron&SteelMiningCo.,Ltd. | 1,193,997.66 | 11,939.98 | ||
| Otherreceivables | BenxiIronandSteel(Group)ConstructionCo.,Ltd. | 4,760,949.45 | 47,609.49 | ||
| Otherreceivables | LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | 4,249,698.29 | 42,496.98 | ||
| Otherreceivables | LiaoningMetallurgicalTechnicalCollege | 58,042.46 | 58,042.46 | ||
| Otherreceivables | BengangElectricCo.,Ltd. | 36,455.28 | 364.55 | ||
| Otherreceivables | AnsteelGroupEngineeringTechnologyCo.,Ltd. | 73,908.67 | 739.09 | ||
| Othernon-currentassets | AnsteelConstructionGroupCo.,Ltd. | 132,687.84 | 9,222,050.00 | ||
(2)PayablesUnit:RMB
| Item | Relatedparty | Closingbookbalance | Openingbookbalance |
| Notespayable | BenxiIronandSteelGroupInternationalEconomicandTradeCo.,Ltd. | 82,782,219.21 | 2,591,000,000.00 |
| Notespayable | BenxiIronandSteel(Group)IndustrialDevelopmentCo.,Ltd. | 10,191,802.55 | 27,323,238.23 |
| Notespayable | LiaoningMetallurgicalVocationalandTechnicalCollege | 528,854.07 | 2,891,901.05 |
| Notespayable | BenxiIronandSteel(Group)ConstructionCo.,Ltd. | 3,789,095.21 | 2,441,547.34 |
| Notespayable | LiaoningMetallurgicalTechnicalCollege | 1,087,201.26 |
| Item | Relatedparty | Closingbookbalance | Openingbookbalance |
| Notespayable | AnsteelIndustrialGroupMetallurgicalMachineryCo.,Ltd. | 572,213.92 | 616,291.83 |
| Notespayable | LiaoningHengtaiHeavyMachineryCo.,Ltd. | 2,877,574.99 | 532,627.10 |
| Notespayable | BengangElectricCo.,Ltd. | 25,016,176.00 | 371,305.57 |
| Notespayable | LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | 34,223,234.99 | 63,696.00 |
| Notespayable | BenxiIron&SteelMiningCo.,Ltd. | 151,930,597.68 | 30,916.80 |
| Notespayable | BenxiIron&Steel(Group)MachineryManufactureCo.,Ltd. | 41,781,569.75 | 15,544.28 |
| Notespayable | AnsteelGroupMiningCo.,Ltd. | 79,210,057.06 | |
| Notespayable | AnsteelTechnologyDevelopmentCo.,Ltd. | 39,644.00 | |
| Notespayable | AnsteelHeavyMachineryDesignandResearchInstituteCo.,Ltd. | 6,827,200.00 | |
| Notespayable | AnsteelHeavyMachineCo.,Ltd. | 745,501.68 | |
| Notespayable | NorthHengdaLogisticsCo.,Ltd. | 11,350.04 | |
| Notespayable | BenxiBeiyingIronandSteel(Group)Co.,Ltd. | 659,999,999.00 | |
| Notespayable | BenxiIronandSteel(Group)ConstructionCo.,Ltd. | 1,611,555.04 | |
| Notespayable | BenxiIronandSteel(Group)InformationAutomationCo.,Ltd. | 1,150,225.42 | |
| Notespayable | BenxiIron&Steel(Group)MetallurgicalSlagCo.,Ltd. | 10,866,603.68 | |
| Notespayable | BenxiSteel&Iron(Group)Co.,Ltd. | 361,277.52 | |
| Notespayable | LiaoningHengyiSteelTradeCo.,Ltd. | 8,941,086.81 | |
| Accountspayable | BenxiIron&SteelMiningCo.,Ltd. | 45,768,605.27 | 227,930,805.86 |
| Accountspayable | LiaoningHengyiSteelTradeCo.,Ltd. | 243,646,365.75 | |
| Accountspayable | BenxiIronandSteel(Group)ConstructionCo.,Ltd. | 87,111,368.27 | 177,332,809.50 |
| Accountspayable | BenxiIronandSteel(Group)ConstructionCo.,Ltd. | 240,928,491.19 | 127,382,098.50 |
| Accountspayable | BenxiBeiyingIronandSteel(Group)Co.,Ltd. | 131,248,293.37 | 158,531,101.75 |
| Accountspayable | BenxiIron&Steel(Group)MetallurgicalSlagCo.,Ltd. | 47,468,411.05 | 85,112,497.52 |
| Accountspayable | BenxiIronandSteel(Group)IndustrialDevelopmentCo.,Ltd. | 75,043,780.30 | 65,505,709.65 |
| Accountspayable | BenxiIronandSteel(Group)InformationAutomationCo.,Ltd. | 88,684,293.06 | 64,470,595.80 |
| Accountspayable | BengangElectricCo.,Ltd. | 1,893,516.67 | 18,627,189.71 |
| Accountspayable | LiaoningHengtaiHeavyMachineryCo.,Ltd. | 17,366,942.72 | |
| Accountspayable | BengangGroupCo.,Ltd. | 50,000.00 | 16,260,041.69 |
| Accountspayable | BenxiIronandSteelGroupInternationalEconomicandTradeCo.,Ltd. | 51,306,166.70 | 11,684,948.95 |
| Accountspayable | LiaoningMetallurgicalTechnicalCollege | 10,107,863.07 | 11,290,066.24 |
| Accountspayable | BenxiIron&Steel(Group)MachineryManufactureCo.,Ltd. | 2,874,934.49 | 6,869,554.14 |
| Accountspayable | BenxiSteelStainlessSteelColdRollingDandongCo.,Ltd. | 6,108,342.90 | |
| Accountspayable | AnsteelScrapResources(Anshan)Co.,Ltd. | 52,203,765.63 | 4,257,477.87 |
| Accountspayable | LiaoningMetallurgicalVocationalandTechnicalCollege | 513,779.95 | 3,509,300.42 |
| Accountspayable | LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | 30,626,084.39 | 2,527,096.00 |
| Accountspayable | BenxiIronandSteel(Group)ThermalDevelopmentCo.,Ltd. | 413,463.33 | 2,430,350.86 |
| Accountspayable | AnsteelHeavyMachineCo.,Ltd. | 2,873,047.05 | 1,572,500.00 |
| Accountspayable | AnsteelElectrlcCo.,Ltd. | 1,231,700.00 | |
| Accountspayable | AnsteelIndustrialGroupMetallurgicalMachineryCo.,Ltd. | 2,265,928.00 | 1,125,059.03 |
| Accountspayable | AnsteelSteelRopeCo.,Ltd. | 894,924.67 | 913,473.62 |
| Accountspayable | BenxiIronandSteel(Group)RealEstateDevelopmentCo.,Ltd. | 372,520.06 | 615,214.61 |
| Accountspayable | AnsteelMiningMachineryManufacturingCo.,Ltd. | 304,530.41 | |
| Accountspayable | BenxiHigh-techDrillingToolsManufacturingCo.,Ltd. | 14,400.16 | 221,233.55 |
| Accountspayable | BenxiNewBusinessDevelopmentCo.,Ltd. | 18,937.09 | 67,596.20 |
| Accountspayable | BenxiIronandSteel(Group)EngineeringConstructionSupervisionCo.,Ltd. | 39,142.00 | |
| Accountspayable | BenxiIronandSteel(Group)ChintBuildingMaterialsCo.,Ltd. | 2,362.00 | |
| Accountspayable | AnsteelGroup(Anshan)RailwayTransportationEquipmentManufacturingCo.,Ltd. | 577,232.81 | |
| Accountspayable | AnsteelGroupMiningCo.,Ltd. | 591,193.88 | |
| Accountspayable | AnsteelShuangsheng(Anshan)FanCo.,Ltd. | 168,370.00 |
| Item | Relatedparty | Closingbookbalance | Openingbookbalance |
| Accountspayable | BenxiSteel&Iron(Group)Co.,Ltd. | 39,872,070.78 | |
| Accountspayable | ChengduPansteelHotelCo.,Ltd. | 450,952.17 | |
| Accountspayable | DelinIndustrialProductsCo.,Ltd. | 9,556,739.82 | |
| Contractliabilities/othercurrentliabilities | SuzhouLongbenMetalMaterialCo.,Ltd. | 23,506,109.92 | |
| Contractliabilities/othercurrentliabilities | DelinLandPortSupplyChainServiceCo.,Ltd. | 14,902,176.11 | 20,392,114.80 |
| Contractliabilities/othercurrentliabilities | BengangGroupCo.,Ltd. | 15,675,115.92 | |
| Contractliabilities/othercurrentliabilities | PanzhongYihongMetalProducts(Chongqing)Co.,Ltd. | 7,227,779.60 | |
| Contractliabilities/othercurrentliabilities | ChengduPansteelHotelCo.,Ltd. | 1,776,832.88 | 2,361,852.95 |
| Contractliabilities/othercurrentliabilities | BenxiIron&Steel(Group)MetallurgicalSlagCo.,Ltd. | 1,044,047.73 | 1,123,998.85 |
| Contractliabilities/othercurrentliabilities | BenxiIronandSteel(Group)IndustrialDevelopmentCo.,Ltd. | 535,124.96 | 745,498.28 |
| Contractliabilities/othercurrentliabilities | AnsteelEnergyTechnologyCo.,Ltd. | 12,048.13 | 445,249.81 |
| Contractliabilities/othercurrentliabilities | BenxiSteelStainlessSteelColdRollingDandongCo.,Ltd. | 377,261.08 | |
| Contractliabilities/othercurrentliabilities | TianjinAnsteelSteelProcessingandDistributionCo.,Ltd. | 260,000.00 | |
| Contractliabilities/othercurrentliabilities | LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | 199,879.86 | |
| Contractliabilities/othercurrentliabilities | AnsteelChemicalTechnologyCo.,Ltd. | 3,631,726.76 | 127,391.30 |
| Contractliabilities/othercurrentliabilities | AnsteelProcessing&Distribution(Dalian)Co.,Ltd. | 2,468,274.66 | |
| Contractliabilities/othercurrentliabilities | AnsteelProcessing&Dstribution(Changchun)Co.,Ltd. | 695,012.13 | |
| Contractliabilities/othercurrentliabilities | AnsteelSteelDistribution(Hefei)Co.,Ltd. | 4,731,954.99 | |
| Contractliabilities/othercurrentliabilities | NorthHengdaLogisticsCo.,Ltd. | 53,109,140.37 | |
| Contractliabilities/othercurrentliabilities | PanzhongYihongMetalProducts(Chongqing)Co.,Ltd. | 644,213.74 | |
| Contractliabilities/othercurrentliabilities | TianjinAnsteelInternationalNorthTradeCo.,Ltd. | 32,000,000.00 | |
| Contractliabilities/othercurrentliabilities | ChangchunFAWAnsteelSteelProcessingandDistributionCo.,Ltd. | 69,561.39 | |
| Contractliabilities/othercurrentliabilities | ZhejiangJingruiSteelProcessingCo.,Ltd. | 80,484,269.96 | |
| Contractliabilities/othercurrentliabilities | WuhanYuanhongTradingCo.,Ltd. | 4,736,783.67 | |
| Otherpayables | BengangElectricCo.,Ltd. | 9,353,903.06 | |
| Otherpayables | BenxiSteel&Iron(Group)Co.,Ltd. | 81,104,935.20 | 249,739,175.64 |
| Otherpayables | BenxiIronandSteelGroupInternationalEconomicandTradeCo.,Ltd. | 11,894,493.16 | 28,083,978.93 |
| Otherpayables | BenxiIronandSteel(Group)ConstructionCo.,Ltd. | 53,547,549.48 | 24,834,667.16 |
| Otherpayables | BenxiIronandSteel(Group)IndustrialDevelopmentCo.,Ltd. | 1,259,239.61 | 18,283,705.72 |
| Otherpayables | BenxiIronandSteel(Group)SteelProcessingandDistributionCo.,Ltd. | 16,869,219.13 | |
| Otherpayables | GuangzhouFreeTradeZoneBenxiSteelSalesCo.,Ltd. | 2,674,436.85 | |
| Otherpayables | BenxiIronandSteel(Group)ThermalDevelopmentCo.,Ltd. | 2,129,446.86 | 2,187,450.17 |
| Item | Relatedparty | Closingbookbalance | Openingbookbalance |
| Otherpayables | BenxiNewBusinessDevelopmentCo.,Ltd. | 33,755,860.72 | 2,069,075.26 |
| Otherpayables | BenxiIronandSteel(Group)RealEstateDevelopmentCo.,Ltd. | 510,910.37 | 1,435,884.63 |
| Otherpayables | AnsteelScrapResources(Anshan)Co.,Ltd. | 1,000,000.00 | 500,000.00 |
| Otherpayables | LiaoningMetallurgicalTechnicalCollege | 427,188.00 | 190,513.04 |
| Otherpayables | BengangGroupCo.,Ltd. | 7,716,476.47 | 155,733.55 |
| Otherpayables | BenxiIron&Steel(Group)MachineryManufactureCo.,Ltd. | 1,681,991.53 | 10,082.30 |
| Otherpayables | AnsteelElectrlcCo.,Ltd. | 523,642.00 | |
| Otherpayables | AnsteelGroupAutomationCo.,Ltd. | 3,565,330.00 | |
| Otherpayables | AnsteelConstructionGroupCo.,Ltd. | 5,389,177.00 | |
| Otherpayables | AnsteelMetalConstructionCo.,Ltd. | 10,000.00 | |
| Otherpayables | AnsteelTechnologyDevelopmentCo.,Ltd. | 345,269.90 | |
| Otherpayables | AnsteelIndustryGroup(Anshan)EquipmentOperationandMaintenanceCo.,Ltd. | 4,101,254.08 | |
| Otherpayables | NorthHengdaLogisticsCo.,Ltd. | 4,384,330.48 | |
| Otherpayables | BenxiIron&SteelMiningCo.,Ltd. | 543,412.47 | |
| Otherpayables | BenxiIronandSteel(Group)EngineeringConstructionSupervisionCo.,Ltd. | 1,523,543.12 | |
| Otherpayables | BenxiIronandSteel(Group)InformationAutomationCo.,Ltd. | 2,881,047.50 | |
| Otherpayables | BenxiIronandSteel(Group)ConstructionCo.,Ltd. | 1,089,595.17 | |
| Otherpayables | ChengduPansteelHotelCo.,Ltd. | 20,000.00 | |
| Otherpayables | LiaoningHengtaiHeavyMachineryCo.,Ltd. | 22,000,196.88 | |
| Otherpayables | LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | 3,366,743.50 | |
| Otherpayables | AnsteelGroupEngineeringTechnologyCo.,Ltd. | 23,401,702.63 | |
| Otherpayables | LiaoningMetallurgicalVocationalandTechnicalCollege | 6,401,530.88 |
XIII.CommitmentsandContingencies
1.SignificantcommitmentsSignificantcommitmentsatthebalancesheetdate
(1)Significantcommitments
1)Leasecontractsinprogressortobeperformedandtheirfinancialimpactsa.AccordingtotheLandUseRightLeasingContractandsubsequentsupplementaryagreementssignedbytheCompanyandBenxiSteel(Group)onApril7th,1997,andDecember30th,2005,theCompanyleasedlandfromBenxiSteel(Group).ThemonthlyrentisRMB0.594persquaremeter,theleasedlandareais7,669,068.17squaremeters,andtheannualrentisRMB54,665,100.b.OnAugust14th,2019,theCompanysignedtheHouseLeaseAgreementwithBenxiSteel(Group)andBeiyingSteelrespectively,leasingthehousesandauxiliaryfacilitiesoccupiedby2300and1780hotrollingmillproductionlines,andtheleasetermendsonDecember31st,2038.Therentalfeeisbasedonthedepreciationoftheoriginalrentvalueandthenationaladditionaltax,plusreasonableprofitnegotiation.TheestimatedannualrentisnotmorethanRMB20millionandRMB18millionrespectively.Therentalfeeissettledandpaidmonthly.ThisrelatedpartytransactionhasbeenreviewedandapprovedatthefourthmeetingoftheeighthBoardofDirectorsoftheCompany.c.OnJuly15th,2019,theCompanysignedLandLeaseAgreementwithBengangGroupandBenxiSteel
(Group)respectively,andleasedandusedatotalof8piecesoflandofthetwocompanies.Theleaseareasare42,920.00squaremetersand728,282.30squaremetersrespectively,withaleasetermof20years,andarentalpriceofRMB1.138persquaremeterpermonth.Aftertheagreementcomesintoeffect,consideringthenationallawandpolicyadjustmentseveryfiveyears,bothpartiesshoulddeterminewhethertherentneedstobeadjustedaccordingtothepricingbasisstipulatedinArticle2ofthisagreement.ThisrelatedpartytransactionhasbeenreviewedandapprovedatthethirdmeetingoftheeighthBoardofDirectorsoftheCompany.
2)IrrevocableletterofcreditAsatDecember31st,2022,theamountofirrevocableletterofcreditthatwasnotfulfilledwasRMB
0.074billion.
2.Contingencies
(1)ItalsoshouldbestatedthattheCompanyhasnosignificantcontingenciesthatarerequiredtobedisclosedTherewerenosignificantcontingenciesthatarerequiredtobedisclosed.XIV.Eventsafterthebalancesheetdate
1.ProfitDistributionUnit:RMB
| Profitordividendtobedistributed | 0.00 |
| Profitordividenddeclaredafterconsiderationandapproval | 0.00 |
| Profitdistributionplan | 0 |
2.OthereventsafterthebalancesheetdateAsattheIssuancedateofthestatements,theCompanyhasnosignificanteventsafterthebalancesheetdatetodiscloseXV.Othersignificantevents
1.Debtrestructuring
| Wayofdebtrestructuring | Bookvalueofdebt | Gainfromdebtrestructuring | Increaseinowner'sequitysuchassharecapital |
| Settlementofdebtsbycashthevalueislessthanthebookvalueofthedebts | 11,708,653.67 | 1,274,270.98 | —— |
| Settlementofdebtswithnon-cashassets | —— | ||
| Conversionofdebtstocapital | |||
| Modificationofotherdebtconditions | —— | ||
| Mixedrestructuringway | |||
| Total | 11,708,653.67 | 1,274,270.98 |
2.Segmentinformation
(1)IftheCompanyhasnoreportablesegmentsorisunabletodisclosethetotalassetsandtotalliabilitiesofeachreportablesegment,thereasonsshouldbestated.SincetheCompany'smainproductissteel,otherproductshaveasmallproportionofsales,themainproductionbaseisinLiaoning,andthedisclosureofthesegmentreportisnotapplicable.
3.OtherimportantmattersthathaveanimpactoninvestordecisionsAsofthebalancesheetdate,theCompany'scontrollingshareholderBenxiIronandSteel(Group)Co.,Ltd.held2,409,628,094sharesoftheCompany,ofwhich360,000,000shareswereinpledgedstatusand108,326,179shareswereinrestrictedsalesandfrozenstatus.OnMarch21
st
,2023,theCompanyissuedtheIndicativeAnnouncementofBengangSteelPlatesCo.,Ltd.onthePlanningofSignificantAssetReplacementandRelatedPartyTransactions.InordertoenhancetheoperatingefficiencyandprofitabilityoftheCompanyandacceleratethepaceofbecomingaworld-classminingdevelopmententerprise,itintendstoconductanassetreplacementwithitscontrollingshareholder,BenxiSteel&Iron(Group)Co.,Ltd.(hereinafterreferredtoas"BenxiSteel&Iron"),specifically,theassetstobereceivedbeingmining-relatedassetsunderBenxiSteel&Iron,tobesurrenderedbeingtheassetsandliabilitiesrelatedtoalltheCompany'sironandsteelbusinesses,andthedifferencebetweenreceivedandsurrendermadeupincashbyonepartytotheother.Atpresent,thetransactionisstillintheplanningstage,whichmeansspecificinformationsuchasthescopeandpricingoftheunderlyingassetshaveyettobefinalizedandnoagreementhasbeensignedbythetwosides.Thetransactionproposalstillrequiresfurtherdemonstration,communicationandconsultation,andissubjecttonecessarydecision-makingandapprovalproceduresinaccordancewithrelevantlaws,regulationsandtheArticlesofAssociationoftheCompany.Therearestillsignificantuncertaintiesintherelevantmatters.OnMarch21
st
,2023,theCompanyissuedtheIndicativeAnnouncementofBengangSteelPlatesCo.,Ltd.onthePlanningofSignificantAssetReplacementandRelatedPartyTransactions.InordertoenhancetheoperatingefficiencyandprofitabilityoftheCompanyandacceleratethepaceofbeaworld-classminingdevelopmententerprise,itintendstoconductanassetreplacementwithitscontrollingshareholder,BenxiSteel&Iron(Group)Co.,Ltd.(hereinafterreferredtoas"BenxiSteel&Iron"),specifically,theassetstobereceivedbeingmining-relatedassetsunderBenxiSteel&Iron,tobesurrenderedbeingtheassetsandliabilitiesrelatedtoalltheCompany'sironandsteelbusinesses,andthedifferencebetweenreceivedandsurrendermadeupincashbyonepartytotheother.Atpresent,thetransactionisstillintheplanningstage,whichmeansspecificinformationsuchasthescopeandpricingoftheunderlyingassetshaveyettobefinalizedandnoagreementhasbeensignedbythetwosides.Thetransactionproposalstillrequiresfurtherdemonstration,communicationandconsultation,andissubjecttonecessarydecision-makingandapprovalproceduresinaccordancewithrelevantlaws,regulationsandtheArticlesofAssociationoftheCompany.Therearestillsignificantuncertaintiesintherelevantmatters.
XVI.Notestothefinancialstatementsofparentcompany
1.Accountsreceivable
(1)AccountsreceivabledisclosedbycategoryUnit:RMB
| Category | Closingbalance | Openingbalance | ||||||||
| Bookbalance | Provisionforbaddebts | Bookvalue | Bookbalance | Provisionforbaddebts | Bookvalue | |||||
| Amount | Proportion | Amount | Proportionaccrued | Amount | Proportion | Amount | Proportionaccrued | |||
| Accountsreceivablewithprovisionforbaddebtsbyindividualitem | 48,196,244.68 | 4.41% | 48,196,244.68 | 100.00% | 47,762,337.18 | 8.90% | 47,762,337.18 | 100.00% | ||
| Including: | ||||||||||
| Accountsreceivablewithprovisionforbaddebtsbyportfolio | 1,045,652,547.13 | 95.59% | 114,616,750.55 | 10.96% | 931,035,796.58 | 488,701,089.91 | 91.10% | 135,069,526.49 | 27.64% | 353,631,563.42 |
| Including: | ||||||||||
| Portfolio1：Agingportfolio | 886,147,539.07 | 81.01% | 114,616,750.55 | 12.93% | 771,530,788.52 | 328,112,713.51 | 61.16% | 135,069,526.49 | 41.17% | 193,043,187.02 |
| Portfolio2：Portfolioofrelatedpartyincombination | 159,505,008.06 | 14.58% | 159,505,008.06 | 160,588,376.40 | 29.93% | 160,588,376.40 | ||||
| Total | 1,093,848,791.81 | 100.00% | 162,812,995.23 | 931,035,796.58 | 536,463,427.09 | 100.00% | 182,831,863.67 | 353,631,563.42 | ||
Provisionforbaddebtsbyindividualitem：48,196,244.68
Unit:RMB
| Name | Closingbalance | |||
| Bookbalance | Provisionforbaddebts | Proportionaccrued | Reasonforaccrual | |
| BenxiNanfenXinheMetallurgicalBurdenCo.,Ltd. | 48,196,244.68 | 48,196,244.68 | 100.00% | Productionhasceased |
| Total | 48,196,244.68 | 48,196,244.68 | ||
Provisionforbaddebtsbyportfolio：
Unit:RMB
| Name | Closingbalance | ||
| Bookbalance | Provisionforbaddebts | Proportionaccrued | |
| Within1year(including1year) | 765,065,841.39 | 7,650,658.42 | 1.00% |
| 1-2years | 14,717,227.92 | 1,471,722.79 | 10.00% |
| 2-3years | 1,087,625.52 | 217,525.10 | 20.00% |
| Over3years | 105,276,844.24 | 105,276,844.24 | 100.00% |
| Total | 886,147,539.07 | 114,616,750.55 | |
Basisfordeterminingthisportfolio:
Iftheprovisionforbaddebtsonaccountsreceivableisbasedonthegeneralmodelofexpectedcreditlosses,pleaserefertothedisclosureonotherreceivablesforinformationrelatingtotheprovisionforbaddebts:
□Applicable?NotapplicableDisclosurebyagingUnit:RMB
| Aging | Bookbalance |
| Within1year(including1year) | 924,570,849.45 |
| 1-2years | 14,717,227.92 |
| 2-3years | 1,087,625.52 |
| Over3years | 153,473,088.92 |
| 3-4years | 153,473,088.92 |
| Total | 1,093,848,791.81 |
(2)Accrual,recoveryorreversalofprovisionforbaddebtsintheperiodAccrualofprovisionforbaddebts:
Unit:RMB
| Category | Openingbalance | Changesintheperiod | Closingbalance | |||
| Accrual | Recoveryorreversal | Writeoff | Others | |||
| AccountsreceivableProvisionforbaddebts | 182,831,863.67 | 8,585,581.32 | 28,604,449.76 | 162,812,995.23 | ||
| Total | 182,831,863.67 | 8,585,581.32 | 28,604,449.76 | 162,812,995.23 | ||
Significantamountofrecoveryorreversalofprovisionforbaddebtsintheperiod:
Unit:RMB
| Nameofcompany | Recoveryorreversalamount | Recoveryway |
(3)Actualwrite-offaccountsreceivableintheperiodUnit:RMB
| Item | Write-offamount |
| Accountsreceivablewriteoff | 28,604,449.76 |
Significantwrite-offaccountsreceivable:
Unit:RMB
| Nameofcompany | Natureofaccountsreceivable | Write-offamount | Reasonforwrite-off | Write-offproceduresperformed | Whethertheamountarisesfromarelatedtransaction |
| ChangzhouForeignEnterpriseGoods&MaterialsGeneralCompany | Paymentforgoods | 9,008,967.00 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| ShenyangWeldedPipeFactory | Paymentforgoods | 3,991,372.27 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| BenxiCivilAffairsHongdaMetalRestructuringPlant | Paymentforgoods | 2,386,307.13 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| YanjiRongjunBuildingMaterialsSalesDepartment | Paymentforgoods | 2,295,095.34 | Cancelled | LegaladviceandapprovalbyBoardofDirectors | No |
| ZhuhaiSpecialEconomicZoneHuaxinyueIndustrialCo.,Ltd. | Paymentforgoods | 1,883,089.58 | Cancelled | LegaladviceandapprovalbyBoardofDirectors | No |
| DalianFreeTradeZoneBendaSpecialSteelCo.,Ltd. | Paymentforgoods | 1,464,685.47 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| WafangdianBengangSpecialSteelSalesCo.,Ltd. | Paymentforgoods | 992,110.82 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| DalianFreeTradeZoneMaofengInternationalIndustryandTradeCompany | Paymentforgoods | 766,111.09 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| TianjinBengangSpecialSteelSalesCo.,Ltd. | Paymentforgoods | 749,215.44 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| DalianEconomicandTechnological | Paymentforgoods | 650,313.34 | Cancelled | Legaladviceandapproval | No |
| Nameofcompany | Natureofaccountsreceivable | Write-offamount | Reasonforwrite-off | Write-offproceduresperformed | Whethertheamountarisesfromarelatedtransaction |
| DevelopmentZoneBengangSpecialSteelSalesOffice | byBoardofDirectors | ||||
| BenxiBranchofDalianHardwareandMineralImportandExportCompany | Paymentforgoods | 613,819.73 | Cancelled | LegaladviceandapprovalbyBoardofDirectors | No |
| HefeiZhongyaCementMachineFactory | Paymentforgoods | 435,086.35 | Cancelled | LegaladviceandapprovalbyBoardofDirectors | No |
| ChengduBenteBuildingMaterialsManagementCompany | Paymentforgoods | 345,428.35 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| MaterialSupplyandMarketingCompanyofShenyangEnvironmentalProtectionEquipmentIndustryCompany | Paymentforgoods | 343,523.05 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| LingningLinyuanSteel-tubeFactory | Paymentforgoods | 340,167.23 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| Others | Paymentforgoods | 2,339,157.57 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| Total | 28,604,449.76 |
Notetowrite-offAccountsreceivable：
(4)AccountsreceivableofthetopfiveclosingbalancescollectedbyarrearsUnit:RMB
| Nameofcompany | Closingbalanceofaccountsreceivable | Proportiontototalclosingbalanceofaccountsreceivable | Closingbalanceofprovisionforbaddebts |
| Unit1 | 566,960,606.92 | 51.83% | 5,669,606.07 |
| Unit2 | 157,101,856.36 | 14.36% | |
| Unit3 | 73,094,699.54 | 6.68% | 730,947.00 |
| Unit4 | 51,257,341.26 | 4.69% | 1,756,550.97 |
| Unit5 | 48,196,244.68 | 4.41% | 48,196,244.68 |
| Total | 896,610,748.76 | 81.97% |
2.OtherreceivablesUnit:RMB
| Item | Closingbalance | Openingbalance |
| Interestreceivable | 2,014,931.61 | |
| Otherreceivables | 150,724,545.56 | 266,591,116.91 |
| Total | 150,724,545.56 | 268,606,048.52 |
(1)Interestreceivable
1)ClassificationofinterestreceivableUnit:RMB
| Item | Closingbalance | Openingbalance |
| Fixeddeposit | 2,014,931.61 | |
| Total | 2,014,931.61 |
(2)Otherreceivables
1)OtherreceivablesclassifiedbynatureofmoneyUnit:RMB
| Natureofmoney | Closingbookbalance | Openingbookbalance |
| Currentaccounts | 205,620,987.47 | 327,876,947.80 |
| Others | 8,506,439.44 | 10,232,392.89 |
| Total | 214,127,426.91 | 338,109,340.69 |
2)AccrualofprovisionforbaddebtsUnit:RMB
| Provisionforbaddebts | Stage1 | Stage2 | Stage3 | Total |
| 12-monthexpectedcreditlosses | Lifetimeexpectedcreditlosses(nocreditimpairment) | Lifetimeexpectedcreditlosses(creditimpairmenthasoccurred) | ||
| BalanceasatJanuary1st,2022 | 526,800.70 | 6,305,393.56 | 64,686,029.52 | 71,518,223.78 |
| BalanceasatJanuary1st,2022intheperiod | ||||
| --TransferredtoStage2 | -64,969.07 | 64,969.07 | ||
| --TransferredtoStage3 | -114,780.42 | 114,780.42 |
| Provisionforbaddebts | Stage1 | Stage2 | Stage3 | Total |
| 12-monthexpectedcreditlosses | Lifetimeexpectedcreditlosses(nocreditimpairment) | Lifetimeexpectedcreditlosses(creditimpairmenthasoccurred) | ||
| BalanceasatJanuary1st,2022 | 526,800.70 | 6,305,393.56 | 64,686,029.52 | 71,518,223.78 |
| Accrualintheperiod | 339,228.81 | -4,901,909.83 | 221,645.90 | -4,341,035.12 |
| Reversalintheperiod | 0.00 | |||
| Chargeoffintheperiod | 0.00 | |||
| Write-offintheperiod | 3,774,307.31 | 3,774,307.31 | ||
| Otherchanges | 0.00 | |||
| BalanceasatDecember31st,2022 | 801,060.44 | 1,353,672.38 | 61,248,148.53 | 63,402,881.35 |
Significantchangesinbookbalanceofprovisionforlossesintheperiod:
□Applicable?NotApplicableDisclosebyagingUnit:RMB
| Aging | Bookbalance |
| Within1year(including1year) | 89,160,291.73 |
| 1-2years | 58,187,051.40 |
| 2-3years | 3,519,908.21 |
| Over3years | 63,260,175.57 |
| 3-4year | 63,260,175.57 |
| Total | 214,127,426.91 |
3)Accrual,recoveryorreversalofprovisionforbaddebtsintheperiodAccrualofprovisionforbaddebts:：
Unit:RMB
| Category | Openingbalance | Changesintheperiod | Closingbalance | |||
| Accrual | Recoveryorreversal | Write-off | Others | |||
| OtherreceivablesProvisionforbaddebts | 71,518,223.78 | -4,341,035.12 | 3,774,307.31 | 63,402,881.35 | ||
| Total | 71,518,223.78 | -4,341,035.12 | 3,774,307.31 | 63,402,881.35 | ||
Significantamountofrecoveryorreversalofprovisionforbaddebtsintheperiod:
Unit:RMB
| Nameofcompany | recoveryorreversalamount | Recoveryway |
4)Actualwrite-offotherreceivablesintheperiodUnit:RMB
| Item | Write-offamount |
| Write-offotherreceivables | 3,774,307.31 |
Significantwrite-offotherreceivables：
Unit:RMB
| Nameofcompany | Natureofaccountsreceivable | Write-offamount | Reasonforwrite-off | Write-offproceduresperformed | Whethertheamountarisesfromarelatedtransaction |
| BenxiManchuAutonomousCountyDibangConcreteCo.,Ltd. | Paymentforgoods | 2,202,434.85 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| LimingFarmofBenxiForestryDepartmentofShenyangMiningBureau | Paymentforgoods | 225,088.76 | Cancelled | LegaladviceandapprovalbyBoardofDirectors | No |
| BenxiLifaNewBuildingMaterialsCo.,Ltd. | Paymentforgoods | 186,772.35 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| BenxiIronandSteelRecyclingMaterialsPlant | Paymentforgoods | 131,098.24 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| BenxiXihuDistrictHuafengSmeltingPlant | Paymentforgoods | 100,150.00 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| BenxiFuledoPipeCo.,Ltd. | Paymentforgoods | 39,904.04 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| BenxiXihuDistrictXiujiangPaperProductsFactory | Paymentforgoods | 32,942.48 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| BenxiPlasticMiningandMetallurgyMachineryFactory | Paymentforgoods | 31,257.51 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| XihuTarChemicalPlant | Paymentforgoods | 21,309.78 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| BenxiIronandSteel(Group)ChintBuildingMaterialsCo.,Ltd. | Paymentforgoods | 18,673.20 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | Yes |
| BengangCrudeFuelDivisionDistributionCompany | Paymentforgoods | 18,001.73 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| Nameofcompany | Natureofaccountsreceivable | Write-offamount | Reasonforwrite-off | Write-offproceduresperformed | Whethertheamountarisesfromarelatedtransaction |
| ComprehensivePlantofOxygenPlantofBenxiIronandSteel | Paymentforgoods | 18,000.00 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| TheSecondSmallRollingMillofBenxiIronandSteel | Paymentforgoods | 17,522.80 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| Supplyandmarketingofficeseniormetalworkingplant | Paymentforgoods | 16,554.16 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| BengangAutoPartsCompany | Paymentforgoods | 12,165.92 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| BengangSheetProcessingPlant | Paymentforgoods | 11,093.60 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| BengangPrimaryRollingMiniMill | Paymentforgoods | 9,355.68 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| BengangPrimaryRolledPlateProcessingPlant | Paymentforgoods | 8,963.60 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| BenxiShenquanCompany | Paymentforgoods | 8,763.52 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| Others | Paymentforgoods | 664,255.09 | Asuspendedcompanythatisunreachableforalongtimewithoutbusinesstransactionsandincludedinaccountcancellationmanagement | LegaladviceandapprovalbyBoardofDirectors | No |
| Total | 3,774,307.31 |
Notetowrite-offotherreceivables:
5)OtherreceivablesofthetopfiveclosingbalancescollectedbyarrearsUnit:RMB
| Nameofcompany | Natureofmoney | Closingbalance | Aging | Proportiontototalclosingbalanceofotherreceivables | Closingbalanceofprovisionforbaddebts |
| Thefirst | Currentaccounts | 17,624,754.20 | 0-2years | 8.23% | |
| Thesecond | Currentaccounts | 13,028,492.10 | 1-2years | 6.08% | 433,910.93 |
| Thethird | Currentaccounts | 11,612,008.77 | 1year-Over3years | 5.42% | 11,612,008.77 |
| Thefourth | Currentaccounts | 11,348,676.33 | 1-2years | 5.30% | |
| Thefifth | Currentaccounts | 8,437,188.68 | Within1year | 3.94% | 84,371.89 |
| Total | 62,051,120.08 | 28.97% | 12,130,291.59 |
3.Long-termequityinvestmentsUnit:RMB
| Item | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
| Investmentsinsubsidiaries | 2,222,281,590.24 | 2,222,281,590.24 | 2,015,186,190.50 | 2,015,186,190.50 | ||
| Investmentsinjointventuresandassociates | 47,996,314.61 | 47,996,314.61 | ||||
| Total | 2,270,277,904.85 | 2,270,277,904.85 | 2,015,186,190.50 | 2,015,186,190.50 | ||
(1)InvestmentsinsubsidiariesUnit:RMB
| Investee | Openingbalance(bookvalue) | Changesintheperiod | Closingbalance(bookvalue) | Closingbalanceofprovisionforimpairment | |||
| Additionalinvestments | Reducedinvestments | Accrualofprovisionforimpairment | Others | ||||
| GuangzhouBengangSteel&IronTradingCo.,Ltd | 30,000,000.00 | 170,000,000.00 | 200,000,000.00 | ||||
| ShanghaiBengangMetallurgicalTechnologyCo.,Ltd. | 30,000,000.00 | 199,936,718.57 | 229,936,718.57 | ||||
| DalianBenruitongAutomobileMaterialTechnologyCo.,Ltd | 65,000,000.00 | 65,000,000.00 | |||||
| BengangPOSCOCold-rolledSheetCo.,Ltd. | 1,019,781,571.10 | 1,019,781,571.10 | |||||
| GuangzhouBengangSteel&IronTradingCo.,Ltd. | 28,144,875.36 | 28,144,875.36 | |||||
| YantaiBengangSteelSalesCo.,Ltd. | 49,100,329.41 | 170,000,000.00 | 219,100,329.41 | ||||
| TianjinBengangSteelTradeCo.,Ltd. | 60,318,095.80 | 170,000,000.00 | 230,318,095.80 | ||||
| BenxiBengangSteel&IronSalesCo.,Ltd. | 30,000,000.00 | 30,000,000.00 | |||||
| ShenyangBengangBengangMetallurgyScienceandTechnologyCo.,Ltd | 30,000,000.00 | 170,000,000.00 | 200,000,000.00 | ||||
| BengangBaojin(Shenyang)autonewmaterialtechnologyCo.,Ltd. | 51,000,000.00 | 51,000,000.00 | |||||
| BengangSteelLiaoyangQiutuanCo.,Ltd. | 529,899,801.38 | 529,899,801.38 | |||||
| HarbinBengangEconomicTradingCo.,Ltd. | 29,923,398.23 | 29,923,398.23 | |||||
| NanjingBengangMaterialSalesCo.,Ltd. | 2,081,400.65 | 2,081,400.65 | |||||
| WuxiBengangSteel&IronSalesCo.,Ltd. | 29,936,718.57 | 29,936,718.57 | |||||
| ChongqingLiaobenSteel&IronTradingCo.,Ltd. | 30,000,000.00 | 30,000,000.00 | |||||
| Total | 2,015,186,190.50 | 879,936,718.57 | 672,841,318.83 | 2,222,281,590.24 | |||
(2)InvestmentsinjointventuresandassociatesUnit:RMB
| Investee | Openingbalance(bookvalue) | Changesintheperiod | Closingbalance(bookvalue) | Closingbalanceofprovisionforimpairment | |||||||
| Additionalinvestments | Reducedinvestments | Investmentincomerecognizedunderequitymethod | Adjustmenttoothercomprehensiveincome | Otherequitychanges | Declarationofcashdividendorprofit | Accrualofprovisionforimpairment | Others | ||||
| I.Jointventures | |||||||||||
| II.Associates | |||||||||||
| BengangBaojin(Shenyang)autonewmaterialtechnologyCo.,Ltd. | 51,000,000.00 | -580,788.56 | -2,422,896.83 | 47,996,314.61 | |||||||
| Subtotal | 51,000,000.00 | -580,788.56 | -2,422,896.83 | 47,996,314.61 | |||||||
| Total | 51,000,000.00 | -580,788.56 | -2,422,896.83 | 47,996,314.61 | |||||||
4.OperatingincomeandoperatingcostUnit:RMB
| Item | Amountincurredintheperiod | Amountincurredinthepriorperiod | ||
| Income | Cost | Income | Cost | |
| Mainbusiness | 58,937,350,684.09 | 59,090,024,551.87 | 69,727,193,761.59 | 65,005,072,705.35 |
| Otherbusinesses | 4,144,406,405.05 | 4,075,230,315.93 | 8,994,267,964.12 | 8,198,390,770.21 |
| Total | 63,081,757,089.14 | 63,165,254,867.80 | 78,721,461,725.71 | 73,203,463,475.56 |
Informationrelatingtoincome:
Unit:RMB
| Classificationofcontracts | Segment1 | Segment2 | Incomefrommainbusiness | Incomefromotherbusiness | Total |
| Commoditytype | |||||
| Including: |
Classifiedbyoperationarea
| Classifiedbyoperationarea | 58,937,350,684.09 | 4,144,406,405.05 | 63,081,757,089.14 | |
| Including: | ||||
| Including:Domestic | 54,451,160,983.64 | 4,144,406,405.05 | 58,595,567,388.69 | |
| Overseas | 4,486,189,700.45 | 4,486,189,700.45 | ||
| Marketorcustomertype | ||||
| Including: |
Contracytype
| Contracytype |
| Including: |
ClassifiedbytransfertimeofCommodity
| ClassifiedbytransfertimeofCommodity | 58,937,350,684.09 | 4,144,406,405.05 | 63,081,757,089.14 | |
| Including: | ||||
| Including:recognizedatapointoftime | 58,937,350,684.09 | 4,141,838,244.24 | 63,079,188,928.33 | |
| recognizedataperiodoftime | 2,568,160.81 | 2,568,160.81 | ||
| Classifiedbycontractterm | ||||
| Including: |
Classifiedbysalechannel
| Classifiedbysalechannel |
| Including: |
Total
| Total | 58,937,350,684.09 | 4,144,406,405.05 | 63,081,757,089.14 |
Informationrelatingtoperformanceobligations:
NoneInformationrelatingtothetransactionpriceapportionedtotheremainingperformanceobligation:
AmountofincomecorrespondingtoperformanceobligationsthathavebeencontractedforbutnotyetperformedornotyetcompletedattheendofthereportingperiodisRMB0.00.Othernotes:
5.InvestmentincomeUnit:RMB
| Item | Amountincurredintheperiod | Amountincurredinthepriorperiod |
| Investmentincomefromlong-termequityinvestmentsaccountedforundertheequitymethod | -580,788.56 | |
| Investmentincomefromthedisposaloflong-termequityinvestments | 263,652,271.12 | -1,341,423.32 |
| Investmentincomefromthedisposaloffinancialassetsheldfortrading | -6,558,780.75 | -124,911,004.89 |
| Incomefromdebtrestructuring | 1,243,883.36 | |
| Others | 2,879,850.07 | 2,436,869.33 |
| Total | 260,636,435.24 | -123,815,558.88 |
XVII.Supplementaryinformation
1.Detailsofnon-recurringprofitandlossfortheperiod?Applicable□NotapplicableUnit:RMB
| Item | Amount | Note |
| Profitorlossonthedisposalofnon-currentassets | 3,648,546.62 | |
| Governmentgrantsincludedtocurrentprofitorloss(exceptthosecloselyrelatedtotheCompany'snormalbusinessoperations,whichareinlinewithnationalpoliciesandareenjoyedonanongoingbasisatafixedorquantitativerateinaccordancewithcertainstandards) | 72,300,830.48 | |
| Profitorlossonentrustingotherswiththeinvestmentormanagementofassets | 2,879,850.07 | |
| Profitorlossondebtrestructuring | 1,274,270.98 | |
| Othernon-operatingincomeandexpensesotherthanthosementionedabove | 13,507,766.62 | |
| Otherprofitorlossitemsthatmeetthedefinitionofnon-recurringprofitorloss | 92,174,927.78 | |
| Less:Incometaxeffect | 1,956,581.46 | |
| Effectofminorityinterests | 391,139.95 | |
| Total | 183,438,471.14 | -- |
Otherspecificprofitorlossitemsthatmeetthedefinitionofnon-recurringprofitorloss:
?Applicable□Notapplicable
?Descriptionof"Otherprofitorlossitemsthatmeetthedefinitionofnon-recurringprofitorloss"andnon-recurringprofitorlossitemsthataredefinedasrecurringprofitandlossitemsbasedonthenatureandcharacteristicsofitsnormalbusinessoperations
| Item | Amount | Reason |
| Otherprofitorlossitemsthatmeetthedefinitionofnon-recurringprofitorloss | 4,154,883.39 | GainarisingfromremeasurementoftheremainingequityinterestatfairvalueafterlossofcontroloverShenyangBaojin |
| Otherprofitorlossitemsthatmeetthedefinitionofnon-recurringprofitorloss | 88,020,044.39 | Investmentincomefromthedisposaloflong-termequityinvestmentinLiaoyangQiutuan |
Thedescriptionofnon-recurringprofitorlossitemslistedintheExplanatoryNoticeNo.1onDisclosureofInformationbyCompaniesIssuingPublicSecurities-Non-recurringprofitorLossthataredefinedas
recurringprofitandlossitems:
□Applicable?Notapplicable
2.Returnonequityandearningspershare
| Profitforthereportingperiod | Weightedaveragereturnonequity | Earningspershare | |
| Basicearningspershare(RMB/share) | Dilutedearningspershare(RMB/share) | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | -0.06% | -0.300 | -0.300 |
| Netprofitafternon-recurringprofitandlossattributabletoordinaryshareholdersoftheCompany | -0.06% | -0.345 | -0.345 |