Bengang Steel Plates Co., Ltd. Interim Report 2026
Bengang Steel Plates Co., Ltd.
Interim Report 2026
【August 2026】
Bengang Steel Plates Co., Ltd. Interim Report 2026
Ⅰ. Important Notice, Table of Contents, and Definitions
The Board of Directors, the Supervisory Board, and all Directors, Supervisors, and Senior
Management of the Company ensure the authenticity, accuracy, and completeness of this annual
report and confirm that there are no false records, misleading statements, or material omissions.
They assume individual and joint legal responsibility for the report.
Wang Zhanwei, the person in charge of the company, Liu Tiecheng, the person in charge of
accounting work, and E Jianan, the person in charge of the accounting organization (accounting
officer), hereby confirm that the financial report in this annual report is true, accurate and complete.
All directors have attended the board meeting for reviewing this report.
This report involves forward-looking statements such as future plans, which do not constitute a
substantial commitment of the company to investors. Investors are advised to pay attention to
investment risks. This report is prepared in Chinese and English respectively. In the event of
discrepancies in the interpretation of Chinese and foreign texts, the Chinese version shall prevail.
The Company has described the existing risks and countermeasures in detail in this report, please
refer to the content of Section 3-10 "Risks Faced by the Company and Countermeasures". "China
Securities Journal", "Securities Times", "Hong Kong Commercial Daily" and Juchao Information
Network (www.cninfo.com.cn) are selected as the company's information disclosure media. All
information of the company is subject to the information published in the above-mentioned
designated media. Investors are kindly advised to pay attention to investment risks.
The Company plans not to pay cash dividends, issue bonus shares, or convert capital reserves into
share capital.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Table of Contents
Bengang Steel Plates Co., Ltd. Interim Report 2026
Reference File Directory
officer, and chief accountant;
reporting period;
Bengang Steel Plates Co., Ltd. Interim Report 2026
Definition
Terms to be defined Refers to Content of Definition
Bengang Bancai, the Company, the
Refers to Bengang Steel Plates Co., Ltd.
Listed Company
Ansteel Refers to Ansteel Group Co., Ltd.
Bengang Group Refers to Bengang Group Co., Ltd.
Bengang Steel Co., Bengang Co. Refers to Benxi Steel & Iron (Group) Co., Ltd.
SSE Refers to Shenzhen Stock Exchange
Liaoning Provincial State-asset Liaoning State-owned Asset Supervisory and
Refers to
Administration Management Committee
Bengang Posco Refers to Bengang Posco Cold-rolled Sheet Co., Ltd.
Ansteel Finance Co. Refers to Ansteel Group Finance Co., Ltd.
Angang Refers to Angang Steel Company Limited
Pangang Group Vanadium & Titanium Resources
Vanadium & Titanium Co. Refers to
Co., Ltd.
Linggang Refers to Lingyuan Iron & Steel Co., Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Ⅱ. Company Profile and Main Financial Index
I. Company Information
Stock abbreviation Bengang Bancai, Bengangban B Stock Code 000761, 200761
Stock exchange for listing Shenzhen Stock Exchange
Company name in Chinese 本钢板材股份有限公司
Abbreviation of Company
name in Chinese 本钢板材
Company name in English
(If any) BENGANG STEEL PLATES CO., LTD.
Abbreviation of Company
name in English (If any) BSP
Legal representative Wang Zhanwei
II. Contact Information
Secretary of the Board Representative of Stock Affairs
Name Liu Tiecheng Chen Liwen
No1-1 Gangtie Road, Pingshan District, No1-1 Gangtie Road, Pingshan District,
Address
Benxi City, Liaoning Province Benxi City, Liaoning Province
Tel 024-47827003 024-47828980
Fax 024-47827004 024-47827004
Email ltcjldd@163.com bgbc000761@126.com
III. Other Information
Whether there are any changes in the Company's registered address, office address and its postal code, official website,
and email address during the reporting period
□Applicable ?Not applicable
There were no changes to the company's registered address, office address (including postal code), website, or email
address during the reporting period; for details, please refer to the 2025 annual report.
Whether there are any changes in information disclosure media and location for document inspection during the
reporting period
□Applicable ?Not applicable
Bengang Steel Plates Co., Ltd. Interim Report 2026
There were no changes during the reporting period regarding the websites and media outlets (including their URLs)
where the company discloses its semi-annual reports, nor regarding the location where the semi-annual reports are kept
available; for details, please refer to the 2025 annual report.
Changes in other relevant information during the reporting period
□Applicable ?Not applicable
IV. Key accounting data and financial indicators
Whether the Company needs to retrospectively adjust or restate the accounting data of previous years
□Yes ?No
Changes over previous
Current period Previous period
period
Operating income（RMB） 22,335,640,944.40 24,697,800,421.99 -9.56%
Net profit attributable to the
shareholders of the listed company -1,907,548,241.52 -1,399,277,780.90 -36.32%
（RMB）
Net profit after deducting of
non-recurring gain/loss attributable
-1,926,587,790.58 -1,450,379,795.78 -32.83%
to the shareholders of listed
company（RMB）
Net Cash flow generated by
business operation（RMB）
Basic earnings per share
-0.464 -0.341 -36.07%
(RMB/Share)
Diluted earnings per share
-0.464 -0.341 -36.07%
(RMB/Share)
Weighted average net assets yield -27.29% -12.50% -14.79%
Changes over the end of the
previous year
Total assets（RMB） 45,899,118,732.58 45,770,013,536.58 0.28%
Net assets attributable to
shareholders of the listed company 5,096,022,852.66 7,935,782,007.83 -35.78%
（RMB）
V. Differences between CAS and IFRS
accounting standards.
□Applicable ?Not applicable
There are no differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese accounting
standards during the reporting period.
Bengang Steel Plates Co., Ltd. Interim Report 2026
accounting standards.
□Applicable ?Not applicable
There are no differences of net profit and net assets disclosed in financial reports prepared under IFRS and Chinese accounting
standards during the reporting period.
VI. Items and Amount of Non-recurring Profits and Losses
?Applicable □Not applicable
Unit：RMB
Items Amount Notes
Gains and losses on disposal of non-current assets (including
-22,011,971.70
the write off part of the provision for impairment)
Government subsidy attributable to profit and loss of current
period (except such government subsidy closely related to the
company's normal business operation, meeting the regulation 52,916,603.16
of national policy and enjoyed constantly in certain quota or
quantity according to a certain standard)
Gains and losses of debt restructuring 53,299.22
Other non-operating income and expenses other than above -6,552,754.01
Less: impact of income tax 4,090,301.81
impact on Non-controlling Interests (after tax) 1,275,325.80
Total 19,039,549.06 --
Specific circumstances of other items that meet the definition of non-recurring gains and losses:
□Applicable ?Not applicable
The company has no other specific circumstances that meet the definition of non-recurring gains and losses.
Explanation of situations where non-recurring gains and losses items listed in the "Public Offering of Securities Information
Disclosure Explanatory Notice No. 1 – Non-Recurring Gains and Losses" are defined as recurring gains and losses items.
□Applicable ?Not applicable
The company has no situations where non-recurring gains and losses items listed in the "Public Offering of Securities Information
Disclosure Explanatory Notice No. 1 – Non-Recurring Gains and Losses" are defined as recurring gains and losses items.
Bengang Steel Plates Co., Ltd. Interim Report 2026
III. Management Discussion and Analysis
I. Main Business Operations During the Reporting Period
The company operates within the iron and steel industry—a fundamental sector of China's national economy that serves
as a crucial pillar for building a modern, powerful nation and a key area for achieving green, low-carbon development.
In the first half of 2026, the domestic steel industry was characterized by contracting supply, structurally divergent
demand, high costs, and profit pressures, with a distinct pattern of "strong flat products versus weak long products."
Guided by policies to "control total volume, optimize supply, strengthen foundations, and drive transformation," the
industry continued to regulate crude steel output and accelerate structural upgrades; however, uneven downstream
demand recovery and an inverted relationship between raw material costs and product prices squeezed profit margins,
intensifying overall operational pressure. Data from the National Bureau of Statistics and the China Iron and Steel
Association indicate that national output for crude steel, pig iron, and finished steel products all declined year-on-year
during the first six months of 2026. Cumulative crude steel output reached 500 million tonnes (down 3.0%
year-on-year); pig iron output was 427 million tonnes (down 2.8%); and finished steel output was 719 million tonnes
(down 0.9%). The China Steel Price Index (CSPI) fluctuated within a narrow range during the first half of the year, with
the average price edging down; steel price increases failed to offset the rise in raw material costs. On the cost side, the
market showed a trend of "strong coke versus weak ore": iron ore prices declined slightly, while prices for coking coal
and coke surged, driving up full-process smelting costs and widening the scope of industry-wide losses. Regarding
market demand, domestic steel consumption showed significant divergence; the real estate market remained at a low
ebb, causing a sharp drop in demand for long steel products used in construction. Conversely, demand for flat steel
products remained resilient, driven by sectors such as shipbuilding, offshore wind power, new energy vehicles, and
equipment manufacturing; the share of steel consumed by the manufacturing sector continued to rise, serving as a core
pillar of industry demand. Import and export activities faced pressure; overseas trade barriers and the implementation of
carbon tariff policies hampered steel exports, resulting in a year-on-year decline in total export volume — though
high-end flat steel exports demonstrated greater resilience than ordinary carbon construction steel—while steel imports
continued to contract.
During the reporting period, the Company’s primary business activities included iron and steel smelting, rolling and processing,
power generation, coal chemicals, special steel profiles, railway operations, import and export trade, scientific research, and product
sales. It has essentially established a premium steel production base centered on automotive steel, offering a product portfolio
comprising over 60 varieties and more than 7,500 specifications. Its flagship products—such as automotive exterior panels, home
appliance sheets, oil pipeline steel, container plates, and shipbuilding plates—are widely used in sectors including automotive
manufacturing, home appliances, petrochemicals, aerospace, machinery manufacturing, energy and transportation, construction and
decoration, and metal products, and are exported to over 60 countries and regions. There were no significant changes to the
Company's core business during the reporting period.
Procurement Model: The Company's procurement model encompasses both domestic and international procurement. Domestic
procurement is conducted through collaborative purchasing, centralized tendering (both public and invited), price inquiries and
comparisons, competitive bidding, and negotiations. International procurement is carried out via long-term agreements, direct
purchasing, public and invited tendering, price inquiries and comparisons, competitive negotiations, and consultative purchasing;
these activities are primarily handled by Angang International Trade, Benxi Branch.
Sales Model: The company's sales operations are divided into domestic and export markets. Domestic sales primarily focus on
futures-based transactions, utilizing distribution channels centered on direct supply, general distribution, and engineering projects.
Contract orders are organized in advance on a monthly basis, and production is subsequently scheduled in accordance with these
orders. Tailored to the specific characteristics of different regions, distribution channels, and industries, the company implements a
Bengang Steel Plates Co., Ltd. Interim Report 2026
variety of pricing strategies and sales methods—including deferred settlement for futures, "one factory, one policy" approaches, and
index-based pricing. Export sales are handled by Ansteel International Trade, Benxi Branch, which acts as the company's export
agent, with the company covering the associated agency fees.
During the reporting period, the Company closely adhered to the strategic deployment of "concentrating efforts to tackle five key
priorities and achieving new starts in three areas." It fully implemented the requirements to "focus on one central theme, anchor
development in three transformations, enhance four key capabilities, and achieve five new breakthroughs," while steadfastly
advancing the "0115" guiding principles and maintaining a work style characterized by rigor, meticulousness, and pragmatism.
(1) By prioritizing technological innovation, the company has achieved new breakthroughs in high-end development. Anchored in
technological innovation and a strategy focused on high-end products, the company has tackled the challenges of developing
"extreme-specification" products and concentrated on enhancing quality and efficiency through core controlled-rolling and
controlled-cooling processes. It has continuously refined its process systems, optimized production line performance, and expanded
its presence in high-end markets. Significant breakthroughs were achieved in mastering technologies for extreme specifications.
Through targeted R&D efforts—including optimizing coil properties, redesigning alloy compositions, and iterating rolling
processes—the company successfully established a production workflow on its 2300 hot-rolling line for ultra-wide, ultra-thick
plates (ranging from 20–28 mm in thickness and 2,000–2,190 mm in width). The launch of the 2,190 mm extreme-width product
marked a global first, creating a flagship domestic product in this category and filling a gap in the industry.
(2) By harnessing the power of digital enablement, the company has achieved significant new milestones in intelligent development.
Committed to driving industrial model transformation through intelligence, the company has upgraded from an "experience-driven"
approach to a dual-driver model powered by both data and algorithms, earning the AAAA-level certification for the national
management system for the integration of industrialization and information technology. Efforts to accelerate industrial
digital-intelligence integration have been intensified; by establishing a "smart model matrix" that connects the entire data
chain—spanning steelmaking, hot rolling, and cold rolling—the company now covers five key dimensions: process optimization,
predictive equipment maintenance, precision energy management, marketing decision support, and precise quality traceability.
Smart models are being implemented and delivering results in a phased, categorized manner. Focusing on core areas such as cost
accounting, lean operations, and value creation, the company has successfully developed and deepened the application of 41 smart
models.
(3) Focusing on the "Dual Carbon" strategy, the company has made significant strides in its green transformation. Guided by this
strategy and targeting key production processes—coking, sintering, ironmaking, steelmaking, and rolling—the company has
intensified management upgrades, process improvements, and the optimization of its energy structure. It has continued to
consolidate the results of its ultra-low emission retrofitting. By implementing comprehensive ultra-low emission controls covering
organized emissions, fugitive emissions, and clean transportation, the company has substantially elevated its environmental
management standards, achieving a 25.7% year-on-year reduction in pollutant emissions. Efforts to achieve world-class energy
efficiency have accelerated; key energy projects were successfully executed, with two 135MW power generation units successfully
connected to the grid. Production operations were reorganized with a focus on energy efficiency; in June, the self-generated power
ratio exceeded 80% and utility costs (water and electricity) fell below 80 yuan per unit, marking the first time the "Double 80"
targets were surpassed and setting a historic record. Energy conversion efficiency improved dramatically, with the self-generated
power ratio reaching the industry's 90th percentile, and cumulative converter gas recovery hitting a record high of 139.2 m?/t.
II. Core Competence Analysis
The company adheres to an innovation-driven approach and a "premium + service" development model, with strategic goals to build
an internationally competitive premium steel plate base, a leading domestic special steel base, and a comprehensive service provider.
By playing a leading role in strategy, the company focuses on quality improvement, efficiency enhancement, product upgrades,
technological innovation, and green and smart manufacturing. These efforts aim to innovate business management strategies,
enhance core competitiveness, and drive high-quality, green, and smart development.
deepened the operation of "virtual business units," extending cost-conscious management to every production line, product variety,
and job role. Efforts focused on enhancing "eight key efficiency metrics" and optimizing production line positioning to ensure
high-efficiency output for active lines while minimizing expenses for idle ones. The company advanced efficiency improvements
across the entire value chain, implementing an operational model defined by "extreme satisfaction, extreme efficiency, and extreme
cost control." First, production efficiency improved; in the first half of the year, the company broke various production records 151
times, setting an all-time high. Second, production costs continued to decline. Third, technical and quality capabilities advanced, with
cumulative production of automotive steel sheets reaching 1.2308 million tons.
billion. Projects implemented include the rainwater-sewage separation upgrade for the Steelmaking Plant and Fujinhe River area; the
quality and efficiency enhancement upgrade for the No. 5 galvanizing line at the Cold Rolling Plant (targeting high-grade products);
the upgrade of the Bengang-POSCO No. 3 galvanizing line for high-grade automotive sheet production; and a new round of
large-scale technological, IT, and environmental upgrades—exemplified by the "smart factory" transformation of the Hot Strip Mill's
Bengang Steel Plates Co., Ltd. Interim Report 2026
(vibrating screens and passive dust removal) at the Resource Service Branch, and the enclosure of conveyor belt head/tail pulleys and
feed points at the Ironmaking Plant have all been put into operation; meanwhile, the quality and efficiency enhancement project for
the Hot Strip Mill's 2300 line is proceeding steadily.
enameling steel, thereby filling a gap in its product portfolio. Through targeted technical breakthroughs, it achieved stable production
of CCSB-grade shipbuilding plate steel in an ultra-thick specification (26.0 mm); the product has passed China Classification Society
(CCS) certification and is qualified for supply. Significant progress was made in expanding overseas markets; regarding exported
high-end grinding ball steel, process optimization resolved technical bottlenecks in ultrasonic Class A flaw detection for
large-specification products and overcame issues such as high defect rates during the straightening of high-carbon steel.
University on the project "Research on Edge Cracking in DP980-DH980 High-Strength Steel Under Complex Loading Conditions,"
facilitating the transfer of mature technological achievements from universities and research institutes to the enterprise. Regarding
standards, the company is currently developing four international standards, nine national standards, and one group standard; the
revision of the ISO 9681 international standard, led by the company, has been completed and is undergoing pre-publication review,
while the revision of three national standards—including GB/T 17600—has also been completed and submitted to the
Standardization Administration of China for review. In terms of intellectual property, the company filed 69 patent applications
(including 47 for inventions) and was granted 37 patents (including 28 for inventions). Regarding technological achievements, the
company won two provincial- or ministerial-level Science and Technology Progress Awards: the project "Collaborative Technology
for Digital-Enabled Automotive Steel Forming, Crash Safety, and Lightweighting, and Its Full-Chain Engineering Transformation"
received the Second Prize of the Liaoning Province Science and Technology Award, and the project "Development and Large-Scale
Engineering Application of Key Technologies for Precision Forming and Crash Safety of High-Performance Automotive Steel Under
Complex Loads" won the Third Prize of the Science and Technology Innovation Award from the China Industry-University-Research
Institute Collaboration Association.
certification of low-carbon steel grades, and the development of a carbon management platform. It has successfully secured
certification for three low-carbon steel grades—including pickled steel SPH270D—for Toyota’s technical reserve projects, as well as
for deep-drawing steel St04D+Z and 590DPD+Z for FAW’s technical reserve projects; additionally, it obtained certification for
hot-dip galvanized green steel DC53D+Z intended for use in Sony TV back panels. By pioneering a combined process route utilizing
"blast furnace hot metal + electric arc furnace (EAF) molten steel (100% scrap)," the company has launched the production of
low-carbon automotive steel. Three process models have been explored: a 220t hot metal + 120t special steel molten steel model
(35% scrap ratio); a 170t hot metal + 170t special steel molten steel model (50% scrap ratio); and a 50t hot metal + 200t molten steel
model (80% scrap ratio). These models enable carbon emission reductions ranging from 30% to 60%. To enhance its competitiveness
in product carbon management and meet the requirements of high-end supply chains, the company is collaborating with Baosight
Software to build a carbon management platform; the project has currently entered the implementation phase.
intelligent transformation of production processes, the company has steadily implemented smart manufacturing. Intelligent projects
launched in 2025—including the smart factory in the No. 3 Cold Rolling area, Phase II of the integrated quality data management
platform, and the adaptation of the plate information system for independent and controllable operation—have already seen full or
partial functional deployment. Plans for 2026 include investments in Phase II of the plate information system adaptation and the
smart factory upgrade for the 2300mm hot continuous rolling line. Driven by digital and intelligent technological innovation, the
company has achieved a data assetization rate of 92%. It has deployed 26 robotic units for "3D" tasks (dirty, dangerous, and
demanding)—such as blast furnace inspections, temperature measurement and sampling, and slag removal—raising the automation
substitution rate from 9% to 32%. The Smart Index score reached 82.67, marking a transition from the "integration" level to the
"optimization" level—a 19.36% increase from the previous 69.26—thereby accelerating the pace of smart manufacturing for its plate
products. The company has been recognized as an "Excellent-Level Smart Factory" by the Ministry of Industry and Information
Technology (MIIT) and an "Advanced-Level Smart Factory" by the Liaoning Provincial Department of Industry and Information
Technology; it was also named a "Smart Steel Demonstration Unit" at the 10th Smart Steel Technology and Equipment Development
Conference and a benchmark enterprise for digital transformation in Liaoning Province, while successfully obtaining AAAA-level
certification for the integration of industrialization and informationization.
III. Main Business Analysis
Overview
Please refer to the section "I. Main Business Operations During the Reporting Period."
Year-over-year changes in key financial data
Unit: RMB
Bengang Steel Plates Co., Ltd. Interim Report 2026
Change over last
Current period Previous period Reason
year
Operating income 22,335,640,944.40 24,697,800,421.99 -9.56%
Operating cost 23,417,107,587.05 25,441,217,248.92 -7.96%
Selling and distribution
expenses
General and
administrative 270,993,726.11 285,764,896.43 -5.17%
expenses
Attributable to an increase in
interest expenses on
Financial expenses 262,347,038.94 208,340,955.08 25.92% interest-bearing liabilities and
exchange losses during the
current period.
Due to factors such as the
recognition of deferred
Income tax expenses 68,072,357.45 19,976,028.30 240.77% income tax for the period and
an increase in taxes and fees
paid.
R&D expenses 735,966,482.00 947,389,590.00 -22.32%
Due to a decrease in cash
Net cash flows from
operating activities
the current period.
Due to a decrease in cash
payments for the acquisition
Net cash flows from
-835,819,961.61 -948,969,224.56 11.92% and construction of long-term
investing activities
assets during the current
period.
Due to factors such as the
Net cash flows from repayment of maturing
financing activities convertible bonds and an
increase in bank borrowings.
Attributable to factors such as
a decrease in cash outflows
for purchases and the
Net increase in cash acquisition or construction of
and cash equivalents long-term assets, as well as an
increase in bank borrowings
obtained to repay maturing
convertible bonds.
Significant changes in the composition or sources of the Company's profits during the reporting period.
□Applicable ?Not applicable
There were no significant changes in the composition or sources of the company's profit during the reporting
period.
Breakdown of Operating Revenue
Unit：RMB
Current period Previous period Change over
Bengang Steel Plates Co., Ltd. Interim Report 2026
Amount Proportion Amount Proportion last year
Total operating
revenue
By industries
Industry 22,335,640,944.40 100.00% 24,697,800,421.99 100.00% -9.56%
By product
Steel plate 21,230,381,832.17 95.05% 23,720,436,767.59 96.04% -10.50%
Others 1,105,259,112.23 4.95% 977,363,654.40 3.96% 13.09%
By region
Domestic 18,498,429,591.74 82.82% 20,437,177,010.22 82.75% -9.49%
International 3,837,211,352.66 17.18% 4,260,623,411.77 17.25% -9.94%
Industries, products, regions, or sales models accounting for more than 10% of the company's revenue or
operating profit
?Applicable □Not applicable
Unit：RMB
Operating Operating Gross
Operating Gross income costs change margin
Operating costs
revenue margin change over over last change over
last year year last year
By industries
Industry -4.84% -9.56% -7.96% -1.83%
By product
Steel plate -5.12% -10.50% -8.78% -1.98%
Others 1,105,259,112.23 1,099,645,259.81 0.51% 13.09% 12.63% 0.40%
By region
Domestic -4.82% -9.49% -8.20% -1.47%
International 3,837,211,352.66 4,027,742,504.97 -4.97% -9.94% -6.76% -3.57%
In the case where the statistical scope of the company's main business data has been adjusted during the reporting period, the
company's main business data for the most recent year, adjusted according to the reporting period's scope.
□Applicable ?Not applicable
IV. Analysis of Non-core Business
?Applicable ?Not applicable
Unit：RMB
Proportion in Whether
Amount Explanation of cause
total profit sustainable
Primarily consist of gains
Other income 54,759,372.15 -3.03% No
from government subsidies.
Primarily consist of gains
Investment income (losses
-13,043,716.99 0.72% from the discounting of bank No
are marked with a "-")
acceptance bills.
Impairment provision
Credit impairment loss
-9,502,738.36 0.53% recognized for accounts No
(losses are marked with a "-")
receivable.
Asset impairment loss (losses -14,435,000.34 0.80% Provision for Inventory No
Bengang Steel Plates Co., Ltd. Interim Report 2026
are marked with a "-") impairment losses.
Mainly due to the impact of
Non-operating income 6,082,381.82 -0.34% scrapping of non-current No
assets and other gains.
Primarily attributable to
losses from the retirement of
Non-operating expenses 34,760,019.49 -1.92% No
non-current assets and other
expenditures.
V. Assets and Liabilities
Unit：RMB
Proporti
significa
Proportion in Proportion in on
Amount Amount nt
the total assets the total assets change
change
Cash and cash
equivalents
Accounts
receivable
Inventories 6,071,509,678.50 13.23% 6,369,194,886.12 13.92% -0.69%
Long-term
equity 43,269,884.04 0.09% 43,269,884.04 0.09% 0.00%
investment
Fixed assets 28,503,203,951.19 62.10% 62.08% 0.02%
Construction in
process
Right of use
assets
Short-term
loans
Contract
liabilities
Long-term
loans
Lease liabilities 2,313,796,245.61 5.04% 2,239,436,105.64 4.89% 0.15%
?Applicable ?Not applicable
?Applicable ?Not applicable
Unit：RMB
Profit and
Accumulated Impairme Amount
loss from Amount
fair value nt accrued purchas
Beginning changes in sold in the Other Ending
Item changes in the ed in the
balance fair value current changes balance
recognised in current current
in the period
equity period period
current
Bengang Steel Plates Co., Ltd. Interim Report 2026
period
Financial assets
equity
instruments
investment
Subtotal 890,420,831.77 -165,618,690.23 890,420,831.77
Total 890,420,831.77 -165,618,690.23 890,420,831.77
Financial
liabilities
Other changes
Whether there has been a significant change in the measurement attributes of the company's main assets during the reporting period
□Yes ?No
Ending Balance
Items Gross Book Value Net Book Value Restricted types Status
Cash at bank and on Margin for bills/notes, margin Margin for bills/notes,
hand 840,931,894.73 840,931,894.73 for letters of credit margin for letters of credit
Notes receivable Pledged Pledged
Accounts receivable
Pledged Pledged
financing 124,228,068.50 124,228,068.50
Total 968,159,963.23 968,159,963.23
VI. Analysis of Investment Status
?Applicable ?Not applicable
?Applicable ?Not applicable
?Applicable ?Not applicable
(1) Securities investment
?Applicable ?Not applicable
The company did not have any securities investments during the reporting period.
(2) Derivative investment situation
?Applicable ?Not applicable
Bengang Steel Plates Co., Ltd. Interim Report 2026
The company did not have any derivative investments during the reporting period.
√ Applicable □ Not applicable
(1) Use of Raised Funds
√Applicable □ Not applicable
Unit: 10 thousand yuan
Fund
Usage
Total Amou
Ratio
Total Funds Purpos nt of
at the Cumul
Total Funds Cumul Redire Cumul Total e and raised
Fundra Securit Net End of ative
amoun Used ative cted ative Unuse destina funds
ising ies Raised the Redire
Year t of in the Funds During Redire d tion of idle for
Metho listing Funds Report cted
funds Curren Used the cted Raised unused more
d date (1) ing Funds
raised t (2) Report Funds Funds raised than
Period Ratio
Period ing funds two
(3) =
Period years
(2) /
(1)
Issue
of August
tible 2020
bonds
Total -- -- 680,000 675,920 0 487,823.88 72.17% 101,479 101,479 15.01% 0 -- 0
Explanation of the overall use of raised funds
For details regarding the actual use of raised funds by the Company from January to June 2026, please refer to Appendix 1,
"Comparison Table of the Use of Raised Funds."
During the reporting period, there were no changes in the investment projects funded by the raised funds, nor were there any changes
in their implementation locations or methods.
Bengang Steel Plates Co., Ltd. Interim Report 2026
The 13th meeting of the 8th Board of Directors and the 11th meeting of the 8th Board of Supervisors of the Company reviewed and
approved the "Proposal on Using Raised Funds to Replace Self-raised Funds Pre-invested in Raised Fund Investment Projects and
Paid Issuance Expenses", agreeing that the company will use raised funds to replace self-raised funds pre-invested in raised funds
investment projects and paid issuance expenses, with a total replacement amount of RMB 366,180,860.17. This replacement does not
involve a disguised change in the use of raised funds, does not affect the normal progress of raised funds investment projects, and the
replacement time is no more than 6 months from the time the raised funds arrive, which is in compliance with relevant laws and
regulations.
Before the raised funds were received, the company had used self-raised funds to pre-invest in the raised projects according to the
project progress. As of May 31, 2020, the amount of self-raised funds pre-invested was RMB 365,630,860.17, including the steel
plant No. 8 casting machine project was RMB 76,278,945.59, the iron plant No. 5 blast furnace capacity replacement project was
RMB 119,043,290.09, the special steel electric furnace upgrade and transformation project was RMB 59,948,807.90, the CCPP
power generation project was RMB 95,098,084.16, and the steel plant No. 4-6 converter environmental protection transformation
project was RMB 15,261,732.43. As of July 6, 2020, the above-mentioned issuance expenses of RMB 55,000.00 paid by the
company's own funds were replaced with raised funds.
From March 1, 2019 to May 31, 2021, the company used self-raised funds to pay for the construction of projects funded by the raised
funds, amounting to RMB 1,082,356,809.47, including RMB 180,000.00 for the high-grade high-magnetic induction non-oriented
silicon steel project, RMB 55,364,729.08 for the No. 8 casting machine project of the steelmaking plant, RMB 628,049,033.12 for
the capacity replacement project of the No. 5 blast furnace of the ironmaking plant, RMB 253,298,156.22 for the upgrading and
transformation project of the special steel electric furnace, RMB 115,353,050.36 for the CCPP power generation project, and RMB
company has transferred the above amounts from the raised funds account to the general deposit account in 2021.
From June 1, 2021 to May 31, 2022, the company used self-raised funds to pay for the construction of projects funded by the raised
funds, amounting to RMB 614,208,698.23, including: RMB 12,881,890.61 for the No. 8 Casting Machine Project of the Steelmaking
Plant, RMB 17,508,088.97 for the Capacity Replacement Project of the No. 5 Blast Furnace of the Ironmaking Plant, RMB
CCPP Power Generation Project, and RMB 33,221,738.55 for the Environmental Protection Reconstruction Project of the No. 4 and
No. 6 Converters of the Steelmaking Plant. The company has transferred the above amounts from the raised funds account to the
general deposit account in 2022.
From June 1, 2022 to May 31, 2023, the company used self-raised funds to pay for the construction of the raised funds investment
projects, amounting to RMB 494,502,583.01, of which RMB 15,316,136.52 was used for the capacity replacement project of No. 5
blast furnace of the ironmaking plant, RMB 19,796,661.74 for the CCPP power generation project, RMB 429,392,157.76 for the
upgrading and transformation project of the special steel electric furnace, RMB 21,452,968.70 for the environmental protection
transformation project of No. 4-6 converters of the steelmaking plant, and RMB 8,544,658.29 for the No. 8 casting machine project
of the steelmaking plant. As of December 31, 2023, the company has transferred the funds from the raised funds account to the
general deposit account.
From June 1, 2023 to May 31, 2024, the company used self-raised funds to pay for the construction of the raised investment projects,
amounting to RMB 102,185,736.55, of which RMB 24,887,030.75 was used for the No. 8 casting machine project of the steelmaking
plant, RMB 5,111,121.59 for the capacity replacement project of the No. 5 blast furnace of the ironmaking plant, RMB
power generation project, and RMB 6,570,340.48 for the environmental protection transformation project of the No. 4-6 converters
of the steelmaking plant. As of December 31, 2024, the company has transferred the funds from the raised funds account to the
general deposit account.
From June 1, 2024 to May 31, 2025, the company has no prior investment or replacement of raised funds in investment projects.
From June 1, 2025 to May 31, 2026, the company has no prior investment or replacement of raised funds in investment projects.
Bengang Steel Plates Co., Ltd. Interim Report 2026
During the reporting period, the Company did not use temporarily idle raised funds to temporarily supplement working capital.
(1) Status of the temporary use of idle raised funds to supplement working capital in 2020
The company used idle raised funds of RMB4,180,000,000.00 (RMB1,010,000,000.00 for high-grade and high-magnetic induction
non-oriented silicon steel project, RMB220,000,000.00 for the No. 8 casting machine project of the steel plant, RMB800,000,000.00
for the capacity replacement project of No. 5 blast furnace of the iron plant, RMB1,300,000,000.00 for the special steel electric
furnace upgrading and renovation project, RMB700,000,000.00 for the CCPP power generation project, and RMB150,000,000.00 for
the environmental protection renovation project of No. 4-6 converters of the steel plant) to temporarily supplement working capital.
The matter was reviewed and approved at the 14th meeting of the 8th Board of Directors and the 12th meeting of the 8th Board of
Supervisors held on July 28, 2020. The company's independent directors have expressed their clear consent. The time for
supplementing working capital shall not exceed 12 months.
The sponsor of the company's public issuance of convertible corporate bonds agreed that the company could use idle raised funds to
temporarily supplement working capital and issued the "Guotai Junan Securities Co., Ltd.'s Verification Opinion on the Company's
Use of Idle Raised Funds to Temporarily Supplement Working Capital".
As of July 27, 2021, the Company has returned all of the idle raised funds used to temporarily supplement working capital to the
Company's special account for raised funds.
(2) Status of the temporary use of idle raised funds to supplement working capital in 2021
The company used idle raised funds of RMB 3,030,000,000.00 (RMB 1,010,000,000.00 for high-grade and high-magnetic induction
non-oriented silicon steel project, RMB 150,000,000.00 for the No. 8 casting machine project of the steel plant, RMB
steel electric furnace upgrade and renovation project, RMB 590,000,000.00 for the CCPP power generation project, and RMB
supplement working capital. The matter was reviewed and approved at the 19th meeting of the 8th Board of Directors and the 17th
meeting of the 8th Board of Supervisors held on July 28, 2021. The company's independent directors have expressed their clear
consent. The time for replenishing working capital shall not exceed 12 months.
The sponsor of the company's public issuance of convertible corporate bonds agreed that the company could use idle raised funds to
temporarily supplement working capital and issued the "Guotai Junan Securities Co., Ltd.'s Verification Opinion on the Company's
Use of Idle Raised Funds to Temporarily Supplement Working Capital".
As of July 26, 2022, the Company has returned all of the idle raised funds used to temporarily supplement working capital to the
Company's special account for raised funds.
(3) Status of the temporary use of idle raised funds to supplement working capital in 2022
The company used idle raised funds of RMB 3,014,000,000.00 (RMB 1,015,000,000.00 for high-grade and high-magnetic induction
non-oriented silicon steel project, RMB 165,000,000.00 for the No. 8 casting machine project of the steel plant, RMB
steel electric furnace upgrade and renovation project, RMB 578,000,000.00 for the CCPP power generation project, and RMB
supplement working capital. The matter was reviewed and approved at the third meeting of the ninth board of directors and the third
meeting of the ninth board of supervisors held on July 28, 2022. The company's independent directors have expressed their clear
consent. The time for replenishing working capital shall not exceed 12 months.
The sponsor of the company's public issuance of convertible corporate bonds agreed that the company could use idle raised funds to
temporarily supplement working capital and issued the "Guotai Junan Securities Co., Ltd.'s Verification Opinion on the Company's
Use of Idle Raised Funds to Temporarily Supplement Working Capital".
As of July 17, 2023, the Company has returned all of the idle raised funds used to temporarily supplement working capital to the
Company's special account for raised funds.
Bengang Steel Plates Co., Ltd. Interim Report 2026
(4) Status of the temporary use of idle raised funds to supplement working capital in 2023
The company used idle raised funds of RMB 1,961,200,000.00 (RMB 1,015,000,000.00 for high-grade and high-magnetic induction
non-oriented silicon steel project, RMB 125,000,000.00 for the No. 8 casting machine project of the steel plant, RMB
steel electric furnace upgrade and renovation project, RMB 393,200,000.00 for the CCPP power generation project, and RMB
working capital. The matter was reviewed and approved at the 17th meeting of the 9th Board of Directors and the 12th meeting of the
for supplementing working capital shall not exceed 12 months.
The sponsor of the company's public issuance of convertible bonds agreed that the company could use idle raised funds to
temporarily supplement working capital and issued the "Guotai Junan Securities Co., Ltd.'s Verification Opinion on the Company's
Use of Idle Raised Funds to Temporarily Supplement Working Capital".
As of July 17, 2024, the Company has returned all of the idle raised funds used to temporarily supplement working capital to the
Company's special account for raised funds.
(5) Status of the temporary use of idle raised funds to supplement working capital in 2024
The company used idle raised funds of RMB 1,860,000,000.00 (RMB 1,015,000,000.00 for high-grade and high-magnetic induction
non-oriented silicon steel project, RMB 100,000,000.00 for the No. 8 casting machine project of the steel plant, RMB
electric furnace upgrade and renovation project, RMB 397,000,000.00 for the CCPP power generation project, and RMB
working capital. The matter was reviewed and approved at the 26th meeting of the 9th Board of Directors and the 17th meeting of the
for supplementing working capital shall not exceed 12 months.
The sponsor of the company's public issuance of convertible bonds agreed that the company could use idle raised funds to
temporarily supplement working capital and issued the "Guotai Junan Securities Co., Ltd.'s Verification Opinion on the Company's
Use of Idle Raised Funds to Temporarily Supplement Working Capital".
As of July 15, 2025, the Company has returned the aforementioned idle raised funds, which were utilized to temporarily supplement
working capital, to the Company's designated special account for raised funds.
(6) Status of the temporary use of idle raised funds to supplement working capital in 2025
The proposal regarding the temporary use of RMB 1,015,000,000.00 in idle raised funds—originally designated for the "High-Grade,
High-Magnetic-Induction Non-Oriented Silicon Steel Project" — to supplement working capital was reviewed and approved at the
Second Meeting of the 10th Board of Directors and the Second Meeting of the 10th Board of Supervisors, held on July 16, 2025. The
Company's Independent Directors have issued an explicit opinion of consent regarding this matter; the duration of this working
capital supplementation shall not exceed 12 months.
The sponsor of the company's public issuance of convertible bonds agreed that the company could use idle raised funds to
temporarily supplement working capital and issued the "Guotai Junan Securities Co., Ltd.'s Verification Opinion on the Company's
Use of Idle Raised Funds to Temporarily Supplement Working Capital".
On April 23, 2026, the Company fully returned the idle raised proceeds of RMB 1,015 million—which had been used to temporarily
supplement working capital—to the Company’s designated account for raised proceeds, and notified its sponsor and sponsor
representatives.
The company did not use idle raised funds for cash management during the reporting period.
Bengang Steel Plates Co., Ltd. Interim Report 2026
On April 2, 2025, the company held the 35th meeting of the 9th Board of Directors and the 21st meeting of the 9th Board of
Supervisors to review and approve the "Proposal on Completing Some Fundraising Projects and Using the Surplus Fundraising
Funds to Permanently Supplement Working Capital". Given that the Company's 2020 public issuance of convertible corporate bonds,
which raised funds for investment projects including the "Steel Plant No. 8 Casting Machine Project," the "Iron Plant No. 5 Blast
Furnace Capacity Replacement Project," the "Special Steel Electric Furnace Upgrading and Reconstruction Project," the "CCPP
Power Generation Project," and the "Steel Plant No. 4-6 Converter Environmental Reconstruction Project," have essentially
completed investment, in order to rationally utilize the raised funds, reduce the Company's financial expenses, enhance the
Company's sustainable operating capacity, and fully utilize the raised funds, and in accordance with the requirements of relevant laws,
regulations, and normative documents such as the "Guidelines for the Supervision of Listed Companies No. 2 - Regulatory
Requirements for the Management and Use of Raised Funds by Listed Companies" and the "Shenzhen Stock Exchange Guidelines
for Self-Regulatory Supervision of Listed Companies No. 1 - Standardized Operations of Main Board Listed Companies," the
Company intends to use the remaining raised funds of RMB 870.18 million (the specific amount will be based on the bank interest
balance settled on the date the funds are transferred) from these completed investment projects to permanently supplement its
working capital for the Company's daily operations.
In addition, the company does not use the surplus funds from the raised funds investment projects for other raised funds investment
projects or non-raised funds investment projects.
The sponsor of the company's public offering of convertible bonds agreed that the company would use the remaining raised funds to
permanently supplement its working capital and issued the "Guotai Junan Securities Co., Ltd.'s Verification Opinion on the
Completion of Some Fundraising Projects of Bengang Plate Co., Ltd. and the Use of the Surplus Raised Funds to Permanently
Supplement Working Capital".
On April 24, 2026, the Company convened the ninth meeting of the tenth Board of Directors, where the "Proposal on Changing the
Use of Certain Raised Funds to Permanently Supplement Working Capital" was approved with 9 votes in favor, 0 against, and 0
abstentions. The Board agreed to terminate the raised-fund investment project titled "High-Grade, High-Magnetic-Induction
Non-Oriented Silicon Steel Project" and to utilize the entire remaining balance of the project's raised funds — amounting to RMB
Apart from this, the Company has not used the remaining funds from raised-fund investment projects for other raised-fund
investment projects or for projects not funded by raised proceeds.
The sponsor for the Company's public issuance of convertible bonds consented to the Company's use of the remaining raised funds to
permanently supplement working capital and issued the "Verification Opinion of Guotai Haitong Securities Co., Ltd. on Bengang
Plate Co., Ltd.'s Change of Use of Certain Raised Funds to Permanently Supplement Working Capital."
The Company has no instances of utilizing excess raised funds.
Bengang Steel Plates Co., Ltd. Interim Report 2026
(2) Fundraising commitments
√Applicable □ Not applicable
Unit: 10 thousand yuan
Commit If the
Investm
ted Projec
ent Project
Finan Investm t Been Total Cumulative Has There
Secur Adjusted Investmen Progress Reached Cumulative
cing ent Chang Commit Investment Benefits Been a
ities Projec Total t Amount by the Predeterm Benefits Expected
Proje Projects ed ted Amount by Achieved in Major
Listin t Investmen for the End of ined Achieved by Benefits
ct and (Inclu Investm the End of the Reporting Change in
g Nature t Amount Reporting the Usable the End of the Achieved
Nam Excessi ding ent the Period Period Project
Date (1) Period Period Status Period
e ve Fund Partial Amount (2) Feasibility
(3) = Date
Allocati Chang
(2)/(1)
on es)
Committed Investment Projects
High-gr
ade high
Beng magneti
ang c Manuf
Conv Augu inductio acturi
March 1, Not
ertibl st 4, n ng Yes 101,620 101,620 0 141 0.14% 0 0 No
e 2020 non-orie constr
Bond nted uction
s silicon
steel
project
Beng
Steel
ang Manuf
plant
Conv Augu acturi
No. 8 October
ertibl st 4, ng No 33,500 33,500 0 22,756.19 67.93% -18,919.38 -74,603.98 No No
casting 31, 2020
e 2020 constr
machine
Bond uction
project
s
Beng Augu Blast Manuf No 96,000 96,000 0 81,187.52 84.57% November -24,816.28 -74,043.65 No No
Bengang Steel Plates Co., Ltd. Interim Report 2026
ang st 4, furnace acturi 30, 2020
Conv 2020 No. 5 ng
ertibl capacity constr
e replace uction
Bond ment
s project
Beng
Special
ang Manuf
steel
Conv Augu acturi
electric December
ertibl st 4, ng No 141,600 141,600 0 129,042.92 91.13% -10,870.22 -10,870.22 No No
furnace 31, 2025
e 2020 constr
upgrade
Bond uction
project
s
Beng
ang CCPP Manuf
Conv Augu power acturi
December
ertibl st 4, generati ng No 83,300 83,300 0 43,499.08 52.22% 10,648.81 95,201.93 Yes No
e 2020 on constr
Bond project uction
s
Steel
plant
Beng
No. 4-6
ang Manuf
converte
Conv Augu acturi
r December Not
ertibl st 4, ng No 19,900 19,900 0 11,197.17 56.27% 0 0 No
environ 31, 2020 applicable
e 2020 constr
mental
Bond uction
transfor
s
mation
project
Beng
ang Repay
Repaym
Conv Augu ment
ent of August 4, Not
ertibl st 4, of No 200,000 200,000 0 200,000 100.00% 0 0 No
bank 2020 applicable
e 2020 bank
loans
Bond loans
s
Bengang Steel Plates Co., Ltd. Interim Report 2026
Subtotal of Committed Investment
-- 675,920 675,920 0 487,823.88 -- -- -43,957.07 -64,315.92 -- --
Projects
Use of Over-Raised Funds
Augu Not
Not
None st 4, None applic No 0 0 0 0 0.00% 0 0 No
applicable
Total -- 675,920 675,920 0 487,823.88 -- -- -43,957.07 -64,315.92 -- --
Explanation of
Project The project for high-grade, high-magnetic-induction non-oriented silicon steel faced the risk of technological obsolescence due to the rapid pace of technological evolution in
Delays, the sector; furthermore, intensified market competition and increasing sales challenges meant that continued investment risked tying up capital and failing to meet return
Expected expectations. The Company resolved to terminate this project on April 24, 2026.
Returns, and
The project for No. 8 Continuous Casting Machine at the Steelmaking Plant failed to meet projected economic benefits, as overall steel market conditions and sales prices
Reasons
fell short of expectations.
(Including
The capacity replacement project for No. 5 Blast Furnace at the Ironmaking Plant failed to meet projected economic benefits, as overall steel market conditions and sales
Reasons for
prices fell short of expectations.
Selecting "Not
Applicable" The upgrade and renovation project for the special steel electric arc furnace failed to meet projected economic benefits, as overall steel market conditions and sales prices fell
for Expected short of expectations.
Returns)
Description of
Significant
Changes in None
Project
Feasibility
Amount,
Purpose, and
Progress of Not applicable
Over-Raised
Funds
Cases of
arbitrarily
changing the
Not applicable
purpose of
raised funds or
illegally
Bengang Steel Plates Co., Ltd. Interim Report 2026
occupying
raised funds
Changes in the
Implementatio
n Location of
Not applicable
Fundraising
Investment
Projects
Adjustments
in the
Implementatio
n Method of Not applicable
Fundraising
Investment
Projects
Advance
Investment Applicable
and
Replacement
of Fundraising
Investment For details, please refer to the content stated in Special Report Section III (3).
Projects
Use of Idle
raised Funds Applicable
for Temporary
Supplementati
on of Working For details, please refer to the content stated in Special Report Section III (4).
Capital
Applicable
Amount and
The company will close the investment projects raised from its 2020 public offering of convertible corporate bonds and will use the remaining proceeds of RMB870.1762
Reasons for
million (the specific amount will be determined by the bank's interest balance on the day the funds are transferred) to permanently supplement its working capital. The main
Surplus raised
reasons for the remaining proceeds are: 1. The company consistently adheres to the principles of rationality, economy, and efficiency in implementing the investment
Funds in
projects, strictly adhering to relevant regulations on the management of raised funds to ensure optimal capital allocation and cost control while ensuring project quality.
Project
When preparing the project feasibility study, the company calculated the investment project based on the current production technology and process plan. However, as the
Implementatio
company gained experience in early production, its capabilities in equipment selection, procurement, and production line optimization continued to grow, and economies of
n
scale emerged, effectively reducing construction costs. Furthermore, during project implementation, the company strengthened cost control and budget management at all
stages based on actual needs, rationally allocated resources, and optimized construction expenditures, further reducing overall project costs. These measures not only enabled
Bengang Steel Plates Co., Ltd. Interim Report 2026
the project to proceed smoothly but also resulted in surplus proceeds from the investment. 2. Due to the cyclical nature of the construction of the raised funds, to improve the
efficiency of the raised funds, the company has comprehensively arranged funding sources during project implementation, taking into account actual funding needs and
plans, and has preemptively used its own funds to meet some of the phased funding needs. 3. The raised funds projects concluded this time have outstanding contract
balances, warranty deposits, and other outstanding amounts. Due to the long timeline for these payments, some of the raised funds have been saved.
Purpose and The Company convened the ninth meeting of the tenth Board of Directors on April 24, 2026, and subsequently passed the "Proposal on Changing the Use of Certain Raised
Destination of Funds for Permanent Working Capital Replenishment" at the First Extraordinary General Meeting of Shareholders and the First Bondholders' Meeting of 2026, held on May
Unused raised 19, 2026. It was agreed to terminate the raised-fund investment project—the "High-Grade, High-Magnetic-Induction Non-Oriented Silicon Steel Project"—and to utilize the
Funds entire remaining balance of raised funds, amounting to RMB 1,014.79 million, for permanent working capital replenishment.
Issues or
Other
Situations in
There are no issues or other situations.
the Use and
Disclosure of
raised Funds
(3) The situation for raised funds change project
□ Applicable √ Not applicable
During the reporting period, the company did not have any changes in the fundraising project.
Bengang Steel Plates Co., Ltd. Interim Report 2026
VII. Significant Assets and Equity Sold
?Applicable ?Not applicable
There were no significant asset sold during the reporting period.
?Applicable ?Not applicable
VIII. Analysis of Major Subsidiaries and Affiliates
?Applicable ?Not applicable
Details of Major Subsidiaries and Affiliates that Contribute More Than 10% to the Company's Net Profit
Unit：RMB
Company Compan Main Registered Total Net Operating Operating
Net Profit
Name y type business capital assets assets income profit
Bengang
POSCO 2,559,6
Processing
Cold Subsidia 1,920,000,0 6,140,513,7 3,655,467,36 118,245,937. 100,498,447.
and sales of 23,244.
Rolled ries 00 08.35 9.27 06 72
steel 31
Sheet Co.,
Ltd.
Acquisition and Disposal of Subsidiaries During the Reporting Period
?Applicable ?Not applicable
IX. Structured Entities Controlled by the Company
?Applicable ?Not applicable
X. Risks Faced by the Company and Countermeasures
In the first half of the year, the steel industry as a whole showed an overall trend of weak demand, loose supply, falling prices,
shrinking profits, and intensified competition. The company's operations are facing multiple substantive pressures, specifically
concentrated in the continued weakness of terminal demand and insufficient market growth; steel prices have fluctuated downwards,
and profit margins have continued to be compressed; industry production capacity has been fully released, and market competition
has been viciously involved.
Countermeasures: In response to the severe downturn in the industry in the first half of the year, the company made a comprehensive
shift, actively expanded the market, refined operations, and comprehensively hedged market risks through a series of targeted
response measures such as stabilizing orders, adjusting structure, controlling risks, improving services, expanding channels, and
ensuring cash flow.
The company faces significant short-term debt repayment pressure; compounded by persistent operating losses and rising financial
Bengang Steel Plates Co., Ltd. Interim Report 2026
costs, its capital chain is strained, operating cash flow lacks stability, and the level of funds tied up in receivables and inventories
remains high. This ongoing capital tie-up further constricts available liquidity, reduces capital turnover efficiency, and places
significant strain on cash flow.
Countermeasures: Implement a multi-pronged approach to mitigate risks associated with maturing debt, establish a dedicated
mechanism for debt repayment, and ensure capital security through a dual strategy: on one hand, actively expand diversified
financing channels—such as securing bank credit lines and executing debt swaps—to build up repayment funds in advance; on the
other, boost operating cash flow by cutting costs and increasing efficiency, improving quality and profitability, and revitalizing
existing assets. Strictly control the volume of funds tied up in receivables and inventories, enforce rigorous cash flow management,
set annual reduction targets for these items, continuously revitalize existing capital, and enhance capital turnover efficiency.
Environmental inspections and ultra-low emission controls within the domestic steel industry are intensifying, with regulatory
standards for pollutant emissions, solid waste management, and "dual control" of energy consumption (limiting both total energy
consumption and energy intensity) constantly rising. Policies regarding capacity replacement, energy consumption controls,
low-carbon transformation, and industrial upgrading are continuously updated, raising the threshold for industry entry.
Countermeasures: The Company strictly implements rectification measures addressing issues identified during central environmental
inspections and has established robust standards for the routine operation, inspection, and maintenance of environmental protection
facilities to ensure pollutant emissions consistently meet compliance standards. The Company continues to advance energy
conservation, carbon reduction, and clean production upgrades; it reduces the emission intensity of major pollutants, standardizes the
disposal processes for solid and hazardous waste, and fully complies with all industry environmental regulations.
XI. The Formulation and Implementation of Market Value Management System and
Valuation Enhancement Plan.
Whether the company established a market value management System
?Yes ?No
Whether the company disclosed its valuation enhancement plan
?Yes ?No
During the reporting period, the Company enhanced operational efficiency and profitability by focusing on its core business, setting
multiple historical records through efficiency improvements, boosting the technological content and added value of high-end
products, accelerating the intelligent upgrading of production lines, optimizing structure and addressing weaknesses to improve
quality and efficiency, and expediting the acceptance process for ultra-low emissions as part of its green transition. The Company
actively pursued high-quality development goals and continued to advance major asset restructuring. Committed to serving investors,
the Company expanded communication channels by adding a dedicated investor hotline and establishing a dedicated investor email
address; it achieved a 100% response rate on the "Hudong-e" (Interactive E) platform, conducted eight investor communication
events, hosted over 50 institutional site visits, and held an annual earnings briefing, thereby institutionalizing the practice of regular
earnings briefings. Adhering to the principles of "truthfulness, accuracy, completeness, timeliness, and fairness" in information
disclosure, the Company diligently fulfilled its disclosure obligations, completing 32 disclosure events and releasing 77
documents—including periodic reports and ESG reports—during the first half of the year. The Company's stock price has
successfully moved out of the long-standing "trading below net asset value" (breaking-net) range.
XII. Implementation of the "Quality Return Dual Improvement" Action Plan
Whether the company has disclosed the announcement of the "Quality Return Dual Improvement" action plan
?Yes ?No
Bengang Steel Plates Co., Ltd. Interim Report 2026
IV. Corporate Governance, Environment and Society
I. Changes in directors, supervisors and senior management of the Company
√Applicable □Not applicable
Name Position Type of change Date Reason
Chairman and General
Huang Zuowei Leave office 2 Apr 2026 Job transfer
Manager
Leave office upon
Yuan Zhizhu Independent director 2 Apr 2026 Job transfer
completion of term
Yan Dongyu General Manager Appointment 2 Apr 2026 Job transfer
Appointment and
Liu Tiecheng Chief Accountant 2 Apr 2026 Job transfer
Removal
Wang Zhanwei Chairman Elected 24 Apr 2026 Job transfer
Yan Dongyu Director Elected 24 Apr 2026 Job transfer
Liu Ruping Independent director Elected 24 Apr 2026 Job transfer
II. Profit distribution and capital reserve conversion into share capital during the reporting period
□ Applicable √ Not applicable
The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital during the
current period.
III. Implementation of the company's equity incentive plan, employee stock ownership plan or other
employee incentive measures
□ Applicable √ Not applicable
The company had no equity incentive plan, employee stock ownership plan or other employee incentive measures and their
implementation during the reporting period.
IV. Status of Environmental Information Disclosure
Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the
environmental protection department
√ Yes □ No
Number of companies required by law to disclose environmental
information
Number Company name Link to environmental information disclosures
Benxi Iron & Steel Co., Ltd. Cold Rolling Mill (First Cold
Rolling Area)
Benxi Iron & Steel Co., Ltd. Cold Rolling Mill (Third Cold
Rolling Area)
Bengang Steel Plates Co., Ltd. Interim Report 2026
Benxi Steel Plate Co., Ltd. Ironmaking Plant, Coking
Branch
Bengang Steel Plates Co., Ltd. — Energy Management and
Control Center (Power Generation Area)
Bengang Steel Plates Co., Ltd. — Energy Management and
Control Center (Energy Plant Area)
V. Social responsibility
The company actively selects and dispatches outstanding personnel to support rural revitalization efforts; currently, two
employees are serving as resident village officials. Adhering to the requirements of consolidating poverty alleviation
achievements and advancing agricultural and rural modernization, these officials coordinate industrial development
with livelihood support. They focus on strengthening village economies and increasing local incomes by fostering
industries and expanding revenue streams for both collective entities and individual residents, while also implementing
robust, routine monitoring to prevent a return to poverty. Upholding a pragmatic and incorruptible work style and
remaining committed to serving the people, they rally collective efforts for rural development. The company has
formulated its 2026 assistance plan, which includes a target of 4.6947 million yuan for "consumption-based assistance"
(purchasing goods from assisted areas) for the year—a commitment already incorporated into the company's
comprehensive budget management. Additionally, in accordance with the Notice on Continuously Carrying Out
"Workwear Support for Xinjiang" Initiatives, the company plans to procure 2,000 sets of workwear from Xinjiang at an
estimated cost of 226 thousand yuan; these plans are scheduled for implementation in the second half of the year.
Bengang Steel Plates Co., Ltd. Interim Report 2026
V. Important Events
I. Commitments that the actual controller, shareholders, related parties, acquirers and the
company and other related parties have fulfilled during the reporting period and have not yet
fulfilled by the end of the reporting period
?Applicable □Not applicable
Commitment Type of Commitment Commitment
Commitments Contents Performance
party commitment time period
In order to maintain the
independence of Bengang
Plates, Ansteel Group
promises as follows: 1.
Ansteel Group guarantees to
keep separate from Bengang
Plates in terms of assets,
personnel, finance, institutions
and business, and strictly
abide by the relevant
Commitments regulations of the China
made in Securities Regulatory
acquisition Commission on the
reports or independence of listed
equity change companies, and will not use
reports its controlling position to
interfere with the standardized
Commitments
operation of Bengang Plates,
made in
Ansteel Other interfere with the business
acquisition Aug 20,
Group Co., commitment decisions of Bengang Plates, Long term In progress
reports or 2021
Ltd. s or damage the legitimate
equity change
rights and interests of
reports
Bengang Plates and other
Commitments shareholders. Ansteel Group
made in and its controlled subsidiaries
acquisition guarantee not to illegally
reports or occupy the funds of Bengang
equity change Plates and its controlled
reports subsidiaries in any way. 2.
The above commitments will
remain valid during the period
when Ansteel Group has
control over Bengang Plates.
If Ansteel Group fails to
fulfill the above commitments
and causes losses to Bengang
Plates, Ansteel Group will
bear the corresponding
compensation liability.
Bengang Steel Plates Co., Ltd. Interim Report 2026
To avoid horizontal
competition, Ansteel Group
undertakes as follows: (1)
With regard to the overlap of
some businesses between
Ansteel Group and Bengang
Plates after the completion of
this acquisition, in accordance
with the requirements of
current laws, regulations and
relevant policies, Ansteel
Group will, within 5 years
from the date of this letter of
commitment, and strive to
achieve the same within a
shorter period of time, in
accordance with the
requirements of relevant
securities regulatory
authorities, and on the
premise of complying with the
laws, regulations and relevant
regulatory rules applicable at
that time, and in line with the
principle of benefiting the
development of Bengang
Plates and safeguarding the
Ansteel Other interests of shareholders,
Aug 20,
Group Co., commitment especially the interests of Long term In progress
Ltd. s small and medium-sized
shareholders, steadily promote
the integration of related
businesses to resolve
horizontal competition by
comprehensively using a
variety of methods such as
asset restructuring, business
adjustments, and entrusted
management. The above
solutions include but are not
limited to: 1) Asset
restructuring: adopt different
methods permitted by relevant
laws and regulations such as
cash consideration or issuance
of shares to purchase assets,
asset replacement, asset
transfer or other feasible
restructuring methods,
gradually sort out and
reorganize the assets of
Ansteel Group and Bengang
Plate with overlapping
businesses, and eliminate the
overlap of some businesses; 2)
Business adjustment: sort out
the business boundaries and
Bengang Steel Plates Co., Ltd. Interim Report 2026
make every effort to achieve
differentiated operations, such
as achieving business
differentiation through asset
transactions, business division
and other different methods,
including but not limited to
differentiation in business
composition, product grade,
application field and customer
group; 3) Entrusted
management: by signing an
entrustment agreement, one
party fully entrusts the
decision-making power and
management power involved
in the operation of some
relevant assets with
overlapping businesses to the
other party for unified
management; 4) Other
feasible solutions within the
scope permitted by laws,
regulations and relevant
policies. The implementation
of the above solutions is
subject to the necessary
review procedures for listed
companies, the approval
procedures of securities
regulatory authorities and
relevant competent authorities
in accordance with relevant
laws and regulations. (2)
Ansteel Group has not yet
formulated a specific
implementation plan and time
schedule for resolving the
issue of overlap between some
of the businesses of Ansteel
Group and Bengang Plates.
Ansteel Group will promptly
fulfill its information
disclosure obligations in
accordance with the
requirements of relevant laws
and regulations after
formulating a specific and
feasible plan; (3) In addition
to the above circumstances,
when Ansteel Group or other
subsidiaries obtain business
opportunities that may
compete with the business of
Bengang Plates, Ansteel
Group will make every effort
to give Bengang Plates
Bengang Steel Plates Co., Ltd. Interim Report 2026
priority development rights
and priority acquisition rights
for such opportunities, ensure
that the price of the relevant
transaction is fair and
reasonable, and will use the
business practices followed in
normal commercial
transactions with independent
third parties as the basis for
pricing; (4) Ansteel Group
guarantees to strictly abide by
laws, regulations and the
provisions of the Articles of
Association of Bengang Plates
Co., Ltd. and its relevant
management systems, and will
not use its position as an
indirect controlling
shareholder of Bengang Plates
to seek improper interests,
thereby damaging the rights
and interests of other
shareholders of Bengang
Plates; (5) The above
commitments made by
Ansteel Group are valid
during the period when
Ansteel Group controls
Bengang Plates. If the rights
and interests of Bengang
Plates are damaged due to the
violation of the above
commitments, Ansteel Group
is willing to bear the
corresponding liability for
damages.
In order to standardize and
reduce the related-party
transactions between Ansteel
Group and listed companies,
Ansteel Group has made the
following commitments: 1.
Ansteel Group will ensure that
Bensteel Plates has
independent business and
Ansteel Other
complete assets, and has Aug 20,
Group Co., commitment Long term In progress
independent and complete 2021
Ltd. s
production, supply, sales and
other supporting systems. 2.
Ansteel Group and other
enterprises controlled by
Ansteel Group will not use
their control over Bensteel
Plates to seek priority in
transactions with Bensteel
Plates and its subsidiaries. 3.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Ansteel Group and other
enterprises controlled by
Ansteel Group will avoid and
reduce unnecessary
transactions with Bensteel
Plates and its subsidiaries. If
there are truly necessary and
unavoidable transactions,
Ansteel Group and other
enterprises controlled by
Ansteel Group will sign
agreements with Bensteel
Plates and its subsidiaries in
accordance with the principles
of fairness, equity, and equal
compensation, and perform
legal procedures. In
accordance with the
requirements of relevant laws,
regulations and normative
documents and the provisions
of the Articles of Association
of Bensteel Plates Co., Ltd.,
they will perform information
disclosure obligations and
relevant internal
decision-making and approval
procedures in accordance with
the law, and ensure that they
will not trade with Bensteel
Plates and its subsidiaries
under conditions that are
obviously unfair compared to
market prices, and will not use
such transactions to engage in
any behavior that damages the
legitimate rights and interests
of Bensteel Plates and other
shareholders of Bensteel
Plates. 4. If the above
commitments are violated and
the legitimate rights and
interests of Bengang Plate are
damaged, Ansteel Group will
compensate Bengang Plate for
the losses caused thereby in
accordance with the law.
According to the relevant
regulations of the China
Company
Securities Regulatory
Commitment directors,
Commission, all directors and
made during senior Other
senior management of the May 22,
initial public management/ commitment Long term In progress
Company have made the 2019
offering or Benxi Steel s
following commitments to the
refinancing Group Co.,
Company’s fulfillment of the
Ltd.
diluted immediate return
measures: 1. I promise to
Bengang Steel Plates Co., Ltd. Interim Report 2026
perform my duties faithfully
and diligently, and safeguard
the legitimate rights and
interests of the Company and
all shareholders . 2. I promise
not to deliver benefits to other
units or individuals without
compensation or under unfair
conditions, nor to use other
means to damage the
Company's interests. 3. I
promise to restrict the
position-related consumption
behavior of company directors
and senior management
personnel. 4. I promise not to
use the Company’s assets to
do investment and
consumption activities that are
not related to the performance
of my duties. 5. Within the
scope of my responsibilities
and authority, I promise to
make every effort to promote
the company's board of
directors or the remuneration
system established by the
remuneration and appraisal
committee to be linked to the
implementation of the
company's compensation
measures, and vote in favor of
the relevant proposals
reviewed by the company's
board of directors and general
meeting (If I have voting
rights). 6. If the company
intends to implement equity
incentives, I promise to,
within my own
responsibilities and
jurisdiction, make every effort
to promote the Company’s
proposed equity incentive
exercise conditions to be
linked to the Company’s
implementation of the return
measures, and to review the
Company’s board of directors
and shareholders’ general
meetings and vote in favor of
the relevant proposals
reviewed by the company's
board of directors and general
meeting (If I have voting
rights). 7. If the future
issuance of this commitment
Bengang Steel Plates Co., Ltd. Interim Report 2026
and the implementation of the
Company’s public issuance of
convertible corporate bonds
are completed, if the China
Securities Regulatory
Commission makes other new
regulatory provisions on the
measures for filling returns
and their commitments, and
the above commitments
cannot meet the requirements
of the China Securities
Regulatory Commission
When other regulations are
stipulated, a commitment will
be issued in accordance with
the latest regulations of the
China Securities Regulatory
Commission. The company's
controlling shareholder, Benxi
Iron and Steel (Group) Co.,
Ltd., promised not to interfere
with the company's operation
and management activities
beyond its authority and not to
infringe on the Company's
interests.
trade Co., Ltd. and Bengang
Steel Plates Co., Ltd.'s sales
companies in the same region
guarantee personnel
independence, business
independence, financial
independence, and asset
independence, and guarantee
that they are not in the same
place of registration and never
work in the same office; 2. In
view of the fact that Bengang
Steel Plates Co., Ltd. has
Bengang recently completed the
Group Co., registration of foreign trade
Other operators, and considering
Ltd. and
commitment that the qualification level July 24,2019 Long term In progress
Benxi Steel certification of raw material
s
Group Co., suppliers and customs import
Ltd. and export qualification level
certification still need to be
gradually improved, it lacks
the actual conditions and
capabilities to independently
carry out import and export
business in the short term. In
order to ensure the normal
business development of
Bengang Steel Plates Co.,
Ltd., the Group agrees that
Bengang International Trade
Co., Ltd. will continue to act
as the agent for the main
import and export business of
Bengang Steel Plates Co., Ltd. Interim Report 2026
Bengang Steel Plates Co., Ltd.
within a period of no more
than 5 years from the date of
issuance of this commitment,
until Bengang Steel Plates
Co., Ltd. believes that it can
independently carry out
import and export business,
and during this period,
Bengang International Trade
Co., Ltd. will provide
necessary support for
Bengang Steel Plates Co., Ltd.
to establish and improve its
import and export business. In
addition, Bengang
International Trade Co., Ltd.'s
sales companies are only
responsible for selling the
products of Beiying Steel &
Iron Group, and never sell
third-party steel products. 3.
The three sales companies of
the Group, namely Shanghai
Bengang Steel Sales Co., Ltd.,
Shanghai Bengang Steel
Materials Co., Ltd. and
Guangzhou Bonded Zone
Bengang Sales Co., Ltd., are
no longer actually engaged in
any business activities. The
specific details are as follows:
(1) Shanghai Bengang Steel
Trading Co., Ltd. filed for
bankruptcy in 2014. The
People's Court of Changning
District, Shanghai issued an
announcement to appoint
Grandall Law Firm
(Shanghai) as the bankruptcy
administrator. After
communicating with the
bankruptcy administrator, the
relevant procedures for the
cancellation of Shanghai
Bengang Steel Sales Co., Ltd.
will be handled immediately
after the completion of the
aforementioned bankruptcy
liquidation procedures. (2)
Shanghai Bengang Steel
Materials Co., Ltd. is a
holding subsidiary of
Shanghai Bengang Steel
Trading Co., Ltd. and was
cancelled in November 2020.
(3) Guangzhou Bonded Zone
Bengang Sales Co., Ltd. was
cancelled in July 2022.
Benxi Steel Group Co., Ltd.
Bengang
and Bengang Group Co., Ltd.
Group Co.,
Other (hereinafter collectively
Ltd. and
commitment referred to as the "Group"), as July 24,2019 Long term In progress
Benxi Steel
s the direct and indirect
Group Co.,
controlling shareholders of
Ltd.
Bengang Steel Plates Co., Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
(hereinafter referred to as
"Bengang Plate"), hereby
make the following
commitments to avoid
horizontal competition: 1.
During the period when the
Group serves as the
controlling shareholder of
Bengang Plate, the Group and
other enterprises controlled by
the Group except Bengang
Plate will no longer produce
or develop any products that
compete or may compete with
the products produced by
Bengang Plate and its
subsidiaries at home and
abroad, will not directly or
indirectly operate any
business that competes or may
compete with the business
operated by Bengang Plate
and its subsidiaries, and will
not participate in the
investment in any other
enterprises that compete or
may compete with the
products produced or
businesses operated by
Bengang Plate and its
subsidiaries. 2. If Bengang
Plates and its subsidiaries
further expand their business
scope, the Group and other
enterprises controlled by the
Group will not compete with
the expanded business of
Bengang Plates and its
subsidiaries; if there is a
possibility of competition
with the expanded business of
Bengang Plates and its
subsidiaries, they will
withdraw from the
competition with Bengang
Plates in the following ways:
(1) stop the business that
competes or may compete
with Bengang Plates and its
subsidiaries; (2) incorporate
the competing business into
Bengang Plates and its
subsidiaries in a legal and
compliant manner; (3) transfer
the competing business to an
unrelated third party. 3. If the
Group has any business
Bengang Steel Plates Co., Ltd. Interim Report 2026
opportunity to engage in or
participate in activities that
may compete with the
business operations of
Bengang Plates, the Group
shall immediately notify
Bengang Plates of the above
business opportunity. If
Bengang Plates responds
affirmatively within a
reasonable period specified in
the notification that it is
willing to utilize the business
opportunity, the Group will
try its best to provide the
business opportunity to
Bengang Plates on terms no
less favorable than those
provided to any independent
third party. 4. If the above
commitments are violated, the
Group is willing to bear all the
responsibilities arising
therefrom and fully
compensate or indemnify
Bengang Plates for all direct
or indirect losses caused
thereby. 5. This letter of
commitment shall remain
valid and cannot be changed
or revoked during the period
when the Group serves as the
controlling shareholder of
Bengang Plates.
Benxi Steel Group Co., Ltd.
and Bengang Group Co., Ltd.
(hereinafter collectively
referred to as "the Group"), as
the direct and indirect
controlling shareholders of
Bengang Steel Plates Co., Ltd.
(hereinafter referred to as
"Bengang Plate"), hereby
promise to regulate the related
Bengang transactions between the
Group Co., Group and Bengang Plate: 1.
Other The Group will fully respect
Ltd. and
commitment the independent legal person July 24,2019 Long term In progress
Benxi Steel
s status of Bengang Plate,
Group Co., guarantee the independent
Ltd. operation and independent
decision-making of Bengang
Plate, ensure the business
independence, asset integrity,
personnel independence and
financial independence of
Bengang Plate, so as to avoid
and reduce unnecessary
related transactions; the
Group will strictly control the
related transactions between
Bengang Steel Plates Co., Ltd. Interim Report 2026
Bengang Plate and its
subsidiaries. 2. The Group and
other companies controlled by
it promise not to occupy or
misappropriate the funds of
Bengang Plate and its
subsidiaries by borrowing,
repaying debts, advancing
funds or other means, nor
require Bengang Plate and its
subsidiaries to provide illegal
guarantees for the Group and
other companies controlled by
it. 3. The Group and other
companies controlled by it
will minimize related
transactions with Bengang
Plate. When conducting
related transactions that are
truly necessary and
unavoidable, the
decision-making authority,
decision-making procedures,
and avoidance system
stipulated in the Articles of
Association of Bengang Plates
and the decision-making
system for related transactions
shall be strictly implemented,
the role of the Supervisory
Board and independent
directors shall be fully
utilized, and the information
disclosure obligations shall be
conscientiously fulfilled to
ensure that transactions are
conducted in accordance with
the principles of openness,
fairness, and equity in market
transactions and normal
commercial terms. The Group
and other companies
controlled by it will not
require or accept Bengang
Plates to provide more
favorable conditions than any
third party in any fair market
transaction, and protect the
interests of other shareholders
of Bengang Plates and
Bengang Plates from being
harmed. 4. The Group
guarantees that the above
commitments will remain
valid and irrevocable during
the period when the Group is
listed on the domestic stock
exchange and the Group is its
direct and indirect controlling
shareholder. If any violation
of the above commitments
occurs, the Group shall bear
all losses caused to Bengang
Plates.
Whether
Yes
Commitment
Bengang Steel Plates Co., Ltd. Interim Report 2026
fulfilled on
time or not
II. Non-operating capital occupation of listed companies by controlling shareholders and
other related parties
□Applicable ?Not applicable
During the reporting period, there was no non-operating capital occupation of the listed company by the controlling shareholder or
other related parties.
III. Illegal external guarantees
□Applicable ?Not applicable
The company did not provide any illegal external guarantees during the reporting period.
IV. Appointment and dismissal of accounting firms
Whether the semi-annual financial report has been audited
□Yes ?No
The company's semi-annual report is unaudited.
V. Board of Directors' Explanation on the Non-Standard Audit Report Issued by the
Accounting Firm for the Reporting Period
□Applicable ?Not applicable
VI. Board of Directors' Explanation on Matters Related to the Non-Standard Audit Report of
the Previous Year
□Applicable ?Not applicable
VII. Bankruptcy and reorganization related matters
□Applicable ?Not applicable
The company did not have any bankruptcy reorganization related matters during the reporting period.
VIII. Litigation and arbitration matters
Major Litigation and Arbitration Matters
□Applicable ?Not applicable
During the reporting period, the Company had no major litigation or arbitration matters.
Other litigation matters
Applicable ?Not applicable
Bengang Steel Plates Co., Ltd. Interim Report 2026
Basic Amount Whether Results and Execution of
Progress of
information involved (in estimated impact of litigation Date of Disclosure
litigation
of litigation 10 thousand liabilities are litigation (arbitration) disclosure index
(arbitration)
(arbitration) yuan) formed (arbitration) judgment
Summary of
matters
where the
company
Handle
does not
according to
meet the 754.56 None Under review None
legal
disclosure
provisions
standards for
major
litigation
(arbitration)
IX. Penalties and Rectification
?Applicable ? Not applicable
The Company was not subject to any penalties or rectification requirements during the reporting period.
X. Integrity of the company and its controlling shareholders and actual controllers
□Applicable ?Not applicable
Bengang Steel Plates Co., Ltd. Interim Report 2026
XI. Major Related-Party Transactions
Applicable ?Not applicable
Proporti
Amount Whether The
Pricing on of Approved
of the market
principles Related the transactio Settlement
Related party Affiliated approve price of
Relations Transaction of related party amount n amount method of Disclosure Disclosu
Related party transaction Transactio d quota similar
hip s type party transaction of (ten related party date re index
content n (ten is transactio
transactio price similar thousand transactions
thousand exceede ns
ns transacti yuan)
Yuan) d available
ons
Belongs
Angang Group to Purchase of Related-Part
International Angang Goods/Acce Procurement Market-or y 11,016.22 0.47% 16,728 26/12/2025 2025-071
Economic & Group ptance of of Major Raw iented Agreement According to
Trade Co., Ltd. Co., Ltd. Services Materials principles Price No the agreement Yes
Belongs
to Purchase of Related-Part
Ansteel Group Angang Goods/Acce Procurement Market-or y 7,612.15 0.33% 4,130 26/12/2025 2025-071
Mining Co., Group ptance of of Major Raw iented Agreement According to
LTD Co., Ltd. Services Materials principles Price Yes the agreement Yes
Belongs
Anshan Iron to Purchase of Related-Part
and Steel Angang Goods/Acce Procurement Market-or y 19,854.62 0.85% 20,190 26/12/2025 2025-071
Group Co., Group ptance of of Major Raw iented Agreement According to
Ltd. Co., Ltd. Services Materials principles Price No the agreement Yes
Belongs
Benxi Beiying to Purchase of Related-Part
Iron and Steel Bengang Goods/Acce Procurement Market-or y 587,475.70 25.09% 1,487,640 26/12/2025 2025-071
(Group) Co., Group ptance of of Major Raw iented Agreement According to
Ltd. Co., Ltd. Services Materials principles Price No the agreement Yes
Benxi Iron and
Steel (Group) Purchase of Related-Part
Machinery Same Goods/Acce Procurement Market-or y 375.89 0.02% 12,970.90 26/12/2025 2025-071
Manufacturing parent ptance of of Major Raw iented Agreement According to
Co., Ltd. company Services Materials principles Price No the agreement Yes
Bengang Steel Plates Co., Ltd. Interim Report 2026
Proporti
Amount Whether The
Pricing on of Approved
of the market
principles Related the transactio Settlement
Related party Affiliated approve price of
Relations Transaction of related party amount n amount method of Disclosure Disclosu
Related party transaction Transactio d quota similar
hip s type party transaction of (ten related party date re index
content n (ten is transactio
transactio price similar thousand transactions
thousand exceede ns
ns transacti yuan)
Yuan) d available
ons
Benxi Iron and Purchase of Related-Part
Steel (Group) Same Goods/Acce Procurement Market-or y 73.59 0.00% 629.3 26/12/2025 2025-071
Construction parent ptance of of Major Raw iented Agreement According to
Co., Ltd. company Services Materials principles Price No the agreement Yes
Benxi Iron and Purchase of Related-Part
Steel (Group) Same Goods/Acce Procurement Market-or y 280,307.60 11.97% 740,524.05 26/12/2025 2025-071
Mining Co., parent ptance of of Major Raw iented Agreement According to
Ltd. company Services Materials principles Price No the agreement Yes
Benxi Steel
Group Purchase of Related-Part
Equipment Same Goods/Acce Procurement Market-or y 102.78 0.00% 998.2 26/12/2025 2025-071
Engineering parent ptance of of Major Raw iented Agreement According to
Co., Ltd. company Services Materials principles Price No the agreement Yes
Benxi Steel
Group Purchase of Related-Part
Industrial Same Goods/Acce Procurement Market-or y 23,855 1.02% 67,546.76 26/12/2025 2025-071
Development parent ptance of of Major Raw iented Agreement According to
Co., Ltd. company Services Materials principles Price No the agreement Yes
Purchase of Related-Part
Benxi Iron and Goods/Acce Procurement Market-or y 28.07 0.00% 439 26/12/2025 2025-071
Steel (Group) Parent ptance of of Major Raw iented Agreement According to
Co., LTD company Services Materials principles Price No the agreement Yes
Belongs
to Purchase of Related-Part
Lingyuan Iron Angang Goods/Acce Procurement Market-or y 1,422.81 0.06% 21,000 26/12/2025 2025-071
& Steel Group Group ptance of of Major Raw iented Agreement According to
Co., Ltd. Co., Ltd. Services Materials principles Price No the agreement Yes
Belongs
to Purchase of Related-Part
Pangang Angang Goods/Acce Procurement Market-or y 479.53 0.02% 1,000 26/12/2025 2025-071
Group Co., Group ptance of of Major Raw iented Agreement According to
Ltd. Co., Ltd. Services Materials principles Price No the agreement Yes
Bengang Steel Plates Co., Ltd. Interim Report 2026
Proporti
Amount Whether The
Pricing on of Approved
of the market
principles Related the transactio Settlement
Related party Affiliated approve price of
Relations Transaction of related party amount n amount method of Disclosure Disclosu
Related party transaction Transactio d quota similar
hip s type party transaction of (ten related party date re index
content n (ten is transactio
transactio price similar thousand transactions
thousand exceede ns
ns transacti yuan)
Yuan) d available
ons
Belongs
to Purchase of Related-Part
Angang Steel Angang Goods/Acce Procurement Market-or y 279.59 0.01% 600 26/12/2025 2025-071
Company Group ptance of of Auxiliary iented Agreement According to
Limited Co., Ltd. Services Materials principles Price No the agreement Yes
Belongs
Angang Group to Purchase of Related-Part
Engineering Angang Goods/Acce Procurement Market-or y 165.72 0.01% 437 26/12/2025 2025-071
Technology Group ptance of of Auxiliary iented Agreement According to
Co., Ltd. Co., Ltd. Services Materials principles Price No the agreement Yes
Belongs
Angang Group to Purchase of Related-Part
International Angang Goods/Acce Procurement Market-or y 7,596.40 0.32% 16,000 26/12/2025 2025-071
Economic & Group ptance of of Auxiliary iented Agreement According to
Trade Co., Ltd. Co., Ltd. Services Materials principles Price No the agreement Yes
Angang Digital Belongs
Intelligence to Purchase of Related-Part
Technology Angang Goods/Acce Procurement Market-or y 719.26 0.03% 5,576 26/12/2025 2025-071
(Liaoning) Co., Group ptance of of Auxiliary iented Agreement According to
Ltd. Co., Ltd. Services Materials principles Price No the agreement Yes
Belongs
Anshan Iron to Purchase of Related-Part
and Steel Angang Goods/Acce Procurement Market-or y 1,465.67 0.06% 7,607.40 26/12/2025 2025-071
Group Co., Group ptance of of Auxiliary iented Agreement According to
Ltd. Co., Ltd. Services Materials principles Price No the agreement Yes
Belongs
Benxi Beiying to Purchase of Related-Part
Iron and Steel Bengang Goods/Acce Procurement Market-or y 56.31 0.00% 1,680 26/12/2025 2025-071
(Group) Co., Group ptance of of Auxiliary iented Agreement According to
Ltd. Co., Ltd. Services Materials principles Price No the agreement Yes
Benxi Iron and
Steel (Group) Purchase of Related-Part
Machinery Same Goods/Acce Procurement Market-or y 15,478.48 0.66% 37,708 26/12/2025 2025-071
Manufacturing parent ptance of of Auxiliary iented Agreement According to
Co., Ltd. company Services Materials principles Price No the agreement Yes
Bengang Steel Plates Co., Ltd. Interim Report 2026
Proporti
Amount Whether The
Pricing on of Approved
of the market
principles Related the transactio Settlement
Related party Affiliated approve price of
Relations Transaction of related party amount n amount method of Disclosure Disclosu
Related party transaction Transactio d quota similar
hip s type party transaction of (ten related party date re index
content n (ten is transactio
transactio price similar thousand transactions
thousand exceede ns
ns transacti yuan)
Yuan) d available
ons
Benxi Iron and Purchase of Related-Part
Steel (Group) Same Goods/Acce Procurement Market-or y 5,253.78 0.22% 8,316.17 26/12/2025 2025-071
Construction parent ptance of of Auxiliary iented Agreement According to
Co., Ltd. company Services Materials principles Price No the agreement Yes
Benxi Iron and Purchase of Related-Part
Steel (Group) Same Goods/Acce Procurement Market-or y 17,616.64 0.75% 55,982.30 26/12/2025 2025-071
Mining Co., parent ptance of of Auxiliary iented Agreement According to
Ltd. company Services Materials principles Price No the agreement Yes
Benxi Steel
(Group) Purchase of Related-Part
Equipment Same Goods/Acce Procurement Market-or y 1,086.65 0.05% 8,683 26/12/2025 2025-071
Engineering parent ptance of of Auxiliary iented Agreement According to
Co., Ltd. company Services Materials principles Price No the agreement Yes
Benxi Steel
Group Purchase of Related-Part
Industrial Same Goods/Acce Procurement Market-or y 215.51 0.01% 500 26/12/2025 2025-071
Development parent ptance of of Auxiliary iented Agreement According to
Co., Ltd. company Services Materials principles Price No the agreement Yes
Purchase of Related-Part
Benxi Iron and Goods/Acce Procurement Market-or y 1,419.34 0.06% 3,774 26/12/2025 2025-071
Steel (Group) Parent ptance of of Auxiliary iented Agreement According to
Co., LTD company Services Materials principles Price No the agreement Yes
Belongs
to Purchase of Related-Part
Other Angang Goods/Acce Procurement Market-or y 16.81 0.00% 40 26/12/2025 2025-071
Subsidiaries of Group ptance of of Auxiliary iented Agreement According to
Ansteel Group Co., Ltd. Services Materials principles Price No the agreement Yes
Belongs
Anshan Iron to Purchase of Related-Part
and Steel Angang Goods/Acce Market-or y 5,581.23 0.24% 540.26 26/12/2025 2025-071
Group Co., Group ptance of Procure steel iented Agreement According to
Ltd. Co., Ltd. Services products principles Price Yes the agreement Yes
Bengang Steel Plates Co., Ltd. Interim Report 2026
Proporti
Amount Whether The
Pricing on of Approved
of the market
principles Related the transactio Settlement
Related party Affiliated approve price of
Relations Transaction of related party amount n amount method of Disclosure Disclosu
Related party transaction Transactio d quota similar
hip s type party transaction of (ten related party date re index
content n (ten is transactio
transactio price similar thousand transactions
thousand exceede ns
ns transacti yuan)
Yuan) d available
ons
Belongs
Benxi Beiying to Purchase of Related-Part
Iron and Steel Bengang Goods/Acce Market-or y 2,326.17 0.10% 161,595.12 26/12/2025 2025-071
(Group) Co., Group ptance of Procure steel iented Agreement According to
Ltd. Co., Ltd. Services products principles Price No the agreement Yes
Belongs
DeLin Land to Purchase of Related-Part
Port Supply Angang Goods/Acce Market-or y 53.07 0.00% 0 26/12/2025 2025-071
Chain Services Group ptance of Procure steel iented Agreement According to
Co., Ltd. Co., Ltd. Services products principles Price Yes the agreement Yes
Belongs
Benxi Beiying to Purchase of Related-Part
Iron and Steel Bengang Goods/Acce Procurement Market-or y 35,873.86 1.53% 89,451.54 26/12/2025 2025-071
(Group) Co., Group ptance of of Energy and iented Agreement According to
Ltd. Co., Ltd. Services Utilities principles Price No the agreement Yes
Benxi Iron and Purchase of Related-Part
Steel (Group) Same Goods/Acce Procurement Market-or y 833.33 0.04% 180 26/12/2025 2025-071
Mining Co., parent ptance of of Energy and iented Agreement According to
Ltd. company Services Utilities principles Price Yes the agreement Yes
Belongs
Angang Group to Purchase of Related-Part
Engineering Angang Goods/Acce Receive Market-or y 488.86 0.02% 7,200 26/12/2025 2025-071
Technology Group ptance of Supportive iented Agreement According to
Co., Ltd. Co., Ltd. Services Services principles Price No the agreement Yes
Belongs
Angang Group to Purchase of Related-Part
International Angang Goods/Acce Receive Market-or y 3,556.44 0.15% 20,120.70 26/12/2025 2025-071
Economic & Group ptance of Supportive iented Agreement According to
Trade Co., Ltd. Co., Ltd. Services Services principles Price No the agreement Yes
Angang Group Belongs
Zhongyuan to Purchase of Related-Part
Industrial Angang Goods/Acce Receive Market-or y 5,413.77 0.23% 14,706.29 26/12/2025 2025-071
Development Group ptance of Supportive iented Agreement According to
Co., Ltd. Co., Ltd. Services Services principles Price No the agreement Yes
Bengang Steel Plates Co., Ltd. Interim Report 2026
Proporti
Amount Whether The
Pricing on of Approved
of the market
principles Related the transactio Settlement
Related party Affiliated approve price of
Relations Transaction of related party amount n amount method of Disclosure Disclosu
Related party transaction Transactio d quota similar
hip s type party transaction of (ten related party date re index
content n (ten is transactio
transactio price similar thousand transactions
thousand exceede ns
ns transacti yuan)
Yuan) d available
ons
Angang Digital Belongs
Intelligence to Purchase of Related-Part
Technology Angang Goods/Acce Receive Market-or y 8,623.59 0.37% 11,481.60 26/12/2025 2025-071
(Liaoning) Co., Group ptance of Supportive iented Agreement According to
Ltd. Co., Ltd. Services Services principles Price No the agreement Yes
Belongs
Anshan Iron to Purchase of Related-Part
and Steel Angang Goods/Acce Receive Market-or y 651.96 0.03% 2,065.64 26/12/2025 2025-071
Group Co., Group ptance of Supportive iented Agreement According to
Ltd. Co., Ltd. Services Services principles Price No the agreement Yes
Sharehol
ders of Purchase of Related-Part
Bengang the Goods/Acce Receive Market-or y 13,406.33 0.57% 33,084.33 26/12/2025 2025-071
Group Co., parent ptance of Supportive iented Agreement According to
Ltd. company Services Services principles Price No the agreement Yes
Belongs
Benxi Beiying to Purchase of Related-Part
Iron and Steel Bengang Goods/Acce Receive Market-or y 5,968.32 0.25% 12,030 26/12/2025 2025-071
(Group) Co., Group ptance of Supportive iented Agreement According to
Ltd. Co., Ltd. Services Services principles Price No the agreement Yes
Belongs
Benxi Steel to Purchase of Related-Part
and Iron Angang Goods/Acce Receive Market-or y 27,119.97 1.16% 57,231.22 26/12/2025 2025-071
(Group)Tengda Group ptance of Supportive iented Agreement According to
Co., Ltd. Co., Ltd. Services Services principles Price No the agreement Yes
Benxi Iron and
Steel (Group) Purchase of Related-Part
Machinery Same Goods/Acce Receive Market-or y 5,614.41 0.24% 12,269.62 26/12/2025 2025-071
Manufacturing parent ptance of Supportive iented Agreement According to
Co., Ltd. company Services Services principles Price No the agreement Yes
Benxi Iron and Purchase of Related-Part
Steel (Group) Same Goods/Acce Receive Market-or y 9,876.89 0.42% 34,366.69 26/12/2025 2025-071
Construction parent ptance of Supportive iented Agreement According to
Co., Ltd. company Services Services principles Price No the agreement Yes
Bengang Steel Plates Co., Ltd. Interim Report 2026
Proporti
Amount Whether The
Pricing on of Approved
of the market
principles Related the transactio Settlement
Related party Affiliated approve price of
Relations Transaction of related party amount n amount method of Disclosure Disclosu
Related party transaction Transactio d quota similar
hip s type party transaction of (ten related party date re index
content n (ten is transactio
transactio price similar thousand transactions
thousand exceede ns
ns transacti yuan)
Yuan) d available
ons
Benxi Steel
(Group) Purchase of Related-Part
Equipment Same Goods/Acce Receive Market-or y 31,998.71 1.37% 70,229.35 26/12/2025 2025-071
Engineering parent ptance of Supportive iented Agreement According to
Co., Ltd. company Services Services principles Price No the agreement Yes
Benxi Iron and
Steel (Group) Purchase of Related-Part
Industrial Same Goods/Acce Receive Market-or y 217.98 0.01% 1,219.24 26/12/2025 2025-071
Development parent ptance of Supportive iented Agreement According to
Co., Ltd. company Services Services principles Price No the agreement Yes
Purchase of Related-Part
Benxi Iron and Goods/Acce Receive Market-or y 1,073.51 0.05% 17,195.85 26/12/2025 2025-071
Steel (Group) Parent ptance of Supportive iented Agreement According to
Co., LTD company Services Services principles Price No the agreement Yes
Belongs
DeLin Land to Purchase of Related-Part
Port Supply Angang Goods/Acce Receive Market-or y 523 0.02% 1,084.70 26/12/2025 2025-071
Chain Services Group ptance of Supportive iented Agreement According to
Co., Ltd. Co., Ltd. Services Services principles Price No the agreement Yes
Belongs
to Purchase of Related-Part
Other Angang Goods/Acce Receive Market-or y 1,597.82 0.07% 1,761.86 26/12/2025 2025-071
Subsidiaries of Group ptance of Supportive iented Agreement According to
Ansteel Group Co., Ltd. Services Services principles Price No the agreement Yes
Belongs
to Sale of Related-Part
Angang Steel Angang Goods/Rend Market-or y 216.48 0.01% 800 26/12/2025 2025-071
Company Group ering of iented Agreement According to
Limited Co., Ltd. Services Sale of Goods principles Price No the agreement Yes
Belongs
to Sale of Related-Part
Angang Metal Angang Goods/Rend Market-or y 12,851.78 0.58% 61,946.90 26/12/2025 2025-071
Structure Co., Group ering of iented Agreement According to
Ltd. Co., Ltd. Services Sale of Goods principles Price No the agreement Yes
Bengang Steel Plates Co., Ltd. Interim Report 2026
Proporti
Amount Whether The
Pricing on of Approved
of the market
principles Related the transactio Settlement
Related party Affiliated approve price of
Relations Transaction of related party amount n amount method of Disclosure Disclosu
Related party transaction Transactio d quota similar
hip s type party transaction of (ten related party date re index
content n (ten is transactio
transactio price similar thousand transactions
thousand exceede ns
ns transacti yuan)
Yuan) d available
ons
Belongs
Angang Group to Sale of Related-Part
International Angang Goods/Rend Market-or y 8,103.82 0.36% 45,000 26/12/2025 2025-071
Economic & Group ering of iented Agreement According to
Trade Co., Ltd. Co., Ltd. Services Sale of Goods principles Price No the agreement Yes
Angang Group Belongs
Zhongyuan to Sale of Related-Part
Industrial Angang Goods/Rend Market-or y 3,228.68 0.14% 6,705.09 26/12/2025 2025-071
Development Group ering of iented Agreement According to
Co., Ltd. Co., Ltd. Services Sale of Goods principles Price No the agreement Yes
Angang Digital Belongs
Intelligence to Sale of Related-Part
Technology Angang Goods/Rend Market-or y 15.32 0.00% 50.2 26/12/2025 2025-071
(Liaoning) Co., Group ering of iented Agreement According to
Ltd. Co., Ltd. Services Sale of Goods principles Price No the agreement Yes
Belongs
to Sale of Related-Part
Angang Angang Goods/Rend Market-or y 98.93 0.00% 2,800 26/12/2025 2025-071
Resources Co., Group ering of iented Agreement According to
Ltd. Co., Ltd. Services Sale of Goods principles Price No the agreement Yes
Belongs
Anshan Iron to Sale of Related-Part
and Steel Angang Goods/Rend Market-or y 17,057.48 0.76% 87,713.05 26/12/2025 2025-071
Group Co., Group ering of iented Agreement According to
Ltd. Co., Ltd. Services Sale of Goods principles Price No the agreement Yes
Sharehol
ders of Sale of Related-Part
Bengang the Goods/Rend Market-or y 27,906.92 1.25% 43.56 26/12/2025 2025-071
Group Co., parent ering of iented Agreement According to
Ltd. company Services Sale of Goods principles Price Yes the agreement Yes
Belongs
Benxi Beiying to Sale of Related-Part
Iron and Steel Bengang Goods/Rend Market-or y 23,267.69 1.04% 182,132.55 26/12/2025 2025-071
(Group) Co., Group ering of iented Agreement According to
Ltd. Co., Ltd. Services Sale of Goods principles Price No the agreement Yes
Bengang Steel Plates Co., Ltd. Interim Report 2026
Proporti
Amount Whether The
Pricing on of Approved
of the market
principles Related the transactio Settlement
Related party Affiliated approve price of
Relations Transaction of related party amount n amount method of Disclosure Disclosu
Related party transaction Transactio d quota similar
hip s type party transaction of (ten related party date re index
content n (ten is transactio
transactio price similar thousand transactions
thousand exceede ns
ns transacti yuan)
Yuan) d available
ons
Benxi Iron &
Steel (Group) Belongs
Construction to Sale of Related-Part
Advanced Angang Goods/Rend Market-or y
Decoration Group ering of iented Agreement According to
Co., Ltd. Co., Ltd. Services Sale of Goods principles Price No the agreement Yes
Benxi Iron and
Steel (Group) Sale of Related-Part
Machinery Same Goods/Rend Market-or y 2,130.07 0.10% 8,073.55 26/12/2025 2025-071
Manufacturing parent ering of iented Agreement According to
Co., Ltd. company Services Sale of Goods principles Price No the agreement Yes
Benxi Iron and Sale of Related-Part
Steel (Group) Same Goods/Rend Market-or y 51.3 0.00% 341.66 26/12/2025 2025-071
Construction parent ering of iented Agreement According to
Co., Ltd. company Services Sale of Goods principles Price No the agreement Yes
Benxi Iron and Sale of Related-Part
Steel (Group) Same Goods/Rend Market-or y 15,004.33 0.67% 38,556.33 26/12/2025 2025-071
Mining Co., parent ering of iented Agreement According to
Ltd. company Services Sale of Goods principles Price No the agreement Yes
Benxi Steel
(Group) Sale of Related-Part
Equipment Same Goods/Rend Market-or y 92.95 0.00% 240.02 26/12/2025 2025-071
Engineering parent ering of iented Agreement According to
Co., Ltd. company Services Sale of Goods principles Price No the agreement Yes
Benxi Iron and
Steel (Group) Sale of Related-Part
Industrial Same Goods/Rend Market-or y 5,301.51 0.24% 8,692.50 26/12/2025 2025-071
Development parent ering of iented Agreement According to
Co., Ltd. company Services Sale of Goods principles Price No the agreement Yes
Sale of Related-Part
Benxi Iron and Goods/Rend Market-or y
Steel (Group) Parent ering of iented Agreement According to
Co., LTD company Services Sale of Goods principles Price No the agreement Yes
Bengang Steel Plates Co., Ltd. Interim Report 2026
Proporti
Amount Whether The
Pricing on of Approved
of the market
principles Related the transactio Settlement
Related party Affiliated approve price of
Relations Transaction of related party amount n amount method of Disclosure Disclosu
Related party transaction Transactio d quota similar
hip s type party transaction of (ten related party date re index
content n (ten is transactio
transactio price similar thousand transactions
thousand exceede ns
ns transacti yuan)
Yuan) d available
ons
Belongs
DeLin Land to Sale of Related-Part
Port Supply Angang Goods/Rend Market-or y 143,961.41 6.45% 587,985.65 26/12/2025 2025-071
Chain Services Group ering of iented Agreement According to
Co., Ltd. Co., Ltd. Services Sale of Goods principles Price No the agreement Yes
Belongs
to Sale of Related-Part
Lingyuan Iron Angang Goods/Rend Market-or y 0.02 0.00% 2,834.70 26/12/2025 2025-071
& Steel Co., Group ering of iented Agreement According to
Ltd. Co., Ltd. Services Sale of Goods principles Price No the agreement Yes
Belongs
to Sale of Related-Part
Pangang Angang Goods/Rend Market-or y 1,131.95 0.05% 2,450 26/12/2025 2025-071
Group Co., Group ering of iented Agreement According to
Ltd. Co., Ltd. Services Sale of Goods principles Price No the agreement Yes
Belongs
to Sale of Related-Part
Other Angang Goods/Rend Market-or y 1.5 0.00% 3.09 26/12/2025 2025-071
Subsidiaries of Group ering of iented Agreement According to
Ansteel Group Co., Ltd. Services Sale of Goods principles Price No the agreement Yes
Belongs
Anshan Iron to Sale of Related-Part
and Steel Angang Goods/Rend Provide Market-or y 1.37 0.00% 5,000 26/12/2025 2025-071
Group Co., Group ering of support iented Agreement According to
Ltd. Co., Ltd. Services services principles Price No the agreement Yes
Sharehol
ders of Sale of Related-Part
Bengang the Goods/Rend Provide Market-or y 53.01 0.00% 500 26/12/2025 2025-071
Group Co., parent ering of support iented Agreement According to
Ltd. company Services services principles Price No the agreement Yes
Benxi Iron and
Steel (Group) Sale of Related-Part
Machinery Same Goods/Rend Provide Market-or y 37.3 0.00% 400.22 26/12/2025 2025-071
Manufacturing parent ering of support iented Agreement According to
Co., Ltd. company Services services principles Price No the agreement Yes
Bengang Steel Plates Co., Ltd. Interim Report 2026
Proporti
Amount Whether The
Pricing on of Approved
of the market
principles Related the transactio Settlement
Related party Affiliated approve price of
Relations Transaction of related party amount n amount method of Disclosure Disclosu
Related party transaction Transactio d quota similar
hip s type party transaction of (ten related party date re index
content n (ten is transactio
transactio price similar thousand transactions
thousand exceede ns
ns transacti yuan)
Yuan) d available
ons
Benxi Iron and Sale of Related-Part
Steel (Group) Same Goods/Rend Provide Market-or y 0.11 0.00% 500 26/12/2025 2025-071
Construction parent ering of support iented Agreement According to
Co., Ltd. company Services services principles Price No the agreement Yes
Benxi Iron and Sale of Related-Part
Steel (Group) Same Goods/Rend Provide Market-or y 489.85 0.02% 1,100 26/12/2025 2025-071
Mining Co., parent ering of support iented Agreement According to
Ltd. company Services services principles Price No the agreement Yes
Benxi Steel
(Group) Sale of Related-Part
Equipment Same Goods/Rend Provide Market-or y 1.57 0.00% 500 26/12/2025 2025-071
Engineering parent ering of support iented Agreement According to
Co., Ltd. company Services services principles Price No the agreement Yes
Sale of Related-Part
Benxi Iron and Goods/Rend Provide Market-or y 59.22 0.00% 500 26/12/2025 2025-071
Steel (Group) Parent ering of support iented Agreement According to
Co., LTD company Services services principles Price No the agreement Yes
Belongs
to Sale of Related-Part
Lingyuan Iron Angang Goods/Rend Provide Market-or y 1,907.80 0.09% 3,900.60 26/12/2025 2025-071
& Steel Co., Group ering of support iented Agreement According to
Ltd. Co., Ltd. Services services principles Price No the agreement Yes
Belongs
to Sale of Related-Part
Other Angang Goods/Rend Provide Market-or y 11.72 0.00% 99.18 26/12/2025 2025-071
subsidiaries of Group ering of support iented Agreement According to
Ansteel Group Co., Ltd. Services services principles Price No the agreement Yes
Total -- -- 8
--
-- -- -- -- --
Details of any sales return of a large amount Not applicable
Actual performance of the estimated total amount of daily related transactions to occur in
Not applicable
the current period during the reporting period by category (if any)
Bengang Steel Plates Co., Ltd. Interim Report 2026
Proporti
Amount Whether The
Pricing on of Approved
of the market
principles Related the transactio Settlement
Related party Affiliated approve price of
Relations Transaction of related party amount n amount method of Disclosure Disclosu
Related party transaction Transactio d quota similar
hip s type party transaction of (ten related party date re index
content n (ten is transactio
transactio price similar thousand transactions
thousand exceede ns
ns transacti yuan)
Yuan) d available
ons
Reason for any significant difference between the transaction price and the Market price
Not applicable
for reference (if applicable)
Bengang Steel Plates Co., Ltd. Interim Report 2026
□ Applicable √ Not applicable
During the reporting period, the Company did not engage in any related-party transactions involving the acquisition or disposal of
assets or equity interests.
□ Applicable √ Not applicable
During the reporting period, the Company did not engage in any related-party transactions involving joint external
investments.
□ Applicable √ Not applicable
There were no related credits and debts during the reporting period.
√ Applicable □ Not applicable
Deposit business
Current period
Maximum Total
Deposit Beginning Total deposit Ending
daily deposit withdrawal
Related party Relationship interest rate balance (10 amount of balance (10
limit (ten amount of
range thousand) the current thousand)
thousand) this period
period (10
(10
thousand)
thousand)
Angang
Group Also belong 0.65%-1.45
Finance Co., to Ansteel %
Ltd.
Loans
Current period
Total
Credit Limit Credit Beginning Total loan Ending
repayment
Related party Relationship (ten interest rate balance (10 amount for balance (10
amount for
thousand) range thousand) the current thousand)
this period
period (10
(10
thousand)
thousand)
Angang
Group Also belong
Finance Co., to Ansteel
Ltd.
Credit or other financial services
Total amount（10 Actual amount（10
Related party Relationship Business type
thousand） thousand）
Angang Group Finance Also belong to Ansteel Other financial services 500,000 92,652.44
Bengang Steel Plates Co., Ltd. Interim Report 2026
Co., Ltd.
□ Applicable √ Not applicable
There were no deposits, loans, credit or other financial businesses between the financial company controlled by the
company and its related parties.
□ Applicable √ Not applicable
There were no other significant related transactions during the reporting period.
XII. Significant Contracts and Their Performance
(1) Trusteeship
Applicable Not Applicable
During the reporting period, the Company had no trusteeship arrangements.
(2) Contracting
Applicable Not Applicable
During the reporting period, the Company had no contracting arrangements.
(3) Leasing
Applicable Not Applicable
Details of leasing
Bengang Steel Plates Co., Ltd. Interim Report 2026
The Company as Lessee
Current period Previous period amount
Variable Variable
Rental costs lease Rental costs lease
for short-term payments for short-term payments
Increase
leases and not Interest leases and not Interest
Leased Asset in Increase in
Lessor Name leases of included expense on leases of included expense on
Type Rent paid right-of- Rent paid right-of-use
low-value in the lease low-value in the lease
use assets
assets with measure liabilities assets with measurem liabilities
assets
simplified ment of simplified ent of
treatment lease treatment lease
liabilities liabilities
Benxi Steel
rolling
& Iron 8,049,080.52 3,160,255.47 8,049,080.52 3,348,358.04
product line,
(Group) Co.,
related real
Ltd.
estate
Land use
right
Benxi Steel 7,669,068.17
& Iron square meter 27,638,772.06 18,142,807.59 27,638,772.06 18,502,019.80
(Group) Co., Land use
Ltd. right
square meter
Benxi 1780 Hot 6,912,486.06 2,433,851.18 7,175,818.86 2,578,717.23
Beiying Steel rolling
Bengang Steel Plates Co., Ltd. Interim Report 2026
Current period Previous period amount
Variable Variable
Rental costs lease Rental costs lease
for short-term payments for short-term payments
Increase
leases and not Interest leases and not Interest
Leased Asset in Increase in
Lessor Name leases of included expense on leases of included expense on
Type Rent paid right-of- Rent paid right-of-use
low-value in the lease low-value in the lease
use assets
assets with measure liabilities assets with measurem liabilities
assets
simplified ment of simplified ent of
treatment lease treatment lease
liabilities liabilities
& Iron product line,
(Group) Co., related real
Ltd. estate
Land use
Bengang
right 4,972,711.56 588,107.25 4,972,711.56 756,809.43
Group Co.,
Ltd.
square meter
Angang
Group
Machinery
Energy-Savin 1,026,168.33 1,035,351.86 828,571.67 1,400,598.59
and
g Technology
equipment
Services Co.,
Ltd.
Benxi Plate Mill
Yuneng High-Pressur
Thermal e Area
Bengang Steel Plates Co., Ltd. Interim Report 2026
Current period Previous period amount
Variable Variable
Rental costs lease Rental costs lease
for short-term payments for short-term payments
Increase
leases and not Interest leases and not Interest
Leased Asset in Increase in
Lessor Name leases of included expense on leases of included expense on
Type Rent paid right-of- Rent paid right-of-use
low-value in the lease low-value in the lease
use assets
assets with measure liabilities assets with measurem liabilities
assets
simplified ment of simplified ent of
treatment lease treatment lease
liabilities liabilities
Power Co., 2×135MW
Ltd. Waste Gas
Resource
Comprehens
ive
Utilization
Power
Generation
Project
(BOT)
Benxi Iron
and Steel Machinery
(Group) and
Construction Equipment
Co., Ltd.
Benxi Iron & Transport
Bengang Steel Plates Co., Ltd. Interim Report 2026
Current period Previous period amount
Variable Variable
Rental costs lease Rental costs lease
for short-term payments for short-term payments
Increase
leases and not Interest leases and not Interest
Leased Asset in Increase in
Lessor Name leases of included expense on leases of included expense on
Type Rent paid right-of- Rent paid right-of-use
low-value in the lease low-value in the lease
use assets
assets with measure liabilities assets with measurem liabilities
assets
simplified ment of simplified ent of
treatment lease treatment lease
liabilities liabilities
Steel (Group) Equipment
Construction
Co., Ltd.
Benxi New
Industrial 120,000.00
Land Lease
Development
Co., Ltd.
Anzi
(Tianjin) Machinery
Financial and
Leasing Co., Equipment
Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items with Profit/Loss Impact Exceeding 10% of the Company’s Total Profit for the Reporting Period
Applicable Not Applicable
During the reporting period, there were no lease arrangements that generated profit/loss exceeding 10% of the Company’s total
profit.
Applicable Not Applicable
During the reporting period, there were no significant guarantees provided by the Company.
Applicable Not Applicable
During the reporting period, the Company did not engage in entrusted wealth management.
Applicable Not Applicable
During the reporting period, there were no other significant contracts.
XIII. Research, visits and interviews received in this reporting period
?Applicable ?Not applicable
Main Topics Basic
Reception Discussed and Information
Reception Date Location Visitor Type Visitor
Method Materials Index of the
Provided Research
CPIC Asset
Management –
Zhang
Xueting
Guosen
Securities
(Proprietary
Trading) –
Zhang Meng
Ruijun Asset
Management –
Company's Investor
Online Liu
production and Relations
Jan 21, 2026 Benxi Platform Institution Guoxing
operational Activity Record
Exchange Morgan Huaxin
status on Jan 21, 2026
– Zengge
Kaiqi, Zhang Yi
Yinhua Fund –
Hua
Qiangqiang, Li
Wanda, Zhang
Ling
BOC Fund –
Chai Yiming
Essence Fund
– Song
Bengang Steel Plates Co., Ltd. Interim Report 2026
Shanshan
BOCOM Fund
– Zhuang
Tongyun
ICBC Credit
Suisse – Zhou
Tong
China
Renaissance
Asset
Management –
Liu Jinyu
Rongtong Fund
– Fan Xin
Huatai Asset
Management –
Xia Jialu
Hongkang Life
Insurance –
Sun Ting
Haitong Asset
Management –
Jiao Jie
CICC Asset
Management –
Hu Di
Xingquan Fund
– Yang Yuchen
Ping An
Pension – Jin
Haofeng
Taikang Asset
Management –
Chen Xiao
China Life
AMP Asset
Management –
Qu
Langning
China
Universal Asset
Management –
He Biao
Huihua Wealth
Management –
Zhang
Luotong
Fullgoal Fund
– Huang Qinyi
Taixin Fund –
Qu Yicheng
Caitong
Investor
Securities - Company's
Relations
On-site Zheng Huiwen production and
Feb 25, 2026 Benxi Institution Activity Record
research ICBC Credit operational
on Feb 25,
Suisse - Zhou status
Tong
Bengang Steel Plates Co., Ltd. Interim Report 2026
Yinhua Fund -
Jiang Shan
E Fund - Zhou
Zhanman
Investor
ICBC Credit Company's
Online Relations
Suisse - Yang production and
Apr 16, 2026 Benxi Platform Institution Activity Record
Yunxin operational
Exchange on Apr 16,
CITIC status
Securities - Liu
Dangwu
Investor
Company's
Online Relations
Performance production and
Apr 17, 2026 Benxi Platform Others Activity Record
Presentation operational
Exchange on Apr 17,
status
China
Merchants
Fund - Guo Qi
Zhongjia Fund
- Duan Jinxuan
Yongying Fund
- Lu Kailin
CITIC Asset
Management -
Zheng Qinyuan
HuaAn Fund -
Wang Xiaodan
BOC
International
(China) Fund -
Zhuang
Tongyun
Huatai Asset
Management - Investor
Company's
Online Xia Jialu Relations
production and
Apr 29, 2026 Benxi Platform Institution Everbright-Pra Activity Record
operational
Exchange merica - Yang on Apr 29,
status
Ziyi 2026
Yuanxin
Yongfeng Fund
- Qi Haolin
China Southern
Fund - Wang
Yu
Taikang Fund -
Xu Xiaoxuan,
Zhao Ruiheng
PICC Pension -
Xia Bingxin,
Song Linlin
CCB Principal
Asset
Management -
Wang Xuhui,
Wang Bowen
Wanjia Fund -
Bengang Steel Plates Co., Ltd. Interim Report 2026
Wang Ziyu,
Zhou Shi
Taikang Asset
Management -
Chen Xiao
Essence Fund -
Song Shanshan
E Fund - Zhang
Yi
Bosera Fund -
Jia Yunshu
Kaifeng
Investment -
Tong Shuai
Minmetals
Asset
Management -
Hao Yagang
Hualong
Securities -
Zhang Jin
Guotai Fund -
Tan Yu
Soochow
Securities -
Zheng Bin
HuaAn Asset
Management -
Li Ying
China
Universal Asset
Management -
Hou Yuelong
Taikang Asset
Management –
Chen
Xiao, Shang Company's Investor
Online
Yifeng production and Relations
May 7, 2026 Benxi Platform Institution
Everbright operational Activity Record
Exchange
Securities – status on May 7, 2026
Wang Zhaohua,
Wang Qiuqi,
Liu Fanming
SW Asset
Investor
Management – Company's
Online Relations
Yao production and
May 18, 2026 Benxi Platform Institution Activity Record
Zidong, Liu operational
Exchange on May 18,
Xiaomeng, Cao status
Ziyin
Changjiang
Pension – Li Company's Investor
Online
Yiwei production and Relations
Jun 16, 2026 Benxi Platform Institution
Huachuang operational Activity Record
Exchange
Securities – status on Jun 16, 2026
Zhang Wenxing
Bengang Steel Plates Co., Ltd. Interim Report 2026
XIV. Other Major Events
Applicable Not Applicable
On June 20, 2023, the company disclosed the "Major Asset Replacement and Related Transaction Plan" to carry out
asset replacement with Benxi Iron and Steel Company, intending to acquire 100% equity of Benxi Iron and Steel
(Group) Mining Co., Ltd., and intending to dispose of all assets and liabilities of the listed company except for retained
assets and liabilities. The difference between the assets to be acquired and the assets to be disposed of shall be made up
by one party to the other in cash. At present, the company is conducting further demonstration and communication and
negotiation on the transaction plan. After the relevant matters are determined, the company will convene the board of
directors again for deliberation.
XV. Major Events of Subsidiaries
Applicable Not Applicable
Bengang Steel Plates Co., Ltd. Interim Report 2026
VI. Status of Share Capital Changes and Shareholders
I. Share Capital Changes
Unit: Share
Before the change Increase/decrease (+，-) After the Change
Capitaliz
ation of
Percenta Issuing of Bonus Percenta
Quantity common Others Subtotal Quantity
ge new share shares ge
reserve
fund
I. Restricted Shares
Shareholdings
Legal-person
Shareholding
shareholdings
Including: Domestic legal
person holding
Domestic
person holding
Including: Foreign legal
person holding
Foreign person
holding
II. Non-restricted Shares 4,108,236,253 100.00% 153,849 153,849 4,108,390,102 100.00%
RMB
domestic market
oversea market
III. Total shares 4,108,236,253 100.00% 153,849 153,849 4,108,390,102 100.00%
Reason for share capital changes
Bengang Steel Plates Co., Ltd. Interim Report 2026
√Applicable □Not applicable
During the reporting period, 5,071 convertible bonds were converted into shares and the company's
total share capital increased by 153,849 shares.
Approval of share capital changes
□ Applicable √ Not applicable
Status of registration process of transferred shares
□ Applicable √ Not applicable
Progress of the Share Buyback Implementation
□ Applicable √ Not applicable
Progress update on the reduction of repurchased shares via centralized bidding
□ Applicable √ Not applicable
Influences of share capital changes on financial indices such as basic earnings per share, diluted
earnings per share, and net assets per share attributed to common shareholders
□ Applicable √ Not applicable
Other information the Company deems necessary to be disclosed or required by the authority
□ Applicable √ Not applicable
□Applicable √Not applicable
II. Securities Issuance and Listing
□Applicable √Not applicable
III. Shareholders and Actual Controller
Unit: Share
Total number of preferred
Total number of common
shareholders whose voting rights
shareholders at the end of the 45,172 0
were restored at the end of the
reporting period
reporting period (if any) (see Note
Bengang Steel Plates Co., Ltd. Interim Report 2026
Shareholding of shareholders holding more than 5% or top 10 shareholders (Excluding shares lent through refinancing)
Number of Changes in Number of pledged or
Name of the Nature of Holding Restricted Un-restricted
shares held at reporting frozen shares
shareholder shareholder Percentage shares held shares held
period-end period Status Number
Benxi Steel & Iron State-owned Frozen
(Group) Co., Ltd. legal person
Not
Bengang Group State-owned
Co., Ltd. legal person
le
Guan Hui Not
Domestic
natural person
le
Zhang Wenyou Not
Domestic
natural person
le
Lyu Ruijun Not
Domestic
natural person
le
Zhou Wei Not
Domestic
natural person
le
Ma Yonghua Not
Domestic
natural person
le
Hong Kong Not
Foreign legal
Securities Clearing 0.20% 8,207,219 -6,084,442 0 8,207,219 applicab 0
person
Company Limited le
Jiang Dong Not
Domestic
natural person
le
Tang Linlin Not
Domestic
natural person
le
Strategy investors or general legal
person becomes top 10 shareholders due None
to rights issued (if any) (See Notes 3)
Benxi Iron and Steel (Group) Co., Ltd. has a related relationship with Benxi Iron and Steel
Group Co., Ltd., and is a concerted action person stipulated in the "Administrative Measures for
Notes to relationship or ‘action in the Acquisition of Listed Companies". It is unknown to the Company whether there is any
concert’ among the top 10 shareholders. related connection or ‘Action in Concert’ as described by Rules of Information Disclosing
Regarding Changing of Shareholding Status of Listed Companies existing among the above
shareholders.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Explanation of the above-mentioned
The above shareholders are not involved in the entrustment, entrusted voting rights, or
shareholders' entrusted/entrusted voting
abstention of voting rights.
rights and waiver of voting rights
Special instructions for the existence of
special repurchase accounts among the
None
top 10 shareholders (if any) (see Note
Shareholding of top 10 unrestricted shareholders (Excluding shares lent through refinancing and shares locked by senior executives)
Un-restricted shares held at Category of shares
Name of the shareholder
the end of the reporting period Category of shares Quantity
Benxi Steel & Iron (Group) Co., Ltd. 2,409,628,094 Common shares in RMB 2,409,628,094
Bengang Group Co., Ltd. 737,371,532 Common shares in RMB 737,371,532
Guan Hui 28,900,000 Common shares in RMB 28,900,000
Zhang Wenyou 15,423,865 Common shares in RMB 15,423,865
Lyu Ruijun 12,612,200 Foreign shares in domestic exchange 12,612,200
Zhou Wei 10,136,800 Common shares in RMB 10,136,800
Ma Yonghua 10,036,457 Foreign shares in domestic exchange 10,036,457
Hong Kong Securities Clearing Company
Limited
Jiang Dong 7,770,000 Common shares in RMB 7,770,000
Tang Linlin 7,650,000 Common shares in RMB 7,650,000
Benxi Iron and Steel (Group) Co., Ltd. has a related relationship with Benxi Iron and
Notes to relationship or ‘action in concert’ Steel Group Co., Ltd., and is a concerted action person stipulated in the "Administrative
among the top 10 non-restricted shareholders, Measures for the Acquisition of Listed Companies". It is unknown to the Company
and among the top 10 non-restricted whether there is any related connection or ‘Action in Concert’ as described by Rules of
shareholders and top 10 shareholders Information Disclosing Regarding Changing of Shareholding Status of Listed
Companies existing among the above shareholders.
Guan Hui holds 900,000 shares of the Company's stock through an investor general
account and 28,000,000 shares of the Company's stock through an investor credit
securities account. Zhang Wenyou holds 367,998 shares of the Company's stock through
Shareholders among the top 10 participating in an investor general securities account, 15,055,867 shares of the Company's stock
securities margin trading (if any) (see Note 4) through an investor credit securities account. Zhou Wei holds 867,900 shares of the
Company's stock through an investor general securities account, 9,268,900 shares of the
Company's stock through an investor credit securities account. Tang Linlin holds
Shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders
of unrestricted tradable shares participating in the refinancing business and lending shares
□ Applicable √ Not Applicable
The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed
compared with the previous period due to lending/repayment of refinancing
Bengang Steel Plates Co., Ltd. Interim Report 2026
□ Applicable √ Not Applicable
Whether top 10 common shareholders and top 10 un-restricted common shareholders have a buy-back
agreement dealing in reporting period
□ Yes √ No
Top 10 common shareholders and top 10 un-restricted common shareholders had no buy-back
agreement dealing in reporting period.
IV. Changes in Shareholdings of Directors and Senior Management
□ Applicable √ Not Applicable
There were no changes in the shareholdings of the company's directors and senior management
during the reporting period; for details, please refer to the 2025 annual report.
V. Changes in the controlling shareholder or actual controller
If the company has previously disclosed that its actual controller is planning a change in control
but the process has not yet been completed, please provide an update on the progress of the change
in control.
□ Applicable √ Not Applicable
Change of controlling shareholders during the reporting period
□ Applicable √ Not Applicable
There was no change in the company's controlling shareholder during the reporting period.
Change of actual controller during the reporting period
□ Applicable √ Not Applicable
There was no change in the actual controller of the company during the reporting period.
VI. Information Regarding Preferred Shares
□ Applicable √ Not Applicable
The Company had no preferred shares during the reporting period.
Bengang Steel Plates Co., Ltd. Interim Report 2026
VII. Status of Bonds
√ Applicable □ Not applicable
I. Enterprise bonds
□ Applicable √ Not applicable
During the reporting period, the company did not have Enterprise bonds.
II. Corporate bonds
□ Applicable √ Not applicable
During the reporting period, the company did not have corporate bonds.
III. Debt financing tools for non-financial companies
□ Applicable √ Not applicable
During the reporting period, the company did not have non-financial corporate debt financing
instruments.
IV. Convertible corporate bonds
√ Applicable □ Not applicable
(1) Convertible Bond Issuance Status
Approved by the China Securities Regulatory Commission's "Securities Regulatory License [2020] No.
value of RMB 100 each, a total issuance amount of RMB 6.80 billion, and a term of 6 years.
(2) Listing Status of Convertible Bonds
Pursuant to the approval granted by the Shenzhen Stock Exchange (SZSE) in document "Shen Zheng
Shang [2020] No. 656," the Company's convertible corporate bonds, with an aggregate principal
amount of RMB 6.8 billion, commenced trading on the SZSE on August 4, 2020; the bonds are
abbreviated as " Bengang Convertible Bond" and bear the stock code "127018."
Bengang Steel Plates Co., Ltd. Interim Report 2026
(3) Conversion period for convertible bonds
In accordance with the stipulations of the “Prospectus for the Public Issuance of A-Share Convertible
Corporate Bonds by Bengang Plate Co., Ltd.”, the conversion period for the convertible corporate
bonds issued in this offering commences on the first trading day following the expiration of six months
from the completion of the issuance and extends to the maturity date of the bonds, specifically, from
January 4, 2021, to June 28, 2026.
(4) Redemption Status of Convertible Corporate Bonds at Maturity
The conversion period for the “Bengang Convertible Bonds” commenced on January 4, 2021. As of
June 26, 2026 (the final conversion date), a total of 11,695,500 convertible bonds had been converted
into the Company’s shares, resulting in the issuance of 233,018,570 shares. The outstanding balance of
“Bengang Convertible Bonds” not converted by maturity amounted to 56,304,420 bonds, with a total
redemption value of RMB 6,700,225,980 (inclusive of tax and the final interest payment); this amount
was fully redeemed on June 29, 2026. Effective June 29, 2026, the conversion of “Bengang
Convertible Bonds” ceased, and the bonds were delisted from the Shenzhen Stock Exchange. For
further details, please refer to the “Announcement on the Redemption Results and Share Capital
Changes of Bengang Convertible Bonds” (Announcement No.: 2026-044) published by the Company
on June 30, 2026, in designated information disclosure media.
√Applicable □ Not applicable
Unit: RMB Yuan
Convertible Increase/Decrease
Corporate Bond Before Change After Change
Name Conversion Redemption Repurchase
Bengang
Convertible Bond
√Applicable □ Not applicable
Name Start date Total Cumulative Cumulativ Proportion of Proportion
Total issue Amount of shares
of and end date issue conversion e converted shares of
amount not converted
Convert of quantit amount conversion to the total issue unconvert
(Yuan) (Yuan)
ible conversion y (Yuan) quantity(s quantity ed amount
Bengang Steel Plates Co., Ltd. Interim Report 2026
Bond (sheet) hares) to the total
issue
amount
Bengan
g 4th Jan 2021
Convert – 28th Jun 6.01% 0.00 0.00%
,000 000.00 00.00 70
ible 2026
Bond
Latest Conversion
Conversio
Name of Adjusted Price as of the
n Price Conversion Price
Convertible Conversion Disclosure Date End of the
Adjustme Adjustment Explanation
Bond Price (Yuan) Reporting Period
nt Date
(Yuan)
Bengang
July 19, Implementation of 2020
Convertible 5.02 July 10, 2021 3.29
Bond
Bengang Implementation of 2021
October September 28,
Convertible 4.55 Interim Equity Distribution 3.29
Bond Plan
Bengang
June 16, Implementation of 2021
Convertible 3.95 June 8, 2022 3.29
Bond
The company's A-share
price triggered the clause in
the prospectus regarding the
Bengang
December December 26, downward adjustment of
Convertible 3.29 3.29
Bond
Bengang convertible bonds,
and the board of directors
proposed an amendment.
cash arrangements for debt repayment in future years
Not applicable.
V. The loss of the consolidated financial statements during the reporting period exceeds 10%
of the net assets at the end of the previous year
√ Applicable □ Not applicable
The impact on the company's
Items Losses Reasons for the losses
production and operation and
Bengang Steel Plates Co., Ltd. Interim Report 2026
debt repayment capacity
The parent company's net
profit in the first half of 2026
was -2,006,402,032.67 yuan,
which was 10% higher than
Net profit in the first half year the net assets in the audited
Parent company of Bengang
of 2026: RMB Operational loss consolidated balance sheet of
Steel Plates Co., Ltd.
-2,006,402,032.67 the previous year, affecting
the increase in the audited
consolidated net loss in this
period and the increase in the
debt-to-asset ratio.
VI. The company’s main accounting data and financial indicators for the past two years as
of the end of the reporting period
Unit: 10 thousand yuan
Changes over ending
Item 30 Jun 2026 31 Dec 2025
balance of last year
Current ratio 0.37 0.35 5.71%
Debt-to-asset ratio 87.38% 81.20% 6.18%
Quick ratio 0.13 0.11 18.18%
Changes over previous
Current period Previous period
period
Net profit after deducting
-192,658.78 -145,037.98 32.83%
non-recurring gains and losses
EBITDA total debt ratio -1.45% -1.14% -0.31%
Interest Coverage ratio -6.37 -4.42 44.12%
Cash Interest Coverage ratio 2.88 1.44 100.00%
EBITDA Interest Coverage
-2.37 -1.04 127.88%
ratio
Loan repayment rate 100.00% 100.00% 0.00%
Interest repayment rate 100.00% 100.00% 0.00%
Bengang Steel Plates Co., Ltd. Interim Report 2026
VIII. Financial Report
Whether the interim report is audited
□ Yes √ No
The interim report is unaudited.
The unit of the financial statements is: RMB yuan
Bengang Steel Plates Co., Ltd. Interim Report 2026
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2026
(Expressed in Renminbi unless otherwise indicated)
Assets Notes Jun 30, 2026 Dec 31, 2025
Current assets
Cash at bank and on hand 5 (1) 1,801,115,557.54 1,127,390,675.15
Settlement provisions
Placements with banks and other financial institutions
Financial assets held for trading
Derivative financial assets
Notes receivable 5 (2) 251,853,740.38 399,759,776.83
Accounts receivable 5 (3) 1,284,974,584.51 1,178,780,456.77
Accounts receivable financing 5 (4) 256,934,534.14 331,321,177.27
Prepayments 5 (5) 452,416,738.31 314,825,894.06
Insurance contract assets
Reinsurance contract assets
Other receivables 5 (6) 1,178,776.75 4,034,061.03
Redemptory financial assets for sale
Inventories 5 (7) 6,071,509,678.50 6,369,194,886.12
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 5 (8) 323,570,705.62 450,271,362.93
Total current assets 10,443,554,315.75 10,175,578,290.16
Non-current assets
Loan and advances issued
Debt Investments
Other debt investments
Long-term receivables
Long-term equity investments 5 (9) 43,269,884.04 43,269,884.04
Other equity instrument investments 5 (10) 890,420,831.77 890,420,831.77
Other non-current financial assets
Investment property
Fixed assets 5 (11) 28,503,203,951.19 28,412,673,622.89
Construction in progress 5 (12) 2,621,834,772.76 3,074,712,066.38
Productive biological assets
Oil and gas assets
Right-of-use assets 5 (13) 2,863,353,470.27 2,607,155,393.90
Intangible assets 5 (14) 384,438,175.33 383,659,012.77
Development expenditure 6 (2) 3,700,000.00 3,700,000.00
Goodwill
Long-term deferred expenses
Deferred tax assets 5 (15) 93,916,495.69 124,211,917.95
Other non-current assets 5 (16) 51,426,835.78 54,632,516.72
Total non-current assets 35,455,564,416.83 35,594,435,246.42
Total assets 45,899,118,732.58 45,770,013,536.58
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
Bengang Steel Plates Co., Ltd. Interim Report 2026
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued)
As at 30 June 2026
(Expressed in Renminbi unless otherwise indicated)
Liabilities and equities Notes Jun 30, 2026 Dec 31, 2025
Current Liabilities
Short-term loans 5 (18) 4,575,371,374.99 333,660,470.12
Loan from central bank
Loan from other banks
Financial liability held for trading
Derivative financial liabilities
Notes payable 5 (19) 13,673,839,787.02 12,962,287,642.88
Accounts payable 5 (20) 3,101,065,676.73 2,667,236,412.66
Advance from customers 5 (21) 252,490.93 49,541.35
Contract liabilities 5 (22) 2,701,578,357.21 2,736,697,947.25
Financial assets sold for repurchase
Deposits from customers and interbank
Receipt from vicariously traded securities
Receipt from vicariously underwriting securities
Employee benefits payable 5 (23) 10,303,757.76 2,586,883.29
Current tax liabilities 5 (24) 53,717,519.20 59,857,286.81
Other payables 5 (25) 2,551,169,237.40 2,775,544,196.11
Handling charges and commission payable
Liabilities held for sale
Non-current liabilities due within one year 5 (26) 1,457,804,520.24 6,940,934,862.49
Other current liabilities 5 (27) 290,086,986.58 275,281,765.24
Total current liabilities 28,415,189,708.06 28,754,137,008.20
Non-current liabilities
Insurance contract liabilities
Reinsurance contract liabilities
Long-term loans 5 (28) 9,227,985,607.86 6,014,469,758.11
Bonds payable 5 (29)
Including: Preferred stock
Perpetual bond
Lease liabilities 5 (30) 2,313,796,245.61 2,239,436,105.64
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 5 (31) 147,564,088.15 158,199,416.58
Deferred tax liabilities 5 (15)
Other non-current liabilities
Total non-current liabilities 11,689,345,941.62 8,412,105,280.33
Total liabilities 40,104,535,649.68 37,166,242,288.53
Shareholders' equity:
Share capital 5 (32) 4,108,390,102.00 4,108,236,253.00
Other equity instruments 5 (33) 947,843,680.82
Including: Preferred stock
Perpetual bond
Capital reserves 5 (34) 13,253,305,178.53 13,252,955,837.48
Less: treasury shares
Other comprehensive income 5 (35) -129,961,806.05 -129,961,806.05
Special reserves 5 (36) 16,011,079.35 881,502.23
Surplus reserves 5 (37) 1,195,116,522.37 1,195,116,522.37
General risk reserve
Undistributed profits 5 (38) -13,346,838,223.54 -11,439,289,982.02
Total equity attributable to equity holders of the parent company 5,096,022,852.66 7,935,782,007.83
Non-controlling interests 698,560,230.24 667,989,240.22
Total shareholder's equity 5,794,583,082.90 8,603,771,248.05
Total of liabilities and owners’ equity 45,899,118,732.58 45,770,013,536.58
The notes to the financial statements attached form part of these financial statements.
Legal Representative： Chief Financial Officer: Chief Accountant:
Bengang Steel Plates Co., Ltd. Interim Report 2026
BENGANG STEEL PLATES CO., LTD.
STATEMENT OF FINANCIAL POSITION
As at 30 June 2026
(Expressed in Renminbi unless otherwise indicated)
Assets Notes Jun 30, 2026 Dec 31, 2025
Current assets
Cash at bank and on hand 1,644,608,451.50 969,348,936.91
Financial assets held for trading
Derivative financial assets
Notes receivable 177,619,625.27 288,032,009.55
Accounts receivable 15 (1) 1,251,296,555.12 1,153,889,227.54
Accounts receivable financing 286,808,102.89 334,034,656.97
Prepayments 445,594,707.42 274,799,041.59
Other receivables 15 (2) 39,937,108.19 55,731,976.38
Inventories 5,426,183,573.29 5,607,342,964.33
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 307,390,019.52 417,408,930.19
Total current assets 9,579,438,143.20 9,100,587,743.46
Non-current assets
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 15 (3) 2,465,813,343.47 2,465,813,343.47
Other equity instrument investments 890,420,831.77 890,420,831.77
Other non-current financial assets
Investment property
Fixed assets 27,378,200,613.08 27,265,548,170.25
Construction in progress 2,506,825,149.42 2,965,847,309.52
Productive biological assets
Oil and gas assets
Right-of-use assets 2,863,353,470.27 2,607,155,393.90
Intangible assets 203,215,917.08 199,952,774.53
Including: data assets
Development expenditure 3,700,000.00 3,700,000.00
Including: data assets
Goodwill
Long-term deferred expenses
Deferred tax assets 92,581,529.69 122,987,010.55
Other non-current assets 51,426,835.78 53,948,721.72
Total non-current assets 36,455,537,690.56 36,575,373,555.71
Total assets 46,034,975,833.76 45,675,961,299.17
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
Bengang Steel Plates Co., Ltd. Interim Report 2026
BENGANG STEEL PLATES CO., LTD.
STATEMENT OF FINANCIAL POSITION (Continued)
As at 30 June 2026
(Expressed in Renminbi unless otherwise indicated)
Liabilities and shareholders' equities Notes Jun 30, 2026 Dec 31, 2025
Current liabilities
Short-term loans 4,575,371,374.99 333,660,470.12
Financial liability held for trading
Derivative financial liabilities
Notes payable 11,286,261,844.98 10,945,673,752.38
Accounts payable 3,669,021,919.63 2,726,855,682.41
Prepayments
Contract liabilities 7,007,391,578.87 6,807,101,441.62
Employee benefits payable 7,871,398.25 631,573.72
Current tax liabilities 22,168,044.92 31,524,009.09
Other payables 2,419,649,102.54 2,619,633,120.59
Liabilities held for sale
Non-current liabilities due within one year 1,457,804,520.24 6,940,934,862.49
Other current liabilities 39,611,208.41 58,382,271.92
Total current liabilities 30,485,150,992.83 30,464,397,184.34
Non-current liabilities
Long term loans 9,227,985,607.86 6,014,469,758.11
Bonds payable
Including: Preferred stock
Perpetual bond
Lease liabilities 2,313,796,245.61 2,239,436,105.64
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 147,564,088.15 158,199,416.58
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 11,689,345,941.62 8,412,105,280.33
Total liabilities 42,174,496,934.45 38,876,502,464.67
Shareholder’s equity:
Share capital 4,108,390,102.00 4,108,236,253.00
Other equity instruments 947,843,680.82
Including: Preferred stock
Perpetual bond
Capital reserves 12,852,815,365.60 12,852,466,024.55
Less: Treasury shares
Other comprehensive income -129,961,806.05 -129,961,806.05
Special reserves 14,780,150.08 17,561.83
Surplus reserves 1,195,116,522.37 1,195,116,522.37
Undistributed Profits -14,180,661,434.69 -12,174,259,402.02
Total shareholder's equity 3,860,478,899.31 6,799,458,834.50
Total liabilities and shareholder’s equity 46,034,975,833.76 45,675,961,299.17
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
Bengang Steel Plates Co., Ltd. Interim Report 2026
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 30 June 2026
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
Including: Operating income 5 (39) 22,335,640,944.40 24,697,800,421.99
Interest income
Premium earned
Income from handling charges and commission
Including: Operating cost 5 (39) 23,417,107,587.05 25,441,217,248.92
Interest expense
Expenditure for handling charges and commission
Insurance service expenses
Tax and surcharges 5 (40) 93,794,767.58 108,022,323.47
Selling and distribution expenses 5 (41) 57,847,251.98 61,464,166.53
General and administrative expenses 5 (42) 270,993,726.11 285,764,896.43
Research and development expenses 5 (43) 31,891,802.98 31,617,334.27
Financial expenses 5 (44) 262,347,038.94 208,340,955.08
Including: Interest expense 5 (44) 245,361,416.02 207,308,249.73
Interest income 5 (44) 28,085,562.37 17,521,734.29
Add: Other income 5 (45) 54,759,372.15 109,012,246.69
Income on investment（“-” for loss） 5 (46) -13,043,716.99 -17,631,847.31
Including: Income from associates and joint ventures
Income from derecognition of financial assets measured at amortized cost -2,756,945.48 -603,798.41
Exchange gains（“-” for loss）
Net exposure hedge income（“-” for loss）
Gains from change of fair value （“-” for loss）
Credit impairment loss （“-” for loss） 5 (47) -9,502,738.36 -9,308,109.96
Asset impairment loss （“-” for loss） 5 (48) -14,435,000.34 36,671,170.60
Assets disposal gains（“-” for loss） 5 (49) 3,008.85
Add: Non-operating income 5 (50) 6,082,381.82 9,723,769.21
Less: Non-operating expenses 5 (51) 34,760,019.49 36,523,366.11
Less: Income tax expenses 5 (52) 68,072,357.45 19,976,028.30
Other comprehensive income attributable to owners of the parent company after tax
profit or loss
profit or loss
into profit or loss
Other comprehensive income attributable to non-controlling shareholders’ equity after
tax
Total comprehensive income attributable to the owner of the parent company -1,907,548,241.52 -1,399,277,780.90
Total comprehensive income attributable to non-controlling shareholders 30,234,932.62 32,622,121.86
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
Bengang Steel Plates Co., Ltd. Interim Report 2026
BENGANG STEEL PLATES CO., LTD.
STATEMENT OF COMPREHENSIVE INCOME
For the period ended 30 June 2026
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
Less: Operating cost 15 (4) 23,400,804,629.82 25,744,208,800.42
Tax and surcharges 67,485,264.31 77,033,502.59
Selling and distribution expenses 76,802,940.13 93,709,728.93
General and administrative expenses 254,396,265.45 270,944,864.54
Research and development expenses 31,891,802.98 31,617,334.27
Financial expenses 258,458,066.76 209,002,624.36
Including: Interest expense 245,361,416.02 207,308,249.73
Interest income 26,310,927.41 15,302,608.67
Add: Other income 48,788,836.85 68,822,256.72
Income on investment（“-” for loss） 15 (5) -10,296,649.51 -17,359,947.52
Including: Income from associates and joint ventures
Income from derecognition of financial assets
measured at amortized cost
Net exposure hedge income（“-” for loss）
Gains from change of fair value （“-” for loss）
Credit impairment loss（“-” for loss） -8,768,999.66 -20,985,096.52
Assets impairment loss（“-” for loss） -14,435,000.34 36,671,170.60
Assets disposal gains（“-” for loss） 3,008.85
Add: Non-operating income 5,748,673.13 9,650,019.10
Less: Non-operating expenses 34,646,932.56 33,395,650.60
Less: Income tax expenses 45,155,480.86 146,195.41
into gains/losses
be reclassified into profit or loss
loss.
can be reclassified into profit or loss
comprehensive income
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
Bengang Steel Plates Co., Ltd. Interim Report 2026
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 30 June 2026
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
Cash received from sale of goods or rendering of services 24,821,179,787.30 26,352,011,964.12
Net increase of customers' deposit and interbank deposit
Net increase of loan from central bank
Cash received from premiums of insurance contracts issued
Net cash received for reinsurance business
Cash from receiving interest, handling charge and commission
Net increase of loans from borrowing funds
Net increase of fund for repurchase business
Net cash received from traded securities
Tax rebate received 27,615,774.73
Other cash received relating to operating activities 5 (53) 69,030,457.30 122,173,179.14
Subtotal of cash inflows from operating activities 24,917,826,019.33 26,474,185,143.26
Cash paid for goods and services 22,939,289,959.24 24,803,326,040.01
Net increase of customer's loan and advances
Net increase of deposit in central bank and interbank deposit
Cash for payment of compensation for original insurance contract
Net cash paid for reinsurance contracts held
Net increase in policy loans
Net increase in capital lent
Cash for payment of interest, handling charge and commission
Cash paid to and on behalf of employees 895,157,541.69 942,556,803.50
Cash paid for all types of taxes 221,801,883.88 197,929,978.91
Other cash paid relating to operating activities 5 (53) 155,004,688.99 158,742,556.80
Subtotal of cash outflows from operating activities 24,211,254,073.80 26,102,555,379.22
Net cash flows from operating activities 706,571,945.53 371,629,764.04
Cash received from disposal of investments
Cash received from return on investments
Net cash received from disposal of fixed assets, intangible assets and other
long-term assets
Net cash received from disposal of subsidiaries and other operating units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 87,181,100.00
Cash paid for acquisition of fixed assets, intangible assets and other long-term
assets
Cash paid for acquisition of investments 60,000,000.00
Net cash paid for acquiring subsidiaries and other business units
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities 835,819,961.61 1,036,150,324.56
Net cash flows from investing activities -835,819,961.61 -948,969,224.56
Proceeds from investment 29,400,000.00
Including: Proceeds from investment of non-controlling shareholders of
subsidiary
Proceeds from borrowings 9,617,500,000.00 1,251,997,823.71
Other proceeds relating to financing activities 5 (53) 921,460,041.20 1,815,330,484.81
Subtotal of cash inflows from financing activities 10,538,960,041.20 3,096,728,308.52
Cash repayments of borrowings 7,553,405,605.24 703,625,752.00
Cash payments for distribution of dividends, profit or interest expenses 1,195,084,112.26 337,785,953.76
Including: Cash paid to non-controlling shareholders as dividend and profit by
subsidiaries
Other cash payments relating to financing activities 5 (53) 946,192,873.14 1,961,851,891.13
Subtotal of cash outflows from financing activities 9,694,682,590.64 3,003,263,596.89
Net cash flows from financing activities 844,277,450.56 93,464,711.63
Add: Cash and cash equivalents at the beginning of the period 5 (54) 287,470,306.31 1,590,205,218.91
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
Bengang Steel Plates Co., Ltd. Interim Report 2026
BENGANG STEEL PLATES CO., LTD.
STATEMENT OF CASH FLOWS
For the period ended 30 June 2026
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
Cash received from sale of goods or rendering of services 22,218,706,118.83 25,486,623,895.09
Tax rebate received 25,654,204.30
Other cash received relating to operating activities 62,530,710.01 359,517,948.34
Subtotal of cash inflows from operating activities 22,306,891,033.14 25,846,141,843.43
Cash paid for goods and services 21,024,174,232.95 24,109,950,616.59
Cash paid to and on behalf of employees 827,130,009.63 869,629,604.70
Cash paid for all types of taxes 121,653,206.63 126,265,175.99
Other cash paid relating to operating activities 147,323,918.94 144,527,255.02
Subtotal of cash outflows from operating activities 22,120,281,368.15 25,250,372,652.30
Net cash flows from operating activities 186,609,664.99 595,769,191.13
Cash received from disposal of investments
Cash received from return on investments 12,000,000.00 184,898,383.95
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets
Net cash received from disposal of subsidiaries and other
operating units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 12,000,000.00 272,079,483.95
Cash paid for acquisition of fixed assets, intangible assets and
other long-term assets
Cash paid for acquisition of investments 90,600,000.00
Net cash paid for acquisition of subsidiaries and other
operating unit
Other cash paid relating to investing activities
Subtotal of cash outflows paid for investing activities 326,382,505.42 1,063,211,679.66
Net cash flows from investing activities -314,382,505.42 -791,132,195.71
Proceeds from investment
Cash received from borrowings 9,617,500,000.00 1,251,997,823.71
Other cash received relating to financing activities 921,460,041.20 1,815,330,484.81
Subtotal of cash inflows from financing activities 10,538,960,041.20 3,067,328,308.52
Cash repayments of borrowings 1,922,963,605.24 703,625,752.00
Cash payments for distribution of dividends, profit or interest 125,300,132.26 285,877,429.49
Other cash payments relating to financing activities 7,617,416,200.58 1,961,851,891.13
Subtotal of cash outflows from financing activities 9,665,679,938.08 2,951,355,072.62
Net cash flows from financing activities 873,280,103.12 115,973,235.90
-42,256,621.43 12,043,045.91
cash equivalents
Add: Cash and cash equivalents at the beginning of the period 177,479,144.77 1,064,914,001.36
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
Bengang Steel Plates Co., Ltd. Interim Report 2026
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 30 June 2026
(Expressed in Renminbi unless otherwise indicated)
Current period
Owner's equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling Total of owner's
Share capital Preference Perpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Undistributed profit Subtotal interest equity
Others
shares bond shares income reserve
Add: Change of accounting policies
Correction of errors for last period
Business consolidation under common
control
Others
shareholders
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity
instruments
(3) Share-based payment attributable to
owners' equity
(4) Others 349,341.05 349,341.05 349,341.05
(1) Appropriation to surplus reserves
(2) Appropriation to general risk reserve
(3) Profit distribution to shareholders
(4) Others
(1) Capital reserves transferred into paid-in
capital (or stock)
(2) Surplus reserves transferred into paid-in
capital (or stock)
(3) Surplus reserves to recover loss
(4) Net changes of defined contribution plans
transferred into Retained Earnings
(5) Other comprehensive income transferred
into Retained Earnings
(6) Others
(1) Provision of special reserves 30,136,206.94 30,136,206.94 2,508,026.61 32,644,233.55
(2) Use of special reserves 15,006,629.82 15,006,629.82 2,171,969.21 17,178,599.03
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
Bengang Steel Plates Co., Ltd. Interim Report 2026
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the period ended 30 June 2026
(Expressed in Renminbi unless otherwise indicated)
Previous period
Owner's equity attributable to parent company
Items Other equity instruments Less: Other General Non-controlling Total of owner's
Undistributed
Share capital Preference Perpetual Capital reserves Treasury comprehensive Special reserves Surplus reserves risk Subtotal interest equity
Others profit
shares bond shares income reserve
Add: Change of accounting policies
Correction of errors for last period
Business consolidation under common control
Others
(1) Common share invested by shareholders 29,400,000.00 29,400,000.00
(2) Capital input by the holder of other equity 4,048.00 -3,257.10 11,835.26 12,626.16 12,626.16
instruments
(3) Share-based payment attributable to owners'
equity
(4) Others
(1) Appropriation to surplus reserves
(2) Appropriation to general risk reserve
(3) Profit distribution to shareholders
(4) Others
(1) Capital reserves transferred into paid-in
capital (or stock)
(2) Surplus reserves transferred into paid-in
capital (or stock)
(3) Surplus reserves to recover loss
(4) Net changes of defined contribution plans
transferred into Retained Earnings
(5) Other comprehensive income transferred into
Retained Earnings
(6) Others
(1) Provision of special reserves 32,080,601.70 32,080,601.70 2,253,924.06 34,334,525.76
(2) Use of special reserves 16,712,548.91 16,712,548.91 1,566,841.47 18,279,390.38
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
Bengang Steel Plates Co., Ltd. Interim Report 2026
BENGANG STEEL PLATES CO., LTD.
STATEMENT OF CHANGES IN EQUITY
For the period ended 30 June 2026
(Expressed in Renminbi unless otherwise indicated)
Current period
Other equity instruments Less: Other
Items Special Undistributed Total shareholder’s
Share capital Preference Perpetual Capital reserves Treasury comprehensi Surplus reserves
Others reserves profits equity
shares bond shares ve income
Add: Change of accounting policies
Correction of errors for last period
Others
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity instruments -947,843,680.82 -947,843,680.82
(3) Share-based payment attributable to shareholders' equity
(4) Others 153,849.00 349,341.05 503,190.05
(1) Appropriation of surplus reserves
(2) Profit distribution to shareholders
(3) Others
(1) Capital reserves transferred into paid-in capital (or stock)
(2) Surplus reserves transferred into paid-in capital (or stock)
(3) Surplus reserves to recover loss
(4) Net changes of defined contribution plans transferred into
Retained Earnings
(5) Other comprehensive income transferred into retained
earnings
(6) Others
(1) Provision of special reserves 23,140,800.00 23,140,800.00
(2) Use of special reserves 8,378,211.75 8,378,211.75
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
Bengang Steel Plates Co., Ltd. Interim Report 2026
BENGANG STEEL PLATES CO., LTD.
STATEMENT OF CHANGES IN EQUITY (Continued)
For the period ended 30 June 2026
(Expressed in Renminbi unless otherwise indicated)
Previous period
Other equity instruments Less: Other
Items Special Undistributed Total shareholder’s
Share capital Preference Perpetual Capital reserves Treasury comprehensi Surplus reserves
Others reserves profits equity
shares bond shares ve income
Add: Change of accounting policies
Correction of errors for last period
Others
(1) Common share invested by shareholders
(2) Capital input by the holder of other equity instruments 4,048.00 -3,257.10 11,835.26 12,626.16
(3) Share-based payment attributable to shareholders' equity
(4) Others
(1) Appropriation of surplus reserves
(2) Profit distribution to shareholders
(3) Others
(1) Capital reserves transferred into paid-in capital (or stock)
(2) Surplus reserves transferred into paid-in capital (or stock)
(3) Surplus reserves to recover loss
(4) Net changes of defined contribution plans transferred into
Retained Earnings
(5) Other comprehensive income transferred into retained
earnings
(6) Others
(1) Provision of special reserves 25,328,400.00 25,328,400.00
(2) Use of special reserves 12,064,550.17 12,064,550.17
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
Bengang Steel Plates Co., Ltd. Interim Report 2026
Bengang Steel Plates Co., Ltd.
Notes to the financial statements
For the period from Jan. to Jun. 2026
(Expressed in Renminbi unless otherwise indicated)
(1) Company profile
Bengang Steel Plates Co., Ltd. (hereinafter referred to as “Bengang Steel Plates” or “the
Company”), as approved in Liao-Zheng (1997) No. 57 by Liaoning People’s Government on
of domestic listed foreign currency denominated shares (B shares) in the People’s Republic
of China (the “PRC”) on 27 June 1997 by Benxi Steel and Iron (Group) Co., Ltd. (“Bengang
Group”), through reorganization of operations, assets and liabilities of its plants, namely,
Steel Smelting Plant, Primary Rolling Plant and Continuous Hot Rolling Plant.
As approved by China Securities Regulatory Commission (hereinafter referred to as “the
CSRC”), the Company issued 400,000,000 B-shares at HKD 2.38 each in Shenzhen Stock
Exchange on 10 June 1997. On 3 November 1997, the Company issued another 120,000,000
A-shares (Renminbi common Shares) at RMB 5.40 each, and listed in Shenzhen Stock
Exchange since 15 January 1998. The capital shares were totaled to 1,136,000,000 shares.
On 14 March 2006, according to the resolutions of the Shareholders’ Meeting regarding share
equity relocation, the Share Equity Relocation Scheme, Response to Bengang Steel Plate Co.,
Ltd. about Share Equity Relocation issued by Liaoning Provincial Government State-owned
Asset Administrative Committee, Bengang Group – the only holder of non-negotiable
state-owned legal person shares paid the consideration to the current shareholders to obtain
the current option for the 40,800,000 shares of the total 616,000,000 shares it was holding.
Shareholding positions have been registered with China Securities Depository & Clearing
Corporation Ltd. Shenzhen Office. However, the total amount of capital shares of Bengang
Steel Plates Co., Ltd. was not changed through the share equity relocation action.
On July 6, 2006, the Company received Document No. Zhengjian Gongsi Zi (2006) 126,
issued by the China Securities Regulatory Commission (CSRC) on June 30, 2006. This
document approved the issuance by the Company of 2 billion RMB-denominated ordinary
shares to Bengang Group for the purpose of acquiring relevant assets from Bengang Group.
On the same day, Bengang Group received circular Zheng-Jian-Gong-Si-Zi [2006] No. 127
issued by China Securities Regulatory Committee, and were exempted for the liability of
Bengang Steel Plates Co., Ltd. Interim Report 2026
undertaking the purchase offer. The liability was caused by subscribing of the 2 billion new
shares and the total shareholding was thus increased to 2.5752 billion shares (accounting for
China Securities Depository & Clearing Corporation Ltd. Shenzhen Office, the registration
and conditional placing procedures of the 2 billion new shares were completed. On 28
September 2006, the privately placed shares were approved by Shenzhen Stock Exchange to
be placed in the stock market. The placing price was RMB4.6733 per share.
Approved by the China Securities Regulatory Commission [2017] No. 1476, Bengang Steel
Plate Co., Ltd. privately placed no more than 739,371,534 RMB ordinary shares (A shares) to
no more than 10 issuers. The non-public offering was completed on 9 February 2018, and
On August 20, 2021, the State-owned Assets Supervision and Administration Commission of
the People's Government of Liaoning Province (hereinafter referred to as Liaoning SASAC)
and Ansteel Group Co., Ltd. (hereinafter referred to as Ansteel) signed the "Agreement on the
Gratuitous Transfer of State-owned Equity in Bengang Group Co., Ltd. between the
State-owned Assets Supervision and Administration Commission of the People's Government
of Liaoning Province and Ansteel Group Co., Ltd." According to the agreement, Liaoning
SASAC will transfer its 51% equity in Bengang Group Co., Ltd. (hereinafter referred to as
Bengang Group) to Ansteel Group Co., Ltd. for free. After the completion of this free transfer,
Ansteel became the controlling shareholder of Bengang Group, and Ansteel indirectly hold
As at 30 June 2026, the capital shares were totaled to 4,108,390,102.00 shares.
The Company’s uniform social credit code: 91210000242690243E.
The Company’s registered address: 16th Renmin Road, Pingshan District, Benxi, Liaoning
Province.
The Company’s legal representative: Wang Zhanwei.
The parent company of Bengang Steel Plates Co., Ltd is Benxi Steel and Iron (Group) Co.,
Ltd. and the actual controller is Ansteel Group Co., Ltd..
Bengang Steel Plates Co., Ltd. belongs to ferrous metal smelting and rolling processing
industry and is mainly involved in producing and trading of ferrous metal products.
The financial statements have been approved for reporting by the board of directors of the
Company on 27 August 2026.
Bengang Steel Plates Co., Ltd. Interim Report 2026
(1) Basis of preparation
The financial statements have been prepared in accordance with “Accounting Standards for
Business Enterprises – Basic Standard” and relevant specific standards, application materials,
interpretations (together hereinafter referred to as “Accounting Standards for Business
Enterprises”) issued by the Ministry of Finance, and “Information Disclosure Rules for
Companies of securities for public issuance No. 15 – General Regulations for Financial
Statements” issued by the China Securities Regulatory Commission.
(2) Going concern
The financial statements have been prepared on a going concern basis.
The following disclosed content covers the specific accounting policies and accounting
estimates that are adopted by the Company based on the actual production and operation
characteristics. Please see Note (10) Financial instruments, (12) Inventory, (15) Fixed assets,
(18) Intangible assets, (24) Revenue under “3. Significant accounting policies and
accounting estimates” for details.
(1) Statement of compliance with China Accounting Standards for Business Enterprises
The financial statements present truly and completely the financial position, operation results
and cash flows of the consolidated and parent company during the reporting period in
accordance with China Accounting Standards for Business Enterprises.
(2) Accounting year
The Accounting year is from 1 January to 31 December.
(3) Operating period
The operating period is twelve months.
(4) Functional currency
The Company’s functional currency is RMB.
(5) The accounting treatment for Business combination under/not under common control
Business combination under common control
The assets and liabilities that the Company acquired in a business combination shall be
measured on the basis of their carrying amount of acquiree’s assets, liabilities (as well as the
goodwill arising from the business combination) in the consolidated financial statement of
the ultimate controller on the combining date. As for the balance between the carrying
amount of the net assets obtained by the Company and the carrying amount of the
Bengang Steel Plates Co., Ltd. Interim Report 2026
consideration paid by it (or the total par value of the shares issued), capital reserve needs to
be adjusted. If the capital reserve is not sufficient, any excess shall be adjusted against
retained earnings.
Business combination not under common control
The Company shall, on the acquisition date, measure the assets given and liabilities incurred
or assumed by an enterprise for a business combination in light of their fair values, and shall
record the balances between them and their carrying amounts into the profits and losses at the
current period. The Company shall recognize the positive balance between the combination
costs and the fair value of the identifiable net assets it obtains from the acquiree as goodwill.
The Company shall treat the negative balance between the combination costs and the fair
value of the identifiable net assets it obtains from the acquiree into the profits and losses of
the current period. All identifiable assets, liabilities and contingent liabilities of the acquiree
that meet the recognition criteria acquired in the merger are measured at fair value on the
acquisition date.
Directly related expenses incurred for a business combination are recorded in the current
period's profit or loss when incurred; transaction costs of equity securities or debt securities
issued for a business combination are included in the initial recognition amount of the equity
securities or debt securities.
(6) Scope of consolidation and Consolidation of Financial Statements
The scope of consolidation of consolidated financial statements is determined based on
control and the scope of consolidation includes the Company and all its subsidiaries. Control
means that the Company has power over the investee, enjoys variable returns through
participation in the relevant activities of the investee, and has the ability to use the power
over the investee to influence the amount of its returns.
When preparing consolidated financial statements, the parent shall consider the entire group
as an accounting entity, adopt uniform accounting policies to prepare the consolidated
financial statements which reflect the overall financial position, operating results and cash
flows of the group. The impact of internal transactions between the Company and its
subsidiaries and between subsidiaries shall be offset. If internal transactions indicate that
relevant assets have suffered impairment losses, such losses shall be fully recognized. The
accounting policy and accounting period of the subsidiaries within the consolidation scope
shall be in accordance with those of the Company. If not, it is necessary to make the
Bengang Steel Plates Co., Ltd. Interim Report 2026
adjustment according to the Company’s accounting policies and accounting period when
preparing the consolidated financial statements.
The owners’ interests, profit or loss, and comprehensive income of the subsidiary attributable
to the non-controlling shareholders shall be presented separately in the shareholders’ equity
of the consolidated balance sheet and under the item of net profit of the consolidated
statement of comprehensive income and under the item of total comprehensive income.
Where losses assumed by the minority exceed the minority’s interests in the beginning equity
of a subsidiary, the excess shall be charged against the minority’s interests.
(1) Increasing new subsidiaries and businesses
If the Company has a new subsidiary due to business combination under common control
during the reporting period, it shall adjust the beginning balance in the consolidated
statement of financial position when preparing consolidated statement of financial position.
The revenue, expenses and profits of the subsidiaries from the acquisition date to the end of
the reporting period are included in the Company’s consolidated statement of
comprehensive income. The cash flow of the subsidiaries from the acquisition date to the
end of the reporting period is included in the Company’s consolidated statement of cash
flows. And meanwhile the Company shall adjust the relevant items of the comparative
financial statements as if the reporting entity for the purpose of consolidation has been in
existence since the date the ultimate controlling party first obtained control.
When the Company becomes capable of exercising control over an investee under common
control due to additional investment or other reasons, adjustment shall be made as if the
reporting entity after the combination has been in existence since the date the ultimate
controlling party first obtained control. The investment income recognized between date of
previously obtaining equity investment and the date the acquiree and acquirer are under
common control, which is later, and the combining date, other comprehensive income and
other changes of net assets arising from the equity investment previously held before
obtaining the control the acquiree shall be adjusted against the prior retained earnings of the
comparative financial statements and the current profit or loss respectively.
If it is not under common control, it will be included in the consolidated financial
statements from the date of acquisition based on the fair value of each identifiable asset,
liability and contingent liability determined on the date of acquisition.
When the Company becomes capable of exercising control over an investee not under
common control due to additional investment or other reasons, the acquirer shall remeasure
Bengang Steel Plates Co., Ltd. Interim Report 2026
its previously held equity interest in the acquiree to its fair value at the acquisition date. The
difference between the fair value and the carrying amount shall be recognized as investment
income for the period when the acquisition takes place. When the previously held equity
investment is accounted for under the equity method, any other comprehensive income
previously recognized in relation to the acquiree’s equity changes shall be transferred to
profit or loss for the current period when the acquisition takes place.
(2) Disposing subsidiaries or businesses
When the Company loses control over an investee due to partial disposal or other reasons,
the acquirer shall re-measure the remaining equity interests in the acquiree to its fair value at
the acquisition date. The difference, between sums of consideration received for disposal
equity shares and fair value of the remaining shares, and sums of share of net assets of the
subsidiary calculated continuously from the acquisition date or the combination date based
on the previous shareholding proportion and goodwill, shall be recognized as investment
income for the period when the Company loses control over acquiree. When the previously
held equity investment is accounted for under the equity method, any other comprehensive
income previously recognized in relation to the acquiree’s equity changes, and other equity
changes rather than changes from net profit, other comprehensive income and profit
distribution, shall be transferred to investment income for the current period when the
Company loses control over acquiree.
(7) Classification of joint venture arrangements and accounting treatment
Joint venture arrangements are divided into joint operations and joint ventures.
When the Company is a joint venture party of a joint venture arrangement and have the
assets related to the arrangement and assumes the liabilities related to the arrangement, it is
a joint operation.
The Company confirms the following items related to the share of interest in the joint
operation and performs accounting treatment in accordance with the relevant enterprise
accounting standards:
a. Confirm the assets held by the company separately, and confirm the assets held jointly by
the Company's share;
b. Recognize the liabilities assumed by the Company separately and the liabilities jointly
assumed by the company's share;
c. Recognize the income generated by the sale of the Company’s share of common
operating output;
d. Recognize the revenue generated from the sale of joint operations based on the
Company's share;
e. Confirm the expenses incurred separately and the expenses incurred in the joint operation
according to the Company's share.
The Company's investment in joint ventures is accounted for using the equity method. For
details, see Note (14) Long-term equity investments under “ 3. Significant accounting
policies and accounting estimates”.
Bengang Steel Plates Co., Ltd. Interim Report 2026
(8) Recognition of cash and cash equivalents
The term “cash” refers to the cash on hand and the unrestricted deposit. And the term “cash
equivalents” refers to short-term and highly liquid investments that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of change in value.
(9) Foreign currency transaction and translation of foreign currency financial statements
Foreign currency transactions are translated into RMB at the current rate at the day of
transactions.
The foreign currency monetary items shall be translated at the spot exchange rate on the
balance sheet date. The balance of exchange arising from the difference between the spot
exchange rate on the balance sheet date and the spot exchange rate at the time of initial
recognition or prior to the balance sheet date, except those arising from the raising of special
foreign debt for the purchase or construction of capitalizable assets thus shall be capitalized
according to the borrowing costs capitalization principle, shall be recorded into the profits
and losses at the current period.
The asset and liability items in the statement of financial position shall be translated at a spot
exchange rate on the balance sheet date. Among the owner's equity items, except the ones as
"undistributed profits", others shall be translated at the spot exchange rate at the time when
they are incurred. The income and expense items in the income statement shall be translated
using an exchange rate that is determined in a systematic and reasonable manner and
approximates the spot exchange rate on the transaction date.
When disposing an overseas business, the Company shall shift the balance, which is
presented under the items of the owner's equities in the statement of financial position and
arises from the translation of foreign currency financial statements related to this oversea
business, into the disposal profits and losses of the current period.
(10) Financial instruments
The Company recognizes a financial asset, financial liability or equity instrument when it
becomes a party to a financial instrument contract.
The Company shall classify financial assets on the basis of both the entity’s business model
for managing the financial assets and the contractual cash flow characteristics of the financial
asset as: financial assets measured at amortised cost, financial assets measured at fair value
Bengang Steel Plates Co., Ltd. Interim Report 2026
through other comprehensive income and financial assets measured at fair value through
profit or loss at initial measurement.
A financial asset which is not designated as a financial asset measured at fair value through
profit or loss shall be measured at amortised cost if both of the following conditions are met.
- The financial asset is held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows.
- The contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding.
A financial asset shall be measured at fair value through other comprehensive income if both
of the following conditions are met.
- The financial asset is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets.
- The contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding.
The Company may make an election at initial recognition for non-trading equity instrument
investments whether it is designated as a financial asset (equity instrument) that is measured
at fair value through other comprehensive income. The designation is made on the basis of a
single investment, and the related investment meets the definition of an equity instrument
from the issuer's perspective.
Other financial assets other than these are classified as financial assets measured at fair value
through profit or loss. At the initial recognition, in order to eliminate or significantly reduce
accounting mismatches, financial assets that should be classified as measured at amortized
value or financial assets measured at fair value through other comprehensive income can be
designated as financial assets measured at fair value through profit or loss.
The Company shall classify financial liabilities as financial liabilities measured at amortised
cost and financial liabilities measured at fair value through profit or loss at initial
measurement.
(1) Financial assets measured at amortised cost
Bengang Steel Plates Co., Ltd. Interim Report 2026
Financial assets measured at amortized cost include notes receivables, accounts receivables,
other receivables, long-term receivables, debt investments, etc. At initial recognition, the
Company shall measure a financial asset at its fair value plus or minus transaction costs that
are directly attributable to the acquisition or issue of the financial asset. The Company shall
measure account receivables at their transaction price if the account receivables do not
contain a significant financing component and accounts receivables that the company has
decided not to consider for a financing component of no more than one year.
Interests calculated by using the effective interest method during the holding period shall be
recognized in profit or loss.
When recovering or disposing the receivables, the difference between the price obtained and
the carrying value shall be recognized in current profit or loss.
(2) Financial assets measured at fair value through other comprehensive income (debt
instruments)
Financial assets measured at fair value through other comprehensive income (debt
instruments) include receivables financing, other debt investments, etc. At initial recognition,
the Company shall measure a financial asset at its fair value plus transaction costs that are
directly attributable to the acquisition or issuance of the financial asset. The financial assets
are subsequently measured at fair value. Changes in fair value are included in other
comprehensive income except for interest calculated using the effective interest method,
impairment losses or gains and exchange gains and losses.
When the financial assets are derecognized, the accumulated gain or loss previously
recognized in other comprehensive income is transferred from other comprehensive income
and recognized in profit or loss.
(3) Financial assets at fair value through other comprehensive income (equity
instruments)
Financial assets at fair value through other comprehensive income (equity instruments).
include other equity instrument investments, etc. At initial recognition, the Company shall
measure a financial asset at its fair value plus transaction costs that are directly attributable to
the acquisition or issue of the financial asset. The financial assets are subsequently measured
Bengang Steel Plates Co., Ltd. Interim Report 2026
at fair value. Changes in fair value are included in other comprehensive income. The
dividends obtained are recognised in profit and loss.
When the financial assets are derecognized, the accumulated gain or loss previously
recognised in other comprehensive income is transferred from other comprehensive income
and recognised in retained earnings.
(4)Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include transactional financial assets,
derivative financial assets, other non-current financial assets, etc. The Company shall
measure the financial assets at fair value at initial recognition. Transaction costs are
recognised in profit or loss. Changes in fair value are included in profit or loss.
(5) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include current financial liabilities,
derivative financial liabilities, etc. The Company shall measure the financial assets at fair
value at initial recognition. Transaction costs are recognised in profit or loss. Changes in fair
value are included in profit or loss.
When the financial liabilities are derecognized, the difference between the fair value and the
initially recorded amount is recognized as investment income, and the gains and losses from
changes in fair value are adjusted.
(6) Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost include short-term borrowings, notes payables,
accounts payables, other payables, long-term borrowings, bonds payables, long-term
payables. At initial recognition, the Company shall measure a financial liability at its fair
value plus transaction costs that are directly attributable to the acquisition or issue of the
financial asset.
Interests calculated by using the effective interest method during the holding period shall be
recognized in profit or loss.
Bengang Steel Plates Co., Ltd. Interim Report 2026
When the financial liabilities are derecognized, the difference between the price obtained and
the carrying value shall be recognised in profit and loss.
When one of the following conditions is met, the company terminates the recognition of
financial assets.
- Termination of contractual rights to receive cash flows from financial assets;
- The financial assets have been transferred, and almost all the risks and rewards in the
ownership of the financial assets have been transferred to the transferee;
- The financial assets have been transferred. Although the company has neither transferred
nor retained almost all the risks and rewards of the ownership of the financial assets, it
has not retained control of the financial assets.
If the Company modifies or renegotiates a contract with its counterparty and the modification
constitutes a substantial modification, the original financial asset will be derecognized and a
new financial asset will be recognized in accordance with the modified terms.
If it retained nearly all of the risks and rewards related to the ownership of the financial asset,
it shall not stop recognizing the financial asset.
To judge whether the transfer of a financial asset can satisfy the conditions as prescribed in
these Standards for stopping the recognition of a financial asset, the Company shall follow
the principle of the substance over form.
Transfer of an entire financial asset can be divided into partial financial assets transfer and
entire financial asset transfer. If the transfer of an entire financial asset satisfies the conditions
for de-recognition, the difference between the amounts of the following 2 items shall be
recorded in the profits and losses of the current period:
(1) The book value of the transferred financial asset; and
(2) The sum of consideration received from the transfer, and the accumulative amount of the
changes of the fair value originally recorded in the owners' equities (in the event that the
financial asset involved in the transfer is a financial asset Available-for-sale).
If the transfer of partial financial asset satisfies the conditions to derecognize, the entire book
value of the transferred financial asset shall, between the portion whose recognition has been
stopped and the portion whose recognition has not been stopped (under such circumstance,
the service asset retained shall be deemed as a portion of financial asset whose recognition
Bengang Steel Plates Co., Ltd. Interim Report 2026
has not been stopped), be apportioned according to their respective relative fair value, and the
difference between the amounts of the following 2 items shall be included into the profits and
losses of the current period :
(1) The book value of the portion whose recognition has been stopped; and
(2) The sum of consideration of the portion whose recognition has been stopped, and the
portion of the accumulative amount of the changes in the fair value originally recorded in the
owner's equities which is corresponding to the portion whose recognition has been stopped
(in the event that the financial asset involved in the transfer is a financial asset
Available-for-sale).
If the transfer of financial assets does not satisfy the conditions to stop the recognition, it
shall continue to be recognized as financial assets and the consideration received shall be
recognized as financial liabilities.
Only when the prevailing obligations of a financial liability are relieved in all or in part may
the recognition of the financial liability be terminated in all or partly. Where the Company
(debtor) enters into an agreement with a creditor so as to substitute the existing financial
liabilities by way of any new financial liability, and if the contractual stipulation regarding
the new financial liability is substantially different from that regarding the existing financial
liability, it shall terminate the recognition of the existing financial liability, and shall at the
same time recognize the new financial liability.
Where the Company makes substantial revisions to part or all of the contractual stipulations
of the existing financial liability, it shall terminated the recognition of the existing financial
liability or part of it, and at the same time recognize the financial liability after revising the
contractual stipulations as a new financial liability.
Where the recognition of a financial liability is totally or partially terminated, the Company
shall include into the profits and losses of the current period the difference between the
carrying amount which has been terminated from recognition and the considerations it has
paid (including the non-cash assets it has transferred out and the new financial liabilities it
has assumed).
Where the Company buys back part of its financial liabilities, it shall distribute, on the date of
repurchase, the carrying amount of the whole financial liabilities in light of the comparatively
fair value of the part that continues to be recognized and the part whose recognition has
Bengang Steel Plates Co., Ltd. Interim Report 2026
already been terminated. The gap between the carrying amount which is distributed to the
part whose recognition has terminated and the considerations it has paid (including the
noncash assets it has transferred out and the new financial liabilities it has assumed) shall be
recorded into the profits and losses of the current period.
If active markets for the financial instruments exist, the fair value shall be measured by
quoted prices in the active markets. If active markets for the financial instruments do not
exist, valuation techniques shall be applied for the measurement. The Company uses
valuation techniques appropriate in the circumstances and for which sufficient data are
available to measure fair value. The Company chooses relevant observable inputs for
identical or similar assets or liabilities. Only when relevant observable inputs are unavailable
or should the Company use unobservable inputs for the asset or liability.
The Company recognize the expected credit loss on financial assets measured at amortized
cost, financial assets measured at fair value through other comprehensive income (debt
instruments) , financial guarantee contract, and so on, on the individual or portfolio basis.
The Company considers all reasonable and relevant information, including past events,
current conditions, and forecasts of future economic conditions, and uses the risk of default
as the weight to calculate the probability-weighted amount of present value of difference
between the cash flow receivable from the contract and the cash flow expected to be received
to confirm the expected credit loss.
For account receivables and contract assets recognized according to Accounting Standards for
Business Enterprises No. 14 Revenue, whether a significant financing component is
contained or not, the Company shall always measure the loss allowance at an amount equal to
lifetime expected credit losses.
For lease receivables recognized according to Accounting Standards for Business Enterprises
No. 21 Lease, the Company shall always measure the loss allowance at an amount equal to
lifetime expected credit losses.
For other financial instruments, the Company shall assess changes in the credit risk of the
relevant financial instruments since initial recognition at each balance sheet date.
The company compares the risk of default on the balance sheet date of financial instruments
with the risk of default on the date of initial recognition to determine the relative change in
Bengang Steel Plates Co., Ltd. Interim Report 2026
the risk of default during the expected life of the financial instrument to assess whether there
is a significant increase in credit risk of financial assets since the initial recognition.
Generally, the Company believes that the credit risk of the financial instrument has
significantly increased over 30 days after the due date, unless there is solid evidence that the
credit risk of the financial instrument has not increased significantly since initial recognition.
If the credit risk of a financial instrument at the reporting date is relatively low, the Company
considers that the credit risk of the financial instrument has not increased significantly since
the initial recognition.
If the credit risk of the financial instrument has increased significantly since the initial
confirmation, the Company shall measure the loss allowance for a financial instrument at an
amount equal to the lifetime expected credit losses. If the credit risk on a financial instrument
has not increased significantly since initial recognition, the Company shall measure the loss
allowance for that financial instrument at an amount equal to 12-month expected credit losses.
The increase or reversal amount of loss allowance thus formed shall be included in the
current profits and losses as impairment losses or gains. For financial assets at fair value
through other comprehensive income (debt instruments), loss provisions are recognised in
other comprehensive income and impairment losses or gains are recognised in profit or loss
at the current period without reducing the carrying amount of the financial asset in the
balance sheet.
(11) Recognition criteria and measurement methods for expected credit losses on receivables
Basis for determining
Portfolios Measurement methods for ECL
portfolios
Drawing upon historical credit loss experience
and incorporating current conditions as well as
Accounts receivable – forecasts of future economic conditions, a
Aging
aging portfolio matrix correlating accounts receivable aging
with expected credit loss rates is prepared to
calculate expected credit losses.
Expected credit losses are calculated by
referencing historical credit loss
Related-Party Transactions
experience—combined with current conditions
Accounts Receivable — within the Scope of the
and forecasts of future economic
Risk-Free Portfolio Company’s Consolidated
conditions—using default risk exposure and
Financial Statements
expected credit loss rates over the next 12
months or the entire remaining life.
Drawing upon historical credit loss experience
and incorporating current conditions as well as
Other receivables – aging forecasts of future economic conditions, a
Aging
portfolio matrix correlating accounts receivable aging
with expected credit loss rates is prepared to
calculate expected credit losses.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Basis for determining
Portfolios Measurement methods for ECL
portfolios
Items within the scope of
Expected credit losses are calculated by
the Company's
referencing historical credit loss
consolidated financial
experience—combined with current conditions
Other Receivables — statements—including
and forecasts of future economic
Risk-Free Portfolio inter-company balances
conditions—using default risk exposure and
with related parties, petty
expected credit loss rates over the next 12
cash, and suspense
months or the entire remaining life.
accounts
Aging Accounts receivable ECL(%) Other receivables ECL(%)
Within 1 year (inclusive,
same hereafter)
Over 5 years 100 100
on an Individual Basis
For receivables where the credit risk differs significantly from the credit risk of the
portfolio, the Company recognizes expected credit losses on an individual basis.
(12) Inventory
Inventories include material in transit, raw material, turnover materials, finished goods, work
in process, issue commodity, materials for consigned processing, etc.
Inventory is initially measured at cost. Inventory cost includes purchase cost, processing cost
and other expenditures incurred to bring inventory to its current location and state.
The weighted average method is used to confirm the actual cost of the inventories dispatched.
The Company uses perpetual inventory system.
(1) Low-valued consumables shall be amortized in full amount on issuance.
(2) Packing materials shall be amortized in full amount on issuance.
make provision for the inventory impairment loss
Bengang Steel Plates Co., Ltd. Interim Report 2026
On the balance sheet date, inventories shall be measured at the lower of cost and net
realizable value. When the cost of inventories is higher than its net realizable value, provision
for inventory impairment loss shall be made. The net realizable value refers to the amount of
the estimated selling price of the inventory minus the estimated costs that will occur at the
time of completion, estimated selling expenses, and relevant taxes in daily activities.
The net realizable value of inventories (finished goods, stock commodity, material, etc.) held
for direct selling in the daily business activity shall be calculated by deducting the estimated
sale expense and relevant taxes from the estimated sale price of inventories; The net
realizable value of inventories for further processing in the daily business activity shall be
calculated by deducting the estimated cost of completion, estimated sale expense and relevant
taxes from the estimated sale price of inventories; The net realizable value of inventories held
for the execution of sales contracts or labor contracts shall be calculated on the ground of the
contract price. If the Company holds more inventories than the quantities subscribed in the
sales contract, the net realizable value of the excessive part of the inventories shall be
calculated on the ground of the general sales price.
After the inventory impairment is withdrawn, if the factors that previously affected the
write-down of the inventory value have disappeared, causing the net realizable value of the
inventory to be higher than its book value, it shall be reversed within the amount of the
inventory impairment that has been withdrawn, and the reverted amount shall be included in
the current profit and loss.
(13) Contract asset
When either party to a contract has performed, the Company shall present the contract in
the statement of financial position as a contract asset or a contract liability, depending on
the relationship between the Company’s performance and the customer’s payment. If the
Company have the rights to receive consideration (the right is conditioned on factors other
than the passage of time) by transferring goods or services to a customer, the entity shall
present the contract as a contract asset. Contract assets and contract liabilities under the
same contract are disclosed in net amount. An entity shall present any unconditional rights
to consideration (only the passage of time is required) separately as a receivable.
For the accounting policy of the expected credit loss of contract assets, please refer to Note
(10) 6. Impairment provision of the financial assets under “3. Significant accounting
policies and accounting estimates”
(14) Long-term equity investment
Joint control is the contractually agreed sharing of control of an arrangement, which exists
only when decisions about the relevant activities require the unanimous consent of the parties
Bengang Steel Plates Co., Ltd. Interim Report 2026
sharing control. If the Company and other joint venture have joint control of the investee and
have rights to the net assets of the investee, the investee is a joint venture of the Company.
Significant influence is the power to participate in the financial and operating policy
decisions of the investee but not control or join control of those policies. If the Company
could exert significant influence over the investee, the investee is the associate of the
Company.
(1) Long-term equity investment from business acquisition
For a business combination under common control, the initial investment cost of the
long-term equity investment shall be the absorbing party’s share of the carrying amount of
the owner’s equity of the party being absorbed in the consolidated financial statements of the
ultimate controlling party at combination date. The difference between the initial investment
cost and the carrying amount of the previously held equity investment, together with the
additional investment cost for new shares at combination date, shall be adjusted to the capital
reserve. If the balance of capital reserve is not sufficient, any excess shall be adjusted to
retained earnings. When an investor becomes capable of exercising control over an investee
due to additional investment or other reasons, the difference between the initial investment
cost recognized in accordance with the above principles and the sum of the book value of the
long-term equity investment before the merger plus the book value of the cost for the further
shares acquired on the merger date, shall be adjusted to the capital reserve. If the balance of
capital reserve is not sufficient, any excess shall be adjusted to retained earnings.
For a business combination not under common control, the initial investment cost of the
long-term equity investment shall be the acquisition cost at the acquisition date. When an
investor becomes capable of exercising control over an investee due to additional investment
or other reasons, the initial investment cost under the cost method shall be the carrying
amount of previously held equity investment together with the additional investment cost.
(2) The initial cost of the long-term equity investment other than from business acquisition
The initial cost of a long-term equity investment obtained by making payment in cash shall
be the purchase cost which is actually paid.
The initial cost of a long-term equity investment obtained on the basis of issuing equity
securities shall be the fair value of the equity securities issued.
Bengang Steel Plates Co., Ltd. Interim Report 2026
(1) Cost method
The Company adopts cost method for the long term investment in subsidiary company unless
the investment qualifies as held for sale. An investing enterprise shall, in accordance with the
attributable share of the net profits or losses of the invested entity, recognize the investment
profits or losses except the dividend declared but unpaid, which is included in the payment
when acquiring the investment.
(2) Equity method
A long-term equity investment in an associate or a joint venture shall be accounted for using
the equity method. Where the initial investment cost of a long-term equity investment
exceeds investor’s interest in the fair values of an investee’s identifiable net assets at the
acquisition date, no adjustment shall be made to the initial investment cost. Where the initial
cost is less than the investor’s interest in the fair values of the investee’s identifiable net
assets at the acquisition date, the difference shall be credited to profit or loss for the current
period, and the cost of long-term equity investment shall be adjusted accordingly.
The Company shall recognize its share of the investee’s net profits or losses, as well as its
share of the investee’s other comprehensive income, as investment income or losses and other
comprehensive income, and adjust the carrying amount of the investment accordingly. The
carrying amount of the investment shall be reduced by the portion of any profit distributions
or cash dividends declared by the investee that is attributable to the investor. The investor’s
share of the investee’s owners’ equity changes, other than those arising from the investee’s
net profit or loss, other comprehensive income or profit distribution, and the carrying amount
of the long-term equity investment shall be adjusted accordingly.
During the holding period, if the investee makes consolidated financial statements, the
Company shall calculate its share based on the investee’s net profit, other comprehensive
income and the amount of other owners' equity attribute to the investee in the consolidated
financial statements. The investor shall recognize its share of the investee’s net profits or
losses after making appropriate adjustments according to the Company’s accounting
principles and operating period based on the fair values of the investee’s identifiable net
assets.
The unrealized profits or losses resulting from transactions between the investor and its
associate or joint venture shall be eliminated in proportion to the investor’s equity interest in
the investee, based on which investment income or losses shall be recognized, except the
transaction of investment or sale of assets is a business. Any losses resulting from
Bengang Steel Plates Co., Ltd. Interim Report 2026
transactions between the investor and investee which are attributable to asset impairment
shall be recognized in full.
The company’s net losses incurred by joint ventures or associates, in addition to assuming
additional loss obligations, are limited to the book value of long-term equity investments and
other long-term equity that essentially constitutes net investment in joint ventures or
associates. If a joint venture or associated enterprise realizes net profits in the future, the
company resumes recognizing its share of profits after the share of profits makes up for the
share of unrecognized losses.
(3) Disposal of long-term equity investment
When disposing long-term equity investment, the difference between the proceeds actually
received and the carrying amount shall be recognized in profit or loss for the current period.
Partial disposal of long-term equity investments accounted for by the equity method, and the
remaining equity is still accounted for by the equity method, the other comprehensive income
recognized by the original equity method shall be carried forward according to the same basis
as the direct disposal of related assets or liabilities by the investee. All other changes in the
interests of the holders are carried forward to the current profit and loss on a pro rata basis.
When an investor can no longer exercise joint control of or significant influence over an
investee due to disposal of equity investment or other reasons, any other comprehensive
income previously recognized shall be accounted for on the same basis as would have been
required if the investee had directly disposed of the related assets or liabilities for the current
period upon discontinuation of the equity method. Other owner's equity change shall be
transferred into profit or loss of current period in full when the Company cease to adopt the
equity method.
When an investor can no longer control the investee due to partial disposal, when the
individual financial statements are prepared, the remaining equity can exercise joint control
or significant influence on the investee, the equity method shall be used to account for the
remaining equity. It is deemed that the equity method is adopted for adjustment since the
acquisition, and the other comprehensive income recognized before the control of the
investee is obtained is carried forward on the same basis as the direct disposal of related
assets or liabilities by the investee, because the equity method is used for accounting. The
confirmed changes in other owners’ equity are carried forward to the current profit and loss
on a pro rata basis. If the remaining equity cannot exercise joint control or exert significant
influence on the investee, it shall be recognized as a financial asset, and the difference
Bengang Steel Plates Co., Ltd. Interim Report 2026
between its fair value and book value on the date when control is lost shall be included in the
current profit and loss, and other comprehensive income and other owner’s interests
previously recognized shall be transferred to profit or loss in full.
If the equity investment of a subsidiary is disposed through multiple transactions until it loses
control, which is a package transaction, each transaction shall be accounted as a transaction
that disposes of the equity investment of the subsidiary and loses control. Each transaction
before the loss of control, the difference between the disposal price and the book value of the
corresponding disposed part of long-term equity investment is firstly recognized as other
comprehensive income in individual financial statements, and then transferred to the current
profit and loss when the control is lost. If it is not a package transaction, each transaction
shall be accounted separately.
(15) Fixed assets
The term "fixed assets" refers to the tangible assets held for the sake of producing
commodities, rendering labor service, renting or business management and of which useful
life is in excess of one fiscal year. No fixed asset may be recognized unless it simultaneously
meets the conditions as follows:
(1) The economic benefits pertinent to the fixed asset are likely to flow into the enterprise;
and
(2) The cost of the fixed asset can be measured reliably.
Fixed assets are initially measured at cost (and considering the impact of expected
dismantling cost factors).
Subsequent expenditures related to fixed assets are included in the cost of fixed assets when
the related economic benefits are likely to flow in and their costs can be reliably measured;
the book value of the replaced part is derecognized; all other subsequent expenditures are
incurred shall be included in the current profit and loss.
Fixed assets are depreciated under the straight line method. The depreciation rate is
determined according to the category of assets, the useful life and the expected residual rate.
If the components of the fixed assets have different useful lives or provide the economic
benefits in a different way, then different depreciation rate or method shall be applied and the
depreciation of the components shall be calculated separately.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Details of classification, depreciation period, residual value rate and annual depreciation rate
are as follows:
Depreciation
Depreciation Residual Value
Category Depreciation method Rate
Period Rate (%)
(%)
Plants and Buildings straight line method 40 years 5.00 2.38
Machinery straight line method 17-24 years 5.00 3.96-5.59
Transportation and
straight line method 5-12 years 5.00 7.92-19.00
other equipment
When a fixed asset is disposed, or it is expected that no economic benefits will be generated
through use or disposal, the recognition of fixed asset shall be de terminated. The amount of
disposal income of fixed assets raising from sell, transfer, scrapping or damage shall be
included in the current profit and loss after deducting its book value and related taxes.
(16) Construction in progress
Construction in progress is measured at the actual cost incurred. The actual cost includes
construction costs, installation costs, borrowing costs that meet the capitalization conditions,
and other necessary expenditures incurred before the construction in progress reaches its
intended use status. Construction in progress is transferred to fixed asset when it has reached
its working condition for its intended use and depreciation will be accrued from the next
month.
(17) Borrowing costs
Where the borrowing costs incurred to an enterprise can be directly attributable to the
acquisition and construction or production of assets eligible for capitalization, it shall be
capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be
recognized as expenses on the basis of the actual amount incurred, and shall be recorded into
the current profits and losses.
Assets eligible for capitalization refer to the fixed assets, investment property, inventories and
other assets, of which the acquisition and construction or production may take quite a long
time to get ready for its intended use or for sale.
Bengang Steel Plates Co., Ltd. Interim Report 2026
The capitalization period shall refer to the period from the commencement to the cessation of
capitalization of the borrowing costs, excluding the period of suspension of capitalization of
the borrowing costs.
The borrowing costs shall not be capitalized unless they simultaneously meet the following
requirements:
(1) The asset disbursements have already incurred, which shall include cash, transferred
non-cash assets or interest bearing debts paid for the acquisition and construction or
production activities for preparing assets eligible for capitalization;
(2) The borrowing costs has already incurred; and
(3) The acquisition and construction or production activities which are necessary to prepare
the asset for its intended use or sale have already started.
When the qualified asset under acquisition and construction or production is ready for the
intended use or sale, the capitalization of the borrowing costs shall be ceased.
Where the acquisition and construction or production of a qualified asset is interrupted
abnormally and the interruption period lasts for more than 3 months, the capitalization of the
borrowing costs shall be suspended. If the interruption is a necessary step for making the
qualified asset under acquisition and construction or production ready for the intended use or
sale, the capitalization of the borrowing costs shall continue. The borrowing costs incurred
during such period shall be recognized as expenses, and shall be recorded into the profits and
losses of the current period, till the acquisition and construction or production of the asset
restarts.
For interest expense (minus the income of interests earned on the unused borrowing loans as
a deposit in the bank or investment income earned on the loan as a temporary investment)
and the ancillary expense incurred to a specifically borrowed loan, those incurred before a
qualified asset under acquisition, construction or production is ready for the intended use or
sale shall be capitalized at the incurred amount when they are incurred, and shall be recorded
into the costs of the asset eligible for capitalization.
The Company shall calculate and determine the to-be-capitalized amount of interests on the
general borrowing by multiplying the weighted average asset disbursement of the part of the
accumulative asset disbursements minus the general borrowing by the capitalization rate of
Bengang Steel Plates Co., Ltd. Interim Report 2026
the general borrowing used. The capitalization rate shall be calculated and determined in light
of the weighted average interest rate of the general borrowing.
During the capitalization period, the exchange difference between the principal and interest
of the foreign currency special loan is capitalized and included in the cost of the assets that
meet the capitalization conditions. Exchange differences arising from the principal and
interest of foreign currency borrowings other than foreign currency special borrowings are
included in the current profits and losses.
(18) Intangible Assets
(1) Initial measurement is based on cost upon acquisition
The cost of an intangible asset on acquisition include the purchase price, relevant taxes and
other necessary disbursements which may be directly attributable to bringing the intangible
asset to the conditions for the expected purpose.
(2) Subsequent Measurement
The Company shall analyze and judge the beneficial period of intangible assets upon
acquisition.
Intangible assets with finite beneficial period shall be amortized under the straight-line
method during the period when the intangible asset can bring economic benefits to the
enterprise. If it is unable to estimate the beneficial period of the intangible asset, it shall be
regarded as an intangible asset with uncertain service life and shall not be amortized.
Amortization Residual value
Item Estimated useful life Criteria
method (%)
Straight line Land use right
Land use right 50 years
method certificate
Straight line Estimated useful
Software 10 years
method life
The expenditures for its internal research and development projects of an enterprise shall be
classified into research expenditures and development expenditures.
Research phase refers to the phase of creative and planned investigation to acquire and study
to acquire and understand new scientific or technological knowledge.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Development phase refers to the phase during which the result of research phase or other
knowledge is applied into certain projects or designs for the manufacturing of new or
substantially improved material, device and product before commercial manufacturing and
use.
Expenditures incurred during the research phase are recognized in profit or loss for the period
when incurred. Expenditures incurred during the research phase shall be capitalized if they
meet the following conditions at the same time. If the expenditures incurred during the
development phase do not meet the following conditions, they shall be included in the current
period's profit and loss.
(1) It is technically feasible to complete the intangible asset so that it can be used or sold.
(2) The Company intent to complete the intangible asset and use or sell it.
(3) The way intangible assets generate economic benefits, including being able to prove that
there is a market for the products produced by using the intangible assets or the
intangible assets themselves has market. If the intangible assets will be used internally, it
should be able to prove that the intangible assets will be useful.
(4) The company has sufficient technical, financial and other resources to complete the
development of the intangible asset and is able to use or sell the intangible asset.
(5) The expenditure attributable to the development phase of the intangible asset can be
measured reliably.
If it is impossible to distinguish between expenditures in the research phase and expenditures
in the development phase, all research and development expenditures incurred shall be
included in the current period's profit and loss.
(19) Impairment of long-term assets
For long-term assets such as long-term equity investments, investment property under the
cost model, fixed assets, construction in progress, right-of-use assets, intangible assets with
limited useful lives and oil gas assets etc., the Company shall perform impairment tests at the
period end if there is clear indication of impairment. If the recoverable amounts of long-term
assets are less than their carrying amounts, the carrying amounts of the assets shall be written
down to their recoverable amounts. The write-downs are recognized as impairment losses and
charged to current profit and loss. The recoverable amounts of long-term assets are the higher
of their fair values less costs to sell and the present values of the future cash flows expected
to be derived from the assets. The Company shall estimate its recoverable amount on an
individual basis. Where it is difficult to do so, it shall determine the recoverable amount of
the assets on the basis of the asset group to which the asset belongs. The term "assets group”
Bengang Steel Plates Co., Ltd. Interim Report 2026
refers to a minimum combination of assets by which the cash flows could be generated
independently
The goodwill, intangible assets with uncertain useful life and intangible assets not meeting
the expected condition for use shall be subject to an impairment test at least at the end of each
year.
When the Company makes an impairment test of assets, it shall, as of the purchasing day,
apportion the carrying value of the business reputation formed by merger of enterprises to the
relevant asset groups by a reasonable method. Where it is difficult to do so, it shall be
apportioned to the relevant combinations of asset groups. A related group of assets or
combination of asset groups is an asset group or combination of asset groups that can benefit
from the synergy effect of a business combination.
When making an impairment test on the relevant asset groups or combination of asset groups
containing business reputation, if any evidence shows that the impairment of asset groups or
combinations of asset groups is possible, the Company shall first make an impairment test on
the asset groups or combinations of asset groups not containing business reputation, calculate
the recoverable amount, compare it with the relevant carrying value and recognize the
corresponding impairment loss. Then the Company shall make an impairment test of the asset
groups or combinations of asset groups containing business reputation, and compare the
carrying value of these asset groups or combinations of asset groups (including the carrying
value of the business reputation apportioned thereto) with the recoverable amount. Where the
recoverable amount of the relevant assets or combinations of the asset groups is lower than
the carrying value thereof, it shall recognize the impairment loss of the business reputation.
Impairment losses on long-term assets shall not be reversed in subsequent accounting periods
once recognized.
(20) Long-term deferred expense
The long-term deferred expense refers to the expenses incurred but shall be borne by current
and subsequent accounting period, which is more than one year.
(21) Contract liability
When either party to a contract has performed, the Company shall present the contract in the
statement of financial position as a contract asset or a contract liability, depending on the
relationship between the Company’s performance and the customer’s payment. If a customer
pays consideration, or the Company has a right to an amount of consideration before the
Bengang Steel Plates Co., Ltd. Interim Report 2026
Company transfers a good or service to the customer, the Company shall present the contract
as a contract liability. Contract assets and contract liabilities under the same contract are
disclosed in net amount.
(22) Employee benefits
The Company shall recognise, in the accounting period in which an employee provides
service, actually occurred short-term employee benefits as a liability, with a corresponding
charge to the profit or loss or cost of an asset for the current period.
Payments made by an enterprise of social security contributions for employees, payments of
housing funds, and union running costs employee education costs provided in accordance
with relevant requirements shall, in the accounting period in which employees provide
services, be calculated according to prescribed bases and percentages in determining the
amount of employee benefits.
The employee welfare expenses incurred by the company are included in the current profit
and loss or related asset costs based on the actual amount when they actually occur. Among
them, non-monetary benefits are measured at fair value.
(1) Defined contribution plan
The Company shall recognize, in the accounting period in which an employee provides
service, pension fund and unemployment fund for employees as a liability according to
the local government regulations. The amount shall be calculated according to local
prescribed bases and percentages in determining the amount of employee benefits, with a
corresponding charge to the profit or loss or cost of an asset for the current period. In
addition, the Company also participates in the enterprise annuity plan/supplementary
pension insurance fund approved by relevant state departments. The Company pays a
certain proportion of the total salary of employees to the annuity plan/local social
insurance agency, and the corresponding expenses are included in the current profit and
loss or related asset cost.
(2) Defined benefit plan
In accordance with the formula determined by the Projected Unit Credit Method, the
Company attributes the benefit obligations arising from defined benefit plans to the
periods during which employees render services, and records them in current profit or
loss or as part of the cost of relevant assets.
Bengang Steel Plates Co., Ltd. Interim Report 2026
The deficit or surplus resulting from the present value of the defined benefit plan
obligations less the fair value of the defined benefit plan assets is recognized as a net
defined benefit liability or net defined benefit asset. Where a defined benefit plan has a
surplus, the Company measures the net defined benefit asset at the lower of the plan
surplus and the asset ceiling.
All defined benefit obligations—including those expected to be settled within twelve
months after the end of the reporting period in which employees render the related
service—are discounted using market yields at the balance sheet date on government
bonds or high-quality corporate bonds in an active market that match the currency and
term of the defined benefit obligations.
Service costs arising from defined benefit plans, as well as the net interest on the net
defined benefit liability or asset, are recognized in current profit or loss or included in the
cost of relevant assets. Changes arising from the remeasurement of the net defined
benefit liability or asset are recognized in other comprehensive income and are not
subsequently reclassified to profit or loss in future accounting periods; upon the
termination of the defined benefit plan, the amounts originally recognized in other
comprehensive income are transferred in full within equity to retained earnings.
Upon the settlement of a defined benefit plan, a settlement gain or loss is recognized
based on the difference between the present value of the defined benefit obligation and
the settlement price, both determined as of the settlement date.
The Company shall recognize an employee benefits liability for termination benefits, with a
corresponding charge to the profit or loss for the current period, at the earlier of the following
dates: when the Company cannot unilaterally withdraw the offer of termination benefits
because of an employment termination plan or a curtailment proposal; or when the Company
recognizes costs or expenses related to a restructuring that involves the payment of
termination benefits.
(23) Estimated liabilities
The obligation pertinent to a contingency shall be recognized as an estimated liability when
the following conditions are satisfied simultaneously:
(1) That obligation is a current obligation of the enterprise;
(2) It is likely to cause any economic benefit to flow out of the enterprise as a result of
performance of the obligation; and
(3) The amount of the obligation can be measured in a reliable way.
Bengang Steel Plates Co., Ltd. Interim Report 2026
The estimated debts shall be initially measured in accordance with the best estimate of the
necessary expenses for the performance of the current obligation.
To determine the best estimate, an enterprise shall take into full consideration of the risks,
uncertainty, time value of money, and other factors pertinent to the Contingencies. If the time
value of money is of great significance, the best estimate shall be determined after
discounting the relevant future outflow of cash.
When all or some of the expenses necessary for the liquidation of an estimated debts of an
enterprise is expected to be compensated by a third party, the compensation shall be
separately recognized as an asset only when it is virtually certain that the reimbursement will
be obtained. The amount recognized for the reimbursement shall not exceed the book value
of the estimated debts.
The company reviews the book value of the estimated liabilities on the balance sheet date. If
there is conclusive evidence that the book value does not reflect the current best estimate, the
book value will be adjusted according to the current best estimate.
(24) Revenue
(1) The general principle of revenue recognition and measurement
The company shall recognise revenue when (or as) the company satisfies a performance
obligation when (or as) the customer obtains control of a promised good or service. Control
of a promised good or service refers to the ability to direct the use of, and obtain substantially
all of the remaining benefits from it.
If the contract contains two or more performance obligations, the company shall allocate the
transaction price to each individual performance obligation based on the relative proportion
of the stand-alone selling price of the goods or services promised by each individual
performance obligation on the date of the contract. The company measures revenue based on
the transaction price allocated to each individual performance obligation.
The transaction price is the amount of consideration to which the company expects to be
entitled in exchange for transferring promised goods or services to a customer, excluding
amounts collected on behalf of third parties or amounts expected to be returned to customers.
The company shall consider the terms of the contract and its customary business practices to
determine the transaction price. When determining the transaction price, the company shall
consider the effects of all of the following: variable consideration, the existence of a
significant financing component in the contract, non-cash consideration, and consideration
payable to a customer. The company determines the transaction price that includes variable
Bengang Steel Plates Co., Ltd. Interim Report 2026
consideration at an amount that does not exceed the amount of accumulated recognized
revenue that is unlikely to be materially reversed when the relevant uncertainty is eliminated.
If there is a significant financing component in the contract, the company shall recognise
revenue at an amount that reflects the price that a customer would have paid for the promised
goods or services if the customer had paid cash for those goods or services when (or as) they
transfer to the customer, and use the effective interest method to amortize the difference
between the transaction price and the contract consideration during the contract period.
The company transfers control of a good or service over time and, therefore, satisfies a
performance obligation and recognises revenue over time, if one of the following criteria is
met. Otherwise, the company satisfies the performance obligation at a point in time.
(a) the customer simultaneously receives and consumes the benefits provided by the
company’s performance as the company performs;
(b) the company’s performance creates or enhances an asset that the customer controls as the
asset is created or enhanced; or
(c) the company’s performance does not create an asset with an alternative use to the
company and the company has an enforceable right to payment for performance completed to
date.
The company shall recognise revenue over time by measuring the progress towards complete
satisfaction of that performance obligation, except where the performance progress cannot be
reasonably determined. The company considers the nature of the goods or services and
adopts the output method or the input method to determine the progress of performance.
Where the performance progress cannot be reasonable determined, but the company expects
to recover the costs incurred in satisfying the performance obligation, the company shall
recognise revenue only to the extent of the costs incurred until such time that it can
reasonably measure the outcome of the performance obligation.
For performance obligations satisfied at a certain point in time, the company shall recognises
revenue at the point when the customer obtains control of the relevant goods or services. To
determine the point in time at which a customer obtains control of a promised goods or
services, the company shall consider requirements as follows:
(a) The company has a present right to payment for the promised goods or services and the
customer is presently obliged to pay for that;
(b) The company has transferred the legal title of the goods to the customer, that is, the
customer has the legal title to the goods;
(c) The company has transferred physical possession of the goods to the customer, that is, the
customer has taken possession of the goods;
Bengang Steel Plates Co., Ltd. Interim Report 2026
(d) The company has transferred the significant risks and rewards of ownership of the goods
to the customer, that is, the customer has the significant risks and rewards of ownership of the
goods;
(e) The customer has accepted the promised goods or services.
The Company determines whether it is the principal or agent when engaging in a transaction
based on whether it has control over the goods or services before transferring them to the
customer. If the Company is able to control the goods or services before transferring them to
the customer, the Company is the principal and recognizes revenue based on the total
consideration received or receivable; otherwise, the Company is the agent and recognizes
revenue based on the amount of commissions or fees it expects to be entitled to receive.
(2) The specific criteria of revenue recognition and measurement
Commodity sales contracts between companies and customers usually only include
performance obligations for the transfer of steel and other commodities. This type of
performance obligation is a performance obligation performed at a certain point in time. The
Company recognizes revenue when the customer obtains control of the relevant goods or
services. When judging whether the customer has obtained control of goods or services, the
company considers the following signs:
The company obtains the current right of collection of receivables, the legal ownership of the
goods is transferred to the customer, the physical assets of the goods are transferred to the
customer, the company transfers the main risks and rewards of the ownership of the goods to
the customer, and the customer has accepted the goods.
(25) Contract costs
Contract costs include costs to fulfill a contract and incremental costs of obtaining a contract.
If the costs incurred in fulfilling a contract with a customer are not within the scope of
another Standard, for example, Inventories, Property, Plant and Equipment or Intangible
Assets, the company shall recognise an asset from the costs incurred to fulfil a contract only
if those costs meet all of the following criteria:
(a) the costs relate directly to a contract or to an expected contract;
(b) the costs generate or enhance resources of the Company that will be used in satisfying
performance obligations in the future; and
(c) the costs are expected to be recovered.
The company shall recognise as an asset the incremental costs of obtaining a contract with a
customer if the company expects to recover those costs.
Bengang Steel Plates Co., Ltd. Interim Report 2026
An asset recognised in accordance with contract costs shall be amortised in consistent with
the transfer to the customer of the goods or services to which the asset relates. The company
may recognise the incremental costs of obtaining a contract as an expense when incurred if
the amortisation period of the asset is one year or less.
The company shall recognise an impairment loss in profit or loss to the extent that the
carrying amount of an asset related to contract assets exceeds:
(a) the remaining amount of consideration that the company expects to receive in exchange
for the goods or services to which the asset relates; less
(b) the costs that relate directly to providing those goods or services and that have not been
recognised as expenses.
The company shall recognise in profit or loss a reversal of some or all of an impairment loss
previously recognised when the impairment conditions no longer exist or have improved. The
increased carrying amount of the asset shall not exceed the carrying amount that if no
impairment loss had been recognised previously.
(26) Government Subsidies
A government subsidy means the monetary or non-monetary assets obtained free of charge
by the Company from the government. Government subsidies consist of the government
subsidies pertinent to assets and government subsidies pertinent to income.
Government subsidies related to assets are government subsidies whose primary
condition is that an entity qualifying for them should purchase, construct or otherwise
acquire long-term assets. The government subsidies related to incomes refers to
government subsidies other than those related to assets.
Government subsidies are recognized when the Company is able to meet the conditions
attached to them and is able to receive them.
Government subsidies related to assets shall be recognized by deducting the subsidies at
the carrying amount of the assets or recognized as deferred income. Subsidies that
recognized as deferred income shall be recognized in profit or loss on a systematic basis
over the periods during the useful lives of the relevant assets (Subsidies related to daily
activities should be recorded in Other Income. Subsidies that unrelated to daily
activities should be recorded in Non-operating Income).
The government subsidies related to incomes to compensate future expenses, shall be
recognized as deferred income and transferred to current profit or loss (Subsidies related
to daily activities should be recorded in Other Income. Subsidies that unrelated to daily
activities should be recorded in Non-operating Income) in the period during which the
expenses compensation is recognized or deduct relevant cost or loss. Government
subsidies to compensate expenses or losses already incurred shall be recognized in
Bengang Steel Plates Co., Ltd. Interim Report 2026
current profit and loss (Subsidies related to daily activities should be recorded in Other
Income. Subsidies unrelated to daily activities should be recorded in Non-operating
Income) or deduct relevant cost or loss.
The policy discount loans obtained by the company are divided into the following two
situations and are separately accounted for:
(a) The government allocates discounted funds to the loan bank, and the loan bank
provides loans to the company at a policy preferential interest rate. The preferential
interest rate is used to calculate the relevant borrowing costs.
(b) If the government directly allocates the discounted funds to the company, the
company will offset the relevant borrowing costs with the corresponding discounts,
directly accounted for the current profit or loss or recognized as deferred income.
(27) Deferred tax assets and deferred tax liabilities
Income tax includes current income tax and deferred income tax. Except for income tax
arising from business combinations and transactions or events directly recorded in owners'
equity (including other comprehensive income), the Company records current income tax
and deferred income tax in current profit or loss.
Deferred income tax assets and deferred income tax liabilities are calculated and confirmed
based on the difference (temporary difference) between the tax base of assets and liabilities
and their book value.
An enterprise shall recognize the deferred income tax assets arising from a deductible
temporary difference to the extent of the amount of the taxable income which it is most
likely to be obtained and which can be deducted from the deductible temporary difference.
As for any deductible loss or tax deduction that can be carried forward to the next year, the
corresponding deferred income tax assets shall be determined to the extent that the amount
of future taxable income to be offset by the deductible loss or tax deduction to be likely
obtained.
All taxable temporary differences shall be recognized as deferred tax liabilities with certain
limited exceptions.
Exceptions when deferred tax assets and deferred tax liabilities are not recognized include:
- Initial recognition of goodwill;
- A transaction or event that is neither a business combination nor affects accounting profit
and taxable income (or deductible loss) when it occurs, and the assets and liabilities
initially recognized do not result in equal taxable temporary differences and deductible
temporary differences.
For taxable temporary differences related to investments in subsidiaries, associates and joint
ventures, deferred income tax liabilities are recognized, unless the company can control the
timing of the reversal of the temporary differences and the temporary differences are likely
not to be transferred back in the foreseeable future. For deductible temporary differences
related to investments in subsidiaries, associates and joint ventures, when the temporary
differences are likely to be reversed in the foreseeable future and are likely to be used to
deduct the taxable income of deductible temporary differences in the future, income tax
assets are recognized.
At the balance sheet date, deferred income tax assets and deferred income tax liabilities are
measured at the applicable tax rate during the period when the relevant assets are expected
to be recovered or the relevant liabilities are expected to be recovered in accordance with
the provisions of the tax law.
Bengang Steel Plates Co., Ltd. Interim Report 2026
At the balance sheet date, the company reviews the book value of deferred income tax assets.
If it is probable that sufficient taxable income cannot be obtained in the future to offset the
benefits of deferred income tax assets, the book value of the deferred income tax assets shall
be written down. When it is possible to obtain sufficient taxable income, the reduced
amount shall be reversed.
When the Company has the statutory right to offset and intend to offset or obtain assets and
pay off liabilities at the same time, the current income tax assets and current income tax
liabilities are presented at the net amount after offsetting.
An entity shall offset deferred tax assets and deferred tax liabilities if, and only if: (a) the
entity has a legally enforceable right to set off current tax assets against current tax
liabilities; and (b) deferred income tax assets and deferred income tax liabilities are related
to income taxes levied by the same tax collection and administration department on the
same taxpayer or to different taxpayers, but in each future period of significant deferred
income tax assets and liabilities reversal, the taxpayers involved intend to settle the current
income tax assets and liabilities on a net basis or to acquire assets and settle liabilities at the
same time.
(28) Leases
Lease refers to a contract in which the lessor transfers the right to use the asset to the lessee
within a certain period of time to obtain consideration.
On the starting date of the contract, the company assesses whether the contract is a lease or
contains a lease. If the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration, the contract is, or contains, a lease.
For a contract that contains a lease component and one or more additional lease or non-lease
components, a lease shall allocate the consideration in the contract to each lease component
on the basis of the relative stand-alone price of the lease component and the aggregate
stand-alone price of the non-lease components.
(1) Right-of-use assets
On the start date of the lease term, the company recognizes the right-of-use asset for leases
other than short-term leases and low-value asset leases. Right-of-use assets are initially
measured at cost.
This cost includes:
? The initial measurement amount of the lease liability;
? If there is a lease incentive for the lease payment paid on or before the start of the
lease term, the relevant amount of the lease incentive already enjoyed shall be
deducted;
? The initial direct expenses incurred by the company;
? The company expects to incur costs for dismantling and removing leased assets,
restoring the site where leased assets are located, or restoring leased assets to the
Bengang Steel Plates Co., Ltd. Interim Report 2026
state agreed upon in the lease terms, but does not include the costs incurred for the
production of inventory.
The company uses the straight-line method to depreciate the right-of-use assets. If it can be
reasonably determined that the ownership of the leased asset will be obtained at the end of
the lease term, the company shall depreciate the leased asset during the remaining useful life;
otherwise, the leased asset will be depreciated during the shorter period of the lease term and
the remaining useful life of the leased asset .
The company determines whether the right-of-use asset has been impaired in accordance with
the principles described in "3. (19) Long-term asset impairment" in this note, and conducts
accounting treatment for the identified impairment loss.
(2) Lease liabilities
At the beginning of the lease term, the company recognizes lease liabilities for leases other
than short-term leases and leases of low-value assets. Lease liabilities are initially measured
based on the present value of the payments that are not paid at that date. Lease payments
include:
receivable;
option;
exercising an option to terminate the lease;
The company uses the interest rate implicit in the lease as the discount rate, but if the interest
rate implicit in the lease cannot be reasonably determined, the company's incremental
borrowing interest rate is used as the discount rate.
The company calculates the interest expense of the lease liability during each period of the
lease term according to a fixed periodic interest rate, and includes it in the current profit and
loss or the cost of related assets.
Variable lease payments that are not included in the measurement of lease liabilities are
included in the current profit and loss or the cost of related assets when they occur.
After the start of the lease term, if the following circumstances occur, the company
Bengang Steel Plates Co., Ltd. Interim Report 2026
re-measures the lease liability and adjusts the corresponding right-of-use asset. If the book
value of the right-of-use asset has been reduced to zero, but the lease liability still needs to be
further reduced, the difference shall be included in the current profit and loss:
• When the evaluation result or actual exercise situation of the purchase option, renewal
option or termination option changes, the company remeasures the lease liability based on the
present value calculated by the lease payment after the change and the revised discount rate;
• When the actual fixed payment changes, the expected payable amount of the guarantee
residual value changes, or the index or ratio used to determine the lease payment changes, the
company calculates the present value based on the changed lease payment and the original
discount rate to remeasure the lease liability. However, if changes in lease payments originate
from changes in floating interest rates, the revised discount rate is used to calculate the
present value.
(3) Short-term leases and low-value asset leases
The company chooses not to recognize right-of-use assets and lease liabilities for short-term
leases and low-value asset leases, and calculates the relevant lease payments in the current
profit and loss or related asset costs on a straight-line basis during each period of the lease
term. Short-term lease refers to a lease that does not include purchase options for a lease
period not exceeding 12 months at the beginning of the lease period. Low-value asset leasing
refers to a lease with a lower value when a single leased asset is a new asset. If the company
subleases or expects to sublease the leased assets, the original lease is not a low-value asset
lease.
(4) Lease modifications
The lease shall account for a lease modification as a separate lease if both:
? The modification increases the scope of the lease by adding the right to use one or
more underlying assets; and
? the consideration for the lease increases by an amount commensurate with the
stand-alone price for the increase in scope and any appropriate adjustment to that
stand-alone price to reflect the circumstances of the particular contract.
For a lease modification that is not accounted for as a separate lease, at the effective date of
the lease modification a lessee shall allocate the consideration in the modified contract,
determine the lease term of the modified lease and remeasure the lease liabilities by
Bengang Steel Plates Co., Ltd. Interim Report 2026
discounting the revised lease payments using a revised discount rate.
For a lease modification that is not accounted for as a separate lease, the lessee shall account
for the remeasurement of the lease liabilities by decreasing the carrying amount of the
right-of-use assets to reflect the partial or full termination of the lease for lease modifications
that decrease the scope of the lease. The lessee shall recognize in profit or loss any gain or
loss relating to the partial or full termination of the lease; or by making a corresponding
adjustment to the right-of-use asset for all other lease modifications.
On the commencement date of the lease, the company divides the lease into finance lease and
operating lease. Finance lease refers to a lease in which almost all the risks and rewards
related to the ownership of the leased asset are transferred regardless of whether the
ownership is ultimately transferred. Operating leases refer to leases other than financial
leases. When the company acts as a sublease lessor, it classifies subleases based on the
right-of-use assets generated from the original lease.
(1) Accounting treatment of operating leases
The lease receipts of operating leases are recognized as rental income in each period of the
lease term according to the straight-line method. The company capitalizes the initial direct
costs incurred related to operating leases, and allocates them to the current profit and loss on
the same basis as the recognition of rental income during the lease term. Variable lease
payments that are not included in the lease receipts are included in the current profit and loss
when they actually occur.
(2) Accounting treatment of finance leasing
On the start date of the lease, the company recognizes the finance lease receivables for the
finance lease and terminates the recognition of the finance lease assets. When the company
initially measures the finance lease receivables, the net lease investment is taken as the entry
value of the financial lease receivables. The net lease investment is the sum of the
unguaranteed residual value and the present value of the lease payment not yet received at the
beginning of the lease term, discounted at the interest rate implicit in the lease.
The company calculates and recognizes the interest income for each period of the lease term
based on a fixed periodic interest rate. The derecognition and impairment of finance lease
receivables shall be accounted for in accordance with "3. (10) Financial Instruments" in this
Note.
Variable lease payments that are not included in the measurement of the net lease investment
Bengang Steel Plates Co., Ltd. Interim Report 2026
are included in the current profit or loss when they actually occur.
A lessor shall account for a modification to a finance lease as a separate lease if both:
• The modification increases the scope of the lease by adding the right to use one or more
underlying assets;
• The consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope and any appropriate adjustments to that stand-alone price to
reflect the circumstances of the particular contract.
For a modification to a finance lease that is not accounted for as a separate lease, a lessor
shall account for the modification as follows:
• If the lease would have been classified as an operating lease had the modification been in
effect at the inception date, the lessor shall account for the lease modification as a new lease
from the effective date of the modification; and measure the carrying amount of the
underlying assets as the net investment in the lease immediately before the effective date of
the lease modification.
• If the change takes effect on the lease start date, the lease will be classified as a financial
lease, and the company will perform accounting treatment in accordance with the policy of
“3. (10) Financial Instruments” in this Note on the modification or re-negotiation of the
contract.
The company evaluates and determines whether the asset transfer in the sale and leaseback
transaction is a sale in accordance with the principles described in "3. (24) Revenue" of this
Note.
(1) As the lessee
If the transfer of an asset in the sale and leaseback transaction is a sale, the company as the
lessee measures the right-of-use asset arising from the leaseback at the proportion of the
previous carrying amount of the asset that relates to the right-of-use retained by the lessee
and recognize only the amount of any gain or loss that relates to the rights transferred to the
lessor.
For details on the subsequent measurement of right-of-use assets and lease liabilities and
lease changes after the commencement date of the lease term, please refer to Note 3 (28)
Leases 1. The Company as Lessee. When subsequently measuring the lease liabilities arising
from a sale and leaseback, the Company determines the lease payments or the modified lease
payments in a manner that does not result in the recognition of gains or losses related to the
Bengang Steel Plates Co., Ltd. Interim Report 2026
right of use acquired through the leaseback.
If the asset transfer in the sale and leaseback transaction does not belong to the sale, the
company as the lessee continues to recognize the transferred assets and at the same time
recognize a financial liability equal to the transfer proceeds. For the accounting treatment of
financial liabilities, please refer to "3. (10) Financial Instruments" in this note.
(2) As a lessor
If the asset transfer in the sale and leaseback transaction is a sale, the company acts as the
lessor to account for the purchase of the asset, and the asset lease is accounted for in
accordance with the aforementioned "2. The company as the lessor" policy; in the sale and
leaseback transaction If the transfer of assets is not a sale, the company as the lessor does not
recognize the transferred assets, but recognizes a financial asset equal to the transfer proceeds.
For the accounting treatment of financial assets, please refer to "3. (10) Financial
Instruments" in this note.
(29) Debt restructuring
The Company terminates the recognition of claims when the contractual right to collect cash
flows from the claims terminates. If debt is restructured by using assets to pay off debts or by
converting debts into equity instruments, the company will recognize the relevant assets
when they meet their definition and recognition conditions.
If debt restructuring is carried out by repaying debts with assets, the transferred non-financial
assets shall be measured at cost at initial recognition.
The Company shall recognize and measure the restructured claims in accordance with "3. (10)
Financial Instruments" of this Note.
When multiple assets are used to settle debts or for debt restructuring, the Company shall first
recognize and measure the financial assets acquired and the restructured claims in accordance
with Note 3. (10) Financial Instruments. It shall then allocate the net amount of the fair value
of the waived claims after deducting the recognized amounts of the acquired financial assets
and the restructured claims in accordance with the fair value ratio of the various assets other
than the acquired financial assets, and on this basis, determine the cost of each asset
separately in accordance with the above method. The difference between the fair value and
the carrying amount of the waived claim should be included in the current profit and loss.
The Company derecognizes a debt when the present obligation for the debt is discharged.
Bengang Steel Plates Co., Ltd. Interim Report 2026
If debt restructuring is carried out by settling debts with assets, the Company shall terminate
the recognition when the relevant assets and the debts settled meet the conditions for
termination of recognition, and the difference between the book value of the debts settled and
the book value of the transferred assets shall be included in the current profit and loss.
In case of debt restructuring by converting debt into equity instruments, the Company shall
derecognize the debts paid when they meet the derecognition conditions. Equity instrument
shall be measured at fair value at initial recognition. If the fair value of an equity instrument
cannot be measured reliably, it is measured at the fair value of the debt settled. The difference
between the carrying amount of the debt settled and the amount recognized as an equity
instrument should be recognized in the current period's profit or loss.
If debt restructuring is carried out by modifying other terms, the Company shall recognize
and measure the restructured debt in accordance with “3. (10) Financial Instruments” of this
Note.
If multiple assets are used to repay debts or a combination is used to restructure debt, the
company shall confirm and measure equity instruments and restructured debts in accordance
with the aforementioned methods. The difference between the carrying amount of the debt
settled and the sum of the carrying amount of the transferred assets and the recognized
amount of the equity instruments and restructured debts is included in the current period's
profit and loss.
(30) Other Significant Accounting Policies and Accounting Estimates
Major accounting estimates and judgments
When preparing financial statements, the Company's management needs to use estimates
and assumptions, which will affect the application of accounting policies and the amount of
assets, liabilities, income and expenses. Actual conditions may differ from these estimates.
The management of the company continuously evaluates the judgment of key assumptions
and uncertainties involved in the estimation, and the impact of changes in accounting
estimates will be recognized in the current and future periods.
The main uncertainties in the estimated amount are as follows:
The company calculates the expected credit loss through the default risk exposure and the
expected credit loss rate, and determines the expected credit loss rate based on the default
Bengang Steel Plates Co., Ltd. Interim Report 2026
probability and the default loss rate. When determining the expected credit loss rate, the
company uses internal historical credit loss experience and other data, and adjusts the
historical data in combination with current conditions and forward-looking information.
When considering forward-looking information, the indicators used by the Company
include the risk of economic downturn, the expected increase in unemployment rate,
changes in the external market environment, technological environment and customer
conditions. The Company regularly monitors and reviews assumptions related to the
calculation of expected credit losses.
As mentioned in note 3 (12) Inventory under “3 Significant accounting policies and
accounting estimates”, the Company regularly estimates the net realizable value of the
inventory, and recognizes the difference in inventory cost higher than the net realizable
value. When estimating the net realizable value of inventory, the Company considers the
purpose of holding the inventory and uses the available information as the basis for
estimation, including the market price of the inventory and the Company's past operating
costs. The actual selling price, completion cost, sales expenses and taxes of the inventory
may change according to changes in market sales conditions, production technology, or the
actual use of the inventory. Therefore, the amount of inventory depreciation reserve may
change according to the above reasons. Adjustments to the inventory impairment will affect
the current profit and loss.
As mentioned in note 3 (19) Long-term Asset Impairment, the company performs an
impairment assessment on assets other than inventory and financial assets on the balance
sheet date to determine whether the recoverable amount of the asset has fallen to a lower
level than its book value. If the situation shows that the book value of the long-term assets
may not be fully recovered, the relevant assets will be deemed to be impaired and the
impairment loss will be recognized accordingly.
The recoverable amount is the higher of the net value of the fair value of the asset (or asset
group) minus the disposal expenses and the present value of the asset (or asset group) 's
expected future cash flow. Because the Company cannot reliably obtain the public market
price of assets (or asset groups), and cannot reliably and accurately estimate the fair value
of assets. Therefore, the Company regards the present value of the expected future cash
flow as the recoverable amount. When estimating the present value of future cash flows, it
is necessary to make a significant judgment on the output, selling price, related operating
costs of the products produced by the asset (or asset group), and the discount rate used in
Bengang Steel Plates Co., Ltd. Interim Report 2026
calculating the present value. The Company will use all available relevant information
when estimating the recoverable amount, including the prediction of output, selling price
and related operating costs based on reasonable and supportable assumptions.
As described in note 3 (15) Fixed Assets and note 3 (18) Intangible Assets, the company
shall accrue depreciation for the fixed assets and amortization for intangible assets within
the useful life after considering their residual value. The company regularly reviews the
useful life of related assets to determine the amount of depreciation and amortization
expenses to be included in each reporting period. The useful life of assets is determined by
the company based on past experience with similar assets and in combination with
anticipated technological changes. If the previous estimates change significantly, the
depreciation and amortization expenses will be adjusted in the future.
When it is estimated that sufficient taxable income can be obtained in the future to use the
unrecovered tax losses and deductible temporary differences, the relevant deferred tax
assets are calculated and confirmed on the basis of the applicable income tax rate during the
period when the asset is expected to be recovered and the amount of taxable income is
limited to deductible tax losses and deductible temporary differences likely to be obtained
by the Company. The Company needs to use judgment to estimate the time and amount of
future taxable income, and make reasonable estimates and judgments on the future
applicable income tax rate according to the current tax policy and other related policies to
determine the deferred tax assets that should be recognized. If the time and amount of
profits actually generated in the future period or the actual applicable income tax rate are
different from the management's estimate, the difference will have an impact on the amount
of deferred tax assets.
(31) Criteria of Materiality
Items Materiality Criteria
Significant The company considers accounts receivables exceeding RMB 5 million as
Receivables significant accounts receivables.
Significant Accounts The company considers accounts payables exceeding RMB 5 million as
Payables significant accounts payables.
Significant Other The company considers other payables exceeding RMB 5 million as
Payables significant other payables.
Significant The company regards the projects with the highest amount transferred to
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Materiality Criteria
Construction in fixed assets or the top 10 projects with the final balance of the current
Progress period and the amount exceeding RMB 50 million as significant
construction in progress.
Significant
The Company regards development expenditures exceeding RMB 5 million
Development
as significant development expenditures.
Expenditure
Significant Joint The company considers joint ventures or associated companies with an
Ventures or Associated ending balance of more than RMB 100 million as important joint ventures
Companies or associated companies.
Subsidiaries whose total assets/total revenue/total profit exceed 15% of the
Significant
group's total assets/total revenue/total profit are considered as significant
Subsidiaries
subsidiaries.
(32) Change of significant accounting policy and accounting estimate
(1) Implementation of Interpretation No. 19 of the Accounting Standards for Business
Enterprises
On December 19, 2025, the Ministry of Finance issued the “Interpretation No. 19 of
Accounting Standards for Business Enterprises” (Cai Kuai [2025] No. 32, hereinafter
referred to as "Interpretation No. 19"), which became effective on January 1, 2026.
A. Accounting Treatment of Compensatory Assets in Business Combinations Not Under
Common Control
As explained in Interpretation No. 19, in a business combination not involving enterprises
under common control, the seller and the purchaser may enter into a contractual
arrangement whereby the seller compensates the purchaser for certain contingencies of the
acquiree or for uncertainties regarding specific assets or liabilities, resulting in the
purchaser acquiring a compensatory asset.
At the same time the acquirer recognizes the indemnified item in its consolidated financial
statements, it shall recognize an indemnification asset measured on the same basis as the
indemnified item, subject to management's assessment of its recoverability, with any
amount not expected to be recovered deducted from the carrying amount of the
indemnification asset. At each subsequent reporting date, the acquirer shall measure the
indemnification asset on the same basis as the indemnified item, taking into account any
contractual limitations on the indemnified amount. If the carrying amount of the
Bengang Steel Plates Co., Ltd. Interim Report 2026
indemnified item changes, the carrying amount of the indemnification asset shall be
adjusted accordingly, with the corresponding impact recognized in investment income. For
an indemnification asset that is not subsequently measured at fair value, management's
assessment of the recoverability of the indemnification asset shall be considered separately,
and any amount not expected to be recovered shall be recognized in investment income.
When the acquirer collects, sells, or otherwise loses the right to the indemnification asset, it
shall derecognize the asset. Any difference between the proceeds received and the carrying
amount of the indemnification asset shall be recognized in investment income.
In its separate financial statements, the acquirer shall recognize an indemnification asset
only when the recognition criteria for a contingent asset are met (i.e., when the receipt of
economic benefits is virtually certain and the amount can be measured reliably), and
simultaneously reduce the initial investment cost of the long-term equity investment. At
each subsequent balance sheet date, the acquirer shall measure the indemnification asset in
accordance with Accounting Standards for Business Enterprises No. 13 — Contingencies,
taking into account both contractual limitations on the indemnified amount and
management's assessment of the recoverability of the indemnification asset, and recognize
any amount not expected to be recovered in investment income.
Upon initial application, an enterprise shall make retrospective adjustments for
indemnification assets existing on the effective date; for indemnification assets that had
been recovered, sold, or for which rights were otherwise lost prior to the effective date, no
retrospective adjustment is required.
The implementation of this interpretation had no material impact on the Company.
B. Accounting treatment of related capital reserve upon disposal of a subsidiary originally
acquired through business combination under common control
Interpretation No. 19 stipulates that when an enterprise disposes of a subsidiary originally
acquired through a business combination under common control and loses control,
regardless of whether the counterparty is a related party or a non-related party, the capital
reserve adjusted on the original combination date—arising from the difference between the
initial investment cost of the long-term equity investment and the carrying amount of the
combination consideration—shall not be reclassified to profit or loss for the current period
or retained earnings in both the separate and consolidated financial statements.
The enterprise shall apply retrospective adjustment upon initial implementation. The
adoption of this Interpretation had no significant impact on the Company.
C. Derecognition of financial liabilities settled through electronic payment systems
Interpretation No. 19 stipulates that when an enterprise settles a financial liability (or a part
thereof) in cash using an electronic payment system, it may elect to derecognize the
Bengang Steel Plates Co., Ltd. Interim Report 2026
financial liability prior to the settlement date only if the enterprise has initiated a payment
instruction and concurrently satisfies all of the following conditions: 1) The enterprise has
no practical ability to withdraw, stop, or cancel the payment instruction; 2) The enterprise
has no practical ability to access the cash to be used to settle the payment instruction; and 3)
The settlement risk associated with the electronic payment system is insignificant. For
example, the electronic payment system executes the payment instruction in accordance
with standard administrative processes, and the time interval between meeting the
aforementioned two conditions and delivering the cash to the counterparty is very short. If
the execution of the payment instruction depends on the enterprise's ability to deliver cash
on the settlement date, the settlement risk associated with the electronic payment system
shall not be considered insignificant.
Upon initial implementation, an enterprise shall apply retrospective adjustment, recognizing
the cumulative effect as an adjustment to retained earnings and other related financial
statement line items as of January 1, 2026, without the need to restate comparative financial
statements for prior periods. The Company has elected to adopt the aforementioned
accounting policy and applies it to all settlements processed through the same electronic
payment system. The adoption of this Interpretation had no significant impact on the
Company.
D. Assessment and Related Disclosures of Contractual Cash Flow Characteristics of
Financial Assets
Interpretation No. 19 stipulates that when an enterprise assesses whether the contractual
cash flows of a financial asset are consistent with a basic lending arrangement, it may need
to consider the different elements of interest. The assessment of interest shall focus on what
the enterprise is being compensated for, rather than the amount of compensation received,
although the latter may indicate that the enterprise is receiving compensation for elements
other than basic lending risks and costs. If the contractual cash flows are indexed to a
variable that is not a basic lending risk or cost (such as the value of equity instruments or
commodity prices), or if the contractual cash flows represent a share of the debtor’s revenue
or profit, such contractual cash flows are inconsistent with a basic lending arrangement.
Where the contractual cash flows arising from a contingent feature are consistent with a
basic lending arrangement both before and after the change in contractual cash flows
(regardless of the probability of the change occurring), the enterprise is still required to
assess the nature of the contingent event. If the nature of the contingent event is directly
related to a change in basic lending risks and costs, and the direction of the change in
contractual cash flows is the same as the direction of the change in basic lending risks and
costs, the contractual cash flows generated by the relevant financial asset represent solely
payments of principal and interest on the principal amount outstanding (SPPI).
Bengang Steel Plates Co., Ltd. Interim Report 2026
If the nature of the contingent event is not directly related to a change in basic lending risks
and costs (e.g., a loan where the interest rate is adjusted downward by a contractually
specified number of basis points upon the borrower achieving contractually agreed carbon
emission reductions), the contractual cash flows generated by the relevant financial asset
represent solely payments of principal and interest on the principal amount outstanding only
if, in all possible contractual scenarios, the resulting contractual cash flows are not
significantly different from the contractual cash flows that would arise from a financial
instrument with identical contractual terms but without such a contingent feature.
Upon initial implementation, an enterprise shall apply retrospective adjustment, recognizing
the cumulative effect as an adjustment to retained earnings and other related financial
statement line items as of January 1, 2026, without restating comparative financial
statements for prior periods. The adoption of this Interpretation had no significant impact
on the Company.
E. Disclosures of Equity Instruments Designated at Fair Value through Other
Comprehensive Income
Interpretation No. 19 stipulates that an enterprise shall disclose, at a minimum by class, the
fair value at the end of the reporting period of equity instrument investments designated as
at fair value through other comprehensive income, as well as the changes in fair value
during the reporting period. An enterprise may provide further disclosures, such as on an
individual investment/item basis, in accordance with the principle of materiality and its
actual circumstances. Among these, the fair value changes relating to investments
derecognized during the reporting period and the fair value changes relating to investments
held at the end of the reporting period shall be disclosed separately. The enterprise shall
also disclose the transfer of cumulative gains or losses recognized in equity related to
investments derecognized during the reporting period.
The Company discloses the relevant information of other equity instrument investments in
accordance with these requirements. The adoption of this Interpretation had no significant
impact on the Company's financial position and operating results.
(2) Implementation of Accounting Standards for Business Enterprises Interpretation
No. 20
On June 17, 2026, the Ministry of Finance issued the Accounting Standards for Business
Enterprises Interpretation No. 20 (Cai Kuai [2026] No. 7, hereinafter referred to as
"Interpretation No. 20"), which came into effect on the date of promulgation.
A. Assessment of Contractual Cash Flow Characteristics of Financial Assets
Bengang Steel Plates Co., Ltd. Interim Report 2026
Interpretation No. 20 sets forth specific classification requirements on whether
"non-recourse financial assets" and "contractually linked instruments" satisfy the criterion
that contractual cash flows represent solely payments of principal and interest on the
principal amount outstanding.
For a financial asset, if an enterprise's ultimate contractual right to receive cash flows is
restricted to the cash flows from specified assets, the financial asset possesses non-recourse
characteristics, in which case the primary risk faced by the enterprise depends on the
performance of the specified assets rather than the credit risk of the debtor. For
non-recourse financial assets, when determining whether they satisfy the contractual cash
flow characteristics of solely payments of principal and interest on the principal amount
outstanding (hereinafter referred to as the "SPPI contractual cash flow characteristics"), the
enterprise shall evaluate the connection between the specified underlying assets or their
cash flows and the contractual cash flows of the financial asset (i.e., a "look-through"
assessment), and consider how this connection is affected by other contractual
arrangements, such as subordinated debt or equity instruments issued by the debtor. If the
contractual terms of the financial asset give rise to any other cash flows or limit the cash
flows in a manner inconsistent with payments representing principal and interest, the
financial asset does not satisfy the SPPI contractual cash flow characteristics. Whether the
underlying assets are financial or non-financial assets does not affect the assessment of the
aforementioned contractual cash flow characteristics.
In certain non-recourse transactions, the issuer may use multiple contractually linked
instruments (i.e., multiple tranches) to prioritize payments to holders of the financial assets.
Each tranche has a specified subordination ranking that determines the order in which cash
flows generated by the underlying pool of financial instruments are allocated to that tranche
by the issuer, thereby creating a "waterfall payment structure." The prioritization of
payments to different tranche holders established through such a "waterfall payment
structure" creates credit risk concentration and results in a disproportionate allocation of
cash shortfalls from the underlying assets among the different tranche holders; a holder of a
given tranche is entitled to receive payments of principal and interest only if the issuer
generates sufficient cash flows to satisfy payments on more senior tranches. In such
transactions, holders of each tranche shall apply the classification requirements for
contractually linked instruments rather than those for non-recourse financial assets. One of
the conditions for a contractually linked instrument to meet the SPPI contractual cash flow
characteristics is that its underlying pool must contain one or more instruments whose
contractual cash flows represent solely payments of principal and interest. The
aforementioned underlying assets may include financial instruments that are not subject to
the classification requirements of Accounting Standards for Business Enterprises No. 22 —
Recognition and Measurement of Financial Instruments, but whose contractual cash flows
Bengang Steel Plates Co., Ltd. Interim Report 2026
are equivalent to solely payments of principal and interest on the principal amount
outstanding (e.g., certain lease receivables).
Upon initial implementation, an enterprise shall apply retrospective adjustment, recognizing
the cumulative effect as an adjustment to retained earnings and other related financial
statement line items as of January 1, 2026, without restating comparative financial
statements for prior periods. The adoption of this Interpretation had no significant impact
on the Company.
B. Accounting Treatment and Related Disclosures When a Currency Lacks Exchangeability
Interpretation No. 20 stipulates that a currency is exchangeable into another currency if an
enterprise is able to exchange that currency into the other currency within a specified
timeframe through a market or exchange mechanism that creates enforceable rights and
obligations in the exchange transaction. An enterprise shall assess whether a currency is
exchangeable into another currency on the measurement date for a specific purpose. If the
enterprise is able to obtain no more than an insignificant amount of the other currency on
the measurement date for the specific purpose, the currency is not exchangeable into the
other currency. Even if the other currency can be exchanged back into that currency, the
enterprise may still determine that the currency is not exchangeable into the other currency.
When a currency is not exchangeable into another currency (lacks exchangeability), the
enterprise shall estimate the spot exchange rate at the measurement date so that it faithfully
reflects the rate at which an orderly exchange transaction would take place at the
measurement date between market participants under prevailing economic conditions.
Upon initial application, an enterprise is not required to restate comparative financial
statements for prior periods and shall apply the following transition provisions:
(i) When an enterprise reports foreign currency transactions in its functional currency and
determines that the relevant foreign currency lacks exchangeability into its functional
currency, it shall translate affected foreign currency monetary items and non-monetary
items measured at fair value in a foreign currency using the estimated spot exchange rate as
at the date of initial application. The effect of initially applying this Interpretation shall be
adjusted against opening retained earnings. The adoption of this Interpretation had no
significant impact on the Company.
(ii) When the presentation currency used by an enterprise is different from its functional
currency, or when an enterprise translates the financial position and operating results of a
foreign operation, and it is determined that the enterprise's functional currency or the
foreign operation's functional currency lacks exchangeability into the presentation currency,
the enterprise shall translate the affected assets and liabilities using the estimated spot
exchange rate as at the date of initial application; if the functional currency is the currency
of a hyperinflationary economy, the affected equity items shall also be translated using the
Bengang Steel Plates Co., Ltd. Interim Report 2026
estimated spot exchange rate as at the date of initial application. The effect of initially
applying this Interpretation shall be recognized as an adjustment to the cumulative amount
of exchange differences on translation of financial statements (recognized as a separate
component of equity). The adoption of this Interpretation had no significant impact on the
Company.
(3) Implementation of Accounting Standards for Business Enterprises No. 25 —
Insurance Contracts (Revised in 2020)
On December 24, 2020, the Ministry of Finance issued the revised Accounting Standards
for Business Enterprises No. 25 — Insurance Contracts (Cai Kuai [2020] No. 20,
hereinafter referred to as the "New Insurance Contracts Standard"). Enterprises dually listed
domestically and overseas, as well as enterprises listed overseas that prepare financial
statements in accordance with International Financial Reporting Standards (IFRS) or
Accounting Standards for Business Enterprises, have been required to adopt this standard
since January 1, 2023; other enterprises applying Accounting Standards for Business
Enterprises shall adopt it starting from January 1, 2026.
The New Insurance Contracts Standard stipulates that if the accounting treatment of
insurance contracts prior to the date of initial application is inconsistent with the provisions
of this standard, an enterprise shall apply the full retrospective approach. If applying the full
retrospective approach to a group of insurance contracts is impracticable, the enterprise
shall apply the modified retrospective approach or the fair value approach; if applying the
modified retrospective approach to a group of insurance contracts is also impracticable, the
enterprise shall apply the fair value approach. Where an enterprise applies retrospective
adjustment, it is not required to disclose the adjustment amounts for affected financial
statement line items and earnings per share for the current period and each prior period
presented.
The Company has adopted the New Insurance Contracts Standard since January 1, 2026.
The adoption of this standard had no significant impact on the Company's financial position
and operating results.
There is no significant changes in accounting estimates during the reporting period.
(1) Major type of taxes and corresponding tax rates
Tax Taxation Method Tax Rate
The balance of output VAT calculated
based on product sales and taxable
Value-added Tax (VAT) 6%, 9%, 13%
services revenue in accordance with the
tax laws after subtracting the deductible
Bengang Steel Plates Co., Ltd. Interim Report 2026
input VAT of the period
Based on VAT and business tax actually
City maintenance and construction tax 5%, 7%
paid
See the table below
Enterprise income tax Based on taxable income
for details
Notes to taxpayers with different corporate income tax rates:
Name of the taxpayers Income tax rate (%)
Bengang Steel Plates Co., Ltd 15
Shanghai Bengang Metallurgy Science and Technology Co., Ltd. 25
Benxi Bengang Steel Sales Co., Ltd. 25
Bengang Posco Cold-rolled Sheet Co., Ltd. 15
Tianjin Bengang Steel & Iron Trading Co., Ltd. 25
Green Gold (Benxi) Renewable Resources Co., Ltd. 25
Yantai Bengang Steel & Iron Sales Co., Ltd. 25
Guangzhou Bengang Steel & Iron Trading Co., Ltd. 25
Dalian Benruitong Automobile Material Technology Co., Ltd. 25
Shenyang Bengang Metallurgical Science and Technology Co., Ltd. 25
North Hengda Logistics Co., Ltd 25
(2) Tax Preference
GR202421001555; valid from November 27, 2024 to November 27, 2027. The company
pays corporate income tax at a reduced rate of 15%.
the High-tech Enterprise Certificate, certificate number: GR202321001624; valid from
December 20, 2023 to December 20, 2026. Benxi Steel Posco Cold-Rolled Sheet Co., Ltd.
pays corporate income tax at a reduced tax rate of 15%.
issued the "Announcement on Improving the Value-Added Tax Policy for Comprehensive
Utilization of Resources" (Announcement No. 40 of the Ministry of Finance and the State
Administration of Taxation in 2021). The announcement will take effect on March 1, 2022.
The original "Notice of the Ministry of Finance and the State Administration of Taxation on
Issuing the "Catalogue of Value-Added Tax Preferential Policies for Comprehensive
Utilization of Resources Products and Services" (Finance and Taxation [2015] No. 78) will
be abolished at the same time except for "technical standards and related conditions". The
electricity and heat produced and sold by the Energy Development Branch of Benxi Iron
and Steel Co., Ltd., a branch of the Company, are items listed in the "Catalogue of
Bengang Steel Plates Co., Ltd. Interim Report 2026
Value-Added Tax Preferential Terms for Comprehensive Resource Utilization Products and
Services" and enjoy the value-added tax refund policy.
issued the "Announcement on Improving the Value-Added Tax Policy for Comprehensive
Utilization of Resources" (Announcement No. 40 of the Ministry of Finance and the State
Administration of Taxation in 2021). The announcement will take effect on March 1, 2022.
The original "Notice of the Ministry of Finance and the State Administration of Taxation on
Issuing the "Catalogue of Value-Added Tax Preferential Policies for Comprehensive
Utilization of Resources Products and Services" (Finance and Taxation [2015] No. 78) will
be abolished at the same time except for "technical standards and related conditions". Scrap
steel sold by the Company's subsidiary, Green Gold (Benxi) Renewable Resources Co.,
Ltd., is listed in the Catalogue of Value-Added Tax Preferential Rates on Products and
Labour Services Involving Comprehensive Utilisation of Goods and Resources, and is
entitled to the value-added tax (VAT) refund-upon-collection policy.
issued the "Announcement on the VAT Surcharge Deduction Policy for Advanced
Manufacturing Enterprises" (Announcement No. 43 of the Ministry of Finance and the
State Administration of Taxation in 2023). From January 1, 2023 to December 31, 2027,
the announcement allows advanced manufacturing enterprises to deduct the payable VAT
by adding 5% to the current deductible input tax. Benxi Posco Cold Rolled Sheet Co., Ltd.,
a subsidiary of our company, belongs to the advanced manufacturing industry and enjoys
the VAT surplus deduction policy.
Bengang Steel Plates Co., Ltd. Interim Report 2026
(1) Cash at bank and on hand
Items 2026/06/30 2025/12/31
Cash on hand
Digital Currency
Cash at bank 780,123,506.77 92,723,863.54
Other monetary funds 840,931,894.73 839,920,368.84
Funds placed in a finance company account 180,060,156.04 194,746,442.77
Total 1,801,115,557.54 1,127,390,675.15
Including：Total amount deposited abroad
Funds deposited overseas with
restrictions on repatriation
Notes: As at 30 June 2026, bank acceptance deposit of RMB 840,931,894.73 was not recognized as cash and cash
equivalents in the cash flow statement.
(2) Notes receivable
Items 2026/06/30 2025/12/31
Bank acceptance bill 251,214,825.03 236,004,720.54
Commercial acceptance bill 638,915.35 163,755,056.29
Total 251,853,740.38 399,759,776.83
Bengang Steel Plates Co., Ltd. Interim Report 2026
Provision for bad
Carrying amount Provision for bad debts Carrying amount
Items debts
Book value Book value
Bad debts Percentage Bad debts
Amount Percentage (%) Amount Amount Amount
ratio (%) (%) ratio (%)
Provision for bad
debts individually
Provision for bad
debts based on
portfolio of credit
risk characteristics
Total 251,853,740.38 100.00 251,853,740.38 399,759,776.83 100.00 399,759,776.83
Bengang Steel Plates Co., Ltd. Interim Report 2026
Provision for bad debts based on portfolio of credit risk characteristics
Portfolio items:
Items
Notes receivable Provision for bad debts Bad debts ratio (%)
Bank acceptance bill 237,996,781.65
Commercial acceptance bill 13,856,958.73
Total 251,853,740.38
Items Notes receivable pledged at the end of period
Bank acceptance bill 3,000,000.00
Commercial acceptance bill
Total 3,000,000.00
year-end
Amount terminated at the Amount was not terminated
Items
end of the period at the end of the period
Bank acceptance bill 2,687,140,545.57 107,070,828.39
Commercial acceptance bill 409,848,743.59
Total 3,096,989,289.16 107,070,828.39
(3) Accounts receivable
Items 2026/06/30 2025/12/31
Within 1 year (inclusive) 1,237,771,236.07 1,149,629,532.02
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items 2026/06/30 2025/12/31
over 5 years 85,595,623.69 88,417,222.29
Subtotal 1,424,254,666.08 1,311,942,556.37
Less: Provision for bad debts 139,280,081.57 133,162,099.60
Total 1,284,974,584.51 1,178,780,456.77
Bengang Steel Plates Co., Ltd. Interim Report 2026
Gross carrying amount Provision for bad debts Gross carrying amount Provision for bad debts
Bad
Items
Percentage debts Book value Percentage Percentage Book value
Amount Amount Amount Amount
(%) ratio (%) (%)
(%)
Tested for
impairment 48,196,244.68 3.38 48,196,244.68 100.00 48,196,244.68 3.67 48,196,244.68 100.00
individually
Tested for
impairment 1,376,058,421.40 96.62 91,083,836.89 6.62 1,284,974,584.51 1,263,746,311.69 96.33 84,965,854.92 6.72 1,178,780,456.77
by portfolio
Including:
Aging 1,376,058,421.40 96.62 91,083,836.89 6.62 1,284,974,584.51 1,263,746,311.69 96.33 84,965,854.92 6.72 1,178,780,456.77
portfolio
Total 1,424,254,666.08 100.00 139,280,081.57 9.78 1,284,974,584.51 1,311,942,556.37 100.00 133,162,099.60 10.15 1,178,780,456.77
Bengang Steel Plates Co., Ltd. Interim Report 2026
Significant accounts receivables tested for impairment individually:
Bad
Company Carrying Provision for debts Carrying Provision for
Reason
amount bad debts
amount bad debts ratio
(%)
Benxi Nanfen Xinhe
Metallurgical Furnace 48,196,244.68 48,196,244.68 100.00 Discontinued 48,196,244.68 48,196,244.68
Material Co., Ltd
Total 48,196,244.68 48,196,244.68 48,196,244.68 48,196,244.68
Provision for bad debts based on portfolio of credit risk characteristics
Provision for bad debts by portfolio: Aging analysis
Items
Account Receivable Provision for bad debts Bad debt ratio（%）
Within 1 year
(inclusive)
over 5 years 37,399,379.01 37,399,379.01 2.72
Total 1,376,058,421.40 91,083,836.89 100.00
Changes during the current period
Items 2025/12/31 Reversed or Write-off or Other 2026/06/30
Accrued
recovered Write-back changes
Provision
for bad 133,162,099.60 9,408,509.78 3,290,527.81 139,280,081.57
debts
Total 133,162,099.60 9,408,509.78 3,290,527.81 139,280,081.57
Bengang Steel Plates Co., Ltd. Interim Report 2026
Item Write-off amount
Actual write-off of accounts receivable 3,290,527.81
Accounts Contract
Percentag Provision for
Company receivable as at assets at Total
e (%) bad debts
Angang Group
International
Economic & 849,139,404.55 849,139,404.55 59.62 8,491,394.05
Trade Co., Ltd.,
Benxi Branch
China
Construction
Sixth Engineering
Bureau Co., Ltd.
Taicang CIMC
Container
Manufacture Co.,
Ltd.
Liaoning
Northern Coal
Chemical (Group)
Co., Ltd.
Benxi Nanfen
Xinhe
Metallurgical 48,196,244.68 48,196,244.68 3.38 48,196,244.68
Refractories Co.,
Ltd.
Total 1,069,526,270.19 1,069,526,270.19 75.09 74,084,735.86
Bengang Steel Plates Co., Ltd. Interim Report 2026
(4) Accounts receivable financing
Items 2026/06/30 2025/12/31
Notes Receivable 256,934,534.14 331,321,177.27
Total 256,934,534.14 331,321,177.27
Item Pledged amount as at the period-end
Notes Receivable 124,228,068.50
Total 124,228,068.50
(5) Prepayments
Aging Percentage Percentage
Amount Amount
(%) (%)
Within 1 year
(inclusive)
Over 3 years 3,738,170.25 0.83 56,220.18 0.02
Total 452,416,738.31 100.00 314,825,894.06 100.00
Notes: There were no outstanding prepayments over 1 year.
Name of the company 2026/06/30 Percentage (%)
Shanxi Coking Coal Group Coal & Coke Sales Co.,
Ltd.
Shenyang Railway Logistics Center, China Railway 70,579,051.25 15.60
Bengang Steel Plates Co., Ltd. Interim Report 2026
Name of the company 2026/06/30 Percentage (%)
Shenyang Group Co., Ltd.
Angang Group International Economic & Trading
Co., Ltd.
Shanxi Coking Coal Group Co., Ltd. 47,441,001.20 10.49
Angang Group International Economic & Trade Co.,
Ltd., Benxi Branch
Total 283,340,058.53 62.63
(6) Other receivables
Items 2026/06/30 2025/12/31
Interest receivables
Dividend receivables
Other receivables 1,178,776.75 4,034,061.03
Total 1,178,776.75 4,034,061.03
(1) Other receivables disclosed by aging
Items 2026/06/30 2025/12/31
Within 1 year (inclusive) 856,734.33 1,219,878.37
over 5 years 49,149,280.91 52,360,468.13
Subtotal 62,345,547.93 75,230,808.92
Less: Provision for bad debts 61,166,771.18 71,196,747.89
Total 1,178,776.75 4,034,061.03
Bengang Steel Plates Co., Ltd. Interim Report 2026
(2) Disclosed by bad debt accrual method
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Items
Percentage Bad debts Book value Percentage Bad debts Book value
Amount Amount Amount Amount
(%) ratio (%) (%) ratio (%)
Provision for bad
debts individually
Provision for bad
debts based on 44,153,230.93 70.82 42,974,454.18 97.33 1,178,776.75 57,038,491.92 75.82 53,004,430.89 92.93 4,034,061.03
portfolio
Include: Aging
portfolio
Risk-free
portfolio
Total 62,345,547.93 100.00 61,166,771.18 98.11 1,178,776.75 75,230,808.92 100.00 71,196,747.89 94.64 4,034,061.03
Bengang Steel Plates Co., Ltd. Interim Report 2026
Significant other receivables tested for impairment individually:
Bad
Company Carrying Provision for debts Carrying Provision for
Reason
amount bad debts ratio amount bad debts
(%)
Benxi Iron
and Steel
(Group) No.
Architectural
Engineering
Co., Ltd.
Total 12,504,978.59 12,504,978.59 12,504,978.59 12,504,978.59
Provision for bad debt by portfolio of credit risk characteristics:
Portfolio accrual item: Aging portfolio
Items
Amount Provision for bad debts Percentage（%）
Within 1 year
(inclusive)
Over 5 years 33,356,088.10 33,356,088.10 76.09
Total 43,837,277.38 42,974,454.18 100.00
(3) Provision for Bad Debts
Stage one Stage two Stage three
Provision for bad debts Total
Bengang Steel Plates Co., Ltd. Interim Report 2026
Lifetime expected Lifetime expected
Expected Credit
credit losses (credit credit losses (credit
Losses for the Next 12
impairment has not impairment has
Months
occurred) already occurred)
Beginning balance 9,286.60 540,789.59 70,646,671.70 71,196,747.89
Beginning balance during
-9,262.73 -278,255.83 287,518.56
current period
--Transfer to the second stage -9,262.73 9,262.73
--Transfer to the third stage -287,518.56 287,518.56
--Write-back to the second
stage
--Write-back to the first stage
Accruals for the current
period
Reversal during the current
period
Write-back of the current
period
Write-off during the current
-10,124,205.29 -10,124,205.29
period
Other changes
Ending balance 11,213.33 30,279.22 61,125,278.63 61,166,771.18
(4) Details of Bad Debt Provisions Accrued, Reversed, or Recovered During the Current
Period
Changes during the current period
Reversal
Items 2025/12/31 Write-back or 2026/06/30
Accrual or Others
write-off
recovered
Bad debt
provision
for other 71,196,747.89 94,228.58 10,124,205.29 61,166,771.18
receivables
Total 71,196,747.89 94,228.58 10,124,205.29 61,166,771.18
Bengang Steel Plates Co., Ltd. Interim Report 2026
(5) Details of Other Receivables Actually Written Off During the Current Period
Item Write-off amount
Actual write-off of other accounts receivable 10,124,205.29
(6) Other receivables disclosed by nature
Nature 2026/06/30 2025/12/31
Current Account 59,711,310.42 71,623,926.65
Others 2,634,237.51 3,606,882.27
Total 62,345,547.93 75,230,808.92
(7) Top five other receivables at the end of the period
Percentage
Provision for
Nature or of total other
Company Amount Aging bad debts at
content receivables
(%)
Benxi Iron and
Steel (Group)
No. 3 Current over 5
Architectural Account years
Engineering
Co., Ltd.
Benxi Iron &
Steel (Group)
No. 1 Current
Construction Account
Engineering
Co., Ltd.
Liaoning
Huawei Coal Current 2-3 years,
Preparation Co., Account 3-4 years
Ltd.
Benxi Ganglian Current
Slag Co., Ltd. Account
years
Sandvik
International
Current Over 5
Trading 331,704.79 0.53 331,704.79
Account years
(Shanghai) Co.,
Ltd.
Total 20,262,310.69 32.50 20,262,310.69
Bengang Steel Plates Co., Ltd. Interim Report 2026
(7) Inventories
Inventory
Inventory
impairment/
Items impairment/Impairment
Gross carrying amount Book value Gross carrying amount Impairment of Book value
of contract fulfillment
contract
costs
fulfillment costs
Raw material 3,192,817,502.91 256,207,419.31 2,936,610,083.60 3,171,263,464.65 256,207,419.31 2,915,056,045.34
Work in progress 2,255,821,458.21 50,094,355.14 2,205,727,103.07 2,473,710,024.54 64,533,859.33 2,409,176,165.21
Finished goods 954,152,630.90 24,980,139.07 929,172,491.83 1,074,768,310.11 29,805,634.54 1,044,962,675.57
Total 6,402,791,592.02 331,281,913.52 6,071,509,678.50 6,719,741,799.30 350,546,913.18 6,369,194,886.12
Increase Decrease
Category 2025/12/31 2026/06/30
Provision Others Write-back or write-off Others
Raw material 256,207,419.31 256,207,419.31
Work in progress 64,533,859.33 14,439,504.19 50,094,355.14
Bengang Steel Plates Co., Ltd. Interim Report 2026
Increase Decrease
Category 2025/12/31 2026/06/30
Provision Others Write-back or write-off Others
Finished goods 29,805,634.54 14,435,000.34 19,260,495.81 24,980,139.07
Total 350,546,913.18 14,435,000.34 33,700,000.00 331,281,913.52
Bengang Steel Plates Co., Ltd. Interim Report 2026
(8) Other current assets
Items 2026/06/30 2025/12/31
VAT input tax 312,457,057.74 431,454,249.59
Others 11,113,647.88 18,817,113.34
Total 323,570,705.62 450,271,362.93
Bengang Steel Plates Co., Ltd. Interim Report 2026
(9) Long-term equity investment
Increase/decrease
Income or
Impairment loss on Impairment
provision Addition investment Other Provision provision
Investees (Book n of Comprehensive of Cash (Book
as of of recognized Equity of Others as of
value) Investme Income Dividends value)
nt Adjustment or Profit
equity
method
Subtotal
Enterprise
Shenyang
Xiangyu New
Material 43,269,884.04 43,269,884.04
Technology Co.,
Ltd.
Subtotal
Bengang Steel Plates Co., Ltd. Interim Report 2026
Increase/decrease
Income or
Impairment loss on Impairment
provision Addition investment Other Provision provision
Investees (Book n of Comprehensive of Cash (Book
as of of recognized Equity of Others as of
value) Investme Income Dividends value)
nt Adjustment or Profit
equity
method
Total
Bengang Steel Plates Co., Ltd. Interim Report 2026
(10) Other equity instrument investment
Changes in fair value for
the current period
Chang Disp Accumulated
Amount
Accumulated es osal gains or losses
of change Accumulated gains
gains or losses related duri reclassified
related to or losses recognized
recognized in to ng Other from other
the Su in other Reasons for
Items 2025/12/31 other Additions invest the chang 2026/06/30 comprehensive
investmen bt comprehensive Designation
comprehensive ments curr es income to
t ot income as at
income as at held at ent retained
derecogni al 2026/06/30
zed in the
end of od current period
current
the
period
period
Suzhou
Non-trading
Longben
Metal
investments
Materials Co.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Changes in fair value for
the current period
Chang Disp Accumulated
Amount
Accumulated es osal gains or losses
of change Accumulated gains
gains or losses related duri reclassified
related to or losses recognized
recognized in to ng Other from other
the Su in other Reasons for
Items 2025/12/31 other Additions invest the chang 2026/06/30 comprehensive
investmen bt comprehensive Designation
comprehensive ments curr es income to
t ot income as at
income as at held at ent retained
derecogni al 2026/06/30
zed in the
end of od current period
current
the
period
period
Ltd.
Northeast 886,445,587.90 -151,290,261.10 886,445,587.90 -151,290,261.10 Non-trading
Special Steel equity
Group Co., investments
Ltd.
Sinosteel -14,414,693.00 -14,414,693.00 Non-trading
Shanghai equity
Bengang Steel Plates Co., Ltd. Interim Report 2026
Changes in fair value for
the current period
Chang Disp Accumulated
Amount
Accumulated es osal gains or losses
of change Accumulated gains
gains or losses related duri reclassified
related to or losses recognized
recognized in to ng Other from other
the Su in other Reasons for
Items 2025/12/31 other Additions invest the chang 2026/06/30 comprehensive
investmen bt comprehensive Designation
comprehensive ments curr es income to
t ot income as at
income as at held at ent retained
derecogni al 2026/06/30
zed in the
end of od current period
current
the
period
period
Steel investments
Processing
Co., Ltd.
Total 890,420,831.77 -165,618,690.23 890,420,831.77 -165,618,690.23
Bengang Steel Plates Co., Ltd. Interim Report 2026
(11) Fixed assets
Items 2026/06/30 2025/12/31
Fixed assets 28,503,203,951.19 28,412,673,622.89
Disposal of fixed assets
Total 28,503,203,951.19 28,412,673,622.89
Bengang Steel Plates Co., Ltd. Interim Report 2026
Transportation
Items Buildings Machinery Office equipment Total
equipment
（1）31 December 2025 14,512,000,962.46 55,728,042,419.61 389,671,361.06 254,240,292.88 70,883,955,036.01
（2）Increase in current period 154,466,293.69 856,780,148.08 3,509,159.07 5,049,374.91 1,019,804,975.75
—Including: Purchase 1,210,256.64 1,210,256.64
—Transferred from
construction in progress
—Increase in Business
Combinations
—Others
（3）Decrease in current period 23,127,786.85 163,774,873.42 498,269.32 27,000.85 187,427,930.44
—Including: Disposal or
scrapped
（4）30 June 2026 14,643,339,469.30 56,421,047,694.27 392,682,250.81 259,262,666.94 71,716,332,081.32
（1）31 December 2025 7,007,049,986.34 34,850,043,391.39 317,740,105.30 172,303,686.37 42,347,137,169.40
（2）Increase in current period 127,289,600.86 754,075,765.14 5,680,072.99 18,302,525.36 905,347,964.35
Bengang Steel Plates Co., Ltd. Interim Report 2026
Transportation
Items Buildings Machinery Office equipment Total
equipment
—Including: Provision 127,289,600.86 754,075,765.14 5,680,072.99 18,302,525.36 905,347,964.35
（3）Decrease in current period 19,909,460.83 142,892,888.97 451,164.05 26,190.82 163,279,704.67
—Including: Disposal or
scrapped
（4）30 June 2026 7,114,430,126.37 35,461,226,267.56 322,969,014.24 190,580,020.91 43,089,205,429.08
（1）31 December 2025 82,416,017.35 41,728,226.37 124,144,243.72
（2）Increase in current period
—Including: Provision
（3）Decrease in current period 221,542.67 221,542.67
—Including: Disposal or
scrapped
（4）30 June 2026 82,416,017.35 41,506,683.70 123,922,701.05
（1）30 June 2026 7,446,493,325.58 20,918,314,743.01 69,713,236.57 68,682,646.03 28,503,203,951.19
（2）31 December 2025 7,422,534,958.77 20,836,270,801.85 71,931,255.76 81,936,606.51 28,412,673,622.89
Bengang Steel Plates Co., Ltd. Interim Report 2026
Gross carrying Accumulated
Items Impairment Book value Note
amount depreciation
Buildings 112,715,295.87 68,447,346.38 41,943,853.74 2,324,095.75
Machinery 3,081,592.21 2,444,779.24 74,824.18 561,988.79
Transportation
equipment
Others 110,671.80 109,829.55 842.25
Total 115,966,212.66 71,058,848.37 42,019,520.17 2,887,844.12
Items Book value
Buildings 66,447,740.91
Machinery 51,788.34
Items Book value Reason
Buildings 2,523,010,854.83 In process
(12) Construction in progress
Total Total
Items Gross carrying Gross carrying
impair Book value impairm Book value
amount amount
ment ent
Construction in progress 2,621,834,772.76 2,621,834,772.76 3,074,712,066.38 3,074,712,066.38
Project materials
Total 2,621,834,772.76 2,621,834,772.76 3,074,712,066.38 3,074,712,066.38
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Gross Gross
Total Total
carrying Book value carrying Book value
impairment impairment
amount amount
Cold Rolling
Transformation 495,286,633.88 495,286,633.88 483,026,894.14 483,026,894.14
Project
Environmental
Protection
Renovation of 163,941,520.69 163,941,520.69 158,152,797.73 158,152,797.73
Plate Raw
Material Plant
Environmental
Upgrade of the
No. 2 Sintering
Stockyard at the 159,652,504.28 159,652,504.28 156,323,959.75 156,323,959.75
Sheet Metal
Ironmaking
Plant
Renovation of
the dust removal
system in the
No. 6 blast 97,577,974.12 97,577,974.12 96,061,655.94 96,061,655.94
furnace area of
the Iron and
Steel Plant
Special Steel
Electric Furnace
Capacity 89,650,279.86 89,650,279.86 86,939,629.39 86,939,629.39
Replacement
Project
Grid Upgrade
Project
Supporting the
Bancai
Nengguan
Centre
Supercritical
Power
Generation
Project
Bengang Plate
intelligent 87,514,048.78 87,514,048.78 85,050,424.38 85,050,424.38
factory Project
Steam Drum to
Electric Drum
Conversion
Project of the 85,408,927.97 85,408,927.97 118,526,373.67 118,526,373.67
Plate Energy
Management
Centre
Desulphurization
Waste Liquor
Acid Making
Project in Plates
Iron Making
Plant
Retrofit of the
Dust Removal
System in the 69,780,633.95 69,780,633.95 68,847,544.63 68,847,544.63
New No.1 Blast
Furnace Area at
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Gross Gross
Total Total
carrying Book value carrying Book value
impairment impairment
amount amount
the Ironmaking
General Works
Hazard
Rectification of
Taizi River
Railway Bridge 57,703,408.27 57,703,408.27 51,796,370.22 51,796,370.22
at Railway
Transportation
Company
Construction
materials
Others 1,143,798,528.78 1,143,798,528.78 1,544,997,371.03 1,544,997,371.03
Total 2,621,834,772.76 2,621,834,772.76 3,074,712,066.38 3,074,712,066.38
Bengang Steel Plates Co., Ltd. Interim Report 2026
Project
cumulative
Including：
Other investment Interest
Increase Transferred to Accumulated Interest
decrease accounted Project capitalization
during fixed asset amount of capitalization Sources of
Items Budget 2025/12/31 during 2026/06/30 for the progress rate in
current during current interest amount in funds
current proportion (%) current
period period capitalization current
period of the period (%)
period
budget
(%)
Cold Rolling Loan from
Transformation 843,640,000.00 483,026,894.14 12,259,739.74 495,286,633.88 97.1 97.1 52,224,686.79 financial
Project institute
Environmental
Protection
Own Funds
Renovation of 1,286,370,000.00 158,152,797.73 5,788,722.96 163,941,520.69 37.11 37.11 36,764,770.52
and Loans
Plate Raw
Material Plant
Environmental
Protection
Retrofit of the
Second Sintering Own Funds
Stockyard at the and Loans
Plate
Ironmaking
General Works
Renovation of
the dust removal
system in the
Own Funds
No. 6 blast 99,970,000.00 96,061,655.94 1,516,318.18 97,577,974.12 97.61 97.61 2,922,501.88 1,516,318.18 3.43
and Loans
furnace area of
the Iron and
Steel Plant
Special Steel
Electric Furnace
Capacity 1,732,481,000.00 86,939,629.39 2,710,650.47 89,650,279.86 89.73 89.73 52,044,899.29 Own Funds
Replacement
Project
Bengang Steel Plates Co., Ltd. Interim Report 2026
Project
cumulative
Including：
Other investment Interest
Increase Transferred to Accumulated Interest
decrease accounted Project capitalization
during fixed asset amount of capitalization Sources of
Items Budget 2025/12/31 during 2026/06/30 for the progress rate in
current during current interest amount in funds
current proportion (%) current
period period capitalization current
period of the period (%)
period
budget
(%)
Power Grid
Upgrade for the
Plate Energy Own Funds
Centre and Loans
Supercritical
Power Project
Bengang Plate
Own Funds
intelligent 93,000,000.00 85,050,424.38 2,463,624.40 87,514,048.78 94.1 94.1 3,727,996.79 1,270,824.41 3.43
and Loans
factory Project
Steam Drum to
Electric Drum
Conversion
Own Funds
Project of the 187,900,000.00 118,526,373.67 2,125,765.42 35,243,211.12 85,408,927.97 64.21 64.21 6,071,287.62 2,125,765.42 3.43
and Loans
Plate Energy
Management
Centre
Desulphurization
Waste Liquor
Acid Making
Project in Plates
Iron Making
Plant
Retrofit of the
Dust Removal
System in the
Own Funds
New No.1 Blast 71,850,000.00 68,847,544.63 933,089.32 69,780,633.95 97.12 97.12 1,908,292.71 972,527.32 3.43
and Loans
Furnace Area at
the Ironmaking
General Works
Total 1,477,918,325.13 61,765,171.60 119,350,661.02 1,420,332,835.71 165,582,802.05 10,477,919.21
Bengang Steel Plates Co., Ltd. Interim Report 2026
Bengang Steel Plates Co., Ltd. Interim Report 2026
(13) Right of use assets
Items Land Buildings Machinery Total
amount
(1) 31 December
(2) Increase in current
period
— Addition 327,506,878.59 327,506,878.59
— Increase due
to business
combinations
— Others
(3) Decrease in
current period
— Transfer to
Fixed Assets
— Disposal
— Others
(4) 30 June 2026 1,132,274,415.17 368,465,367.56 1,786,885,441.70 3,287,625,224.43
depreciation
(1) 31 December
(2) Increase in current
period
—Provision 10,235,149.14 41,121,534.96 19,952,118.12 71,308,802.22
(3) Decrease in
current period
— Transfer to
Fixed Assets
— Disposal
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Land Buildings Machinery Total
(4) 30 June 2026 209,756,330.30 143,473,026.20 71,042,397.66 424,271,754.16
(1) 31 December
(2) Increase in current
period
—Provision
(3) Decrease in
current period
— Transfer to
Fixed Assets
— Disposal
(4) 30 June 2026
value
(1) 30 June 2026 922,518,084.87 224,992,341.36 1,715,843,044.04 2,863,353,470.27
(2) 31 December
(14) Intangible assets
Items Software Land use right Total
（1）31 December 2025 4,439,653.03 489,429,922.52 493,869,575.55
（2）Increase 6,699,940.00 6,699,940.00
—Purchase 6,699,940.00 6,699,940.00
—Internal R&D
—Increase due to business
combinations
（3）Decrease
—Disposal
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Software Land use right Total
—The portion that has lapsed and
been derecognized
（4）30 June 2026 11,139,593.03 489,429,922.52 500,569,515.55
（1）31 December 2025 1,850,912.67 108,359,650.11 110,210,562.78
（2）Increase 944,924.79 4,975,852.65 5,920,777.44
—Provision 944,924.79 4,975,852.65 5,920,777.44
（3）Decrease
—Disposal
— Portion that has become invalid
and been derecognized
（4）30 June 2026 2,795,837.46 113,335,502.76 116,131,340.22
（1）31 December 2025
（2）Increase
—Provision
（3）Decrease
—Disposal
— Portion that has become invalid
and been derecognized
（4）30 June 2026
（1）30 June 2026 8,343,755.57 376,094,419.76 384,438,175.33
（2）31 December 2025 2,588,740.36 381,070,272.41 383,659,012.77
Items Book value Reason
Land use right 34,984,913.58 In process
Total 34,984,913.58
(15) Deferred tax asset and deferred tax liability
Bengang Steel Plates Co., Ltd. Interim Report 2026
Deductible Deductible
Items Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Asset impairment
loss
Changes in fair value
of other financial
assets recognized in 165,704,954.07 24,855,743.11 165,704,954.07 24,855,743.11
other comprehensive
income
Tax-Accounting
Differences under 2,665,147,479.60 399,772,121.94 2,587,520,333.13 388,128,049.97
Lease Standards
Total 3,486,433,632.64 523,429,394.91 3,432,205,023.24 515,295,105.71
Taxable Taxable
Items Deferred tax Deferred tax
temporary temporary
liabilities liabilities
differences differences
Changes in fair value
of other financial
assets recognized in 65,857.87 9,878.68 65,857.87 9,878.68
other comprehensive
income
Tax-Accounting
Differences under 2,863,353,470.27 429,503,020.54 2,607,155,393.87 391,073,309.08
Lease Standards
Total 2,863,419,328.14 429,512,899.22 2,607,221,251.74 391,083,187.76
Bengang Steel Plates Co., Ltd. Interim Report 2026
Deferred Income
Offset Amount of Offset Amount of Deferred Income
Tax Asset or
Items Deferred Income Deferred Income Tax Asset or
Liability Balance
Tax Assets and Tax Assets and Liability Balance
(Net of
Liabilities Liabilities (Net of Offsetting)
Offsetting)
Deferred tax
assets
Deferred tax
liabilities
Items 2026/06/30 2025/12/31
Deductible temporary differences 70,268.35 70,268.35
Deductible losses 15,008,200,477.91 13,500,278,662.54
Total 15,008,270,746.26 13,500,348,930.89
period
Year 2026/06/30 2025/12/31 Notes
Year 2025 2,512,631.86
Year 2026 8,117,351.82
Year 2027
Year 2028
Year 2029
Year 2030
Year 2031
Year 2032 1,664,693,068.34 1,911,715,647.99
Year 2033 2,192,634,808.94 2,367,541,315.76
Year 2034 5,125,603,742.69 5,125,613,839.53
Bengang Steel Plates Co., Ltd. Interim Report 2026
Year 2026/06/30 2025/12/31 Notes
Year 2035 4,067,399,112.38 4,084,777,875.58
Year 2036 1,957,869,745.56
Total 15,008,200,477.91 13,500,278,662.54
(16) Other non-current assets
Gross
Items Gross carrying
carrying Impairment Book value Impairment Book value
amount
amount
Prepayment
for
construction 51,426,835.78 51,426,835.78 54,632,516.72 54,632,516.72
and
equipment
Total 51,426,835.78 51,426,835.78 54,632,516.72 54,632,516.72
Bengang Steel Plates Co., Ltd. Interim Report 2026
(17) Assets with restricted ownership or use rights
Items Type of Type of
Carrying amount Book value Status Carrying amount Book value Status
restriction restriction
Margin for Margin for
Margin for Notes Margin for Notes
Notes Notes
Cash at bank and receivable, receivable,
on hand Margin for letter Margin for letter
Margin for letter Margin for letter
of credit of credit
of credit of credit
Notes receivable 3,000,000.00 3,000,000.00 Pledged Pledged 6,182,721.01 6,182,721.01 Pledged Pledged
Accounts
receivable 124,228,068.50 124,228,068.50 Pledged Pledged 120,290,859.64 120,290,859.64
financing
Total 968,159,963.23 968,159,963.23 966,393,949.49 966,393,949.49
Bengang Steel Plates Co., Ltd. Interim Report 2026
(18) Short-term loans
Items 2026/06/30 2025/12/31
Credit loans 4,500,500,000.00 200,000,000.00
Discounted unexpired bills 74,871,374.99 133,660,470.12
Total 4,575,371,374.99 333,660,470.12
(19) Notes payable
Items 2026/06/30 2025/12/31
Bank acceptance bill 11,323,422,620.99 10,925,339,515.71
Commercial acceptance bill 1,053,970,486.17 900,231,371.80
Letter of credit 1,296,446,679.86 1,136,716,755.37
Total 13,673,839,787.02 12,962,287,642.88
Note: The total amount of overdue but unpaid bills payable at the end of this period was RMB
payment application.
(20) Accounts payable
Items 2026/06/30 2025/12/31
Within 1 year (inclusive) 2,655,935,323.74 2,526,036,992.36
Over 3 years 32,273,400.50 15,778,495.57
Total 3,101,065,676.73 2,667,236,412.66
Items 2026/06/30 Reasons
Benxi Iron & Steel (Group) Information Not yet eligible for
Automation Co., Ltd. settlement
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items 2026/06/30 Reasons
Not yet eligible for
Benxi Iron & Steel (Group) Co., Ltd. 19,070,663.16
settlement
Total 44,831,514.58
(21) Prepayments
Items 2026/06/30 2025/12/31
Within 1 year (inclusive) 252,490.93 49,541.35
Over 3 years
Total 252,490.93 49,541.35
(22) Contract liabilities
Items 2026/06/30 2025/12/31
Payment received in advance and labor
costs
Total 2,701,578,357.21 2,736,697,947.25
(23) Employee benefits payable
Items 2025/12/31 Increase Decrease 2026/06/30
Short-term employee
benefits
Post-employment
benefits - defined 124,590,568.16 124,590,568.16
contribution plans
Termination benefits 35,678,608.84 35,678,608.84
Other benefits due
within one year
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items 2025/12/31 Increase Decrease 2026/06/30
Total 2,586,883.29 900,187,079.51 892,470,205.04 10,303,757.76
Items 2025/12/31 Increase Decrease 2026/06/30
(1) Salary, bonus,
allowance and subsidy
(2) Employee welfare 52,197,484.88 52,197,484.88
(3) Social Insurance 60,732,201.10 60,732,201.10
Including: Medical
insurance and maternity 52,620,325.82 52,620,325.82
insurance
Work injury
insurance
Others
(4) Housing fund 65,257,056.60 65,257,056.60
(5) Union funds and staff
education fee
(6) Short-term
compensated absences
(7) Short-term profit -
sharing scheme
(8) Other short-term
benefits
Total 2,586,883.29 739,917,902.51 732,201,028.04 10,303,757.76
Items 2025/12/31 Increase Decrease 2026/06/30
Basic pension fund 100,014,077.94 100,014,077.94
Unemployment insurance 3,127,107.02 3,127,107.02
Annuity 21,449,383.20 21,449,383.20
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items 2025/12/31 Increase Decrease 2026/06/30
Total 124,590,568.16 124,590,568.16
(24) Current tax liabilities
Items 2026/06/30 2025/12/31
Value-added tax 19,270,564.89 10,075,228.91
Resource Tax 1,983,931.52 1,965,703.36
Corporate income tax 7,989,360.98 14,251,204.39
City maintenance and construction tax 1,730,775.46 708,128.46
House property tax 7,544,121.03 6,967,050.05
Land use right tax 1,144,608.49 1,144,608.49
Individual income tax 385,476.32 8,351,507.38
Educational surcharges（including local
Educational surcharges）
Others 12,383,913.36 15,888,049.72
Total 53,717,519.20 59,857,286.81
(25) Other payables
Items 2026/06/30 2025/12/31
Interest payables
Dividends payables 45,054,305.70 45,054,305.70
Other payables 2,506,114,931.70 2,730,489,890.41
Total 2,551,169,237.40 2,775,544,196.11
Items 2026/06/30 2025/12/31
Bengang Group Co., Ltd. 45,054,305.70 45,054,305.70
Total 45,054,305.70 45,054,305.70
Bengang Steel Plates Co., Ltd. Interim Report 2026
(1) Other payables disclosed by nature
Items 2026/06/30 2025/12/31
Current Accounts 2,114,625,828.39 2,344,273,165.96
Deposit 619,292.00 559,292.00
Margin 387,588,777.97 382,448,871.66
Others 3,281,033.34 3,208,560.79
Total 2,506,114,931.70 2,730,489,890.41
(2) Significant other payables aged over one year or overdue
Items 2026/06/30 Reasons
MCC Capital Engineering & Research 30,451,811.79 Settlement period not
Incorporation Limited yet reached
Total 30,451,811.79
(26) Non-current liabilities due within one year
Items 2026/06/30 2025/12/31
Long-term loans due within one year 1,107,725,768.90 927,300,000.00
Including: Pledged loans
Mortgage loan
Guaranteed loan
Credit loan 1,107,725,768.90 927,300,000.00
Bond payables due within one year 5,665,550,635.00
Lease liabilities due within one year 350,078,751.34 348,084,227.49
Total 1,457,804,520.24 6,940,934,862.49
(27) Other current liabilities
Items 2026/06/30 2025/12/31
Output tax to be transferred 290,086,986.58 275,281,765.24
Total 290,086,986.58 275,281,765.24
Bengang Steel Plates Co., Ltd. Interim Report 2026
(28) Long-term loans
Items 2026/06/30 2025/12/31
Pledged loans
Mortgage loans
Guaranteed loans
Credit loans 10,335,711,376.76 6,941,769,758.11
Subtotal 10,335,711,376.76 6,941,769,758.11
Less: Non-current liabilities due within
one year
Total 9,227,985,607.86 6,014,469,758.11
Notes: The interest rate of long-term loans is 2.39%-3.67%.
(29) Bonds payable
Bengang Steel Plates Co., Ltd. Interim Report 2026
Share
conversi
Balance at the end Premium and Balance at the end
Coupo Issue Bond Current Interest accrued Repayment in on and Default
Items Face value Issuance amount of the previous discount of the current
n rate date duration issue at face value this period repurcha or not
year amortization period
se this
year
Bengang
Convertible 511,100.0
Bond (Bond 0
code:127018)
Less: amount
due within one 5,665,550,635.00 140,776,302.50 106,286,722.17 5,912,102,559.67 No
year
Total 6,800,000,000.00
Bengang Steel Plates Co., Ltd. Interim Report 2026
Approved by Shenzhen Stock Exchange "Shen Zheng Shang [2020] No. 656", the Company’s RMB 6.80 billion convertible corporate bonds were listed on
the Shenzhen Stock Exchange on August 4, 2020, and the abbreviation is "Bengang Convertible Bonds". The bond code is "127018". The conversion period
of the convertible corporate bonds issued this time is from the first trading day after six months of the issuance of the convertible corporate bonds (July 3,
bonds is RMB 5.03 per share. During the period from January 1, 2026, to June 30, 2026, a total of RMB 507,100.00 of the Company’s A-share convertible
bonds were converted into A-share common stock, resulting in the issuance of 153,879.00 shares; additionally, bonds amounting to RMB 4,180.84 were put
back to the Company. Among them:
In the first quarter of 2026, the Bengang convertible bonds were reduced by RMB 14,000.00 (140 bonds) due to the conversion, and the number of shares
converted was 4,247.00 shares, and the conversion price was RMB3.29 per share;
In the second quarter of 2026, the Bengang convertible bonds were reduced by RMB 493,100.00 (4,971 bonds) due to the conversion, and the number of
shares converted was 149,602.00 shares, and the conversion price was RMB3.29 per share. Bengang Convertible Bonds decreased by RMB 4,180.84 (40
notes) due to put-back repurchases at a price of RMB 104.521 per note.
The company's convertible bonds matured on June 28, 2026; redemption was completed on June 29, and the bonds ceased conversion and were delisted from
the Shenzhen Stock Exchange.
Bengang Steel Plates Co., Ltd. Interim Report 2026
(30) Lease liabilities
Items 2026/06/30 2025/12/31
Lease payments 3,406,983,321.77 3,357,181,841.40
Less: Unrealized financing expenses 743,108,324.82 769,661,508.27
Reclassified to non-current liabilities
within one year
Total 2,313,796,245.61 2,239,436,105.64
(31) Deferred income
Items 2025/12/31 Increase Decrease 2026/06/30 Reason
Government
subsidy
Total 158,199,416.58 14,665,500.00 25,300,828.43 147,564,088.15
Bengang Steel Plates Co., Ltd. Interim Report 2026
The details of the government subsidy projects are as follows:
Transfer to Offsetting
Transfer to Other
Related to assets or income 2025/12/31 Increase non-operatin cost or 2026/06/30
other income changes
g income expenses
Related to assets 155,261,857.80 10,100,000.00 22,086,071.22 143,275,786.58
Related to income 2,937,558.78 4,565,500.00 3,214,757.21 4,288,301.57
Total 158,199,416.58 14,665,500.00 25,300,828.43 147,564,088.15
Bengang Steel Plates Co., Ltd. Interim Report 2026
(32) Share capital
Increase/decrease (+ , - )
Issuing Transferred
Items 2025/12/31 Bonus 2026/06/30
of new from Others Subtotal
shares
share reserves
Total
shares
Note: The increase during the current period resulted from the conversion of the Company's
A-share convertible bonds into 153,849.00 A-share common shares; the bonds payable were
fully redeemed on June 29, 2026.
Bengang Steel Plates Co., Ltd. Interim Report 2026
(33) Other equity instruments
Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of the period
Items
Number Book value Number Book value Number Book value Number Book value
Convertible corporate
bonds
Total 56,309,531.00 947,843,680.82 56,309,531.00 947,843,680.82
Notes: The decrease during the current period is attributable to the Company's A-share convertible bonds, which were fully redeemed on June 29, 2026.
Bengang Steel Plates Co., Ltd. Interim Report 2026
(34) Capital reserves
Items 2025/12/31 Increase Decrease 2026/06/30
Capital (share)
premium
Other capital
reserves
Including: Changes
in Other Equity of
the Investee
Others 143,217,468.82 143,217,468.82
Total 13,252,955,837.48 349,341.05 13,253,305,178.53
Notes: The increase in capital premium (share premium) during the current period is
attributable to the conversion of the Company's A-share convertible bonds into A-share
ordinary shares.
Bengang Steel Plates Co., Ltd. Interim Report 2026
(35) Other comprehensive income
Current period
Less: amount
recognized in Income after Income after
Amounts
OCI in the tax tax Less: transfer
Items 2025/12/31 before 2026/06/30
previous period Less: income tax attributable to attributable to to retain
corporate
transfer to PL owners of the non-controllin earnings
income tax
in current Company g interests
period
-129,961,806.05 -129,961,806.05
into profit or loss.
including: Remeasurement of
defined benefit plan changes
Other comprehensive income
that cannot be reclassified to
profit or loss under the equity
method
Changes in fair value of
-129,961,806.05 -129,961,806.05
investments in other equity
Bengang Steel Plates Co., Ltd. Interim Report 2026
Current period
Less: amount
recognized in Income after Income after
Amounts
OCI in the tax tax Less: transfer
Items 2025/12/31 before 2026/06/30
previous period Less: income tax attributable to attributable to to retain
corporate
transfer to PL owners of the non-controllin earnings
income tax
in current Company g interests
period
instruments
Changes in the fair value of the
entity's own credit risk
profit or loss
Total -129,961,806.05 -129,961,806.05
Bengang Steel Plates Co., Ltd. Interim Report 2026
(36) Special Reserves
Items 2025/12/31 Increase Decrease 2026/06/30
Safety production
cost
Total 881,502.23 30,136,206.94 15,006,629.82 16,011,079.35
(37) Surplus Reserves
Items 2025/12/31 Increase Decrease 2026/06/30
Statutory surplus
reserves
Total 1,195,116,522.37 1,195,116,522.37
(38) Undistributed Profits
Items Current period Previous period
Before adjustments: undistributed profits at last
-11,439,289,982.02 -7,497,011,632.90
year-end
Adjustments of the beginning distributed profits
(increase + / decrease -)
After adjustments: undistributed profit at this
-11,439,289,982.02 -7,497,011,632.90
year-beginning
Add: undistributed profit belonging to parent
-1,907,548,241.52 -3,942,278,349.12
company
Less: Statutory surplus reserves
Discretionary reserves
General risk reserves
Common shares dividend payable
Common shares dividend transferred to paid-in
capital
Ending balance of undistributed profits -13,346,838,223.54 -11,439,289,982.02
(39) Operating income and operating cost
Bengang Steel Plates Co., Ltd. Interim Report 2026
Current period Previous period
Items
Revenue Cost Revenue Cost
Principal
business
Other
business
Total 22,335,640,944.40 23,417,107,587.05 24,697,800,421.99 25,441,217,248.92
Bengang Steel Plates Co., Ltd. Interim Report 2026
Current period Current period Total
Item Principal business Other business
Principal business Cost Other business Cost Operating income Operating cost
Revenue Revenue
Classification by the time
of commodity transfer
Including: recognize at a
certain point in time
-Recognize over
a certain period of time
Total 22,089,025,198.72 23,176,105,693.79 246,615,745.68 241,001,893.26 22,335,640,944.40 23,417,107,587.05
Classification by business
area
Including：Domestic 18,251,813,846.06 19,148,363,188.82 246,615,745.68 241,001,893.26 18,498,429,591.74 19,389,365,082.08
Abroad 3,837,211,352.66 4,027,742,504.97 3,837,211,352.66 4,027,742,504.97
Total 22,089,025,198.72 23,176,105,693.79 246,615,745.68 241,001,893.26 22,335,640,944.40 23,417,107,587.05
Bengang Steel Plates Co., Ltd. Interim Report 2026
(40) Tax and surcharges
Items Current period Previous period
Environmental tax 4,233,454.78 7,348,645.97
City maintenance and construction tax 6,083,364.88 3,841,954.40
Educational surcharge 4,058,075.56 2,814,781.46
Resource Tax 4,405,854.90 5,057,602.56
Housing property tax 43,234,492.25 45,022,445.17
Land use right tax 7,108,043.20 7,107,861.82
Vehicle and vessel tax 11,025.84 10,711.44
Stamp duty 24,324,775.14 36,809,947.61
Others 335,681.03 8,373.04
Total 93,794,767.58 108,022,323.47
(41) Selling and distribution expenses
Items Current period Previous period
Sales service fee 9,881,438.94 1,132,435.68
Salary and benefits 27,856,422.67 28,922,500.81
Import and export agency fee 9,985,338.67 21,286,926.75
Others 10,124,051.70 10,122,303.29
Total 57,847,251.98 61,464,166.53
(42) General and administrative expenses
Items Current period Previous period
Salary and benefits 189,617,069.07 193,863,629.66
Insurance fee 7,295,986.60 11,836,395.97
Depreciation 31,211,373.54 31,277,381.76
Repair expense 10,131.10 629,075.86
Professional service expenses 5,282,245.18 4,108,796.48
Information System Service Fee 8,617,040.30 12,135,901.47
Safety Production Fee 14,770,561.25 13,329,362.22
Others 14,189,319.07 18,584,353.01
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Current period Previous period
Total 270,993,726.11 285,764,896.43
(43) Research and development expenses
Items Current period Previous period
Depreciation, materials and
compensation, etc.
Total 31,891,802.98 31,617,334.27
(44) Financial expenses
Items Current period Previous period
Interest expenses 245,361,416.02 207,308,249.73
including: Interest expenses for lease
liabilities
Less: Interest income 28,085,562.37 17,521,734.29
Exchange gains or losses 38,852,209.36 12,771,216.88
Others 6,218,975.93 5,783,222.76
Total 262,347,038.94 208,340,955.08
(45) Other income
Items Current period Previous period
Environmental protection subsidies 17,957,966.67 17,682,300.00
Technology subsidies 3,245,311.76 1,559,037.25
Other subsidies 33,556,093.72 89,770,909.44
Total 54,759,372.15 109,012,246.69
(46) Investment income
Items Current period Previous period
Income on long-term equity investment by equity
method
Gain from debt restructuring 53,299.22 7,215.64
Others -13,097,016.21 -17,639,062.95
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Current period Previous period
Total -13,043,716.99 -17,631,847.31
(47) Credit impairment loss
Items Current period Previous period
Loss from bad debts of account receivable 9,408,509.78 17,800,262.33
Loss from bad debts of other receivables 94,228.58 -8,492,152.37
Total 9,502,738.36 9,308,109.96
(48) Asset impairment loss
Items Current period Previous period
Inventory and contract fulfillment cost
impairment loss
Total 14,435,000.34 -36,671,170.60
(49) Assets disposal gains
The amount recognized in
Items Current period Previous period
non-recurring profit
Fixed assets 3,008.85
Total 3,008.85
(50) Non-operating income
The amount
Items Current period Previous period recognized in
non-recurring profit
Non-current assets scrapped
gains
Compensation for breach of
contract
Unpayable accounts payable 100.02
Bengang Steel Plates Co., Ltd. Interim Report 2026
The amount
Items Current period Previous period recognized in
non-recurring profit
(Debt settlement income)
Others 479,441.70 2,560,778.89 479,441.70
Total 6,082,381.82 9,723,769.21 6,082,381.82
(51) Non-operating expense
The amount
Items Current period Previous period recognized in
non-recurring profit
Non-current assets scrapped
loss
Administrative Fines and Late
Payment Fees
Compensation, liquidated
damages and fines
Others 10,772,522.01 4,210,630.39 10,772,522.01
Total 34,760,019.49 36,523,366.11 34,760,019.49
(52) Income tax expenses
Items Current period Previous period
Income tax payable for the current year 37,776,935.19 19,759,519.10
Deferred income tax 30,295,422.26 216,509.20
Total 68,072,357.45 19,976,028.30
Items Current period
Total profit -1,809,240,951.45
Income tax expense calculated according to the official or applicable tax -268,040,149.29
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Current period
rate
Effect of different tax rates applied by subsidiaries 3,345,993.43
Effect of adjustment of the income tax expense of prior period -2,534,261.94
Effect of non-taxable income
Effect of non-deductible costs, expenses or losses -506,520.94
Effect of use of deductible losses of unrecognized deferred tax asset of
-1,794,136.82
prior period
Effect of deductible temporary differences or deductible losses of
unrecognized deferred tax assets of current period
Others -2,247,551.57
Income tax expenses 68,072,357.45
(53) Notes of statement of cash flows
（1）Cash received related to other operating activities
Items Current period Previous period
Collection of current accounts and advance
payment on behalf
Interest income 29,605,569.10 18,463,234.45
Special subsidy income 13,472,160.98 47,191,156.54
Non-operating income 532,527.04 2,920,912.19
Others 137,471.63 1,097,069.28
Total 69,030,457.30 122,173,179.14
（2）Cash paid related to other operating activities
Items Current period Previous period
Current accounts 51,414,558.72 80,902,412.69
Administrative expenses 79,707,107.06 40,868,520.89
Selling expenses 2,777,907.31 2,753,734.36
Charges 11,488,070.41 18,292,702.08
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Current period Previous period
Others 9,617,045.49 15,925,186.78
Total 155,004,688.99 158,742,556.80
（1）Other cash received in relation to financing activities
Item Current period Previous period
Notes, letter of guarantee, and letter of credit
margins 921,460,041.20 1,815,330,484.81
Recovery of short-term borrowing funds for
designated payments
Total 921,460,041.20 1,815,330,484.81
（2）Other cash paid in relation to financing activities
Item Current period Previous period
Notes, letter of guarantee, and letter of credit
margins 922,806,578.39 1,953,106,850.42
Lease payments 18,415,636.65 3,767,304.90
Financing fees 4,970,658.10 4,977,735.81
Total 946,192,873.14 1,961,851,891.13
(54) Supplementary details of statement of cash flows
Items Current period Previous period
operating activities:
Net profit -1,877,313,308.90 -1,366,655,659.04
Add: Credit impairment loss 9,502,738.36 9,308,109.96
Asset impairment loss 14,435,000.34 -36,671,170.60
Depreciation of fixed assets 905,347,964.35 825,835,405.32
Depletion of oil and gas assets
Depreciation of right of use assets 71,308,802.22 39,442,062.84
Amortization of intangible assets 5,920,777.44 5,572,497.38
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Current period Previous period
Amortization of Long-term Deferred Expenses
Losses proceeds from disposal of PPE, intangible
assets and other long-term assets (Earnings marked -3,008.85
“－”)
Scrapped losses from fixed assets (Earnings marked
“－”)
Losses in fair value changes (Earnings marked “－”)
Financial expenses (Earnings marked “－”) 284,213,625.38 220,079,466.61
Investment losses (Earnings marked “－”) 13,043,716.99 17,631,847.31
Deferred tax assets reduction (Addition marked “－”) -8,134,289.20 6,132,818.62
Deferred tax liabilities increased (Reduction marked
“－”)
Reduction of inventory (Addition marked “－”) 316,950,207.28 319,818,265.50
Operating receivable items reduction (Addition
-89,111,656.52 -551,119,293.48
marked “－”)
Operating payable items increase (Less marked"－") 984,837,107.51 841,266,763.23
Others 15,129,577.12 15,368,052.79
Net cash flows generated from operating activities 706,571,945.53 371,629,764.04
involving cash:
Liabilities transferred to capital
Convertible bonds due within one year
Fixed assets financed by leasing
Ending balance of cash 960,183,662.81 1,118,512,027.55
Less: Beginning balance of cash 287,470,306.31 1,590,205,218.91
Add: Ending balance of cash equivalents
Less: Opening balance of cash equivalents
The net increase in cash and cash equivalents 672,713,356.50 -471,693,191.36
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Current period Previous period
Including: Cash on hand
Bank deposits available on demand 960,183,662.81 287,470,306.31
Other monetary funds available for
immediate payment
Including: Bond investments maturing within three
months
Including: Cash and cash equivalents held but not
available for use by the parent company
or other subsidiaries within the group
(55) Foreign currency monetary items
Ending balance in Ending balance
Item Exchange rate
foreign currency translated to RMB
Cash and cash equivalents 778,908,113.17
Including: USD 114,361,995.21 6.8109 778,908,113.17
Accounts receivable 849,139,404.55
Including: USD 124,673,597.40 6.8109 849,139,404.55
Accounts payable 103,031,832.45
Including: USD 15,127,491.59 6.8109 103,031,832.45
Non-current liabilities due
within one year
Including: JPY 23,176,000.00 0.0421 974,434.92
Long-term loans 487,217.46
Including: JPY 11,588,000.00 0.0421 487,217.46
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Current period Previous period
Depreciation, materials,
salaries, etc.
Professional Service Fee
Total 31,891,802.98 31,617,334.27
Including: Expensed R&D
Expenditure
Capitalized R&D
Expenditures
Increase during Decrease during
the current period the current period
Item 2025/12/31 Internal 2026/06/30
Recognized as
Development
Intangible assets
Expenditure
Sheet
Configuration-based 3,700,000.00 3,700,000.00
CPK Analysis
Total 3,700,000.00 3,700,000.00
Bengang Steel Plates Co., Ltd. Interim Report 2026
(1) Equity in subsidiaries
Shareholding
Principal
Name of Registered Registrat Nature of ratio(%) Acquisition
place of
subsidiary Capital ion place Business Dire Indire method
business
ct ct
Guangzhou
Bengang Steel Guangzh Guangzho
& Iron Trading ou u
Co., Ltd
Shanghai
Bengang
Metallurgy
Science and
Technology
Co., Ltd
Dalian
Benruitong
Automobile Manufacturi
Material ng
Technology
Co., Ltd
Bengang Business
combination
POSCO Manufacturi
Cold-rolled ng
common
Sheet Co., Ltd. control
Green Gold
(Benxi)
Manufacturi
Renewable 60 million Benxi Benxi 51 Establishment
ng
Resources Co.,
Ltd.
Business
Yantai Bengang combination
Steel Sales Co., 200 million Yantai Yantai Sales 100 under
Ltd. common
control
Tianjin Business
combination
Bengang Steel
Trading Co., common
Ltd. control
Benxi Bengang
Steel & Iron 30 million Benxi Benxi Sales 100 Establishment
Sales Co., Ltd.
Shenyang
Bengang
Metallurgy Shenyan
Science and g
Technology
Co., Ltd
North Hengda Business
Manufacturi
Logistics Co., 150 million Benxi Benxi 100 combination
ng
Ltd. under
Bengang Steel Plates Co., Ltd. Interim Report 2026
Shareholding
Principal
Name of Registered Registrat Nature of ratio(%) Acquisition
place of
subsidiary Capital ion place Business Dire Indire method
business
ct ct
common
control
Dividend
Proportion Profits and losses
declared to Ending
of attributing to
distribute to balance of
Name of the subsidiaries non-controlli non-controlling
non-controlling non-controlling
ng interests shareholders
shareholders interests
Bengang POSCO
Cold-rolled Sheet Co.,
Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Name of 2026/06/30 2025/12/31
Non-curr Non-curr
the Non-current Current Non-current Current
Current assets Total assets ent Total liabilities Current assets Total assets ent Total liabilities
assets liabilities assets liabilities
liabilities liabilities
subsidiaries
Bengang
POSCO
Cold-rolled
Sheet Co., 5,132,874,146.35 1,007,639,562.00 6,140,513,708.35 3,580,890,464.04 3,580,890,464.04 5,416,328,740.21 1,023,071,233.78 6,439,399,973.99 3,980,275,177.40 3,980,275,177.40
Ltd.
Current period Previous period
Total Cash flow from Total Cash flow from
Name of the subsidiaries Operating Operating
comprehensive operating comprehensive operating
Net profit Net profit
income activities income activities
income income
Bengang POSCO
Cold-rolled Sheet Co.,
Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
(2) Interests in joint ventures or associated enterprises
The Company has no material joint ventures or associates.
(1) Government grants included in current profit or loss
Accounting subjects Current period Previous period
Other income 52,916,603.16 78,772,057.75
Total 52,916,603.16 78,772,057.75
Bengang Steel Plates Co., Ltd. Interim Report 2026
(2) Liabilities involving government subsidies
Amounts
Amounts
recognized in Offset costs or
recognized in
non-operating expenses Other 2026/06/30 Asset-related/income-relat
Liabilities 2025/12/31 Addition other income
income during during the changes ed
during the
the current current period
current period
period
Deferred Asset-related/income-relat
income ed
Bengang Steel Plates Co., Ltd. Interim Report 2026
(1) Various risks arising from financial instruments
In the course of its operations, the Company is exposed to various financial risks: credit
risk, liquidity risk, and market risk (including currency risk, interest rate risk, and other
price risks). These financial risks and the risk management policies adopted by the
Company to mitigate them are described below:
Credit risk refers to the risk that a counterparty fails to discharge a contractual obligation,
resulting in a financial loss to the Company.
Liquidity risk is the risk that the Company will not be able to meet its financial
obligations on the maturity date.
The Company’s policy is to ensure that it maintains sufficient cash to meet its maturing
obligations. Liquidity risk is managed centrally by the Company's treasury department.
By monitoring cash balances, highly liquid marketable securities, and rolling forecasts of
cash flows for the next 12 months, the treasury department ensures the Company has
adequate funds to settle its debts under all reasonably foreseeable circumstances. At the
same time, the Company continuously monitors compliance with borrowing agreements
and obtains commitments from major financial institutions to provide sufficient standby
funding to meet both short-term and long-term capital requirements.
The Company's various financial liabilities are listed as follows by maturity date with
undiscounted contractual cash flows:
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Immediate Total undiscounted
Within 1 year 1-2 years 2-5 years Over 5 years Book value
repayment contract amount
Short-term
loans
Notes
payable
Accounts
payable
Other 1,471,465,107.72 900,248,576.00 179,455,553.68 2,551,169,237.40 2,551,169,237.40
payables
Long-term
loans
(including
long-term
loans due
within one
year)
Lease
liabilities
(including
lease
liabilities
due within
one year)
Total 24,322,686,638.82 10,548,238,089.61 997,182,581.24 725,986,560.96 36,594,093,870.63 36,594,093,870.63
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Immediate Total undiscounted
Within 1 year 1-2 years 2-5 years Over 5 years Book value
repayment contract amount
Short-term
loans
Notes
payable
Accounts
payable
Other
payables
Long-term
loans 927,300,000.00 2,326,771,934.40 3,687,697,823.71 6,941,769,758.11 6,941,769,758.11
(including
long-term
loans due
within one
year)
Lease
liabilities 348,084,227.50 420,003,905.75 817,727,027.56 1,001,705,172.32 2,587,520,333.13 2,587,520,333.13
(including
lease
liabilities
due within
one year)
Bonds
payable 5,665,550,635.00 5,665,550,635.00 5,665,550,635.00
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Immediate Total undiscounted
Within 1 year 1-2 years 2-5 years Over 5 years Book value
repayment contract amount
Total 24,599,959,454.59 3,647,024,416.15 4,684,880,404.95 1,001,705,172.32 33,933,569,448.01 33,933,569,448.01
Bengang Steel Plates Co., Ltd. Interim Report 2026
Market risk of financial instruments refers to the risk that the fair value or future
cash flows of financial instruments fluctuate due to changes in market prices,
including exchange rate risk, interest rate risk and other price risks.
（1）Interest rate risk
Interest rate risk refers to the risk that the fair value of a financial instrument or
future cash flows will fluctuate due to changes in market interest rates.
Fixed-rate and floating-rate interest-bearing financial instruments expose the
Company to fair value interest rate risk and cash flow interest rate risk, respectively.
The Company determines the relative proportions of fixed-rate and floating-rate
instruments based on prevailing market conditions and maintains an appropriate
mix of these instruments through regular reviews and monitoring. When necessary,
the Company utilizes interest rate swaps to hedge against interest rate risk.
（2）Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flows of
financial instruments will fluctuate due to changes in foreign exchange rates.
The exchange rate risk borne by the Company is mainly related to the US dollar,
Hong Kong dollar, Japanese yen and euro. Except for the Company's small amount
of raw material purchases and finished product sales settled in US dollars, Hong
Kong dollars, Japanese yen and euros, the Company's other major business
activities are settled in RMB. As of June 30, 2026, the assets or liabilities described
in the following table are the balances of US dollars, Hong Kong dollars, Japanese
yen and euros shown in the items:
Items 2026/06/30 2025/12/31
Cash and cash equivalents - USD 778,908,113.17 92,017,493.96
Cash and cash equivalents - HKD
Non-current liabilities due within one 974,434.92 1,038,284.80
year - JPY
Long-term loans - JPY 487,217.46 1,038,284.80
Accounts receivable – USD 849,139,404.55 663,734,936.95
Accounts payable - USD 103,031,832.45 42,678,053.96
Total 1,732,541,002.55 800,507,054.47
(2) Transfer of financial assets
Bengang Steel Plates Co., Ltd. Interim Report 2026
Financial asset Transferred financial assets Information of
Basis of derecognition
transfer method
Nature Amount derecognition
Retains substantially
Bill all of its risks and
Notes
endorsement/bill 107,070,828.39 Not derecognized rewards, including the
Receivable
discount default risk associated
with it
Bill Accounts Almost all of its risks
endorsement/bill Receivable 3,096,989,289.16 Derecognized and rewards have
discount Financing been transferred
Total 3,204,060,117.55
Notes to the basis of derecognition: As of June 30, 2026, the maturity date of accounts receivable
financing is 1 to 12 months. According to the relevant provisions of the Bills of Exchange Law, if
the accepting bank refuses to pay, the holder has the right to claim against the Company. The
Company believes that the Company has transferred almost all its risks and rewards, and therefore,
fully terminate the recognition of its and related settled accounts payable and confirm the discount
fees.
Methods of transferring Amount of Gains or losses related
Items derecognition to derecognition
financial assets
Accounts
Bill endorsement/bill
receivable 3,096,989,289.16 13,097,016.21
discounting
financing
Total 3,096,989,289.16 13,097,016.21
The input value used in fair value measurement is divided into three levels:
The input value of the first level is the unadjusted quotation of the same asset or liability that can
be obtained on the measurement date in an active market.
The input value of the second level is the input value of the related assets or liabilities that is
directly or indirectly observable except the input value of the first level.
The third level of input value is the unobservable input value of related assets or liabilities.
The level to which the fair value measurement result belongs is determined by the lowest level to
which the input value that is important to the fair value measurement as a whole belongs.
(1) Fair value of assets and liabilities measured at fair value at the end of the period
Bengang Steel Plates Co., Ltd. Interim Report 2026
Fair value at the end of the period
First level Second level Third level fair
Items
fair value fair value value
Total
measurement measurement measurement
measurement
Accounts receivable
financing
Other equity instrument
investments
(1) Details of parent company
Share
Name of parent Place of Business Registered Voting
proportion
company Registry nature capital rights (%)
(%)
RMB
Benxi Steel & Iron Benxi,
Manufacturing 9.825 58.65 58.65
(Group) Co., Ltd. Liaoning
billion
The ultimate controlling party of the Company: Ansteel Group Co., Ltd.
(2) Details of the Company’s subsidiaries
For details of the Company’s subsidiaries, please refer to Note 7 “Equity in Other Entities”.
(3) The company's joint ventures and associates
For details of the Company's important joint ventures or associates, please refer to Note 7 “Equity
in Other Entities”.
Other joint ventures or associates that had related-party transactions with the Company during the
current period, or had balances resulting from related-party transactions with the Company in prior
periods, are described below:
Name of joint venture or associated enterprise Relationship
Shenyang Xiangyu New Materials Technology Co., Ltd. Associate
(4) Other related parties
Bengang Steel Plates Co., Ltd. Interim Report 2026
Relationship between other related
Name of other related parties
parties and the Company
Parent company's controlling
Bengang Group Co., Ltd.
shareholder
Benxi Iron and Steel (Group) Co., LTD Parent company
Bengang Stainless Steel Cold Rolling Dandong Co., Ltd. Same parent company
Bengang Gaoyuan Industrial Development Co., Ltd. Same parent company
Bengang Group Dalian Refractory Materials Co., Ltd Same parent company
Benxi Aike Hydraulic Sealing Co., Ltd. Same parent company
Benxi Dongfenghu Steel Resource Utilization Co., Ltd. Same parent company
Benxi Iron and Steel (Group) Real Estate Development Co.,
Same parent company
Ltd.
Benxi Iron and Steel (Group) Engineering Construction
Same parent company
Supervision Co., Ltd.
Benxi Iron and Steel (Group) Machinery Manufacturing Co.,
Same parent company
Ltd.
Benxi Iron and Steel (Group) Construction Co., Ltd. Same parent company
Benxi Iron and Steel (Group) Mining Construction Engineering
Same parent company
Co., Ltd.
Benxi Iron and Steel (Group) Mining Liaoyang Ma'erling Pellet
Same parent company
Co., Ltd.
Benxi Iron and Steel (Group) Mining Co., Ltd. Same parent company
Benxi Iron and Steel (Group) Thermal Power Development
Same parent company
Co., Ltd.
Benxi Steel (Group) Equipment Engineering Co., Ltd. Same parent company
Benxi Iron and Steel (Group) Industrial Development Co., Ltd. Same parent company
Benxi Xihu Metallurgical Furnace Material Co., Ltd. Same parent company
Benxi Weld Phosphate Overlay Manufacturing Co., Ltd. Same parent company
Benxi New Industrial Development Co., Ltd. Same parent company
Liaoning Hengtai Heavy Machinery Co., Ltd. Same parent company
Liaoning Hengtong Metallurgical Equipment Manufacturing
Same parent company
Co., Ltd.
Liaoning Metallurgical Technician College Same parent company
Liaoning Metallurgical Vocational Technical College Same parent company
Liaoning Yitong Machinery Manufacturing Co., Ltd. Same parent company
Beijing Tianhongshan Hotel Co., Ltd. Same parent company
Liaoning Slag Micro-powder Co., Ltd. Same parent company
Belongs to Bengang Group Co.,
Bengang Group International Economic and Trade Co., Ltd.
Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Relationship between other related
Name of other related parties
parties and the Company
Belongs to Bengang Group Co.,
Benxi Northern Iron Industry Co., Ltd.
Ltd.
Belongs to Bengang Group Co.,
Benxi Beiying Iron and Steel (Group) Co., Ltd.
Ltd.
Benxi Iron and Steel (Group) Mining Liaoyang Jiajiabao Iron Belongs to Bengang Group Co.,
Mine Co., Ltd. Ltd.
Belongs to Bengang Group Co.,
Liaoning Hengyi Steel Trade Co., Ltd.
Ltd.
Belongs to Bengang Group Co.,
Liaoning Lide Internet of Things Co., Ltd.
Ltd.
Belongs to Bengang Group Co.,
Tianjin Bengang Plate Processing & Distribution Co., Ltd.
Ltd.
Belongs to Bengang Group Co.,
Benxi Beifang Steel Rolling Co.,Ltd.
Ltd.
Benxi Iron and Steel (Group) Mining Yanjia Valley Limestone Belongs to Bengang Group Co.,
Mine Co., Ltd. Ltd.
Angang (Hangzhou) Automotive Materials Technology Co.,
Belongs to Angang Group Co., Ltd.
Ltd.
Angang (Liaoning) Materials Technology Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Electrical Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Scrap Resources (Anshan) Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Steel Processing & Distribution (Dalian) Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Steel Processing & Distribution (Changchun) Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Steel Distribution (Hefei) Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Steel Distribution (Wuhan) Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Steel Rope Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Engineering, Production, Operations & Maintenance
Belongs to Angang Group Co., Ltd.
(Anshan) Co., Ltd.
Angang Steel Company Limited Belongs to Angang Group Co., Ltd.
Angang Chemical Technology Co., Ltd. Belongs to Angang Group Co., Ltd.
Ansteel Group Railway Equipment Checking & Repairing
Belongs to Angang Group Co., Ltd.
Company
Angang Group International Economic & Trade Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Group International Economic & Trade Co., Ltd.
Belongs to Angang Group Co., Ltd.
Benxi Branch
Angang Group Mining Gongchangling Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Group Automation Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Construction Group Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Mining Machinery Manufacturing Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Green Resources Technology Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Energy Technology Co., Ltd. Belongs to Angang Group Co., Ltd.
Ansteel Automobile Transportation Co.,Ltd. Belongs to Angang Group Co., Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Relationship between other related
Name of other related parties
parties and the Company
Angang Industrial Group Metallurgical Machinery Co., Ltd. Belongs to Angang Group Co., Ltd.
Ansteel Shuangsheng (Anshan) Fan Co., Ltd Belongs to Angang Group Co., Ltd.
Ansteel Water Technology (Liaoning) Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Heavy Machinery Design & Research Institute Co.,
Belongs to Angang Group Co., Ltd.
Ltd.
Angang Heavy Machinery Co., Ltd. Belongs to Angang Group Co., Ltd.
Anshan Angang International Travel Agency Co., Ltd. Belongs to Angang Group Co., Ltd.
Anshan Iron & Steel Metallurgical Furnace Material
Belongs to Angang Group Co., Ltd.
Technology Co., Ltd.
Anshan Jianbo Engineering Testing Co., Ltd. Belongs to Angang Group Co., Ltd.
Benxi Steel and Iron (Group)Tengda Co., Ltd. Belongs to Angang Group Co., Ltd.
Benxi Iron and Steel (Group) Information Automation Co.,
Belongs to Angang Group Co., Ltd.
Ltd.
DeLin Industrial Products Co., Ltd. Belongs to Angang Group Co., Ltd.
DeLin Land Port Supply Chain Services Co., Ltd. Belongs to Angang Group Co., Ltd.
Guangzhou Angang Steel Processing Co., Ltd. Belongs to Angang Group Co., Ltd.
Lingyuan Iron & Steel Group Co., Ltd. Belongs to Angang Group Co., Ltd.
Pangang Group Jiangyou Great Wall Special Steel Co., Ltd. Belongs to Angang Group Co., Ltd.
Panzhong Yihong Metal Products (Chongqing) Co., Ltd. Belongs to Angang Group Co., Ltd.
Shenyang Angang International Trade Co., Ltd. Belongs to Angang Group Co., Ltd.
Tianjin Angang Steel Processing & Distribution Co., Ltd. Belongs to Angang Group Co., Ltd.
Changchun FAW Angang Steel Processing & Distribution Co.,
Belongs to Angang Group Co., Ltd.
Ltd.
Angang Steel Processing & Distribution (Zhengzhou) Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Group Beijing Research Institute Co., Ltd. Belongs to Angang Group Co., Ltd.
Ansteel Group Mining Co., LTD Belongs to Angang Group Co., Ltd.
Ansteel Group Co., Ltd Belongs to Angang Group Co., Ltd.
Angang Green Gold Industry Development Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang ShenYang Steel Service Centre Co., Ltd. Belongs to Angang Group Co., Ltd.
Angang Industrial Group (Anshan) Equipment Operation &
Belongs to Angang Group Co., Ltd.
Maintenance Co., Ltd.
Angang Tendering Co., Ltd. Belongs to Angang Group Co., Ltd.
Ansteel Cast Steel Co., Ltd. Belongs to Angang Group Co., Ltd.
Anshan Iron and Steel Group Co., Ltd. Belongs to Angang Group Co., Ltd.
Anshan Iron and Steel Labor Research Institute Technology
Belongs to Angang Group Co., Ltd.
Co., Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Relationship between other related
Name of other related parties
parties and the Company
Anzi (Tianjin) Financial Leasing Co., Ltd. Belongs to Angang Group Co., Ltd.
Chengdu Xingyun Smart Technology Co., Ltd. Belongs to Angang Group Co., Ltd.
Pangang Group Chengdu Vanadium & Titanium Resources
Belongs to Angang Group Co., Ltd.
Development Co., Ltd.
Yantai Angang International Trading Co., Ltd. Belongs to Angang Group Co., Ltd.
Ansteel Guangzhou Automotive Steel Co., Ltd. Associate of Ansteel Group
Angang Group Engineering Technology Co., Ltd. Associate of Ansteel Group
Angang Mining Construction Co., Ltd. Associate of Ansteel Group
Beijing Zhongliangang E-commerce Co., Ltd. Associate of Ansteel Group
Bengang Electrical Co., Ltd. Associate of Ansteel Group
Bengang Automotive Transport Co., Ltd. Associate of Ansteel Group
Benxi Gaoxin Drilling Tools Manufacturing Co., Ltd. Associate of Ansteel Group
Heilongjiang Longmei Mining Group Co., Ltd. Associate of Ansteel Group
Hongda Engineering Technology (Liaoning) Co., Ltd. Associate of Ansteel Group
Pangang Group Engineering Technology Consulting Co., Ltd. Associate of Ansteel Group
Shenyang Xiangyu New Materials Technology Co., Ltd. Associate of Ansteel Group
China Ordins Group Co.,Ltd. Associate of Ansteel Group
MCC Northern Engineering & Technology Co., Ltd. Associate of Ansteel Group
MCC South Engineering & Technology Co., Ltd. Associate of Ansteel Group
MCC-CEI Engineering Technology Co., Ltd. Associate of Ansteel Group
Ansteel Group Energy-Saving Technology Service Co., Ltd. Associate of Ansteel Group
Angang Mining Resource Utilization (Anshan) Co., Ltd. Associate of Ansteel Group
Benxi Yuneng Thermal Power Co., Ltd. Joint Ventures of Ansteel Group
(5) Related-party transactions
Purchasing goods and services
Content of related
Related parties Current period Previous period
transactions
Angang (Liaoning) Materials Professional
Technology Co., Ltd. service fees
Angang (Liaoning) Materials
Technology Co., Ltd. Engineering costs
Bengang Steel Plates Co., Ltd. Interim Report 2026
Content of related
Related parties Current period Previous period
transactions
Angang Electrical Co., Ltd. Repair costs 530,400.00 756,800.00
Angang Scrap Resources (Anshan)
Co., Ltd. Scrap steel
Angang Scrap Resources (Anshan)
Co., Ltd. Raw material
Angang Steel Processing &
Distribution (Dalian) Co., Ltd. Steel products
Angang Steel Processing &
Distribution (Dalian) Co., Ltd. Processing fee
Angang Steel Processing &
Distribution (Changchun) Co., Ltd. Warehousing fees
Angang Steel Processing &
Distribution (Changchun) Co., Ltd. Processing fee
Angang Steel Processing &
Distribution (Zhengzhou) Co., Ltd. Warehousing fees
Angang Engineering Technology
Survey and Design Institute (Anshan) Auxiliary 797,914.39
Co., Ltd. materials
Auxiliary
Angang Steel Company Limited 2,795,871.00 3,205,093.05
materials
Ansteel Group Railway Equipment
Checking&Repairing Company Spare parts
Ansteel Group Anqian Mining Co.,
Ltd. Raw material
Angang Group Beijing Research Professional
Institute Co., Ltd. service fees
Angang Group Engineering Safety Production
Technology Co., Ltd. Fee
Angang Group Engineering
Technology Co., Ltd. Spare parts
Angang Group Engineering
Technology Co., Ltd. Engineering costs
Angang Group Engineering
Technology Co., Ltd. Repair costs
Angang Group Engineering Professional
Technology Co., Ltd. service fees
Angang Group International
Economic & Trade Co., Ltd. Fuel
Angang Group International
Economic & Trade Co., Ltd. Spare parts
Angang Group International
Economic & Trade Co., Ltd. Agency fee
Port
Angang Group International
miscellaneous 34,780,163.92
Economic & Trade Co., Ltd.
charges
Angang Group International
Economic & Trade Co., Ltd. Raw material
Angang Group Energy-Saving Professional
Technology Services Co., Ltd. service fees
Angang Group Mining
Gongchangling Co., Ltd. Raw material
Ansteel Group Mining Co., LTD Raw material 76,121,547.07 1,482,101.33
Ansteel Group Co., Ltd Sales service fee 6,505,306.24
Administrative
Ansteel Group Co., Ltd 168,137.61
expenses
Ansteel Group Co., Ltd Training fees 5,094.34
Angang Group Automation Co., Ltd. Engineering costs 1,600,000.00 1,600,000.00
Angang Construction Group Co., Ltd. Repair costs 268,000.00
Angang Construction Group Co., Ltd. Engineering costs 10,246,537.92
Angang Construction Group Co., Ltd. Spare parts 5,653,200.00
Bengang Steel Plates Co., Ltd. Interim Report 2026
Content of related
Related parties Current period Previous period
transactions
Angang Mining Construction Co.,
Ltd. Repair costs
Angang Mining Resource Utilization
(Anshan) Co., Ltd. Raw material
Angang Green Gold Industry Professional
Development Co., Ltd. service fees
Angang Green Resources
Technology Co., Ltd. Shipping costs
Ansteel Automobile Transportation
Co.,Ltd. Shipping costs
Angang ShenYang Steel Service
Centre Co.,Ltd. Processing fee
Angang Industrial Group (Anshan)
Equipment Operation & Maintenance Professional 3,729,392.58 2,780,930.40
Co., Ltd. service fees
Angang Industrial Group
Metallurgical Machinery Co., Ltd. Repair costs
Angang Industrial Group
Metallurgical Machinery Co., Ltd. Spare parts
Ansteel Shuangsheng (Anshan) Fan
Co., Ltd Repair costs
Ansteel Water Technology Professional
(Liaoning) Co., Ltd. service fees
Ansteel Water Technology Auxiliary
(Liaoning) Co., Ltd. materials
Angang Modern Urban Services
(Anshan) Co., Ltd. Anshan Dongshan 10,188.68
Hotel Branch Travel expenses
Angang Heavy Machinery Co., Ltd. Spare parts 1,657,222.00 3,257,110.00
Angang Heavy Machinery Co., Ltd. Repair costs 721,236.00 286,000.00
Anshan Angang International Travel Business Travel 84,348.98 11,721.71
Agency Co., Ltd. Service Fee
Anshan Iron & Steel Metallurgical
Furnace Material Technology Co., Auxiliary 1,526,938.87
Ltd. materials
Anshan Jianbo Engineering Testing
Co., Ltd. Engineering costs
Anzi (Tianjin) Financial Leasing Co., Professional
Ltd. service fees
Bengang Stainless Steel Cold Rolling
Dandong Co., Ltd. Spare parts
Bengang Electrical Co., Ltd. Raw material 82,676,012.07 97,672,744.51
Bengang Electrical Co., Ltd. Repair costs 5,438,438.70 13,890,147.57
Bengang Gaoyuan Industrial
Development Co., Ltd. Repair costs
Information
Bengang Gaoyuan Industrial System Operation
Development Co., Ltd. and Maintenance
Fees
Bengang Gaoyuan Industrial
Development Co., Ltd. Spare parts
Bengang Gaoyuan Industrial
Development Co., Ltd. Engineering costs
Bengang Group Dalian Refractory Auxiliary
Materials Co., Ltd materials
Bengang Group International
Economic and Trade Co., Ltd. Agency fee
Bengang Automotive Transport Co.,
Ltd. Shipping costs
Bengang Automotive Transport Co.,
Ltd. Spare parts
Bengang Steel Plates Co., Ltd. Interim Report 2026
Content of related
Related parties Current period Previous period
transactions
Benxi Aike Hydraulic Sealing Co.,
Ltd. Spare parts
Benxi Northern Iron Industry Co.,
Ltd. Raw material
Benxi Beiying Iron and Steel (Group)
Co., Ltd. Raw material
Benxi Beiying Iron and Steel (Group)
Co., Ltd. Fuel
Benxi Beiying Iron and Steel (Group)
Co., Ltd. Energy and Power
Benxi Beiying Iron and Steel (Group) Total service
Co., Ltd. contract fee
Benxi Beiying Iron and Steel (Group)
Co., Ltd. Steel products
Benxi Beiying Iron and Steel (Group)
Co., Ltd. Heating fee
Benxi Beiying Iron and Steel (Group)
Co., Ltd. Shipping costs
Benxi Beiying Iron and Steel (Group)
Co., Ltd. Weighing fee
Benxi Beiying Iron and Steel (Group) Chemical testing
Co., Ltd. fees
Benxi Beiying Iron and Steel (Group) Auxiliary
Co., Ltd. materials
Benxi Beiying Iron and Steel (Group)
Co., Ltd. Repair costs
Benxi Dongfenghu Steel Resource
Utilization Co., Ltd. Raw material
Benxi Dongfenghu Steel Resource Auxiliary
Utilization Co., Ltd. materials
Benxi Dongfenghu Steel Resource
Utilization Co., Ltd. Scrap steel
Benxi Dongfenghu Steel Resource
Utilization Co., Ltd. Fuel
Benxi Iron and Steel (Group)
Engineering Construction 731,081.00 885,990.00
Supervision Co., Ltd. Engineering costs
Benxi Iron and Steel (Group)
Engineering Construction 45,100.00
Supervision Co., Ltd. Repair costs
Benxi Steel and Iron(Group)Tengda
Co.,Ltd. Shipping costs
Port
Benxi Steel and Iron(Group)Tengda
miscellaneous 15,001,336.44 19,137,576.17
Co.,Ltd.
charges
Benxi Steel and Iron(Group)Tengda
Co.,Ltd. Fuel
Benxi Iron and Steel (Group)
Machinery Manufacturing Co., Ltd. Spare parts
Benxi Iron and Steel (Group)
Machinery Manufacturing Co., Ltd. Engineering costs
Benxi Iron and Steel (Group)
Machinery Manufacturing Co., Ltd. Repair costs
Benxi Iron and Steel (Group) Auxiliary
Machinery Manufacturing Co., Ltd. materials
Benxi Iron and Steel (Group)
Machinery Manufacturing Co., Ltd. Shipping costs
Benxi Iron and Steel (Group)
Machinery Manufacturing Co., Ltd. Scrap steel
Benxi Iron and Steel (Group) Professional
Machinery Manufacturing Co., Ltd. service fees
Benxi Iron and Steel (Group)
Machinery Manufacturing Co., Ltd. Raw material
Bengang Steel Plates Co., Ltd. Interim Report 2026
Content of related
Related parties Current period Previous period
transactions
Benxi Iron and Steel (Group)
Machinery Manufacturing Co., Ltd. Processing fee
Benxi Iron and Steel (Group)
Construction Co., Ltd. Engineering costs
Benxi Iron and Steel (Group)
Construction Co., Ltd. Spare parts
Benxi Iron and Steel (Group) Packaging
Construction Co., Ltd. materials
Benxi Iron and Steel (Group)
Construction Co., Ltd. Repair costs
Benxi Iron and Steel (Group) Professional
Construction Co., Ltd. service fees
Benxi Iron and Steel (Group) Auxiliary
Construction Co., Ltd. materials
Benxi Iron and Steel (Group) Safety Production
Construction Co., Ltd. Fee
Benxi Iron and Steel (Group)
Construction Co., Ltd. Scrap steel
Benxi Iron and Steel (Group) Total service
Construction Co., Ltd. contract fee
Benxi Iron and Steel (Group) Mining
Construction Engineering Co., Ltd. Repair costs
Benxi Iron and Steel (Group) Mining
Construction Engineering Co., Ltd. Engineering costs
Benxi Iron and Steel (Group) Mining Safety Production 3,755,666.00
Construction Engineering Co., Ltd. Fee
Benxi Iron and Steel (Group) Mining
Construction Engineering Co., Ltd. Spare parts
Benxi Iron and Steel (Group) Mining Security and Fire 150,000.00
Construction Engineering Co., Ltd. Safety Fees
Benxi Steel Group Mining Liaoyang
Jiajiapu Iron Mine Co., Ltd. Scrap steel
Benxi Steel Group Mining Liaoyang
Ma'erling Pelletizing Co., Ltd. Raw material
Benxi Steel Group Mining Liaoyang
Ma'erling Pelletizing Co., Ltd. Scrap steel
Benxi Iron and Steel (Group) Mining
Co., Ltd. Raw material
Benxi Iron and Steel (Group) Mining Auxiliary
Co., Ltd. materials
Benxi Iron and Steel (Group) Mining
Co., Ltd. Energy and Power
Benxi Iron and Steel (Group) Mining
Co., Ltd. Scrap steel
Benxi Iron and Steel (Group)
Thermal Power Development Co., 12,460.50 134,558.60
Ltd. Scrap steel
Benxi Steel Group Equipment
Engineering Co., Ltd. Repair costs
Benxi Steel Group Equipment
Engineering Co., Ltd. Engineering costs
Benxi Steel Group Equipment Professional
Engineering Co., Ltd. service fees
Benxi Steel Group Equipment
Engineering Co., Ltd. Spare parts
Benxi Steel Group Equipment Environmental 2,450,000.00
Engineering Co., Ltd. testing fees
Benxi Steel (Group) Equipment
Engineering Co., Ltd. Scrap steel
Safety Production
Chengdu Pangang Hotel Co., Ltd. 506,000.00
Fee
Bengang Steel Plates Co., Ltd. Interim Report 2026
Content of related
Related parties Current period Previous period
transactions
Benxi Steel Group Industrial
Development Co., Ltd. Scrap steel
Benxi Steel Group Industrial
Development Co., Ltd. Raw material
Benxi Steel Group Industrial
Development Co., Ltd. Landscaping fee
Benxi Steel Group Industrial
Development Co., Ltd. Shipping costs
Benxi Steel Group Industrial
Development Co., Ltd. Repair costs
Benxi Steel Group Industrial Auxiliary
Development Co., Ltd. materials
Information
Benxi Steel Group Information System Operation
Automation Co., Ltd. and Maintenance
Fees
Benxi Steel Group Information
Automation Co., Ltd. Engineering costs
Benxi Steel Group Information
Automation Co., Ltd. Spare parts
Benxi Steel Group Information
Automation Co., Ltd. Repair costs
Benxi Steel Group Information Safety Production
Automation Co., Ltd. Fee
Benxi Iron and Steel (Group) Co., Safety Production
LTD Fee
Benxi Iron and Steel (Group) Co., Professional
LTD service fees
Benxi Iron and Steel (Group) Co.,
LTD Engineering costs
Benxi Iron and Steel (Group) Co.,
LTD Waste materials
Benxi Iron and Steel (Group) Co.,
LTD Energy and Power
Benxi Xihu Metallurgical Furnace
Material Co., Ltd. Raw material
Benxi New Industrial Development
Co., Ltd. Landscaping fee
Benxi New Industrial Development Administrative
Co., Ltd. expenses
Benxi New Industrial Development Auxiliary
Co., Ltd. materials
Benxi New Industrial Development Property 177,169.80 313,090.29
Co., Ltd. management fees
Business
Benxi New Industrial Development
entertainment 41,123.00 94,085.00
Co., Ltd.
expenses
Benxi New Industrial Development
Co., Ltd. Scrap steel
Benxi Yuneng Thermal Power Co.,
Ltd. Energy and Power
DeLin Industrial Products Co., Ltd. Spare parts 7,508,252.81 26,641,853.28
Auxiliary
Delin Industrial Products Co., Ltd 6,348,515.96 8,783,673.06
materials
Administrative
Delin Industrial Products Co., Ltd 2,019.61
expenses
Delin Land Port Supply Chain
Services Co., Ltd Shipping costs
Delin Land Port Supply Chain
Services Co., Ltd Sales service fee
Delin Land Port Supply Chain
Services Co., Ltd Steel products
Bengang Steel Plates Co., Ltd. Interim Report 2026
Content of related
Related parties Current period Previous period
transactions
Delin Land Port Supply Chain
Services Co., Ltd Warehousing fees
Liaoning Hengtai Heavy Machinery
Co., Ltd. Repair costs
Liaoning Hengtai Heavy Machinery
Co., Ltd. Spare parts
Liaoning Hengtai Heavy Machinery
Co., Ltd. Processing fee
Liaoning Hengtai Heavy Machinery Professional
Co., Ltd. service fees
Liaoning Hengtai Heavy Machinery
Co., Ltd. Engineering costs
Liaoning Hengtai Heavy Machinery Safety Production
Co., Ltd. Fee
Liaoning Hengtai Heavy Machinery Auxiliary
Co., Ltd. materials
Liaoning Hengtai Heavy Machinery
Co., Ltd. Shipping costs
Liaoning Hengtai Heavy Machinery
Co., Ltd. Scrap steel
Liaoning Hengtong Metallurgical
Equipment Manufacturing Co., Ltd. Spare parts
Liaoning Hengtong Metallurgical
Equipment Manufacturing Co., Ltd. Repair costs
Liaoning Lide Internet of Things Co.,
Ltd. Logistics costs
Liaoning Lide Internet of Things Co.,
Ltd. Shipping costs
Liaoning Yitong Machinery
Manufacturing Co., Ltd. Spare parts
Liaoning Yitong Machinery
Manufacturing Co., Ltd. Scrap steel
Liaoning Yitong Machinery
Manufacturing Co., Ltd. Repair costs
Lingyuan Iron & Steel Group Co.,
Ltd. Fuel
Pangang Group Chengdu Vanadium
& Titanium Resources Development 4,795,258.97 3,474,192.31
Co., Ltd. Raw material
Pangang Group Engineering
Technology Consulting Co., Ltd. Engineering costs
Shenyang Angang International
Trade Co., Ltd. Steel products
Shenyang Xiangyu New Materials
Technology Co., Ltd. Processing fee
Tianjin Bengang Plate Processing &
Distribution Co., Ltd. Sales service fee
Tianjin Bengang Plate Processing &
Distribution Co., Ltd. Processing fee
Tianjin Bengang Plate Processing &
Distribution Co., Ltd. Warehousing fees
MCC South Engineering &
Technology Co., Ltd. Engineering costs
Selling goods and services
Content of related
Related parties Current period Previous period
transactions
Angang (Hangzhou) Automotive Steel and steel
Materials Technology Co., Ltd. products
Bengang Steel Plates Co., Ltd. Interim Report 2026
Content of related
Related parties Current period Previous period
transactions
Logistics and
Angang Steel Processing and
transportation 13,359.05
Distribution (Dalian) Co., Ltd.
revenue
Angang Steel Processing and Steel and steel
Distribution (Dalian) Co., Ltd. products
Logistics and
Angang Steel Processing and
transportation 6,572.87
Distribution (Dalian) Co., Ltd.
revenue
Angang Steel Processing and Processing
Distribution (Changchun) Co., Ltd. income
Angang Steel Processing and Steel and steel
Distribution (Zhengzhou) Co., Ltd. products
Ansteel Steel Distribution (Hefei) Steel and steel
Co., Ltd. products
Ansteel Steel Distribution (Wuhan) Steel and steel
Co., Ltd. products
Steel and steel
Angang Steel Company Limited 7,771,791.09 3,096,311.53
products
Ansteel Guangzhou Automotive Steel Steel and steel
Co., Ltd. products
Angang Chemical Technology Co., Chemicals and
Ltd. by-products
Angang Group Engineering &
Energy and Power 16,447.08
Technology Co., Ltd.
Angang Group International Steel and steel
Economic & Trading Co., Ltd. products
Angang Group International
Economic & Trade Co., Ltd. — Energy and Power 3,038,017.82 2,164,597.81
Benxi Branch
Revenue from
Angang Group Energy-Saving
other labor 1,351.70
Technology Services Co., Ltd.
services
Ansteel Group Co., Ltd Energy and Power 3,197.39 5,043.59
Angang Group Automation Co., Ltd. Energy and Power 405.51
Angang Construction Group Co., Ltd. Energy and Power 279.46
Angang Mining Machinery Steel and steel
Manufacturing Co., Ltd. products
Angang Green Resources Technology Revenue from
Co., Ltd. sales of materials
Angang Energy Technology Co., Ltd. Energy and Power 9,227,331.26 9,514,672.04
Angang ShenYang Steel Service Steel and steel
Centre Co., Ltd. products
Angang Industrial Group Steel and steel
Metallurgical Machinery Co., Ltd. products
Ansteel Water Technology (Liaoning)
Energy and Power 9,076,027.61
Co., Ltd.
Angang Tendering Co., Ltd. Benxi
Energy and Power 11,799.68 10,309.54
Branch
Ansteel Cast Steel Co., Ltd. Scrap steel 19,359,536.55
Bengang Group Dalian Refractory Steel and steel
Materials Co., Ltd products
Bengang Group Co., Ltd. Energy and Power 91,983.49 101,034.27
Bengang Automotive Transport Co.,
Energy and Power 33,231.55 37,763.43
Ltd.
Benxi Northern Iron Industry Co., Revenue from
Ltd. sales of materials
Bengang Steel Plates Co., Ltd. Interim Report 2026
Content of related
Related parties Current period Previous period
transactions
Benxi Northern Iron Industry Co., Steel and steel
Ltd. products
Steel and steel
Benxi Beifang Steel Rolling Co., Ltd. 1,106,623.83
products
Benxi Beiying Iron and Steel (Group)
Scrap steel 62,100,724.34 116,769,194.64
Co., LTD
Benxi Beiying Iron and Steel (Group)
Energy and Power 26,756,951.29 27,444,939.22
Co., LTD
Benxi Beiying Iron and Steel (Group) Revenue from
Co., LTD sales of materials
Benxi Beiying Iron and Steel (Group) Steel and steel
Co., LTD products
Benxi Dongfenghu Steel Resource
Energy and Power 2,134,873.10 2,119,069.66
Utilization Co., Ltd.
Benxi Dongfenghu Steel Resource Revenue from
Utilization Co., Ltd. sales of materials
Benxi Dongfenghu Steel Resource Chemicals and
Utilization Co., Ltd. by-products
Revenue from
Benxi Dongfenghu Steel Resource
other labor 21,698.11
Utilization Co., Ltd.
services
Benxi Iron and Steel (Group) Real
Energy and Power 1,606.30 1,599.21
Estate Development Co., Ltd.
Benxi Iron and Steel (Group)
Engineering Construction Supervision Energy and Power 462.3 874.86
Co., Ltd.
Benxi Steel and Iron (Group)Tengda Steel and steel
Co., Ltd. products
Benxi Iron and Steel (Group)
Energy and Power 5,944,739.52 5,016,994.98
Machinery Manufacturing Co., LTD
Revenue from
Benxi Iron and Steel (Group)
other labor 281,169.82 69,556.60
Machinery Manufacturing Co., LTD
services
Benxi Iron and Steel (Group) Revenue from
Machinery Manufacturing Co., LTD sales of materials
Benxi Iron and Steel (Group) Steel and steel
Machinery Manufacturing Co., LTD products
Benxi Iron and Steel (Group) Processing
Machinery Manufacturing Co., LTD income
Logistics and
Benxi Iron and Steel (Group)
transportation 1,128.28
Machinery Manufacturing Co., LTD
revenue
Benxi Iron and Steel (Group)
Energy and Power 462,423.52 1,456,705.56
Construction Co., Ltd
Revenue from
Benxi Iron and Steel (Group)
other labor 337.92
Construction Co., Ltd
services
Benxi Iron and Steel (Group) Mining
Energy and Power 50,561.78 83,862.76
Construction Engineering Co., Ltd.
Revenue from
Benxi Iron and Steel (Group) Mining
other labor 1,069.81
Construction Engineering Co., Ltd.
services
Benxi Iron and Steel (Group) Mining Steel and steel
Construction Engineering Co., Ltd. products
Benxi Iron and Steel (Group) Mining
Liaoyang Jiajiabao Iron Mine Co., Energy and Power 8,170.56 12,131.93
Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Content of related
Related parties Current period Previous period
transactions
Benxi Iron and Steel (Group) Mining Revenue from
Liaoyang Jiajiabao Iron Mine Co., other labor 38,730.00
Ltd. services
Benxi Steel Group Mining Liaoyang Revenue from
Ma'erling Pelletizing Co., Ltd. sales of materials
Revenue from
Benxi Steel Group Mining Liaoyang
other labor 91,792.45
Ma'erling Pelletizing Co., Ltd.
services
Benxi Steel Group Mining Liaoyang
Energy and Power 4,081.11 2,868.70
Ma'erling Pelletizing Co., Ltd.
Benxi Iron and Steel (Group) Mining
Energy and Power 96,167,352.26 84,987,278.36
Co., LTD
Benxi Iron and Steel (Group) Mining Revenue from
Co., LTD sales of materials
Benxi Iron and Steel (Group) Mining Steel and steel
Co., LTD products
Logistics and
Benxi Iron and Steel (Group) Mining
transportation 3,891,739.52 3,443,385.04
Co., LTD
revenue
Benxi Iron and Steel (Group) Mining Chemicals and
Co., LTD by-products
Revenue from
Benxi Iron and Steel (Group) Mining
other labor 914,994.35
Co., LTD
services
Benxi Iron and Steel (Group)
Thermal Power Development Co., Energy and Power 15,815,766.52 13,818,458.98
Ltd.
Benxi Iron and Steel (Group)
Revenue from
Thermal Power Development Co., 2,742,978.35 9,998,954.55
sales of materials
Ltd.
Benxi Iron and Steel (Group)
Energy and Power 929,521.86 1,245,472.05
Equipment Engineering Co., LTD
Revenue from
Benxi Iron and Steel (Group)
other labor 15,720.46
Equipment Engineering Co., LTD
services
Benxi Iron and Steel (Group) Steel and steel
Equipment Engineering Co., LTD products
Benxi Iron and Steel (Group) Revenue from
Industrial Development Co., LTD sales of materials
Benxi Iron and Steel (Group)
Energy and Power 4,854,064.86 3,828,288.42
Industrial Development Co., LTD
Benxi Iron and Steel (Group)
Waste materials 9,225,164.59
Industrial Development Co., LTD
Benxi Steel Group Information
Energy and Power 152,790.58 219,503.20
Automation Co., Ltd.
Benxi Iron and Steel (Group) Co.,
Energy and Power 4,595,824.55 5,656,233.48
LTD
Revenue from
Benxi Iron and Steel (Group) Co.,
other labor 589,400.00
LTD
services
Benxi Iron and Steel (Group) Co., Revenue from
LTD sales of materials
Benxi Xihu Metallurgical Furnace
Energy and Power 168,974.00 262,237.50
Material Co., Ltd.
Benxi Weld Phosphate Overlay
Energy and Power 19,480.21
Manufacturing Co., Ltd.
Benxi New Industrial Development
Energy and Power 256,518.45 142,545.86
Co., Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Content of related
Related parties Current period Previous period
transactions
Revenue from
Benxi New Industrial Development
other labor 2,757.74
Co., Ltd.
services
Benxi Yuneng Thermal Power Co.,
Energy and Power 265,735,931.04
Ltd.
Revenue from
Chengdu Tianfu Huirong Information
other labor 117,223.01
Technology Co., Ltd.
services
Steel and steel
Dalian Bolore Steel Pipe Co., Ltd. 441,221.12
products
Delin Land Port Supply Chain Steel and steel
Services Co., Ltd products
Guangzhou Ansteel Steel Processing Steel and steel
Co., Ltd. products
Liaoning Hengtai Heavy Machinery
Energy and Power 697.03
Co., Ltd.
Liaoning Hengtong Metallurgical Revenue from
Equipment Manufacturing Co., Ltd. sales of materials
Liaoning Hengtong Metallurgical
Waste materials 4,568,305.20 6,227,055.46
Equipment Manufacturing Co., Ltd.
Revenue from
Liaoning Hengtong Metallurgical
other labor 91,845.47 47,688.68
Equipment Manufacturing Co., Ltd.
services
Liaoning Lide Internet of Things Co.,
Energy and Power 68,653.97
Ltd.
Liaoning Yitong Machinery
Energy and Power 13,413.30
Manufacturing Co., Ltd.
Processing
Lingyuan Iron & Steel Co., Ltd. 19,015,707.57
income
Information
Lingyuan Iron & Steel Co., Ltd. technology 62,264.15
service revenue
Steel and steel
Lingyuan Iron & Steel Co., Ltd. 246.84
products
Pangang Group Jiangyou Great Wall Steel and steel
Special Steel Co., Ltd. products
Panzhong Yihong Metal Products Steel and steel
(Chongqing) Co., Ltd. products
Shenyang Angang International Trade Steel and steel
Co., Ltd. products
Shenyang Xiangyu New Materials Revenue from
Technology Co., Ltd. sales of materials
Revenue from
Shenyang Xiangyu New Materials
other labor 164,739.04
Technology Co., Ltd.
services
Tianjin Angang Steel Processing & Steel and steel
Distribution Co., Ltd. products
Tianjin Bengang Plate Processing & Steel and steel
Distribution Co., Ltd. products
Revenue from
Tianjin Bengang Plate Processing &
other labor 530,126.98
Distribution Co., Ltd.
services
Yantai Angang International Trading Steel and steel
Co., Ltd. products
Changchun FAW Angang Steel Steel and steel
Processing & Distribution Co., Ltd. products
Logistics and
Changchun FAW Angang Steel
transportation 364.61 2,971.66
Processing & Distribution Co., Ltd.
revenue
Bengang Steel Plates Co., Ltd. Interim Report 2026
Content of related
Related parties Current period Previous period
transactions
Steel and steel
China Ordins Group Co., Ltd. 297,207,796.00 166,331.79
products
China Ordnance Materials Shenyang Steel and steel
Co., Ltd. products
China Ordnance Materials Steel and steel
West&South Co., Ltd. products
Bengang Steel Plates Co., Ltd. Interim Report 2026
Company as the lessee：
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease m leases payments
Increase Increase
and payments Interest and not
Leased Asset in Interest in
Lessor Name leases of not included expense leases of included
Type Rent paid right-of- Rent paid expense on right-of-
low-valu in the on lease low-valu in the
use lease liabilities use
e assets measureme liabilities e assets measurem
assets assets
with nt of lease with ent of
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
Benxi Steel 2300 Hot
& Iron rolling product 8,049,080.52 3,348,358.04
(Group) Co., line, related
Ltd. real estate
Land use right
Benxi Steel 7,669,068.17
& Iron square meter 27,638,772.0 18,142,807.5
(Group) Co., Land use right
Ltd. 42,920.00
square meter
Benxi 1780 Hot 6,912,486.06 2,433,851.18
Bengang Steel Plates Co., Ltd. Interim Report 2026
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease m leases payments
Increase Increase
and payments Interest and not
Leased Asset in Interest in
Lessor Name leases of not included expense leases of included
Type Rent paid right-of- Rent paid expense on right-of-
low-valu in the on lease low-valu in the
use lease liabilities use
e assets measureme liabilities e assets measurem
assets assets
with nt of lease with ent of
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
Beiying Steel rolling product
& Iron line, related
(Group) Co., real estate
Ltd.
Bengang Land use right
Group Co., 728,282.30 4,972,711.56
Ltd. square meter
Angang
Group
Energy-Savin Machinery and 828,571.67 1,400,598.59
g Technology equipment
Services Co.,
Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease m leases payments
Increase Increase
and payments Interest and not
Leased Asset in Interest in
Lessor Name leases of not included expense leases of included
Type Rent paid right-of- Rent paid expense on right-of-
low-valu in the on lease low-valu in the
use lease liabilities use
e assets measureme liabilities e assets measurem
assets assets
with nt of lease with ent of
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
Plate Mill
High-Pressure
Area
Benxi 2×135MW
Yuneng Waste Gas
Thermal Resource 00 8,928,791.76
Power Co., Comprehensiv
Ltd. e Utilization
Power
Generation
Project (BOT)
Benxi Iron Machinery and 7,313,667.9 3,470,033.3
and Steel Equipment
Bengang Steel Plates Co., Ltd. Interim Report 2026
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease m leases payments
Increase Increase
and payments Interest and not
Leased Asset in Interest in
Lessor Name leases of not included expense leases of included
Type Rent paid right-of- Rent paid expense on right-of-
low-valu in the on lease low-valu in the
use lease liabilities use
e assets measureme liabilities e assets measurem
assets assets
with nt of lease with ent of
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
(Group)
Construction
Co., Ltd.
Benxi Iron &
Steel (Group) Transport 5,687,307.2
Construction Equipment
Co., Ltd.
Benxi New
Industrial 120,000.00
Land Lease
Development
Co., Ltd.
Anzi Machinery and 7,238,081.9 1,369,970.8
(Tianjin) Equipment
Bengang Steel Plates Co., Ltd. Interim Report 2026
Current period Previous period amount
Rental Rental
costs for costs for Variable
short-ter Variable short-ter lease
m leases lease m leases payments
Increase Increase
and payments Interest and not
Leased Asset in Interest in
Lessor Name leases of not included expense leases of included
Type Rent paid right-of- Rent paid expense on right-of-
low-valu in the on lease low-valu in the
use lease liabilities use
e assets measureme liabilities e assets measurem
assets assets
with nt of lease with ent of
simplifie liabilities simplifie lease
d d liabilities
treatment treatment
Financial
Leasing Co.,
Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
(6) Receivables and payables of the related parties
Items Name Gross carrying Provision for Gross carrying Provision for bad
amount bad debts amount debts
Angang Steel
Processing
Accounts and
receivable Distribution
(Dalian) Co.,
Ltd.
Angang
Group
Accounts
Engineering & 68,421.86 684.22
receivable
Technology
Co., Ltd.
Angang
Group
International
Accounts
Economic & 849,139,404.55 8,491,394.05 663,734,937.01 6,637,349.37
receivable
Trade Co.,
Ltd. Benxi
Branch
Angang
Group
International
Accounts
Economic & 2,683,805.19 26,838.05
receivable
Trade Co.,
Ltd. — Benxi
Branch
Accounts Ansteel Group
receivable Co., Ltd
Angang
Group
International
Accounts
Economic & 320,787.24 3,207.87 320,787.24 3,207.87
receivable
Trade Co.,
Ltd. — Benxi
Branch
Angang
Accounts Energy
receivable Technology
Co., Ltd.
Ansteel Water
Accounts Technology
receivable (Liaoning)
Co., Ltd.
Accounts Ansteel Cast
receivable Steel Co., Ltd.
Bengang
Group
Accounts International
receivable Economic and
Trade Co.,
Ltd.
Bengang
Accounts Automotive
receivable Transport Co.,
Ltd.
Benxi
Accounts
Northern Iron 9,367,491.47 93,674.91 20,750,535.50 207,505.36
receivable
Industry Co.,
Bengang Steel Plates Co., Ltd. Interim Report 2026
Ltd.
Benxi Beiying
Accounts Iron and Steel
receivable (Group) Co.,
LTD
Benxi
Dongfenghu
Accounts Steel
receivable Resource
Utilization
Co., Ltd.
Benxi Iron
and Steel
Accounts (Group)
receivable Machinery
Manufacturing
Co., LTD
Benxi Iron
and Steel
Accounts
(Group) 864,699.69 16,711.67 594,714.68 59,576.37
receivable
Construction
Co., Ltd
Benxi Iron
and Steel
(Group)
Accounts
Mining 583,118.98 440,763.48 596,201.51 155,166.81
receivable
Construction
Engineering
Co., Ltd.
Benxi Iron
and Steel
(Group)
Accounts Mining
receivable Mineral
Resources
Development
Co., Ltd.
Benxi Iron &
Steel (Group)
Mining &
Accounts
Mineral 299,118.20 2,991.18
receivable
Resources
Development
Co., Ltd.
Benxi Steel
Group Mining
Accounts Liaoyang
receivable Ma'erling
Pelletizing
Co., Ltd.
Benxi Iron
and Steel
(Group)
Accounts
Mining Yanjia 36,864.00 368.64
receivable
Valley
Limestone
Mine Co., Ltd.
Benxi Iron
and Steel
Accounts
(Group) 8,358,416.97 83,584.17 14,459,984.49 144,599.84
receivable
Mining Co.,
LTD
Benxi Iron
Accounts
and Steel 3,893,258.81 38,932.59 7,474,879.91 74,748.80
receivable
(Group)
Bengang Steel Plates Co., Ltd. Interim Report 2026
Thermal
Power
Development
Co., Ltd.
Benxi Iron
and Steel
Accounts (Group)
receivable Equipment
Engineering
Co., LTD
Benxi Iron
and Steel
Accounts (Group)
receivable Industrial
Development
Co., LTD
Benxi Iron
Accounts and Steel
receivable (Group) Co.,
LTD
Benxi Xihu
Metallurgical
Accounts
Furnace 2,061.12 20.61 34,893.27 348.93
receivable
Material Co.,
Ltd.
Benxi New
Accounts Industrial
receivable Development
Co., Ltd.
Delin Land
Port Supply
Accounts
Chain 295,731.38 2,957.31
receivable
Services Co.,
Ltd
Guangzhou
Accounts Ansteel Steel
receivable Processing
Co., Ltd.
Liaoning
Hengtong
Accounts Metallurgical
receivable Equipment
Manufacturing
Co., Ltd.
Liaoning Lide
Accounts Internet of
receivable Things Co.,
Ltd.
Lingyuan Iron
Accounts
& Steel Co., 13,333,236.96 133,332.37
receivable
Ltd.
Pangang
Group
Accounts Jiangyou
receivable Great Wall
Special Steel
Co., Ltd.
MCC South
Accounts Engineering &
receivable Technology
Co., Ltd.
Angang Steel
Processing
Prepayments 317,756.00
and
Distribution
Bengang Steel Plates Co., Ltd. Interim Report 2026
(Dalian) Co.,
Ltd.
MCC South
Engineering &
Prepayments 2,543.81 14,245.92
Technology
Co., Ltd.
Ansteel
Guangzhou
Prepayments 2,606,369.27 561,163.77
Automotive
Steel Co., Ltd.
Angang
Group
International
Prepayments 50,890,155.65 35,372,892.55
Economic &
Trading Co.,
Ltd.
Angang
Group
International
Prepayments Economic & 40,490,602.77 44,117,532.53
Trade Co.,
Ltd. Benxi
Branch
Bengang
Gaoyuan
Prepayments Industrial 11,817.51
Development
Co., Ltd.
Benxi Beiying
Iron and Steel
Prepayments 2,726,760.51 29,562,250.68
(Group) Co.,
LTD
Benxi Iron
and Steel
(Group)
Prepayments 3,171,224.99 3,245,781.89
Equipment
Engineering
Co., LTD
Benxi Iron
and Steel
(Group)
Prepayments 4,305.30
Industrial
Development
Co., LTD
Benxi Steel
Group
Prepayments Information 581,838.17 581,838.17
Automation
Co., Ltd.
Benxi New
Industrial
Prepayments 6,867,713.50 6,867,713.50
Development
Co., Ltd.
Liaoning
Hengtong
Metallurgical
Prepayments 62,100.00
Equipment
Manufacturing
Co., Ltd.
Ansteel
Other Guangzhou
receivables Automotive
Steel Co., Ltd.
Other Ansteel Group 6,706.00 1,341.20 6,706.00 670.6
Bengang Steel Plates Co., Ltd. Interim Report 2026
receivables Co., Ltd
Bengang
Stainless Steel
Other
Cold Rolling 84,855.74 16,971.15 84,855.74 8,485.57
receivables
Dandong Co.,
Ltd.
Bengang
Other
Group Co., 0.06
receivables
Ltd.
Benxi Iron
and Steel
Other
(Group) 250,679.61 250,679.61 250,679.61 250,679.61
receivables
Construction
Co., Ltd
Benxi Gaoxin
Other Drilling Tools
receivables Manufacturing
Co., Ltd.
Benxi Gaoxin
Other Drilling Tools
receivables Manufacturing
Co., Ltd.
Angang
Group
Other International
non-current Economic & 16,469,046.83 8,213,719.14
assets Trade Co.,
Ltd. Benxi
Branch
Benxi Iron
Other and Steel
non-current (Group) 19,602,615.33 19,602,615.33
assets Construction
Co., Ltd
Benxi Iron
and Steel
Other (Group)
non-current Mining 2,210,879.80 2,210,879.80
assets Construction
Engineering
Co., Ltd.
Benxi Iron
and Steel
Other
(Group)
non-current 11,821,685.03 11,975,916.33
Equipment
assets
Engineering
Co., LTD
Benxi Iron
and Steel
Other
(Group)
non-current 562,392.14 562,392.14
Industrial
assets
Development
Co., LTD
Benxi Steel
Other Group
non-current Information 192,822.60 647,592.46
assets Automation
Co., Ltd.
Liaoning
Other Hengtai
non-current Heavy 37,496.00
assets Machinery
Co., Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Related party 30/06/2026 31/12/2025
Account payables Angang Electrical Co., Ltd. 477,905.20 542,993.20
Angang Scrap Resources (Anshan)
Account payables 2,018,855.66
Co., Ltd.
Angang Steel Processing &
Account payables 150,009.87 103,452.29
Distribution (Changchun) Co., Ltd.
Account payables Angang Steel Rope Co., Ltd. 1,046,069.00 535,865.47
Account payables Angang Steel Company Limited 1,801,613.40 417,943.15
Ansteel Group Railway Equipment
Account payables 248,392.08
Checking&Repairing Company
Angang Group Engineering
Account payables 3,392,339.56 221,880.02
Technology Co., Ltd.
Angang Group International
Account payables 629,543.09 590,710.41
Economic & Trade Co., Ltd.
Angang Group International
Account payables Economic & Trade Co., Ltd. Benxi 102,402,289.36 42,087,343.55
Branch
Angang Group Mining
Account payables 15,908,712.40 116,768,098.39
Gongchangling Co., Ltd.
Angang Construction Group Co.,
Account payables 292,120.00
Ltd.
Angang Mining Construction Co.,
Account payables 4,228,401.47 3,244,303.87
Ltd.
Angang Mining Resource
Account payables 41,883,189.06
Utilization (Anshan) Co., Ltd.
Angang Green Resources
Account payables 1,525,088.24
Technology Co., Ltd.
Angang Energy Technology Co.,
Account payables 0.03 296,477.37
Ltd.
Ansteel Automobile Transportation
Account payables 5,342,545.78 4,409,095.38
Co., Ltd.
Angang Industrial Group (Anshan)
Account payables Equipment Operation & 868,600.74
Maintenance Co., Ltd.
Angang Industrial Group
Account payables 496,996.60 3,701,643.08
Metallurgical Machinery Co., Ltd.
Ansteel Shuangsheng (Anshan) Fan
Account payables 24,295.00 24,295.00
Co., Ltd
Ansteel Water Technology
Account payables 41,909,216.36 33,650,652.24
(Liaoning) Co., Ltd.
Account payables Angang Heavy Machinery Co., Ltd. 3,034,715.14 1,760,278.00
Anshan Iron & Steel Metallurgical
Account payables Furnace Material Technology Co., 524,299.30
Ltd.
Anshan Jianbo Engineering Testing
Account payables 187,620.00 187,620.00
Co., Ltd.
Bengang Stainless Steel Cold
Account payables 124,679.90 109,338.10
Rolling Dandong Co., Ltd.
Account payables Bengang Electrical Co., Ltd. 8,570,978.85 6,590,441.02
Bengang Gaoyuan Industrial
Account payables 2,577,003.91 878,009.43
Development Co., Ltd.
Bengang Group Dalian Refractory
Account payables 1,007,742.98 1,007,742.98
Materials Co., Ltd
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Related party 30/06/2026 31/12/2025
Bengang Group International
Account payables 56,469,490.78 55,290,633.89
Economic and Trade Co., Ltd.
Account payables Bengang Group Co., Ltd. 4,688,239.05 4,688,239.05
Bengang Automotive Transport
Account payables 9,690,579.40 8,210,545.30
Co., Ltd.
Benxi Aike Hydraulic Sealing Co.,
Account payables 1,214,644.68 1,854,069.53
Ltd.
Benxi Northern Iron Industry Co.,
Account payables 154,811.36 154,811.36
Ltd.
Benxi Beiying Iron and Steel
Account payables 103,713,014.11 1,722,301.48
(Group) Co., Ltd.
Benxi Dongfenghu Steel Resource
Account payables 3,092,852.22 1,738,248.20
Utilization Co., Ltd.
Benxi Iron and Steel (Group) Real
Account payables 1,000.00 89,735.06
Estate Development Co., Ltd.
Benxi Iron and Steel (Group)
Account payables Engineering Construction 47,806.00 97,970.00
Supervision Co., Ltd.
Benxi Iron & Steel (Group)
Account payables Construction Advanced Decoration 77,530,508.24 61,267,825.22
Co., Ltd.
Benxi Iron and Steel (Group)
Account payables 37,377,560.41 41,328,266.38
Machinery Manufacturing Co., Ltd.
Benxi Steel (Group) Construction
Account payables 264,705.62 264,705.62
High-end Decoration Co., Ltd.
Benxi Iron and Steel (Group)
Account payables 25,274,800.49 30,611,624.28
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Account payables Mining Construction Engineering 14,822,367.99 11,074,458.13
Co., Ltd.
Benxi Steel Group Mining
Account payables Liaoyang Jiajiabao Iron Mine Co., 61,564.16 29,642.17
Ltd.
Benxi Steel Group Mining
Account payables Liaoyang Ma'erling Pelletizing Co., 209,004,375.26 4,166,130.41
Ltd.
Benxi Iron and Steel (Group)
Account payables 83,797,247.68 116,498,925.34
Mining Co., Ltd.
Benxi Iron and Steel (Group)
Account payables Thermal Power Development Co., 3,097.44 200,647.49
Ltd.
Benxi Steel Group Equipment
Account payables 241,391,409.97 176,946,939.95
Engineering Co., Ltd.
Benxi Steel Group Industrial
Account payables 34,430,034.87 45,976,044.04
Development Co., Ltd.
Benxi Iron and Steel (Group)
Account payables 28,931,476.42 27,951,632.92
Information Automation Co., Ltd.
Benxi Iron and Steel (Group) Co.,
Account payables 19,091,003.16 19,131,787.26
LTD
Benxi Gaoxin Drilling Tools
Account payables 0.03 0.03
Manufacturing Co., Ltd.
Benxi Xihu Metallurgical Furnace
Account payables 32,512,530.95 26,922,238.21
Material Co., Ltd.
Benxi Weld Phosphate Overlay
Account payables 37,542.84
Manufacturing Co., Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Related party 30/06/2026 31/12/2025
Benxi New Industrial Development
Account payables 184,926.37 2,564,586.37
Co., Ltd.
Benxi Yuneng Thermal Power Co.,
Account payables 96,832,566.43 57,929,876.17
Ltd.
Account payables DeLin Industrial Products Co., Ltd. 2,680,153.95 32,478,323.08
DeLin Land Port Supply Chain
Account payables 259,100.58 542,696.24
Services Co., Ltd.
Heilongjiang Longmei Mining
Account payables 22,929.68 6,165.02
Group Co., Ltd.
Liaoning Hengtai Heavy
Account payables 14,650,187.24 13,525,100.18
Machinery Co., Ltd.
Liaoning Hengtong Metallurgical
Account payables 18,352,611.40 14,245,092.81
Equipment Manufacturing Co., Ltd.
Liaoning Lide Internet of Things
Account payables 10,790,223.51 14,876,486.42
Co., Ltd.
Liaoning Metallurgical Vocational
Account payables 341,428.00 341,428.00
Technical College
Liaoning Yitong Machinery
Account payables 7,641,419.23 7,836,142.40
Manufacturing Co., Ltd.
Lingyuan Iron & Steel Group Co.,
Account payables 158,290.35
Ltd.
Shenyang Angang International
Account payables 48,244,662.31 52,157,190.42
Trade Co., Ltd.
Shenyang Xiangyu New Materials
Account payables 8,101,101.26 5,321,326.65
Technology Co., Ltd.
Tianjin Bengang Plate Processing
Account payables 351,870.34
& Distribution Co., Ltd.
Angang (Hangzhou) Automotive
Contract liabilities 18,137,548.32 2,025,506.35
Materials Technology Co., Ltd.
Ansteel ThyssenKrupp Automotive
Contract liabilities 2,026,112.60
Steel Co., Ltd.
Angang Steel Processing &
Contract liabilities 381.33
Distribution (Dalian) Co., Ltd.
Angang Steel Processing &
Contract liabilities 443,715.42 427,186.59
Distribution (Changchun) Co., Ltd.
Angang Steel Processing &
Contract liabilities 1,095,745.34 243,332.37
Distribution (Zhengzhou) Co., Ltd.
Angang Steel Distribution (Hefei)
Contract liabilities 970,686.30 1,889,663.02
Co., Ltd.
Angang Steel Distribution (Wuhan)
Contract liabilities 860,550.35 717,523.80
Co., Ltd.
Contract liabilities Angang Steel Company Limited 875,239.95 248,811.04
Contract liabilities Angang Metal Structure Co., Ltd. 17,679,021.32 12,924,085.33
Angang Group International
Contract liabilities 1,671,004.51
Economic & Trade Co., Ltd.
Angang Mining Machinery
Contract liabilities 103,288.68 136.07
Manufacturing Co., Ltd.
Angang Energy Technology Co.,
Contract liabilities 0.02
Ltd.
Angang ShenYang Steel Service
Contract liabilities 318,456.60
Centre Co., Ltd.
Angang Industrial Group
Contract liabilities 22,025.49 12,992.52
Metallurgical Machinery Co., Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Related party 30/06/2026 31/12/2025
Bengang Group Dalian Refractory
Contract liabilities 798,522.40 798,522.40
Materials Co., Ltd
Bengang Group International
Contract liabilities 9,843,810.08 9,843,810.08
Economic and Trade Co., Ltd.
Benxi Beiying Iron and Steel
Contract liabilities 9,015,208.34 8,495,254.41
(Group) Co., Ltd.
Benxi Dongfenghu Steel Resource
Contract liabilities 2,762,280.58 4,038,112.95
Utilization Co., Ltd.
Benxi Steel and Iron
Contract liabilities 190,255.10 190,255.10
(Group)Tengda Co., Ltd.
Benxi Iron and Steel (Group)
Contract liabilities 1,400,072.34 1,035,651.33
Machinery Manufacturing Co., Ltd.
Benxi Iron and Steel (Group)
Contract liabilities 39,135.82 39,135.82
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Contract liabilities 5,012,417.26 4,135,552.29
Mining Co., Ltd.
Benxi Iron and Steel (Group)
Contract liabilities Thermal Power Development Co., 2,783,571.30 49.23
Ltd.
Benxi Steel Group Industrial
Contract liabilities 8,281,190.00 8,514,062.43
Development Co., Ltd.
Benxi Steel (Group) Metallurgical
Contract liabilities 0.01 0.01
Slag Co., Ltd.
Benxi Xihu Metallurgical Furnace
Contract liabilities 20,000.00 20,000.00
Material Co., Ltd.
Benxi Iron & Steel (Group)
Contract liabilities 322,711,703.08 520,753,057.71
Inspection & Testing Co., Ltd.
Benxi Iron & Steel (Group)
Contract liabilities Construction Advanced Decoration 2,539,319.38 5,064,025.37
Co., Ltd.
Liaoning Metallurgical Vocational
Contract liabilities 0.01 0.01
Technical College
Panzhong Yihong Metal Products
Contract liabilities 59,633.93 22,203.73
(Chongqing) Co., Ltd.
Benxi Iron & Steel (Group) Road &
Contract liabilities Bridge Construction Engineering 97,538.30 77,077.62
Co., Ltd.
Tianjin Angang Steel Processing &
Contract liabilities 316,124.86 1,619,646.79
Distribution Co., Ltd.
Tianjin Bengang Plate Processing
Contract liabilities 24,201,532.07 6,576,579.15
& Distribution Co., Ltd.
Changchun FAW Angang Steel
Contract liabilities 7,574,101.63 5,486,624.22
Processing & Distribution Co., Ltd.
Contract liabilities China Ordins Group Co., Ltd. 196,559,036.41 151,750,367.82
Angang (Liaoning) Materials
Other payables 406,080.00 231,080.00
Technology Co., Ltd.
Angang Scrap Resources (Anshan)
Other payables 500,000.00
Co., Ltd.
Angang Engineering, Production,
Other payables Operations & Maintenance 10,000.00 10,000.00
(Anshan) Co., Ltd.
Angang Group Beijing Research
Other payables 1,750,000.00
Institute Co., Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Related party 30/06/2026 31/12/2025
Angang Group Engineering
Other payables 325,830,180.39 328,323,471.32
Technology Co., Ltd.
Angang Group International
Other payables Economic & Trade Co., Ltd. Benxi 9,608,566.29 19,873,739.81
Branch
Angang Group Automation Co.,
Other payables 15,874,000.00 14,175,000.00
Ltd.
Angang Construction Group Co.,
Other payables 41,909,547.82 63,085,702.32
Ltd.
Angang Heavy Machinery Design
Other payables 826,121.54 826,121.54
& Research Institute Co., Ltd.
Other payables Angang Heavy Machinery Co., Ltd. 2,116,712.56 1,040,012.56
Anshan Angang International
Other payables 1,175.00
Travel Agency Co., Ltd.
Anshan Iron & Steel Metallurgical
Other payables Furnace Material Technology Co., 50,000.00 50,000.00
Ltd.
Anshan Jianbo Engineering Testing
Other payables 180,200.00 21,200.00
Co., Ltd.
Beijing Zhongliangang
Other payables 10,000.00
E-commerce Co., Ltd.
Other payables Bengang Electrical Co., Ltd. 4,436,730.79 4,436,730.79
Bengang Gaoyuan Industrial
Other payables 5,275,978.37 6,264,369.57
Development Co., Ltd.
Bengang Group International
Other payables 76,021,728.50 74,855,543.30
Economic and Trade Co., Ltd.
Other payables Bengang Group Co., Ltd. 206,246,824.18 205,343,448.25
Bengang Automotive Transport
Other payables 947,028.25 1,141,388.25
Co., Ltd.
Benxi Aike Hydraulic Sealing Co.,
Other payables 10,000.00 58,590.00
Ltd.
Benxi Beiying Iron and Steel
Other payables 7,875,346.55 7,282,312.51
(Group) Co., Ltd.
Benxi Dongfenghu Steel Resource
Other payables 210,000.00 210,000.00
Utilization Co., Ltd.
Benxi Iron and Steel (Group)
Other payables Engineering Construction 3,603,735.64 4,357,143.03
Supervision Co., Ltd.
Benxi Iron and Steel (Group)
Other payables 52,888,727.90 47,825,817.72
Machinery Manufacturing Co., Ltd.
Benxi Steel (Group) Construction
Other payables 103,738.55 103,738.55
High-end Decoration Co., Ltd.
Benxi Iron and Steel (Group)
Other payables 204,585,745.77 280,668,215.31
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Other payables Mining Construction Engineering 10,969,994.63 6,975,860.52
Co., Ltd.
Benxi Iron & Steel (Group) Road
Other payables and Bridge Construction 318.66 318.66
Engineering Co., Ltd.
Benxi Iron and Steel (Group)
Other payables Thermal Power Development Co., 4,788,431.04 5,939,555.04
Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Related party 30/06/2026 31/12/2025
Benxi Steel Group Equipment
Other payables 300,229,993.02 578,263,720.60
Engineering Co., Ltd.
Benxi Steel Group Industrial
Other payables 1,776,924.93 3,444,007.73
Development Co., Ltd.
Benxi Steel Group Information
Other payables 227,832,452.34 238,531,102.78
Automation Co., Ltd.
Benxi Iron and Steel (Group) Co.,
Other payables 60,451,690.96 40,544,440.05
LTD
Benxi Xihu Metallurgical Furnace
Other payables 100,000.00 100,000.00
Material Co., Ltd.
Benxi New Industrial Development
Other payables 7,432,920.55 6,849,133.66
Co., Ltd.
Other payables DeLin Industrial Products Co., Ltd. 10,359.99
Delin Land Port Supply Chain
Other payables 11,750,000.00 1,250,000.00
Services Co., Ltd
Hongda Engineering Technology
Other payables 1,479.36 1,479.36
(Liaoning) Co., Ltd.
Liaoning Hengtai Heavy
Other payables 9,021,624.47 8,943,894.94
Machinery Co., Ltd.
Liaoning Hengyi Steel Trade
Other payables 11,758,998.02 11,758,998.02
Co., Ltd.
Liaoning Metallurgical Technician
Other payables 20,561.00
College
Benxi Iron & Steel (Group)
Other payables 390,110.00 390,110.00
Metallurgical Slag Co., Ltd.
Liaoning Yitong Machinery
Other payables 1,477,552.52 372,123.61
Manufacturing Co., Ltd.
Pangang Group Engineering
Other payables 594,897.27 517,972.47
Technology Consulting Co., Ltd.
Changchun FAW Angang Steel
Other payables 7,500.00 7,500.00
Processing & Distribution Co., Ltd.
Other payables China Ordins Group Co., Ltd. 850,000.00 700,000.00
MCC Northern Engineering &
Other payables 200,000.00 200,000.00
Technology Co., Ltd.
MCC South Engineering &
Other payables 8,976,046.86 8,826,046.90
Technology Co., Ltd.
MCC-CEI Engineering Technology
Other payables 393,250.01 393,250.01
Co., Ltd.
(7) Centralized Fund Management
Company participates and operates are as follows:
In December 2021, after negotiation with Anshan Iron & Steel Group Finance Company
Limited (hereinafter referred to as Anshan Iron & Steel Finance Company), the “Financial
Services Agreement (Years 2022-2024)” was entered into in order to agree on the terms of the
relevant financial business and the upper limit of the amount of the relevant transactions
between the Company and its subsidiaries and Anshan Iron & Steel Finance Company for the
Bengang Steel Plates Co., Ltd. Interim Report 2026
years 2022, 2023 and 2024. The agreement stipulates that in the next twelve months, the
maximum daily deposit balance of the Company and its holding subsidiaries with Anshan
Iron & Steel Finance Company will be RMB4.5 billion, the maximum credit limit of loans,
bills and other forms of credit will be RMB5.0 billion, and the maximum entrusted loan to be
provided by Anshan Iron & Steel Finance Company to the Company will be RMB2.0 billion.
In December 2024, after negotiation with Anshan Iron & Steel Group Finance Company
Limited (hereinafter referred to as Anshan Iron & Steel Finance Company), the “Financial
Services Agreement (Years 2025-2027)” was entered into in order to agree on the terms of the
relevant financial business and the upper limit of the amount of the relevant transactions
between the Company and its subsidiaries and Anshan Iron & Steel Finance Company for the
years 2025, 2026 and 2027. The agreement stipulates that the maximum daily balance of
funds deposited by Bengang Plates in Angang Financial Company for settlement shall not
exceed RMB 4.5 billion each year, and the interest generated by the deposits shall not exceed
RMB 100 million per year; the amount of loans, bills and other forms of credit provided by
Angang Financial Company to Bengang Plates shall not exceed RMB 5 billion each year, and
the loan interest shall not exceed RMB 250 million per year; the amount of entrusted loans
provided by Angang Financial Company to Bengang Plate Group shall not exceed RMB 2
billion each year, and the entrusted loan interest shall not exceed RMB 100 million per year.
Funds deposited directly into finance companies by the Company without being pooled into
the accounts of the Group's parent company
Items Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Cash at bank and on
hand
Total 180,060,156.04 194,746,442.77
Including: funds
restricted due to
centralized
management of funds
Bengang Steel Plates Co., Ltd. Interim Report 2026
（1） Significant Commitments
(1) According to the Land Use Rights Lease Agreement signed between the Company and
Benxi Steel (Group) Co., Ltd. on April 7, 1997, December 30, 2005, and subsequent
supplementary agreements, the Company leases land from Bengang Group at a rate of
land area is 7,669,068.17 square meters, with an annual rent of 54.67 million yuan.
(2) On August 14, 2019, the Company signed the Building Lease Agreements with Benxi
Steel (Group) Co., Ltd. and Benxi Beiying Steel (Group) Co., Ltd., leasing the buildings
and auxiliary facilities occupied by the 2300 hot rolling mill production line and the 1780
hot rolling mill production line, respectively. The lease term extends until December 31,
and national surtaxes, plus a reasonable profit margin through negotiation. The estimated
maximum annual rent shall not exceed 20 million yuan for the 2300 hot rolling mill and 18
million yuan for the 1780 hot rolling mill. The rent is settled and paid on a monthly basis.
This related-party transaction has been reviewed and approved by the Company’s 8th
Board of Directors at its 4th meeting.
(3) On July 15, 2019, the Company signed Land Lease Agreements with Benxi Steel
(Group) Co., Ltd. and Bengang Group, leasing a total of eight plots of land from both
companies. The leased land areas are 42,920.00 square meters and 728,282.30 square
meters, respectively. The lease term is 20 years, with a rental price of 1.138 yuan per
square meter per month. After the agreement takes effect, every five years, an evaluation
will be conducted based on national laws and policies and the pricing principles stipulated
in Article 2 of the agreement to determine whether the rent needs to be adjusted. This
related-party transaction has been reviewed and approved by the Company’s 8th Board of
Directors at its 3rd meeting.
(4) As of June 30, 2026, the amount of irrevocable letters of credit yet to be fulfilled is
RMB 1.296 billion yuan.
（2） Contingencies
As of June 30, 2026, the Company has no significant contingent matters that require
disclosure.
On July 21, 2026, Bengang Steel Plates Co., Ltd. issued the "Progress Announcement on
Major Asset Exchange and Related-Party Transaction." The Company plans to conduct an
asset exchange with its controlling shareholder, Benxi Steel (Group) Co., Ltd. The proposed
Bengang Steel Plates Co., Ltd. Interim Report 2026
acquired asset is 100% equity interest in Benxi Steel & Iron (Group) Mining Co., Ltd. The
proposed disposed assets include all assets and liabilities of the listed company, except for the
retained assets and liabilities. Any difference in value between the acquired and disposed
assets will be settled in cash by one party to the other. At present, the specific scope of the
transaction assets, transaction price, and other key elements have not been finalized. No
agreement has been signed between the parties, and the transaction plan requires further
evaluation, discussion, and negotiation. Additionally, the transaction must undergo necessary
decision-making and approval procedures in accordance with relevant laws, regulations, and
the Company's Articles of Association. Therefore, there remains significant uncertainty
regarding this transaction.
（1） Correction of previous accounting errors
No prior period accounting errors were corrected using the retrospective restatement
method during this reporting period.
No prior period accounting errors were corrected using the prospective application method
during this reporting period.
（2） Segment information
Due to the fact that the Company's main product is steel, with other products accounting
for a smaller proportion of sales, and the primary production base being located in the
Liaoning region, it is not applicable to disclose segment reporting.
(1) Accounts receivable disclosed by aging
Items 2026/06/30 2025/12/31
Within 1 year (inclusive) 1,082,605,858.04 936,430,278.56
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items 2026/06/30 2025/12/31
Over 5 years 85,573,586.71 97,287,740.83
Subtotal 1,387,231,632.80 1,284,439,194.86
less：bad debt 135,935,077.68 130,549,967.32
Total: 1,251,296,555.12 1,153,889,227.54
Bengang Steel Plates Co., Ltd. Interim Report 2026
(2) Accounts receivable disclosed by method of bad debt provision
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Items Provision Provision
Percentage Book value Percentage Book value
Amount Amount Percentage Amount Amount Percentage
(%) (%)
(%) (%)
Provision
assessed 48,196,244.68 3.47 48,196,244.68 100.00 48,196,244.68 3.75 48,196,244.68 100.00
individually
Provision
assessed by
grouping 1,339,035,388.12 96.53 87,738,833.00 6.55 1,251,296,555.12 1,236,242,950.18 96.25 82,353,722.64 6.66 1,153,889,227.54
credit risk
characteristics
Including: By
Aging 1,072,179,901.31 77.29 87,738,833.00 8.18 984,441,068.31 1,004,714,745.30 78.22 82,353,722.64 8.20 922,361,022.66
portfolio
By Risk-free
portfolio
Total 1,387,231,632.80 100.00 135,935,077.68 9.80 1,251,296,555.12 1,284,439,194.86 100.00 130,549,967.32 10.16 1,153,889,227.54
Bengang Steel Plates Co., Ltd. Interim Report 2026
Significant Provision for bad debts assessed individually：
Bad
Accounts Provision for debts Accounts Provision for
Item Basis for
receivable bad debts ratio provision receivable bad debts
（%）
Benxi Nanfen
Xinhe Ceased
Metallurgical 48,196,244.68 48,196,244.68 100.00 48,196,244.68 48,196,244.68
Co., Ltd. production
Total 48,196,244.68 48,196,244.68 48,196,244.68 48,196,244.68
Accounts receivable tested for impairment by portfolio:
Aging portfolio
Items
Carrying amount Provision for bad debts Bad debts ratio (%)
Within 1 year
(Inclusive)
(Inclusive)
(Inclusive)
(Inclusive)
(Inclusive)
Over 5 years 37,377,342.03 37,377,342.03 3.49
Total 1,072,179,901.31 87,738,833.00 100.00
(3) Provision, reversal or recovery of bad debts of current period.
Change in the Current Period
Reversal
Items 2025/12/31 Write-off or Other 2026/06/30
Provision or
Cancellation Changes
Recovery
Provision
for
accounts 130,549,967.32 8,675,638.17 3,290,527.81 135,935,077.68
receivable
bad debts
Total 130,549,967.32 8,675,638.17 3,290,527.81 135,935,077.68
Bengang Steel Plates Co., Ltd. Interim Report 2026
(4) Accounts Receivable Written Off in the Current Period
Item Write-off Amount
Accounts Receivable Written Off 3,290,527.81
(5) Top five debtors based on accounts receivable and contract assets at the
year-end
Percentage Provision for
of total doubtful debts
Contract Accounts
Accounts Accounts for Accounts
Asset Receivable and
Company Receivable Receivable Receivable
Ending Contract Asset
Ending Balance and and Contract
Balance Ending Balance
Contract Asset Ending
Asset (%) Balance
Angang
Group
International
Economic & 735,761,396.65 735,761,396.65 53.04 7,357,613.97
Trade Co.,
Ltd., Benxi
Branch
Benxi
Bengang
Steel Sales 133,158,167.56 133,158,167.56 9.60
Co., Ltd.
Taicang
CIMC
Container
Manufacture
Co., Ltd.
Liaoning
Northern
Coal
Chemical 51,413,190.75 51,413,190.75 3.71 8,614,347.33
(Group) Co.,
Ltd.
Benxi Nanfen
Xinhe
Metallurgical 48,196,244.68 48,196,244.68 3.47 48,196,244.68
Co., Ltd.
Total 1,020,424,088.14 1,020,424,088.14 73.56 64,687,156.87
Items 2026/06/30 2025/12/31
Interest receivable
Dividends receivable 19,000,000.00 31,000,000.00
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items 2026/06/30 2025/12/31
Other receivables 20,937,108.19 24,731,976.38
Total 39,937,108.19 55,731,976.38
（1）Breakdown of Dividends receivable
Items（or company） 2026/06/30 2025/12/31
Guangzhou Bengang Steel & Iron
Trading Co., Ltd.
Total 19,000,000.00 31,000,000.00
Less: Provision for bad debts
Total 19,000,000.00 31,000,000.00
（2）Significant dividend receivable overdue for more than one year
Whether
Reasons for
impairment has
Company Ending Balance Age uncollected
occurred and the
dividends
basis for judgment
Retained for
Guangzhou Bengang
operational use;
Steel & Iron Trading 19,000,000.00 2-3 years Not Applicable
recovered the
Co., Ltd.
following year.
Total 19,000,000.00
(1) Other receivables disclosed by aging
Items 2026/06/30 2025/12/31
Within 1 year (inclusive) 295,005.96 718,602.46
Over 5 years 69,575,502.44 52,360,468.13
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items 2026/06/30 2025/12/31
Subtotal 79,574,508.36 93,400,220.35
Less: bad debts 58,637,400.17 68,668,243.97
Total: 20,937,108.19 24,731,976.38
Bengang Steel Plates Co., Ltd. Interim Report 2026
(2) Other receivables disclosed by method of bad debt provision
Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Items
Provision Provision Provision
Percentage Book Value Percentage Book Value
Amount Percentage Percentage Percentage
Amount （%） Amount （%）
（%） （%） （%）
Provision
assessed 15,752,285.66 19.80 15,752,285.66 100.00 15,752,285.66 16.87 15,752,285.66 100.00
individually
Provision
assessed by
grouping 63,822,222.70 80.20 42,885,114.51 67.19 20,937,108.19 77,647,934.69 83.13 52,915,958.31 68.15 24,731,976.38
credit risk
characteristics
Including:
Aging 43,355,094.02 54.48 42,885,114.51 98.92 469,979.51 56,380,806.01 60.36 52,915,958.31 93.85 3,464,847.70
portfolio
Risk-free
portfolio
Total 79,574,508.36 100.00 58,637,400.17 73.69 20,937,108.19 93,400,220.35 100.00 68,668,243.97 73.52 24,731,976.38
Bengang Steel Plates Co., Ltd. Interim Report 2026
Significant Provision for bad debts assessed individually：
Bad
Other Provision for Other Provision for
Item debts Basis for
receivables bad debts provision receivables bad debts
ratio（%）
Benxi Steel
(Group)
Third
Construction 12,504,978.59 12,504,978.59 100.00 Bankrupt 12,504,978.59 12,504,978.59
Engineering
Co., Ltd.
Total 12,504,978.59 12,504,978.59 12,504,978.59 12,504,978.59
Other receivables tested for impairment by portfolio:
Portfolio tested by aging
Items Provision for bad
Carrying amount Bad debts ratio (%)
debts
Within 1 year
(inclusive)
Over 5 years 33,356,088.10 33,356,088.10 76.94
Total 43,355,094.02 42,885,114.51 100.00
(3) Provision for Bad Debts
Stage one Stage two Stage three
Lifetime Lifetime
Provision for bad debts expected credit expected credit Total
expected credit
loss (not credit loss (credit
loss
impaired) impaired)
Beginning balance 7,186.02 524,417.59 68,136,640.36 68,668,243.97
Bengang Steel Plates Co., Ltd. Interim Report 2026
Stage one Stage two Stage three
Lifetime Lifetime
Provision for bad debts expected credit expected credit Total
expected credit
loss (not credit loss (credit
loss
impaired) impaired)
Beginning balance in
-23,260.94 -487,566.17 510,827.11
current period
--Transfer to Stage two -23,260.94 23,260.94
--Transfer to Stage
-510,827.11 510,827.11
three
--Reversal to Stage
two
--Reversal to Stage
one
Current period
provision
Current period reversal
Current period
write-back
Current period
-10,124,205.29 -10,124,205.29
write-off
Other changes
Ending balance 2,950.06 29,942.82 58,604,507.29 58,637,400.17
(4) Provision, reversal or recovery of bad debts of current period
Change in the Current Period
Reversal
Items 2025/12/31 Write-off or Other 2026/06/30
Provision or
Cancellation Changes
Recovery
Provision
for other
receivables 68,668,243.97 93,361.49 10,124,205.29 58,637,400.17
bad debts
Total 68,668,243.97 93,361.49 10,124,205.29 58,637,400.17
(5) Written Off in the Current Period
Bengang Steel Plates Co., Ltd. Interim Report 2026
Item Write-off Amount
Other receivables written off 10,124,205.29
(6) Classification by Nature
Nature 2026/06/30 2025/12/31
Intercompany Balances 20,467,128.68 21,267,128.68
Current accounts 59,107,379.68 72,133,091.67
Total 79,574,508.36 93,400,220.35
(7) Top five debtors based on other receivables at the year-end
Accounts Percentage Provision for
Receivable of total doubtful debts
Accounts
Contract Asset and Accounts for Accounts
Receivable
Company Ending Contract Receivable Receivable
Ending
Balance Asset and and Contract
Balance
Ending Contract Asset Ending
Balance Asset (%) Balance
Yantai Bengang
Current over 5
Steel & Iron Sales 20,467,128.68 25.72
account years
Co., Ltd.
Benxi Steel
(Group) Third
Current over 5
Construction 12,504,978.59 15.71 12,504,978.59
account years
Engineering Co.,
Ltd.
Benxi Steel
(Group) First
Current over 5
Construction 3,247,307.07 4.08 3,247,307.07
account years
Engineering Co.,
Ltd.
Liaoning Huawei
Current over 5
Coal Preparation 2,261,360.00 2.84 2,261,360.00
account years
Co., Ltd.
Benxi Ganglian Current
Slag Co., Ltd. account
years
Total 40,397,734.58 50.76 19,930,605.90
Bengang Steel Plates Co., Ltd. Interim Report 2026
Item
Book Value Provision for impairment Carrying amount Book Value Provision for impairment Carrying amount
Investment in Subsidiaries 2,422,543,459.43 2,422,543,459.43 2,422,543,459.43 2,422,543,459.43
Investment in Associates and Joint Ventures 43,269,884.04 43,269,884.04 43,269,884.04 43,269,884.04
Total 2,465,813,343.47 2,465,813,343.47 2,465,813,343.47 2,465,813,343.47
Change in the Current Period
Provision
Beginning Ending
for
balance of
Beginning balance balance of Ending balance of
Provision
Name of entity Additional Reduction in Impairment
for
of investment Provision for Other investment
Investment Investment in the impairment
impairment
Current
Period
Tianjin Bengang Steel Trading Co.,
Ltd.
Benxi Bengang Steel Sales Co., Ltd. 30,000,000.00 30,000,000.00
Guangzhou Bengang Steel Trading 200,000,000.00 200,000,000.00
Bengang Steel Plates Co., Ltd. Interim Report 2026
Change in the Current Period
Provision
Beginning Ending
for balance of
Beginning balance balance of Ending balance of
Provision
Name of entity Additional Reduction in Impairment
for
of investment Provision for Other investment
Investment Investment in the impairment
impairment
Current
Period
Co., Ltd.
North Hengda Logistics Co., Ltd. 169,661,869.19 169,661,869.19
Yantai Bensteel Sales Co., Ltd. 219,100,329.41 219,100,329.41
BenGang POSCO Cold Rolled Sheet
Co., Ltd.
Dalian Benruitong Automotive
Materials Technology Co., Ltd.
Shenyang Bengang Metallurgical
Technology Co., Ltd.
Shanghai Ben Gang Metallurgical
Technology Co., Ltd.
Green Gold (Benxi) Renewable
Resources Co., Ltd.
Bengang Steel Plates Co., Ltd. Interim Report 2026
Change in the Current Period
Provision
Beginning Ending
for balance of
Beginning balance balance of Ending balance of
Provision
Name of entity Additional Reduction in Impairment
for
of investment Provision for Other investment
Investment Investment in the impairment
impairment
Current
Period
Total 2,422,543,459.43 2,422,543,459.43
Increase/decrease
Income or
Impairment loss on Impairment
provision Addition investment Other Provision provision
Investees (Book n of Comprehensive of Cash (Book
as of of recognized Equity of Others as of
value) Investme Income Dividends value)
nt Adjustment or Profit
equity
method
Bengang Steel Plates Co., Ltd. Interim Report 2026
Increase/decrease
Income or
Impairment loss on Impairment
provision Addition investment Other Provision provision
Investees (Book n of Comprehensive of Cash (Book
as of of recognized Equity of Others as of
value) Investme Income Dividends value)
nt Adjustment or Profit
equity
method
Subtotal
Enterprise
Shenyang
Xiangyu New
Material 43,269,884.04 43,269,884.04
Technology Co.,
Ltd.
Subtotal
Total
Bengang Steel Plates Co., Ltd. Interim Report 2026
Current period Previous period
Item
Revenue Cost Revenue Cost
Principal
business
Other
business
Total 22,142,202,489.73 23,400,804,629.82 24,843,114,408.22 25,744,208,800.42
Bengang Steel Plates Co., Ltd. Interim Report 2026
Current period Total
Item
Principal business revenue Principal business revenue Other business revenue Other business costs Revenue Cost
Classified by Time of
Transfer of Goods:
Recognized at a Point
in Time
Recognized over a
Period of Time
Total 21,671,090,703.33 22,935,921,687.19 471,111,786.40 464,882,942.63 22,142,202,489.73 23,400,804,629.82
Classified by
Operating Region:
Domestic 18,222,841,492.11 19,291,667,862.66 471,111,786.40 464,882,942.63
Overseas 3,448,249,211.22 3,644,253,824.53 3,448,249,211.22 3,644,253,824.53
Total 21,671,090,703.33 22,935,921,687.19 471,111,786.40 464,882,942.63 22,142,202,489.73 23,400,804,629.82
Bengang Steel Plates Co., Ltd. Interim Report 2026
Item Current period Previous period
Income from long-term equity investment (cost
method)
Income from long-term equity investment (equity
method)
Gains from Debt Restructuring 43,421.22 6,934.05
Other -10,340,070.73 -17,366,881.57
Total -10,296,649.51 -17,359,947.52
(1) Details of non-recurring profit and loss
Items Amount Notes
Gains or Losses from the Disposal of Non-Current Assets,
including the reversal of previously recognized impairment
-22,011,971.70
provisions.
Government Grants Recognized in Profit or Loss for the Period,
except for those that are closely related to the company’s normal
business operations, comply with national policies, are granted
based on predetermined standards, and have a continuous impact
on the company's profit or loss.
Fair Value Gains or Losses from Financial Assets and Liabilities
Held by Non-Financial Enterprises, as well as disposal gains or
losses from financial assets and liabilities, excluding effective
hedging activities related to the company's normal operations.
Funds Occupation Fees Charged to Non-Financial Enterprises,
recognized in profit or loss for the period.
Gains or Losses from Entrusted Investments or Asset Management
by third parties.
Gains or Losses from Loans Entrusted to External Parties.
Losses from Asset Impairment Due to Force Majeure, such as
natural disasters.
Reversal of Impairment Provisions for Individually Tested
Receivables.
Gains from Acquiring Subsidiaries, Associates, or Joint Ventures,
where the acquisition cost is lower than the acquirer's share of the
investee’s identifiable net assets at fair value.
Net Profit or Loss of a Subsidiary from the Beginning of the Period
to the Merger Date, in a business combination under common
control.
Gains or Losses from Non-Monetary Asset Exchanges.
Gains or Losses from Debt Restructuring.
One-Time Expenses Due to Discontinuation of Business Activities,
Bengang Steel Plates Co., Ltd. Interim Report 2026
Items Amount Notes
such as severance payments for employees.
One-Time Impact on Profit or Loss Due to Changes in Tax,
Accounting, or Other Legal and Regulatory Adjustments.
One-Time Share-Based Payment Expenses Recognized Due to the
Cancellation or Modification of an Equity Incentive Plan.
Gains or Losses from Changes in Fair Value of Payable Employee
Compensation for cash-settled share-based payments after the
vesting date.
Gains or Losses from Fair Value Changes of Investment Properties,
measured using the fair value model.
Gains from Transactions Conducted at Unfair Market Prices.
Gains or Losses from Contingent Events Unrelated to the
Company’s Normal Business Operations.
Management Fee Income from Entrusted Operations.
Other Non-Operating Income and Expenses Not Included in the
-6,552,754.01
Above Categories.
Other Gains or Losses that Meet the Definition of Non-Recurring
Gains and Losses.
Subtotal 24,405,176.67
Income Tax Effect 4,090,301.81
Effect of Non-controlling Interests (After Tax) 1,275,325.80
Total 19,039,549.06
(2) Net asset yield and earnings per share
Weighted Earnings per share (Yuan)
Profit in the Reporting Period average net
Basic EPS Diluted EPS
assets yield (%)
Net profit attributable to ordinary
-27.29 -0.464 -0.464
shareholders
Net profit attributable to ordinary
shareholders after deducting -27.60 -0.469 -0.469
non-recurring profit and loss
Bengang Steel Plates Co., Ltd. Interim Report 2026
(3) Differences between Domestic and Foreign Accounting Standards
Financial Reporting Standards and Chinese accounting standards
□ applicable √ not applicable
accounting standards and Chinese accounting standards
□ applicable √ not applicable
accounting standards. If the data that has been audited by an overseas audit institution is adjusted
for differences, the name of the overseas institution should be indicated.
(4) Others
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