——BengangSteelPlatesCo.,Ltd.
——FINANCIALSTATEMENTS
(January1,2025–June30,2025)
August2025
BengangSteelPlatesCo.,Ltd.INTERIMFINANCIALSTATEMENTS2025
BengangSteelPlatesCo.,Ltd.FINANCIALSTATEMENTS
(From1January2025to30June2025)
| INDEX | PAGES | |
| FINANCIALSTATEMENTS | ||
| CONSOLIDATEDSTATEMENTOFFINANCIALPOSITIONANDSTATEMENTOFFINANCIALPOSITION | 1-4 | |
| CONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOMEANDSTATEMENTOFCOMPREHENSIVEINCOME | 5-6 | |
| CONSOLIDATEDSTATEMENTOFCASHFLOWSANDSTATEMENTOFCASHFLOWS | 7-8 | |
| CONSOLIDATEDSTATEMENTOFCHANGESINEQUITYANDSTATEMENTOFCHANGESINEQUITY | 9-12 | |
| NOTESTOTHEFINANCIALSTATEMENTS | 1-163 |
FinancialStatementsPage1
BENGANGSTEELPLATESCO.,LTD.CONSOLIDATEDSTATEMENTOFFINANCIALPOSITION
Asat30June2025(ExpressedinRenminbiunlessotherwiseindicated)
| Assets | Notes5 | Jun30,2025 | Dec31,2024 |
| Currentassets | |||
| Cashatbankandonhand | (1) | 2,119,971,644.73 | 2,453,888,470.48 |
| Settlementprovisions | |||
| Capitallent | |||
| Financialassetsheldfortrading | |||
| Derivativefinancialassets | |||
| Notesreceivable | (2) | 420,783,021.23 | 607,279,481.42 |
| Accountsreceivable | (3) | 933,243,164.81 | 501,484,081.73 |
| Accountsreceivablefinancing | (4) | 5,552,656.65 | 64,399,942.70 |
| Prepayments | (5) | 821,032,065.29 | 391,823,135.87 |
| Premiumreceivable | |||
| Reinsuranceaccountsreceivable | |||
| Receivabledepositforreinsurancecontract | |||
| Otherreceivables | (6) | 16,354,769.47 | 149,015,138.26 |
| Redemptoryfinancialassetsforsale | |||
| Inventories | (7) | 7,049,937,599.37 | 7,333,084,694.27 |
| Including:dataassets | |||
| Contractassets | |||
| Assetsheldforsale | |||
| Non-currentassetsduewithinoneyear | |||
| Othercurrentassets | (8) | 360,129,648.55 | 437,081,260.66 |
| Totalcurrentassets | 11,727,004,570.10 | 11,938,056,205.39 | |
| Non-currentassets | |||
| Loanandadvancesissued | |||
| DebtInvestments | |||
| Otherdebtinvestments | |||
| Long-termreceivables | |||
| Long-termequityinvestments | (9) | 45,413,221.72 | 45,413,221.72 |
| Otherequityinstrumentinvestments | (10) | 933,426,254.63 | 933,426,254.63 |
| Othernon-currentfinancialassets | |||
| Investmentproperty | |||
| Fixedassets | (11) | 26,050,690,523.41 | 26,426,320,453.57 |
| Constructioninprogress | (12) | 4,537,520,033.00 | 3,934,442,501.50 |
| Productivebiologicalassets | |||
| Oilandgasassets | |||
| Right-of-useassets | (13) | 1,646,483,647.30 | 1,685,925,710.14 |
| Intangibleassets | (14) | 389,207,571.30 | 394,780,068.68 |
| Including:dataassets | |||
| Developmentexpenditure | |||
| Including:dataassets | |||
| Goodwill | |||
| Long-termdeferredexpenses | |||
| Deferredtaxassets | (15) | 365,101,631.17 | 371,234,449.79 |
| Othernon-currentassets | (16) | 63,242,806.75 | 86,297,275.16 |
| Totalnon-currentassets | 34,031,085,689.28 | 33,877,839,935.19 | |
| Totalassets | 45,758,090,259.38 | 45,815,896,140.58 |
Thenotestothefinancialstatementsattachedformpartofthesefinancialstatements.LegalRepresentative:ChiefFinancialOfficer:ChiefAccountant:
FinancialStatementsPage2
BENGANGSTEELPLATESCO.,LTD.CONSOLIDATEDSTATEMENTOFFINANCIALPOSITION(Continued)
Asat30June2025(ExpressedinRenminbiunlessotherwiseindicated)
| Liabilitiesandequities | Notes5 | Jun30,2025 | Dec31,2024 |
| CurrentLiabilities | |||
| Short-termloans | (18) | 771,932,029.09 | 371,055,490.50 |
| Loanfromcentralbank | |||
| Loanfromotherbanks | |||
| Financialliabilityheldfortrading | |||
| Derivativefinancialliabilities | |||
| Notespayable | (19) | 13,242,519,960.72 | 12,982,703,669.86 |
| Accountspayable | (20) | 2,946,268,814.64 | 2,761,759,439.36 |
| Advancefromcustomers | (21) | 60,550.47 | 59,327.21 |
| Contractliabilities | (22) | 2,720,427,152.25 | 2,908,598,425.73 |
| Financialassetssoldforrepurchase | |||
| Depositsfromcustomersandinterbank | |||
| Receiptfromvicariouslytradedsecurities | |||
| Receiptfromvicariouslyunderwritingsecurities | |||
| Employeebenefitspayable | (23) | 9,580,745.39 | 1,773,068.35 |
| Currenttaxliabilities | (24) | 41,995,727.81 | 54,070,097.83 |
| Otherpayables | (25) | 2,712,614,915.79 | 2,354,694,200.01 |
| Handlingchargesandcommissionpayable | |||
| Reinsuranceaccountspayable | |||
| Liabilitiesheldforsale | |||
| Non-currentliabilitiesduewithinoneyear | (26) | 6,235,647,286.25 | 1,030,502,916.66 |
| Othercurrentliabilities | (27) | 302,028,180.11 | 328,981,058.74 |
| Totalcurrentliabilities | 28,983,075,362.52 | 22,794,197,694.25 | |
| Non-currentliabilities | |||
| Provisionforinsurancecontract | |||
| Long-termloans | (28) | 3,544,759,075.31 | 2,891,941,462.40 |
| Bondspayable | (29) | 5,569,899,459.53 | |
| Including:Preferredstock | |||
| Perpetualbond | |||
| Leaseliabilities | (30) | 1,615,827,405.83 | 1,633,911,586.51 |
| Long-termpayables | |||
| Long-termemployeebenefitspayable | |||
| Estimatedliabilities | |||
| Deferredincome | (31) | 189,505,772.22 | 173,919,087.47 |
| Deferredtaxliabilities | (15) | 246,977,220.84 | 252,893,530.26 |
| Othernon-currentliabilities | |||
| Totalnon-currentliabilities | 5,597,069,474.20 | 10,522,565,126.17 | |
| Totalliabilities | 34,580,144,836.72 | 33,316,762,820.42 | |
| Shareholders'equity: | |||
| Sharecapital | (32) | 4,108,232,205.00 | 4,108,228,157.00 |
| Otherequityinstruments | (33) | 947,846,937.93 | 947,850,195.03 |
| Including:Preferredstock | |||
| Perpetualbond | |||
| Capitalreserves | (34) | 13,225,644,002.21 | 13,225,632,166.95 |
| Less:treasuryshares | |||
| Othercomprehensiveincome | (35) | -93,407,196.62 | -93,407,196.62 |
| Specialreserves | (36) | 16,177,702.44 | 809,649.65 |
| Surplusreserves | (37) | 1,195,116,522.37 | 1,195,116,522.37 |
| Generalriskreserve | |||
| Undistributedprofits | (38) | -8,896,289,413.80 | -7,497,011,632.90 |
| Totalequityattributabletoequityholdersoftheparentcompany | 10,503,320,759.53 | 11,887,217,861.48 | |
| Non-controllinginterests | 674,624,663.13 | 611,915,458.68 | |
| Totalshareholder'sequity | 11,177,945,422.66 | 12,499,133,320.16 | |
| Totalofliabilitiesandowners’equity | 45,758,090,259.38 | 45,815,896,140.58 |
Thenotestothefinancialstatementsattachedformpartofthesefinancialstatements.
LegalRepresentative：
ChiefFinancialOfficer:ChiefAccountant:
FinancialStatementsPage3
BENGANGSTEELPLATESCO.,LTD.STATEMENTOFFINANCIALPOSITION
Asat30June2025(ExpressedinRenminbiunlessotherwiseindicated)
| Assets | Notes15 | Jun30,2025 | Dec31,2024 |
| Currentassets | |||
| Cashatbankandonhand | 1,999,026,895.77 | 1,928,597,252.93 | |
| Financialassetsheldfortrading | |||
| Derivativefinancialassets | |||
| Notesreceivable | 761,406,501.25 | 879,167,997.23 | |
| Accountsreceivable | (1) | 1,089,580,929.62 | 899,413,301.62 |
| Accountsreceivablefinancing | 25,550,265.17 | 67,033,501.52 | |
| Prepayments | 1,384,148,744.17 | 552,668,067.77 | |
| Otherreceivables | (2) | 77,724,911.85 | 399,809,663.60 |
| Inventories | 6,218,522,624.32 | 6,510,049,399.94 | |
| Including:dataassets | |||
| Contractassets | |||
| Assetsheldforsale | |||
| Non-currentassetsduewithinoneyear | |||
| Othercurrentassets | 322,005,140.86 | 401,232,007.64 | |
| Totalcurrentassets | 11,877,966,013.01 | 11,637,971,192.25 | |
| Non-currentassets | |||
| Debtinvestments | |||
| Otherdebtinvestments | |||
| Long-termreceivables | |||
| Long-termequityinvestments | (3) | 2,467,956,681.15 | 2,437,356,681.15 |
| Otherequityinstrumentinvestments | 933,426,254.63 | 933,426,254.63 | |
| Othernon-currentfinancialassets | |||
| Investmentproperty | |||
| Fixedassets | 25,007,974,186.47 | 25,361,023,150.98 | |
| Constructioninprogress | 4,370,303,939.29 | 3,813,480,844.57 | |
| Productivebiologicalassets | |||
| Oilandgasassets | |||
| Right-of-useassets | 1,646,483,647.30 | 1,685,925,710.14 | |
| Intangibleassets | 203,017,353.08 | 206,105,870.50 | |
| Including:dataassets | |||
| Developmentexpenditure | |||
| Including:dataassets | |||
| Goodwill | |||
| Long-termdeferredexpenses | |||
| Deferredtaxassets | 364,151,295.05 | 370,213,799.88 | |
| Othernon-currentassets | 62,502,489.27 | 85,556,957.68 | |
| Totalnon-currentassets | 35,055,815,846.24 | 34,893,089,269.53 | |
| Totalassets | 46,933,781,859.25 | 46,531,060,461.78 |
Thenotestothefinancialstatementsattachedformpartofthesefinancialstatements.LegalRepresentative:ChiefFinancialOfficer:ChiefAccountant:
FinancialStatementsPage4
BENGANGSTEELPLATESCO.,LTD.STATEMENTOFFINANCIALPOSITION(Continued)
Asat30June2025(ExpressedinRenminbiunlessotherwiseindicated)
| Liabilitiesandshareholders'equities | Notes15 | Jun30,2025 | Dec31,2024 |
| Currentliabilities | |||
| Short-termloans | 731,668,054.66 | 371,055,490.50 | |
| Financialliabilityheldfortrading | |||
| Derivativefinancialliabilities | |||
| Notespayable | 12,073,496,699.72 | 11,915,812,506.01 | |
| Accountspayable | 3,349,716,181.85 | 2,881,087,998.48 | |
| Prepayments | |||
| Contractliabilities | 6,734,994,549.72 | 6,637,545,634.05 | |
| Employeebenefitspayable | 7,691,011.20 | 354,432.32 | |
| Currenttaxliabilities | 24,999,888.62 | 28,685,832.43 | |
| Otherpayables | 2,778,965,167.50 | 2,206,387,975.74 | |
| Liabilitiesheldforsale | |||
| Non-currentliabilitiesduewithinoneyear | 6,235,647,286.25 | 1,030,502,916.66 | |
| Othercurrentliabilities | 41,700,590.54 | 61,868,166.75 | |
| Totalcurrentliabilities | 31,978,879,430.06 | 25,133,300,952.94 | |
| Non-currentliabilities | |||
| Longtermloans | 3,544,759,075.31 | 2,891,941,462.40 | |
| Bondspayable | 5,569,899,459.53 | ||
| Including:Preferredstock | |||
| Perpetualbond | |||
| Leaseliabilities | 1,615,827,405.83 | 1,633,911,586.51 | |
| Long-termpayables | |||
| Long-termemployeebenefitspayable | |||
| Estimatedliabilities | |||
| Deferredincome | 179,963,278.22 | 154,871,615.47 | |
| Deferredtaxliabilities | 246,977,220.84 | 252,893,530.26 | |
| Othernon-currentliabilities | |||
| Totalnon-currentliabilities | 5,587,526,980.20 | 10,503,517,654.17 | |
| Totalliabilities | 37,566,406,410.26 | 35,636,818,607.11 | |
| Shareholder’sequity: | |||
| Sharecapital | 4,108,232,205.00 | 4,108,228,157.00 | |
| Otherequityinstruments | 947,846,937.93 | 947,850,195.03 | |
| Including:Preferredstock | |||
| Perpetualbond | |||
| Capitalreserves | 12,825,154,189.28 | 12,825,142,354.02 | |
| Less:Treasuryshares | |||
| Othercomprehensiveincome | -93,407,196.62 | -93,407,196.62 | |
| Specialreserves | 13,273,126.64 | 9,276.81 | |
| Surplusreserves | 1,195,116,522.37 | 1,195,116,522.37 | |
| UndistributedProfits | -9,628,840,335.61 | -8,088,697,453.94 | |
| Totalshareholder'sequity | 9,367,375,448.99 | 10,894,241,854.67 | |
| Totalliabilitiesandshareholder’sequity | 46,933,781,859.25 | 46,531,060,461.78 |
Thenotestothefinancialstatementsattachedformpartofthesefinancialstatements.LegalRepresentative:ChiefFinancialOfficer:ChiefAccountant:
FinancialStatementsPage5
BENGANGSTEELPLATESCO.,LTD.CONSOLIDATEDSTATEMENTOFCOMPREHENSIVEINCOME
FortheperiodJan.-Jun.2025(ExpressedinRenminbiunlessotherwiseindicated)
| Items | Notes5 | Currentperiod | Previousperiod |
| 1.Totaloperatingincome | 24,697,800,421.99 | 28,366,851,887.99 | |
| Including:Operatingincome | (39) | 24,697,800,421.99 | 28,366,851,887.99 |
| Interestincome | |||
| Premiumearned | |||
| Incomefromhandlingchargesandcommission | |||
| 2.Totaloperatingcost | 26,136,426,924.70 | 29,878,230,529.33 | |
| Including:Operatingcost | (39) | 25,441,217,248.92 | 29,168,175,176.89 |
| Interestexpense | |||
| Expenditureforhandlingchargesandcommission | |||
| Surrendervalue | |||
| Netexpenditureforcompensation | |||
| Netprovisionforinsurancecontractappropriated | |||
| Bonuspaymentforpolicy | |||
| Reinsurancepremium | |||
| Taxandsurcharges | (40) | 108,022,323.47 | 106,481,289.07 |
| Sellinganddistributionexpenses | (41) | 61,464,166.53 | 71,977,059.91 |
| Generalandadministrativeexpenses | (42) | 285,764,896.43 | 359,904,698.96 |
| Researchanddevelopmentexpenses | (43) | 31,617,334.27 | 36,966,260.63 |
| Financialexpenses | (44) | 208,340,955.08 | 134,726,043.87 |
| Including:Interestexpense | 207,308,249.73 | 192,939,391.68 | |
| Interestincome | 17,521,734.29 | 20,070,259.17 | |
| Add:Otherincome | (45) | 109,012,246.69 | 90,719,972.37 |
| Incomeoninvestment（“-”forloss） | (46) | -17,631,847.31 | -31,605,308.28 |
| Including:Incomefromassociatesandjointventures | |||
| Incomefromderecognitionoffinancialassetsmeasuredatamortizedcost | -603,798.41 | ||
| Exchangegains（“-”forloss） | |||
| Netexposurehedgeincome（“-”forloss） | |||
| Gainsfromchangeoffairvalue（“-”forloss） | |||
| Creditimpairmentloss（“-”forloss） | (47) | -9,308,109.96 | 16,164,459.46 |
| Assetimpairmentloss（“-”forloss） | (48) | 36,671,170.60 | -14,313,228.28 |
| Assetsdisposalgains（“-”forloss） | (49) | 3,008.85 | 10,002,955.91 |
| 3.Operationalprofit（“-”forloss） | -1,319,880,033.84 | -1,440,409,790.16 | |
| Add:Non-operatingincome | (50) | 9,723,769.21 | 8,981,750.82 |
| Less:Non-operatingexpenses | (51) | 36,523,366.11 | 27,657,844.36 |
| 4.Totalprofit(“-”forloss) | -1,346,679,630.74 | -1,459,085,883.70 | |
| Less:Incometaxexpenses | (52) | 19,976,028.30 | 37,458,939.66 |
| 5.Netprofit（“-”forloss） | -1,366,655,659.04 | -1,496,544,823.36 | |
| 1.Classificationbycontinuingoperating | |||
| 1.Netprofitfromcontinuingoperation（“-”forloss） | -1,366,655,659.04 | -1,496,544,823.36 | |
| 2.Netprofitfromdiscontinuedoperation（“-”forloss） | |||
| 2.Classificationbyownership | |||
| 1.Netprofitattributabletotheownersofparentcompany（“-”forloss） | -1,399,277,780.90 | -1,541,206,007.44 | |
| 2.Netprofitattributabletonon-controllingshareholders（“-”forloss） | 32,622,121.86 | 44,661,184.08 | |
| 6.Othercomprehensiveincome | |||
| Othercomprehensiveincomeattributabletoownersoftheparentcompanyaftertax | |||
| 1.Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/losses | |||
| 1)Re-measurementofdefinedbenefitplansofchangesinnetdebtornetassets | |||
| 2)Othercomprehensiveincomeundertheequitymethodcannotbereclassifiedintoprofitorloss | |||
| 3)Changesinfairvalueofinvestmentsinotherequityinstruments | |||
| 4)Changesinfairvalueofcompany'screditrisk | |||
| 2.Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss. | |||
| 1)Othercomprehensiveincomeundertheequitymethodwhichcanbereclassifiedintoprofitorloss | |||
| 2)Changesinfairvalueofotherdebtinvestments | |||
| 3)Amountoffinancialassetsreclassifiedintoothercomprehensiveincome | |||
| 4)Creditimpairmentprovisionofotherdebtinvestments | |||
| 5)Cashflowhedgesreserve | |||
| 6)Translationdifferencesinforeigncurrencyfinancialstatements | |||
| 7)Others | |||
| Othercomprehensiveincomeattributabletonon-controllingshareholders’equityaftertax | |||
| 7.Totalcomprehensiveincome | -1,366,655,659.04 | -1,496,544,823.36 | |
| Totalcomprehensiveincomeattributabletotheowneroftheparentcompany | -1,399,277,780.90 | -1,541,206,007.44 | |
| Totalcomprehensiveincomeattributabletonon-controllingshareholders | 32,622,121.86 | 44,661,184.08 | |
| 8.Earningspershare | |||
| 1）Basicearningspershare | -0.341 | -0.375 | |
| 2）Dilutedearningspershare | -0.341 | -0.375 |
Thenotestothefinancialstatementsattachedformpartofthesefinancialstatements.LegalRepresentative:ChiefFinancialOfficer:ChiefAccountant:
FinancialStatementsPage6
BENGANGSTEELPLATESCO.,LTD.STATEMENTOFCOMPREHENSIVEINCOME
FortheperiodJan.-Jun.2025
(ExpressedinRenminbiunlessotherwiseindicated)
| Items | Notes15 | Currentperiod | Previousperiod |
| 1.Totaloperatingincome | (4) | 24,843,114,408.22 | 28,760,149,571.95 |
| Less:Operatingcost | (4) | 25,744,208,800.42 | 29,834,240,304.59 |
| Taxandsurcharges | 77,033,502.59 | 78,312,309.36 | |
| Sellinganddistributionexpenses | 93,709,728.93 | 72,861,508.21 | |
| Generalandadministrativeexpenses | 270,944,864.54 | 340,794,236.88 | |
| Researchanddevelopmentexpenses | 31,617,334.27 | 36,966,260.63 | |
| Financialexpenses | 209,002,624.36 | 151,347,791.22 | |
| Including:Interestexpense | 207,308,249.73 | 192,939,391.68 | |
| Interestincome | 15,302,608.67 | 16,562,599.74 | |
| Add:Otherincome | 68,822,256.72 | 58,511,958.86 | |
| Incomeoninvestment（“-”forloss） | (5) | -17,359,947.52 | -31,605,308.28 |
| Including:Incomefromassociatesandjointventures | |||
| Incomefromderecognitionoffinancialassetsmeasuredatamortizedcost | -332,016.58 | ||
| Netexposurehedgeincome（“-”forloss） | |||
| Gainsfromchangeoffairvalue（“-”forloss） | |||
| Creditimpairmentloss（“-”forloss） | -20,985,096.52 | 13,580,897.44 | |
| Assetsimpairmentloss（“-”forloss） | 36,671,170.60 | -14,313,228.28 | |
| Assetsdisposalgains（“-”forloss） | 3,008.85 | 10,000,000.00 | |
| 2.Operationalprofit（“-”forloss） | -1,516,251,054.76 | -1,718,198,519.20 | |
| Add:Non-operatingincome | 9,650,019.10 | 8,866,515.98 | |
| Less:Non-operatingexpenses | 33,395,650.60 | 27,207,319.92 | |
| 3.Totalprofit(“-”forloss) | -1,539,996,686.26 | -1,736,539,323.14 | |
| Less:Incometaxexpenses | 146,195.41 | -11,902,943.63 | |
| 4.Netprofit（“-”forloss） | -1,540,142,881.67 | -1,724,636,379.51 | |
| 1.Netprofitfromcontinuingoperation(“-”forloss) | -1,540,142,881.67 | -1,724,636,379.51 | |
| 2.Netprofitfromdiscontinuedoperation(“-”forloss) | |||
| 5.Othercomprehensiveincome | |||
| 1.Othercomprehensiveincomeitemsthatwillnotbereclassifiedintogains/losses | |||
| 1)Re-measurementofdefinedbenefitplansofchanges | |||
| 2)Othercomprehensiveincomeundertheequitymethodcannotbereclassifiedintoprofitorloss | |||
| 3)Changesinfairvalueofinvestmentsinotherequityinstruments | |||
| 4)Changesinfairvalueofcompany'screditrisk | |||
| 2.Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss. | |||
| 1)Othercomprehensiveincomeundertheequitymethodinvesteecanbereclassifiedintoprofitorloss | |||
| 2)Changesinfairvalueofotherdebtinvestments | |||
| 3)Amountoffinancialassetsreclassifiedintoothercomprehensiveincome | |||
| 4)Creditimpairmentprovisionofotherdebtinvestments | |||
| 5)Cashflowhedgesreserve | |||
| 6)Translationdifferencesinforeigncurrencyfinancialstatements | |||
| 7)Others | |||
| 6.Totalcomprehensiveincome | -1,540,142,881.67 | -1,724,636,379.51 | |
| 7.Earningspershare | |||
| 1）Basicearningspershare | |||
| 2）Dilutedearningspershare |
Thenotestothefinancialstatementsattachedformpartofthesefinancialstatements.LegalRepresentative:ChiefFinancialOfficer:ChiefAccountant:
FinancialStatementsPage7
BENGANGSTEELPLATESCO.,LTD.CONSOLIDATEDSTATEMENTOFCASHFLOWS
FortheperiodJan.-Jun.2025(ExpressedinRenminbiunlessotherwiseindicated)
| Items | Notes5 | Currentperiod | Previousperiod |
| 1.Cashflowfromoperatingactivities | |||
| Cashreceivedfromsaleofgoodsorrenderingofservices | 26,352,011,964.12 | 29,554,576,980.10 | |
| Netincreaseofcustomers'depositandinterbankdeposit | |||
| Netincreaseofloanfromcentralbank | |||
| Netincreaseofloansfromotherfinancialinstitutions | |||
| Cashreceivedforpremiumoforiginalinsurancecontract | |||
| Netcashreceivedforreinsurancebusiness | |||
| Netincreaseofdepositandinvestmentoftheinsured | |||
| Cashfromreceivinginterest,handlingchargeandcommission | |||
| Netincreaseofloansfromborrowingfunds | |||
| Netincreaseoffundforrepurchasebusiness | |||
| Netcashreceivedfromtradedsecurities | |||
| Taxrebatereceived | 77,037,466.40 | ||
| Othercashreceivedrelatingtooperatingactivities | (53) | 122,173,179.14 | 79,435,504.79 |
| Subtotalofcashinflowsfromoperatingactivities | 26,474,185,143.26 | 29,711,049,951.29 | |
| Cashpaidforgoodsandservices | 24,803,326,040.01 | 27,157,976,303.18 | |
| Netincreaseofcustomer'sloanandadvances | |||
| Netincreaseofdepositincentralbankandinterbankdeposit | |||
| Cashforpaymentofcompensationfororiginalinsurancecontract | |||
| Netincreaseincapitallent | |||
| Cashforpaymentofinterest,handlingchargeandcommission | |||
| Cashforpaymentofpolicybonus | |||
| Cashpaidtoandonbehalfofemployees | 942,556,803.50 | 1,039,547,406.66 | |
| Cashpaidforalltypesoftaxes | 197,929,978.91 | 259,409,968.23 | |
| Othercashpaidrelatingtooperatingactivities | (53) | 158,742,556.80 | 173,300,582.82 |
| Subtotalofcashoutflowsfromoperatingactivities | 26,102,555,379.22 | 28,630,234,260.89 | |
| Netcashflowsfromoperatingactivities | 371,629,764.04 | 1,080,815,690.40 | |
| 2.Cashflowsfrominvestingactivities | |||
| Cashreceivedfromdisposalofinvestments | |||
| Cashreceivedfromreturnoninvestments | |||
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 87,181,100.00 | 4,854.37 | |
| Netcashreceivedfromdisposalofsubsidiaryandotheroperatingunits | |||
| Othercashpaidrelatingtoinvestingactivities | |||
| Subtotalofcashinflowsfrominvestingactivities | 87,181,100.00 | 4,854.37 | |
| Cashpaidforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 976,150,324.56 | 508,785,779.41 | |
| Cashpaidforacquisitionofinvestments | 60,000,000.00 | ||
| Netincreaseofmortgageloan | |||
| Netcashreceivedfromsubsidiaryandotheroperatingunit | |||
| Othercashpaidrelatingtoinvestingactivities | |||
| Subtotalofcashoutflowsfrominvestingactivities | 1,036,150,324.56 | 508,785,779.41 | |
| Netcashflowsfrominvestingactivities | -948,969,224.56 | -508,780,925.04 | |
| 3.Cashflowsfromfinancingactivities | |||
| Proceedsfrominvestment | 29,400,000.00 | ||
| Including:Proceedsfrominvestmentofnon-controllingshareholdersofsubsidiary | 29,400,000.00 | ||
| Proceedsfromborrowings | 1,251,997,823.71 | 1,095,000,000.00 | |
| Otherproceedsrelatingtofinancingactivities | (53) | 1,815,330,484.81 | 1,841,743,458.53 |
| Subtotalofcashinflowsfromfinancingactivities | 3,096,728,308.52 | 2,936,743,458.53 | |
| Cashrepaymentsofborrowings | 703,625,752.00 | 1,657,310,516.00 | |
| Cashpaymentsfordistributionofdividends,profitorinterestexpenses | 337,785,953.76 | 213,951,632.57 | |
| Including:Cashpaidtonon-controllingshareholdersasdividendandprofitbysubsidiaries | 51,908,524.27 | ||
| Othercashpaymentsrelatingtofinancingactivities | (53) | 1,961,851,891.13 | 1,677,434,508.77 |
| Subtotalofcashoutflowsfromfinancingactivities | 3,003,263,596.89 | 3,548,696,657.34 | |
| Netcashflowsfromfinancingactivities | 93,464,711.63 | -611,953,198.81 | |
| 4.Effectofforeignexchangeratechangesoncashandcashequivalents | 12,181,557.53 | 22,878,220.42 | |
| 5.Netincreaseincashandcashequivalents | (54) | -471,693,191.36 | -17,040,213.03 |
| Add:Cashandcashequivalentsatthebeginningoftheperiod | (54) | 1,590,205,218.91 | 1,199,685,408.38 |
| 6.Cashandcashequivalentsattheendingoftheperiod | (54) | 1,118,512,027.55 | 1,182,645,195.35 |
Thenotestothefinancialstatementsattachedformpartofthesefinancialstatements.LegalRepresentative:ChiefFinancialOfficer:ChiefAccountant:
FinancialStatementsPage8
BENGANGSTEELPLATESCO.,LTD.
STATEMENTOFCASHFLOWS
FortheperiodJan.-Jun.2025
(ExpressedinRenminbiunlessotherwiseindicated)
| Items | Notes15 | Currentperiod | Previousperiod |
| 1.Cashflowfromoperatingactivities | |||
| Cashreceivedfromsaleofgoodsorrenderingofservices | 25,486,623,895.09 | 29,388,810,509.14 | |
| Taxrebatereceived | 73,839,161.75 | ||
| Othercashreceivedrelatingtooperatingactivities | 359,517,948.34 | 65,515,228.78 | |
| Subtotalofcashinflowsfromoperatingactivities | 25,846,141,843.43 | 29,528,164,899.67 | |
| Cashpaidforgoodsandservices | 24,109,950,616.59 | 27,619,248,120.78 | |
| Cashpaidtoandonbehalfofemployees | 869,629,604.70 | 957,610,316.32 | |
| Cashpaidforalltypesoftaxes | 126,265,175.99 | 160,249,664.86 | |
| Othercashpaidrelatingtooperatingactivities | 144,527,255.02 | 150,081,370.56 | |
| Subtotalofcashoutflowsfromoperatingactivities | 25,250,372,652.30 | 28,887,189,472.52 | |
| Netcashflowsfromoperatingactivities | 595,769,191.13 | 640,975,427.15 | |
| 2.Cashflowsfrominvestingactivities | |||
| Cashreceivedfromdisposalofinvestments | |||
| Cashreceivedfromreturnoninvestments | 184,898,383.95 | 137,000,000.00 | |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 87,181,100.00 | ||
| Netcashreceivedfromdisposalofsubsidiaryandotheroperatingunits | |||
| Othercashreceivedrelatingtoinvestingactivities | |||
| Subtotalofcashinflowsfrominvestingactivities | 272,079,483.95 | 137,000,000.00 | |
| Cashpaidforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 972,611,679.66 | 508,204,963.64 | |
| Cashpaidforacquisitionofinvestments | 90,600,000.00 | ||
| Netcashpaidforacquisitionofsubsidiaryandotheroperatingunit | |||
| Othercashpaidrelatingtoinvestingactivities | |||
| Subtotalofcashoutflowspaidforinvestingactivities | 1,063,211,679.66 | 508,204,963.64 | |
| Netcashflowsfrominvestingactivities | -791,132,195.71 | -371,204,963.64 | |
| 3.Cashflowsfromfinancingactivities | |||
| Proceedsfrominvestment | |||
| Cashreceivedfromborrowings | 1,251,997,823.71 | 1,095,000,000.00 | |
| Othercashreceivedrelatingtofinancingactivities | 1,815,330,484.81 | 1,841,743,458.53 | |
| Subtotalofcashinflowsfromfinancingactivities | 3,067,328,308.52 | 2,936,743,458.53 | |
| Cashrepaymentsofborrowings | 703,625,752.00 | 1,657,310,516.00 | |
| Cashpaymentsfordistributionofdividends,profitorinterest | 285,877,429.49 | 213,951,632.57 | |
| Othercashpaymentsrelatingtofinancingactivities | 1,961,851,891.13 | 1,677,434,508.77 | |
| Subtotalofcashoutflowsfromfinancingactivities | 2,951,355,072.62 | 3,548,696,657.34 | |
| Netcashflowsfromfinancingactivities | 115,973,235.90 | -611,953,198.81 | |
| 4.Effectofforeignexchangeratechangesoncashandcashequivalents | 12,043,045.91 | 22,844,423.74 | |
| 5.Netincreaseincashandcashequivalents | -67,346,722.77 | -319,338,311.56 | |
| Add:Cashandcashequivalentsatthebeginningoftheperiod | 1,064,914,001.36 | 1,074,502,887.78 | |
| 6.Endingbalanceofcashandcashequivalents | 997,567,278.59 | 755,164,576.22 |
Thenotestothefinancialstatementsattachedformpartofthesefinancialstatements.LegalRepresentative:ChiefFinancialOfficer:ChiefAccountant:
FinancialStatementsPage9
BENGANGSTEELPLATESCO.,LTD.CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY
FortheperiodJan.-Jun.2025(ExpressedinRenminbiunlessotherwiseindicated)
| Items | Currentperiod | |||||||||||||
| Owner'sequityattributabletoparentcompany | Non-controllinginterest | Totalofowner'sequity | ||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplusreserves | Generalriskreserve | Undistributedprofit | Subtotal | |||||
| Preferenceshares | Perpetualbond | Others | ||||||||||||
| 1.Endingbalanceoflastyear | 4,108,228,157.00 | 947,850,195.03 | 13,225,632,166.95 | -93,407,196.62 | 809,649.65 | 1,195,116,522.37 | -7,497,011,632.90 | 11,887,217,861.48 | 611,915,458.68 | 12,499,133,320.16 | ||||
| Add:Changeofaccountingpolicies | ||||||||||||||
| Correctionoferrorsforlastperiod | ||||||||||||||
| Businessconsolidationundercommoncontrol | ||||||||||||||
| Others | ||||||||||||||
| 2.Beginningbalanceofcurrentyear | 4,108,228,157.00 | 947,850,195.03 | 13,225,632,166.95 | -93,407,196.62 | 809,649.65 | 1,195,116,522.37 | -7,497,011,632.90 | 11,887,217,861.48 | 611,915,458.68 | 12,499,133,320.16 | ||||
| 3.Changesincurrentyear(“-”fordecrease) | 4,048.00 | -3,257.10 | 11,835.26 | 15,368,052.79 | -1,399,277,780.90 | -1,383,897,101.95 | 62,709,204.45 | -1,321,187,897.50 | ||||||
| 1)Totalcomprehensiveincome | -1,399,277,780.90 | -1,399,277,780.90 | 32,622,121.86 | -1,366,655,659.04 | ||||||||||
| 2)Capitalincreaseanddecreasebyshareholders | 4,048.00 | -3,257.10 | 11,835.26 | 12,626.16 | 29,400,000.00 | 29,412,626.16 | ||||||||
| (1)Commonshareinvestedbyshareholders | 29,400,000.00 | 29,400,000.00 | ||||||||||||
| (2)Capitalinputbytheholderofotherequityinstruments | 4,048.00 | -3,257.10 | 11,835.26 | 12,626.16 | 12,626.16 | |||||||||
| (3)Share-basedpaymentattributabletoowners'equity | ||||||||||||||
| (4)Others | ||||||||||||||
| 3)Profitdistribution | ||||||||||||||
| (1)Appropriationtosurplusreserves | ||||||||||||||
| (2)Appropriationtogeneralriskreserve | ||||||||||||||
| (3)Profitdistributiontoshareholders | ||||||||||||||
| (4)Others | ||||||||||||||
| 4)Transferswithinshareholders'equity | ||||||||||||||
| (1)Capitalreservestransferredintopaid-incapital(orstock) | ||||||||||||||
| (2)Surplusreservestransferredintopaid-incapital(orstock) | ||||||||||||||
| (3)Surplusreservestorecoverloss | ||||||||||||||
| (4)NetchangesofdefinedcontributionplanstransferredintoRetainedEarnings | ||||||||||||||
| (5)OthercomprehensiveincometransferredintoRetainedEarnings | ||||||||||||||
| (6)Others | ||||||||||||||
| 5)Specialreserves | 15,368,052.79 | 15,368,052.79 | 687,082.59 | 16,055,135.38 | ||||||||||
| (1)Provisionofspecialreserves | 32,080,601.70 | 32,080,601.70 | 2,253,924.06 | 34,334,525.76 | ||||||||||
| (2)Useofspecialreserves | 16,712,548.91 | 16,712,548.91 | 1,566,841.47 | 18,279,390.38 | ||||||||||
| 6)Others | ||||||||||||||
| 4.Endingbalanceofcurrentyear | 4,108,232,205.00 | 947,846,937.93 | 13,225,644,002.21 | -93,407,196.62 | 16,177,702.44 | 1,195,116,522.37 | -8,896,289,413.80 | 10,503,320,759.53 | 674,624,663.13 | 11,177,945,422.66 | ||||
ThenotestothefinancialstatementsattachedformpartofthesefinancialstatementsLegalRepresentative:ChiefFinancialOfficer:ChiefAccountant:
FinancialStatementsPage10
BENGANGSTEELPLATESCO.,LTD.CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY(Continued)
FortheperiodJan.-Jun.2025(ExpressedinRenminbiunlessotherwiseindicated)
| Items | Previousperiod | |||||||||||||
| Owner'sequityattributabletoparentcompany | Non-controllinginterest | Totalofowner'sequity | ||||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplusreserves | Generalriskreserve | Undistributedprofit | Subtotal | |||||
| Preferenceshares | Perpetualbond | Others | ||||||||||||
| 1.Endingbalanceoflastyear | 4,108,219,302.00 | 947,858,134.16 | 13,422,225,870.92 | -50,371,341.88 | 163,055.04 | 1,195,116,522.37 | -2,414,685,928.92 | 17,208,525,613.69 | 589,070,286.60 | 17,797,595,900.29 | ||||
| Add:Changeofaccountingpolicies | ||||||||||||||
| Correctionoferrorsforlastperiod | ||||||||||||||
| Businessconsolidationundercommoncontrol | ||||||||||||||
| Others | ||||||||||||||
| 2.Beginningbalanceofcurrentyear | 4,108,219,302.00 | 947,858,134.16 | 13,422,225,870.92 | -50,371,341.88 | 163,055.04 | 1,195,116,522.37 | -2,414,685,928.92 | 17,208,525,613.69 | 589,070,286.60 | 17,797,595,900.29 | ||||
| 3.Changesincurrentyear(“-”fordecrease) | 8,855.00 | -7,939.13 | -196,593,703.97 | -43,035,854.74 | 646,594.61 | -5,082,325,703.98 | -5,321,307,752.21 | 22,845,172.08 | -5,298,462,580.13 | |||||
| 1)Totalcomprehensiveincome | -43,035,854.74 | -5,037,271,398.28 | -5,080,307,253.02 | 77,153,981.02 | -5,003,153,272.00 | |||||||||
| 2)Capitalincreaseanddecreasebyshareholders | 8,855.00 | -7,939.13 | -196,593,703.97 | -196,592,788.10 | -196,592,788.10 | |||||||||
| (1)Commonshareinvestedbyshareholders | ||||||||||||||
| (2)Capitalinputbytheholderofotherequityinstruments | 8,855.00 | -7,939.13 | 25,840.89 | 26,756.76 | 26,756.76 | |||||||||
| (3)Share-basedpaymentattributabletoowners'equity | ||||||||||||||
| (4)Others | -196,619,544.86 | -196,619,544.86 | -196,619,544.86 | |||||||||||
| 3)Profitdistribution | -45,054,305.70 | -45,054,305.70 | -54,632,794.65 | -99,687,100.35 | ||||||||||
| (1)Appropriationtosurplusreserves | ||||||||||||||
| (2)Appropriationtogeneralriskreserve | ||||||||||||||
| (3)Profitdistributiontoshareholders | -45,054,305.70 | -45,054,305.70 | -54,632,794.65 | -99,687,100.35 | ||||||||||
| (4)Others | ||||||||||||||
| 4)Transferswithinshareholders'equity | ||||||||||||||
| (1)Capitalreservestransferredintopaid-incapital(orstock) | ||||||||||||||
| (2)Surplusreservestransferredintopaid-incapital(orstock) | ||||||||||||||
| (3)Surplusreservestorecoverloss | ||||||||||||||
| (4)NetchangesofdefinedcontributionplanstransferredintoRetainedEarnings | ||||||||||||||
| (5)OthercomprehensiveincometransferredintoRetainedEarnings | ||||||||||||||
| (6)Others | ||||||||||||||
| 5)Specialreserves | 646,594.61 | 646,594.61 | 323,985.71 | 970,580.32 | ||||||||||
| (1)Provisionofspecialreserves | 72,180,947.90 | 72,180,947.90 | 5,182,353.19 | 77,363,301.09 | ||||||||||
| (2)Useofspecialreserves | 71,534,353.29 | 71,534,353.29 | 4,858,367.48 | 76,392,720.77 | ||||||||||
| 6)Others | ||||||||||||||
| 4.Endingbalanceofcurrentyear | 4,108,228,157.00 | 947,850,195.03 | 13,225,632,166.95 | -93,407,196.62 | 809,649.65 | 1,195,116,522.37 | -7,497,011,632.90 | 11,887,217,861.48 | 611,915,458.68 | 12,499,133,320.16 | ||||
ThenotestothefinancialstatementsattachedformpartofthesefinancialstatementsLegalRepresentative:ChiefFinancialOfficer:ChiefAccountant:
FinancialStatementsPage11
BENGANGSTEELPLATESCO.,LTD.STATEMENTOFCHANGESINEQUITY
FortheperiodJan.-Jun.2025(ExpressedinRenminbiunlessotherwiseindicated)
| Items | Currentperiod | ||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplusreserves | Undistributedprofits | Totalshareholder’sequity | |||
| Preferenceshares | Perpetualbond | Others | |||||||||
| 1.Endingbalanceoflastyear | 4,108,228,157.00 | 947,850,195.03 | 12,825,142,354.02 | -93,407,196.62 | 9,276.81 | 1,195,116,522.37 | -8,088,697,453.94 | 10,894,241,854.67 | |||
| Add:Changeofaccountingpolicies | |||||||||||
| Correctionoferrorsforlastperiod | |||||||||||
| Others | |||||||||||
| 2.Beginningbalanceofcurrentyear | 4,108,228,157.00 | 947,850,195.03 | 12,825,142,354.02 | -93,407,196.62 | 9,276.81 | 1,195,116,522.37 | -8,088,697,453.94 | 10,894,241,854.67 | |||
| 3.Changesincurrentyear(“-”fordecrease) | 4,048.00 | -3,257.10 | 11,835.26 | 13,263,849.83 | -1,540,142,881.67 | -1,526,866,405.68 | |||||
| 1)Totalcomprehensiveincome | -1,540,142,881.67 | -1,540,142,881.67 | |||||||||
| 2)Capitalincreaseanddecreasebyshareholders | 4,048.00 | -3,257.10 | 11,835.26 | 12,626.16 | |||||||
| (1)Commonshareinvestedbyshareholders | |||||||||||
| (2)Capitalinputbytheholderofotherequityinstruments | 4,048.00 | -3,257.10 | 11,835.26 | 12,626.16 | |||||||
| (3)Share-basedpaymentattributabletoshareholders'equity | |||||||||||
| (4)Others | |||||||||||
| 3)Profitdistribution | |||||||||||
| (1)Appropriationofsurplusreserves | |||||||||||
| (2)Profitdistributiontoshareholders | |||||||||||
| (3)Others | |||||||||||
| 4)Transferswithinshareholders'equity | |||||||||||
| (1)Capitalreservestransferredintopaid-incapital(orstock) | |||||||||||
| (2)Surplusreservestransferredintopaid-incapital(orstock) | |||||||||||
| (3)Surplusreservestorecoverloss | |||||||||||
| (4)NetchangesofdefinedcontributionplanstransferredintoRetainedEarnings | |||||||||||
| (5)Othercomprehensiveincometransferredintoretainedearnings | |||||||||||
| (6)Others | |||||||||||
| 5)Specialreserves | 13,263,849.83 | 13,263,849.83 | |||||||||
| (1)Provisionofspecialreserves | 25,328,400.00 | 25,328,400.00 | |||||||||
| (2)Useofspecialreserves | 12,064,550.17 | 12,064,550.17 | |||||||||
| 6)Others | |||||||||||
| 4.Endingbalanceofcurrentyear | 4,108,232,205.00 | 947,846,937.93 | 12,825,154,189.28 | -93,407,196.62 | 13,273,126.64 | 1,195,116,522.37 | -9,628,840,335.61 | 9,367,375,448.99 | |||
ThenotestothefinancialstatementsattachedformpartofthesefinancialstatementsLegalRepresentative:ChiefFinancialOfficer:ChiefAccountant:
FinancialStatementsPage12
BENGANGSTEELPLATESCO.,LTD.STATEMENTOFCHANGESINEQUITY(Continued)
FortheperiodJan.-Jun.2025(ExpressedinRenminbiunlessotherwiseindicated)
| Items | Previousperiod | ||||||||||
| Sharecapital | Otherequityinstruments | Capitalreserves | Less:Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplusreserves | Undistributedprofits | Totalshareholder’sequity | |||
| Preferenceshares | Perpetualbond | Others | |||||||||
| 1.Endingbalanceoflastyear | 4,108,219,302.00 | 947,858,134.16 | 12,852,074,188.80 | -50,371,341.88 | 3,681.16 | 1,195,116,522.37 | -2,900,010,737.27 | 16,152,889,749.34 | |||
| Add:Changeofaccountingpolicies | |||||||||||
| Correctionoferrorsforlastperiod | |||||||||||
| Others | |||||||||||
| 2.Beginningbalanceofcurrentyear | 4,108,219,302.00 | 947,858,134.16 | 12,852,074,188.80 | -50,371,341.88 | 3,681.16 | 1,195,116,522.37 | -2,900,010,737.27 | 16,152,889,749.34 | |||
| 3.Changesincurrentyear(“-”fordecrease) | 8,855.00 | -7,939.13 | -26,931,834.78 | -43,035,854.74 | 5,595.65 | -5,188,686,716.67 | -5,258,647,894.67 | ||||
| 1)Totalcomprehensiveincome | -43,035,854.74 | -5,188,686,716.67 | -5,231,722,571.41 | ||||||||
| 2)Capitalincreaseanddecreasebyshareholders | 8,855.00 | -7,939.13 | -26,931,834.78 | -26,930,918.91 | |||||||
| (1)Commonshareinvestedbyshareholders | |||||||||||
| (2)Capitalinputbytheholderofotherequityinstruments | 8,855.00 | -7,939.13 | 25,840.89 | 26,756.76 | |||||||
| (3)Share-basedpaymentattributabletoshareholders'equity | |||||||||||
| (4)Others | -26,957,675.67 | -26,957,675.67 | |||||||||
| 3)Profitdistribution | |||||||||||
| (1)Appropriationofsurplusreserves | |||||||||||
| (2)Profitdistributiontoshareholders | |||||||||||
| (3)Others | |||||||||||
| 4)Transferswithinshareholders'equity | |||||||||||
| (1)Capitalreservestransferredintopaid-incapital(orstock) | |||||||||||
| (2)Surplusreservestransferredintopaid-incapital(orstock) | |||||||||||
| (3)Surplusreservestorecoverloss | |||||||||||
| (4)NetchangesofdefinedcontributionplanstransferredintoRetainedEarnings | |||||||||||
| (5)Othercomprehensiveincometransferredintoretainedearnings | |||||||||||
| (6)Others | |||||||||||
| 5)Specialreserves | 5,595.65 | 5,595.65 | |||||||||
| (1)Provisionofspecialreserves | 57,316,980.35 | 57,316,980.35 | |||||||||
| (2)Useofspecialreserves | 57,311,384.70 | 57,311,384.70 | |||||||||
| 6)Others | |||||||||||
| 4.Endingbalanceofcurrentyear | 4,108,228,157.00 | 947,850,195.03 | 12,825,142,354.02 | -93,407,196.62 | 9,276.81 | 1,195,116,522.37 | -8,088,697,453.94 | 10,894,241,854.67 | |||
ThenotestothefinancialstatementsattachedformpartofthesefinancialstatementsLegalRepresentative:ChiefFinancialOfficer:ChiefAccountant:
NotestothefinancialstatementsPage1
BengangSteelPlatesCo.,Ltd.
NotestothefinancialstatementsFortheperiodfromJan.toJun.2025(ExpressedinRenminbiunlessotherwiseindicated)
1.BasicInformationoftheCompany
BengangSteelPlatesCo.,Ltd.(hereinafterreferredtoas“BengangSteelPlates”or“theCompany”),asapprovedinLiao-Zheng(1997)No.57byLiaoningPeople’sGovernmenton27March1997,wasincorporatedasajointstocklimitedcompanythroughpublicshareofferofdomesticlistedforeigncurrencydenominatedshares(Bshares)inthePeople’sRepublicofChina(the“PRC”)on27June1997byBenxiSteelandIron(Group)Co.,Ltd.(“BengangGroup”),throughreorganizationofoperations,assetsandliabilitiesofitsplants,namely,SteelSmeltingPlant,PrimaryRollingPlantandContinuousHotRollingPlant.AsapprovedbyChinaSecuritiesRegulatoryCommission(hereinafterreferredtoas“theCSRC”),theCompanyissued400,000,000B-sharesatHKD2.38eachinShenzhenStockExchangeon10June1997.On3November1997,theCompanyissuedanother120,000,000A-shares(RenminbicommonShares)atRMB5.40each,andlistedinShenzhenStockExchangesince15January1998.Thecapitalsharesweretotaledto1,136,000,000shares.On14March2006,accordingtotheresolutionsoftheShareholders’Meetingregardingshareequityrelocation,theShareEquityRelocationScheme,ResponsetoBengangSteelPlateCo.,Ltd.aboutShareEquityRelocationissuedbyLiaoningProvincialGovernmentState-ownedAssetAdministrativeCommittee,BengangGroup–theonlyholderofnon-negotiablestate-ownedlegalpersonsharespaidtheconsiderationtothecurrentshareholderstoobtainthecurrentoptionforthe40,800,000sharesofthetotal616,000,000sharesitwasholding.ShareholdingpositionshavebeenregisteredwithChinaSecuritiesDepository&ClearingCorporationLtd.ShenzhenOffice.However,thetotalamountofcapitalsharesofBengangSteelPlatesCo.,Ltd.wasnotchangedthroughtheshareequityrelocationaction.Accordingtotheapprovaldocument“Zheng-Jian-Gong-Si-Zi[2006]No.126”byChinaSecuritiesRegulatoryCommissionon30June2006,theCompanywasapprovedtoplace2billionRenminbicommonsharesparticularlytoBengangGroupandtheproceedswouldbeusedtopurchasetherelatedassetsoftheGroup.Onthesameday,BengangGroupreceivedcircularZheng-Jian-Gong-Si-Zi[2006]No.127issuedbyChinaSecuritiesRegulatoryCommittee,andwereexemptedfortheliabilityofundertakingthepurchaseoffer.Theliabilitywascausedbysubscribingofthe2billionnewsharesandthetotalshareholdingwas
NotestothefinancialstatementsPage2
thusincreasedto2.5752billionshares(accountingfor82.12%ofthetotalcapitalsharesoftheCompany).On28August2006,asapprovedbyChinaSecuritiesDepository&ClearingCorporationLtd.ShenzhenOffice,theregistrationandconditionalplacingproceduresofthe2billionnewshareswerecompleted.On28September2006,theprivatelyplacedshareswereapprovedbyShenzhenStockExchangetobeplacedinthestockmarket.TheplacingpricewasRMB4.6733pershare.ApprovedbytheChinaSecuritiesRegulatoryCommission[2017]No.1476,BengangSteelPlateCo.,Ltd.privatelyplacednomorethan739,371,534RMBordinaryshares(Ashares)tonomorethan10issuers.Thenon-publicofferingwascompletedon9February2018,and739,371,532shareswereactuallyissued.TheplacingpricewasRMB5.41pershare.OnAugust20,2021,theState-ownedAssetsSupervisionandAdministrationCommissionofthePeople'sGovernmentofLiaoningProvince(hereinafterreferredtoasLiaoningSASAC)andAnshanIronandSteelGroupCo.,Ltd.(hereinafterreferredtoasAnsteelGroup)signedthe"AgreementontheGratuitousTransferofState-ownedEquityinBengangGroupCo.,Ltd.betweentheState-ownedAssetsSupervisionandAdministrationCommissionofthePeople'sGovernmentofLiaoningProvinceandAnsteelGroupCo.,Ltd."Accordingtotheagreement,LiaoningSASACwilltransferits51%equityinBengangGroupCo.,Ltd.(hereinafterreferredtoasBengangGroup)toAnshanIronandSteelGroupforfree.Afterthecompletionofthisfreetransfer,AnsteelGroupbecamethecontrollingshareholderofBengangGroup,andAnsteelGroupindirectlyhold81.07%ofthetotalsharecapitalofBengangSteelPlates.Asat30June2025,thecapitalsharesweretotaledto4,108,221,073.00shares.TheCompany’suniformsocialcreditcode:91210000242690243E.TheCompany’sregisteredaddress:16thRenminRoad,PingshanDistrict,Benxi,LiaoningProvince.TheCompany’slegalrepresentative:HuangZuowei.TheparentcompanyofBengangSteelPlatesCo.,LtdisBenxiSteelandIron(Group)Co.,Ltd.andtheactualcontrollerisAnsteelGroupCo.,Ltd..BengangSteelPlatesCo.,Ltd.belongstoferrousmetalsmeltingandrollingprocessingindustryandismainlyinvolvedinproducingandtradingofferrousmetalproducts.ThefinancialstatementshavebeenapprovedforreportingbytheboardofdirectorsoftheCompanyon27August2025.
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2.Basisofpreparation
(1)BasisofpreparationThefinancialstatementshavebeenpreparedinaccordancewith“AccountingStandardsforBusinessEnterprises–BasicStandard”andrelevantspecificstandards,applicationmaterials,interpretations(togetherhereinafterreferredtoas“AccountingStandardsforBusinessEnterprises”)issuedbytheMinistryofFinance,and“InformationDisclosureRulesforCompaniesofsecuritiesforpublicissuanceNo.15–GeneralRegulationsforFinancialStatements”issuedbytheChinaSecuritiesRegulatoryCommission.
(2)Goingconcern
Thefinancialstatementshavebeenpreparedonagoingconcernbasis.
3.SignificantaccountingpoliciesandaccountingestimatesThefollowingdisclosedcontentcoversthespecificaccountingpoliciesandaccountingestimatesthatareadoptedbytheCompanybasedontheactualproductionandoperationcharacteristics.PleaseseeNote(10)Financialinstruments,(11)Inventory,(14)Fixedassets,
(17)Intangibleassets,(23)Revenueunder“3.Significantaccountingpoliciesand
accountingestimates”fordetails.
(1)StatementofcompliancewithChinaAccountingStandardsforBusinessEnterprises
Thefinancialstatementspresenttrulyandcompletelytheconsolidatedandparentcompany’sfinancialpositionasofJune30,2025,andtheconsolidatedandparentcompany’soperationresultsandcashflowsfromJanuarytoJune2025,inaccordancewithChinaAccountingStandardsforBusinessEnterprisespromulgatedbytheMinistryofFinance.
(2)Accountingyear
TheAccountingyearisfrom1Januaryto31December.
(3)Operatingperiod
Theoperatingperiodistwelvemonths.
(4)FunctionalcurrencyTheCompany’sfunctionalcurrencyisRMB.
(5)TheaccountingtreatmentforBusinesscombinationunder/notundercommoncontrolBusinesscombinationundercommoncontrol
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TheassetsandliabilitiesthattheCompanyacquiredinabusinesscombinationshallbemeasuredonthebasisoftheircarryingamountofacquiree’sassets,liabilities(aswellasthegoodwillarisingfromthebusinesscombination)intheconsolidatedfinancialstatementoftheultimatecontrolleronthecombiningdate.AsforthebalancebetweenthecarryingamountofthenetassetsobtainedbytheCompanyandthecarryingamountoftheconsiderationpaidbyit(orthetotalparvalueofthesharesissued),capitalreserveneedstobeadjusted.Ifthecapitalreserveisnotsufficient,anyexcessshallbeadjustedagainstretainedearnings.BusinesscombinationnotundercommoncontrolTheCompanyshall,ontheacquisitiondate,measuretheassetsgivenandliabilitiesincurredorassumedbyanenterpriseforabusinesscombinationinlightoftheirfairvalues,andshallrecordthebalancesbetweenthemandtheircarryingamountsintotheprofitsandlossesatthecurrentperiod.TheCompanyshallrecognizethepositivebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeasgoodwill.TheCompanyshalltreatthenegativebalancebetweenthecombinationcostsandthefairvalueoftheidentifiablenetassetsitobtainsfromtheacquireeintotheprofitsandlossesofthecurrentperiod.Theintermediarycostsandrelevantfeesforthebusinesscombinationpaidbytheacquirer,includingtheexpensesforaudit,assessmentandlegalservices,shallberecordedintotheprofitsandlossesatthecurrentperiod.Thetransactionexpensesfortheissuanceofequitysecuritiesforthebusinesscombinationshallberecordedintotheinitialrecognitionamountofequitysecurities.Allidentifiableassets,liabilitiesandcontingentliabilitiesoftheacquireethatmeettherecognitioncriteriaacquiredinthemergeraremeasuredatfairvalueontheacquisitiondate.Directlyrelatedexpensesincurredforabusinesscombinationarerecordedinthecurrentperiod'sprofitorlosswhenincurred;transactioncostsofequitysecuritiesordebtsecuritiesissuedforabusinesscombinationareincludedintheinitialrecognitionamountoftheequitysecuritiesordebtsecurities.
(6)ScopeofconsolidationandConsolidationofFinancialStatements
1.ScopeofconsolidationThescopeofconsolidationofconsolidatedfinancialstatementsisdeterminedbasedoncontrolandthescopeofconsolidationincludestheCompanyandallitssubsidiaries.ControlmeansthattheCompanyhaspowerovertheinvestee,enjoysvariablereturnsthrough
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participationintherelevantactivitiesoftheinvestee,andhastheabilitytousethepowerovertheinvesteetoinfluencetheamountofitsreturns.
2.ProcedureofconsolidationWhenpreparingconsolidatedfinancialstatements,theparentshallconsidertheentiregroupasanaccountingentity,adoptuniformaccountingpoliciestopreparetheconsolidatedfinancialstatementswhichreflecttheoverallfinancialposition,operatingresultsandcashflowsofthegroup.TheimpactofinternaltransactionsbetweentheCompanyanditssubsidiariesandbetweensubsidiariesshallbeoffset.Ifinternaltransactionsindicatethatrelevantassetshavesufferedimpairmentlosses,suchlossesshallbefullyrecognized.TheaccountingpolicyandaccountingperiodofthesubsidiarieswithintheconsolidationscopeshallbeinaccordancewiththoseoftheCompany.Ifnot,itisnecessarytomaketheadjustmentaccordingtotheCompany’saccountingpoliciesandaccountingperiodwhenpreparingtheconsolidatedfinancialstatements.Theowners’interests,profitorloss,andcomprehensiveincomeofthesubsidiaryattributabletothenon-controllingshareholdersshallbepresentedseparatelyintheshareholders’equityoftheconsolidatedbalancesheetandundertheitemofnetprofitoftheconsolidatedstatementofcomprehensiveincomeandundertheitemoftotalcomprehensiveincome.Wherelossesassumedbytheminorityexceedtheminority’sinterestsinthebeginningequityofasubsidiary,theexcessshallbechargedagainsttheminority’sinterests.
(1)IncreasingnewsubsidiariesandbusinessesIftheCompanyhasanewsubsidiaryduetobusinesscombinationundercommoncontrolduringthereportingperiod,itshalladjustthebeginningbalanceintheconsolidatedstatementoffinancialpositionwhenpreparingconsolidatedstatementoffinancialposition.Therevenue,expensesandprofitsofthesubsidiariesfromtheacquisitiondatetotheendofthereportingperiodareincludedintheCompany’sconsolidatedstatementofcomprehensiveincome.ThecashflowofthesubsidiariesfromtheacquisitiondatetotheendofthereportingperiodisincludedintheCompany’sconsolidatedstatementofcashflows.AndmeanwhiletheCompanyshalladjusttherelevantitemsofthecomparativefinancialstatementsasifthereportingentityforthepurposeofconsolidationhasbeeninexistencesincethedatetheultimatecontrollingpartyfirstobtainedcontrol.WhentheCompanybecomescapableofexercisingcontroloveraninvesteeundercommoncontrolduetoadditionalinvestmentorotherreasons,adjustmentshallbemadeasifthe
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reportingentityafterthecombinationhasbeeninexistencesincethedatetheultimatecontrollingpartyfirstobtainedcontrol.Theinvestmentincomerecognizedbetweendateofpreviouslyobtainingequityinvestmentandthedatetheacquireeandacquirerareundercommoncontrol,whichislater,andthecombiningdate,othercomprehensiveincomeandotherchangesofnetassetsarisingfromtheequityinvestmentpreviouslyheldbeforeobtainingthecontroltheacquireeshallbeadjustedagainstthepriorretainedearningsofthecomparativefinancialstatementsandthecurrentprofitorlossrespectively.Ifitisnotundercommoncontrol,itwillbeincludedintheconsolidatedfinancialstatementsfromthedateofacquisitionbasedonthefairvalueofeachidentifiableasset,liabilityandcontingentliabilitydeterminedonthedateofacquisition.WhentheCompanybecomescapableofexercisingcontroloveraninvesteenotundercommoncontrolduetoadditionalinvestmentorotherreasons,theacquirershallremeasureitspreviouslyheldequityinterestintheacquireetoitsfairvalueattheacquisitiondate.Thedifferencebetweenthefairvalueandthecarryingamountshallberecognizedasinvestmentincomefortheperiodwhentheacquisitiontakesplace.Whenthepreviouslyheldequityinvestmentisaccountedforundertheequitymethod,anyothercomprehensiveincomepreviouslyrecognizedinrelationtotheacquiree’sequitychangesshallbetransferredtoprofitorlossforthecurrentperiodwhentheacquisitiontakesplace.
(2)Disposingsubsidiariesorbusinesses
1.GeneraltreatmentWhentheCompanylosescontroloveraninvesteeduetopartialdisposalorotherreasons,theacquirershallre-measuretheremainingequityinterestsintheacquireetoitsfairvalueattheacquisitiondate.Thedifference,betweensumsofconsiderationreceivedfordisposalequitysharesandfairvalueoftheremainingshares,andsumsofshareofnetassetsofthesubsidiarycalculatedcontinuouslyfromtheacquisitiondateorthecombinationdatebasedonthepreviousshareholdingproportionandgoodwill,shallberecognizedasinvestmentincomefortheperiodwhentheCompanylosescontroloveracquiree.Whenthepreviouslyheldequityinvestmentisaccountedforundertheequitymethod,anyothercomprehensiveincomepreviouslyrecognizedinrelationtotheacquiree’sequitychanges,andotherequitychangesratherthanchangesfromnetprofit,othercomprehensiveincomeandprofitdistribution,shallbetransferredtoinvestmentincomeforthecurrentperiodwhentheCompanylosescontroloveracquiree.
2.Disposingsubsidiariesbymultipletransactions
WheretheCompanylosescontrolofasubsidiaryinmultipletransactionsinwhichit
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disposesofitssubsidiaryinstages,indeterminingwhethertoaccountforthemultipletransactionsasasingletransaction,theCompanyshallconsiderallofthetermsandconditionsofthetransactionsandtheireconomiceffects.OneormoreofthefollowingmayindicatethattheCompanyshallaccountforthemultiplearrangementsasasingletransaction:
(a)Arrangementsareenteredintoatthesametimeorincontemplationofeachother;(b)Arrangementsworktogethertoachieveanoverallcommercialeffect;(c)Theoccurrenceofonearrangementisdependentontheoccurrenceofatleastoneotherarrangement;and(d)Onearrangementconsideredonitsownisnoteconomicallyjustified,butitiseconomicallyjustifiedwhenconsideredtogetherwithotherarrangements.Ifeachofthemultipletransactionsformspartofabundledtransactionwhicheventuallyresultsinlossofcontrolofthesubsidiary,thesemultipletransactionsshallbeaccountedforasasingletransaction.Intheconsolidatedfinancialstatements,thedifferencebetweentheconsiderationreceivedandthecorrespondingproportionofthesubsidiary’snetassetsineachtransactionpriortothelossofcontrolshallberecognizedinothercomprehensiveincomeandtransferredtotheprofitorlosswhentheCompanyeventuallylosescontrolofthesubsidiary.Ifeachofthemultipletransactionswhicheventuallyresultsinlossofcontrolofthesubsidiarydonotformpartofabundledtransaction,applythetreatmentofdisposingpartiallong-termequityinvestmentsinasubsidiarywithoutlossofcontrolpriortothelossofcontrol.Afterthelossofcontrol,applythetreatmentofdisposingthesubsidiaryincommoncases.
(3)Acquiringthesubsidiaries’equityinterestheldbynon-controllingshareholdersWheretheCompanyhasacquiredasubsidiary’sequityinterestheldbynon-controllingshareholders,thedifferencebetweentheincreaseinthecostoflong-terminvestmentsasaresultofacquisitionofnon-controllinginterestsandtheshareofnetassetsofthesubsidiarycalculatedcontinuouslyfromtheacquisitiondateorthecombinationdatebasedonthenewshareholdingproportionshallbeadjustedtothecapitalreserve(capitalpremiumorsharepremium)intheconsolidatedfinancialstatements.Ifthebalanceofthecapitalreserveisnotsufficient,anyexcessshallbeadjustedagainstretainedearnings.
(4)DisposingportionofequityinvestmentsinsubsidiarieswithoutlosingcontrolWhentheCompanydisposesofaportionofthelong-termequityinvestmentsinasubsidiarywithoutlossofcontrol,thedifferencebetweentheamountoftheconsideration
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receivedandthecorrespondingportionofthenestassetsofthesubsidiarycalculatedcontinuouslyfromtheacquisitiondateorthecombinationdaterelatedtothedisposalofthelong-termequityinvestmentsshallbeadjustedtothecapitalreserve(capitalpremiumorsharepremium)intheconsolidatedfinancialstatements.Ifthebalanceofthecapitalreserveisnotsufficient,anyexcessshallbeadjustedagainstretainedearnings.
(7)Classificationofjointventurearrangementsandaccountingtreatment
Jointventurearrangementsaredividedintojointoperationsandjointventures.WhentheCompanyisajointventurepartyofajointventurearrangementandhavetheassetsrelatedtothearrangementandassumestheliabilitiesrelatedtothearrangement,itisajointoperation.TheCompanyconfirmsthefollowingitemsrelatedtotheshareofinterestinthejointoperationandperformsaccountingtreatmentinaccordancewiththerelevantenterpriseaccountingstandards:
a.Confirmtheassetsheldbythecompanyseparately,andconfirmtheassetsheldjointlybytheCompany'sshare;b.RecognizetheliabilitiesassumedbytheCompanyseparatelyandtheliabilitiesjointlyassumedbythecompany'sshare;c.RecognizetheincomegeneratedbythesaleoftheCompany’sshareofcommonoperatingoutput;d.RecognizetherevenuegeneratedfromthesaleofjointoperationsbasedontheCompany'sshare;e.ConfirmtheexpensesincurredseparatelyandtheexpensesincurredinthejointoperationaccordingtotheCompany'sshare.TheCompany'sinvestmentinjointventuresisaccountedforusingtheequitymethod.Fordetails,seeNote(13)Long-termequityinvestmentsunder“3.Significantaccountingpoliciesandaccountingestimates”.
(8)Recognitionofcashandcashequivalents
Cashreferstothecashonhandandtheunrestricteddeposit.CashequivalentsareinvestmentsheldbytheCompanythatareshort-term,highlyliquid,readilyconvertibleintoknownamountsofcashandsubjecttoinsignificantriskofchangesinvalue.
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(9)Foreigncurrencytransactionandtranslationofforeigncurrencyfinancialstatements
1.ForeigncurrencytransactionForeigncurrencytransactionsaretranslatedintoRMBatthecurrentrateatthedayoftransactions.Theforeigncurrencymonetaryitemsshallbetranslatedatthespotexchangerateonthebalancesheetdate.Thebalanceofexchangearisingfromthedifferencebetweenthespotexchangerateonthebalancesheetdateandthespotexchangerateatthetimeofinitialrecognitionorpriortothebalancesheetdate,exceptthosearisingfromtheraisingofspecialforeigndebtforthepurchaseorconstructionofcapitalizableassetsthusshallbecapitalizedaccordingtotheborrowingcostscapitalizationprinciple,shallberecordedintotheprofitsandlossesatthecurrentperiod.
2.TranslationofforeigncurrencyfinancialstatementsTheassetandliabilityitemsinthestatementoffinancialpositionshallbetranslatedataspotexchangerateonthebalancesheetdate.Amongtheowner'sequityitems,excepttheonesas"undistributedprofits",othersshallbetranslatedatthespotexchangerateatthetimewhentheyareincurred.Theincomeandexpenseitemsintheincomestatementshallbetranslatedusinganexchangeratethatisdeterminedinasystematicandreasonablemannerandapproximatesthespotexchangerateonthetransactiondate.Whendisposinganoverseasbusiness,theCompanyshallshiftthebalance,whichispresentedundertheitemsoftheowner'sequitiesinthestatementoffinancialpositionandarisesfromthetranslationofforeigncurrencyfinancialstatementsrelatedtothisoverseabusiness,intothedisposalprofitsandlossesofthecurrentperiod.
(10)Financialinstruments
TheCompanyrecognizesafinancialasset,financialliabilityorequityinstrumentwhenitbecomesapartytoafinancialinstrumentcontract.
1.ClassificationoffinancialinstrumentsTheCompanyshallclassifyfinancialassetsonthebasisofboththeentity’sbusinessmodelformanagingthefinancialassetsandthecontractualcashflowcharacteristicsofthefinancial
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assetas:financialassetsmeasuredatamortisedcost,financialassetsmeasuredatfairvaluethroughothercomprehensiveincomeandfinancialassetsmeasuredatfairvaluethroughprofitorlossatinitialmeasurement.Afinancialassetwhichisnotdesignatedasafinancialassetmeasuredatfairvaluethroughprofitorlossshallbemeasuredatamortisedcostifbothofthefollowingconditionsaremet.-Thefinancialassetisheldwithinabusinessmodelwhoseobjectiveistoholdfinancial
assetsinordertocollectcontractualcashflows.-Thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthat
aresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Afinancialassetshallbemeasuredatfairvaluethroughothercomprehensiveincomeifbothofthefollowingconditionsaremet.-Thefinancialassetisheldwithinabusinessmodelwhoseobjectiveisachievedbyboth
collectingcontractualcashflowsandsellingfinancialassets.-Thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthat
aresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.TheCompanymaymakeanelectionatinitialrecognitionfornon-tradingequityinstrumentinvestmentswhetheritisdesignatedasafinancialasset(equityinstrument)thatismeasuredatfairvaluethroughothercomprehensiveincome.Thedesignationismadeonthebasisofasingleinvestment,andtherelatedinvestmentmeetsthedefinitionofanequityinstrumentfromtheissuer'sperspective.Otherfinancialassetsotherthantheseareclassifiedasfinancialassetsmeasuredatfairvaluethroughprofitorloss.Attheinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,financialassetsthatshouldbeclassifiedasmeasuredatamortizedvalueorfinancialassetsmeasuredatfairvaluethroughothercomprehensiveincomecanbedesignatedasfinancialassetsmeasuredatfairvaluethroughprofitorloss.TheCompanyshallclassifyfinancialliabilitiesasfinancialliabilitiesmeasuredatamortisedcostandfinancialliabilitiesmeasuredatfairvaluethroughprofitorlossatinitialmeasurement.
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TheCompanymay,atinitialrecognition,designateafinancialliabilityasmeasuredatfairvaluethroughprofitorlossbecauseeither:
(a)iteliminatesorsignificantlyreducesanaccountingmismatch;(b)agroupoffinancialliabilitiesorfinancialassetsandfinancialliabilitiesismanagedanditsperformanceisevaluatedonafairvaluebasis,inaccordancewithadocumentedriskmanagementorinvestmentstrategy,andinformationaboutthegroupisprovidedinternallyonthatbasistotheentity’skeymanagementpersonnel;(c)thefinancialliabilitycontainsembeddedderivativesthatneedtobeseparated.
2.Recognitionandmeasurementoffinancialinstruments
(1)FinancialassetsmeasuredatamortisedcostFinancialassetsmeasuredatamortizedcostincludenotesreceivables,accountsreceivables,otherreceivables,long-termreceivables,debtinvestments,etc.Atinitialrecognition,theCompanyshallmeasureafinancialassetatitsfairvalueplusorminustransactioncoststhataredirectlyattributabletotheacquisitionorissueofthefinancialasset.TheCompanyshallmeasureaccountreceivablesattheirtransactionpriceiftheaccountreceivablesdonotcontainasignificantfinancingcomponentandaccountsreceivablesthatthecompanyhasdecidednottoconsiderforafinancingcomponentofnomorethanoneyear.Interestscalculatedbyusingtheeffectiveinterestmethodduringtheholdingperiodshallbe.recognizedinprofitorloss.Whenrecoveringordisposingthereceivables,thedifferencebetweenthepriceobtainedandthecarryingvalueshallberecognizedincurrentprofitorloss.
(2)Financialassetsmeasuredatfairvaluethroughothercomprehensiveincome(debt
instruments)Financialassetsmeasuredatfairvaluethroughothercomprehensiveincome(debtinstruments)includereceivablesfinancing,otherdebtinvestments,etc.Atinitialrecognition,theCompanyshallmeasureafinancialassetatitsfairvalueplustransactioncoststhataredirectlyattributabletotheacquisitionorissuanceofthefinancialasset.Thefinancialassets
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aresubsequentlymeasuredatfairvalue.Changesinfairvalueareincludedinothercomprehensiveincomeexceptforinterestcalculatedusingtheeffectiveinterestmethod,impairmentlossesorgainsandexchangegainsandlosses.Whenthefinancialassetsarederecognized,theaccumulatedgainorlosspreviouslyrecognizedinothercomprehensiveincomeistransferredfromothercomprehensiveincomeandrecognizedinprofitorloss.
(3)Financialassetsatfairvaluethroughothercomprehensiveincome(equity
instruments)Financialassetsatfairvaluethroughothercomprehensiveincome(equityinstruments).includeotherequityinstrumentinvestments,etc.Atinitialrecognition,theCompanyshallmeasureafinancialassetatitsfairvalueplustransactioncoststhataredirectlyattributabletotheacquisitionorissueofthefinancialasset.Thefinancialassetsaresubsequentlymeasuredatfairvalue.Changesinfairvalueareincludedinothercomprehensiveincome.Thedividendsobtainedarerecognisedinprofitandloss.Whenthefinancialassetsarederecognized,theaccumulatedgainorlosspreviously.recognisedinothercomprehensiveincomeistransferredfromothercomprehensiveincomeandrecognisedinretainedearnings.
(4)FinancialassetsatfairvaluethroughprofitorlossFinancialassetsatfairvaluethroughprofitorlossincludetransactionalfinancialassets,derivativefinancialassets,othernon-currentfinancialassets,etc.TheCompanyshallmeasurethefinancialassetsatfairvalueatinitialrecognition.Transactioncostsarerecognisedinprofitorloss.Changesinfairvalueareincludedinprofitorloss.
(5)FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludecurrentfinancialliabilities,derivativefinancialliabilities,etc.TheCompanyshallmeasurethefinancialassetsatfairvalueatinitialrecognition.Transactioncostsarerecognizedinprofitorloss.Changesinfairvalueareincludedinprofitorloss.
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Whenthefinancialliabilitiesarederecognized,thedifferencebetweenthefairvalueandthe.initiallyrecordedamountisrecognizedasinvestmentincome,andthegainsandlossesfromchangesinfairvalueareadjusted.
(6)FinancialliabilitiesmeasuredatamortizedcostFinancialliabilitiesmeasuredatamortizedcostincludeshort-termborrowings,notes.payables,accountspayables,otherpayables,long-termborrowings,bondspayables,long-termpayables.Atinitialrecognition,theCompanyshallmeasureafinancialliabilityatitsfairvalueplus.transactioncoststhataredirectlyattributabletotheacquisitionorissueofthefinancialasset.Interestscalculatedbyusingtheeffectiveinterestmethodduringtheholdingperiodshallberecognizedinprofitorloss.Whenthefinancialliabilitiesarederecognized,thedifferencebetweenthepriceobtainedand.thecarryingvalueshallberecognizedinprofitandloss.
3.TerminationofrecognitionoffinancialassetsandfinancialassetstransferWhenoneofthefollowingconditionsismet,thecompanyterminatestherecognitionoffinancialassets.-Terminationofcontractualrightstoreceivecashflowsfromfinancialassets;-Thefinancialassetshavebeentransferred,andalmostalltherisksandrewardsinthe
ownershipofthefinancialassetshavebeentransferredtothetransferee;-Thefinancialassetshavebeentransferred.Althoughthecompanyhasneithertransferred
norretainedalmostalltherisksandrewardsoftheownershipofthefinancialassets,it
hasnotretainedcontrolofthefinancialassets.IftheCompanymodifiesorrenegotiatesacontractwithitscounterpartyandthemodificationconstitutesasubstantialmodification,theoriginalfinancialassetwillbederecognizedandanewfinancialassetwillberecognizedinaccordancewiththemodifiedterms.Ifitretainednearlyalloftherisksandrewardsrelatedtotheownershipofthefinancialasset,itshallnotstoprecognizingthefinancialasset.
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TojudgewhetherthetransferofafinancialassetcansatisfytheconditionsasprescribedintheseStandardsforstoppingtherecognitionofafinancialasset,theCompanyshallfollowtheprincipleofthesubstanceoverform.Transferofanentirefinancialassetcanbedividedintopartialfinancialassetstransferandentirefinancialassettransfer.Ifthetransferofanentirefinancialassetsatisfiestheconditionsforde-recognition,thedifferencebetweentheamountsofthefollowing2itemsshallberecordedintheprofitsandlossesofthecurrentperiod:
(1)Thebookvalueofthetransferredfinancialasset;and
(2)Thesumofconsiderationreceivedfromthetransfer,andtheaccumulativeamountofthechangesofthefairvalueoriginallyrecordedintheowners'equities(intheeventthatthefinancialassetinvolvedinthetransferisafinancialassetAvailable-for-sale).Ifthetransferofpartialfinancialassetsatisfiestheconditionstoderecognize,theentirebookvalueofthetransferredfinancialassetshall,betweentheportionwhoserecognitionhasbeenstoppedandtheportionwhoserecognitionhasnotbeenstopped,beapportionedaccordingtotheirrespectiverelativefairvalue,andthedifferencebetweentheamountsofthefollowing2itemsshallbeincludedintotheprofitsandlossesofthecurrentperiod:
(1)Thebookvalueoftheportionwhoserecognitionhasbeenstopped;and
(2)Thesumofconsiderationoftheportionwhoserecognitionhasbeenstopped,andtheportionoftheaccumulativeamountofthechangesinthefairvalueoriginallyrecordedintheowner'sequitieswhichiscorrespondingtotheportionwhoserecognitionhasbeenstopped(intheeventthatthefinancialassetinvolvedinthetransferisafinancialassetAvailable-for-sale).Ifthetransferoffinancialassetsdoesnotsatisfytheconditionstostoptherecognition,itshallcontinuetoberecognizedasfinancialassetsandtheconsiderationreceivedshallberecognizedasfinancialliabilities.
4.TerminationofrecognitionoffinancialliabilitiesOnlywhentheprevailingobligationsofafinancialliabilityarerelievedinallorinpartmaytherecognitionofthefinancialliabilitybeterminatedinallorpartly.WheretheCompany(debtor)entersintoanagreementwithacreditorsoastosubstitutetheexistingfinancialliabilitiesbywayofanynewfinancialliability,andifthecontractualstipulationregardingthenewfinancialliabilityissubstantiallydifferentfromthatregardingtheexistingfinancial
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liability,itshallterminatetherecognitionoftheexistingfinancialliability,andshallatthesametimerecognizethenewfinancialliability.WheretheCompanymakessubstantialrevisionstopartorallofthecontractualstipulationsoftheexistingfinancialliability,itshallterminatetherecognitionoftheexistingfinancialliabilityorpartofit,andatthesametimerecognizethefinancialliabilityafterrevisingthecontractualstipulationsasanewfinancialliability.Wheretherecognitionofafinancialliabilityistotallyorpartiallyterminated,theCompanyshallincludeintotheprofitsandlossesofthecurrentperiodthedifferencebetweenthecarryingamountwhichhasbeenterminatedfromrecognitionandtheconsiderationsithaspaid(includingthenon-cashassetsithastransferredoutandthenewfinancialliabilitiesithasassumed).WheretheCompanybuysbackpartofitsfinancialliabilities,itshalldistribute,onthedateofrepurchase,thecarryingamountofthewholefinancialliabilitiesinlightofthecomparativelyfairvalueofthepartthatcontinuestoberecognizedandthepartwhoserecognitionhasalreadybeenterminated.Thegapbetweenthecarryingamountwhichisdistributedtothepartwhoserecognitionhasterminatedandtheconsiderationsithaspaid(includingthenoncashassetsithastransferredoutandthenewfinancialliabilitiesithasassumed)shallberecordedintotheprofitsandlossesofthecurrentperiod.
5.Determinationofthefairvalueofthefinancialassets(liabilities)Ifactivemarketsforthefinancialinstrumentsexist,thefairvalueshallbemeasuredbyquotedpricesintheactivemarkets.Ifactivemarketsforthefinancialinstrumentsdonotexist,valuationtechniquesshallbeappliedforthemeasurement.TheCompanyusesvaluationtechniquesappropriateinthecircumstancesandforwhichsufficientdataareavailabletomeasurefairvalue.TheCompanychoosesrelevantobservableinputsforidenticalorsimilarassetsorliabilities.OnlywhenrelevantobservableinputsareunavailableorshouldtheCompanyuseunobservableinputsfortheassetorliability.
6.Impairmentprovisionofthefinancialassets
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TheCompanyrecognizetheexpectedcreditlossonfinancialassetsmeasuredatamortizedcost,financialassetsmeasuredatfairvaluethroughothercomprehensiveincome(debtinstruments),financialguaranteecontract,andsoon,ontheindividualorportfoliobasis.TheCompanyconsidersallreasonableandrelevantinformation,includingpastevents,currentconditions,andforecastsoffutureeconomicconditions,andusestheriskofdefaultastheweighttocalculatetheprobability-weightedamountofpresentvalueofdifferencebetweenthecashflowreceivablefromthecontractandthecashflowexpectedtobereceivedtoconfirmtheexpectedcreditloss.ForaccountreceivablesandcontractassetsrecognizedaccordingtoAccountingStandardsforBusinessEnterprisesNo.14Revenue,whetherasignificantfinancingcomponentiscontainedornot,theCompanyshallalwaysmeasurethelossallowanceatanamountequaltolifetimeexpectedcreditlosses.ForleasereceivablesrecognizedaccordingtoAccountingStandardsforBusinessEnterprisesNo.21Lease,theCompanyshallalwaysmeasurethelossallowanceatanamountequaltolifetimeexpectedcreditlosses.Forotherfinancialinstruments,theCompanyshallassesschangesinthecreditriskoftherelevantfinancialinstrumentssinceinitialrecognitionateachbalancesheetdate.Thecompanycomparestheriskofdefaultonthebalancesheetdateoffinancialinstrumentswiththeriskofdefaultonthedateofinitialrecognitiontodeterminetherelativechangeintheriskofdefaultduringtheexpectedlifeofthefinancialinstrumenttoassesswhetherthereisasignificantincreaseincreditriskoffinancialassetssincetheinitialrecognition.Generally,theCompanybelievesthatthecreditriskofthefinancialinstrumenthassignificantlyincreasedover30daysaftertheduedate,unlessthereissolidevidencethatthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition.Ifthecreditriskofafinancialinstrumentatthereportingdateisrelativelylow,theCompanyconsidersthatthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysincetheinitialrecognition.Ifthecreditriskofthefinancialinstrumenthasincreasedsignificantlysincetheinitialconfirmation,theCompanyshallmeasurethelossallowanceforafinancialinstrumentatanamountequaltothelifetimeexpectedcreditlosses.Ifthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition,theCompanyshallmeasuretheloss
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allowanceforthatfinancialinstrumentatanamountequalto12-monthexpectedcreditlosses.Theincreaseorreversalamountoflossallowancethusformedshallbeincludedinthecurrentprofitsandlossesasimpairmentlossesorgains.Forfinancialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments),lossprovisionsarerecognisedinothercomprehensiveincomeandimpairmentlossesorgainsarerecognisedinprofitorlossatthecurrentperiodwithoutreducingthecarryingamountofthefinancialassetinthebalancesheet.
(11)Inventory
1.InventoryclassificationInventoriesincludematerialintransit,rawmaterial,turnovermaterials,finishedgoods,workinprocess,issuecommodity,materialsforconsignedprocessing,etc.Inventoryisinitiallymeasuredatcost.Inventorycostincludespurchasecost,processingcostandotherexpendituresincurredtobringinventorytoitscurrentlocationandstate.
2.ValuationmethodforinventorydispatchedTheweightedaveragemethodisusedtocalculatetheactualcostoftheinventoriesdispatched.
3.InventorysystemTheCompanyusesperpetualinventorysystem.
4.Amortizationoflow-valuedconsumablesandpackingmaterials
(1)Low-valuedconsumablesshallbeamortizedinfulluponissuance.
(2)Packingmaterialsshallbeexpensedinfulluponissuance.
5.ThebasisforconfirmingthenetrealizablevalueofinventoriesandthemethodstomakeprovisionfortheinventoryimpairmentlossOnthebalancesheetdate,inventoriesshallbemeasuredatthelowerofcostandnetrealizablevalue.Whenthecostofinventoriesishigherthanitsnetrealizablevalue,provisionforinventoryimpairmentlossshallbemade.Thenetrealizablevaluereferstotheamountoftheestimatedsellingpriceoftheinventoryminustheestimatedcoststhatwilloccuratthetimeofcompletion,estimatedsellingexpenses,andrelevanttaxesindailyactivities.Thenetrealizablevalueofinventories(finishedproducts,stockcommodity,material,etc.)heldfordirectsellinginthedailybusinessactivityshallbecalculatedbydeductingthe
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estimatedsaleexpenseandrelevanttaxesfromtheestimatedsalepriceofinventories;Thenetrealizablevalueofinventoriesforfurtherprocessinginthedailybusinessactivityshallbecalculatedbydeductingtheestimatedcostofcompletion,estimatedsaleexpenseandrelevanttaxesfromtheestimatedsalepriceofinventories;Thenetrealizablevalueofinventoriesheldfortheexecutionofsalescontractsorlaborcontractsshallbecalculatedonthegroundofthecontractprice.IftheCompanyholdsmoreinventoriesthanthequantitiessubscribedinthesalescontract,thenetrealizablevalueoftheexcessivepartoftheinventoriesshallbecalculatedonthegroundofthegeneralsalesprice.Aftertheinventoryimpairmentiswithdrawn,ifthefactorsthatpreviouslyaffectedthewrite-downoftheinventoryvaluehavedisappeared,causingthenetrealizablevalueoftheinventorytobehigherthanitsbookvalue,itshallbereversedwithintheamountoftheinventoryimpairmentthathasbeenwithdrawn,andtherevertedamountshallbeincludedinthecurrentprofitandloss.
(12)Contractasset
1.RecognitionmethodsandcriteriaofcontractassetsWheneitherpartytoacontracthasperformed,theCompanyshallpresentthecontractinthestatementoffinancialpositionasacontractassetoracontractliability,dependingontherelationshipbetweentheCompany’sperformanceandthecustomer’spayment.IftheCompanyhavetherightstoreceiveconsideration(therightisconditionedonfactorsotherthanthepassageoftime)bytransferringgoodsorservicestoacustomer,theentityshallpresentthecontractasacontractasset.Contractassetsandcontractliabilitiesunderthesamecontractaredisclosedinnetamount.Anentityshallpresentanyunconditionalrightstoconsideration(onlythepassageoftimeisrequired)separatelyasareceivable.
2.Expectedcreditlossofcontractassets
Fortheaccountingpolicyoftheexpectedcreditlossofcontractassets,pleaserefertoNote
(10)6.Impairmentprovisionofthefinancialassetsunder“3.Significantaccountingpoliciesandaccountingestimates”
(13)Long-termequityinvestment
1.CriteriaofjointcontrolandsignificantinfluenceJointcontrolisthecontractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhendecisionsabouttherelevantactivitiesrequiretheunanimousconsentofthepartiessharingcontrol.IftheCompanyandotherjointventurehavejointcontroloftheinvesteeandhaverightstothenetassetsoftheinvestee,theinvesteeisajointventureoftheCompany.
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Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutnotcontrolorjoincontrolofthosepolicies.IftheCompanycouldexertsignificantinfluenceovertheinvestee,theinvesteeistheassociateoftheCompany.
2.Theinitialcostoflong-termequityinvestmentfrombusinessacquisition
(1)Long-termequityinvestmentfrombusinessacquisitionForabusinesscombinationundercommoncontrol,theinitialinvestmentcostofthelong-termequityinvestmentshallbetheabsorbingparty’sshareofthecarryingamountoftheowner’sequityofthepartybeingabsorbedintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatcombinationdate.Thedifferencebetweentheinitialinvestmentcostandthecarryingamountofthepreviouslyheldequityinvestment,togetherwiththeadditionalinvestmentcostfornewsharesatcombinationdate,shallbeadjustedtothecapitalreserve.Ifthebalanceofcapitalreserveisnotsufficient,anyexcessshallbeadjustedtoretainedearnings.Whenaninvestorbecomescapableofexercisingcontroloveraninvesteeduetoadditionalinvestmentorotherreasons,thedifferencebetweentheinitialinvestmentcostrecognizedinaccordancewiththeaboveprinciplesandthesumofthebookvalueofthelong-termequityinvestmentbeforethemergerplusthebookvalueofthecostforthefurthersharesacquiredonthemergerdate,shallbeadjustedtothecapitalreserve.Ifthebalanceofcapitalreserveisnotsufficient,anyexcessshallbeadjustedtoretainedearnings.Forabusinesscombinationnotundercommoncontrol,theinitialinvestmentcostofthelong-termequityinvestmentshallbetheacquisitioncostattheacquisitiondate.Whenaninvestorbecomescapableofexercisingcontroloveraninvesteeduetoadditionalinvestmentorotherreasons,theinitialinvestmentcostunderthecostmethodshallbethecarryingamountofpreviouslyheldequityinvestmenttogetherwiththeadditionalinvestmentcost.
(2)Theinitialcostofthelong-termequityinvestmentotherthanfrombusinessacquisitionTheinitialcostofalong-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchasecostwhichisactuallypaid.Theinitialcostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethefairvalueoftheequitysecuritiesissued.
3.Subsequentmeasurementandprofitorlossrecognition
(1)Costmethod
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TheCompanyadoptscostmethodforthelongterminvestmentinsubsidiarycompanyunlesstheinvestmentqualifiesasheldforsale.Aninvestingenterpriseshall,inaccordancewiththeattributableshareofthenetprofitsorlossesoftheinvestedentity,recognizetheinvestmentprofitsorlossesexceptthedividenddeclaredbutunpaid,whichisincludedinthepaymentwhenacquiringtheinvestment.
(2)EquitymethodAlong-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.Duringtheholdingperiod,iftheinvesteemakesconsolidatedfinancialstatements,theCompanyshallcalculateitssharebasedontheinvestee’snetprofit,othercomprehensiveincomeandtheamountofotherowners'equityattributetotheinvesteeintheconsolidatedfinancialstatements.Theinvestorshallrecognizeitsshareoftheinvestee’snetprofitsorlossesaftermakingappropriateadjustmentsaccordingtotheCompany’saccountingprinciplesandoperatingperiodbasedonthefairvaluesoftheinvestee’sidentifiablenetassets.Theunrealizedprofitsorlossesresultingfromtransactionsbetweentheinvestoranditsassociateorjointventureshallbeeliminatedinproportiontotheinvestor’sequityinterestintheinvestee,basedonwhichinvestmentincomeorlossesshallberecognized,exceptthetransactionofinvestmentorsaleofassetsisabusiness.Anylossesresultingfromtransactionsbetweentheinvestorandinvesteewhichareattributabletoassetimpairmentshallberecognizedinfull.
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Thecompany’snetlossesincurredbyjointventuresorassociates,inadditiontoassumingadditionallossobligations,arelimitedtothebookvalueoflong-termequityinvestmentsandotherlong-termequitythatessentiallyconstitutesnetinvestmentinjointventuresorassociates.Ifajointventureorassociatedenterpriserealizesnetprofitsinthefuture,thecompanyresumesrecognizingitsshareofprofitsaftertheshareofprofitsmakesupfortheshareofunrecognizedlosses.
(3)Disposaloflong-termequityinvestmentWhendisposinglong-termequityinvestment,thedifferencebetweentheproceedsactuallyreceivedandthecarryingamountshallberecognizedinprofitorlossforthecurrentperiod.Partialdisposaloflong-termequityinvestmentsaccountedforbytheequitymethod,andtheremainingequityisstillaccountedforbytheequitymethod,theothercomprehensiveincomerecognizedbytheoriginalequitymethodshallbecarriedforwardaccordingtothesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvestee.Allotherchangesintheinterestsoftheholdersarecarriedforwardtothecurrentprofitandlossonaproratabasis.Whenaninvestorcannolongerexercisejointcontroloforsignificantinfluenceoveraninvesteeduetodisposalofequityinvestmentorotherreasons,anyothercomprehensiveincomepreviouslyrecognizedshallbeaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilitiesforthecurrentperiodupondiscontinuationoftheequitymethod.Otherowner'sequitychangeshallbetransferredintoprofitorlossofcurrentperiodinfullwhentheCompanyceasetoadopttheequitymethod.Whenaninvestorcannolongercontroltheinvesteeduetopartialdisposal,whentheindividualfinancialstatementsareprepared,theremainingequitycanexercisejointcontrolorsignificantinfluenceontheinvestee,theequitymethodshallbeusedtoaccountfortheremainingequity.Itisdeemedthattheequitymethodisadoptedforadjustmentsincetheacquisition,andtheothercomprehensiveincomerecognizedbeforethecontroloftheinvesteeisobtainediscarriedforwardonthesamebasisasthedirectdisposalofrelatedassetsorliabilitiesbytheinvestee,becausetheequitymethodisusedforaccounting.Theconfirmedchangesinotherowners’equityarecarriedforwardtothecurrentprofitandlossonaproratabasis.Iftheremainingequitycannotexercisejointcontrolorexertsignificantinfluenceontheinvestee,itshallberecognizedasafinancialasset,andthedifferencebetweenitsfairvalueandbookvalueonthedatewhencontrolislostshallbeincludedinthe
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currentprofitandloss,andothercomprehensiveincomeandotherowner’sinterestspreviouslyrecognizedshallbetransferredtoprofitorlossinfull.Iftheequityinvestmentofasubsidiaryisdisposedthroughmultipletransactionsuntilitlosescontrol,whichisapackagetransaction,eachtransactionshallbeaccountedasatransactionthatdisposesoftheequityinvestmentofthesubsidiaryandlosescontrol.Eachtransactionbeforethelossofcontrol,thedifferencebetweenthedisposalpriceandthebookvalueofthecorrespondingdisposedpartoflong-termequityinvestmentisfirstlyrecognizedasothercomprehensiveincomeinindividualfinancialstatements,andthentransferredtothecurrentprofitandlosswhenthecontrolislost.Ifitisnotapackagetransaction,eachtransactionshallbeaccountedseparately.
(14)Fixedassets
1.RecognitionofFixedassetsTheterm"fixedassets"referstothetangibleassetsheldforthesakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagementandofwhichusefullifeisinexcessofonefiscalyear.Nofixedassetmayberecognizedunlessitsimultaneouslymeetstheconditionsasfollows:
(1)Theeconomicbenefitspertinenttothefixedassetarelikelytoflowintotheenterprise;and
(2)Thecostofthefixedassetcanbemeasuredreliably.Fixedassetsareinitiallymeasuredatcost(andconsideringtheimpactofexpecteddismantlingcostfactors).Subsequentexpendituresrelatedtofixedassetsareincludedinthecostoffixedassetswhentherelatedeconomicbenefitsarelikelytoflowinandtheircostscanbereliablymeasured;thebookvalueofthereplacedpartisderecognized;allothersubsequentexpendituresareincurredshallbeincludedinthecurrentprofitandloss.
2.FixedassetsdepreciationFixedassetsaredepreciatedunderthestraight-linemethod.Thedepreciationrateisdeterminedaccordingtothecategoryofassets,theusefullifeandtheexpectedresidualrate.Ifthecomponentsofthefixedassetshavedifferentusefullivesorprovidetheeconomicbenefitsinadifferentway,thendifferentdepreciationrateormethodshallbeappliedandthedepreciationofthecomponentsshallbecalculatedseparately.Detailsofclassification,depreciationperiod,residualvaluerateandannualdepreciationrateareasfollows:
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| Category | Depreciationmethod | DepreciationPeriod | ResidualValueRate(%) | DepreciationRate(%) |
| PlantsandBuildings | straightlinemethod | 40years | 5.00 | 2.38 |
| Machinery | straightlinemethod | 17-24years | 5.00 | 3.96-5.59 |
| Transportationandotherequipment | straightlinemethod | 5-12years | 5.00 | 7.92-19.00 |
4.DisposaloffixedassetsWhenafixedassetisdisposed,oritisexpectedthatnoeconomicbenefitswillbegeneratedthroughuseordisposal,therecognitionoffixedassetshallbedeterminated.Theamountofdisposalincomeoffixedassetsraisingfromsell,transfer,scrappingordamageshallbeincludedinthecurrentprofitandlossafterdeductingitsbookvalueandrelatedtaxes.
(15)Constructioninprogress
Constructioninprogressismeasuredattheactualcostincurred.Theactualcostincludesconstructioncosts,installationcosts,borrowingcoststhatmeetthecapitalizationconditions,andothernecessaryexpendituresincurredbeforetheconstructioninprogressreachesitsintendedusestatus.Constructioninprogressistransferredtofixedassetwhenithasreacheditsworkingconditionforitsintendeduseanddepreciationwillbeaccruedfromthenextmonth.
(16)Borrowingcosts
1.PrincipleoftherecognitionofcapitalizedborrowingcostsWheretheborrowingcostsincurredtoanenterprisecanbedirectlyattributabletotheacquisitionandconstructionorproductionofassetseligibleforcapitalization,itshallbecapitalizedandrecordedintothecostsofrelevantassets.Otherborrowingcostsshallberecognizedasexpensesonthebasisoftheactualamountincurred,andshallberecordedintothecurrentprofitsandlosses.Assetseligibleforcapitalizationrefertothefixedassets,investmentproperty,inventoriesandotherassets,ofwhichtheacquisitionandconstructionorproductionmaytakequitealongtimetogetreadyforitsintendeduseorforsale.
2.ThecapitalizationperiodofborrowingcostsThecapitalizationperiodshallrefertotheperiodfromthecommencementtothecessationofcapitalizationoftheborrowingcosts,excludingtheperiodofsuspensionofcapitalizationoftheborrowingcosts.
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Theborrowingcostsshallnotbecapitalizedunlesstheysimultaneouslymeetthefollowingrequirements:
(1)Theassetdisbursementshavealreadyincurred,whichshallincludecash,transferrednon-cashassetsorinterestbearingdebtspaidfortheacquisitionandconstructionorproductionactivitiesforpreparingassetseligibleforcapitalization;
(2)Theborrowingcostshasalreadyincurred;and
(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted.Whenthequalifiedassetunderacquisitionandconstructionorproductionisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased.
3.ThesuspensionofcapitalizationofborrowingcostsWheretheacquisitionandconstructionorproductionofaqualifiedassetisinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspended.Iftheinterruptionisanecessarystepformakingthequalifiedassetunderacquisitionandconstructionorproductionreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallcontinue.Theborrowingcostsincurredduringsuchperiodshallberecognizedasexpenses,andshallberecordedintotheprofitsandlossesofthecurrentperiod,tilltheacquisitionandconstructionorproductionoftheassetrestarts.
4.MethodofcalculatingthecapitalizationrateandcapitalizedamountofborrowingcostsForinterestexpense(minustheincomeofinterestsearnedontheunusedborrowingloansasadepositinthebankorinvestmentincomeearnedontheloanasatemporaryinvestment)andtheancillaryexpenseincurredtoaspecificallyborrowedloan,thoseincurredbeforeaqualifiedassetunderacquisition,constructionorproductionisreadyfortheintendeduseorsaleshallbecapitalizedattheincurredamountwhentheyareincurred,andshallberecordedintothecostsoftheasseteligibleforcapitalization.TheCompanyshallcalculateanddeterminetheto-be-capitalizedamountofinterestsonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Thecapitalizationrateshallbecalculatedanddeterminedinlightoftheweightedaverageinterestrateofthegeneralborrowing.Duringthecapitalizationperiod,theexchangedifferencebetweentheprincipalandinterestoftheforeigncurrencyspecialloaniscapitalizedandincludedinthecostoftheassetsthat
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meetthecapitalizationconditions.Exchangedifferencesarisingfromtheprincipalandinterestofforeigncurrencyborrowingsotherthanforeigncurrencyspecialborrowingsareincludedinthecurrentprofitsandlosses.
(17)IntangibleAssets
1.MeasurementofIntangibleAssets
(1)InitialmeasurementisbasedoncostuponacquisitionThecostofanintangibleassetonacquisitionincludethepurchaseprice,relevanttaxesandothernecessarydisbursementswhichmaybedirectlyattributabletobringingtheintangibleassettotheconditionsfortheexpectedpurpose.
(2)SubsequentMeasurementTheCompanyshallanalyzeandjudgethebeneficialperiodofintangibleassetsuponacquisition.Intangibleassetswithfinitebeneficialperiodshallbeamortizedunderthestraight-linemethodduringtheperiodwhentheintangibleassetcanbringeconomicbenefitstotheenterprise.Ifitisunabletoestimatethebeneficialperiodoftheintangibleasset,itshallberegardedasanintangibleassetwithuncertainservicelifeandshallnotbeamortized.
2.Estimatedusefullivesofintangibleassetswithlimitedusefullives
| Item | Estimatedusefullife | Criteria |
| Landuseright | 50years | Landuserightcertificate |
| Software | 10years | Estimatedusefullife |
3.ClassificationcriteriaforinternalresearchphaseanddevelopmentphaseTheexpendituresforitsinternalresearchanddevelopmentprojectsofanenterpriseshallbeclassifiedintoresearchexpendituresanddevelopmentexpenditures.Researchphasereferstothephaseofcreativeandplannedinvestigationtoacquireandstudytoacquireandunderstandnewscientificortechnologicalknowledge.Developmentphasereferstothephaseduringwhichtheresultofresearchphaseorotherknowledgeisappliedintocertainprojectsordesignsforthemanufacturingofneworsubstantiallyimprovedmaterial,deviceandproductbeforecommercialmanufacturinganduse.
4.Criteriaofcapitalizationofdevelopmentphaseexpenditures
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Expendituresincurredduringtheresearchphasearerecognizedinprofitorlossfortheperiodwhenincurred.Expendituresincurredduringtheresearchphaseshallbecapitalizediftheymeetthefollowingconditionsatthesametime.Iftheexpendituresincurredduringthedevelopmentphasedonotmeetthefollowingconditions,theyshallbeincludedinthecurrentperiod'sprofitandloss.
(1)Itistechnicallyfeasibletocompletetheintangibleassetsothatitcanbeusedorsold.
(2)TheCompanyintenttocompletetheintangibleassetanduseorsellit.
(3)Thewayintangibleassetsgenerateeconomicbenefits,includingbeingabletoprovethat
thereisamarketfortheproductsproducedbyusingtheintangibleassetsortheintangibleassetsthemselveshasmarket.Iftheintangibleassetswillbeusedinternally,itshouldbeabletoprovethattheintangibleassetswillbeuseful.
(4)Thecompanyhassufficienttechnical,financialandotherresourcestocompletethe
developmentoftheintangibleassetandisabletouseorselltheintangibleasset.
(5)Theexpenditureattributabletothedevelopmentphaseoftheintangibleassetcanbemeasuredreliably.Ifitisimpossibletodistinguishbetweenexpendituresintheresearchphaseandexpendituresinthedevelopmentphase,allresearchanddevelopmentexpendituresincurredshallbeincludedinthecurrentperiod'sprofitandloss.
(18)Impairmentoflong-termassetsForlong-termassetssuchaslong-termequityinvestments,investmentpropertyunderthecostmodel,fixedassets,constructioninprogress,right-of-useassets,intangibleassetswithlimitedusefullivesandoilgasassetsetc.,theCompanyshallperformimpairmenttestsattheperiodendifthereisclearindicationofimpairment.Iftherecoverableamountsoflong-termassetsarelessthantheircarryingamounts,thecarryingamountsoftheassetsshallbewrittendowntotheirrecoverableamounts.Thewrite-downsarerecognizedasimpairmentlossesandchargedtocurrentprofitandloss.Therecoverableamountsoflong-termassetsarethehigheroftheirfairvalueslesscoststosellandthepresentvaluesofthefuturecashflowsexpectedtobederivedfromtheassets.TheCompanyshallestimateitsrecoverableamountonanindividualbasis.Whereitisdifficulttodoso,itshalldeterminetherecoverableamountoftheassetsonthebasisoftheassetgrouptowhichtheassetbelongs.Theterm"assetsgroup”referstoaminimumcombinationofassetsbywhichthecashflowscouldbegeneratedindependentlyThegoodwill,intangibleassetswithuncertainusefullifeandintangibleassetsnotmeetingtheexpectedconditionforusetheshallbesubjecttoanimpairmenttestatleastattheendofeachyear.
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WhentheCompanymakesanimpairmenttestofassets,itshall,asofthepurchasingday,apportionthecarryingvalueofthebusinessreputationformedbymergerofenterprisestotherelevantassetgroupsbyareasonablemethod.Whereitisdifficulttodoso,itshallbeapportionedtotherelevantcombinationsofassetgroups.Arelatedgroupofassetsorcombinationofassetgroupsisanassetgrouporcombinationofassetgroupsthatcanbenefitfromthesynergyeffectofabusinesscombination.Whenmakinganimpairmenttestontherelevantassetgroupsorcombinationofassetgroupscontainingbusinessreputation,ifanyevidenceshowsthattheimpairmentofassetgroupsorcombinationsofassetgroupsispossible,theCompanyshallfirstmakeanimpairmenttestontheassetgroupsorcombinationsofassetgroupsnotcontainingbusinessreputation,calculatetherecoverableamount,compareitwiththerelevantcarryingvalueandrecognizethecorrespondingimpairmentloss.ThentheCompanyshallmakeanimpairmenttestoftheassetgroupsorcombinationsofassetgroupscontainingbusinessreputation,andcomparethecarryingvalueoftheseassetgroupsorcombinationsofassetgroups(includingthecarryingvalueofthebusinessreputationapportionedthereto)withtherecoverableamount.Wheretherecoverableamountoftherelevantassetsorcombinationsoftheassetgroupsislowerthanthecarryingvaluethereof,itshallrecognizetheimpairmentlossofthebusinessreputation.Impairmentlossesonlong-termassetsshallnotbereversedinsubsequentaccountingperiodsoncerecognized.
(19)Long-termdeferredexpense
Thelong-termdeferredexpensereferstotheexpensesincurredbutshallbebornebycurrentandsubsequentaccountingperiod,whichismorethanoneyear.Thelong-termdeferredexpenseshallbeamortizedoveritsbeneficiaryperiodevenly.
(20)ContractliabilityWheneitherpartytoacontracthasperformed,theCompanyshallpresentthecontractinthestatementoffinancialpositionasacontractassetoracontractliability,dependingontherelationshipbetweentheCompany’sperformanceandthecustomer’spayment.Ifacustomerpaysconsideration,ortheCompanyhasarighttoanamountofconsiderationbeforetheCompanytransfersagoodorservicetothecustomer,theCompanyshallpresentthecontractasacontractliability.Contractassetsandcontractliabilitiesunderthesamecontractaredisclosedinnetamount.
(21)Employeebenefits
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1.AccountingtreatmentforshortemployeebenefitTheCompanyshallrecognize,intheaccountingperiodinwhichanemployeeprovidesservice,actuallyoccurredshort-termemployeebenefitsasaliability,withacorrespondingchargetotheprofitorlossorcostofanassetforthecurrentperiod.Paymentsmadebyanenterpriseofsocialsecuritycontributionsforemployees,paymentsofhousingfunds,andunionrunningcostsemployeeeducationcostsprovidedinaccordancewithrelevantrequirementsshall,intheaccountingperiodinwhichemployeesprovideservices,becalculatedaccordingtoprescribedbasesandpercentagesindeterminingtheamountofemployeebenefits.Theemployeewelfareexpensesincurredbythecompanyareincludedinthecurrentprofitandlossorrelatedassetcostsbasedontheactualamountwhentheyactuallyoccur.Amongthem,non-monetarybenefitsaremeasuredatfairvalue.
2.Accountingtreatmentofpost-employmentbenefits
(1)Definedcontributionplan
TheCompanyshallrecognize,intheaccountingperiodinwhichanemployeeprovidesservice,pensionfundandunemploymentfundforemployeesasaliabilityaccordingtothelocalgovernmentregulations.Theamountshallbecalculatedaccordingtolocalprescribedbasesandpercentagesindeterminingtheamountofemployeebenefits,withacorrespondingchargetotheprofitorlossorcostofanassetforthecurrentperiod.Inaddition,theCompanyalsoparticipatesintheenterpriseannuityplan/supplementarypensioninsurancefundapprovedbyrelevantstatedepartments.TheCompanypaysacertainproportionofthetotalsalaryofemployeestotheannuityplan/localsocialinsuranceagency,andthecorrespondingexpensesareincludedinthecurrentprofitandlossorrelatedassetcost.
(2)DefinedbenefitplanNone
3.AccountingtreatmentofterminationbenefitsTheCompanyshallrecognizeanemployeebenefitsliabilityforterminationbenefits,withacorrespondingchargetotheprofitorlossforthecurrentperiod,attheearlierofthefollowingdates:whentheCompanycannotunilaterallywithdrawtheofferofterminationbenefitsbecauseofanemploymentterminationplanoracurtailmentproposal;orwhentheCompanyrecognizescostsorexpensesrelatedtoarestructuringthatinvolvesthepaymentofterminationbenefits.
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(22)Estimatedliabilities
Theobligationpertinenttoacontingencyshallberecognizedasanestimatedliabilitywhenthefollowingconditionsaresatisfiedsimultaneously:
(1)Thatobligationisacurrentobligationoftheenterprise;
(2)Itislikelytocauseanyeconomicbenefittoflowoutoftheenterpriseasaresultofperformanceoftheobligation;and
(3)Theamountoftheobligationcanbemeasuredinareliableway.Theestimateddebtsshallbeinitiallymeasuredinaccordancewiththebestestimateofthenecessaryexpensesfortheperformanceofthecurrentobligation.Todeterminethebestestimate,anenterpriseshalltakeintofullconsiderationoftherisks,uncertainty,timevalueofmoney,andotherfactorspertinenttotheContingencies.Ifthetimevalueofmoneyisofgreatsignificance,thebestestimateshallbedeterminedafterdiscountingtherelevantfutureoutflowofcash.Thebestestimateshallbeconductedinaccordancewiththefollowingsituations,respectively:
Ifthereisacontinuousrangeforthenecessaryexpensesandifalltheoutcomeswithinthisrangeareequallylikelytooccur,thebestestimateshallbedeterminedinaccordancewiththeaverageestimatewithintherange,thatis,theaverageoftheupperandlowerlimit.Ifthereisnotasequentrangeforthenecessaryexpensesandiftheoutcomeswithinthisrangearenotequallylikelytooccur,thebestestimateshallbedeterminedasfollows:
(1)IftheContingenciesconcernasingleitem,itshallbedeterminedinthelightofthemostlikelyoutcome.
(2)IftheContingenciesconcerntwoormoreitems,thebestestimateshallbecalculatedanddeterminedinaccordancewithallpossibleoutcomesandtherelevantprobabilities.Whenallorsomeoftheexpensesnecessaryfortheliquidationofanestimateddebtsofanenterpriseisexpectedtobecompensatedbyathirdparty,thecompensationshallbeseparatelyrecognizedasanassetonlywhenitisvirtuallycertainthatthereimbursementwillbeobtained.Theamountrecognizedforthereimbursementshallnotexceedthebookvalueoftheestimateddebts.
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Thecompanyreviewsthebookvalueoftheestimatedliabilitiesonthebalancesheetdate.Ifthereisconclusiveevidencethatthebookvaluedoesnotreflectthecurrentbestestimate,thebookvaluewillbeadjustedaccordingtothecurrentbestestimate.
(23)Revenue
(1)ThegeneralprincipleofrevenuerecognitionandmeasurementThecompanyshallrecogniserevenuewhen(oras)thecompanysatisfiesaperformanceobligationwhen(oras)thecustomerobtainscontrolofapromisedgoodorservice.Controlofapromisedgoodorservicereferstotheabilitytodirecttheuseof,andobtainsubstantiallyalloftheremainingbenefitsfromit.Ifthecontractcontainstwoormoreperformanceobligations,thecompanyshallallocatethetransactionpricetoeachindividualperformanceobligationbasedontherelativeproportionofthestand-alonesellingpriceofthegoodsorservicespromisedbyeachindividualperformanceobligationonthedateofthecontract.Thecompanymeasuresrevenuebasedonthetransactionpriceallocatedtoeachindividualperformanceobligation.Thetransactionpriceistheamountofconsiderationtowhichthecompanyexpectstobeentitledinexchangefortransferringpromisedgoodsorservicestoacustomer,excludingamountscollectedonbehalfofthirdpartiesoramountsexpectedtobereturnedtocustomers.Thecompanyshallconsiderthetermsofthecontractanditscustomarybusinesspracticestodeterminethetransactionprice.Whendeterminingthetransactionprice,thecompanyshallconsidertheeffectsofallofthefollowing:variableconsideration,theexistenceofasignificantfinancingcomponentinthecontract,non-cashconsideration,andconsiderationpayabletoacustomer.Thecompanydeterminesthetransactionpricethatincludesvariableconsiderationatanamountthatdoesnotexceedtheamountofaccumulatedrecognizedrevenuethatisunlikelytobemateriallyreversedwhentherelevantuncertaintyiseliminated.Ifthereisasignificantfinancingcomponentinthecontract,thecompanyshallrecogniserevenueatanamountthatreflectsthepricethatacustomerwouldhavepaidforthepromisedgoodsorservicesifthecustomerhadpaidcashforthosegoodsorserviceswhen(oras)theytransfertothecustomer,andusetheeffectiveinterestmethodtoamortizethedifferencebetweenthetransactionpriceandthecontractconsiderationduringthecontractperiod.Thecompanytransferscontrolofagoodorserviceovertimeand,therefore,satisfiesaperformanceobligationandrecognisesrevenueovertime,ifoneofthefollowingcriteriaismet.Otherwise,thecompanysatisfiestheperformanceobligationatapointintime.(a)thecustomersimultaneouslyreceivesandconsumesthebenefitsprovidedbythecompany’sperformanceasthecompanyperforms;
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(b)thecompany’sperformancecreatesorenhancesanassetthatthecustomercontrolsastheassetiscreatedorenhanced;or(c)thecompany’sperformancedoesnotcreateanassetwithanalternativeusetothecompanyandthecompanyhasanenforceablerighttopaymentforperformancecompletedtodate.Thecompanyshallrecogniserevenueovertimebymeasuringtheprogresstowardscompletesatisfactionofthatperformanceobligation,exceptwheretheperformanceprogresscannotbereasonablydetermined.Thecompanyconsidersthenatureofthegoodsorservicesandadoptstheoutputmethodortheinputmethodtodeterminetheprogressofperformance.Wheretheperformanceprogresscannotbereasonabledetermined,butthecompanyexpectstorecoverthecostsincurredinsatisfyingtheperformanceobligation,thecompanyshallrecogniserevenueonlytotheextentofthecostsincurreduntilsuchtimethatitcanreasonablymeasuretheoutcomeoftheperformanceobligation.Forperformanceobligationssatisfiedatacertainpointintime,thecompanyshallrecognisesrevenueatthepointwhenthecustomerobtainscontroloftherelevantgoodsorservices.Todeterminethepointintimeatwhichacustomerobtainscontrolofapromisedgoodsorservices,thecompanyshallconsiderrequirementsasfollows:
(a)Thecompanyhasapresentrighttopaymentforthepromisedgoodsorservicesandthecustomerispresentlyobligedtopayforthat;(b)Thecompanyhastransferredthelegaltitleofthegoodstothecustomer,thatis,thecustomerhasthelegaltitletothegoods;(c)Thecompanyhastransferredphysicalpossessionofthegoodstothecustomer,thatis,thecustomerhastakenpossessionofthegoods;(d)Thecompanyhastransferredthesignificantrisksandrewardsofownershipofthegoodstothecustomer,thatis,thecustomerhasthesignificantrisksandrewardsofownershipofthegoods;(e)Thecustomerhasacceptedthepromisedgoodsorservices.TheCompanydetermineswhetheritistheprincipaloragentwhenengaginginatransactionbasedonwhetherithascontroloverthegoodsorservicesbeforetransferringthemtothecustomer.IftheCompanyisabletocontrolthegoodsorservicesbeforetransferringthemtothecustomer,theCompanyistheprincipalandrecognizesrevenuebasedonthetotalconsiderationreceivedorreceivable;otherwise,theCompanyistheagentandrecognizesrevenuebasedontheamountofcommissionsorfeesitexpectstobeentitledtoreceive.
(2)ThespecificcriteriaofrevenuerecognitionandmeasurementCommoditysalescontractsbetweencompaniesandcustomersusuallyonlyincludeperformanceobligationsforthetransferofsteelandothercommodities.Thistypeofperformanceobligationisaperformanceobligationperformedatacertainpointintime.The
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Companyrecognizesrevenuewhenthecustomerobtainscontroloftherelevantgoodsorservices.Whenjudgingwhetherthecustomerhasobtainedcontrolofgoodsorservices,thecompanyconsidersthefollowingsigns:
Thecompanyobtainsthecurrentrightofcollectionofreceivables,thelegalownershipofthegoodsistransferredtothecustomer,thephysicalassetsofthegoodsaretransferredtothecustomer,thecompanytransfersthemainrisksandrewardsoftheownershipofthegoodstothecustomer,andthecustomerhasacceptedthegoods.
(24)ContractcostsContractcostsincludecoststofulfillacontractandincrementalcostsofobtainingacontract.IfthecostsincurredinfulfillingacontractwithacustomerarenotwithinthescopeofanotherStandard,forexample,Inventories,Property,PlantandEquipmentorIntangibleAssets,thecompanyshallrecogniseanassetfromthecostsincurredtofulfilacontractonlyifthosecostsmeetallofthefollowingcriteria:
(a)thecostsrelatedirectlytoacontractortoanexpectedcontract;(b)thecostsgenerateorenhanceresourcesoftheCompanythatwillbeusedinsatisfyingperformanceobligationsinthefuture;and(c)thecostsareexpectedtoberecovered.Thecompanyshallrecogniseasanassettheincrementalcostsofobtainingacontractwithacustomerifthecompanyexpectstorecoverthosecosts.Anassetrecognisedinaccordancewithcontractcostsshallbeamortisedinconsistentwiththetransfertothecustomerofthegoodsorservicestowhichtheassetrelates.Thecompanymayrecognisetheincrementalcostsofobtainingacontractasanexpensewhenincurrediftheamortisationperiodoftheassetisoneyearorless.Thecompanyshallrecognizeanimpairmentlossinprofitorlosstotheextentthatthecarryingamountofanassetrelatedtocontractassetsexceeds:
(a)theremainingamountofconsiderationthatthecompanyexpectstoreceiveinexchangeforthegoodsorservicestowhichtheassetrelates;less(b)thecoststhatrelatedirectlytoprovidingthosegoodsorservicesandthathavenotbeenrecognizedasexpenses.Thecompanyshallrecognizeinprofitorlossareversalofsomeorallofanimpairmentlosspreviouslyrecognizedwhentheimpairmentconditionsnolongerexistorhaveimproved.Theincreasedcarryingamountoftheassetshallnotexceedthecarryingamountthatifnoimpairmentlosshadbeenrecognizedpreviously.
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(25)GovernmentSubsidies
1.Types
Agovernmentsubsidymeansthemonetaryornon-monetaryassetsobtainedfreeofchargebytheCompanyfromthegovernment.Governmentsubsidiesconsistofthegovernmentsubsidiespertinenttoassetsandgovernmentsubsidiespertinenttoincome.
Governmentsubsidiesrelatedtoassetsaregovernmentsubsidieswhoseprimaryconditionisthatanentityqualifyingforthemshouldpurchase,constructorotherwiseacquirelong-termassets.Thegovernmentsubsidiesrelatedtoincomesreferstogovernmentsubsidiesotherthanthoserelatedtoassets.ThestandardoftheCompanyrecognizingthegovernmentsubsidiesrelatedtoassetsis:
anentityqualifyingforthemshouldpurchase,constructorotherwiseacquirelong-termassets.ThestandardoftheCompanyrecognizingthegovernmentsubsidiesrelatedtoincomeis:
Inadditiontogovernmentsubsidiesrelatedtoassets,governmentsubsidiesthathavebeenclearlytargetedforsubsidies.
2.RecognitionGovernmentgrantsarerecognizedwhentheCompanyisabletomeettheconditionsattachedtothemandisabletoreceivethem.
3.AccountingtreatmentGovernmentsubsidiesrelatedtoassetsshallberecognizedbydeductingthesubsidiesatthecaringamountoftheassetsorrecognizedasdeferredincome.Subsidiesthatrecognizedasdeferredincomeshallberecognizedinprofitorlossonasystematicbasisovertheperiodsduringtheusefullivesoftherelevantassets(SubsidiesrelatedtodailyactivitiesshouldberecordedinOtherIncome.SubsidiesthatunrelatedtodailyactivitiesshouldberecordedinNon-operatingIncome).Thegovernmentsubsidiesrelatedtoincomestocompensatefutureexpenses,shallberecognizedasdeferredincomeandtransferredtocurrentprofitorloss(SubsidiesrelatedtodailyactivitiesshouldberecordedinOtherIncome.Subsidiesthatunrelatedtodaily
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activitiesshouldberecordedinNon-operatingIncome)intheperiodduringwhichtheexpensescompensationisrecognizedordeductrelevantcostorloss.Governmentsubsidiestocompensateexpensesorlossesalreadyincurredshallberecognizedincurrentprofitandloss(SubsidiesrelatedtodailyactivitiesshouldberecordedinOtherIncome.SubsidiesunrelatedtodailyactivitiesshouldberecordedinNon-operatingIncome)ordeductrelevantcostorloss.Thepolicydiscountloansobtainedbythecompanyaredividedintothefollowingtwosituationsandareseparatelyaccountedfor:
(a)Thegovernmentallocatesdiscountedfundstotheloanbank,andtheloanbankprovidesloanstothecompanyatapolicypreferentialinterestrate.Thepreferentialinterestrateisusedtocalculatetherelevantborrowingcosts.(b)Ifthegovernmentdirectlyallocatesthediscountedfundstothecompany,thecompanywilloffsettherelevantborrowingcostswiththecorrespondingdiscounts,directlyaccountedforthecurrentprofitorlossorrecognizedasdeferredincome.
(26)DeferredtaxassetsanddeferredtaxliabilitiesIncometaxincludescurrentincometaxanddeferredincometax.Exceptforincometaxarisingfrombusinesscombinationsandtransactionsoreventsdirectlyrecordedinowners'equity(includingothercomprehensiveincome),theCompanyrecordscurrentincometaxanddeferredincometaxincurrentprofitorloss.Deferredtaxassetsanddeferredtaxliabilitiesarecalculatedbasedonthedifferencebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamounts(temporarydifferences).Incometaxincludescurrentincometaxanddeferredincometax.Exceptforincometaxarisingfrombusinessmergersandtransactionsoreventsthataredirectlyincludedinowner'sequity(includingothercomprehensiveincome),thecompanywillincludecurrentincometaxanddeferredincometaxincurrentprofitandloss.Deferredincometaxassetsanddeferredincometaxliabilitiesarecalculatedandconfirmedbasedonthedifference(temporarydifference)betweenthetaxbaseofassetsandliabilitiesandtheirbookvalue.
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Anenterpriseshallrecognizethedeferredincometaxassetsarisingfromadeductibletemporarydifferencetotheextentoftheamountofthetaxableincomewhichitismostlikelytobeobtainedandwhichcanbedeductedfromthedeductibletemporarydifference.Asforanydeductiblelossortaxdeductionthatcanbecarriedforwardtothenextyear,thecorrespondingdeferredincometaxassetsshallbedeterminedtotheextentthattheamountoffuturetaxableincometobeoffsetbythedeductiblelossortaxdeductiontobelikelyobtained.Alltaxabletemporarydifferencesshallberecognizedasdeferredtaxliabilitieswithcertainlimitedexceptions.Exceptionswhendeferredtaxassetsanddeferredtaxliabilitiesarenotrecognizedinclude:
-Initialrecognitionofgoodwill;-Atransactionoreventthatisneitherabusinesscombinationnoraffectsaccountingprofit
andtaxableincome(ordeductibleloss)whenitoccurs,andtheassetsandliabilitiesinitiallyrecognizeddonotresultinequaltaxabletemporarydifferencesanddeductibletemporarydifferences.Fortaxabletemporarydifferencesrelatedtoinvestmentsinsubsidiaries,associatesandjointventures,deferredincometaxliabilitiesarerecognized,unlessthecompanycancontrolthetimingofthereversalofthetemporarydifferencesandthetemporarydifferencesarelikelynottobetransferredbackintheforeseeablefuture.Fordeductibletemporarydifferencesrelatedtoinvestmentsinsubsidiaries,associatesandjointventures,whenthetemporarydifferencesarelikelytobereversedintheforeseeablefutureandarelikelytobeusedtodeductthetaxableincomeofdeductibletemporarydifferencesinthefuture,incometaxassetsarerecognized.Onthebalancesheetdate,deferredincometaxassetsanddeferredincometaxliabilitiesaremeasuredattheapplicabletaxrateduringtheperiodwhentherelevantassetsareexpectedtoberecoveredortherelevantliabilitiesareexpectedtoberecoveredinaccordancewiththeprovisionsofthetaxlaw.Onthebalancesheetdate,thecompanyreviewsthebookvalueofdeferredincometaxassets.Ifitisprobablethatsufficienttaxableincomecannotbeobtainedinthefuturetooffsetthebenefitsofdeferredincometaxassets,thebookvalueofthedeferredincometaxassetsshallbewrittendown.Whenitispossibletoobtainsufficienttaxableincome,thereducedamountshallbereversed.
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WhentheCompanyhasthestatutoryrighttooffsetandintendtooffsetorobtainassetsandpayoffliabilitiesatthesametime,thecurrentincometaxassetsandcurrentincometaxliabilitiesarepresentedatthenetamountafteroffsetting.Anentityshalloffsetdeferredtaxassetsanddeferredtaxliabilitiesif,andonlyif:(a)theentityhasalegallyenforceablerighttosetoffcurrenttaxassetsagainstcurrenttaxliabilities;and(b)deferredincometaxassetsanddeferredincometaxliabilitiesarerelatedtoincometaxesleviedbythesametaxcollectionandadministrationdepartmentonthesametaxpayerortodifferenttaxpayers,butineachfutureperiodofsignificantdeferredincometaxassetsandliabilitiesreversal,thetaxpayersinvolvedintendtosettlethecurrentincometaxassetsandliabilitiesonanetbasisortoacquireassetsandsettleliabilitiesatthesametime.
(27)Leases
Leasereferstoacontractinwhichthelessortransferstherighttousetheassettothelesseewithinacertainperiodoftimetoobtainconsideration.Onthestartingdateofthecontract,thecompanyassesseswhetherthecontractisaleaseorcontainsalease.Ifthecontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftimeinexchangeforconsideration,thecontractis,orcontains,alease.Foracontractthatcontainsaleasecomponentandoneormoreadditionalleaseornon-leasecomponents,aleaseshallallocatetheconsiderationinthecontracttoeachleasecomponentonthebasisoftherelativestand-alonepriceoftheleasecomponentandtheaggregatestand-alonepriceofthenon-leasecomponents.
1.Thecompanyasthelessee
(1)Right-of-useassets
Onthestartdateoftheleaseterm,thecompanyrecognizestheright-of-useassetforleasesotherthanshort-termleasesandlow-valueassetleases.Right-of-useassetsareinitiallymeasuredatcost.Thiscostincludes:
?Theinitialmeasurementamountoftheleaseliability;?Ifthereisaleaseincentivefortheleasepaymentpaidonorbeforethestartoftheleaseterm,therelevantamountoftheleaseincentivealreadyenjoyedshallbededucted;
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?Theinitialdirectexpensesincurredbythecompany;?Thecompanyexpectstoincurcostsfordismantlingandremovingleasedassets,
restoringthesitewhereleasedassetsarelocated,orrestoringleasedassetstothestateagreeduponintheleaseterms,butdoesnotincludethecostsincurredfortheproductionofinventory.Thecompanyusesthestraight-linemethodtodepreciatetheright-of-useassets.Ifitcanbereasonablydeterminedthattheownershipoftheleasedassetwillbeobtainedattheendoftheleaseterm,thecompanyshalldepreciatetheleasedassetduringtheremainingusefullife;otherwise,theleasedassetwillbedepreciatedduringtheshorterperiodoftheleasetermandtheremainingusefullifeoftheleasedasset.Thecompanydetermineswhethertheright-of-useassethasbeenimpairedinaccordancewiththeprinciplesdescribedin"3.(18)Long-termassetimpairment"inthisnote,andconductsaccountingtreatmentfortheidentifiedimpairmentloss.
(2)LeaseliabilitiesAtthebeginningoftheleaseterm,thecompanyrecognizesleaseliabilitiesforleasesotherthanshort-termleasesandleasesoflow-valueassets.Leaseliabilitiesareinitiallymeasuredbasedonthepresentvalueofthepaymentsthatarenotpaidatthatdate.Leasepaymentsinclude:
?Fixedpayment(includingin-substancefixedpayment),lessanyleaseincentivesreceivable;?Variableleasepaymentsthatdependonanindexoraratio;?Amountsexpectedtobepayablebytheleaseunderresidualvalueguarantees;?Theexercisepriceofthepurchaseoptioniftheleaseisreasonablycertaintoexercisethatoption;
?Paymentsofpenaltiesforterminatingthelease,iftheleasetermreflectsthelesseeexercisinganoptiontoterminatethelease;Thecompanyusestheinterestrateimplicitintheleaseasthediscountrate,butiftheinterestrateimplicitintheleasecannotbereasonablydetermined,thecompany'sincrementalborrowinginterestrateisusedasthediscountrate.Thecompanycalculatestheinterestexpenseoftheleaseliabilityduringeachperiodoftheleasetermaccordingtoafixedperiodicinterestrate,andincludesitinthecurrentprofitandlossorthecostofrelatedassets.
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Variableleasepaymentsthatarenotincludedinthemeasurementofleaseliabilitiesareincludedinthecurrentprofitandlossorthecostofrelatedassetswhentheyoccur.Afterthestartoftheleaseterm,ifthefollowingcircumstancesoccur,thecompanyre-measurestheleaseliabilityandadjuststhecorrespondingright-of-useasset.Ifthebookvalueoftheright-of-useassethasbeenreducedtozero,buttheleaseliabilitystillneedstobefurtherreduced,thedifferenceshallbeincludedinthecurrentprofitandloss:
?Whentheevaluationresultoractualexercisesituationofthepurchaseoption,renewaloptionorterminationoptionchanges,thecompanyremeasurestheleaseliabilitybasedonthepresentvaluecalculatedbytheleasepaymentafterthechangeandthereviseddiscountrate;?Whentheactualfixedpaymentchanges,theexpectedpayableamountoftheguaranteeresidualvaluechanges,ortheindexorratiousedtodeterminetheleasepaymentchanges,thecompanycalculatesthepresentvaluebasedonthechangedleasepaymentandtheoriginaldiscountratetoremeasuretheleaseliability.However,ifchangesinleasepaymentsoriginatefromchangesinfloatinginterestrates,thereviseddiscountrateisusedtocalculatethepresentvalue.
(3)Short-termleasesandlow-valueassetleasesThecompanychoosesnottorecognizeright-of-useassetsandleaseliabilitiesforshort-termleasesandlow-valueassetleases,andcalculatestherelevantleasepaymentsinthecurrentprofitandlossorrelatedassetcostsonastraight-linebasisduringeachperiodoftheleaseterm.Short-termleasereferstoaleasethatdoesnotincludepurchaseoptionsforaleaseperiodnotexceeding12monthsatthebeginningoftheleaseperiod.Low-valueassetleasingreferstoaleasewithalowervaluewhenasingleleasedassetisanewasset.Ifthecompanysubleasesorexpectstosubleasetheleasedassets,theoriginalleaseisnotalow-valueassetlease.
(4)LeasemodificationsTheleaseshallaccountforaleasemodificationasaseparateleaseifboth:
?Themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormoreunderlyingassets;?theconsiderationfortheleaseincreasesbyanamountcommensuratewiththe
stand-alonepricefortheincreaseinscopeandanyappropriateadjustmenttothatstand-alonepricetoreflectthecircumstancesoftheparticularcontract.Foraleasemodificationthatisnotaccountedforasaseparatelease,attheeffectivedateoftheleasemodificationalesseeshallallocatetheconsiderationinthemodifiedcontract,determinetheleasetermofthemodifiedleaseandremeasuretheleaseliabilitiesby
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discountingtherevisedleasepaymentsusingareviseddiscountrate.Foraleasemodificationthatisnotaccountedforasaseparatelease,thelesseeshallaccountfortheremeasurementoftheleaseliabilitiesbydecreasingthecarryingamountoftheright-of-useassetstoreflectthepartialorfullterminationoftheleaseforleasemodificationsthatdecreasethescopeofthelease.Thelesseeshallrecognizeinprofitorlossanygainorlossrelatingtothepartialorfullterminationofthelease;orbymakingacorrespondingadjustmenttotheright-of-assetforallotherleasemodifications.
2.ThecompanyasthelessorOnthecommencementdateofthelease,thecompanydividestheleaseintofinanceleaseandoperatinglease.Financeleasereferstoaleaseinwhichalmostalltherisksandrewardsrelatedtotheownershipoftheleasedassetaretransferredregardlessofwhethertheownershipisultimatelytransferred.Operatingleasesrefertoleasesotherthanfinancialleases.Whenthecompanyactsasasubleaselessor,itclassifiessubleasesbasedontheright-of-useassetsgeneratedfromtheoriginallease.
(1)AccountingtreatmentofoperatingleasesTheleasereceiptsofoperatingleasesarerecognizedasrentalincomeineachperiodoftheleasetermaccordingtothestraight-linemethod.Thecompanycapitalizestheinitialdirectcostsincurredrelatedtooperatingleases,andallocatesthemtothecurrentprofitandlossonthesamebasisastherecognitionofrentalincomeduringtheleaseterm.Variableleasepaymentsthatarenotincludedintheleasereceiptsareincludedinthecurrentprofitandlosswhentheyactuallyoccur.
(2)AccountingtreatmentoffinanceleasingOnthestartdateofthelease,thecompanyrecognizesthefinanceleasereceivablesforthefinanceleaseandterminatestherecognitionofthefinanceleaseassets.Whenthecompanyinitiallymeasuresthefinanceleasereceivables,thenetleaseinvestmentistakenastheentryvalueofthefinancialleasereceivables.Thenetleaseinvestmentisthesumoftheunguaranteedresidualvalueandthepresentvalueoftheleasepaymentnotyetreceivedatthebeginningoftheleaseterm,discountedattheinterestrateimplicitinthelease.Thecompanycalculatesandrecognizestheinterestincomeforeachperiodoftheleasetermbasedonafixedperiodicinterestrate.Thederecognitionandimpairmentoffinanceleasereceivablesshallbeaccountedforinaccordancewith"3.(10)FinancialInstruments"inthisNote.Variableleasepaymentsthatarenotincludedinthemeasurementofthenetleaseinvestment
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areincludedinthecurrentprofitorlosswhentheyactuallyoccur.Alessorshallaccountforamodificationtoafinanceleaseasaseparateleaseifboth:
?Themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormoreunderlyingassets;?Theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alonepricefortheincreaseinscopeandanyappropriateadjustmentstothatstand-alonepricetoreflectthecircumstancesoftheparticularcontract.Foramodificationtoafinanceleasethatisnotaccountedforasaseparatelease,alessorshallaccountforthemodificationasfollows:
?Iftheleasewouldhavebeenclassifiedasanoperatingleasehadthemodificationbeenineffectattheinceptiondate,thelessorshallaccountfortheleasemodificationasanewleasefromtheeffectivedateofthemodification;andmeasurethecarryingamountoftheunderlyingassetsasthenetinvestmentintheleaseimmediatelybeforetheeffectivedateoftheleasemodification.?Ifthechangetakeseffectontheleasestartdate,theleasewillbeclassifiedasafinanciallease,andthecompanywillperformaccountingtreatmentinaccordancewiththepolicyof“3.(10)FinancialInstruments”inthisNoteonthemodificationorre-negotiationofthecontract.
3.SaleandleasebacktransactionThecompanyevaluatesanddetermineswhethertheassettransferinthesaleandleasebacktransactionisasaleinaccordancewiththeprinciplesdescribedin"3.(23)Revenue"ofthisNote.
(1)AsthelesseeIfthetransferofanassetinthesaleandleasebacktransactionisasale,thecompanyasthelesseemeasurestheright-of-useassetarisingfromtheleasebackattheproportionofthepreviouscarryingamountoftheassetthatrelatestotheright-of-useretainedbythelesseeandrecognizeonlytheamountofanygainorlossthatrelatestotherightstransferredtothelessor.Fordetailsonthesubsequentmeasurementofright-of-useassetsandleaseliabilitiesandleasechangesafterthecommencementdateoftheleaseterm,pleaserefertoNoteIII.(27)Leases1.TheCompanyasLessee.Whensubsequentlymeasuringtheleaseliabilitiesarisingfromasaleandleaseback,theCompanydeterminestheleasepaymentsorthemodifiedleasepaymentsinamannerthatdoesnotresultintherecognitionofgainsorlossesrelatedtothe
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rightofuseacquiredthroughtheleaseback.Iftheassettransferinthesaleandleasebacktransactiondoesnotbelongtothesale,thecompanyasthelesseecontinuestorecognizethetransferredassetsandatthesametimerecognizeafinancialliabilityequaltothetransferproceeds.Fortheaccountingtreatmentoffinancialliabilities,pleasereferto"3.(10)FinancialInstruments"inthisnote.
(2)AsalessorIftheassettransferinthesaleandleasebacktransactionisasale,thecompanyactsasthelessortoaccountforthepurchaseoftheasset,andtheassetleaseisaccountedforinaccordancewiththeaforementioned"2.Thecompanyasthelessor"policy;inthesaleandleasebacktransactionIfthetransferofassetsisnotasale,thecompanyasthelessordoesnotrecognizethetransferredassets,butrecognizesafinancialassetequaltothetransferproceeds.Fortheaccountingtreatmentoffinancialassets,pleasereferto"3.(10)FinancialInstruments"inthisnote.
(28)Debtrestructuring
1.ThecompanyasthecreditorTheCompanyterminatestherecognitionofclaimswhenthecontractualrighttocollectcashflowsfromtheclaimsterminates.Ifdebtisrestructuredbyusingassetstopayoffdebtsorbyconvertingdebtsintoequityinstruments,thecompanywillrecognizetherelevantassetswhentheymeettheirdefinitionandrecognitionconditions.Ifdebtrestructuringiscarriedoutbyrepayingdebtswithassets,thetransferrednon-financialassetsshallbemeasuredatcostatinitialrecognition.Thecostofinventoriesincludesthefairvalueofwaivedclaimsandothercostsdirectlyattributabletotheassetincurredinbringingtheassettoitspresentlocationandcondition,suchastaxes,transportation,handlingcharges,insurance,etc.Thecostofaninvestmentinanassociateorjointventureincludesthefairvalueofwaivedclaimsandothercostssuchastaxesdirectlyattributabletotheasset.Thecostofinvestmentpropertyincludesthefairvalueofclaimsrelinquishedandothercostssuchastaxesdirectlyattributabletotheasset.Thecostoffixedassetsincludesthefairvalueofwaivedclaimsandothercostsdirectlyattributabletotheassetincurredbeforetheassetisreadyforitsintendeduse,suchastaxes,transportationcosts,handlingcharges,installationcosts,professionalservicefees,etc.Thecostofbiologicalassetsincludesthefairvalueofwaivedclaimsandothercostsdirectlyattributabletotheasset,suchastaxes,transportationcosts,insurancepremiums,etc.Thecostofanintangibleassetincludesthefairvalueofclaimswaivedandothercosts,suchastaxes,thataredirectlyattributabletobringingthe
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assettoitsintendeduse.Ifadebtrestructuringbyconvertingdebtintoequityinstrumentsresultsinthecreditorconvertingitsclaimsintoequityinvestmentsinassociatesorjointventures,theCompanymeasuresitsinitialinvestmentcostatthefairvalueoftheclaimswaivedandothercostssuchastaxesdirectlyattributabletotheasset.Thedifferencebetweenthefairvalueandthebookvalueofthewaivedclaimsisincludedinthecurrentprofitandloss.Ifthedebtrestructuringiscarriedoutbymodifyingotherterms,theCompanyshallrecognizeandmeasuretherestructuredclaimsinaccordancewith"III.(10)FinancialInstruments"ofthisNote.Whenmultipleassetsareusedtosettledebtsorfordebtrestructuring,theCompanyshallfirstrecognizeandmeasurethefinancialassetsacquiredandtherestructuredclaimsinaccordancewithNoteIII.(10)FinancialInstruments.Itshallthenallocatethenetamountofthefairvalueofthewaivedclaimsafterdeductingtherecognizedamountsoftheacquiredfinancialassetsandtherestructuredclaimsinaccordancewiththefairvalueratioofthevariousassetsotherthantheacquiredfinancialassets,andonthisbasis,determinethecostofeachassetseparatelyinaccordancewiththeabovemethod.Thedifferencebetweenthefairvalueandthecarryingamountofthewaivedclaimshouldbeincludedinthecurrentprofitandloss.
2.ThecompanyasthedebtorTheCompanyderecognizesadebtwhenthepresentobligationforthedebtisdischarged.Ifdebtrestructuringiscarriedoutbysettlingdebtswithassets,theCompanyshallterminatetherecognitionwhentherelevantassetsandthedebtssettledmeettheconditionsforterminationofrecognition,andthedifferencebetweenthebookvalueofthedebtssettledandthebookvalueofthetransferredassetsshallbeincludedinthecurrentprofitandloss.Incaseofdebtrestructuringbyconvertingdebtintoequityinstruments,theCompanyshallderecognizethedebtspaidwhentheymeetthederecognitionconditions.Equityinstrumentshallbemeasuredatfairvalueatinitialrecognition.Ifthefairvalueofanequityinstrumentcannotbemeasuredreliably,itismeasuredatthefairvalueofthedebtsettled.Thedifferencebetweenthecarryingamountofthedebtsettledandtheamountrecognizedasanequityinstrumentshouldberecognizedinthecurrentperiod'sprofitorloss.Ifdebtrestructuringiscarriedoutbymodifyingotherterms,theCompanyshallrecognizeandmeasuretherestructureddebtinaccordancewith“III.(10)FinancialInstruments”ofthisNote.Ifmultipleassetsareusedtorepaydebtsoracombinationisusedtorestructuredebt,thecompanyshallconfirmandmeasureequityinstrumentsandrestructureddebtsinaccordance
NotestothefinancialstatementsPage43
withtheaforementionedmethods.Thedifferencebetweenthecarryingamountofthedebtsettledandthesumofthecarryingamountofthetransferredassetsandtherecognizedamountoftheequityinstrumentsandrestructureddebtsisincludedinthecurrentperiod'sprofitandloss.
(29)Majoraccountingestimatesandjudgments
Whenpreparingfinancialstatements,theCompany'smanagementneedstouseestimatesandassumptions,whichwillaffecttheapplicationofaccountingpoliciesandtheamountofassets,liabilities,incomeandexpenses.Actualconditionsmaydifferfromtheseestimates.Themanagementofthecompanycontinuouslyevaluatesthejudgmentofkeyassumptionsanduncertaintiesinvolvedintheestimation,andtheimpactofchangesinaccountingestimateswillberecognizedinthecurrentandfutureperiods.Themainuncertaintiesintheestimatedamountareasfollows:
1.MeasurementofexpectedcreditlossesThecompanycalculatestheexpectedcreditlossthroughthedefaultriskexposureandtheexpectedcreditlossrate,anddeterminestheexpectedcreditlossratebasedonthedefaultprobabilityandthedefaultlossrate.Whendeterminingtheexpectedcreditlossrate,thecompanyusesinternalhistoricalcreditlossexperienceandotherdata,andadjuststhehistoricaldataincombinationwithcurrentconditionsandforward-lookinginformation.Whenconsideringforward-lookinginformation,theindicatorsusedbytheCompanyincludetheriskofeconomicfluctuation,theexpectedincreaseinunemploymentrate,changesintheexternalmarketenvironment,technologicalenvironmentandcustomerconditions.TheCompanyregularlymonitorsandreviewsassumptionsrelatedtothecalculationofexpectedcreditlosses.
2.InventoryImpairmentAsmentionedinnote3(11)Inventoryunder“3Significantaccountingpoliciesandaccountingestimates”,theCompanyregularlyestimatesthenetrealizablevalueoftheinventory,andrecognizesthedifferenceininventorycosthigherthanthenetrealizablevalue.Whenestimatingthenetrealizablevalueofinventory,theCompanyconsidersthepurposeofholdingtheinventoryandusestheavailableinformationasthebasisforestimation,includingthemarketpriceoftheinventoryandtheCompany'spastoperatingcosts.Theactualsellingprice,completioncost,salesexpensesandtaxesoftheinventorymaychangeaccordingtochangesinmarketsalesconditions,productiontechnology,ortheactualuseoftheinventory.Therefore,theamountofinventorydepreciationreservemay
NotestothefinancialstatementsPage44
changeaccordingtotheabovereasons.Adjustmentstotheinventoryimpairmentwillaffectthecurrentprofitandloss.
3.ImpairmentofotherassetsexceptinventoryandfinancialassetsAsmentionedinnote3(18)Long-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.DepreciationandamortizationofassetssuchasfixedassetsandintangibleassetsAsdescribedinnote3(14)FixedAssetsandnote3(17)IntangibleAssets,thecompanyshallaccruedepreciationforthefixedassetsandamortizationforintangibleassetswithintheusefullifeafterconsideringtheirresidualvalue.Thecompanyregularlyreviewstheusefullifeofrelatedassetstodeterminetheamountofdepreciationandamortizationexpensestobeincludedineachreportingperiod.Theusefullifeofassetsisdeterminedbythecompanybasedonpastexperiencewithsimilarassetsandincombinationwithanticipatedtechnologicalchanges.Ifthepreviousestimateschangesignificantly,thedepreciationandamortizationexpenseswillbeadjustedinthefuture.
5.DeferredtaxassetsWhenitisestimatedthatsufficienttaxableincomecanbeobtainedinthefuturetousetheunrecoveredtaxlossesanddeductibletemporarydifferences,therelevantdeferredtaxassetsarecalculatedandconfirmedonthebasisoftheapplicableincometaxrateduringtheperiodwhentheassetisexpectedtoberecoveredandtheamountoftaxableincomeis
NotestothefinancialstatementsPage45
limitedtodeductibletaxlossesanddeductibletemporarydifferenceslikelytobeobtainedbytheCompany.TheCompanyneedstousejudgmenttoestimatethetimeandamountoffuturetaxableincome,andmakereasonableestimatesandjudgmentsonthefutureapplicableincometaxrateaccordingtothecurrenttaxpolicyandotherrelatedpoliciestodeterminethedeferredtaxassetsthatshouldberecognized.Ifthetimeandamountofprofitsactuallygeneratedinthefutureperiodortheactualapplicableincometaxratearedifferentfromthemanagement'sestimate,thedifferencewillhaveanimpactontheamountofdeferredtaxassets.
(30)Methodsfordeterminingmaterialitystandardsandbasisforselection
| Items | MaterialityStandards |
| MaterialAccountsreceivable | ThecompanyconsidersaccountsreceivableexceedingRMB5millionasmaterialaccountsreceivable. |
| MaterialAccountspayable | ThecompanyconsidersaccountspayableexceedingRMB5millionasmaterialaccountspayable. |
| MaterialOtherpayables | ThecompanyconsidersotherpayablesexceedingRMB5millionasmaterialotherpayables. |
| MaterialConstructioninprogress | Thecompanyconsidersthetop10projectstransferredtofixedassetsduringthecurrentperiodorthetop10projectswithabalanceattheendoftheperiodandatotalamountexceedingRMB50millionasmaterialconstructioninprogress. |
| MaterialJointventuresandassociates | ThecompanyconsidersinvestmentsinjointventuresorassociatedenterpriseswithanendingbalanceofmorethanRMB100millionasmaterialjointventuresorassociatedenterprises. |
| MaterialSubsidiaries | Subsidiarieswhosetotalassets/totalrevenue/totalprofitexceed15%ofthegroup'stotalassets/totalrevenue/totalprofitareconsideredasmaterialsubsidiaries. |
(31)Changeofsignificantaccountingpolicyandaccountingestimate
1.ChangeofmajoraccountingpolicyduringthisreportingperiodThereisnochangeofmajoraccountingpolicyduringthereportingperiod.
2.ChangeofaccountingestimateduringthereportingperiodThereisnosignificantchangesinaccountingestimatesduringthereportingperiod.
4.Taxes
(1)Majortypeoftaxesandcorrespondingtaxrates
| Tax | TaxationMethod | TaxRate |
| Value-addedTax(VAT) | Theoutputtaxiscalculatedbasedonthesalesofgoodsandtaxableservicescalculatedinaccordancewiththetaxlaw.Afterdeductingtheinputtaxthatisallowedtobedeductedinthecurrent | 6%,9%,13% |
NotestothefinancialstatementsPage46
| period,thedifferenceisthevalue-addedtaxpayable. | ||
| Citymaintenanceandconstructiontax | BasedonVATandbusinesstaxactuallypaid | 5%,7% |
| Corporateincometax | Basedontaxableincome | Seethetablebelowfordetails |
Notestotaxpayerswithdifferentcorporateincometaxrates:
| Nameofthetaxpayers | Incometaxrate(%) |
| BengangSteelPlatesCo.,Ltd | 15 |
| ShanghaiBengangMetallurgyScienceandTechnologyCo.,Ltd. | 25 |
| BenxiBengangSteelSalesCo.,Ltd. | 25 |
| BengangPoscoCold-rolledSheetCo.,Ltd. | 15 |
| TianjinBengangSteel&IronTradingCo.,Ltd. | 25 |
| ChangchunBengangSteel&IronSalesCo.,Ltd. | 25 |
| YantaiBengangSteel&IronSalesCo.,Ltd. | 25 |
| GuangzhouBengangSteel&IronTradingCo.,Ltd. | 25 |
| DalianBenruitongAutomobileMaterialTechnologyCo.,Ltd. | 25 |
| ShenyangBengangMetallurgicalScienceandTechnologyCo.,Ltd. | 25 |
| NorthernHengdaLogisticsCo.,Ltd. | 25 |
| GreenGold(Benxi)RenewableResourcesCo.,Ltd. | 25 |
(2)TaxPreference
1.ThecompanyhasobtainedaHigh-TechEnterpriseCertificate,certificatenumber:
GR202421001555,validfromNovember27,2024toNovember27,2027.Thecompanyissubjecttoareducedcorporateincometaxrateof15%.
2.BengangPoscoCold-RolledSheetCo.,Ltd.,thesubsidiaryoftheCompanyhasobtainedtheHigh-techEnterpriseCertificate,certificatenumber:GR202321001624;validfromDecember20,2023toDecember20,2026.BenxiSteelPoscoCold-RolledSheetCo.,Ltd.payscorporateincometaxatareducedtaxrateof15%.
3.OnDecember30,2021,theMinistryofFinanceandtheStateAdministrationofTaxationissuedthe"AnnouncementonImprovingtheValue-AddedTaxPolicyforComprehensiveUtilizationofResources"(AnnouncementNo.40oftheMinistryofFinanceandtheStateAdministrationofTaxationin2021).TheannouncementtookeffectonMarch1,2022.The
NotestothefinancialstatementsPage47
original"NoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationonIssuingthe"CatalogueofValue-AddedTaxPreferentialPoliciesforComprehensiveUtilizationofResourcesProductsandServices"(FinanceandTaxation[2015]No.78)wasabolishedatthesametimeexceptfor"technicalstandardsandrelatedconditions".TheelectricityandheatproducedandsoldbytheEnergyDevelopmentBranchofBenxiIronandSteelCo.,Ltd.,abranchoftheCompany,areitemslistedinthe"CatalogueofValue-AddedTaxPreferentialTermsforComprehensiveResourceUtilizationProductsandServices"andenjoythevalue-addedtaxrefundpolicy.
4.OnSeptember3,2023,theMinistryofFinanceandtheStateAdministrationofTaxationissuedthe"AnnouncementontheVATAdditionalDeductionPolicyforAdvancedManufacturingEnterprises"(AnnouncementNo.43oftheMinistryofFinanceandtheStateAdministrationofTaxationin2023).FromJanuary1,2023toDecember31,2027,thisannouncementallowsadvancedmanufacturingenterprisestodeductthepayableVATbyadding5%tothecurrentdeductibleinputtax.BengangPoscoCold-RolledSheetCo.,Ltd.,asubsidiaryoftheCompany,belongstotheadvancedmanufacturingindustryandenjoystheVATadditionaldeductionpolicy.
NotestothefinancialstatementsPage48
5.Notestotheconsolidatedfinancialstatements
(1)Cashatbankandonhand
| Items | 2025/06/30 | 2024/12/31 |
| Cashonhand | ||
| DigitalCurrency | ||
| Cashatbank | 880,662,131.03 | 363,006,448.43 |
| Othermonetaryfunds | 1,001,459,617.18 | 863,683,251.57 |
| Fundsplacedinafinancecompanyaccount | 237,849,896.52 | 1,227,198,770.48 |
| Total | 2,119,971,644.73 | 2,453,888,470.48 |
| Including：Totalamountdepositedabroad | ||
| Fundsdepositedoverseaswithrestrictionsonrepatriation |
Notes:Asat30June2025,bankacceptancedepositofRMB1,001,459,617.18wasnotrecognizedascashandcashequivalentsinthecashflowstatement.
(2)Notesreceivable
1.Notesreceivabledisclosedbycategory
| Items | 2025/06/30 | 2024/12/31 |
| Bankacceptancebill | 114,107,007.89 | 241,529,481.42 |
| Commercialacceptancebill | 306,676,013.34 | 365,750,000.00 |
| Total | 420,783,021.23 | 607,279,481.42 |
NotestothefinancialstatementsPage49
2.Notesreceivabledisclosedbybaddebtaccrualmethod
| Items | 2025/06/30 | 2024/12/31 | ||||||||
| Carryingamount | Provisionforbaddebts | Bookvalue | Carryingamount | Provisionforbaddebts | Bookvalue | |||||
| Amount | Percentage(%) | Amount | Baddebtsratio(%) | Amount | Percentage(%) | Amount | Baddebtsratio(%) | |||
| Provisionforbaddebtsindividually | ||||||||||
| Provisionforbaddebtsbasedonportfolioofcreditriskcharacteristics | 420,783,021.23 | 100.00 | 420,783,021.23 | 607,279,481.42 | 100.00 | 607,279,481.42 | ||||
| Total | 420,783,021.23 | 100.00 | 420,783,021.23 | 607,279,481.42 | 100.00 | 607,279,481.42 | ||||
NotestothefinancialstatementsPage50
ProvisionforbaddebtsbasedonportfolioofcreditriskcharacteristicsPortfolioitems:
| Items | 2025/06/30 | ||
| Notesreceivable | Provisionforbaddebts | Baddebtsratio(%) | |
| Commercialacceptancebill | 306,676,013.34 | ||
| Bankacceptancebill | 114,107,007.89 | ||
| Total | 420,783,021.23 | ||
3.Thepledgedacceptancebill
| Items | Notesreceivablepledgedattheendofperiod |
| Bankacceptancebill | 67,041,187.99 |
| Commercialacceptancebill | |
| Total | 67,041,187.99 |
4.Theamountofnotesreceivableendorsedoverordiscountedbutnotyetmatured
| Items | Amountterminatedattheendoftheperiod | Amountwasnotterminatedattheendoftheperiod |
| Bankacceptancebill | 4,517,795,874.04 | 5,065,819.90 |
| Commercialacceptancebill | 306,676,013.34 | |
| Total | 4,517,795,874.04 | 311,741,833.24 |
(3)Accountsreceivable
1.Accountsreceivabledisclosedbyaging
| Items | 2025/06/30 | 2024/12/31 |
| Within1year(inclusive) | 930,029,176.10 | 478,210,867.53 |
| 1-2years(inclusive) | 9,502,894.65 | 5,786,445.58 |
| 2-3years(inclusive) | 4,952,094.14 | 28,559,402.34 |
| 3-4years(inclusive) | 28,559,318.54 | 557,413.41 |
| 4-5years(inclusive) | 556,497.21 | 5,592,931.88 |
| over5years | 374,102,284.68 | 379,435,859.17 |
NotestothefinancialstatementsPage51
| Items | 2025/06/30 | 2024/12/31 |
| Subtotal | 1,347,702,265.32 | 898,142,919.91 |
| Less:Provisionforbaddebts | 414,459,100.51 | 396,658,838.18 |
| Total | 933,243,164.81 | 501,484,081.73 |
NotestothefinancialstatementsPage52
2.Accountsreceivabledisclosedbythebaddebtaccrualmethod
| Items | 2025/06/30 | 2024/12/31 | ||||||||
| Grosscarryingamount | Provisionforbaddebts | Bookvalue | Grosscarryingamount | Provisionforbaddebts | Bookvalue | |||||
| Amount | Percentage(%) | Amount | Baddebtsratio(%) | Amount | Percentage(%) | Amount | Percentage(%) | |||
| Testedforimpairmentindividually | 324,142,239.74 | 24.05 | 324,142,239.74 | 100.00 | 334,963,124.35 | 37.30 | 334,963,124.35 | 100.00 | ||
| Testedforimpairmentbyportfolio | 1,023,560,025.58 | 75.95 | 90,316,860.77 | 8.82 | 933,243,164.81 | 563,179,795.56 | 62.70 | 61,695,713.83 | 10.95 | 501,484,081.73 |
| Include: | ||||||||||
| Agingportfolio | 1,023,560,025.58 | 75.95 | 90,316,860.77 | 8.82 | 933,243,164.81 | 563,179,795.56 | 62.70 | 61,695,713.83 | 10.95 | 501,484,081.73 |
| Risk-freeportfolio | ||||||||||
NotestothefinancialstatementsPage53
| Items | 2025/06/30 | 2024/12/31 | ||||||||
| Grosscarryingamount | Provisionforbaddebts | Bookvalue | Grosscarryingamount | Provisionforbaddebts | Bookvalue | |||||
| Amount | Percentage(%) | Amount | Baddebtsratio(%) | Amount | Percentage(%) | Amount | Percentage(%) | |||
| Total | 1,347,702,265.32 | 100.00 | 414,459,100.51 | 933,243,164.81 | 898,142,919.91 | 100.00 | 396,658,838.18 | 501,484,081.73 | ||
NotestothefinancialstatementsPage54
Significantaccountsreceivablestestedforimpairmentindividually:
| Company | 2025/06/30 | 2024/12/31 | ||||
| Carryingamount | Provisionforbaddebts | Baddebtsratio(%) | Reason | Carryingamount | Provisionforbaddebts | |
| BenxiNanfenXinheMetallurgicalFurnaceMaterialCo.,Ltd | 48,196,244.68 | 48,196,244.68 | 100.00 | Discontinued | 48,196,244.68 | 48,196,244.68 |
| BrillianceAutomotiveGroupHoldingsCo.,Ltd. | 275,945,995.06 | 275,945,995.06 | 100.00 | Bankruptcy | 286,766,879.67 | 286,766,879.67 |
| Total | 324,142,239.74 | 324,142,239.74 | 334,963,124.35 | 334,963,124.35 | ||
ProvisionforbaddebtsbasedonportfolioofcreditriskcharacteristicsProvisionforbaddebtsbyportfolio:Aginganalysis
| Items | 2025/06/30 | ||
| AccountReceivable | Provisionforbaddebts | Baddebtratio（%） | |
| Within1year(inclusive) | 930,029,176.10 | 9,300,291.79 | 1.00 |
| 1-2years(inclusive) | 9,502,894.65 | 950,289.47 | 10.00 |
| 2-3years(inclusive) | 4,952,094.14 | 990,418.82 | 20.00 |
| 3-4years(inclusive) | 28,559,318.54 | 28,559,318.54 | 100.00 |
| 4-5years(inclusive) | 556,497.21 | 556,497.21 | 100.00 |
| over5years | 49,960,044.94 | 49,960,044.94 | 100.00 |
| Total | 1,023,560,025.58 | 90,316,860.77 | |
3.Theprovisionforbaddebtsaccrued,reversedorrecoveredinthecurrentperiod
| Items | 2024/12/31 | Changesduringthecurrentperiod | 2025/06/30 |
NotestothefinancialstatementsPage55
| Accrued | Reversedorrecovered | Write-offorWrite-back | Otherchanges | |||
| Provisionforbaddebts | 396,658,838.18 | 28,621,146.94 | 10,820,884.61 | 414,459,100.51 | ||
| Total | 396,658,838.18 | 28,621,146.94 | 10,820,884.61 | 414,459,100.51 |
Significantamountofbaddebtprovisionrecoveredorreversedduringtheperiod:
| Company | Reversedorrecoveredamount | Reason | Recoveredmethod | Basisfordeterminingtheoriginalbaddebtprovisionanditsreasonableness |
| BrillianceAutomotiveGroupHoldingsCo.,Ltd. | 10,820,884.61 | Repayment | Bankdeposit | Debtrestructuringagreements |
| Total | 10,820,884.61 |
4.Topfivedebtorsandcontractassetsattheendoftheperiod
| Company | Accountsreceivableatperiodend | Contractassetsatperiodend | Total | Percentage(%)toTotalamount | Provisionforbaddebts |
| AngangGroupInternationalEconomic&TradeCo.,Ltd.BenxiBranch | 579,141,895.93 | 579,141,895.93 | 42.97 | 5,791,418.96 | |
| BrillianceAutomotiveGroupHoldingsLimited | 275,945,995.06 | 275,945,995.06 | 20.48 | 275,945,995.06 | |
| BenxiBeiying | 65,344,301.60 | 65,344,301.60 | 4.85 | 653,443.02 |
NotestothefinancialstatementsPage56
| Company | Accountsreceivableatperiodend | Contractassetsatperiodend | Total | Percentage(%)toTotalamount | Provisionforbaddebts |
| IronandSteel(Group)Co.,Ltd. | |||||
| LiaoningNorthCoalChemicalIndustry(Group)Co.,Ltd. | 56,241,715.67 | 56,241,715.67 | 4.17 | 5,241,185.70 | |
| BengangRefractoriesCo.,Ltd. | 48,439,238.13 | 48,439,238.13 | 3.59 | 27,525,071.75 | |
| Total | 1,025,113,146.39 | 1,025,113,146.39 | 76.06 | 315,157,114.49 |
(4)Accountsreceivablefinancing
1.Accountsreceivablefinancingbycategory
| Items | 2025/06/30 | 2024/12/31 |
| NotesReceivable | 5,552,656.65 | 64,399,942.70 |
| AccountsReceivable | ||
| Total | 5,552,656.65 | 64,399,942.70 |
NotestothefinancialstatementsPage57
(5)Prepayments
1.Prepaymentsdisclosedbyaging
| Aging | 2025/06/30 | 2024/12/31 | ||
| Amount | Percentage(%) | Amount | Percentage(%) | |
| Within1year(inclusive) | 758,650,468.46 | 92.40 | 370,426,337.83 | 94.54 |
| 1-2years(inclusive) | 51,733,521.39 | 6.30 | 8,643,434.04 | 2.21 |
| 2-3years(inclusive) | 7,616,027.07 | 0.93 | 10,372,837.63 | 2.65 |
| Over3years | 3,032,048.37 | 0.37 | 2,380,526.37 | 0.61 |
| Total | 821,032,065.29 | 100.00 | 391,823,135.87 | 100.00 |
Notes:Therewerenooutstandingprepaymentsover1year.
2.Topfiveprepaidcompaniesattheendoftheperiod
| Nameofthecompany | Endingbalance | Percentage(%) |
| AngangGroupInternationalEconomic&TradeCo.,Ltd.BenxiBranch | 386,757,348.18 | 47.11 |
| ChinaRailwayShenyangBureauGroupCo.,Ltd.ShenyangRailwayLogisticsCenter | 64,189,262.35 | 7.82 |
| ShanxiCokingCoalEnergyGroupCo.,Ltd. | 62,812,041.38 | 7.65 |
| HangzhouHangyangAirSeparationSparePartsCo.,Ltd. | 56,204,279.00 | 6.85 |
| StateGridLiaoningElectricPowerCo.,Ltd.BenxiPowerSupplyCompany | 50,000,000.00 | 6.09 |
| Total | 619,962,930.91 | 75.52 |
(6)Otherreceivables
| Items | 2025/06/30 | 2024/12/31 |
| Interestreceivables | ||
| Dividendreceivables |
NotestothefinancialstatementsPage58
| Items | 2025/06/30 | 2024/12/31 |
| Otherreceivables | 16,354,769.47 | 149,015,138.26 |
| Total | 16,354,769.47 | 149,015,138.26 |
1.Otherreceivables
(1)Otherreceivablesdisclosedbyaging
| Items | 2025/06/30 | 2024/12/31 |
| Within1year(inclusive) | 2,389,539.78 | 58,452,918.98 |
| 1-2years(inclusive) | 2,612,106.55 | 91,693,078.45 |
| 2-3years(inclusive) | 16,979,176.66 | 13,520,953.62 |
| 3-4years(inclusive) | 784,068.83 | 3,962,574.01 |
| 4-5years(inclusive) | 3,717,335.08 | 842,882.51 |
| over5years | 52,979,511.11 | 52,141,851.60 |
| Subtotal | 79,461,738.01 | 220,614,259.17 |
| Less:Provisionforbaddebts | 63,106,968.54 | 71,599,120.91 |
| Total | 16,354,769.47 | 149,015,138.26 |
NotestothefinancialstatementsPage59
(2)Disclosedbybaddebtaccrualmethod
| Items | 2025/06/30 | 2024/12/31 | ||||||||
| Carryingamount | Provisionforbaddebts | Bookvalue | Carryingamount | Provisionforbaddebts | Bookvalue | |||||
| Amount | Percentage(%) | Amount | Baddebtsratio(%) | Amount | Percentage(%) | Amount | Baddebtsratio(%) | |||
| Provisionforbaddebtsindividually | 18,192,317.00 | 22.89 | 18,192,317.00 | 100.00 | 18,192,317.00 | 8.25 | 18,192,317.00 | 100.00 | ||
| Provisionforbaddebtsbasedonportfolioofcreditriskcharacteristic | 61,269,421.01 | 77.11 | 44,914,651.54 | 73.31 | 16,354,769.47 | 202,421,942.17 | 91.75 | 53,406,803.91 | 26.38 | 149,015,138.26 |
| Include: | ||||||||||
| Agingportfolio | 60,872,327.09 | 76.61 | 44,914,651.54 | 73.79 | 15,957,675.55 | 202,194,971.97 | 91.65 | 53,406,803.91 | 26.41 | 148,788,168.06 |
| Risk-freeportfolio | 397,093.92 | 0.50 | 397,093.92 | 226,970.20 | 0.10 | 226,970.20 | ||||
| Total | 79,461,738.01 | 100.00 | 63,106,968.54 | 16,354,769.47 | 220,614,259.17 | 100.00 | 71,599,120.91 | 149,015,138.26 | ||
NotestothefinancialstatementsPage60
Significantotherreceivablestestedforimpairmentindividually:
| Company | 2025/06/30 | 2024/12/31 | ||||
| Carryingamount | Provisionforbaddebts | Baddebtsratio(%) | Reason | Carryingamount | Provisionforbaddebts | |
| BenxiIronandSteel(Group)No.3ArchitecturalEngineeringCo.,Ltd. | 12,504,978.59 | 12,504,978.59 | 100.00 | Discontinued | 12,504,978.59 | 12,504,978.59 |
| Total | 12,504,978.59 | 12,504,978.59 | 12,504,978.59 | 12,504,978.59 | ||
Provisionforbaddebtbyportfolioofcreditriskcharacteristics:
Portfolioaccrualitem:Agingportfolio
| Items | 2025/06/30 | ||
| Amount | Provisionforbaddebts | Percentage（%） | |
| Within1year(inclusive) | 2,025,134.70 | 20,251.35 | 1.00 |
| 1-2year(inclusive) | 2,579,417.71 | 257,941.77 | 10.00 |
| 2-3year(inclusive) | 14,539,145.32 | 2,907,829.06 | 20.00 |
| 3-4year(inclusive) | 784,068.83 | 784,068.83 | 100.00 |
| 4-5year(inclusive) | 3,072,337.08 | 3,072,337.08 | 100.00 |
| Aver5years | 37,872,223.45 | 37,872,223.45 | 100.00 |
| Total | 60,872,327.09 | 44,914,651.54 | |
(3)Informationofprovisionforbaddebts
| Provisionforbaddebts | Stageone | Stagetwo | Stagethree | Total |
NotestothefinancialstatementsPage61
| 12-monthexpectedcreditlosses | lifetimeexpectedcreditlosses(creditimpairmenthasnotoccurred) | lifetimeexpectedcreditlosses(creditimpairmenthasalreadyoccurred) | ||
| Balanceattheendofthepreviousyear | 582,286.02 | 11,629,495.43 | 59,387,339.46 | 71,599,120.91 |
| Beginningbalanceduringcurrentperiod | ||||
| --Transfertothesecondstage | -515,883.54 | 515,883.54 | ||
| --Transfertothethirdstage | -784,068.83 | 784,068.83 | ||
| --Write-backtothesecondstage | ||||
| --Write-backtothefirststage | ||||
| Accrualforthecurrentperiod | -46,151.13 | -8,195,539.31 | -250,461.93 | -8,492,152.37 |
| Reversalduringthecurrentperiod | ||||
| Write-backofthecurrentperiod | ||||
| Write-offduringthecurrentperiod | ||||
| Otherchanges | ||||
| Endingbalance | 20,251.35 | 3,165,770.83 | 59,920,946.36 | 63,106,968.54 |
(4)Informationofprovision,reversalorrecoveryofbaddebtsofcurrentperiod
| Items | 2024/12/31 | Changesduringthecurrentperiod | 2025/06/30 | |||
| Accrual | Reversalorrecovered | Write-backorwrite-off | Others | |||
| Baddebtprovisionforotherreceivables | 71,599,120.91 | -8,492,152.37 | 63,106,968.54 | |||
| Total | 71,599,120.91 | -8,492,152.37 | 63,106,968.54 | |||
(5)Otherreceivablesdisclosedbynature
| Nature | 2025/06/30 | 2024/12/31 |
| Compensationforthe“LivingShowBelt”project | 87,177,700.00 |
NotestothefinancialstatementsPage62
| Nature | 2025/06/30 | 2024/12/31 |
| CurrentAccount | 76,304,976.38 | 130,478,649.66 |
| Others | 3,156,761.63 | 2,957,909.51 |
| Total | 79,461,738.01 | 220,614,259.17 |
(6)Topfiveotherreceivablesattheendoftheperiod
| Company | Natureorcontent | Amount | Aging | Percentageoftotalotherreceivables(%) | Provisionforbaddebtsat2025/06/30 |
| BenxiIronandSteel(Group)No.3ArchitecturalEngineeringCo.,Ltd. | CurrentAccount | 12,504,978.59 | 4-5years,over5years | 15.74 | 12,504,978.59 |
| BenxiIronandSteel(Group)No.1ArchitecturalEngineeringCo.,Ltd. | CurrentAccount | 3,247,307.07 | over5years | 4.09 | 3,247,307.07 |
| BenxiIron&Steel(Group)Co.,Ltd.. | CurrentAccount | 2,674,500.00 | 1-2years,2-3years | 3.37 | 413,000.00 |
| LiaoningHuaweiCoalPreparationCo.,Ltd. | CurrentAccount | 2,261,360.00 | over5years | 2.85 | 2,261,360.00 |
| BenxiGanglianSlagCo.,Ltd. | CurrentAccount | 1,916,960.24 | 3-4years4-5years,over5years | 2.41 | 1,916,960.24 |
| Total | 22,605,105.90 | 28.46 | 20,343,605.90 |
NotestothefinancialstatementsPage63
(7)Inventories
1.Inventoriesdisclosedbycategory
| Items | 2025/06/30 | 2024/12/31 | ||||
| Grosscarryingamount | Inventoryimpairment/Impairmentofcontractfulfillmentcosts | Bookvalue | Grosscarryingamount | Inventoryimpairment/Impairmentofcontractfulfillmentcosts | Bookvalue | |
| Rawmaterial | 4,273,091,213.39 | 210,474,517.51 | 4,062,616,695.88 | 4,300,063,154.21 | 247,221,306.73 | 4,052,841,847.48 |
| Workinprogress | 1,887,888,280.15 | 39,066,684.19 | 1,848,821,595.96 | 2,001,147,780.74 | 26,685,410.19 | 1,974,462,370.55 |
| Finishedgoods | 1,157,759,803.34 | 19,260,495.81 | 1,138,499,307.53 | 1,337,346,627.43 | 31,566,151.19 | 1,305,780,476.24 |
| Total | 7,318,739,296.88 | 268,801,697.51 | 7,049,937,599.37 | 7,638,557,562.38 | 305,472,868.11 | 7,333,084,694.27 |
2.Impairmentofinventoryandcontractfulfillmentcost
| Category | 2024/12/31 | Increase | Decrease | 2025/06/30 | ||
| Provision | Others | Write-backorwrite-off | Others | |||
| Rawmaterial | 247,221,306.73 | -36,746,789.22 | 210,474,517.51 | |||
NotestothefinancialstatementsPage64
| Category | 2024/12/31 | Increase | Decrease | 2025/06/30 | ||
| Provision | Others | Write-backorwrite-off | Others | |||
| Workinprogress | 26,685,410.19 | 12,381,274.00 | 39,066,684.19 | |||
| Finishedgoods | 31,566,151.19 | -12,305,655.38 | 19,260,495.81 | |||
| Total | 305,472,868.11 | -36,671,170.60 | 268,801,697.51 | |||
NotestothefinancialstatementsPage65
(8)Othercurrentassets
| Items | 2025/06/30 | 2024/12/31 |
| VATinputtax | 278,714,164.92 | 401,503,924.78 |
| Others | 81,415,483.63 | 35,577,335.88 |
| Total | 360,129,648.55 | 437,081,260.66 |
NotestothefinancialstatementsPage66
(9)Long-termequityinvestment
1.Long-termequityinvestment
| Investees | 2024/12/31 | Impairmentprovisionasof2024/12/31 | Increase/decrease | 2025/06/30 | Impairmentprovisionasof2025/06/30 | |||||||
| AdditionofInvestment | ReductionofInvestment | Incomeorlossoninvestmentrecognizedundertheequitymethod | OtherComprehensiveIncomeAdjustment | OtherEquityChanges | DeclarationofCashDividendsorProfit | Provision | Others | |||||
| 1.JointVenture | ||||||||||||
| Subtotal | ||||||||||||
| 2.AssociatedEnterprise | 45,413,221.72 | 45,413,221.72 | ||||||||||
| ShenyangXiangyuNewMaterialTechnology | 45,413,221.72 | 45,413,221.72 | ||||||||||
NotestothefinancialstatementsPage67
| Investees | 2024/12/31 | Impairmentprovisionasof2024/12/31 | Increase/decrease | 2025/06/30 | Impairmentprovisionasof2025/06/30 | |||||||
| AdditionofInvestment | ReductionofInvestment | Incomeorlossoninvestmentrecognizedundertheequitymethod | OtherComprehensiveIncomeAdjustment | OtherEquityChanges | DeclarationofCashDividendsorProfit | Provision | Others | |||||
| Co.,Ltd. | ||||||||||||
| Subtotal | 45,413,221.72 | 45,413,221.72 | ||||||||||
| Total | 45,413,221.72 | 45,413,221.72 | ||||||||||
NotestothefinancialstatementsPage68
(10)Otherequityinstrumentinvestment
1.Theinformationofotherequityinstrumentinvestment
| Items | 2025/06/30 | 2024/12/31 | Gainsrecognizedinothercomprehensiveincome | Lossesrecognizedinothercomprehensiveincome | Accumulatedgainsinothercomprehensiveincome | Accumulatedlossesinothercomprehensiveincome | Dividendincome | Reasonsfordesignationasatfairvaluethroughothercomprehensiveincome |
| SuzhouLongbenMetalMaterialsCo.Ltd. | 3,940,544.25 | 3,940,544.25 | 51,564.25 | |||||
| NortheastSpecialSteelGroupCo.,Ltd. | 929,485,710.38 | 929,485,710.38 | 108,250,138.62 | |||||
| SinosteelShanghaiSteelProcessingCo.,Ltd. | 14,414,693.00 | |||||||
| Total | 933,426,254.63 | 933,426,254.63 | 51,564.25 | 122,664,831.62 |
NotestothefinancialstatementsPage69
(11)Fixedassets
1.FixedassetsandDisposaloffixedassets
| Items | 2025/06/30 | 2024/12/31 |
| Fixedassets | 26,050,690,523.41 | 26,426,320,453.57 |
| Disposaloffixedassets | ||
| Total | 26,050,690,523.41 | 26,426,320,453.57 |
NotestothefinancialstatementsPage70
2.Detailsoffixedassets
| Items | Buildings | Machinery | Transportationequipmentandothers | Furnitureandofficeequipment | Total |
| 1．Grosscarryingamount | |||||
| （1）31December2024 | 14,262,023,176.62 | 52,705,897,283.61 | 400,985,732.35 | 242,916,091.60 | 67,611,822,284.18 |
| （2）Increaseincurrentperiod | 10,541,517.86 | 469,603,686.13 | 1,635,014.37 | 363,347.27 | 482,143,565.63 |
| —Including:Purchase | 1,958,197.73 | 475,557.53 | 2,433,755.26 | ||
| —Transferredfromconstructioninprogress | 10,541,517.86 | 467,645,488.40 | 1,159,456.84 | 363,347.27 | 479,709,810.37 |
| —Increaseincorporatemergers | |||||
| —Transferredfromsaleandleaseback | |||||
| —Others | |||||
| （3）Decreaseincurrentperiod | 37,774,604.42 | 203,597,429.13 | 11,443,407.48 | 252,815,441.03 | |
| —Including:Disposalorscrapped | 37,774,604.42 | 203,597,429.13 | 11,443,407.48 | 252,815,441.03 | |
| —transfertosaleandleaseback |
NotestothefinancialstatementsPage71
| Items | Buildings | Machinery | Transportationequipmentandothers | Furnitureandofficeequipment | Total |
| —Others | |||||
| （4）30June2025 | 14,234,790,090.06 | 52,971,903,540.61 | 391,177,339.24 | 243,279,438.87 | 67,841,150,408.78 |
| 2．Totalaccumulateddepreciation | |||||
| （1）31December2024 | 6,843,827,644.40 | 33,772,852,695.68 | 320,082,643.21 | 137,437,495.66 | 41,074,200,478.95 |
| （2）Increaseincurrentperiod | 121,452,679.21 | 681,517,928.15 | 5,527,218.35 | 17,337,579.61 | 825,835,405.32 |
| —Including:Provision | 121,452,679.21 | 681,517,928.15 | 5,527,218.35 | 17,337,579.61 | 825,835,405.32 |
| —Increaseincorporatemergers | |||||
| —Others | |||||
| （3）Decreaseincurrentperiod | 24,679,246.15 | 181,068,815.01 | 10,928,111.56 | 216,676,172.72 | |
| —Including:Disposalorscrapped | 24,679,246.15 | 181,068,815.01 | 10,928,111.56 | 216,676,172.72 | |
| —transfertosaleandleaseback | |||||
| —Others | |||||
| （4）30June2025 | 6,940,601,077.46 | 34,273,301,808.82 | 314,681,750.00 | 154,775,075.27 | 41,683,359,711.55 |
| 3．Totalimpairment | |||||
| （1）31December2024 | 83,249,691.92 | 28,051,659.74 | 111,301,351.66 |
NotestothefinancialstatementsPage72
| Items | Buildings | Machinery | Transportationequipmentandothers | Furnitureandofficeequipment | Total |
| （2）Increaseincurrentperiod | |||||
| —Including:Provision | |||||
| —Other | |||||
| （3）Decreaseincurrentperiod | 833,674.57 | 3,367,503.27 | 4,201,177.84 | ||
| —Including:Disposalorscrapped | 833,674.57 | 3,367,503.27 | 4,201,177.84 | ||
| （4）30June2025 | 82,416,017.35 | 24,684,156.47 | 107,100,173.82 | ||
| 4．Netbookvalue | |||||
| （1）30June2025 | 7,211,772,995.25 | 18,673,917,575.32 | 76,495,589.24 | 88,504,363.60 | 26,050,690,523.41 |
| （2）31December2024 | 7,334,945,840.30 | 18,904,992,928.19 | 80,903,089.14 | 105,478,595.94 | 26,426,320,453.57 |
NotestothefinancialstatementsPage73
3.TemporarilyidleFixedassets
| Items | Grosscarryingamount | Accumulateddepreciation | Impairment | Bookvalue | Note |
| Buildings | 112,751,517.87 | 68,351,097.47 | 41,943,853.74 | 2,456,566.66 | |
| Machinery | 3,034,473.01 | 2,434,878.60 | 75,666.43 | 523,927.98 | |
| Total | 115,785,990.88 | 70,785,976.07 | 42,019,520.17 | 2,980,494.64 |
4.Fixedassetsleasedoutbyoperatinglease
| Items | Amountasat2025/06/30 |
| Buildings | 21,322,330.90 |
| Machinery | 493,275.96 |
5.Fixedassetswithoutpropertyrightscertificatesattheendoftheperiod
| Items | Bookvalue | Reason |
| Buildings | 2,293,774,311.90 | Inprocess |
(12)Constructioninprogress
1.ConstructioninprogressandConstructionmaterials
| Items | 2025/06/30 | 2024/12/31 | ||||
| Grosscarryingamount | Totalimpairment | Bookvalue | Grosscarryingamount | Totalimpairment | Bookvalue | |
| Constructioninprogress | 4,537,418,033.00 | 4,537,418,033.00 | 3,934,442,501.50 | 3,934,442,501.50 | ||
| Projectmaterials | 102,000.00 | 102,000.00 | ||||
| Total | 4,537,520,033.00 | 4,537,520,033.00 | 3,934,442,501.50 | 3,934,442,501.50 | ||
2.Detailsofconstructioninprogress
NotestothefinancialstatementsPage74
| Items | 2025/06/30 | 2024/12/31 | ||||
| Grosscarryingamount | Totalimpairment | Bookvalue | Grosscarryingamount | Totalimpairment | Bookvalue | |
| SpecialSteelElectricFurnaceCapacityReplacementProject | 501,616,506.41 | 501,616,506.41 | 483,671,390.32 | 483,671,390.32 | ||
| DesulphurizationWasteLiquorAcidMakingProjectinPlatesIronMakingPlant | 82,436,988.98 | 82,436,988.98 | 79,335,324.68 | 79,335,324.68 | ||
| CCPPPowerGenerationProject | 40,983,279.77 | 40,983,279.77 | ||||
| ColdRollingTransformationProject | 527,591,479.48 | 527,591,479.48 | 492,919,655.40 | 492,919,655.40 | ||
| PlateNo.1DryQuenchingSystemBoostingModificationandUnitNo.34NewConstruction | 41,865,108.63 | 41,865,108.63 | 41,832,708.63 | 41,832,708.63 | ||
| EnvironmentalProtectionRenovationofPlateRawMaterialPlant | 170,714,302.21 | 170,714,302.21 | 160,208,719.65 | 160,208,719.65 | ||
| CapacityReplacementProjectofNo.5BlastFurnaceofBensteelIronmakingPlant(Energy-savingandEnvironmentalProtectionRenovationofNo.5BlastFurnaceofIronmakingPlant) | 59,158,434.85 | 59,158,434.85 | 55,645,429.58 | 55,645,429.58 | ||
| EnvironmentalProtectionRenovationinNo.2CoalStorageFieldofPlatesRawMaterialPlant | 129,712,436.30 | 129,712,436.30 | 119,656,230.22 | 119,656,230.22 | ||
| CentralizedControlProjectbeforeIronmakingofPlatesIronMakingPlant | 95,347,372.59 | 95,347,372.59 | 80,258,847.34 | 80,258,847.34 | ||
| 1780ProductionLine | 78,531,654.02 | 78,531,654.02 | 78,531,654.02 | 78,531,654.02 | ||
NotestothefinancialstatementsPage75
| Items | 2025/06/30 | 2024/12/31 | ||||
| Grosscarryingamount | Totalimpairment | Bookvalue | Grosscarryingamount | Totalimpairment | Bookvalue | |
| Upgrading | ||||||
| FlueGasDesulfurizationandDenitrificationProjectof4Band5FurnaceGroupinBengangPlatesandIronMakingGeneralPlant | 44,996,882.65 | 44,996,882.65 | 44,724,618.50 | 44,724,618.50 | ||
| PlateHotRollingMill2300LineReheatingFurnaceOverhaul | 40,082,001.71 | 40,082,001.71 | 15,500,355.74 | 15,500,355.74 | ||
| BengangPlateintelligentfactoryProject | 70,802,016.40 | 70,802,016.40 | 53,198,819.53 | 53,198,819.53 | ||
| CentralizedControlProjectbeforeIronmakingofPlatesIronMakingPlant | 118,866,661.12 | 118,866,661.12 | 107,816,471.12 | 107,816,471.12 | ||
| SteamDrumtoElectricDrumConversionProjectofthePlateEnergyManagementCenter | 101,052,630.63 | 101,052,630.63 | 48,987,269.15 | 48,987,269.15 | ||
| RetrofitofDustRemovalSysteminNo.7BlastFurnaceAreaatIronmakingGeneralWorks | 41,811,530.65 | 41,811,530.65 | 31,296,143.60 | 31,296,143.60 | ||
| EnvironmentalTreatmentofBlastFurnaceOreBinsatPlateIronmakingGeneralWorks | 40,224,780.25 | 40,224,780.25 | 32,949,949.75 | 32,949,949.75 | ||
| RetrofitoftheDustRemovalSystemintheNewNo.1BlastFurnaceAreaattheIronmakingGeneralWorks | 61,538,258.24 | 61,538,258.24 | 46,333,893.64 | 46,333,893.64 | ||
| RenovationofthedustremovalsystemintheNo.6blastfurnaceareaof??theIronandSteelPlant | 85,659,983.64 | 85,659,983.64 | 64,377,725.64 | 64,377,725.64 | ||
| Ultra-lowemission | 68,764,255.19 | 68,764,255.19 | 68,740,566.29 | 68,740,566.29 | ||
NotestothefinancialstatementsPage76
| Items | 2025/06/30 | 2024/12/31 | ||||
| Grosscarryingamount | Totalimpairment | Bookvalue | Grosscarryingamount | Totalimpairment | Bookvalue | |
| transformationofthedustremovalsystemintheoriginalNo.3operationareasoftheIronandSteelPlant | ||||||
| FullyEnclosedBeltConveyorGalleryProjectatBenxiSteelPlateIronmakingGeneralWorks | 41,066,754.90 | 41,066,754.90 | 34,238,770.60 | 34,238,770.60 | ||
| EnvironmentalTreatmentoftheFirstandSecondMixingSystemsforSinterMachineatPlateIronmakingGeneralWorks | 53,010,960.00 | 53,010,960.00 | 37,822,726.20 | 37,822,726.20 | ||
| EnvironmentalProtectionRetrofitoftheSecondSinteringStockyardatthePlateIronmakingGeneralWorks | 123,593,411.85 | 123,593,411.85 | 46,697,183.08 | 46,697,183.08 | ||
| RenovationoftheHotBlastFurnaceandHeatExchangeroftheNo.7BlastFurnaceinPlateIronmakingPlant | 18,011,658.51 | 18,011,658.51 | 120,538,633.05 | 120,538,633.05 | ||
| RefractoryMaterialsRetrofitforNo.7BlastFurnaceatPlateIronmakingGeneralWorks | 42,452,368.58 | 42,452,368.58 | 30,936,881.22 | 30,936,881.22 | ||
| RenovationofcoolingequipmentofNo.7blastfurnaceinPlateIronmakingPlant | 22,160,409.68 | 22,160,409.68 | 65,430,926.20 | 65,430,926.20 | ||
| PowerGridUpgradeforthePlateEnergyCenterSupercriticalPowerProject | 93,546,578.80 | 93,546,578.80 | ||||
| HazardRectificationofTaiziRiverRailwayBridgeat | 38,941,440.23 | 38,941,440.23 | 33,150,135.48 | 33,150,135.48 | ||
NotestothefinancialstatementsPage77
| Items | 2025/06/30 | 2024/12/31 | ||||
| Grosscarryingamount | Totalimpairment | Bookvalue | Grosscarryingamount | Totalimpairment | Bookvalue | |
| RailwayTransportationCompany | ||||||
| SpecialSteelRollingMillRenovationProject | 66,788,087.90 | 66,788,087.90 | 59,562,329.18 | 59,562,329.18 | ||
| Others | 1,677,073,078.60 | 1,677,073,078.60 | 1,359,095,863.92 | 1,359,095,863.92 | ||
| Total | 4,537,418,033.00 | 4,537,418,033.00 | 3,934,442,501.50 | 3,934,442,501.50 | ||
NotestothefinancialstatementsPage78
3.Changesinimportantconstructionprojectsinthecurrentperiod
| Items | Budget | 2024/12/31 | Increaseduringcurrentperiod | Transferredtofixedassetduringcurrentperiod | Otherdecreaseduringcurrentperiod | 2025/06/30 | Projectcumulativeinvestmentaccountedfortheproportionofthebudget(%) | Projectprogress(%) | Accumulatedamountofinterestcapitalization | Including：Interestcapitalizationamountincurrentperiod | Interestcapitalizationrateincurrentperiod(%) | Sourcesoffunds |
| SpecialSteelElectricFurnaceCapacityReplacementProject | 1,732,481,000.00 | 483,671,390.32 | 17,945,116.09 | 501,616,506.41 | 93.20 | 93.20 | 15,603,704.08 | 67,648,603.37 | 4.08 | Fundraising | ||
| ColdRollingTransformationProject | 843,640,000.00 | 492,919,655.40 | 34,671,824.08 | 527,591,479.48 | 95.82 | 95.82 | 12,115,610.33 | 52,224,686.79 | 4.08 | Loanfromfinancialinstitute | ||
| EnvironmentalProtectionRenovationofSheetRawMaterialPlant | 1,286,370,000.00 | 160,208,719.65 | 10,505,582.56 | 170,714,302.21 | 37.39 | 37.39 | 9,976,126.85 | 46,740,897.37 | 4.08 | Loanfromfinancialinstitute | ||
| EnvironmentalProtectionandIntelligentUpgradingandRetrofitforPlateMaterialYard–EnvironmentalProtection | 310,000,000.00 | 119,656,230.22 | 10,056,206.08 | 129,712,436.30 | 96.76 | 96.76 | 5,027,425.08 | 14,120,324.33 | 4.08 | Loanfromfinancialinstitute |
NotestothefinancialstatementsPage79
| Items | Budget | 2024/12/31 | Increaseduringcurrentperiod | Transferredtofixedassetduringcurrentperiod | Otherdecreaseduringcurrentperiod | 2025/06/30 | Projectcumulativeinvestmentaccountedfortheproportionofthebudget(%) | Projectprogress(%) | Accumulatedamountofinterestcapitalization | Including：Interestcapitalizationamountincurrentperiod | Interestcapitalizationrateincurrentperiod(%) | Sourcesoffunds |
| RetrofitProjectforNo.2CoalStorageYard | ||||||||||||
| Plateenergycentralizedcontrolproject | 119,730,000.00 | 80,258,847.34 | 15,088,525.25 | 95,347,372.59 | 79.64 | 79.64 | Others | |||||
| CentralizedControlProjectbeforeIronmakingofPlatesIronMakingGeneralPlant | 162,000,000.00 | 107,816,471.12 | 11,050,190.00 | 118,866,661.12 | 73.37 | 73.37 | Others | |||||
| ProjectofConvertingSteamDrumstoElectricDrumsatthePlateEnergyManagementandControlCenter | 187,900,000.00 | 48,987,269.15 | 52,065,361.48 | 101,052,630.63 | 55.54 | 55.54 | Others | |||||
| EnvironmentalProtectionRetrofitoftheSecondSintering | 199,880,000.00 | 46,697,183.08 | 76,896,228.77 | 123,593,411.85 | 61.83 | 61.83 | Others |
NotestothefinancialstatementsPage80
| Items | Budget | 2024/12/31 | Increaseduringcurrentperiod | Transferredtofixedassetduringcurrentperiod | Otherdecreaseduringcurrentperiod | 2025/06/30 | Projectcumulativeinvestmentaccountedfortheproportionofthebudget(%) | Projectprogress(%) | Accumulatedamountofinterestcapitalization | Including：Interestcapitalizationamountincurrentperiod | Interestcapitalizationrateincurrentperiod(%) | Sourcesoffunds |
| StockyardatthePlateIronmakingGeneralWorks | ||||||||||||
| RenovationofthedustremovalsystemintheNo.6blastfurnaceareaof??theIronandSteelPlant | 99,970,000.00 | 64,377,725.64 | 21,282,258.00 | 85,659,983.64 | 85.69 | 85.69 | Others | |||||
| PowerGridUpgradeforthePlateEnergyCenterSupercriticalPowerProject | 264,470,000.00 | 93,546,578.80 | 93,546,578.80 | 35.37 | 35.37 | Others | ||||||
| Total | 1,604,593,491.92 | 343,107,871.11 | 1,947,701,363.03 | 42,722,866.34 | 180,734,511.86 |
NotestothefinancialstatementsPage81
(13)Rightofuseassets
1.Rightofuseassets
| Items | Land | Buildings | Machinery | Total |
| 1.Grosscarryingamount | ||||
| (1)31December2024 | 1,132,274,415.17 | 368,465,367.56 | 444,230,189.48 | 1,944,969,972.21 |
| (2)Increaseincurrentperiod | ||||
| —Addition | ||||
| —Others | ||||
| (3)Decreaseincurrentperiod | ||||
| —Disposalorscrapping | ||||
| —Others | ||||
| (4)30June2025 | 1,132,274,415.17 | 368,465,367.56 | 444,230,189.48 | 1,944,969,972.21 |
| 2．Totalaccumulateddepreciation | ||||
| (1)31December2024 | 159,616,944.92 | 81,881,192.96 | 17,546,124.19 | 259,044,262.07 |
| (2)Increaseincurrentperiod | 19,952,118.12 | 10,235,149.14 | 9,254,795.58 | 39,442,062.84 |
| —Provision | 19,952,118.12 | 10,235,149.14 | 9,254,795.58 | 39,442,062.84 |
| (3)Decreaseincurrentperiod | ||||
| —Disposalorscrapping | ||||
| —Others | ||||
| (4)30June2025 | 179,569,063.04 | 92,116,342.10 | 26,800,919.77 | 298,486,324.91 |
| 3．Totalimpairment | ||||
| (1)31December2024 | ||||
| (2)Increaseincurrentperiod | ||||
| —provision |
NotestothefinancialstatementsPage82
| Items | Land | Buildings | Machinery | Total |
| (3)Decreaseincurrentperiod | ||||
| —Disposalorscrapping | ||||
| —Others | ||||
| (4)30June2025 | ||||
| 4．Totalnetbookvalue | ||||
| (1)30June2025 | 952,705,352.13 | 276,349,025.46 | 417,429,269.71 | 1,646,483,647.30 |
| (2)31December2024 | 972,657,470.25 | 286,584,174.60 | 426,684,065.29 | 1,685,925,710.14 |
(14)Intangibleassets
1.Detailsofintangibleassets
| Items | Software | Landuseright | Total |
| 1．Totaloforiginalvalue | |||
| （1）31December2024 | 4,439,653.03 | 489,429,922.52 | 493,869,575.55 |
| （2）Increase | |||
| —Purchase | |||
| —InternalR&D | |||
| —IncreaseinMergers | |||
| —Others | |||
| （3）Decrease | |||
| —Disposal | |||
| —Others | |||
| （4）30June2025 | 4,439,653.03 | 489,429,922.52 | 493,869,575.55 |
| 2．TotalAccumulatedAmortization | |||
| （1）31December2024 | 686,823.46 | 98,402,683.41 | 99,089,506.87 |
| （2）Increase | 591,383.33 | 4,981,114.05 | 5,572,497.38 |
| —Provision | 591,383.33 | 4,981,114.05 | 5,572,497.38 |
| （3）Decrease | |||
| —Disposal | |||
| —Others |
NotestothefinancialstatementsPage83
| Items | Software | Landuseright | Total |
| （4）30June2025 | 1,278,206.79 | 103,383,797.46 | 104,662,004.25 |
| 3．TotalofImpairment | |||
| （1）31December2024 | |||
| （2）Increase | |||
| —Provision | |||
| （3）Decrease | |||
| —Disposal | |||
| —Others | |||
| （4）30June2025 | |||
| 4．Netbookvalue | |||
| （1）30June2025 | 3,161,446.24 | 386,046,125.06 | 389,207,571.30 |
| （2）31December2024 | 3,752,829.57 | 391,027,239.11 | 394,780,068.68 |
2.Landuserightwithoutpropertyrightscertificatesattheendoftheperiod
| Items | Bookvalue | Reason |
| Landuseright | 3,120,324.41 | Inprocess |
| Total | 3,120,324.41 |
(15)Deferredtaxassetanddeferredtaxliability
1.Deferredtaxassetsbeforetakingintoconsiderationofthebalanceoffsetting
| Items | 2025/06/30 | 2024/12/31 | ||
| Deductibletemporarydifferences | Deferredtaxasset | Deductibletemporarydifferences | Deferredtaxasset | |
| Deferredtaxassets: | ||||
| Impairment | 577,451,931.50 | 86,958,178.87 | 598,249,997.63 | 90,011,580.45 |
| Changesinfairvalueofotherfinancialassetsrecognizedinothercomprehensiveincome | 122,664,831.62 | 18,399,724.74 | 122,664,831.62 | 18,399,724.74 |
NotestothefinancialstatementsPage84
| Items | 2025/06/30 | 2024/12/31 | ||
| Deductibletemporarydifferences | Deferredtaxasset | Deductibletemporarydifferences | Deferredtaxasset | |
| Leaseliabilities | 1,731,624,850.40 | 259,743,727.56 | 1,752,154,297.33 | 262,823,144.60 |
| Total | 2,431,741,613.52 | 365,101,631.17 | 2,473,069,126.58 | 371,234,449.79 |
2.Deferredtaxliabilitiesbeforetakingintoconsiderationofthebalanceoffsetting
| Items | 2025/06/30 | 2024/12/31 | ||
| Taxabletemporarydifferences | Deferredtaxliabilities | Taxabletemporarydifferences | Deferredtaxliabilities | |
| Deferredtaxliabilities: | ||||
| Changesinfairvalueofotherfinancialassetsrecognizedinothercomprehensiveincome | 31,158.29 | 4,673.74 | 31,158.29 | 4,673.74 |
| Right-of-useassets | 1,646,483,647.30 | 246,972,547.10 | 1,685,925,710.14 | 252,888,856.52 |
| Total | 1,646,514,805.59 | 246,977,220.84 | 1,685,956,868.43 | 252,893,530.26 |
3.Unrecognizeddeferredtaxassets
| Items | 2025/06/30 | 2024/12/31 |
| Deductibletemporarydifferences | 276,016,008.88 | 286,782,181.23 |
| Deductiblelosses | 11,135,387,057.05 | 9,484,867,801.78 |
| Total | 11,411,403,065.93 | 9,771,649,983.01 |
4.Thedeductiblelossofunrecognizeddeferredtaxassetsdueinthefollowingperiod
| Year | 30June2025 | 31December2024 | Notes |
NotestothefinancialstatementsPage85
| Year | 30June2025 | 31December2024 | Notes |
| Year2025 | 9,940,190.02 | ||
| Year2026 | 6,799,314.77 | 6,799,314.77 | |
| Year2027 | 8,117,351.82 | 8,117,351.82 | |
| Year2028 | |||
| Year2029 | 221,316,382.16 | ||
| Year2030 | |||
| Year2031 | |||
| Year2032 | 1,911,715,647.99 | 1,911,715,647.99 | |
| Year2033 | 2,367,541,315.76 | 2,367,541,315.76 | |
| Year2034 | 5,125,613,839.53 | 5,180,753,981.42 | |
| Year2035 | 1,494,283,205.02 | ||
| Total | 11,135,387,057.05 | 9,484,867,801.78 |
(16)Othernon-currentassets
| Items | 2025/06/30 | 2024/12/31 | ||||
| Grosscarryingamount | Impairment | Bookvalue | Grosscarryingamount | Impairment | Bookvalue | |
| Prepaymentforengineeringequipment | 63,242,806.75 | 63,242,806.75 | 86,297,275.16 | 86,297,275.16 | ||
| Total | 63,242,806.75 | 63,242,806.75 | 86,297,275.16 | 86,297,275.16 | ||
NotestothefinancialstatementsPage86
(17)Assetswithrestrictedownershiporuserights
| Items | 2025/06/30 | 2024/12/31 | ||||||
| Carryingamount | Bookvalue | Typeofrestriction | Status | Carryingamount | Bookvalue | Typeofrestriction | Status | |
| Cashatbankandonhand | 1,001,459,617.18 | 1,001,459,617.18 | MarginforNotesreceivable,Marginforletterofcredit | MarginforNotesreceivable,Marginforletterofcredit | 863,683,251.57 | 863,683,251.57 | MarginforNotesreceivable,Marginforletterofcredit | MarginforNotesreceivable,Marginforletterofcredit |
| Notesreceivable | 67,041,187.99 | 67,041,187.99 | Pledged | Pledged | 165,968,800.17 | 165,968,800.17 | Pledged | Pledged |
| Total | 1,068,500,805.17 | 1,068,500,805.17 | 1,029,652,051.74 | 1,029,652,051.74 | ||||
NotestothefinancialstatementsPage87
(18)Short-termloans
1.Classificationofshort-termloans
| Items | 2025/06/30 | 2024/12/31 |
| Creditloans | 570,000,000.00 | 370,000,000.00 |
| Discountedunexpiredbills | 201,932,029.09 | 1,055,490.50 |
| Total | 771,932,029.09 | 371,055,490.50 |
(19)Notespayable
| Items | 2025/06/30 | 2024/12/31 |
| Bankacceptancebill | 10,612,143,986.30 | 10,412,029,417.45 |
| Commercialacceptancebill | 1,134,068,131.78 | 1,559,477,470.97 |
| Letterofcredit | 1,496,307,842.64 | 1,011,196,781.44 |
| Total | 13,242,519,960.72 | 12,982,703,669.86 |
(20)Accountspayable
1.Accountspayable
| Items | 2025/06/30 | 2024/12/31 |
| Within1year(inclusive) | 2,799,003,363.63 | 2,680,864,210.15 |
| 1-2year(inclusive) | 119,630,433.78 | 61,748,259.48 |
| 2-3year(inclusive) | 13,489,180.84 | 8,554,593.94 |
| Over3years | 14,145,836.39 | 10,592,375.79 |
| Total | 2,946,268,814.64 | 2,761,759,439.36 |
Note:Nomaterialaccountspayablewithageingofoveroneyearoroverdue.
(21)Prepayments
| Items | 2025/06/30 | 2024/12/31 |
| Within1year(inclusive) | 60,550.47 | 611.60 |
| 1-2year(inclusive) | 58,715.61 | |
| 2-3year(inclusive) | ||
| Over3years |
NotestothefinancialstatementsPage88
| Items | 2025/06/30 | 2024/12/31 |
| Total | 60,550.47 | 59,327.21 |
(22)Contractliabilities
1.Detailsofcontractliabilities
| Items | 2025/06/30 | 2024/12/31 |
| Paymentreceivedinadvanceandlaborcosts | 2,712,225,947.41 | 2,894,761,202.08 |
| Others | 8,201,204.84 | 13,837,223.65 |
| Total | 2,720,427,152.25 | 2,908,598,425.73 |
(23)Employeebenefitspayable
1.Employeebenefitspayable
| Items | 2024/12/31 | Increase | Decrease | 2025/06/30 |
| Short-termemployeebenefits | 1,773,068.35 | 838,993,043.91 | 831,185,366.87 | 9,580,745.39 |
| Post-employmentbenefits-definedcontributionplans | 117,412,488.73 | 117,412,488.73 | ||
| Terminationbenefits | 9,178,565.95 | 9,178,565.95 | ||
| Otherbenefitsduewithinoneyear | ||||
| Others | ||||
| Total | 1,773,068.35 | 965,584,098.59 | 957,776,421.55 | 9,580,745.39 |
2.Short-termemployeebenefits
| Items | 2024/12/31 | Increase | Decrease | 2025/06/30 |
| (1)Salary,bonus,allowanceandsubsidy | 597,838,713.64 | 597,838,713.64 | ||
| (2)Employeewelfare | 77,970,134.07 | 77,970,134.07 | ||
| (3)SocialInsurance | 61,623,095.39 | 61,623,095.39 | ||
| Including:Medical | 49,343,055.39 | 49,343,055.39 |
NotestothefinancialstatementsPage89
| Items | 2024/12/31 | Increase | Decrease | 2025/06/30 |
| insuranceandmaternityinsurance | ||||
| Workinjuryinsurance | 9,991,880.00 | 9,991,880.00 | ||
| Others | 2,288,160.00 | 2,288,160.00 | ||
| (4)Housingfund | 73,504,046.00 | 73,504,046.00 | ||
| (5)Unionfundsandstaffeducationfee | 1,773,068.35 | 20,331,219.53 | 12,523,542.49 | 9,580,745.39 |
| (6)Short-termcompensatedabsences | ||||
| (7)Short-termprofit-sharingscheme | ||||
| (8)Othershort-termbenefits | 7,725,835.28 | 7,725,835.28 | ||
| Total | 1,773,068.35 | 838,993,043.91 | 831,185,366.87 | 9,580,745.39 |
3.Definedcontributionplans
| Items | 2024/12/31 | Increase | Decrease | 2025/06/30 |
| Basicpensionfund | 94,092,330.06 | 94,092,330.06 | ||
| Unemploymentinsurance | 2,940,640.96 | 2,940,640.96 | ||
| Annuity | 20,379,517.71 | 20,379,517.71 | ||
| Total | 117,412,488.73 | 117,412,488.73 |
(24)Currenttaxliabilities
| Items | 2025/06/30 | 2024/12/31 |
| Value-addedtax | 7,111,335.94 | 10,272,516.44 |
| ResourceTax | 2,479,178.56 | 750,000.00 |
| Corporateincometax | 9,620,928.92 | 16,029,179.78 |
| Citymaintenanceandconstructiontax | 497,793.52 | 540,889.49 |
| Housepropertytax | 7,576,279.53 | 7,370,656.33 |
| Landuserighttax | 1,144,608.49 | 1,088,809.99 |
NotestothefinancialstatementsPage90
| Items | 2025/06/30 | 2024/12/31 |
| Individualincometax | 474,740.89 | 2,157,426.95 |
| Educationalsurcharges(includinglocalEducationalsurcharges) | 355,566.80 | 386,769.92 |
| Others | 12,735,295.16 | 15,473,848.93 |
| Total | 41,995,727.81 | 54,070,097.83 |
(25)Otherpayables
| Items | 2025/06/30 | 2024/12/31 |
| Interestpayables | ||
| Dividendspayables | 45,054,305.70 | 99,687,100.35 |
| Otherpayables | 2,667,560,610.09 | 2,255,007,099.66 |
| Total | 2,712,614,915.79 | 2,354,694,200.01 |
1.Dividendspayables
| Items | 2025/06/30 | 2024/12/31 |
| BengangGroupCo.,Ltd. | 45,054,305.70 | 45,054,305.70 |
| PohangIronandSteelCo.Ltd(POSCO) | 54,632,794.65 | |
| Total | 45,054,305.70 | 99,687,100.35 |
2.Otherpayables
(1)Otherpayablesdisclosedbynature
| Items | 2025/06/30 | 2024/12/31 |
| Deposit | 585,292.00 | 586,292.00 |
| Margin | 174,175,679.53 | 377,422,555.34 |
| Currentaccounts | 2,490,502,376.12 | 1,871,598,040.35 |
| Others | 2,297,262.44 | 5,400,211.97 |
| Total | 2,667,560,610.09 | 2,255,007,099.66 |
(2)Significantotherpayablesagedoveroneyearoroverdue
NotestothefinancialstatementsPage91
| Items | 2025/06/30 | Reasons |
| MCCJingchengEngineeringTechnologyCo.,Ltd | 9,677,280.00 | Theprojectisstillinprogress |
(26)Non-currentliabilitiesduewithinoneyear
| Items | 2025/06/30 | 2024/12/31 |
| Long-termloansduewithinoneyear | 501,112,572.40 | 805,270,731.20 |
| Including:pledgeloan | ||
| Mortgageloan | ||
| Guaranteedloan | ||
| Creditloan | 501,112,572.40 | 805,270,731.20 |
| Bondpayablesduewithinoneyear | 5,618,737,269.28 | 106,989,474.64 |
| Otherlong-termpayablesduewithinoneyear | 115,797,444.57 | 118,242,710.82 |
| Total | 6,235,647,286.25 | 1,030,502,916.66 |
(27)Othercurrentliabilities
| Items | 2025/06/30 | 2024/12/31 |
| Outputtaxtobetransferred | 302,028,180.11 | 328,981,058.74 |
| Total | 302,028,180.11 | 328,981,058.74 |
(28)Long-termloans
| Items | 2025/06/30 | 2024/12/31 |
| Pledgedloans | ||
| Mortgageloan | ||
| Guaranteedloans | ||
| Creditloans | 4,045,871,647.71 | 3,697,212,193.60 |
| Subtotal | 4,045,871,647.71 | 3,697,212,193.60 |
| Less:duewithinoneyear | 501,112,572.40 | 805,270,731.20 |
| Total | 3,544,759,075.31 | 2,891,941,462.40 |
Notes:Attheendoftheperiod,interestrateoflong-termloansrangesfrom2.1%-3.28%.
NotestothefinancialstatementsPage92
(29)Bondspayable
1.Bondspayabledisclosedbycategory
| Items | 2025/06/30 | 2024/12/31 |
| ConvertibleBond | 5,569,899,459.53 | |
| Total | 5,569,899,459.53 |
NotestothefinancialstatementsPage93
2.ChangesinBondspayables(Excludingotherfinancialinstrumentssuchaspreferredstocksandperpetualbondsclassifiedasfinancialliabilities)
| Items | Facevalue | Issuedate | Bondduration | Issuanceamount | Balanceattheendofthepreviousyear | Currentissue | Interestaccruedatfacevalue | Premiumanddiscountamortization | Repaymentinthisperiod | Shareconversionandrepurchasethisyear | Balanceattheendofthecurrentperiod | Defaultornot |
| BengangConvertibleBond(Bondcode:127018) | 6,800,000,000.00 | 29thJune2020 | 6Years | 6,800,000,000.00 | 5,676,888,934.17 | 106,998,050.00 | 48,853,809.75 | 213,987,524.64 | 16,000.00 | 5,618,737,269.28 | No | |
| Less:amountduewithinoneyear | 106,989,474.64 | 106,989,474.64 | 5,618,737,269.28 | No | ||||||||
| Total | 5,569,899,459.53 | 106,998,050.00 | 48,853,809.75 | 106,998,050.00 | 16,000.00 |
NotestothefinancialstatementsPage94
3.Descriptionofcorporateconvertiblebond:
ApprovedbyShenzhenStockExchange"ShenZhengShang[2020]No.656",theCompany’sRMB6.80billionconvertiblecorporatebondswerelistedontheShenzhenStockExchangeonAugust4,2020,andtheabbreviationis"BengangConvertibleBonds".Thebondcodeis"127018".Theconversionperiodoftheconvertiblecorporatebondsissuedthistimeisfromthefirsttradingdayaftersixmonthsoftheissuanceoftheconvertiblecorporatebonds(July3,2020)tothematuritydateoftheconvertiblecorporatebonds,thatis,fromJanuary4,2021toJune28,2026.TheinitialconversionpriceoftheconvertiblebondsisRMB5.03pershare.FromJanuary1,2025,toJune30,2025,anaggregateofRMB16,000.00oftheconvertiblebondswereconvertedinto4,048.00commonstock.Amongthem:
Inthefirstquarterof2025,theBengangConvertibleBondswerereducedbyRMB15,000.00(150bonds),resultinginaconversionquantityof3,795.00sharesataconversionpriceofRMB3.95yuanpershare;inthesecondquarterof2025,theBengangConvertibleBondsreducedbyRMB1,000.00yuan(10bonds),resultinginaconversionquantityof253.00sharesataconversionpriceofRMB3.95yuanpershare.
NotestothefinancialstatementsPage95
(30)Leaseliabilities
| Items | 2025/06/30 | 2024/12/31 |
| Leasepayments | 2,488,754,144.09 | 2,539,395,930.63 |
| Less:Unrealizedfinancingexpenses | 757,129,293.69 | 787,241,633.30 |
| Reclassifiedtonon-currentliabilitieswithinoneyear | 115,797,444.57 | 118,242,710.82 |
| Total | 1,615,827,405.83 | 1,633,911,586.51 |
(31)Deferredincome
| Items | 2024/12/31 | Increase | Decrease | 2025/06/30 | Reason |
| Governmentsubsidy | 173,919,087.47 | 46,963,000.00 | 31,376,315.25 | 189,505,772.22 | |
| Total | 173,919,087.47 | 46,963,000.00 | 31,376,315.25 | 189,505,772.22 |
NotestothefinancialstatementsPage96
Thedetailsofgovernmentsubsidyprojectsareasfollows:
| Items | 2024/12/31 | Increase | Transfertonon-operatingincome | Transfertootherincome | Offsettingcostorexpenses | Otherchanges | 2025/06/30 | Relatedtoassetsorincome |
| DesulfurizationandDenitrificationProjectofCoal-firedBoilerinHigh-pressureWorkshopofBengangPowerPlant | 1,200,000.00 | 300,000.00 | 900,000.00 | Assets | ||||
| AdvancedTreatmentProjectofCarbonFiberWastewaterinDongfengPlantAreaofPlateCokingPlant | 1,900,000.00 | 950,000.00 | 950,000.00 | Assets | ||||
| SecondSinteringFinishingDustRemovalUltra-lowEmissionReconstructionProject | 410,000.00 | 205,000.00 | 205,000.00 | Assets | ||||
| ConverterGasRecoveryEfficiencyImprovementProjectforPlateMaterialArea | 7,260,000.00 | 1,210,000.00 | 6,050,000.00 | Assets | ||||
| Centralenvironmentalprotectionawardfund | 63,264,000.00 | 10,544,000.00 | 52,720,000.00 | Assets | ||||
| 2021IntellectualManufacturingStrongProvinceSpecialFund | 2,880,000.00 | 480,000.00 | 2,400,000.00 | Assets | ||||
| 2020EcologicalCivilizationConstructionSpecialProject(SpecialSteelElectricFurnaceUpgradingProject) | 16,000,000.00 | 2,000,000.00 | 14,000,000.00 | Assets | ||||
| 2021ManufacturingStrongProvinceSpecialFundProject | 6,480,000.00 | 810,000.00 | 5,670,000.00 | Assets | ||||
| BengangAutomotiveSheetEngineeringLaboratoryConstructionProject | 745,133.80 | 228,047.25 | 517,086.55 | Assets |
NotestothefinancialstatementsPage97
| Items | 2024/12/31 | Increase | Transfertonon-operatingincome | Transfertootherincome | Offsettingcostorexpenses | Otherchanges | 2025/06/30 | Relatedtoassetsorincome |
| XingliaoTalentProgramGovernmentGrant | 190,000.00 | 190,000.00 | Income | |||||
| 2021BenxiCityExpert-EnterpriseCollaborationProgram | 5,000.00 | 5,000.00 | Income | |||||
| 2022LiaoningProvincialNaturalScienceFoundationProgramFunds(ProvincialDepartmentofScienceandTechnology) | 28,400.00 | 28,400.00 | Income | |||||
| DesignofRareEarthSteelMetallurgicalSlagSystemandResearchonItsPhysicochemicalProperties | 302,173.50 | 302,173.50 | Income | |||||
| 2021MunicipalSkilledMasterWorkstationFee | 20,764.57 | 20,764.57 | Income | |||||
| StudyontheMechanismandControloftheEffectofRareEarthOxysulfidesonthePlasticizabilityofAutomotiveSteel | 52,020.20 | 52,020.20 | Income | |||||
| 2019MunicipalMasterSkillWorkstationFee | 69,500.19 | 69,500.19 | Income | |||||
| 2018MunicipalMasterSkillWorkstationFee | 58,766.34 | 58,766.34 | Income | |||||
| LiaoningProvince"Hundred,Thousand,Thousand,ThousandTalentsProject"fundingprojectin2018 | 220,000.00 | 220,000.00 | Income |
NotestothefinancialstatementsPage98
| Items | 2024/12/31 | Increase | Transfertonon-operatingincome | Transfertootherincome | Offsettingcostorexpenses | Otherchanges | 2025/06/30 | Relatedtoassetsorincome |
| ProvincialScienceandTechnologyDepartmentNationalNaturalScienceFoundationCommittee | 334,000.00 | 334,000.00 | Income | |||||
| 2019ProvincialSkilledMasterWorkstationFee | 100,000.00 | 100,000.00 | Income | |||||
| 2020Provincial-levelSkillMasterWorkstationExpenditure | 36,200.84 | 36,200.84 | Income | |||||
| FundamentalResearchonNewTechnologyofCompositeIronCokeLowCarbonIronmakingFurnaceCharge | 168,000.00 | 168,000.00 | Income | |||||
| TheSecondBatchof2021LiaoningFundsonCentralGovernmentGuidingtheDevelopmentofLocalScienceandTechnology | 300,000.00 | 300,000.00 | Income | |||||
| 2022DigitalLiaoningIntellectualManufacturingStrongProvince | 300,000.00 | 300,000.00 | Income | |||||
| MunicipalEnterpriseOperationClassPatentNavigationProjectFundingGrant | 200,000.00 | 200,000.00 | Income |
NotestothefinancialstatementsPage99
| Items | 2024/12/31 | Increase | Transfertonon-operatingincome | Transfertootherincome | Offsettingcostorexpenses | Otherchanges | 2025/06/30 | Relatedtoassetsorincome |
| GeneticEngineeringandArtificialIntelligenceDesignofAviationCriticalMaterials(ResearchInstitute) | 376,000.00 | 376,000.00 | Income | |||||
| 2022AnnualProvincialSkillMasterWorkshopProgram | 32,256.03 | 20,225.43 | 12,030.60 | Income | ||||
| GovernmentGrantsReceivedbySteelProductsR&DInstitute | 525,000.00 | 525,000.00 | Income | |||||
| SteelPlantBlastFurnace#5Group&4BCokeOvenFlueGasDesulfurization/DenitrificationProject | 16,368,000.00 | 2,046,000.00 | 14,322,000.00 | Assets | ||||
| ConverterRoofHoodTertiaryDustRemovalUpgrade(BF#4/5/6SteelmakingPlant) | 11,688,000.00 | 1,461,000.00 | 10,227,000.00 | Assets | ||||
| HotMetalPretreatmentStationDustControlRetrofit(ConverterPlant) | 7,730,400.00 | 966,300.00 | 6,764,100.00 | Assets | ||||
| HotBlastStoveDesulfurization-DenitrificationSystemInstallation(IronmakingComplex) | 15,267,000.00 | 15,267,000.00 | Assets |
NotestothefinancialstatementsPage100
| Items | 2024/12/31 | Increase | Transfertonon-operatingincome | Transfertootherincome | Offsettingcostorexpenses | Otherchanges | 2025/06/30 | Relatedtoassetsorincome |
| 2024ManufacturingTalentDevelopmentSupportInitiative | 250,000.00 | 250,000.00 | Income | |||||
| R&DonRE-AlloyedHigh-StrengthFatigue-ResistantWheelSteel | 111,000.00 | 111,000.00 | Income | |||||
| Ultra-lowEmissionProjectsforMillRawMaterialandSteelmakingOperations | 18,680,000.00 | 18,680,000.00 | Assets | |||||
| Desulfurization&DenitrificationProjectforBlastFurnaceHotStoves-IronmakingPlant | 27,653,000.00 | 27,653,000.00 | Assets | |||||
| LandsubsidyforHengdaLogisticsPark | 19,047,472.00 | 9,504,978.00 | 9,542,494.00 | Assets | ||||
| GovernmentFinancialSupportFunds | 630,000.00 | 630,000.00 | Income | |||||
| Total | 173,919,087.47 | 46,963,000.00 | 31,376,315.25 | 189,505,772.22 |
NotestothefinancialstatementsPage101
(32)Sharecapital
| Items | 2024/12/31 | Increase/decrease(+,-) | 2025/06/30 | ||||
| Issuingofnewshare | Bonusshares | Transferredfromreserves | Others | Subtotal | |||
| Totalshares | 4,108,228,157.00 | 4,048.00 | 4,048.00 | 4,108,232,205.00 | |||
Note:TheincreasewasduetotheconvertiblebondsissuedbytheCompanywereconvertedinto4,048.00sharesofcommonstockduringthecurrentperiod,andtheremainingbalanceofthefacevalueoftheCompany'sconvertiblebondsasofJune30,2025wasRMB5,630,969,100.00Yuan(56,309,691.00bonds).Fordetails,pleaserefertoNote5.(29)Bondspayable.
NotestothefinancialstatementsPage102
(33)Otherequityinstruments
Changesinfinancialinstrumentssuchaspreferredstocksandperpetualbondsissuedattheendoftheperiod
| Items | 2024/12/31 | Increase | Decrease | 2025/06/30 | ||||
| Number | Bookvalue | Number | Bookvalue | Number | Bookvalue | Number | Bookvalue | |
| Convertiblecorporatebonds | 56,309,851.00 | 947,850,195.03 | 160.00 | 3,257.10 | 56,309,691.00 | 947,846,937.93 | ||
| Total | 56,309,851.00 | 947,850,195.03 | 160.00 | 3,257.10 | 56,309,691.00 | 947,846,937.93 | ||
Notes:ThedecreaseduringthecurrentperiodwasduetoconvertiblebondsissuedbytheCompanyhavebeenpartiallyconvertedintocommonstockforanaggregateofRMB16,000.00(160bonds),andtheremainingbalanceofthefacevalueoftheconvertiblebondsasofJune30,2025wasRMB5,630,969,100.00
Yuan(56,309,691.00bonds).Fordetails,pleaserefertoNote5.(29)Bondspayable.
NotestothefinancialstatementsPage103
(34)Capitalreserves
| Items | 2024/12/31 | Increase | Decrease | 2025/06/30 |
| a)Capital(share)premium | 13,225,632,166.95 | 11,835.26 | 13,225,644,002.21 | |
| b)Othercapitalreserves | ||||
| Including:Otherequitychangesininvestees | ||||
| Unexercisedshare-basedpayment | ||||
| Others | ||||
| c)Transferofcapitalreserveundertheoriginalsystem | ||||
| Total | 13,225,632,166.95 | 11,835.26 | 13,225,644,002.21 |
Notes:
1.TheincreasewasduetotheconversionofA-shareconvertiblebondsissuedbytheCompanyintoA-sharecommonstockduringthecurrentperiod,asdescribedinNote5
(29)Bondspayable.
NotestothefinancialstatementsPage104
(35)Othercomprehensiveincome
| Items | 2024/12/31 | Currentperiod | 2025/06/30 | |||||
| Amountsbeforecorporateincometax | Less:amountrecognizedinOCIinthepreviousperiodtransfertoPLincurrentperiod | Less:incometax | IncomeaftertaxattributabletoownersoftheCompany | Incomeaftertaxattributabletonon-controllinginterests | Less:transfertoretainearnings | |||
| 1．Itemscannotbereclassifiedintoprofitorloss. | -93,407,196.62 | -93,407,196.62 | ||||||
| including:Changesinfairvalueofinvestmentsinotherequityinstruments | ||||||||
| Othercomprehensiveincomeundertheequitymethodcannotbereclassifiedintoprofitorloss | ||||||||
| Changesinfairvalueof | -93,407,196.62 | -93,407,196.62 | ||||||
NotestothefinancialstatementsPage105
| Items | 2024/12/31 | Currentperiod | 2025/06/30 | |||||
| Amountsbeforecorporateincometax | Less:amountrecognizedinOCIinthepreviousperiodtransfertoPLincurrentperiod | Less:incometax | IncomeaftertaxattributabletoownersoftheCompany | Incomeaftertaxattributabletonon-controllinginterests | Less:transfertoretainearnings | |||
| investmentsinotherequityinstruments | ||||||||
| Changesinfairvalueofcompany'screditrisk | ||||||||
| Other | ||||||||
| 2．Itemscanbereclassifiedintoprofitorloss | ||||||||
| Total | -93,407,196.62 | -93,407,196.62 | ||||||
NotestothefinancialstatementsPage106
(36)SpecialReserves
| Items | 2024/12/31 | Increase | Decrease | 2025/06/30 |
| Safetyproductionfee | 809,649.65 | 32,080,601.70 | 16,712,548.91 | 16,177,702.44 |
| Total | 809,649.65 | 32,080,601.70 | 16,712,548.91 | 16,177,702.44 |
(37)SurplusReserves
| Items | 2024/12/31 | Increase | Decrease | 2025/06/30 |
| Statutorysurplusreserves | 1,195,116,522.37 | 1,195,116,522.37 | ||
| Total | 1,195,116,522.37 | 1,195,116,522.37 |
(38)UndistributedProfits
| Items | Currentperiod | Previousperiod |
| Beforeadjustments:undistributedprofitsatlastyear-end | -7,497,011,632.90 | -2,414,685,928.92 |
| Adjustmentsofthebeginningdistributedprofits(increase+/decease-) | ||
| Afteradjustments:undistributedprofitatthisyear-beginning | -7,497,011,632.90 | -2,414,685,928.92 |
| Add:undistributedprofitbelongingtoparentcompany | -1,399,277,780.90 | -5,037,271,398.28 |
| Less:Statutorysurplusreserves | ||
| Discretionaryreserves | ||
| Generalriskreserves | ||
| Commonsharesdividendpayable | 45,054,305.70 | |
| Commonsharesdividendtransferredtopaid-incapital | ||
| Endingbalanceofundistributedprofits | -8,896,289,413.80 | -7,497,011,632.90 |
(39)Operatingincomeandoperatingcost
NotestothefinancialstatementsPage107
1.Operatingincomeandoperatingcost
| Items | Currentperiod | Previousperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Principalbusiness | 24,299,027,360.17 | 25,043,467,684.02 | 27,944,182,578.61 | 28,733,996,982.52 |
| Otherbusiness | 398,773,061.82 | 397,749,564.90 | 422,669,309.38 | 434,178,194.37 |
| Total | 24,697,800,421.99 | 25,441,217,248.92 | 28,366,851,887.99 | 29,168,175,176.89 |
2.Detailsaboutoperatingincomeandoperatingcost
| Item | Currentperiod | Currentperiod | ||
| PrincipalbusinessRevenue | PrincipalbusinessCost | OtherbusinessRevenue | OtherbusinessCost | |
| Classificationbythetimeofcommoditytransfer | ||||
| Including:recognizeatapointintime | 24,299,027,360.17 | 25,043,467,684.02 | 397,670,178.84 | 397,742,017.02 |
| -Recognizeoveracertainperiodoftime | 1,102,882.98 | 7,547.88 | ||
| Total | 24,299,027,360.17 | 25,043,467,684.02 | 398,773,061.82 | 397,749,564.90 |
| Classificationbybusinessarea | ||||
| Including：Domestic | 20,038,403,948.40 | 20,723,589,764.37 | 398,773,061.82 | 397,749,564.90 |
| Abroad | 4,260,623,411.77 | 4,319,877,919.65 | ||
| Total | 24,299,027,360.17 | 25,043,467,684.02 | 398,773,061.82 | 397,749,564.90 |
(40)Taxandsurcharges
| Items | Currentperiod | Previousperiod |
| Environmentaltax | 7,348,645.97 | 10,657,195.93 |
| Citymaintenanceandconstructiontax | 3,841,954.40 | 7,179,465.72 |
NotestothefinancialstatementsPage108
| Items | Currentperiod | Previousperiod |
| Educationalsurcharge | 2,814,781.46 | 5,141,768.24 |
| ResourceTax | 5,057,602.56 | |
| Housingpropertytax | 45,022,445.17 | 42,749,298.60 |
| Landuserighttax | 7,107,861.82 | 7,609,446.76 |
| Vehicleandvesseltax | 10,711.44 | 26,361.04 |
| Stampduty | 36,809,947.61 | 33,103,641.89 |
| Others | 8,373.04 | 14,110.89 |
| Total | 108,022,323.47 | 106,481,289.07 |
Note:The"ImplementationMeasuresforthePilotWaterResourcesTaxReform"(CaiShui[2024]No.
28)specifiesthatthepilotprogramofreplacingwaterresourcefeeswithtaxeswillbefullyimplementedstarting1December2024,withtaxreturnsandpaymentsrequiredonaquarterlybasis.Accordingtotherequirementsintheappendixtothe"ImplementationPlanforthePilotReformofWaterResourcesTaxinLiaoningProvince"(LiaoCaiShui[2024]No.320),theCompanywillapplyRMB0.4percubicmeterandRMB1.2percubicmeterrespectively,resultinginanincreaseofRMB5,057,602.56inthecurrentperiod.
(41)Sellinganddistributionexpenses
| Items | Currentperiod | Previousperiod |
| Importandexportagencyfee | 1,132,435.68 | 1,016,910.24 |
| Salaryandbenefits | 28,922,500.81 | 36,058,846.27 |
| Storageandwarehousingfee | 21,286,926.75 | 26,379,873.76 |
| Others | 10,122,303.29 | 8,521,429.64 |
| Total | 61,464,166.53 | 71,977,059.91 |
(42)Generalandadministrativeexpenses
| Items | Currentperiod | Previousperiod |
| Salaryandbenefits | 193,863,629.66 | 228,973,811.09 |
| Insurancefee | 11,836,395.97 | 12,068,301.43 |
| Depreciation | 31,277,381.76 | 25,703,238.52 |
| Repairexpense | 629,075.86 | 3,893,853.72 |
| AgencyFees | 4,108,796.48 | 10,565,726.99 |
NotestothefinancialstatementsPage109
| Items | Currentperiod | Previousperiod |
| InformationSystemServiceFees | 12,135,901.47 | 21,186,116.66 |
| SafetyProductionFees | 13,329,362.22 | 13,231,852.96 |
| Others | 18,584,353.01 | 44,281,797.59 |
| Total | 285,764,896.43 | 359,904,698.96 |
(43)Researchanddevelopmentexpenses
| Items | Currentperiod | Previousperiod |
| Depreciation,materialsandcompensation,etc. | 31,617,334.27 | 36,966,260.63 |
| Total | 31,617,334.27 | 36,966,260.63 |
(44)Financialexpenses
| Items | Currentperiod | Previousperiod |
| Interestexpenses | 207,308,249.73 | 192,939,391.68 |
| including:Interestexpensesforleaseliabilities | 30,112,339.61 | 27,576,079.44 |
| Less:Interestincome | 17,521,734.29 | 20,070,259.17 |
| Exchangegainsorlosses | 12,771,216.88 | -43,562,831.57 |
| Others | 5,783,222.76 | 5,419,742.93 |
| Total | 208,340,955.08 | 134,726,043.87 |
(45)Otherincome
| Items | Currentperiod | Previousperiod |
| Withholdingfeeincome | 221,525.38 | 401,726.29 |
| VATtaxrelief | 30,018,663.56 | 24,007,324.56 |
| Taxrefund | 47,395,742.50 | 43,795,569.52 |
| DesulfurizationandDenitrificationProjectofCoal-firedBoilerinHigh-pressureWorkshopofBengangPowerPlant | 300,000.00 | 300,000.00 |
| AdvancedTreatmentProjectofCarbonFiberWastewater | 950,000.00 | 950,000.00 |
NotestothefinancialstatementsPage110
| Items | Currentperiod | Previousperiod |
| inDongfengPlantAreaofPlateCokingPlant | ||
| SecondSinteringFinishingDustRemovalUltra-lowEmissionReconstructionProject | 205,000.00 | 205,000.00 |
| PlatefactoryareaconverterGasRecoveryandEfficiencyImprovementProject | 1,210,000.00 | 1,210,000.00 |
| CentralGovernmentEnvironmentalProtectionAwardFund | 10,544,000.00 | 10,544,000.00 |
| 2021IntellectualManufacturingStrongProvinceSpecialFund | 870,000.00 | 480,000.00 |
| 2020EcologicalCivilizationConstructionSpecialProject(SpecialSteelEAFUpgradingProject) | 2,000,000.00 | |
| 2021IntellectualManufacturingStrongProvinceSpecialFund | 420,000.00 | 390,000.00 |
| BenxiSteelAutomotiveSheetEngineeringLaboratoryConstructionProject | 228,047.25 | |
| 2021Municipal-LevelSkillsMasterWorkstationFee | 40,990.00 | |
| FlueGasDesulfurizationandDenitrificationProjectforNo.5FurnaceGroup&4BCokeOvenatPlateIronmakingPlant | 2,046,000.00 | |
| TripleDustRemovalRetrofitforRoofHoodsofNo.4/5/6ConvertersatPlateSteelmakingPlant | 1,461,000.00 | |
| DustRemovalRetrofitforHotMetalPretreatmentStationofSteelmakingConverters | 966,300.00 | |
| DevelopmentofGen-3AHSSforVehicles | 290,000.00 | |
| GovernmentTaxRebatesforLow-GrowthEnterprises | 724,200.00 | |
| SpecialIncentiveFundsforBusinessStabledevelopmentMeasures | 785,500.00 | |
| HengdaLogisticsParkLandSubsidy | 9,504,978.00 | 6,636,652.00 |
| FiscalSupportFunds | 630,000.00 | |
| Total | 109,012,246.69 | 90,719,972.37 |
(46)Investmentincome
NotestothefinancialstatementsPage111
| Items | Currentperiod | Previousperiod |
| Incomeonlong-termequityinvestmentbyequitymethod | ||
| Incomeonlong-termequityinvestmentbycostmethod | ||
| Incomeondisposaloflong-termequityinvestment | ||
| Gainfromdebtrestructuring | 7,215.64 | |
| Others | -17,639,062.95 | -31,605,308.28 |
| Total | -17,631,847.31 | -31,605,308.28 |
(47)Creditimpairmentloss
| Items | Currentperiod | Previousperiod |
| Lossfrombaddebtsofaccountreceivable | 17,800,262.33 | -18,084,169.13 |
| Lossfrombaddebtsofotherreceivables | -8,492,152.37 | 1,919,709.67 |
| Total | 9,308,109.96 | -16,164,459.46 |
(48)Assetimpairmentloss
| Items | Currentperiod | Previousperiod |
| Inventoryandcontractfulfillmentcostimpairmentloss | -36,671,170.60 | 14,313,228.28 |
| Total | -36,671,170.60 | 14,313,228.28 |
(49)Assetsdisposalgains
| Items | Currentperiod | Previousperiod | Theamountrecognizedinnon-recurringprofit |
| Fixedassets | 3,008.85 | 10,002,955.91 | 3,008.85 |
| Total | 3,008.85 | 10,002,955.91 | 3,008.85 |
(50)Non-operatingincome
| Items | Currentperiod | Previousperiod | Theamountrecognizedinnon-recurringprofit |
NotestothefinancialstatementsPage112
| Items | Currentperiod | Previousperiod | Theamountrecognizedinnon-recurringprofit |
| Non-currentassetsscrappedgains | 524,024.60 | 2,969,609.64 | 524,024.60 |
| Donation | |||
| Governmentgrantsunrelatedtooperationalactivities | |||
| Compensationforbreachofcontract | 6,638,865.70 | 2,257,723.46 | 6,638,865.70 |
| Unabletopay(debtsettlementincome) | 100.02 | 100.02 | |
| InventorySurplusGains | |||
| Others | 2,560,778.89 | 3,754,417.72 | 2,560,778.89 |
| Total | 9,723,769.21 | 8,981,750.82 | 9,723,769.21 |
(51)Non-operatingexpense
| Items | Currentperiod | Previousperiod | Theamountrecognizedinnon-recurringprofit |
| Non-currentassetsscrappedloss | 32,063,940.47 | 26,684,793.03 | 32,063,940.47 |
| Donation | |||
| AdministrativeFinesandLateFees | 43.94 | 81,657.85 | 43.94 |
| Compensation,liquidateddamagesandfines | 248,751.31 | 819,442.12 | 248,751.31 |
| Others | 4,210,630.39 | 71,951.36 | 4,210,630.39 |
| Total | 36,523,366.11 | 27,657,844.36 | 36,523,366.11 |
(52)Incometaxexpenses
1.Incometaxexpense
| Items | Currentperiod | Previousperiod |
| Incometaxpayableforthecurrentyear | 19,759,519.10 | 40,364,805.44 |
NotestothefinancialstatementsPage113
| Items | Currentperiod | Previousperiod |
| Deferredincometax | 216,509.20 | -2,905,865.78 |
| Total | 19,976,028.30 | 37,458,939.66 |
2.Accountingprofitandincometaxexpenseadjustmentprocess
| Items | Currentperiod |
| Totalprofit | -1,346,679,630.74 |
| Incometaxexpensecalculatedaccordingtotheofficialorapplicabletaxrate | -182,670,239.06 |
| Effectofdifferenttaxratesappliedbysubsidiaries | 5,859,548.03 |
| Effectofadjustmentoftheincometaxexpenseofpriorperiod | -13,058,799.81 |
| Effectofnon-taxableincome | 93,845.69 |
| Effectofundeductiblecosts,expensesorlosses | -20,423,025.40 |
| Effectofuseofdeductiblelossesofunrecognizeddeferredtaxassetofpriorperiod | -1,990,339.80 |
| Effectofdeductibletemporarydifferencesordeductiblelossesofunrecognizeddeferredtaxassetsofcurrentperiod | 238,016,466.19 |
| Effectoftaxratechangesontheopeningbalanceofdeferredtaxassets/liabilities | |
| Others | -5,851,427.54 |
| Incometaxexpenses | 19,976,028.30 |
(53)Notesofstatementofcashflows
1.Cashrelatedtooperatingactivities
（1）Cashreceivedrelatedtootheroperatingactivities
| Items | Currentperiod | Previousperiod |
| Collectionofcurrentaccountsandadvancepaymentonbehalf | 52,500,806.68 | 42,591,304.64 |
| Interestincome | 18,463,234.45 | 19,586,079.70 |
| Specialsubsidyincome | 47,191,156.54 | 10,775,771.68 |
| Non-operatingincome | 2,920,912.19 | 3,960,212.67 |
| Others | 1,097,069.28 | 2,522,136.10 |
NotestothefinancialstatementsPage114
| Items | Currentperiod | Previousperiod |
| Total | 122,173,179.14 | 79,435,504.79 |
（2）Cashpaidrelatedtootheroperatingactivities
| Items | Currentperiod | Previousperiod |
| Currentaccounts | 80,902,412.69 | 67,015,177.96 |
| Administrativeexpenses | 40,868,520.89 | 46,903,144.20 |
| Sellingexpenses | 2,753,734.36 | 8,837,487.92 |
| Charges | 18,292,702.08 | 32,800,975.46 |
| Others | 15,925,186.78 | 17,743,797.28 |
| Total | 158,742,556.80 | 173,300,582.82 |
2.Cashrelatedtofinancingactivities
（1）Othercashreceivedinrelationtofinancingactivities
| Item | Currentperiod | Previousperiod |
| Notes,letterofguarantee,andletterofcreditmargins | 1,815,330,484.81 | 1,841,743,458.53 |
| Withdrawaloftermdeposit | ||
| Recoveryofshort-termborrowingfundsfordesignatedpayments | ||
| Total | 1,815,330,484.81 | 1,841,743,458.53 |
（2）Othercashpaidinrelationtofinancingactivities
| Item | Currentperiod | Previousperiod |
| Notes,letterofguarantee,andletterofcreditmargins | 1,953,106,850.42 | 1,641,919,092.82 |
| Leasepayments | 3,767,304.90 | 31,137,341.92 |
| Short-termborrowingfundsfordesignatedpayments | 4,977,735.81 | 4,378,074.03 |
| Total | 1,961,851,891.13 | 1,677,434,508.77 |
(54)Supplementarydetailsofstatementofcashflows
1.Supplementarydetailsforstatementofcashflows
NotestothefinancialstatementsPage115
| Items | Currentperiod | Previousperiod |
| 1.Areconciliationofnetprofittocashflowsfromoperatingactivities: | ||
| Netprofit | -1,366,655,659.04 | -1,496,544,823.36 |
| Add:Creditimpairmentloss | 9,308,109.96 | -16,164,459.46 |
| Assetimpairmentloss | -36,671,170.60 | 14,313,228.28 |
| Depreciationoffixedassets | 825,835,405.32 | 832,107,573.45 |
| Depletionofoilandgasassets | ||
| Depreciationofrightofuseassets | 39,442,062.84 | 33,231,654.57 |
| Amortizationofintangibleassets | 5,572,497.38 | 4,543,448.63 |
| Long-termdeferredexpenses | ||
| LossesproceedsfromdisposalofPPE,intangibleassetsandotherlong-termassets(Earningsmarked“－”) | -3,008.85 | -10,002,955.91 |
| Scrappedlossesfromfixedassets(Earningsmarked“－”) | 31,539,915.87 | 23,715,183.39 |
| Lossesinfairvaluechange(Earningsmarked“－”) | ||
| Financialexpenses(Earningsmarked“－”) | 220,079,466.61 | 149,376,560.11 |
| Investmentlosses(Earningsmarked“－”) | 17,631,847.31 | 31,605,308.28 |
| Deferredtaxassetsreduction(Additionmarked“－”) | 6,132,818.62 | -64,667,690.46 |
| Deferredtaxliabilitiesincreased(Reductionmarked“－”) | -5,916,309.42 | 61,761,824.68 |
| Reductionofinventory(Additionmarked“－”) | 319,818,265.50 | -182,101,204.14 |
| Operatingreceivableitemsreduction(Additionmarked“－”) | -551,119,293.48 | 506,901,128.60 |
| Operatingpayableitemsincrease(Lessmarked"－") | 841,266,763.23 | 1,189,615,665.97 |
| Others | 15,368,052.79 | 3,125,247.77 |
| Netcashflowsgeneratedfromoperatingactivities | 371,629,764.04 | 1,080,815,690.40 |
| 2.Paymentsofinvestingandfinancingactivitiesnotinvolvingcash: | ||
| Liabilitiestransferredtocapital | ||
| Convertiblebondsduewithinoneyear | ||
| Fixedassetsfinancedbyleasing | ||
| 3.Thenetincreaseincashandcashequivalents: |
NotestothefinancialstatementsPage116
| Items | Currentperiod | Previousperiod |
| Endingbalanceofcash | 1,118,512,027.55 | 1,182,645,195.35 |
| Less:Beginningbalanceofcash | 1,590,205,218.91 | 1,199,685,408.38 |
| Add:Endingbalanceofcashequivalents | ||
| Less:Openingbalanceofcashequivalents | ||
| Thenetincreaseincashandcashequivalents | -471,693,191.36 | -17,040,213.03 |
2.Thestructureofcashandcashequivalents
| Items | Currentperiod | Previousperiod |
| 1.Cash | 1,118,512,027.55 | 1,590,205,218.91 |
| Including:Cashonhand | ||
| Digitalcashavailableondemand | ||
| Bankdepositsavailableondemand | 1,118,512,027.55 | 1,590,205,218.91 |
| 2.Endingbalanceofcashandcashequivalents | 1,118,512,027.55 | 1,590,205,218.91 |
| Including:Cashandcashequivalentslimitedtousebytheparentcompanyofothersubsidiaryinthegroup |
(55)Foreigncurrencymonetaryitems
1.Foreigncurrencymonetaryitems
| Item | Endingbalanceinforeigncurrency | Exchangerate | EndingbalancetranslatedtoRMB |
| Cashandcashequivalents | 875,365,279.59 | ||
| Including:USD | 122,281,630.43 | 7.1586 | 875,365,279.59 |
| EUR | |||
| HKD | |||
| Non-currentliabilitiesduewithinoneyear | 1,149,529.60 | ||
| Including:USD | |||
| JPY | 23,176,000.00 | 0.0496 | 1,149,529.60 |
| Long-termloans | 1,724,294.40 |
NotestothefinancialstatementsPage117
| Item | Endingbalanceinforeigncurrency | Exchangerate | EndingbalancetranslatedtoRMB |
| Including:USD | |||
| JPY | 34,764,000.00 | 0.0496 | 1,724,294.40 |
6.ChangesintheScopeofConsolidation
(1)ChangesintheScopeofConsolidationDuetoOtherReasonsOnApril9,2025,theCompanynewlyestablishedGreenGold(Benxi)RenewableResourcesCo.,Ltd.,andtheCompanyholds51.00%ofthesharesofthenewlyestablishedcompany.
7.Equityinotherentities
(1)Equityinsubsidiaries
1.Constitutionofenterprisegroup
| Nameofthesubsidiary | Registeredcapital(in10thousand) | Principalplaceofbusiness | Registrationplace | Natureofbusiness | Shareholdingratio(%) | Acquisitionmethod | |
| Direct | Indirect | ||||||
| GuangzhouBengangSteel&IronTradingCo.,Ltd | 20,000 | Guangzhou | Guangzhou | Sales | 100 | Establishment | |
| ShanghaiBengangMetallurgyScienceandTechnologyCo.,Ltd | 23,000 | Shanghai | Shanghai | Sales | 100 | Establishment | |
| DalianBenruitongAutomobileMaterialTechnologyCo.,Ltd | 10,000 | Dalian | Dalian | Manufacturing | 65 | Establishment | |
| BengangPOSCOCold-rolledSheetCo.,Ltd. | 192,000 | Benxi | Benxi | Manufacturing | 75 | Businesscombinationundercommoncontrol | |
| ChangchunBengangSteel&IronTradingCo.,Ltd. | 3,000 | Changchun | Changchun | Sales | 100 | Businesscombinationundercommoncontrol | |
| YantaiBengangSteelSalesCo.,Ltd. | 20,000 | Yantai | Yantai | Sales | 100 | Businesscombinationundercommoncontrol | |
NotestothefinancialstatementsPage118
| Nameofthesubsidiary | Registeredcapital(in10thousand) | Principalplaceofbusiness | Registrationplace | Natureofbusiness | Shareholdingratio(%) | Acquisitionmethod | |
| Direct | Indirect | ||||||
| TianjinBengangSteelTradingCo.,Ltd. | 20,000 | Tianjin | Tianjin | Sales | 100 | Businesscombinationundercommoncontrol | |
| BenxiBengangSteel&IronSalesCo.,Ltd. | 3,000 | Benxi | Benxi | Sales | 100 | Establishment | |
| ShenyangBengangMetallurgyScienceandTechnologyCo.,Ltd. | 20,000 | Shenyang | Shenyang | Sales | 100 | Establishment | |
| NorthernHengdaLogisticsCo.,Ltd. | 15,000 | Benxi | Benxi | Manufacturing | 100 | Businesscombinationundercommoncontrol | |
| Lujin(Benxi)RenewableResourcesCo.,Ltd. | 6,000 | Benxi | Benxi | Manufacturing | 51 | Establishment | |
2.Significantbutnotwholly-ownedsubsidiaries
| Nameofthesubsidiaries | Proportionofnon-controllinginterests | Profitsandlossesattributingtonon-controllingshareholders | Dividenddeclaredtodistributetonon-controllingshareholders | Endingbalanceofnon-controllinginterests |
| BengangPoscoCold-rolledSheetCo.,Ltd. | 25.00% | 29,428,186.14 | 626,799,233.47 |
NotestothefinancialstatementsPage119
3.Financialinformationofsignificantbutnotwholly-ownedsubsidiaries
| Nameofthesubsidiaries | 30June2025 | 31December2024 | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | |
| BengangPoscoCold-rolledSheetCo.,Ltd. | 5,527,703,148.51 | 994,714,125.07 | 6,522,417,273.58 | 4,015,220,339.71 | 4,015,220,339.71 | 6,390,756,526.72 | 986,052,997.62 | 7,376,809,524.34 | 4,990,053,412.86 | 4,990,053,412.86 | ||
Nameofthesubsidiaries
| Nameofthesubsidiaries | Currentperiod | Previousperiod | ||||||
| Operatingincome | Netprofit | Totalcomprehensiveincome | Netcashflowsfromoperatingactivities | Operatingincome | Netprofit | Totalcomprehensiveincome | Netcashflowsfromoperatingactivities | |
| BengangPoscoCold-rolledSheetCo.,Ltd. | 3,498,792,976.94 | 117,712,744.55 | 117,712,744.55 | -206,369,040.92 | 4,625,594,944.57 | 175,927,445.95 | 175,927,445.95 | 321,389,844.86 |
NotestothefinancialstatementsPage120
(2)InterestsinJointArrangementsorAssociates
1.SignificantJointVenturesorAssociates
Thecompanyhasnosignificantjointventuresorassociates.
8.Governmentgrants
(1)Types,Amounts,andPresentationofGovernmentGrants
1.GovernmentGrantsRecognizedinProfitorLossfortheCurrentPeriod
| Accountingsubjects | Currentperiod | Previousperiod |
| Otherincome | 78,772,057.75 | 66,310,921.52 |
NotestothefinancialstatementsPage121
2.Liabilitiesrelatingtogovernmentgrants
| Item | 31December2024 | Addition | Amountsrecognizedinnon-operatingincomeduringthecurrentperiod | Amountsrecognizedinotherincomeduringthecurrentperiod | Amountsderecognizedinotherexpenseduringthecurrentperiod | Offsetcostsorexpensesduringthecurrentperiod | 30June2025 | Relatedtoassets/income |
| Deferredincome | 173,919,087.47 | 46,963,000.00 | 31,376,315.25 | 189,505,772.22 | Assets/income |
NotestothefinancialstatementsPage122
9.Risksassociatedwithfinancialinstruments
(1)Varioustypesofrisksarisingfromfinancialinstruments
TheCompany'sprincipalfinancialinstrumentsincludeotherequityinstrumentsinvestments,borrowings,receivables,payables,etc.AdetaileddescriptionofeachfinancialinstrumentissetoutinnoteVI.TherisksassociatedwiththesefinancialinstrumentsandtheriskmanagementpoliciesadoptedbytheCompanytomitigatetheserisksaredescribedbelow.TheCompany'smanagementmanagesandmonitorstheseexposurestoensurethattheserisksarecontainedwithindefinedlimits.TheobjectiveoftheCompany'sriskmanagementistostrikeanappropriatebalancebetweenriskandreturn,minimizethenegativeimpactofriskontheCompany'soperatingresults,andmaximizethebenefitsofshareholdersandotherequityinvestors.Basedonthisriskmanagementobjective,theCompany'sbasicriskmanagementstrategyistodetermineandanalyzethevariousrisksfacedbythecompany,establishanappropriaterisktolerancebottomlineandriskmanagement,andtimelyandreliablesupervisionofvariousrisks,tocontroltheriskswithinthelimitedscope.
1.CreditriskAsofJune30,2025,thecompany’smaximumexposuretocreditrisk,whichcouldresultinfinancialloss,mainlyarisesfromthefailureofcounterpartiestofulfilltheirobligationsundercontracts,leadingtolossesonthecompany’sfinancialassets.Thisspecificallyincludesthecarryingamountsoffinancialassetsrecognizedintheconsolidatedbalancesheet.Forfinancialinstrumentsmeasuredatfairvalue,thecarryingamountreflectstheirriskexposurebutdoesnotrepresentthemaximumexposure,asthemaximumexposurewillchangewithfuturefairvaluefluctuations.Tomitigatecreditrisk,thecompanyhasestablishedadedicateddepartmenttodeterminecreditlimits,conductcreditapprovals,andimplementothermonitoringprocedurestoensurethatnecessarymeasuresaretakentorecoveroverduereceivables.Inaddition,thecompanyreviewsthecollectabilityofeachindividualreceivableateachbalancesheetdatetoensurethatadequateprovisionsfordoubtfuldebtsaremadeforamountsthatareunrecoverable.Therefore,themanagementbelievesthatthecreditriskfacedbythecompanyhasbeensubstantiallyreduced.Thecompany’scashandcashequivalentsaredepositedwithfinancialinstitutionswithhighcreditratings,andtherefore,thecreditriskofthecompany’scashislow.
NotestothefinancialstatementsPage123
2.LiquidityriskLiquidityriskistheriskthattheCompanywillnotbeabletomeetitsfinancialobligationsonthematuritydate.TheCompanymanagesliquidityriskbyensuringthatithassufficientliquiditytomeetitsobligationsastheymaturewithoutcausingunacceptablelossesordamagingthereputationofthebusiness.TheCompanyregularlyanalyzesthestructureandmaturityofitsliabilitiestoensurethatithassufficientfunds.TheCompany'smanagementmonitorstheuseofbankborrowingsandensurescompliancewithloanagreements.Italsonegotiatesfinancingwithfinancialinstitutionstomaintainacertaincreditlineandreduceliquidityrisk.
NotestothefinancialstatementsPage124
Thecompany’sfinancialliabilitiesarepresentedbymaturitybasedontheundiscountedcontractualcashflowsasfollows:
| Item | 30June2025 | ||||||
| Payableondemand | Within1Year | 1–2Years | 2–5Years | Over5Years | TotalUndiscountedContractualAmount | CarryingAmount | |
| Short-termborrowings | 771,932,029.09 | 771,932,029.09 | 771,932,029.09 | ||||
| Notespayable | 13,242,519,960.72 | 13,242,519,960.72 | 13,242,519,960.72 | ||||
| Accountspayable | 2,799,003,363.63 | 119,630,433.78 | 27,635,017.23 | 2,946,268,814.64 | 2,946,268,814.64 | ||
| Otherpayables | 2,025,216,081.67 | 336,149,690.60 | 351,249,143.52 | 2,712,614,915.79 | 2,712,614,915.79 | ||
| Long-termborrowings(includingthoseduewithinoneyear) | 501,112,572.40 | 920,699,529.60 | 2,624,059,545.71 | 4,045,871,647.71 | 4,045,871,647.71 | ||
| Leaseliabilities(includingthoseduewithinoneyear) | 115,797,444.57 | 123,826,116.47 | 758,085,723.57 | 733,915,565.79 | 1,731,624,850.40 | 1,731,624,850.40 | |
| Bondspayable(includingthoseduewithinoneyear) | 5,618,737,269.28 | 5,618,737,269.28 | 5,618,737,269.28 | ||||
| Total | 25,074,318,721.36 | 1,500,305,770.45 | 3,761,029,430.03 | 733,915,565.79 | 31,069,569,487.63 | 31,069,569,487.63 | |
Item
| Item | 31December2024 | ||||||
| Payableondemand | Within1Year | 1–2Years | 2–5Years | Over5Years | TotalUndiscountedContractualAmount | CarryingAmount | |
| Short-termborrowings | 371,055,490.50 | 371,055,490.50 | 371,055,490.50 | ||||
| Notespayable | 12,982,703,669.86 | 12,982,703,669.86 | 12,982,703,669.86 | ||||
| Accountspayable | 2,680,864,210.15 | 61,748,259.48 | 19,146,969.73 | 2,761,759,439.36 | 2,761,759,439.36 | ||
NotestothefinancialstatementsPage125
| Item | 31December2024 | ||||||
| Payableondemand | Within1Year | 1–2Years | 2–5Years | Over5Years | TotalUndiscountedContractualAmount | CarryingAmount | |
| Otherpayables | 1,703,827,958.01 | 394,969,845.27 | 255,896,396.73 | 2,354,694,200.01 | 2,354,694,200.01 | ||
| Long-termborrowings(includingthoseduewithinoneyear) | 805,270,731.20 | 922,270,731.20 | 1,969,670,731.20 | 3,697,212,193.60 | 3,697,212,193.60 | ||
| Leaseliabilities(includingthoseduewithinoneyear) | 118,242,710.82 | 109,583,860.29 | 782,383,488.53 | 741,944,237.69 | 1,752,154,297.33 | 1,752,154,297.33 | |
| Bondspayable(includingthoseduewithinoneyear) | 106,989,474.64 | 5,569,899,459.53 | 5,676,888,934.17 | 5,676,888,934.17 | |||
| Total | 18,768,954,245.18 | 7,058,472,155.77 | 3,027,097,586.19 | 741,944,237.69 | 29,596,468,224.83 | 29,596,468,224.83 | |
NotestothefinancialstatementsPage126
3.Marketrisk
Marketriskoffinancialinstrumentsreferstotheriskthatthefairvalueorfuturecashflowsoffinancialinstrumentswillfluctuateduetochangesinmarketprices,includingexchangeraterisk,interestrateriskandotherpricerisks.
(1)InterestrateriskInterestrateriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuateduetochangesinmarketinterestrates.TheinterestrateriskfacedbytheCompanymainlyarisesfromfloatinginterestratebankdepositsandfloatinginterestrateloans,whichexposetheCompanytocashflowinterestraterisk.TheCompanyhasnotyetestablishedapolicytomanageitsinterestraterisk,butmanagementwillcarefullychoosefinancingmethods,acombinationoffixedandfloatinginterestrates,andacombinationofshort-termdebtandlong-termdebt.Usingeffectiveinterestrateriskmanagementmethods,theCompanywillcloselymonitorinterestraterisk,controltheamountoffloatingrateborrowings,anduseinterestrateswapswhennecessarytoachievethedesiredinterestratestructure.
(2)ExchangerateriskExchangerateriskreferstotheriskthatthefairvalueorfuturecashflowsoffinancialinstrumentswillfluctuateduetochangesinforeignexchangerates.TheCompany'sexposuretoexchangerateriskismainlyrelatedtoUSdollars,HongKongdollars,Japaneseyenandeuros.ExceptfortheCompany'spurchaseofasmallamountofrawmaterialsandsalesoffinishedproducts,whicharesettledinUSdollars,HongKongdollars,Japaneseyenandeuros,theCompany'sothermajorbusinessactivitiesaresettledinRMB.AsatJune30,2025,theassetsorliabilitiesdescribedinthefollowingtablewereallbalancesinUSdollars,HongKongdollars,JapaneseyenandEuros:
| Item | 30June2025 | 31December2024 |
| CashandCashEquivalents–USD | 122,281,630.43 | 45,384,220.89 |
| CashandCashEquivalents–HKD | 207.73 | |
| Non-currentLiabilitiesDueWithinOneYear–JPY | 23,176,000.00 | 23,176,000.00 |
| Long-termBorrowings–JPY | 34,764,000.00 | 46,352,000.00 |
(2)TransferofFinancialAssets
1.StatusofFinancialAssetTransfers:
| MethodofFinancialAssetTransfer | TransferredFinancialAsset | DerecognitionStatus | BasisforDerecognitionAssessment | |
| Nature | Amount | |||
NotestothefinancialstatementsPage127
| MethodofFinancialAssetTransfer | TransferredFinancialAsset | DerecognitionStatus | BasisforDerecognitionAssessment | |
| Nature | Amount | |||
| Endorsement/DiscountofNotes | NotesReceivable | 311,741,833.24 | Notderecognized | Retainssubstantiallyallrisksandrewards,includingtherelatedcreditrisk |
| Endorsement/DiscountofNotes | AccountsReceivableFinancing | 4,517,795,874.04 | Derecognized | Substantiallyallrisksandrewardshavebeentransferred |
| Total | 4,829,537,707.28 | |||
ExplanationoftheBasisforDerecognitionAssessment:AsofJune30,2025,thematurityofreceivablesfinancingrangesfrom1to12months.AccordingtotherelevantprovisionsoftheNegotiableInstrumentsLaw,iftheacceptingbankrefusespayment,theholderofthebillhastherighttoclaimagainstthecompany.Thecompanybelievesthatithastransferredsubstantiallyalltherisksandrewardsofthesereceivables.Therefore,thecompanyfullyderecognizesthereceivablesandtherelatedsettledaccountspayable,andrecognizesthediscountingexpense.
2.FinancialAssetsDerecognizedDuetoTransfer:
| Items | MethodofFinancialAssetTransfer | AmountDerecognized | GainsorLossesRelatedtoDerecognition |
| AccountsReceivableFinancing | Endorsement/DiscountofNotes | 4,517,795,874.04 | 17,376,933.79 |
| Total | 4,517,795,874.04 | 17,376,933.79 |
10.Disclosureoffairvalue
Theinputvalueusedinfairvaluemeasurementisdividedintothreelevels:
Theinputvalueofthefirstlevelistheunadjustedquotationofthesameassetorliabilitythatcanbeobtainedonthemeasurementdateinanactivemarket.Theinputvalueofthesecondlevelistheinputvalueoftherelatedassetsorliabilitiesthatisdirectlyorindirectlyobservableexcepttheinputvalueofthefirstlevel.Thethirdlevelofinputvalueistheunobservableinputvalueofrelatedassetsorliabilities.Theleveltowhichthefairvaluemeasurementresultbelongsisdeterminedbythelowestleveltowhichtheinputvaluethatisimportanttothefairvaluemeasurementasawholebelongs.
(1)Fairvalueofassetsandliabilitiesmeasuredatfairvalueattheendoftheperiod
NotestothefinancialstatementsPage128
| Items | Fairvalueattheendoftheperiod | |||
| Firstlevelfairvaluemeasurement | Secondlevelfairvaluemeasurement | Thirdlevelfairvaluemeasurement | Total | |
| 1.Continuousfairvaluemeasurement | ||||
| Accountsreceivablefinancing | 5,552,656.65 | 5,552,656.65 | ||
| Otherequityinstrumentinvestments | 933,426,254.63 | 933,426,254.63 | ||
11.Relatedpartytransactions
(1)Detailsofparentcompany
| Nameofparentcompany | PlaceofRegistry | NotesofBusiness | Registeredcapital | Shareproportion(%) | Votingrights(%) |
| BenxiSteel&Iron(Group)Co.,Ltd. | Benxi,Liaoning | Manufacturing | 8.00billion | 58.65 | 58.65 |
TheultimatecontrollingpartyoftheCompanyis：AnsteelGroupCo.,Ltd.
(2)Detailsofthesubsidiaries
FordetailsofsubsidiariesoftheCompanypleaserefertoNote7“Equityinotherentities”.
（3）Thecompany'sjointventuresandassociates
FordetailsofjointventuresandassociatesoftheCompanypleaserefertoNote7“Equityinotherentities”.Otherjointventuresorassociatesthathadrelated-partytransactionswiththeCompanyduringthecurrentperiod,orhadbalancesresultingfromrelated-partytransactionswiththeCompanyinpriorperiods,aredescribedbelow:
| Nameofjointventuresandassociates | Relationship |
| ShenyangXiangyuNewMaterialsTechnologyCo.,Ltd. | Associate |
（4）Detailsofotherrelatedparties
| NameofOtherrelatedparties | Relationship |
| BengangGroupCo.,Ltd. | Controllingshareholderoftheparentcompany |
| BengangStainlessSteelColdRollingDandongCo.,Ltd. | Thesameparentcompany |
| BenxiIronandSteel(Group)RealEstateDevelopmentCo.,Ltd. | Thesameparentcompany |
| BenxiIronandSteel(Group)EngineeringConstructionSupervisionCo.,Ltd. | Thesameparentcompany |
| BenxiIronandSteel(Group)MachineryManufacturingCo., | Thesameparentcompany |
NotestothefinancialstatementsPage129
| NameofOtherrelatedparties | Relationship |
| Ltd. | |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Thesameparentcompany |
| BenxiIronandSteel(Group)MiningCo.,Ltd. | Thesameparentcompany |
| BenxiIronandSteel(Group)ThermalPowerDevelopmentCo.,Ltd. | Thesameparentcompany |
| BenxiSteelGroupEquipmentEngineeringCo.,Ltd. | Thesameparentcompany |
| BenxiSteelGroupIndustrialDevelopmentCo.,Ltd. | Thesameparentcompany |
| BenxiSteelGroupInformationAutomationCo.,Ltd. | Thesameparentcompany |
| BenxiSteelGroupMetallurgicalSlagCo.,Ltd. | Thesameparentcompany |
| BenxiIronandSteel(Group)MiningYanjiaValleyLimestoneMineCo.,Ltd. | Thesameparentcompany |
| BenxiSteelGroupMiningLiaoyangMa'erlingPelletizingCo.,Ltd. | Thesameparentcompany |
| BenxiSteelGroupMiningLiaoyangJiajiaopuIronMineCo.,Ltd. | Thesameparentcompany |
| BenxiIronandSteel(Group)MiningMineralResourcesDevelopmentCo.,Ltd. | Thesameparentcompany |
| BenxiIronandSteel(Group)MiningConstructionEngineeringCo.,Ltd. | Thesameparentcompany |
| BenxiNewIndustrialDevelopmentCo.,Ltd. | Thesameparentcompany |
| DalianBoloreSteelPipeCo.,Ltd. | Thesameparentcompany |
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | Thesameparentcompany |
| LiaoningMetallurgicalTechnicianCollege | Thesameparentcompany |
| LiaoningMetallurgicalVocationalTechnicalCollege | Thesameparentcompany |
| BengangElectricalCo.,Ltd. | Associateoftheparentcompany |
| BengangGroupInternationalEconomicandTradeCo.,Ltd. | BelongtoBengangGroup |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | BelongtoBengangGroup |
| LiaoningHengyiSteelTradingCo.,Ltd | BelongtoBengangGroup |
| AngangElectricalCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangScrapResources(Anshan)Co.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangSteelProcessing&Distribution(Dalian)Co.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangSteelProcessing&Distribution(Changchun)Co.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangSteelDistribution(Hefei)Co.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangSteelDistribution(Wuhan)Co.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangSteelRopeCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangSteelCompanyLimited | BelongtoAnsteelGroupCo.,Ltd. |
| AngangChemicalTechnologyCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangGroupInternationalEconomic&TradeCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangGroupMiningGongchanglingCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangGroupAutomationCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangConstructionGroupCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangMetalStructureCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangMiningMachineryManufacturingCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangGreenResourcesTechnologyCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangEnergyTechnologyCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangIndustrialGroup(Anshan)EquipmentOperation&MaintenanceCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangIndustrialGroupMetallurgicalMachineryCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangHeavyMachineryDesign&ResearchInstituteCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangHeavyMachineryCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| DelinIndustrialProductsCo.,Ltd | BelongtoAnsteelGroupCo.,Ltd. |
| DelinLandPortSupplyChainServicesCo.,Ltd | BelongtoAnsteelGroupCo.,Ltd. |
| GuangzhouAnsteelSteelProcessingCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| TianjinAngangSteelProcessing&DistributionCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| ChangchunFAWAngangSteelProcessing&DistributionCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
| AngangGroupEngineeringTechnologyCo.,Ltd. | BelongtoAnsteelGroupCo.,Ltd. |
（5）RelatedPartyTransactions
NotestothefinancialstatementsPage130
1.Relatedpartytransactionsofpurchasinggoodsandservices
Detailsaboutpurchasinggoodsandreceivingservices:
| Name | Thecontentofrelatedpartytransactions | Currentperiod | Previousperiod |
| Angang(Liaoning)MaterialsTechnologyCo.,Ltd. | Engineeringexpenses | 218,000.00 | |
| AngangElectricalCo.,Ltd. | Repairexpenses | 756,800.00 | 242,083.33 |
| AngangScrapResources(Anshan)Co.,Ltd. | Scrapsteel | 340,185,980.44 | 453,356,562.94 |
| AngangScrapResources(Anshan)Co.,Ltd. | Rawmaterials | 22,561,474.22 | 30,067,060.36 |
| AngangSteelProcessing&Distribution(Dalian)Co.,Ltd. | Processingfees | 153,382.41 | |
| AngangSteelProcessing&Distribution(Dalian)Co.,Ltd. | Rawmaterials | 441,290.28 | |
| AngangSteelProcessing&Distribution(Changchun)Co.,Ltd. | Processingfees | 680,768.33 | 558,509.59 |
| AngangSteelProcessing&Distribution(Zhengzhou)Co.,Ltd. | Steelproducts | 231,977.35 | |
| AngangSteelCompanyLimited | Auxiliarymaterials | 3,205,093.05 | 2,243,259.03 |
| AnsteelGroupRailwayEquipmentChecking&RepairingCompany | Spareparts | 146,544.00 | |
| AngangGroupBeijingResearchInstituteCo.,Ltd. | Researchanddevelopmentexpenses | 420,000.00 | |
| AngangGroupEngineeringTechnologyCo.,Ltd. | Worksafetyexpenses | 115,000.00 | |
| AngangGroupEngineeringTechnologyCo.,Ltd. | Engineeringexpenses | 154,988,539.06 | 41,085,063.99 |
| AngangGroupEngineeringTechnologyCo.,Ltd. | Constructionmaterials | 132,877,141.50 | 11,399,010.00 |
| AngangGroupEngineeringTechnologyCo.,Ltd. | Repairexpenses | 757,900.00 | 440,000.00 |
| AngangGroupInternationalEconomic&TradeCo.,Ltd. | Rawandfuelmaterials | 107,305,564.26 | |
| AngangGroupInternationalEconomic&TradeCo.,Ltd.BenxiBranch | Spareparts | 582,749.35 | |
| AngangGroupInternationalEconomic&TradeCo.,Ltd.BenxiBranch | Agencyservicefees | 18,028,337.20 | |
| AngangGroupEnergy-SavingTechnologyServicesCo.,Ltd. | Generalcontractingfees | 3,317,075.13 | |
| AngangGroupMiningGongchanglingCo.,Ltd. | Rawmaterials | 76,800,921.59 | 283,959,301.79 |
| AnsteelGroupMiningCo.,LTD | Rawmaterials | 1,482,101.33 | |
| AnsteelGroupCo.,Ltd | Otherexpenses | 187,932.88 | |
| AngangGroupAutomationCo.,Ltd. | Engineeringexpenses | 1,600,000.00 | 51,010,000.00 |
| AngangConstructionGroupCo.,Ltd. | Engineeringexpenses | 10,246,537.92 | |
| AngangConstructionGroupCo.,Ltd. | Constructionmaterials | 5,653,200.00 | |
| AngangMiningAutomotiveTransportationCo.,Ltd. | Transportationexpenses | 276,565.11 |
NotestothefinancialstatementsPage131
| Name | Thecontentofrelatedpartytransactions | Currentperiod | Previousperiod |
| AngangGreenResourcesTechnologyCo.,Ltd. | Transportationexpenses | 4,744,570.38 | |
| AnsteelAutomobileTransportationCo.,Ltd. | Transportationexpenses | 1,442,670.52 | |
| AngangShenYangSteelServiceCenterCo.,Ltd. | Processingfees | 6,261.54 | |
| AngangIndustrialGroup(Anshan)EquipmentOperation&MaintenanceCo.,Ltd. | Generalcontractingfees | 2,780,930.40 | 5,186,262.40 |
| AngangIndustrialGroupMetallurgicalMachineryCo.,Ltd. | Spareparts | 5,449,100.31 | 5,171,074.60 |
| AngangIndustrialGroupMetallurgicalMachineryCo.,Ltd. | Repairexpenses | 607,165.00 | 742,365.00 |
| AngangIndustrialGroupCo.,Ltd. | Otherexpenses | 23,469.02 | |
| AnsteelShuangsheng(Anshan)FanCo.,Ltd | Repairexpenses | 215,000.00 | |
| AnsteelWaterTechnology(Liaoning)Co.,Ltd. | Auxiliarymaterials | 1,612,185.98 | |
| AngangHeavyMachineryDesign&ResearchInstituteCo.,Ltd. | Engineeringexpenses | 15,865,600.00 | |
| AngangHeavyMachineryCo.,Ltd. | Spareparts | 3,257,110.00 | 2,420,723.73 |
| AngangHeavyMachineryCo.,Ltd. | Repairexpenses | 286,000.00 | |
| AnshanAngangInternationalTravelAgencyCo.,Ltd. | Businesstravelservicefees | 11,721.71 | 208,942.62 |
| AnshanIron&SteelMetallurgicalFurnaceMaterialTechnologyCo.,Ltd. | Auxiliarymaterials | 1,526,938.87 | 16,017,174.40 |
| AnshanJianboEngineeringTestingCo.,Ltd. | Engineeringexpenses | 238,000.00 | |
| BengangStainlessSteelColdRollingDandongCo.,Ltd. | Spareparts | 836,410.79 | |
| BengangElectricalCo.,Ltd. | Auxiliarymaterials | 97,672,744.51 | 92,154,394.59 |
| BengangElectricalCo.,Ltd. | Repairexpenses | 13,890,147.57 | 5,501,414.12 |
| BengangGaoyuanIndustrialDevelopmentCo.,Ltd. | Spareparts | 11,880.00 | 953,010.00 |
| BengangGaoyuanIndustrialDevelopmentCo.,Ltd. | Engineeringexpenses | 1,280,000.00 | 282,880.00 |
| BengangGaoyuanIndustrialDevelopmentCo.,Ltd. | Constructionmaterials | 2,460,000.00 | 3,446,194.70 |
| BengangGaoyuanIndustrialDevelopmentCo.,Ltd. | Repairexpenses | 360,120.00 | 552,220.00 |
| BengangGroupDalianRefractoryMaterialsCo.,Ltd | Auxiliarymaterials | 1,830,776.63 | 1,512,678.48 |
| BengangGroupInternationalEconomicandTradeCo.,Ltd. | Agencyservicefees | 3,258,589.55 | 40,066,549.91 |
| BengangGroupCo.,Ltd. | Servicefees | 888,143.50 | |
| BenxiAikeHydraulicSealingCo.,Ltd. | Spareparts | 2,155,588.70 | 4,523,499.37 |
| BenxiNorthernIronIndustryCo.,Ltd. | Rawmaterials | 5,770,319.12 | |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Energyandpower | 356,672,847.08 | 317,250,973.21 |
| BenxiBeiyingIronandSteel(Group)Co., | Auxiliary | 4,929,741.55 | 4,527,949.56 |
NotestothefinancialstatementsPage132
| Name | Thecontentofrelatedpartytransactions | Currentperiod | Previousperiod |
| Ltd. | materials | ||
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Fuel | 642,622,442.63 | 590,246,360.58 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Rawmaterials | 5,928,330,534.06 | 5,445,149,888.78 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Transportationexpenses | 3,158,081.08 | 3,175,834.38 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Weighingfees | 757,653.87 | 2,084,326.89 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Heatingexpenses | 7,479,982.49 | 1,320,665.34 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Chemicaltestingfees | 701,444.94 | 1,000,000.00 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Repairexpenses | 5,936,845.14 | 5,423,067.78 |
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | Generalcontractingfees | 39,283,771.00 | 40,092,290.58 |
| BenxiDongfenghuSteelResourceUtilizationCo.,Ltd. | Scrapsteel | 4,390,797.95 | 8,502,486.63 |
| BenxiDongfenghuSteelResourceUtilizationCo.,Ltd. | Fuel | 2,832,492.90 | 5,484,933.10 |
| BenxiDongfenghuSteelResourceUtilizationCo.,Ltd. | Rawmaterials | 2,060,273.59 | 3,989,582.04 |
| BenxiIronandSteel(Group)RealEstateDevelopmentCo.,Ltd. | Rawmaterials | 318,201.40 | |
| BenxiIronandSteel(Group)EngineeringConstructionSupervisionCo.,Ltd. | Engineeringexpenses | 885,990.00 | 694,500.00 |
| BenxiSteelandIron(Group)TengdaCo.,Ltd. | Portmiscellaneouscharges | 19,137,576.17 | 50,679,877.49 |
| BenxiSteelandIron(Group)TengdaCo.,Ltd. | Fuel | 37,694.33 | 154,788.70 |
| BenxiSteelandIron(Group)TengdaCo.,Ltd. | Transportationexpenses | 265,344,221.52 | 295,615,020.26 |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,Ltd. | Spareparts | 50,983,076.15 | 55,121,052.81 |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,Ltd. | Scrapsteel | 3,281,399.65 | 6,677,925.78 |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,Ltd. | Auxiliarymaterials | 19,201,582.27 | 39,076,843.69 |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,Ltd. | Engineeringexpenses | 12,056,060.00 | 3,000,000.00 |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,Ltd. | Constructionmaterials | 20,065,290.00 | 3,094,489.62 |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,Ltd. | Repairexpenses | 14,497,730.01 | 2,320,841.09 |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,Ltd. | Rentalfees | 418,680.00 | 299,057.14 |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,Ltd. | Laborservicefees | 343,515.90 | 317,822.80 |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,Ltd. | Generalcontracting | 10,781,894.34 | 6,975,467.86 |
NotestothefinancialstatementsPage133
| Name | Thecontentofrelatedpartytransactions | Currentperiod | Previousperiod |
| fees | |||
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Worksafetyexpenses | 2,000,000.00 | 5,741,845.00 |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Packagingmaterials | 7,858,038.99 | 1,461,511.15 |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Scrapsteel | 684,102.60 | 127,235.76 |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Engineeringexpenses | 98,463,744.89 | 22,631,700.36 |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Constructionmaterials | 40,671,630.40 | 10,000,000.00 |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Repairexpenses | 25,127,019.56 | 27,404,647.62 |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Rentalfees | 3,470,033.34 | |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Laborservicefees | 2,129,290.66 | 4,104,171.39 |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd. | Generalcontractingfees | 9,485,344.02 | 18,282,838.62 |
| BenxiIronandSteel(Group)MiningConstructionEngineeringCo.,Ltd. | Engineeringexpenses | 9,058,913.26 | 8,862,434.50 |
| BenxiIronandSteel(Group)MiningConstructionEngineeringCo.,Ltd. | Repairexpenses | 8,260,865.00 | 10,010,650.00 |
| BenxiSteelGroupMiningLiaoyangJiajiaopuIronMineCo.,Ltd. | Scrapsteel | 152,672.10 | |
| BenxiSteelGroupMiningLiaoyangMa'erlingPelletizingCo.,Ltd. | Scrapsteel | 279,470.60 | 341,041.41 |
| BenxiSteelGroupMiningLiaoyangMa'erlingPelletizingCo.,Ltd. | Rawmaterials | 1,103,428,540.37 | 1,346,527,431.40 |
| BenxiIronandSteel(Group)MiningCo.,Ltd. | Auxiliarymaterials | 190,158,542.30 | |
| BenxiIronandSteel(Group)MiningCo.,Ltd. | Scrapsteel | 6,632,504.30 | 8,160,528.43 |
| BenxiIronandSteel(Group)MiningCo.,Ltd. | Rawmaterials | 1,955,904,869.50 | 2,406,514,429.03 |
| BenxiIronandSteel(Group)ThermalPowerDevelopmentCo.,Ltd. | Scrapsteel | 134,558.60 | 45,088.60 |
| BenxiSteelGroupEquipmentEngineeringCo.,Ltd. | Spareparts | 11,707,144.31 | 8,650,212.00 |
| BenxiSteelGroupEquipmentEngineeringCo.,Ltd. | Scrapsteel | 3,157,479.46 | 2,723,059.51 |
| BenxiSteelGroupEquipmentEngineeringCo.,Ltd. | Engineeringexpenses | 151,358,466.41 | 56,846,193.36 |
| BenxiSteelGroupEquipmentEngineeringCo.,Ltd. | Constructionmaterials | 36,584,949.75 | 6,757,131.86 |
| BenxiSteelGroupEquipmentEngineeringCo.,Ltd. | Repairexpenses | 164,381,618.86 | 253,153,105.08 |
| BenxiSteelGroupEquipmentEngineeringCo.,Ltd. | Generalcontractingfees | 3,224,355.85 | 1,024,685.00 |
| BenxiSteelGroupIndustrialDevelopmentCo.,Ltd. | Repairexpenses | 1,835,300.00 | 448,651.00 |
NotestothefinancialstatementsPage134
| Name | Thecontentofrelatedpartytransactions | Currentperiod | Previousperiod |
| BenxiSteelGroupIndustrialDevelopmentCo.,Ltd. | Greeningexpenses | 3,526,920.00 | 320,360.00 |
| BenxiSteelGroupIndustrialDevelopmentCo.,Ltd. | Transportationexpenses | 1,581,235.29 | 2,339,298.23 |
| BenxiSteelGroupIndustrialDevelopmentCo.,Ltd. | Obsoletematerials | 154,732.70 | 1,260,519.35 |
| BenxiSteelGroupIndustrialDevelopmentCo.,Ltd. | Scrapsteel | 121,754,653.74 | 139,005,148.35 |
| BenxiSteelGroupIndustrialDevelopmentCo.,Ltd. | Rawmaterials | 5,438,923.10 | 6,209,522.92 |
| BenxiSteelGroupIndustrialDevelopmentCo.,Ltd. | Auxiliarymaterials | 10,345,140.58 | 17,015.07 |
| BenxiSteelGroupInformationAutomationCo.,Ltd. | Engineeringexpenses | 27,709,556.87 | 2,211,232.68 |
| BenxiSteelGroupInformationAutomationCo.,Ltd. | Constructionmaterials | 121,702,123.12 | 106,449,785.65 |
| BenxiSteelGroupInformationAutomationCo.,Ltd. | Informationsystemoperationandmaintenancefees | 12,000,000.00 | 2,000,000.00 |
| BenxiSteelGroupInformationAutomationCo.,Ltd. | Repairexpenses | 1,242,500.00 | 1,141,141.90 |
| BenxiIronandSteel(Group)Co.,LTD | Worksafetyexpenses | 1,783,000.00 | 3,947,340.00 |
| BenxiIronandSteel(Group)Co.,LTD | Obsoletematerials | 13,814.61 | 415,855.29 |
| BenxiIronandSteel(Group)Co.,LTD | Engineeringexpenses | 119,266.91 | 3,506,228.82 |
| BenxiIronandSteel(Group)Co.,LTD | Technicalservicefees | 410,000.00 | 1,152,972.96 |
| BenxiIronandSteel(Group)Co.,LTD | Securityandfireprotectionfees | 9,699,583.40 | 22,991,434.62 |
| BenxiIronandSteel(Group)Co.,LTD | Energyandpower | 112,938.29 | 118,036.44 |
| BenxiXihuMetallurgicalFurnaceMaterialCo.,Ltd. | Auxiliarymaterials | 81,308,481.29 | 103,927,615.78 |
| BenxiNewIndustrialDevelopmentCo.,Ltd. | Officeexpenses | 691,553.87 | 767,630.83 |
| BenxiNewIndustrialDevelopmentCo.,Ltd. | Scrapsteel | 22,295.00 | |
| BenxiNewIndustrialDevelopmentCo.,Ltd. | Businessentertainmentexpenses | 94,085.00 | 238,259.00 |
| BenxiNewIndustrialDevelopmentCo.,Ltd. | Rentalfees | 120,000.00 | 114,285.72 |
| BenxiNewIndustrialDevelopmentCo.,Ltd. | Otherexpenses | 313,090.29 | 468,194.98 |
| DelinIndustrialProductsCo.,Ltd | Spareparts | 26,641,853.28 | 13,534,420.24 |
| DelinIndustrialProductsCo.,Ltd | Auxiliarymaterials | 8,783,673.06 | 2,106,178.25 |
| DelinLandPortSupplyChainServicesCo., | Warehousing | 373,238.29 | 241,754.80 |
NotestothefinancialstatementsPage135
| Name | Thecontentofrelatedpartytransactions | Currentperiod | Previousperiod |
| Ltd | fees | ||
| DelinLandPortSupplyChainServicesCo.,Ltd | Salesservicefees | 183,674.08 | 725,223.98 |
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | Worksafetyexpenses | 2,280,000.00 | 1,230,000.00 |
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | Spareparts | 5,900,800.48 | 4,281,433.80 |
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | Scrapsteel | 177,158.80 | 49,347.00 |
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | Constructionmaterials | 10,877,800.00 | 2,000,000.00 |
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | Repairexpenses | 4,246,052.00 | 3,712,273.00 |
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | Generalcontractingfees | 322,275.00 | 910,000.00 |
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | Transportationexpenses | 115,957.00 | |
| LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | Spareparts | 77,092,898.25 | 89,753,179.51 |
| LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | Repairexpenses | 4,394,740.00 | 2,835,275.00 |
| LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | Rawmaterials | 266,062.54 | |
| LiaoningLideInternetofThingsCo.,Ltd. | Transportationexpenses | 55,529,050.22 | 5,920,776.67 |
| LiaoningLideInternetofThingsCo.,Ltd. | Generalcontractingfees | 87,600,249.58 | 95,680,438.16 |
| LiaoningYitongMachineryManufacturingCo.,Ltd. | Spareparts | 10,496,578.78 | 6,562,573.96 |
| LiaoningYitongMachineryManufacturingCo.,Ltd. | Scrapsteel | 219,054.88 | 17,554.15 |
| LiaoningYitongMachineryManufacturingCo.,Ltd. | Constructionmaterials | 320,463.37 | |
| LiaoningYitongMachineryManufacturingCo.,Ltd. | Repairexpenses | 5,424.79 | 4,982.31 |
| PangangGroupChengduVanadium&TitaniumResourcesDevelopmentCo.,Ltd. | Auxiliarymaterials | 3,474,192.31 | 1,285,665.38 |
| PangangGroupEngineeringTechnologyConsultingCo.,Ltd. | Engineeringexpenses | 300,000.00 | 297,250.00 |
| ShanxiMaterialsInternationalEnergyCo.,Ltd. | Rawandfuelmaterials | 15,942,888.02 | |
| TianjinBengangPlateProcessing&DistributionCo.,Ltd. | Warehousingfees | 4,924.50 | 1,852.58 |
| TianjinBengangPlateProcessing&DistributionCo.,Ltd. | Processingfees | 177,897.21 | 680,936.34 |
Detailsofsellinggoodsandrenderingofservices:
NotestothefinancialstatementsPage136
| Name | Thecontentofrelatedpartytransactions | Currentperiod | Previousperiod |
| Angang(Hangzhou)AutomotiveMaterialsTechnologyCo.,Ltd. | Steelandsteelproducts | 9,368,825.32 | 962,303.04 |
| AngangSteelProcessing&Distribution(Dalian)Co.,Ltd. | Warehousingincome | 6,572.87 | 10,000.00 |
| AngangSteelProcessing&Distribution(Dalian)Co.,Ltd. | Processingincome | 709.90 | 9,210.40 |
| AngangSteelProcessing&Distribution(Dalian)Co.,Ltd. | Rawmaterials | 10,300,639.87 | 21,841,442.86 |
| AngangSteelProcessing&Distribution(Changchun)Co.,Ltd. | Rawmaterials | 1,009,155.91 | 2,607,666.46 |
| AngangSteelProcessing&Distribution(Zhengzhou)Co.,Ltd. | Rawmaterials | 2,951,005.24 | |
| AngangSteelDistribution(Hefei)Co.,Ltd. | Steelandsteelproducts | 199,242.28 | |
| AngangSteelDistribution(Wuhan)Co.,Ltd. | Rawmaterials | 3,096,311.53 | |
| ANGANGSteelCo.,Ltd | Steelandsteelproducts | 3,967,763.31 | 698,731.41 |
| AnsteelChemicalTechnologyCo.,Ltd | Chemicalsandby-products | 136,032,448.22 | 127,769,839.46 |
| AnsteelGroupEngineeringTechnologyCo.Ltd. | Energyandpower | 16,447.08 | 31,001.31 |
| BensteelGroupInternationalEconomicandTradeCo.,LTD | Steelandsteelproducts | 198,622,209.28 | |
| AngangGroupEnergy-SavingTechnologyServicesCo.,Ltd. | Chemicalsandby-products | 585,622.80 | |
| AngangGroupEnergy-SavingTechnologyServicesCo.,Ltd. | Energyandpower | 1,578,975.01 | 41,054.20 |
| AnsteelGroupCo.,Ltd | Energyandpower | 5,043.59 | |
| AngangConstructionGroupCo.,Ltd. | Energyandpower | 279.46 | |
| AngangMiningMachineryManufacturingCo.,Ltd. | Steelandsteelproducts | 15,442,967.67 | 14,820,100.10 |
| AngangGreenResourcesTechnologyCo.,Ltd. | Rawandauxiliarymaterials | 5,193,872.81 | 37,353,702.58 |
| AngangEnergyTechnologyCo.,Ltd. | Chemicalsandby-products | 9,514,672.04 | 15,257,345.77 |
| AnsteelTenderingCo.,Ltd.BenxiBranch | Energyandpower | 10,309.54 | |
| BengangElectricalCo.,Ltd. | Energyandpower | 107.35 | |
| BengangGroupDalianRefractoryMaterialsCo.,Ltd | Steelandsteelproducts | 4,224,070.16 | |
| BengangGroupDalianRefractoryMaterialsCo.,Ltd | Rawmaterials | 399,470.50 | |
| BenSteelGroupCo.,Ltd | Energyandpower | 101,034.27 | 112,893.51 |
| BenxiNorthernIronIndustryCo.,Ltd. | Scrapsteel | 16,941,524.29 | 16,398,523.67 |
| BenxiNorthernIronIndustryCo.,Ltd. | Rawandauxiliarymaterials | 67,941,784.82 | 52,132,719.97 |
| BenxiBeifangSteelRollingCo.,Ltd. | Rawandauxiliarymaterials | 1,106,623.83 | |
| BenxiBeiyingIronandSteel(Group)Co.,LTD | Scrapsteel | 173,691,235.64 | 125,596,905.40 |
| BenxiBeiyingIronandSteel(Group)Co.,LTD | Steelandsteelproducts | 4,373,827.69 | 5,080,428.29 |
| BenxiBeiyingIronandSteel(Group)Co.,LTD | Chemicalsandby-products | 2,489,180.71 |
NotestothefinancialstatementsPage137
| Name | Thecontentofrelatedpartytransactions | Currentperiod | Previousperiod |
| BenxiBeiyingIronandSteel(Group)Co.,LTD | Energyandpower | 24,955,758.51 | 28,512,393.64 |
| BenxiBeiyingIronandSteel(Group)Co.,LTD | Rawandauxiliarymaterials | 4,732,050.27 | |
| BenxiDongfenghuSteelResourceUtilizationCo.,Ltd. | Chemicalsandby-products | 119,530.59 | 3,487,432.00 |
| BenxiDongfenghuSteelResourceUtilizationCo.,Ltd. | Testingandchemicalinspection | 21,698.11 | 9,481.13 |
| BenxiDongfenghuSteelResourceUtilizationCo.,Ltd. | Energyandpower | 1,999,539.07 | 2,624,235.81 |
| BenxiDongfenghuSteelResourceUtilizationCo.,Ltd. | Rawandauxiliarymaterials | 4,017,943.52 | 1,263,611.14 |
| BenxiIronandSteel(Group)RealEstateDevelopmentCo.,Ltd. | Energyandpower | 1,599.21 | 13,728.04 |
| BenxiIronandSteel(Group)EngineeringConstructionSupervisionCo.,Ltd. | Energyandpower | 874.86 | 1,013.49 |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,LTD | Warehousingincome | 1,128.28 | |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,LTD | Testingandchemicalinspection | 69,556.60 | |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,LTD | Steelandsteelproducts | 8,921,510.61 | 3,401,493.72 |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,LTD | Chemicalsandby-products | 932,754.82 | 670,802.00 |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,LTD | Processingincome | 13,746.33 | 33,801.89 |
| BenxiIronandSteel(Group)MachineryManufacturingCo.,LTD | Energyandpower | 4,084,240.16 | 6,007,102.33 |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd | Testingandchemicalinspection | 337.92 | |
| BenxiIronandSteel(Group)ConstructionCo.,Ltd | Energyandpower | 1,456,705.56 | 1,316,916.78 |
| BenxiIronandSteel(Group)MiningConstructionEngineeringCo.,Ltd. | Steelandsteelproducts | 95,376.11 | |
| BenxiIronandSteel(Group)MiningConstructionEngineeringCo.,Ltd. | Energyandpower | 83,862.76 | 126,145.36 |
| BenxiSteelGroupMiningLiaoyangJiajiaopuIronMineCo.,Ltd. | Testingandchemicalinspection | 38,730.00 | 77,560.00 |
| BenxiSteelGroupMiningLiaoyangJiajiaopuIronMineCo.,Ltd. | Energyandpower | 12,131.93 | 13,732.39 |
| BenxiSteelGroupMiningLiaoyangMa'erlingPelletizingCo.,Ltd. | Energyandpower | 2,868.70 | 3,189.49 |
| BenxiSteelGroupMiningLiaoyangMa'erlingPelletizingCo.,Ltd. | Fuel | 6,342,966.56 | 15,251,380.56 |
| BenxiIronandSteel(Group)MiningCo.,LTD | Steelandsteelproducts | 5,421,571.34 | 5,117,925.32 |
| BenxiIronandSteel(Group)MiningCo.,LTD | Chemicalsandby-products | 72,089,654.55 | 10,058,151.58 |
| BenxiIronandSteel(Group)MiningCo.,LTD | Energyandpower | 15,535,086.96 | 86,736,810.96 |
| BenxiIronandSteel(Group)MiningCo.,LTD | Fuel | 28,735,073.43 | 31,208,244.58 |
| BenxiIronandSteel(Group)MiningCo.,LTD | Transportationincome | 3,443,385.04 | 4,095,412.97 |
| BenxiIronandSteel(Group)Thermal | Chemicalsand | 1,468,084.50 |
NotestothefinancialstatementsPage138
| Name | Thecontentofrelatedpartytransactions | Currentperiod | Previousperiod |
| PowerDevelopmentCo.,Ltd. | by-products | ||
| BenxiIronandSteel(Group)ThermalPowerDevelopmentCo.,Ltd. | Energyandpower | 12,350,374.48 | 16,654,093.36 |
| BenxiIronandSteel(Group)ThermalPowerDevelopmentCo.,Ltd. | Fuel | 9,998,954.55 | 6,936,257.99 |
| BenxiIronandSteel(Group)EquipmentEngineeringCo.,LTD | Steelandsteelproducts | 385,719.02 | 4,260,129.29 |
| BenxiIronandSteel(Group)EquipmentEngineeringCo.,LTD | Energyandpower | 1,245,472.05 | 1,332,306.99 |
| BenxiIronandSteel(Group)IndustrialDevelopmentCo.,LTD | Obsoletematerials | 14,660,401.67 | 35,006,656.83 |
| BenxiIronandSteel(Group)IndustrialDevelopmentCo.,LTD | Energyandpower | 3,774,803.32 | 3,722,832.64 |
| BenxiIronandSteel(Group)IndustrialDevelopmentCo.,LTD | Chemicalsandby-products | 53,485.10 | 3,106.04 |
| BenxiIronandSteel(Group)IndustrialDevelopmentCo.,LTD | Rawandauxiliarymaterials | 35,043,228.00 | 35,000,000.00 |
| BenxiSteelGroupInformationAutomationCo.,Ltd. | Energyandpower | 219,503.20 | 252,361.34 |
| BenxiIronandSteel(Group)Co.,LTD | Auxiliarymaterials | 410,792.54 | 597,621.68 |
| BenxiIronandSteel(Group)Co.,LTD | Energyandpower | 5,656,233.48 | 4,386,101.97 |
| BenxiXihuMetallurgicalFurnaceMaterialCo.,Ltd. | Energyandpower | 262,237.50 | 99,284.19 |
| BenxiWeldPhosphateOverlayManufacturingCo.,Ltd. | Energyandpower | 19,480.21 | 27,999.71 |
| BenxiNewIndustrialDevelopmentCo.,Ltd. | Energyandpower | 142,545.86 | 105,194.07 |
| BenxiNewIndustrialDevelopmentCo.,Ltd. | Rentalincome | 24,500.00 | |
| ChengduXingyunSmartTechnologyCo.,Ltd. | Informationtechnologyservices | 87,991.38 | |
| DalianBoloreSteelPipeCo.,Ltd. | Steelandsteelproducts | 441,221.12 | 11,258,142.09 |
| DelinLandPortSupplyChainServicesCo.,Ltd | Steelandsteelproducts | 818,452,693.36 | 235,925,970.25 |
| DelinLandPortSupplyChainServicesCo.,Ltd | Rawmaterials | 819,818,063.16 | 1,087,654,168.23 |
| GuangzhouAnsteelSteelProcessingCo.,Ltd. | Rawmaterials | 35,403,058.32 | 13,979,582.23 |
| LiaoningHengtaiHeavyMachineryCo.,Ltd. | Energyandpower | 697.03 | |
| LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | Scrapsteel | 6,246,961.20 | 7,000,000.00 |
| LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | Obsoletematerials | 10,107,394.89 | 10,826,996.90 |
| LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | Testingandchemicalinspection | 47,688.68 | |
| PangangGroupJiangyouGreatWallSpecialSteelCo.,Ltd. | Steelandsteelproducts | 15,594,024.81 | 12,193,696.16 |
| ShenyangAngangInternationalTradeCo.,Ltd. | Rawmaterials | 3,479,173.00 | |
| TianjinAngangSteelProcessing&DistributionCo.,Ltd. | Steelandsteelproducts | 24,030,223.68 | 6,780,770.79 |
| TianjinAngangSteelProcessing&DistributionCo.,Ltd. | Rawmaterials | 4,611,840.10 | 8,460,616.32 |
| ChangchunFAWAngangSteelProcessing&DistributionCo.,Ltd. | Warehousingincome | 2,971.66 |
NotestothefinancialstatementsPage139
| Name | Thecontentofrelatedpartytransactions | Currentperiod | Previousperiod |
| ChangchunFAWAngangSteelProcessing&DistributionCo.,Ltd. | Steelandsteelproducts | 658,879.52 | |
| ChangchunFAWAngangSteelProcessing&DistributionCo.,Ltd. | Rawmaterials | 15,261,993.84 | 3,761,138.31 |
| ChinaOrdinsGroupCo.,Ltd. | Steelandsteelproducts | 166,331.79 |
2.Leaseinformationofrelatedparties
Companyasthelessor：
| Lessee | Leasecapitalcategory | Leaseincomeofcurrentperiod | Leaseincomeofpreviousperiod |
| BenxiIronandSteel(Group)EquipmentEngineeringCo.,LTD | Warehouseandmachinery | 670,802.00 | |
| BenxiNewIndustrialDevelopmentCo.,Ltd. | Warehouseandmachinery | 24,500.00 |
NotestothefinancialstatementsPage140
Companyasthelessee:
| Lessor | Leaseassetscategory | Currentperiod | Previousperiod | ||||||||
| Rentalcostsforshort-termleasesandleasesoflow-valueassetswithsimplifiedtreatment | Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities | Rentpaid | Interestexpenseonleaseliabilities | Increaseinright-of-useassets | Rentalcostsforshort-termleasesandleasesoflow-valueassetswithsimplifiedtreatment | Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities | Rentpaid | Interestexpenseonleaseliabilities | Increaseinright-of-useassets | ||
| BenxiIronandSteel(Group)Co.,Ltd. | Landuseright7,669,068.17squaremeter,Landuseright42,920.00squaremeter | 27,638,772.06 | 18,502,019.80 | 27,638,772.06 | 19,500,054.00 | ||||||
| BenxiIronandSteel(Group)Co.,Ltd. | 2300Hotrollingproductline,relatedrealestate | 8,049,080.52 | 3,348,358.04 | 8,049,080.52 | 3,870,344.34 | ||||||
| BenxiBeiyingIronandSteel(Group)Co.,Ltd. | 1780Hotrollingproductline,relatedrealestate | 7,175,818.86 | 2,578,717.23 | 7,175,818.86 | 2,980,721.70 | ||||||
| BenSteelGroupCo.,Ltd | Landuseright728,282.30squaremeter | 4,972,711.56 | 756,809.43 | 4,972,711.56 | 1,224,959.40 | ||||||
| AngangGroup | machinery | 828,571.67 | 1,400,598.59 | 12,063,482.04 | 119,211.50 | ||||||
NotestothefinancialstatementsPage141
| Lessor | Leaseassetscategory | Currentperiod | Previousperiod | ||||||||
| Rentalcostsforshort-termleasesandleasesoflow-valueassetswithsimplifiedtreatment | Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities | Rentpaid | Interestexpenseonleaseliabilities | Increaseinright-of-useassets | Rentalcostsforshort-termleasesandleasesoflow-valueassetswithsimplifiedtreatment | Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities | Rentpaid | Interestexpenseonleaseliabilities | Increaseinright-of-useassets | ||
| Energy-SavingTechnologyServicesCo.,Ltd. | andequipment | ||||||||||
| BenxiIronandSteel(Group)ConstructionCo.,Ltd | Transportationequipment | 3,470,033.34 | |||||||||
NotestothefinancialstatementsPage142
(6)Receivablesandpayablesofrelatedparties
1.ReceivablesoftheCompany
| Items | Name | 30June2025 | 31December2024 | ||
| Grosscarryingamount | Provisionforbaddebts | Grosscarryingamount | Provisionforbaddebts | ||
| Accountsreceivable | AngangSteelProcessing&Distribution(Dalian)Co.,Ltd. | 4,990,133.72 | 49,901.34 | 17,280,685.82 | 172,806.86 |
| Accountsreceivable | ANGANGSteelCo.,Ltd | 299,204.69 | 2,992.05 | 519,491.94 | 5,194.92 |
| Accountsreceivable | AngangGroupInternationalEconomic&TradeCo.,Ltd.BenxiBranch | 579,141,895.93 | 5,791,418.96 | ||
| Accountsreceivable | AngangConstructionGroupCo.,Ltd. | 315.79 | 3.16 | ||
| Accountsreceivable | AngangEnergyTechnologyCo.,Ltd. | 4,246,220.21 | 42,462.20 | ||
| Accountsreceivable | AnsteelTenderingCompanyLimited | 3,791.96 | 37.92 | ||
| Accountsreceivable | BensteelGroupInternationalEconomicandTradeCo.,LTD | 3,451,697.88 | 34,516.98 | 253,981,286.94 | 2,539,812.87 |
| Accountsreceivable | BenSteelGroupCo.,Ltd | 5,131.50 | 51.32 | ||
| Accountsreceivable | BenxiNorthernIronIndustryCo.,Ltd. | 9,023,749.23 | 90,237.49 | 8,268,156.18 | 82,681.56 |
| Accountsreceivable | BenxiBeifangSteelRollingCo.,Ltd. | 2,725,711.03 | 160,027.46 | 1,475,226.11 | 14,752.26 |
| Accountsreceivable | BenxiBeiyingIronandSteel(Group)Co.,LTD | 65,344,301.60 | 653,443.02 | 143,872.00 | 1,438.72 |
| Accountsreceivable | BenxiDongfenghuSteelResourceUtilizationCo.,Ltd. | 366,159.82 | 3,661.60 | 454,258.02 | 4,542.58 |
| Accountsreceivable | BenxiIronandSteel(Group)MachineryManufacturing | 739,002.67 | 7,390.03 | ||
NotestothefinancialstatementsPage143
| Items | Name | 30June2025 | 31December2024 | ||
| Grosscarryingamount | Provisionforbaddebts | Grosscarryingamount | Provisionforbaddebts | ||
| Co.,LTD | |||||
| Accountsreceivable | BenxiIronandSteel(Group)ConstructionCo.,Ltd | 1,591,948.83 | 69,684.83 | 1,389,266.64 | 39,345.19 |
| Accountsreceivable | BenxiIronandSteel(Group)MiningConstructionEngineeringCo.,Ltd. | 598,269.04 | 155,187.48 | 607,729.23 | 63,193.36 |
| Accountsreceivable | BenxiIronandSteel(Group)MiningMineralResourcesDevelopmentCo.,Ltd. | 88,983.85 | 17,796.77 | 88,983.85 | 8,898.39 |
| Accountsreceivable | BenxiSteelGroupMiningLiaoyangJiajiaopuIronMineCo.,Ltd. | 25,630.80 | 256.31 | 16,557.90 | 165.58 |
| Accountsreceivable | BenxiSteelGroupMiningLiaoyangMa'erlingPelletizingCo.,Ltd. | 501.11 | 5.01 | 921,521.39 | 67,911.03 |
| Accountsreceivable | BenxiIronandSteel(Group)MiningYanjiaValleyLimestoneMineCo.,Ltd. | 13,714.00 | 137.14 | ||
| Accountsreceivable | BenxiIronandSteel(Group)MiningCo.,LTD | 23,514,930.92 | 235,441.48 | 2,184,958.74 | 21,849.59 |
| Accountsreceivable | BenxiIronandSteel(Group)ThermalPowerDevelopmentCo.,Ltd. | 9,490,225.04 | 885,802.55 | 6,744,686.82 | 246,075.39 |
| Accountsreceivable | BenxiIronandSteel(Group)EquipmentEngineeringCo.,LTD | 1,634,125.24 | 49,646.38 | 1,903,696.41 | 39,634.20 |
| Accountsreceivable | BenxiIronandSteel(Group)IndustrialDevelopmentCo.,LTD | 7,084,369.26 | 70,843.69 | 6,964,699.57 | 69,647.00 |
NotestothefinancialstatementsPage144
| Items | Name | 30June2025 | 31December2024 | ||
| Grosscarryingamount | Provisionforbaddebts | Grosscarryingamount | Provisionforbaddebts | ||
| Accountsreceivable | BenxiSteelGroupInformationAutomationCo.,Ltd. | 5,885.49 | 58.85 | 561.58 | 5.62 |
| Accountsreceivable | BenxiIronandSteel(Group)Co.,LTD | 1,156,517.59 | 90,599.12 | 1,700,740.58 | 17,007.41 |
| Accountsreceivable | BenxiXihuMetallurgicalFurnaceMaterialCo.,Ltd. | 66,717.46 | 667.17 | 49,833.00 | 498.33 |
| Accountsreceivable | BenxiWeldPhosphateOverlayManufacturingCo.,Ltd. | 188,239.90 | 17,317.16 | 190,148.59 | 8,558.50 |
| Accountsreceivable | GuangzhouAnsteelSteelProcessingCo.,Ltd. | 4,577,685.01 | 45,776.85 | ||
| Accountsreceivable | LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | 54,010.30 | 540.10 | ||
| Accountsreceivable | LiaoningSlagMicroPowderCo.,Ltd. | 12,848.00 | 128.48 | ||
| Accountsreceivable | PangangGroupJiangyouGreatWallSpecialSteelCo.,Ltd. | 6,990,483.45 | 69,904.83 | 5,864,196.39 | 58,641.96 |
| Accountsreceivable | AngangSteelDistribution(Wuhan)Co.,Ltd. | 343,341.92 | 3,433.42 | ||
| Accountsreceivable | AnsteelGroupEngineeringTechnologyCo.Ltd. | 23,232.88 | 232.33 | ||
| Otherreceivables | AnsteelMuseum | 345,160.00 | 3,451.60 | ||
| Otherreceivables | ANGANGSteelCo.,Ltd | 95,781.27 | 55,603.99 | 95,781.27 | 50,581.83 |
| Otherreceivables | AnshanEducationandTrainingCenterofAnsteelGroupCo.,Ltd | 6,706.00 | 670.60 | ||
| Otherreceivables | BengangStainlessSteelColdRollingDandongCo.,Ltd. | 709,548.62 | 70,954.86 | 1,030,000.00 | 10,300.00 |
| Otherreceivables | BenSteelGroupCo., | 426.94 | 4.27 | ||
NotestothefinancialstatementsPage145
| Items | Name | 30June2025 | 31December2024 | ||
| Grosscarryingamount | Provisionforbaddebts | Grosscarryingamount | Provisionforbaddebts | ||
| Ltd | |||||
| Otherreceivables | BenxiIronandSteel(Group)ConstructionCo.,Ltd | 250,679.61 | 250,679.61 | 250,679.61 | 250,679.61 |
| Otherreceivables | BenxiIronandSteel(Group)Co.,LTD | 2,674,500.00 | 413,000.00 | 2,674,500.00 | 157,740.00 |
| Otherreceivables | LiaoningLideInternetofThingsCo.,Ltd. | 1,881,016.00 | 18,810.16 | ||
| Otherreceivables | AnsteelGroupCo.,Ltd | 13,906.00 | 139.06 | ||
| Prepayments | AngangSteelProcessing&Distribution(Changchun)Co.,Ltd. | 1,027.17 | 663.59 | ||
| Prepayments | BengangGaoyuanIndustrialDevelopmentCo.,Ltd. | 11,817.51 | |||
| Prepayments | BenxiBeiyingIronandSteel(Group)Co.,LTD | 1,832,466.75 | 7,880,500.42 | ||
| Prepayments | BenxiIronandSteel(Group)MiningConstructionEngineeringCo.,Ltd. | 11,600.01 | |||
| Prepayments | BenxiIronandSteel(Group)EquipmentEngineeringCo.,LTD | 3,274,557.89 | 3,162,173.15 | ||
| Prepayments | BenxiIronandSteel(Group)IndustrialDevelopmentCo.,LTD | 4,305.30 | |||
| Prepayments | BenxiSteelGroupInformationAutomationCo.,Ltd. | 581,838.17 | 575,313.17 | ||
| Prepayments | LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | 62,100.00 | |||
| Prepayments | BenxiIronandSteel(Group) | 318,579.31 | |||
NotestothefinancialstatementsPage146
| Items | Name | 30June2025 | 31December2024 | ||
| Grosscarryingamount | Provisionforbaddebts | Grosscarryingamount | Provisionforbaddebts | ||
| MachineryManufacturingCo.,LTD | |||||
| Prepayments | ANGANGSteelCo.,Ltd | 411,660.66 | 484,808.79 | ||
| Prepayments | BensteelGroupInternationalEconomicandTradeCo.,LTD | 0.01 | 0.01 | ||
| Prepayments | AngangGroupInternationalEconomic&TradeCo.,Ltd.BenxiBranch | 386,757,348.18 | |||
| Prepayments | BenxiNewIndustrialDevelopmentCo.,Ltd. | 7,196,737.50 | 7,196,737.50 | ||
| Othernon-currentassets | BensteelGroupInternationalEconomicandTradeCo.,LTD | 3,735,200.31 | |||
| Othernon-currentassets | BengangGaoyuanIndustrialDevelopmentCo.,Ltd. | 542,400.00 | |||
| Othernon-currentassets | BenxiIronandSteel(Group)ConstructionCo.,Ltd | 19,936,615.33 | 19,936,615.33 | ||
| Othernon-currentassets | BenxiIronandSteel(Group)MiningConstructionEngineeringCo.,Ltd. | 2,210,879.80 | 3,102,019.08 | ||
| Othernon-currentassets | BenxiIronandSteel(Group)EquipmentEngineeringCo.,LTD | 11,987,515.98 | 12,686,042.92 | ||
| Othernon-currentassets | BenxiIronandSteel(Group)IndustrialDevelopmentCo.,LTD | 562,392.14 | 562,392.14 | ||
| Othernon-currentassets | BenxiSteelGroupInformationAutomationCo.,Ltd. | 3,332,204.39 | 7,692,252.35 | ||
| Other | Liaoning | 37,496.00 | 5,895,416.00 | ||
NotestothefinancialstatementsPage147
| Items | Name | 30June2025 | 31December2024 | ||
| Grosscarryingamount | Provisionforbaddebts | Grosscarryingamount | Provisionforbaddebts | ||
| non-currentassets | HengtaiHeavyMachineryCo.,Ltd. | ||||
| Othernon-currentassets | AnsteelGroupEngineeringTechnologyCo.Ltd. | 1,968,632.21 | 1,968,632.21 | ||
2.PayablesoftheCompany
| Items | Name | 30June2025 | 31December2024 |
| Contractliabilities | Angang(Hangzhou)AutomotiveMaterialsTechnologyCo.,Ltd. | 3,750,833.76 | 644,589.93 |
| Contractliabilities | AngangSteelProcessing&Distribution(Dalian)Co.,Ltd. | 1,018.12 | |
| Contractliabilities | AngangSteelProcessing&Distribution(Changchun)Co.,Ltd. | 1,899,033.90 | 2,826,567.07 |
| Contractliabilities | AngangSteelProcessing&Distribution(Zhengzhou)Co.,Ltd. | 892,279.74 | |
| Contractliabilities | AngangSteelDistribution(Hefei)Co.,Ltd. | 2,874,061.03 | 3,099,204.80 |
| Contractliabilities | AngangSteelDistribution(Wuhan)Co.,Ltd. | 4,583,660.69 | 731,023.72 |
| Contractliabilities | ANGANGSteelCo.,Ltd | 675,535.16 | |
| Contractliabilities | AnsteelChemicalTechnologyCo.,Ltd | 14,101,881.90 | 10,758,548.27 |
| Contractliabilities | BensteelGroupInternationalEconomicandTradeCo.,LTD | 649,732.04 | 649,732.04 |
| Contractliabilities | AngangMiningMachineryManufacturingCo.,Ltd. | 1,229,420.59 | 354,001.32 |
| Contractliabilities | AngangGreenResourcesTechnologyCo.,Ltd. | 725,412.26 | 477,418.26 |
| Contractliabilities | AngangEnergyTechnologyCo.,Ltd. | 0.02 | |
| Contractliabilities | AngangShenYangSteelServiceCenterCo.,Ltd. | 87,869.94 | 87,869.94 |
| Contractliabilities | AngangIndustrialGroupMetallurgicalMachineryCo.,Ltd. | 176,000.00 | |
| Contractliabilities | BengangGroupDalianRefractoryMaterialsCo.,Ltd | 612,944.03 | 4,203,125.16 |
| Contractliabilities | BensteelGroupInternationalEconomicandTradeCo.,LTD | 3,749,095.41 | |
| Contractliabilities | BenxiBeiyingIronandSteel(Group)Co.,LTD | 51,134.39 | 6,329,389.09 |
| Contractliabilities | BenxiDongfenghuSteelResourceUtilizationCo.,Ltd. | 4,117,146.33 | 4,881,014.65 |
| Contractliabilities | BenxiIronandSteel(Group)MachineryManufacturingCo.,LTD | 3,011,498.83 | 5,552.80 |
| Contractliabilities | BenxiIronandSteel(Group)ConstructionCo.,Ltd | 39,135.82 | 39,135.82 |
| Contractliabilities | BenxiSteelGroupMiningLiaoyangMa'erlingPelletizingCo.,Ltd. | 7,832,447.78 | |
| Contractliabilities | BenxiIronandSteel(Group)MiningCo.,LTD | 89,538.53 | 510,246.41 |
| Contractliabilities | BenxiIronandSteel(Group)ThermalPowerDevelopmentCo.,Ltd. | 13,580,550.16 | 8,620,006.55 |
NotestothefinancialstatementsPage148
| Items | Name | 30June2025 | 31December2024 |
| Contractliabilities | BenxiIronandSteel(Group)IndustrialDevelopmentCo.,LTD | 5,391,048.35 | 10,393,122.80 |
| Contractliabilities | BenxiSteelGroupMetallurgicalSlagCo.,Ltd. | 0.01 | |
| Contractliabilities | BenxiXihuMetallurgicalFurnaceMaterialCo.,Ltd. | 20,000.00 | 20,000.00 |
| Contractliabilities | DalianBoloreSteelPipeCo.,Ltd. | 2,692,667.29 | 3,191,247.16 |
| Contractliabilities | DelinLandPortSupplyChainServicesCo.,Ltd | 298,456,859.46 | 305,864,435.81 |
| Contractliabilities | GuangzhouAnsteelSteelProcessingCo.,Ltd. | 500,000.00 | |
| Contractliabilities | LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | 3,499,420.49 | 3,278,592.93 |
| Contractliabilities | LiaoningMetallurgicalVocationalTechnicalCollege | 0.01 | 0.01 |
| Contractliabilities | ShenyangAngangInternationalTradeCo.,Ltd. | 77,209.51 | |
| Contractliabilities | TianjinAngangSteelProcessing&DistributionCo.,Ltd. | 4,041,076.85 | 4,824,582.32 |
| Contractliabilities | ChangchunFAWAngangSteelProcessing&DistributionCo.,Ltd. | 3,558,838.98 | 8,200,175.36 |
| Accountspayable | AngangElectricalCo.,Ltd. | 884,705.20 | 63,861.90 |
| Accountspayable | AnsteelScrapResources(Anshan)Co.,Ltd | 32,581,323.59 | 90,856,997.04 |
| Accountspayable | AngangSteelProcessing&Distribution(Changchun)Co.,Ltd. | 218,356.00 | 108,462.46 |
| Accountspayable | ANGANGSteelCo.,Ltd | 417,943.14 | 417,943.09 |
| Accountspayable | AnsteelGroupRailwayEquipmentChecking&RepairingCompany | 165,594.72 | |
| Accountspayable | BensteelGroupInternationalEconomicandTradeCo.,LTD | 206,408,739.59 | 193,806.42 |
| Accountspayable | AngangGroupMiningGongchanglingCo.,Ltd. | 774,734.40 | |
| Accountspayable | AngangMiningAutomotiveTransportationCo.,Ltd. | 324,680.50 | |
| Accountspayable | AngangGreenResourcesTechnologyCo.,Ltd. | 519,297.58 | |
| Accountspayable | AnsteelAutomobileTransportationCo.,Ltd. | 1,572,510.86 | |
| Accountspayable | AngangIndustrialGroup(Anshan)EquipmentOperation&MaintenanceCo.,Ltd. | 837,559.85 | |
| Accountspayable | AngangIndustrialGroupMetallurgicalMachineryCo.,Ltd. | 4,261,107.71 | 3,048,409.40 |
| Accountspayable | AnsteelShuangsheng(Anshan)FanCo.,Ltd | 24,295.00 | |
| Accountspayable | AnsteelWaterTechnology(Liaoning)Co.,Ltd. | 3,931,587.73 | |
| Accountspayable | AngangHeavyMachineryCo.,Ltd. | 2,860,106.84 | 2,480,080.39 |
| Accountspayable | AnshanIron&SteelMetallurgicalFurnaceMaterialTechnologyCo.,Ltd. | 2,641,730.70 | |
| Accountspayable | BengangStainlessSteelColdRollingDandongCo.,Ltd. | 624,692.88 | |
| Accountspayable | BengangGaoyuanIndustrialDevelopmentCo.,Ltd. | 208,135.93 | 3,969,044.08 |
| Accountspayable | BengangGroupDalianRefractoryMaterialsCo.,Ltd | 1,517,561.11 | 1,487,446.42 |
| Accountspayable | BensteelGroupInternationalEconomicandTradeCo.,LTD | 51,915,818.90 | 50,692,605.67 |
| Accounts | BengangGroupCo.,Ltd. | 4,688,239.05 | 4,688,239.05 |
NotestothefinancialstatementsPage149
| Items | Name | 30June2025 | 31December2024 |
| payable | |||
| Accountspayable | BenxiAikeHydraulicSealingCo.,Ltd. | 614,044.95 | 2,778,115.83 |
| Accountspayable | BenxiNorthernIronIndustryCo.,Ltd. | 6,594,132.35 | 73,671.74 |
| Accountspayable | BenxiBeiyingIronandSteel(Group)Co.,LTD | 226,831,342.96 | 79,183,767.61 |
| Accountspayable | BenxiDongfenghuSteelResourceUtilizationCo.,Ltd. | 4,981,760.68 | 2,794,117.30 |
| Accountspayable | BenxiIronandSteel(Group)RealEstateDevelopmentCo.,Ltd. | 89,735.06 | 89,735.06 |
| Accountspayable | BenxiSteelandIron(Group)TengdaCo.,Ltd. | 62,942,037.48 | 46,335,396.72 |
| Accountspayable | BenxiIronandSteel(Group)MachineryManufacturingCo.,LTD | 35,572,416.20 | 10,659,752.69 |
| Accountspayable | BenxiIronandSteel(Group)ConstructionAdvancedDecorationCo.,Ltd. | 264,705.62 | 264,705.62 |
| Accountspayable | BenxiIronandSteel(Group)ConstructionCo.,Ltd | 9,365,140.50 | 29,543,424.37 |
| Accountspayable | BenxiIronandSteel(Group)MiningConstructionEngineeringCo.,Ltd. | 8,805,513.96 | 12,083,876.39 |
| Accountspayable | BenxiSteelGroupMiningLiaoyangJiajiaopuIronMineCo.,Ltd. | 82,233.63 | |
| Accountspayable | BenxiSteelGroupMiningLiaoyangMa'erlingPelletizingCo.,Ltd. | 47,399,676.59 | 10,282,360.99 |
| Accountspayable | BenxiIronandSteel(Group)ThermalPowerDevelopmentCo.,Ltd. | 96,683.95 | 12,362.40 |
| Accountspayable | BenxiIronandSteel(Group)EquipmentEngineeringCo.,LTD | 80,117,560.04 | 92,630,122.46 |
| Accountspayable | BenxiIronandSteel(Group)IndustrialDevelopmentCo.,LTD | 40,787,885.05 | 53,022,441.36 |
| Accountspayable | BenxiSteelGroupInformationAutomationCo.,Ltd. | 24,568,773.81 | 23,459,353.69 |
| Accountspayable | BenxiIronandSteel(Group)Co.,LTD | 14,518,359.64 | 28,808,379.76 |
| Accountspayable | BenxiXihuMetallurgicalFurnaceMaterialCo.,Ltd. | 16,417,935.42 | 17,171,380.52 |
| Accountspayable | BenxiWeldPhosphateOverlayManufacturingCo.,Ltd. | 234,112.13 | 234,112.13 |
| Accountspayable | BenxiNewIndustrialDevelopmentCo.,Ltd. | 38,700.00 | 38,700.00 |
| Accountspayable | DalianBoloreSteelPipeCo.,Ltd. | 1,007,742.98 | |
| Accountspayable | DelinIndustrialProductsCo.,Ltd | 14,644,619.26 | 11,409,283.88 |
| Accountspayable | DelinLandPortSupplyChainServicesCo.,Ltd | 445.65 | 7,713.30 |
| Accountspayable | LiaoningHengtaiHeavyMachineryCo.,Ltd. | 8,918,144.56 | 13,479,975.49 |
| Accountspayable | LiaoningHengtongMetallurgicalEquipmentManufacturingCo.,Ltd. | 13,456,405.96 | 7,166,704.73 |
| Accountspayable | LiaoningLideInternetofThingsCo.,Ltd. | 10,816,631.56 | 7,230,457.06 |
| Accountspayable | LiaoningMetallurgicalVocationalTechnicalCollege | 48,048.00 | 517,768.00 |
| Accountspayable | LiaoningYitongMachineryManufacturingCo.,Ltd. | 7,816,893.90 | 4,599,719.45 |
| Accountspayable | TianjinAngangSteelProcessing&DistributionCo.,Ltd. | 558.87 | 487.99 |
| Accountspayable | BenxiIronandSteel(Group)MiningCo.,LTD | 97,472,445.94 | 59,008,517.39 |
| Accountspayable | AnsteelGroupEngineeringTechnologyCo.Ltd. | 206,001.22 | 85,440.00 |
NotestothefinancialstatementsPage150
| Items | Name | 30June2025 | 31December2024 |
| Accountspayable | BengangElectricalCo.,Ltd. | 2,692,262.89 | |
| Otherpayables | Angang(Liaoning)MaterialsTechnologyCo.,Ltd. | 231,080.00 | 300,000.00 |
| Otherpayables | AnsteelScrapResources(Anshan)Co.,Ltd | 500,000.00 | 500,000.00 |
| Otherpayables | AngangMetalStructureCo.,Ltd. | 10,000.00 | |
| Otherpayables | BensteelGroupInternationalEconomicandTradeCo.,LTD | 18,967,059.09 | |
| Otherpayables | AnshanEducationandTrainingCenterofAnsteelGroupCo.,Ltd | 4,640.00 | |
| Otherpayables | AnsteelAutomationCo.,LTD | 14,175,000.00 | 7,332,129.00 |
| Otherpayables | AngangConstructionGroupCo.,Ltd. | 17,587,042.93 | 3,319,522.94 |
| Otherpayables | AngangMetalStructureCo.,Ltd. | 10,000.00 | |
| Otherpayables | AngangHeavyMachineryDesign&ResearchInstituteCo.,Ltd. | 826,121.54 | 826,121.54 |
| Otherpayables | AngangHeavyMachineryCo.,Ltd. | 1,040,012.56 | 1,040,012.56 |
| Otherpayables | AnshanIron&SteelMetallurgicalFurnaceMaterialTechnologyCo.,Ltd. | 50,000.00 | 50,000.00 |
| Otherpayables | BengangElectricalCo.,Ltd. | 776,394.34 | 776,394.34 |
| Otherpayables | BengangGaoyuanIndustrialDevelopmentCo.,Ltd. | 7,875,937.56 | 5,005,617.56 |
| Otherpayables | BensteelGroupInternationalEconomicandTradeCo.,LTD | 60,972,214.65 | 66,120,363.96 |
| Otherpayables | BenSteelGroupCo.,Ltd | 159,842,920.79 | 219,843,255.77 |
| Otherpayables | BenxiBengangAutomobileTransportCo.,Ltd. | 214,352.25 | |
| Otherpayables | BenxiAikeHydraulicSealingCo.,Ltd. | 58,590.00 | 58,590.00 |
| Otherpayables | BenxiBeiyingIronandSteel(Group)Co.,LTD | 6,645,124.07 | 7,766,352.17 |
| Otherpayables | BenxiDongfenghuSteelResourceUtilizationCo.,Ltd. | 210,000.00 | 210,000.00 |
| Otherpayables | BenxiIronandSteel(Group)EngineeringConstructionSupervisionCo.,Ltd. | 1,745,527.83 | 1,488,917.43 |
| Otherpayables | BenxiIronandSteel(Group)MachineryManufacturingCo.,LTD | 33,741,169.74 | 3,792,085.01 |
| Otherpayables | BenxiIronandSteel(Group)InspectionandTestingCo.,Ltd. | 735,280.00 | |
| Otherpayables | BenxiIronandSteel(Group)ConstructionAdvancedDecorationCo.,Ltd. | 123,738.55 | 123,738.55 |
| Otherpayables | BenxiIronandSteel(Group)ConstructionCo.,Ltd | 262,803,189.75 | 217,077,997.48 |
| Otherpayables | BenxiIronandSteel(Group)MiningConstructionEngineeringCo.,Ltd. | 10,981,616.76 | 7,550,015.30 |
| Otherpayables | BenxiIronandSteel(Group)RoadandBridgeConstructionEngineeringCo.,Ltd. | 318.66 | |
| Otherpayables | BenxiIronandSteel(Group)ThermalPowerDevelopmentCo.,Ltd. | 1,577,196.00 | 697,337.92 |
| Otherpayables | BenxiIronandSteel(Group)EquipmentEngineeringCo.,LTD | 761,976,791.64 | 724,514,695.24 |
| Otherpayables | BenxiIronandSteel(Group)IndustrialDevelopmentCo.,LTD | 1,412,218.05 | 1,412,218.05 |
| Otherpayables | BenxiSteelGroupInformationAutomationCo.,Ltd. | 212,884,549.10 | 108,472,109.63 |
| Other | BenxiIronandSteel(Group)Co.,LTD | 14,940,076.44 | 52,720,523.82 |
NotestothefinancialstatementsPage151
| Items | Name | 30June2025 | 31December2024 |
| payables | |||
| Otherpayables | BenxiXihuMetallurgicalFurnaceMaterialCo.,Ltd. | 100,000.00 | 100,000.00 |
| Otherpayables | BenxiNewIndustrialDevelopmentCo.,Ltd. | 6,643,964.37 | 13,997,378.10 |
| Otherpayables | DalianBoloreSteelPipeCo.,Ltd. | 20,000.00 | 20,000.00 |
| Otherpayables | LiaoningHengtaiHeavyMachineryCo.,Ltd. | 9,464,878.94 | 5,024,204.94 |
| Otherpayables | LiaoningHengyiSteelTradingCo.,Ltd | 11,758,998.02 | 11,758,998.02 |
| Otherpayables | LiaoningMetallurgicalVocationalTechnicalCollege | 353,630.00 | 353,630.00 |
| Otherpayables | LiaoningYitongMachineryManufacturingCo.,Ltd. | 372,123.61 | 330,463.37 |
| Otherpayables | AnsteelGroupEngineeringTechnologyCo.Ltd. | 279,386,628.55 | 114,249,580.71 |
| Otherpayables | BengangGroupDalianRefractoryMaterialsCo.,Ltd | 20,000.00 | |
| Dividendspayable | BengangGroupCo.,Ltd. | 45,054,305.70 | 45,054,305.70 |
(7)CentralizedFundManagement
1.ThekeyelementsofthecentralizedcapitalmanagementarrangementsinwhichtheCompanyparticipatesandoperatesareasfollows：
InDecember2024,afternegotiationwithAnsteelGroupFinanceCo.,Ltd.(hereinafterreferredtoas“AnsteelFinanceCo.”),theFinancialServicesAgreement(Years2025–2027)wasenteredintoinordertoagreeonthetermsoftherelevantfinancialbusinessandtheupperlimitoftheamountoftherelevanttransactionsbetweentheCompanyanditssubsidiariesandAnsteelFinanceCo.fortheyears2025,2026and2027.TheagreementstipulatesthatthemaximumdailybalanceoffundsdepositedbyBengangPlatesinAnsteelFinanceCo.forsettlementshallnotexceedRMB4.5billioneachyear,andtheinterestgeneratedbythedepositsshallnotexceedRMB100millionperyear;theamountofloans,billsandotherformsofcreditprovidedbyAnsteelFinanceCo.toBengangPlatesshallnotexceedRMB5billioneachyear,andtheloaninterestshallnotexceedRMB250millionperyear;theamountofentrustedloansprovidedbyAnsteelFinanceCo.toBengangPlateGroupshallnotexceedRMB2billioneachyear,andtheentrustedloaninterestshallnotexceedRMB100millionperyear.
2.FundspooledbytheCompanytotheGroupFundsdepositeddirectlyintofinancecompaniesbytheCompanywithoutbeingpooledintotheaccountsoftheGroup'sparentcompany
| Items | 30June2025 | 31December2024 |
NotestothefinancialstatementsPage152
| Grosscarryingamount | Provisionforbaddebts | Grosscarryingamount | Provisionforbaddebts | |
| Cashatbankandonhand | 237,849,896.52 | 1,227,198,770.48 | ||
| Total | 237,849,896.52 | 1,227,198,770.48 | ||
| Fundsrestrictedduetocentralizedmanagementoffunds |
12.CommitmentsandContingencies
(1)SignificantCommitments
1.Significantcommitmentsexistingatthebalancesheetdate
(1)Accordingtothe"LandUseRightLeasingContract"andsubsequentsupplementaryagreementssignedbythecompanyandBenxiSteel(Group)onApril7,1997andDecember30,2005,theCompanyleaseslandfromBengangGroupatarateof0.594yuanpersquaremeterpermonth.Thetotalleasedlandareais7,669,068.17squaremeters,withanannualrentof54.66millionyuan..
(2)OnAugust14,2019,theCompanysignedtheBuildingLeaseAgreementswithBenxiSteel(Group)Co.,Ltd.andBenxiBeiyingSteel(Group)Co.,Ltd.,leasingthebuildingsandauxiliaryfacilitiesoccupiedbythe2300hotrollingmillproductionlineandthe1780hotrollingmillproductionline,respectively.TheleasetermextendsuntilDecember31,2038.Theleasefeeisdeterminedbasedonthedepreciationoftheoriginalbuildingvalueandnationalsurtaxes,plusareasonableprofitmarginthroughnegotiation.Theestimatedmaximumannualrentshallnotexceed20millionyuanand18millionyuanrespectively.Therentissettledandpaidonamonthlybasis.ThisrelatedpartytransactionhasbeenreviewedandapprovedbytheCompany’s8thBoardofDirectorsatits4thmeeting.
(3)OnJuly15,2019,theCompanysignedLandLeaseAgreementswithBenxiSteel(Group)Co.,Ltd.andBengangGroup,leasingatotalofeightparcelsoflandfrombothcompanies.Theleasedlandareasare42,920.00squaremetersand728,282.30squaremeters,respectively.Theleasetermis20years,witharentalpriceof1.138yuanpersquaremeterpermonth.Aftertheagreementtakeseffect,everyfiveyears,anevaluationwillbeconductedbasedonnationallawsandpoliciesandthepricingprinciplesstipulatedinArticle2oftheagreementtodeterminewhethertheleasechargesneedstobeadjusted.Thisrelated-partytransactionhasbeenreviewedandapprovedbytheCompany’s8thBoardofDirectorsatits3rdmeeting.
(4)AsofJune30,2025,theamountofunfulfilledirrevocablelettersofcreditwasRMB
1.496billion.
(2)Contingencies
AsofJune30,2025,theCompanyhasnosignificantcontingentmattersthatrequiredisclosure.
NotestothefinancialstatementsPage153
13.SubsequenteventsOnJuly22,2025,theCompanyissuedthe"AnnouncementontheProgressofMajorAssetReplacementandRelated-PartyTransactions".Thecompanyplanstoconductanassetreplacementwithitscontrollingshareholder,BenxiIronandSteel(Group)Co.,Ltd.Theproposedassettobeplacedinthecompanyis100%equityinBenxiIronandSteel(Group)MiningCo.,Ltd.,andtheproposedassettobedivestedisallofthelistedcompany'sassetsandliabilities,excludingretainedassetsandliabilities.Thedifferencebetweentheproposedassetstobeplacedinandtheproposedassetstobedivestedwillbemadeincashbyonepartytotheother.Currently,thespecificscopeofthetransaction'stargetassets,transactionprice,andotherfactorshavenotbeenfinalized,andthetwopartieshavenotyetsignedanyagreement.Thetransactionplanstillrequiresfurtherdiscussion,communication,andnegotiation,andissubjecttothenecessarydecision-makingandapprovalproceduresinaccordancewithrelevantlaws,regulations,andthecompany'sarticlesofassociation.Significantuncertaintyremainsregardingthesematters.
14.Othersignificantevents
(1)Correctionofpreviousaccountingerrors
1.RetrospectiveRestatementMethodTherewerenocorrectionsofpriorperiodaccountingerrorsusingtheretrospectiverestatementmethodduringthecurrentreportingperiod.
2.ProspectiveApplicationMethod
Therewerenocorrectionsofpriorperiodaccountingerrorsusingthefutureapplicationmethodinthecurrentreportingperiod.
(2)Segmentinformation
SincetheCompany'smainproductissteel,thesalesvolumeofotherproductsaccountsforarelativelysmallproportion,andthemainproductionbaseisinLiaoningProvince,itisnotapplicabletodisclosesegmentreports.
15.Notestothefinancialstatementsofparentcompany
1.Accountsreceivable
(1)Accountsreceivabledisclosedbyaging
| Items | 30June2025 | 31December2024 |
| Within1year(inclusive) | 914,625,356.19 | 775,949,268.73 |
| 1-2years(inclusive) | 108,300,699.30 | 5,786,445.58 |
| 2-3years(inclusive) | 4,952,094.14 | 126,254,788.19 |
NotestothefinancialstatementsPage154
| Items | 30June2025 | 31December2024 |
| 3-4years(inclusive) | 99,914,704.39 | 557,413.41 |
| 4-5years(inclusive) | 556,497.21 | 748,799.87 |
| Over5years | 98,134,252.64 | 97,491,074.53 |
| Sub-total | 1,226,483,603.87 | 1,006,787,790.31 |
| Less:Provisionforbaddebts | 136,902,674.25 | 107,374,488.69 |
| Total: | 1,089,580,929.62 | 899,413,301.62 |
NotestothefinancialstatementsPage155
(2)Accountsreceivabledisclosedbymethodofbaddebtprovision
| Items | 30June2025 | 31December2024 | ||||||||
| Grosscarryingamount | Provisionforbaddebts | Bookvalue | Grosscarryingamount | Provisionforbaddebts | Bookvalue | |||||
| Amount | Percentage(%) | Amount | Baddebtsratio(%) | Amount | Percentage(%) | Amount | Baddebtsratio(%) | |||
| Testedforimpairmentindividually | 48,196,244.68 | 3.93 | 48,196,244.68 | 100.00 | 48,196,244.68 | 4.79 | 48,196,244.68 | 100.00 | ||
| Testedforimpairmentbyportfolio | 1,178,287,359.19 | 96.07 | 88,706,429.57 | 7.53 | 1,089,580,929.62 | 958,591,545.63 | 95.21 | 59,178,244.01 | 6.17 | 899,413,301.62 |
| Include: | ||||||||||
| Agingportfolio | 864,698,567.49 | 70.50 | 88,706,429.57 | 10.26 | 775,992,137.92 | 313,614,474.73 | 31.15 | 59,178,244.01 | 18.87 | 254,436,230.72 |
| Risk-freeportfolio | 313,588,791.70 | 25.57 | 313,588,791.70 | 644,977,070.90 | 64.06 | 644,977,070.90 | ||||
| Total | 1,226,483,603.87 | 100.00 | 136,902,674.25 | 1,089,580,929.62 | 1,006,787,790.31 | 100.00 | 107,374,488.69 | 899,413,301.62 | ||
NotestothefinancialstatementsPage156
Significantaccountsreceivablestestedforimpairmentindividually:
| Name | 30June2025 | 31December2024 | ||||
| Accountsreceivable | Provisionforbaddebts | Baddebtsratio（%） | Reason | Accountsreceivable | Provisionforbaddebts | |
| BenxiNanfenXinheMetallurgicalCo.,Ltd. | 48,196,244.68 | 48,196,244.68 | 100.00 | Discontinued | 48,196,244.68 | 48,196,244.68 |
| Total | 48,196,244.68 | 48,196,244.68 | 48,196,244.68 | 48,196,244.68 | ||
Provisionforbaddebtsbasedonportfolioofcreditriskcharacteristics:
Provisionforbaddebtsbyportfolio:Aginganalysis
| Items | 30June2025 | ||
| Accountsreceivable | Provisionforbaddebts | Baddebtsratio(%) | |
| Within1year(inclusive) | 771,189,754.99 | 7,711,897.57 | 1.00 |
| 1-2years(inclusive) | 9,502,894.65 | 950,289.47 | 10.00 |
| 2-3years(inclusive) | 4,952,094.14 | 990,418.82 | 20.00 |
| 3-4years(inclusive) | 28,559,318.54 | 28,559,318.54 | 100.00 |
| 4-5years(inclusive) | 556,497.21 | 556,497.21 | 100.00 |
| Over5years | 49,938,007.96 | 49,938,007.96 | 100.00 |
| Total | 864,698,567.49 | 88,706,429.57 | |
(3)Informationofprovision,reversalorrecoveryofbaddebtsinthecurrentperiod
| Items | 31December2024 | Increase/decrease | 30June2025 | |||
| Accrued | Reversedorrecovered | Write-offorWrite-back | Otherchanges | |||
| Provisionforbaddebts | 107,374,488.69 | 29,528,185.56 | 136,902,674.25 | |||
| Total | 107,374,488.69 | 29,528,185.56 | 136,902,674.25 | |||
(4)Topfivedebtorsandcontractassetsattheendoftheperiod
| Company | Closingbalanceofaccountsreceivable | Closingbalanceofcontractassets | Closingbalanceofaccountsreceivableandcontractassets | Percentage(%) | Closingbalanceofprovisionforbaddebts |
| AngangGroupInternationalEconomic&TradeCo.,Ltd.BenxiBranch | 519,232,245.35 | 519,232,245.35 | 42.34 | 5,192,322.45 |
NotestothefinancialstatementsPage157
| Company | Closingbalanceofaccountsreceivable | Closingbalanceofcontractassets | Closingbalanceofaccountsreceivableandcontractassets | Percentage(%) | Closingbalanceofprovisionforbaddebts |
| BenxiBengangSteelSalesCo.,Ltd. | 120,738,345.20 | 120,738,345.20 | 9.84 | ||
| BengangPOSCOCoolRollingSteelSheetCo.,Ltd. | 73,909,761.19 | 73,909,761.19 | 6.03 | ||
| LiaoningNorthCoalChemicalIndustry(Group)Co.,Ltd. | 56,241,715.67 | 56,241,715.67 | 4.59 | 5,241,185.70 | |
| BengangRefractoriesCo.,Ltd. | 48,439,238.13 | 48,439,238.13 | 3.95 | 27,525,071.75 | |
| Total | 818,561,305.54 | 818,561,305.54 | 66.75 | 37,958,579.90 |
2.Otherreceivables
| Items | 30June2025 | 31December2024 |
| Interestreceivables | ||
| Dividendreceivables | 40,000,000.00 | 224,898,383.95 |
| Otherreceivables | 37,724,911.85 | 174,911,279.65 |
| Total | 77,724,911.85 | 399,809,663.60 |
1.Dividendreceivables
(1)Detailsofdividendsreceivable
| Items | 30June2025 | 31December2024 |
| BXSteelPOSCOColdRolledSheetCo.,Ltd. | 163,898,383.95 | |
| ChangchunBengangSteelSalesCo.,Ltd. | 3,000,000.00 | |
| GuangzhouBengangSteel&IronTradingCo.,Ltd. | 40,000,000.00 | 58,000,000.00 |
| Sub-total | 40,000,000.00 | 224,898,383.95 |
| Less:Provisionforbaddebts | ||
| Total | 40,000,000.00 | 224,898,383.95 |
(2)SignificantDividendsReceivableAgedOverOneYear
| Items | EndingBalance | Aging | ReasonforNon-recovery | ImpairmentAssessmentandBasis |
| GuangzhouBengangSteel&IronTradingCo.,Ltd. | 40,000,000.00 | 2-3years | Retainedforbusinessoperations,recoveredinthefollowingyear | No |
| Total | 40,000,000.00 |
NotestothefinancialstatementsPage158
2.Otherreceivables
(1)Otherreceivablesdisclosedbyaging
| Items | 30June2025 | 31December2024 |
| Within1year(inclusive) | 1,585,326.54 | 57,266,931.07 |
| 1-2years(inclusive) | 2,614,726.28 | 89,144,027.11 |
| 2-3years(inclusive) | 14,485,445.32 | 13,450,953.62 |
| 3-4years(inclusive) | 714,068.83 | 31,188,795.54 |
| 4-5years(inclusive) | 25,926,906.53 | 842,882.51 |
| Over5years | 52,979,511.11 | 52,141,851.60 |
| Sub-total | 98,305,984.61 | 244,035,441.45 |
| Less:Provisionforbaddebts | 60,581,072.76 | 69,124,161.80 |
| Total | 37,724,911.85 | 174,911,279.65 |
NotestothefinancialstatementsPage159
(2)Disclosedbybaddebtaccrualmethod
| Items | 30June2025 | 31December2024 | ||||||||
| Grosscarryingamount | Provisionforbaddebts | Bookvalue | Grosscarryingamount | Provisionforbaddebts | Bookvalue | |||||
| Amount | Percentage(%) | Amount | Baddebtsratio(%) | Amount | Percentage(%) | Amount | Baddebtsratio(%) | |||
| Provisionforbaddebtsindividually | 15,752,285.66 | 16.02 | 15,752,285.66 | 100.00 | 15,752,285.66 | 6.45 | 15,752,285.66 | 100.00 | ||
| Provisionforbaddebtsbasedonportfolio | 82,553,698.95 | 83.98 | 44,828,787.10 | 54.30 | 37,724,911.85 | 228,283,155.79 | 93.55 | 53,371,876.14 | 23.38 | 174,911,279.65 |
| Include: | ||||||||||
| Agingportfolio | 60,286,570.27 | 61.33 | 44,828,787.10 | 74.36 | 15,457,783.17 | 201,016,027.11 | 82.37 | 53,371,876.14 | 26.55 | 147,644,150.97 |
| Risk-freeportfolio | 22,267,128.68 | 22.65 | 22,267,128.68 | 27,267,128.68 | 11.17 | 27,267,128.68 | ||||
| Total | 98,305,984.61 | 100.00 | 60,581,072.76 | 37,724,911.85 | 244,035,441.45 | 100.00 | 69,124,161.80 | 174,911,279.65 | ||
NotestothefinancialstatementsPage160
Significantotherreceivablestestedforimpairmentindividually:
| Items | 30June2025 | 31December2024 | ||||
| Grosscarryingamount | Provisionforbaddebts | Baddebtsratio(%) | Basisofaccrual | Grosscarryingamount | Provisionforbaddebts | |
| BenxiIronandSteel(Group)No.3ArchitecturalEngineeringCo.,Ltd. | 12,504,978.59 | 12,504,978.59 | 100.00 | Discontinued | 12,504,978.59 | 12,504,978.59 |
| Total | 12,504,978.59 | 12,504,978.59 | 12,504,978.59 | 12,504,978.59 | ||
Provisionforbaddebtbyportfolioofcreditriskcharacteristics:
Provisionforbaddebtsbyportfolio:Aginganalysis
| Items | 30June2025 | ||
| Otherreceivables | Provisionforbaddebts | Baddebtsratio(%) | |
| Within1year(inclusive) | 1,568,676.46 | 15,686.77 | 1.00 |
| 1-2years(inclusive) | 2,573,819.13 | 257,381.91 | 10.00 |
| 2-3years(inclusive) | 14,485,445.32 | 2,897,089.06 | 20.00 |
| 3-4years(inclusive) | 714,068.83 | 714,068.83 | 100.00 |
| 4-5years(inclusive) | 3,072,337.08 | 3,072,337.08 | 100.00 |
| Over5years | 37,872,223.45 | 37,872,223.45 | 100.00 |
| Total | 60,286,570.27 | 44,828,787.10 | |
(3)Detailsofprovisionforbaddebts
| Provisionforbaddebts | Stageone | Stagetwo | Stagethree | Total |
| 12-monthexpectedcreditlosses | Lifetimeexpectedcreditlosses(creditimpairmenthasnotoccurred) | Lifetimeexpectedcreditlosses(creditimpairmenthasalreadyoccurred) | ||
| Beginningbalance | 572,260.25 | 11,604,593.43 | 56,947,308.12 | 69,124,161.80 |
| Beginningbalanceincurrentperiod | ||||
| --TransfertoStagetwo | -514,763.83 | 514,763.83 | ||
| --TransfertoStagethree | -714,068.83 | 714,068.83 | ||
| --ReversaltoStagetwo | ||||
| --ReversaltoStageone | ||||
| Currentperiodprovision | -41,809.65 | -8,250,817.46 | -250,461.93 | -8,543,089.04 |
| Currentperiodreversal | ||||
| Currentperiodwrite-back | ||||
| Currentperiodwrite-off | ||||
| Otherchange | ||||
| Endingbalance | 15,686.77 | 3,154,470.97 | 57,410,915.02 | 60,581,072.76 |
(4)Provisionforbaddebtsaccrued,reversedorrecoveredinthecurrentperiod
NotestothefinancialstatementsPage161
| Items | 31December2024 | Changesduringthecurrentperiod | 30June2025 | |||
| Accrual | Reversalorrecovered | Write-backorwrite-off | Others | |||
| Provisionforbaddebts | 69,124,161.80 | -8,543,089.04 | 60,581,072.76 | |||
| Total | 69,124,161.80 | -8,543,089.04 | 60,581,072.76 | |||
(5)Otherreceivablesdisclosedbynature
| Nature | 30June2025 | 31December2024 |
| Compensationforthe“LivingShowbelt”project | 87,177,700.00 | |
| Currentaccount | 95,149,222.98 | 153,899,831.94 |
| Others | 3,156,761.63 | 2,957,909.51 |
| Total | 98,305,984.61 | 244,035,441.45 |
(6)Topfivedebtorsattheperiodend
| Company | Nature | Amount | Aging | Percentageoftotalotherreceivables(%) | Provisionforbaddebts |
| YantaiBengangSteelSalesCo.,Ltd. | Currentaccount | 22,267,128.68 | 4-5years | 22.65 | - |
| BenxiIronandSteel(Group)No.3ArchitecturalEngineeringCo.,Ltd. | Currentaccount | 12,504,978.59 | 4-5years,over5years | 12.72 | 12,504,978.59 |
| BenxiIronandSteel(Group)No.1ArchitecturalEngineeringCo.,Ltd. | Currentaccount | 3,247,307.07 | Over5years | 3.30 | 3,247,307.07 |
| BenxiIronandSteel(Group)Co.,LTD | Currentaccount | 2,674,500.00 | 1-2years,2-3years | 2.72 | 413,000.00 |
| LiaoningHuaweiCoalPreparationCo.,Ltd. | Currentaccount | 2,261,360.00 | Over5years | 2.30 | 2,261,360.00 |
| Total | 42,955,274.34 | 43.69 | 18,426,645.66 |
3.Long-termequityinvestment
| Items | 30June2025 | 31December2024 | ||||
| Grosscarryingamount | Impairment | Bookvalue | Grosscarryingamount | Impairment | Bookvalue | |
| Subsidiaries | 2,422,543,459.43 | 2,422,543,459.43 | 2,391,943,459.43 | 2,391,943,459.43 | ||
| JointVenturesandAssociates | 45,413,221.72 | 45,413,221.72 | 45,413,221.72 | 45,413,221.72 | ||
| Total | 2,467,956,681.15 | 2,467,956,681.15 | 2,437,356,681.15 | 2,437,356,681.15 | ||
NotestothefinancialstatementsPage162
(1)Detailsofinvestmentinsubsidiaries
| Nameofentity | Beginningbalance | Beginningbalanceofimpairment | ChangesintheCurrentPeriod | Endingbalance | Endingbalanceofimpairment | |||
| AdditionalInvestment | ReductioninInvestment | ProvisionsofImpairmentofcurrentperiod | Others | |||||
| ShanghaiBengangMetallurgyScienceandTechnologyCo.,Ltd. | 229,936,718.57 | 229,936,718.57 | ||||||
| BenxiBengangSteelSalesCo.,Ltd. | 30,000,000.00 | 30,000,000.00 | ||||||
| BengangPOSCOColdRolledSheetCo.,Ltd. | 1,019,781,571.10 | 1,019,781,571.10 | ||||||
| TianjinBengangSteel&IronTradingCo.,Ltd. | 230,318,095.80 | 230,318,095.80 | ||||||
| ChangchunBengangSteelSalesCo.,Ltd. | 28,144,875.36 | 28,144,875.36 | ||||||
| YantaiBengangSteel&IronSalesCo.,Ltd. | 219,100,329.41 | 219,100,329.41 | ||||||
| GuangzhouBengangSteel&IronTradingCo.,Ltd. | 200,000,000.00 | 200,000,000.00 | ||||||
| DalianBenruitongAutomotiveMaterialsTechnologyCo.,Ltd. | 65,000,000.00 | 65,000,000.00 | ||||||
| ShenyangBengangMetallurgicalScienceandTechnologyCo.,Ltd. | 200,000,000.00 | 200,000,000.00 | ||||||
| NorthHengdaLogisticsCo.,Ltd. | 169,661,869.19 | - | 169,661,869.19 | |||||
| GreenGold(Benxi)RenewableResourcesCo.,Ltd. | 30,600,000.00 | 30,600,000.00 | ||||||
| Total | 2,391,943,459.43 | 30,600,000.00 | 2,422,543,459.43 | - | ||||
(2)DetailsofinvestmentinAssociatesandJointVentures
Forinvestmentsinassociatesandjointventures,pleaserefertoNoteV(9)Long-termEquityInvestments.
NotestothefinancialstatementsPage163
4.OperatingIncomeandOperatingCost
(1)Operatingincomeandoperatingcost
| Items | Currentperiod | Previousperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Principalbusiness | 24,194,919,372.80 | 25,098,732,350.98 | 28,086,225,442.07 | 29,148,262,789.55 |
| Otherbusiness | 648,195,035.42 | 645,476,449.44 | 673,924,129.88 | 685,977,515.04 |
| Total | 24,843,114,408.22 | 25,744,208,800.42 | 28,760,149,571.95 | 29,834,240,304.59 |
(2)Breakdownofoperatingincomeandoperatingcost
| Item | Currentperiod | Previousperiod | ||
| Revenue | Cost | Revenue | Cost | |
| ByTimingofGoodsTransfer: | ||||
| Recognizedatapointintime | 24,194,919,372.80 | 25,098,732,350.98 | 644,628,717.14 | 645,468,901.56 |
| Recognizedoveraperiodoftime | 3,566,318.28 | 7,547.88 | ||
| Total | 24,194,919,372.80 | 25,098,732,350.98 | 648,195,035.42 | 645,476,449.44 |
| ByOperatingRegion: | ||||
| Domestic | 20,230,392,316.61 | 21,073,058,305.06 | 648,195,035.42 | 645,476,449.44 |
| Overseas | 3,964,527,056.19 | 4,025,674,045.92 | ||
| Total | 24,194,919,372.80 | 25,098,732,350.98 | 648,195,035.42 | 645,476,449.44 |
5.Incomeoninvestment
| Items | Currentperiod | Previousperiod |
| Incomeonlong-termequityinvestmentbycostmethod | ||
| Incomeonlong-termequityinvestmentbyequitymethod | ||
| Incomearisingfromdebtrestructuring | 6,934.05 | |
| Others | -17,366,881.57 | -31,605,308.28 |
| Total | -17,359,947.52 | -31,605,308.28 |
16.SupplementaryInformation
(1)DetailsofNon-recurringGainsandLossesfortheCurrentPeriod
| Item | Amount | Note |
| Gainsorlossesfromdisposalofnon-currentassets,includingthereversalofpreviouslyrecognizedimpairmentlosses | -31,536,907.02 | |
| Governmentgrantsrecognizedinprofitorlossfortheperiod,exceptthosecloselyrelatedtothecompany’snormaloperations,inaccordancewithnationalpolicies,enjoyedaccordingtodeterminedstandards,andhavingacontinuouseffectonthecompany’sprofit | 78,993,583.13 |
NotestothefinancialstatementsPage164
| Item | Amount | Note |
| orloss | ||
| Gainsorlossesarisingfromchangesinfairvalueoffinancialassetsandfinancialliabilitiesheldbynon-financialenterprises,andfromdisposalofsuchfinancialassetsandliabilities,exceptforeffectivehedgingrelatedtothecompany’snormaloperations | ||
| Feesfortheoccupationoffundschargedtonon-financialenterprisesandrecognizedinprofitorloss | ||
| Gainsorlossesfromentrustingotherstoinvestormanageassets | ||
| Gainsorlossesfromentrustedloanstoexternalparties | ||
| Lossesonassetsduetoforcemajeure,suchasnaturaldisasters | ||
| Reversalofimpairmentprovisionsforindividuallytestedreceivables | 10,820,884.61 | |
| Gainsarisingwhenthecostofacquiringinvestmentsinsubsidiaries,associates,orjointventuresislessthanthefairvalueofidentifiablenetassetsacquired | ||
| Netprofitorlossofsubsidiariesfromthebeginningoftheperiodtothedateofbusinesscombinationundercommoncontrol | ||
| Gainsorlossesfromnon-monetaryassetexchanges | ||
| Gainsorlossesfromdebtrestructuring | 7,215.64 | |
| One-offexpensesarisingfromdiscontinuationofrelatedbusinessactivities,suchasemployeeresettlementcosts | ||
| One-offimpactonprofitorlossduetoadjustmentsintaxes,accounting,orotherlawsandregulations | ||
| One-offrecognitionofshare-basedpaymentexpensesduetocancellationormodificationofequityincentiveplans | ||
| Gainsorlossesarisingfromfairvaluechangesofcash-settledshare-basedpaymentsafterthevestingdate | ||
| Gainsorlossesfromchangesinfairvalueofinvestmentpropertiesmeasuredusingthefairvaluemodel | ||
| Gainsfromtransactionswithmanifestlyunfairprices | ||
| Gainsorlossesarisingfromcontingentmattersunrelatedtothecompany’snormaloperations | ||
| Trusteeoperationmanagementfees | ||
| Othernon-operatingincomeandexpensesnotincludedabove | 4,740,318.97 | |
| Othergainsandlossesmeetingthedefinitionofnon-recurringprofitorloss | ||
| Subtotal | 63,025,095.33 | |
| Impactofincometax | 13,042,387.54 | |
| Impactofminorityinterests(aftertax) | -1,119,307.09 | |
| Total | 51,102,014.88 |
(2)Returnonequityandearningspershare
| ProfitintheReportingPeriod | WeightedAverageReturnonEquity(%) | EarningsperShare(CNY) | |
| BasicEPS | DilutedEPS | ||
| NetprofitattributabletoshareholdersoftheCompany’sordinaryshares | -12.50 | -0.341 | -0.341 |
| NetprofitattributabletoshareholdersoftheCompany’sordinarysharesafterdeductingnon-recurringgainsandlosses | -12.98 | -0.353 | -0.353 |
Note:Assumingthatthecompany’sconvertiblebondsareconvertedintoordinaryshares,thenumberofoutstandingordinarysharesfortheperiodwouldincreaseby1,422,465,070.11shares,andnetprofitwouldincreasebyCNY213,977,737.80,resulting
NotestothefinancialstatementsPage165
inanincreaseinearningspershareofCNY0.08pershare.Thisindicatesthatsuchpotentialordinarysharesareanti-dilutiveratherthandilutive;therefore,theyarenotconsideredinthecalculationofdilutedearningspershare.Dilutedearningspersharearedeterminedbasedonbasicearningspershare.