Bengang Steel Plates Co., Ltd.
AUDITORS’ REPORT
AND FINANCIAL STATEMENTS
For the year ended 31 December 2025
PCPAR [2026] No. ZG10394
Bengang Steel Plates Co., Ltd.
AUDITORS’ REPORT AND FINANCIAL STATEMENTS
(From 1 January 2025 to 31 December 2025)
INDEX PAGES
CONSOLIDATED STATEMENT OF FINANCIAL 1-4
POSITION AND STATEMENT OF FINANCIAL
POSITION
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME AND STATEMENT OF COMPREHENSIVE 5-6
INCOME
CONSOLIDATED STATEMENT OF CASH FLOWS 7-8
AND STATEMENT OF CASH FLOWS
CONSOLIDATED STATEMENT OF CHANGES IN 9-12
EQUITY AND STATEMENT OF CHANGES IN EQUITY
NOTES TO THE FINANCIAL STATEMENTS 1-182
Auditors’ Report
PCPAR [2025] No. ZG10394
To All Shareholders of Bengang Steel Plates Co., Ltd.:
Auditor’s Opinion
We have audited the accompanying financial statements of Bengang Steel Plates Co., Ltd.
(hereinafter referred to as “the Company”) which comprise the consolidated statement of
financial position and statement of financial position as at 31 December 2025, the
consolidated statement of comprehensive income and statement of comprehensive
income, the consolidated statement of changes in equity and statement of changes in
equity, the consolidated statement of cash flows and statement of cash flows for the year
then ended, and notes to the financial statements.
In our opinion, the financial statements present fairly, in all material respects, the
consolidated financial position and financial position of the Company as at 31 December
consolidated cash flows and cash flows of the Company for the year then ended in
accordance with the requirements of Accounting Standards for Business Enterprises.
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified
Public Accountants. Our responsibilities under those standards are further described in
the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Company in accordance with the China Code of Ethics
for Certified Public Accountants No. 1 Independence Requirements for Audit and
Review Engagements, and we have fulfilled our other ethical responsibilities in
accordance with China Code of Ethics for Certified Public Accountants. We have
complied with the independence requirements applicable to audits of public interest
entities. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Key Audit Matters
The key audit matters are matters that we consider to be the most important for the audit
of the current financial statements based on professional judgment. The response to these
matters is based on the overall audit of the financial statements and the formation of audit
opinions. We do not express a separate opinion on these matters.
We have identified the following items as key audit matters that need to be disclosed in
the audit report.
Key Audit Matters Audit Procedure
Please refer to the Note (20) under “3. The main audit procedures we performed are
Auditors’ Report Page 1
Significant accounting policies and accounting as follows:
estimates” and Note (30) under “5. Notes to (1) Understand and test the key internal
consolidated financial statements”. controls related to revenue, and evaluate
whether the relevant controls are appropriate
In 2025, the amount of operating income and effectively implemented; (2) We
recognized in the consolidated financial performed analytical procedures on revenue,
statements is RMB 46,392.25 million. Since including comparison of the gross profit of the
revenue is a key performance indicator of the current period of revenue of major products
Company, the management of the Company with that of the previous period, analysis of
may have a significant risk of misstatement in revenue fluctuations, and checking whether
revenue recognition. Therefore, we consider there are any abnormalities;
revenue recognition as a key audit matter. (3) Obtain the detailed sales records for the
current year, select samples of revenue
transactions recorded in the current year,
check the supporting documents such as sales
contracts, invoices, yard sheets, customs
declarations, and evaluate whether the
relevant revenue recognition complies with
the company's accounting policies;
(4) Select samples to check sales contracts,
identify the contract terms and conditions
related to the transfer of control of goods, and
evaluate whether the timing of revenue
recognition of the Company complies with the
requirements of Accounting Standards for
Business Enterprises;
(5) In combination with the accounts
receivable audit procedures, perform
confirmation procedures with sample
customers for sales revenue during the
reporting period;
(6) Check the sales to related parties, review
the fairness of the transaction prices of related
parties, and perform confirmation procedures
with related party customers;
(7) Check whether information related to
revenue has been properly reported and
Auditors’ Report Page 2
disclosed in the financial statements.
Please refer to the Note （ 12 ） under “3. The main audit procedures we performed are
Significant accounting policies and accounting as follows:
estimates” and Note (7) under “5. Notes to (1) Evaluated the design and operation of
consolidated financial statements”. internal control related to the impairment of
inventory;
As at December 31,2025, the carrying amount (2) Supervise stocktaking and check the
of inventory in consolidated statement is RMB quantity and status of inventory, especially the
RMB 350.55 million, the book value of (3) Obtain the calculation schedule of the
inventory is RMB 6,369.19 million. Inventory impairment of inventory. Check whether it
is measured at the lower of cost and net follows the requirements of related accounting
realizable value. The sufficiency of standards of the Company, check the changes
impairment for inventory will exert a great in the inventory impairment provision made in
impact on the financial statement. previous years, etc., and analyze whether the
inventory impairment provision is sufficient;
The net realizable value of finished goods is (4) Implement net realizable value testing of
determined by deducting the estimated selling inventories and review the method of making
expenses and related taxes from the estimated provisions for inventory impairment, and test
selling price. the integrity of the reports and data on which
it is based.
Management estimates the expected selling
price based on the condition of inventory. It
involves significant management judgement in
the estimation process.
As at December 31, 2025, the carrying
amount of inventory was significant and
involves the estimation of net realizable value.
Therefore, we identified it as a key audit
matter.
Other information
The management of the Company is responsible for the other information. The other
information comprises information of the Company's annual report for the period of 2025
but excludes the financial statements and our auditor's report.
Auditors’ Report Page 3
Our opinion on the financial statements does not cover the other information and we do
not and will not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the
other information identified above and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge
obtained in the audit if there appears to be a material misstatement.
Based on the work we have performed, if we determine that there is a material
misstatement of other information, we should report that fact. In this regard, we have
nothing to report.
Responsibilities of Management and Those Charged with Governance for the
Financial Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with requirements of Accounting Standards for Business
Enterprises, and for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management of the Company is responsible for
assessing the Company's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
Those charged with governance are responsible for supervising the Company's financial
reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted in accordance with China
Standards on Auditing for Certified Public Accountants will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with accordance with Chinese Certified Public
Accountants Auditing Standards, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances.
Auditors’ Report Page 4
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
(4) Conclude on the appropriateness of management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on Bengang Steel
Plate’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures
in the financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information
of entities or business activities within the Company to express an opinion on the
financial statements. We are responsible for guiding, supervising and executing the group
audit and assume full responsibility for the audit opinion.
We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide a statement to those charged with governance on compliance with the
ethical requirements associated with independence and communicate with those charged
with governance all relationships and other matters that may reasonably be considered to
affect our independence, and related precautions (if applicable).
From the matters communicated with those charged with governance, we determine
those matters that were of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditor's report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
BDO CHINA SHU LUN PAN CERTIFIED Certified Public Accountants of China
PUBLIC ACCOUNTANTS LLP (Engagement Partner)
Certified Public Accountants of China
Shanghai, the People’s Republic of China 2 April 2026
This auditor’s report and the accompanying notes to the financial statement are English translation of the
Chinese auditors’ report. In case of doubt as to the presentation of these documents, the Chinese version shall
prevail.
Auditors’ Report Page 5
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Assets Notes Dec 31, 2025 Dec 31, 2024
Current assets
Cash at bank and on hand 5 (1) 1,127,390,675.15 2,453,888,470.48
Financial assets held for trading
Derivative financial assets
Notes receivable 5 (2) 399,759,776.83 607,279,481.42
Accounts receivable 5 (3) 1,178,780,456.77 501,484,081.73
Accounts receivable financing 5 (4) 331,321,177.27 64,399,942.70
Prepayments 5 (5) 314,825,894.06 391,823,135.87
Premium receivable
Reinsurance accounts receivable
Receivable deposit for reinsurance contract
Other receivables 5 (6) 4,034,061.03 149,015,138.26
Redemptory financial assets for sale
Inventories 5 (7) 6,369,194,886.12 7,333,084,694.27
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 5 (8) 450,271,362.93 437,081,260.66
Total current assets 10,175,578,290.16 11,938,056,205.39
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 45,413,221.72
Other equity instrument investments 5 (10) 890,420,831.77 933,426,254.63
Other non-current financial assets
Investment property
Fixed assets 5 (11) 28,412,673,622.89 26,426,320,453.57
Construction in progress 5 (12) 3,074,712,066.38 3,934,442,501.50
Productive biological assets
Oil and gas assets
Right-of-use assets 5 (13) 2,607,155,393.90 1,685,925,710.14
Intangible assets 5 (14) 383,659,012.77 394,780,068.68
Development expenditure 6 (2) 3,700,000.00
Goodwill
Long-term deferred expenses
Deferred tax assets 5 (15) 124,211,917.95 371,234,449.79
Other non-current assets 5 (16) 54,632,516.72 86,297,275.16
Total non-current assets 35,594,435,246.42 33,877,839,935.19
Total assets 45,770,013,536.58 45,815,896,140.58
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 1
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued)
As at 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Liabilities and equities Notes Dec 31,2025 Dec 31, 2024
Current Liabilities
Short-term loans 5 (18) 333,660,470.12 371,055,490.50
Loan from central bank
Loan from other banks
Financial liability held for trading
Derivative financial liabilities
Notes payable 5 (19) 12,962,287,642.88 12,982,703,669.86
Accounts payable 5 (20) 2,667,236,412.66 2,761,759,439.36
Advance from customers 5 (21) 49,541.35 59,327.21
Contract liabilities 5 (22) 2,736,697,947.25 2,908,598,425.73
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) 2,586,883.29 1,773,068.35
Current tax liabilities 5 (24) 59,857,286.81 54,070,097.83
Other payables 5 (25) 2,775,544,196.11 2,354,694,200.01
Handling charges and commission payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 5 (26) 6,940,934,862.49 1,030,502,916.66
Other current liabilities 5 (27) 275,281,765.24 328,981,058.74
Total current liabilities 28,754,137,008.20 22,794,197,694.25
Non-current liabilities
Provision for insurance contract
Long-term loans 5 (28) 6,014,469,758.11 2,891,941,462.40
Bonds payable 5 (29) 5,569,899,459.53
Including: Preferred stock
Perpetual bond
Lease liabilities 5 (30) 2,239,436,105.64 1,633,911,586.51
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 5 (31) 158,199,416.58 173,919,087.47
Deferred tax liabilities 5 (15) 252,893,530.26
Other non-current liabilities
Total non-current liabilities 8,412,105,280.33 10,522,565,126.17
Total liabilities 37,166,242,288.53 33,316,762,820.42
Shareholders' equity:
Share capital 5 (32) 4,108,236,253.00 4,108,228,157.00
Other equity instruments 5 (33) 947,843,680.82 947,850,195.03
Including: Preferred stock
Perpetual bond
Capital reserves 5 (34) 13,252,955,837.48 13,225,632,166.95
Less: treasury shares
Other comprehensive income 5 (35) -129,961,806.05 -93,407,196.62
Special reserves 5 (36) 881,502.23 809,649.65
Surplus reserves 5 (37) 1,195,116,522.37 1,195,116,522.37
General risk reserve
Undistributed profits 5 (38) -11,439,289,982.02 -7,497,011,632.90
Total equity attributable to equity holders of the parent company 7,935,782,007.83 11,887,217,861.48
Non-controlling interests 667,989,240.22 611,915,458.68
Total shareholder's equity 8,603,771,248.05 12,499,133,320.16
Total of liabilities and owners’ equity 45,770,013,536.58 45,815,896,140.58
The notes to the financial statements attached form part of these financial statements.
Legal Representative： Chief Financial Officer: Chief Accountant:
Financial Statements Page 2
BENGANG STEEL PLATES CO., LTD.
STATEMENT OF FINANCIAL POSITION
As at 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Assets Notes Dec 31, 2025 Dec 31, 2024
Current assets
Cash at bank and on hand 969,348,936.91 1,928,597,252.93
Financial assets held for trading
Derivative financial assets
Notes receivable 288,032,009.55 879,167,997.23
Accounts receivable 15 (1) 1,153,889,227.54 899,413,301.62
Accounts receivable financing 334,034,656.97 67,033,501.52
Prepayments 274,799,041.59 552,668,067.77
Other receivables 15 (2) 55,731,976.38 399,809,663.60
Inventories 5,607,342,964.33 6,510,049,399.94
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 417,408,930.19 401,232,007.64
Total current assets 9,100,587,743.46 11,637,971,192.25
Non-current assets
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 15 (3) 2,465,813,343.47 2,437,356,681.15
Other equity instrument investments 890,420,831.77 933,426,254.63
Other non-current financial assets
Investment property
Fixed assets 27,265,548,170.25 25,361,023,150.98
Construction in progress 2,965,847,309.52 3,813,480,844.57
Productive biological assets
Oil and gas assets
Right-of-use assets 2,607,155,393.90 1,685,925,710.14
Intangible assets 199,952,774.53 206,105,870.50
Including: data assets
Development expenditure 3,700,000.00
Including: data assets
Goodwill
Long-term deferred expenses
Deferred tax assets 122,987,010.55 370,213,799.88
Other non-current assets 53,948,721.72 85,556,957.68
Total non-current assets 36,575,373,555.71 34,893,089,269.53
Total assets 45,675,961,299.17 46,531,060,461.78
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 3
BENGANG STEEL PLATES CO., LTD.
STATEMENT OF FINANCIAL POSITION (Continued)
As at 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Liabilities and shareholders' equities Notes Dec 31, 2025 Dec 31, 2024
Current liabilities
Short-term loans 333,660,470.12 371,055,490.50
Financial liability held for trading
Derivative financial liabilities
Notes payable 10,945,673,752.38 11,915,812,506.01
Accounts payable 2,726,855,682.41 2,881,087,998.48
Prepayments
Contract liabilities 6,807,101,441.62 6,637,545,634.05
Employee benefits payable 631,573.72 354,432.32
Current tax liabilities 31,524,009.09 28,685,832.43
Other payables 2,619,633,120.59 2,206,387,975.74
Liabilities held for sale
Non-current liabilities due within one year 6,940,934,862.49 1,030,502,916.66
Other current liabilities 58,382,271.92 61,868,166.75
Total current liabilities 30,464,397,184.34 25,133,300,952.94
Non-current liabilities
Long term loans 6,014,469,758.11 2,891,941,462.40
Bonds payable 5,569,899,459.53
Including: Preferred stock
Perpetual bond
Lease liabilities 2,239,436,105.64 1,633,911,586.51
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 158,199,416.58 154,871,615.47
Deferred tax liabilities 252,893,530.26
Other non-current liabilities
Total non-current liabilities 8,412,105,280.33 10,503,517,654.17
Total liabilities 38,876,502,464.67 35,636,818,607.11
Shareholder’s equity:
Share capital 4,108,236,253.00 4,108,228,157.00
Other equity instruments 947,843,680.82 947,850,195.03
Including: Preferred stock
Perpetual bond
Capital reserves 12,852,466,024.55 12,825,142,354.02
Less: Treasury shares
Other comprehensive income -129,961,806.05 -93,407,196.62
Special reserves 17,561.83 9,276.81
Surplus reserves 1,195,116,522.37 1,195,116,522.37
Undistributed Profits -12,174,259,402.02 -8,088,697,453.94
Total shareholder's equity 6,799,458,834.50 10,894,241,854.67
Total liabilities and shareholder’s equity 45,675,961,299.17 46,531,060,461.78
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 4
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
Including: Operating income 5 (39) 46,392,250,494.48 51,266,361,501.22
Interest income
Premium earned
Income from handling charges and commission
Including: Operating cost 5 (39) 48,441,024,611.38 54,693,756,805.43
Interest expense
Expenditure for handling charges and commission
Surrender value
Net expenditure for compensation
Net provision for insurance contract appropriated
Bonus payment for policy
Reinsurance premium
Tax and surcharges 5 (40) 205,223,238.29 203,043,367.36
Selling and distribution expenses 5 (41) 136,838,793.14 142,638,617.77
General and administrative expenses 5 (42) 672,219,542.49 702,788,411.83
Research and development expenses 5 (43) 90,978,954.16 86,415,509.29
Financial expenses 5 (44) 428,002,130.04 240,331,316.82
Including: Interest expense 394,193,802.90 384,713,981.73
Interest income 32,518,614.84 43,019,766.05
Add: Other income 5 (45) 164,261,547.31 200,140,947.91
Income on investment（“-” for loss） 5 (46) -10,956,792.93 -42,967,621.92
Including: Income from associates and joint ventures -2,143,337.68 -1,497,124.69
Income from derecognition of financial assets measured at amortized cost -3,911,446.37 -60,611.63
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) -19,654,328.59 50,143,005.20
Asset impairment loss （“-” for loss） 5 (48) -303,933,278.79 -278,486,334.42
Assets disposal gains（“-” for loss） 5 (49) 3,008.85 13,020,778.49
Add: Non-operating income 5 (50) 23,612,863.00 45,789,122.58
Less: Non-operating expenses 5 (51) 63,205,937.35 54,707,998.74
Less: Income tax expenses 5 (52) 63,505,290.33 90,436,789.08
Other comprehensive income attributable to owners of the parent company after tax -36,554,609.43 -43,035,854.74
profit or loss
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 -3,978,832,958.55 -5,080,307,253.02
Total comprehensive income attributable to non-controlling shareholders 86,863,365.27 77,153,981.02
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 5
BENGANG STEEL PLATES CO., LTD.
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
Less: Operating cost 15 (4) 49,052,494,863.75 55,850,177,739.34
Tax and surcharges 154,117,521.94 155,742,776.69
Selling and distribution expenses 206,212,620.79 175,678,966.90
General and administrative expenses 635,001,972.87 666,227,276.41
Research and development expenses 93,809,142.84 86,415,509.29
Financial expenses 427,387,218.08 260,257,651.32
Including: Interest expense 394,193,802.90 384,713,981.73
Interest income 28,799,233.97 36,704,884.79
Add: Other income 85,492,365.82 129,520,303.41
Income on investment（“-” for loss） 15 (5) 172,333,768.77 120,893,779.91
Including: Income from associates and joint ventures -2,143,337.68 -1,497,124.69
Income from derecognition of financial assets
-1,112,684.35 -60,611.63
measured at amortized cost
Net exposure hedge income（“-” for loss）
Gains from change of fair value （“-” for loss）
Credit impairment loss（“-” for loss） -41,147,890.54 30,265,261.74
Assets impairment loss（“-” for loss） -303,933,278.79 -278,486,334.42
Assets disposal gains（“-” for loss） 3,008.85 13,017,822.58
Add: Non-operating income 23,020,727.52 45,130,689.39
Less: Non-operating expenses 59,957,081.62 42,889,041.92
Less: Income tax expenses 784,072.50 7,932,735.25
-36,554,609.43 -43,035,854.74
gains/losses
reclassified into profit or loss
loss.
can be reclassified into profit or loss
income
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 6
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
Cash received from sale of goods or rendering of services 50,026,889,989.74 55,987,587,183.40
Net increase of customers' deposit and interbank deposit
Net increase of loan from central bank
Net increase of loans from other financial institutions
Cash received for premium of original insurance contract
Net cash received for reinsurance business
Net increase of deposit and investment of the insured
Cash from receiving interest, handling charge and commission
Net increase of loans from borrowing funds
Net increase of fund for repurchase business
Net cash received from traded securities
Tax rebate received 80,766,690.15 124,001,236.84
Other cash received relating to operating activities 5 (53) 211,451,415.77 243,342,089.30
Subtotal of cash inflows from operating activities 50,319,108,095.66 56,354,930,509.54
Cash paid for goods and services 49,271,145,124.19 52,271,670,593.20
Net increase of customer's loan and advances
Net increase of deposit in central bank and interbank deposit
Cash for payment of compensation for original insurance contract
Net increase in capital lent
Cash for payment of interest, handling charge and commission
Cash for payment of policy bonus
Cash paid to and on behalf of employees 2,052,215,880.51 2,136,471,168.09
Cash paid for all types of taxes 368,535,776.73 440,396,205.59
Other cash paid relating to operating activities 5 (53) 416,028,082.03 406,104,548.41
Subtotal of cash outflows from operating activities 52,107,924,863.46 55,254,642,515.29
Net cash flows from operating activities -1,788,816,767.80 1,100,287,994.25
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 subsidiary and other operating units
Other cash paid relating to investing activities
Subtotal of cash inflows from investing activities 87,183,020.00 137,069,554.37
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 increase of mortgage loan
Net cash received from subsidiary and other operating unit
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities 2,275,737,062.01 975,204,696.55
Net cash flows from investing activities -2,188,554,042.01 -838,135,142.18
Proceeds from investment 29,400,000.00
Including: Proceeds from investment of non-controlling shareholders of subsidiary 29,400,000.00
Proceeds from borrowings 7,139,897,823.71 3,765,000,000.00
Other proceeds relating to financing activities 5 (53) 3,237,423,685.03 3,808,123,889.76
Subtotal of cash inflows from financing activities 10,406,721,508.74 7,573,123,889.76
Cash repayments of borrowings 4,065,389,832.66 2,283,590,268.00
Cash payments for distribution of dividends, profit or interest expenses 481,435,722.54 274,024,906.84
Including: Cash paid to non-controlling shareholders as dividend and profit by
subsidiaries
Other cash payments relating to financing activities 5 (53) 3,190,656,112.46 4,940,069,284.22
Subtotal of cash outflows from financing activities 7,737,481,667.66 7,497,684,459.06
Net cash flows from financing activities 2,669,239,841.08 75,439,430.70
Add: Cash and cash equivalents at the beginning of the period 5 (54) 1,590,205,218.91 1,199,685,408.38
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 7
BENGANG STEEL PLATES CO., LTD.
STATEMENT OF CASH FLOWS
For the year ended 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Items Notes Current period Previous period
Cash received from sale of goods or rendering of services 48,170,024,193.40 55,337,530,940.66
Tax rebate received 80,766,690.15 117,007,166.59
Other cash received relating to operating activities 687,293,202.21 214,590,835.88
Subtotal of cash inflows from operating activities 48,938,084,085.76 55,669,128,943.13
Cash paid for goods and services 47,784,396,245.98 52,556,437,895.34
Cash paid to and on behalf of employees 1,897,848,930.90 1,974,094,315.49
Cash paid for all types of taxes 229,932,897.98 280,573,222.50
Other cash paid relating to operating activities 840,031,988.11 365,386,433.69
Subtotal of cash outflows from operating activities 50,752,210,062.97 55,176,491,867.02
Net cash flows from operating activities -1,814,125,977.21 492,637,076.11
Cash received from disposal of investments
Cash received from return on investments 374,456,351.38 199,000,000.00
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets
Net cash received from disposal of subsidiary and other
operating units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 461,637,451.38 336,064,700.00
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 subsidiary and other operating
unit
Other cash paid relating to investing activities
Subtotal of cash outflows paid for investing activities 2,289,125,334.45 966,576,178.20
Net cash flows from investing activities -1,827,487,883.07 -630,511,478.20
Proceeds from investment
Cash received from borrowings 7,139,897,823.71 3,765,000,000.00
Other cash received relating to financing activities 3,237,423,685.03 3,808,123,889.76
Subtotal of cash inflows from financing activities 10,377,321,508.74 7,573,123,889.76
Cash repayments of borrowings 4,065,389,832.66 2,283,590,268.00
Cash payments for distribution of dividends, profit or interest 372,177,810.01 274,024,906.84
Other cash payments relating to financing activities 3,190,656,112.46 4,940,069,284.22
Subtotal of cash outflows from financing activities 7,628,223,755.13 7,497,684,459.06
Net cash flows from financing activities 2,749,097,753.61 75,439,430.70
equivalents
Add: Cash and cash equivalents at the beginning of the period 1,064,914,001.36 1,074,502,887.78
The notes to the financial statements attached form part of these financial statements.
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 8
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2025
(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 29,400,000.00 29,400,000.00
(2) Capital input by the holder of other equity
instruments
(3) Share-based payment attributable to
owners' equity
(4) Others 27,300,000.00 27,300,000.00 27,300,000.00
(1) Appropriation to surplus reserves
(2) Appropriation to general risk reserve
(3) Profit distribution to shareholders -60,185,989.14 -60,185,989.14
(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 64,166,383.03 64,166,383.03 4,513,102.89 68,679,485.92
(2) Use of special reserves 64,094,530.45 64,094,530.45 4,516,697.48 68,611,227.93
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 9
BENGANG STEEL PLATES CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continued)
For the year ended 31 December 2025
(Expressed in Renminbi unless otherwise indicated)
Previous period
Owner's equity attributable to parent company
Items Other equity instruments Other General Non-controlling Total of owner's
Less: Treasury Undistributed
Share capital Preference Perpetual Capital reserves comprehensive Special reserves Surplus reserves risk Subtotal interest equity
Others shares profit
shares bond 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
(2) Capital input by the holder of other equity 8,855.00 -7,939.13 25,840.89 26,756.76 26,756.76
instruments
(3) Share-based payment attributable to owners'
equity
(4) Others -196,619,544.86 -196,619,544.86 -196,619,544.86
(1) Appropriation to surplus reserves
(2) Appropriation to general risk reserve
(3) Profit distribution to shareholders -45,054,305.70 -45,054,305.70 -54,632,794.65 -99,687,100.35
(4) Others
(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 72,180,947.90 72,180,947.90 5,182,353.19 77,363,301.09
(2) Use of special reserves 71,534,353.29 71,534,353.29 4,858,367.48 76,392,720.77
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 10
BENGANG STEEL PLATES CO., LTD.
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2025
(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 8,096.00 -6,514.21 23,670.53 25,252.32
(3) Share-based payment attributable to shareholders' equity
(4) Others 27,300,000.00 27,300,000.00
(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 50,656,268.19 50,656,268.19
(2) Use of special reserves 50,647,983.17 50,647,983.17
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 11
BENGANG STEEL PLATES CO., LTD.
STATEMENT OF CHANGES IN EQUITY (Continued)
For the year ended 31 December 2025
(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 8,855.00 -7,939.13 25,840.89 26,756.76
(3) Share-based payment attributable to shareholders' equity
(4) Others -26,957,675.67 -26,957,675.67
(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 57,316,980.35 57,316,980.35
(2) Use of special reserves 57,311,384.70 57,311,384.70
The notes to the financial statements attached form part of these financial statements
Legal Representative: Chief Financial Officer: Chief Accountant:
Financial Statements Page 12
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Bengang Steel Plates Co., Ltd.
Notes to the financial statements
For the year ended 31 December 2025
(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
Notes to the financial statements Page 1
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
issued by China Securities Regulatory Committee, and were exempted for the liability of
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 31 December 2025, the capital shares were totaled to 4,108,236,253.00 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: Huang Zuowei.
The parent company of Bengang Steel Plates Co., Ltd is Benxi Steel and Iron (Group) Co.,
Ltd. and the actual controller is Ansteel Group Co., Ltd..
Bengang Steel Plates Co., Ltd. belongs to ferrous metal smelting and rolling processing
industry and is mainly involved in producing and trading of ferrous metal products.
Notes to the financial statements Page 2
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
The financial statements have been approved for reporting by the board of directors of the
Company on 2 April 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.
Notes to the financial statements Page 3
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(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
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.
Notes to the financial statements Page 4
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
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
Notes to the financial statements Page 5
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
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.
Notes to the financial statements Page 6
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 (13) Long-term equity investments under “ 3. Significant accounting
policies and accounting estimates”.
(8) Recognition of cash and cash equivalents
The term “cash” refers to the cash on hand and the unrestricted deposit. And the term “cash
equivalents” refers to short-term (maturing within three months from acquisition) 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
Notes to the financial statements Page 7
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
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
Notes to the financial statements Page 8
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
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
Notes to the financial statements Page 9
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
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.
Notes to the financial statements Page 10
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(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.
When the financial liabilities are derecognized, the difference between the price obtained and.
the carrying value shall be recognised in profit and loss.
Notes to the financial statements Page 11
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 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
Notes to the financial statements Page 12
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(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
Notes to the financial statements Page 13
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
recognition has 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.
Notes to the financial statements Page 14
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
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.
Notes to the financial statements Page 15
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Basis for determining
Portfolios Measurement methods for ECL
portfolios
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.
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.
Notes to the financial statements Page 16
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
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
Notes to the financial statements Page 17
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
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
Notes to the financial statements Page 18
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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.
(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
Notes to the financial statements Page 19
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
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.
(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
Notes to the financial statements Page 20
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(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.
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
Notes to the financial statements Page 21
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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.
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
Notes to the financial statements Page 22
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
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.
Notes to the financial statements Page 23
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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.
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.
Notes to the financial statements Page 24
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(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”
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
Notes to the financial statements Page 25
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
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.
Notes to the financial statements Page 26
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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.
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
Notes to the financial statements Page 27
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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.
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.
Notes to the financial statements Page 28
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
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.
Notes to the financial statements Page 29
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(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;
(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
Notes to the financial statements Page 30
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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.
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.
Notes to the financial statements Page 31
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 caring 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
Notes to the financial statements Page 32
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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.
Notes to the financial statements Page 33
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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.
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
Notes to the financial statements Page 34
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
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
Notes to the financial statements Page 35
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
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;
Notes to the financial statements Page 36
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
• 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
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
Notes to the financial statements Page 37
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
loss relating to the partial or full termination of the lease; or by making a corresponding
adjustment to the right-of-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
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;
Notes to the financial statements Page 38
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
• 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 III. (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
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
Notes to the financial statements Page 39
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 "III.
(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 III. (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.
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
Notes to the financial statements Page 40
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 “III. (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
probability and the default loss rate. When determining the expected credit loss rate, the
Notes to the financial statements Page 41
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
Notes to the financial statements Page 42
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
The company considers accounts receivables exceeding RMB 5 million as
Significant 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.
Notes to the financial statements Page 43
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Materiality Criteria
Significant The company regards the projects with the highest amount transferred to fixed
Construction in assets or the top 10 projects with the final balance of the current period and
Progress 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 ending
Ventures or Associated balance of more than RMB 100 million as important joint ventures or
Companies associated companies.
Subsidiaries whose total assets/total revenue/total profit exceed 15% of the
Significant Subsidiaries group's total assets/total revenue/total profit are considered as significant
subsidiaries.
(32) Change of significant accounting policy and accounting estimate
Implementing the Provisions of the "Q&A on the Implementation of Accounting
Standards for Financial Instruments" Regarding Accounting Treatment for Standard
Warehouse Receipt Trading
On July 8, 2025, the Ministry of Finance issued Implementation Questions and Answers
regarding the Accounting Treatment of Standard Warehouse Receipt Trading. It explicitly
stipulates that, in accordance with the Accounting Standards for Financial Instruments:
Recognition and Measurement, if an enterprise frequently enters into contracts for the
purchase and sale of standard warehouse receipts on a futures exchange—with the aim of
earning price spreads and without taking physical delivery of the commodities underlying
the receipts—this typically indicates that the enterprise has an established practice of
reselling the subject matter of the contract shortly after receipt in order to profit from
short-term price fluctuations. Consequently, the enterprise shall treat such contracts for the
purchase and sale of standard warehouse receipts as financial instruments and apply the
accounting treatment prescribed by the Accounting Standards for Financial Instruments:
Recognition and Measurement. If an enterprise resells standard warehouse receipts shortly
after acquiring them pursuant to the aforementioned contracts, it shall not recognize sales
revenue; instead, the difference between the consideration received and the carrying amount
of the sold warehouse receipts shall be recorded as investment income. Furthermore, if the
Notes to the financial statements Page 44
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
enterprise holds unsold standard warehouse receipts at the end of a reporting period, these
holdings shall be presented as "other current assets."
In accordance with the requirements of the Notice on Strictly Implementing Enterprise
Accounting Standards and Effectively Conducting Enterprise Annual Reporting for 2025
(Caikuai [2025] No. 33), if an enterprise adjusts its accounting treatment methods as a
result of implementing the aforementioned regulations regarding standard warehouse
receipts, it shall adjust the information for comparable periods presented in its financial
statements. This policy has no impact on the Company.
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) services revenue in accordance with the 6%, 9%, 13%
tax laws after subtracting the deductible
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
Notes to the financial statements Page 45
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Name of the taxpayers Income tax rate (%)
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
Value-Added Tax Preferential Terms for Comprehensive Resource Utilization Products and
Services" and enjoy the value-added tax refund 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.
Notes to the financial statements Page 46
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(1) Cash at bank and on hand
Items 2025/12/31 2024/12/31
Cash on hand
Cash at bank 92,723,863.54 363,006,448.43
Other monetary funds 839,920,368.84 863,683,251.57
Funds placed in a finance company account 194,746,442.77 1,227,198,770.48
Total 1,127,390,675.15 2,453,888,470.48
Including：Total amount deposited abroad
Funds deposited overseas with
restrictions on repatriation
Notes: As at 31 December 2025, bank acceptance deposit of RMB 839,920,368.84was not recognized as
cash and cash equivalents in the cash flow statement.
(2) Notes receivable
Items 2025/12/31 2024/12/31
Bank acceptance bill 236,004,720.54 241,529,481.42
Commercial acceptance bill 163,755,056.29 365,750,000.00
Total 399,759,776.83 607,279,481.42
Notes to the financial statements Page 47
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 399,759,776.83 100.00 399,759,776.83 607,279,481.42 100.00 607,279,481.42
Notes to the financial statements Page 48
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Provision for bad debts based on portfolio of credit risk characteristics
Portfolio items:
Items
Notes receivable Provision for bad debts Bad debts ratio (%)
Commercial acceptance bill 163,755,056.29
Bank acceptance bill 236,004,720.54
Total 399,759,776.83
Items Notes receivable pledged at the end of period
Bank acceptance bill 6,182,721.01
Total 6,182,721.01
Amount terminated at the end Amount was not terminated at
Items
of the period the end of the period
Bank acceptance bill 3,255,327,628.00 226,619,630.11
Commercial acceptance bill 1,326,790,375.79
Total 4,582,118,003.79 226,619,630.11
(3) Accounts receivable
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 1,149,629,532.02 478,210,867.53
over 5 years 88,417,222.29 379,435,859.17
Notes to the financial statements Page 49
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items 2025/12/31 2024/12/31
Subtotal 1,311,942,556.37 898,142,919.91
Less: Provision for bad debts 133,162,099.60 396,658,838.18
Total 1,178,780,456.77 501,484,081.73
Notes to the financial statements Page 50
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 3.67 48,196,244.68 100.00 334,963,124.35 37.30 334,963,124.35 100.00
individually
Tested for
impairment 1,263,746,311.69 96.33 84,965,854.92 6.72 1,178,780,456.77 563,179,795.56 62.70 61,695,713.83 10.95 501,484,081.73
by portfolio
Including:
Aging 1,263,746,311.69 84,965,854.92 1,178,780,456.77 563,179,795.56 61,695,713.83 501,484,081.73
portfolio
Total 1,311,942,556.37 100.00 133,162,099.60 1,178,780,456.77 898,142,919.91 100.00 396,658,838.18 501,484,081.73
Notes to the financial statements Page 51
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
Brilliance Automotive
Group Holdings Co., 286,766,879.67 286,766,879.67
Ltd.
Total 48,196,244.68 48,196,244.68 334,963,124.35 334,963,124.35
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 40,220,977.61 40,220,977.61 100.00
Total 1,263,746,311.69 84,965,854.92
Changes during the current period
Items 2024/12/31 Reversed or Write-off or Other 2025/12/31
Accrued
recovered Write-back changes
Provision
for bad
Notes to the financial statements Page 52
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Changes during the current period
Items 2024/12/31 Reversed or Write-off or Other 2025/12/31
Accrued
recovered Write-back changes
debts
Total 396,658,838.18 32,997,999.07 21,641,769.22 274,852,968.43 133,162,099.60
Significant amount of bad debt provision recovered or reversed during the period:
Basis for determining
Reversed or Recovered the original bad debt
Company Reason
recovered method provision and its
reasonableness
Brilliance
Debt restructuring
Automotive Group 21,641,769.22 Repayment Bank deposit
agreements
Holdings Co., Ltd.
Total 21,641,769.22
Item Write-off amount
Actual write-off of accounts receivable 274,852,968.43
Details regarding the write-off of significant accounts receivable:
Arising from
Write-off
Write-off Related-Party
Company Nature Reason Procedures
amount Transactions
Performed
or not
The
restructuring
Legal
agreement
Brilliance Receivables from Opinion and
has been
Automotive Group Products and 265,125,110.45 Minutes of No
executed,
Holdings Co., Ltd. Services Office
and
Meeting
liquidation
repayments
Notes to the financial statements Page 53
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Arising from
Write-off
Write-off Related-Party
Company Nature Reason Procedures
amount Transactions
Performed
or not
have been
completed.
Accounts Contract
Percentage Provision for
Company receivable as at assets at Total
(%) bad debts
Angang Group
International
Economic & Trade 663,734,937.01 663,734,937.01 50.59 6,637,349.37
Co., Ltd., Benxi
Branch
China
Construction Sixth
Engineering
Bureau Co., Ltd.
Taicang CIMC
Container
Manufacture Co.,
Ltd.
Liaoning Northern
Coal Chemical 53,085,518.70 53,085,518.70 4.05 4,246,806.95
(Group) Co., Ltd.
Benxi Nanfen
Xinhe
Metallurgical
Refractories Co.,
Notes to the financial statements Page 54
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Accounts Contract
Percentage Provision for
Company receivable as at assets at Total
(%) bad debts
Ltd.
Total 908,247,113.92 908,247,113.92 69.23 67,950,124.15
(4) Accounts receivable financing
Items 2025/12/31 2024/12/31
Notes Receivable 331,321,177.27 64,399,942.70
Total 331,321,177.27 64,399,942.70
Notes to the financial statements Page 55
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Accumulated loss allowances
Increase during the Termination during the
Item 2024/12/31 Other changes 2025/12/31 recognized in other comprehensive
current period current period
income
Notes Receivable 64,399,942.70 12,537,773,155.70 12,270,851,921.13 331,321,177.27
Total 64,399,942.70 12,537,773,155.70 12,270,851,921.13 331,321,177.27
Item Pledged amount as at the period-end
Notes Receivable 120,290,859.64
Total 120,290,859.64
Notes to the financial statements Page 56
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(5) Prepayments
Aging Percentage Percentage
Amount Amount
(%) (%)
Within 1 year
(inclusive)
Over 3 years 56,220.18 0.02 2,380,526.37 0.61
Total 314,825,894.06 100.00 391,823,135.87 100.00
Notes: There were no outstanding prepayments over 1 year.
Name of the company 2025/12/31 Percentage (%)
Shanxi Coking Coal Energy Group Co., Ltd. 46,687,665.87 14.83
Angang Group International Economic & Trade Co., 44,117,532.53 14.01
Ltd., Benxi Branch
Shanxi Coking Coal Group Coal & Coke Sales Co., 36,858,044.46 11.71
Ltd.
Angang Group International Economic & Trading Co., 35,372,892.55 11.24
Ltd.
Shanxi Coking Coal Group Co., Ltd. 30,356,971.68 9.64
Total 193,393,107.09 61.43
(6) Other receivables
Items 2025/12/31 2024/12/31
Interest receivables
Dividend receivables
Notes to the financial statements Page 57
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items 2025/12/31 2024/12/31
Other receivables 4,034,061.03 149,015,138.26
Total 4,034,061.03 149,015,138.26
(1) Other receivables disclosed by aging
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 1,219,878.37 58,452,918.98
over 5 years 52,360,468.13 52,141,851.60
Subtotal 75,230,808.92 220,614,259.17
Less: Provision for bad debts 71,196,747.89 71,599,120.91
Total 4,034,061.03 149,015,138.26
Notes to the financial statements Page 58
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(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 57,038,491.92 75.82 53,004,430.89 92.93 4,034,061.03 202,421,942.17 91.75 53,406,803.91 26.38 149,015,138.26
portfolio
Include: Aging
portfolio
Risk-free
portfolio
Total 75,230,808.92 100.00 71,196,747.89 4,034,061.03 220,614,259.17 100.00 71,599,120.91 149,015,138.26
Notes to the financial statements Page 59
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 36,608,182.47 36,608,182.47 100.00
Total 56,747,273.80 53,004,430.89
(3) Provision for Bad Debts
Stage one Stage two Stage three
Provision for bad debts Total
Notes to the financial statements Page 60
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 582,286.02 11,629,495.43 59,387,339.46 71,599,120.91
Beginning balance during
current period
--Transfer to the second stage -66,031.09 66,031.09
--Transfer to the third stage -6,304,551.60 6,304,551.60
--Write-back to the second
stage
--Write-back to the first stage
Accruals for the current period -506,968.33 -4,850,185.33 13,655,252.40 8,298,098.74
Reversal during the current
period
Write-back of the current
period
Write-off during the current
-8,700,471.76 -8,700,471.76
period
Other changes
Ending balance 9,286.60 540,789.59 70,646,671.70 71,196,747.89
(4) Details of Bad Debt Provisions Accrued, Reversed, or Recovered During the Current
Period
Changes during the current period
Reversal
Items 2024/12/31 Write-back 2025/12/31
Accrual or Others
or write-off
recovered
Bad debt
provision
for other 71,599,120.91 8,298,098.74 8,700,471.76 71,196,747.89
receivables
Total 71,599,120.91 8,298,098.74 8,700,471.76 71,196,747.89
Notes to the financial statements Page 61
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(5) Details of Other Receivables Actually Written Off During the Current Period
Item Write-off amount
Actual write-off of other accounts receivable 8,700,471.76
(6) Other receivables disclosed by nature
Nature 2025/12/31 2024/12/31
Compensation for the “Living
Show Belt” project
Current Account 71,623,926.65 130,478,649.66
Others 3,606,882.27 2,957,909.51
Total 75,230,808.92 220,614,259.17
(7) Top five other receivables at the end of the period
Percentage of
Provision for
Nature or 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 over 5
Construction Account years
Engineering Co.,
Ltd.
Benxi Iron &
Current 1-2 years,
Steel (Group) 2,674,500.00 3.56 413,000.00
Account 2-3 years
Co., Ltd.
Liaoning 2,261,360.00 3.01 2,261,360.00
Huawei Coal Current over 5
Preparation Co., Account years
Ltd.
Benxi Ganglian Current 4-5 years,
Slag Co., Ltd. Account over 5
years
Total 22,605,105.90 30.05 20,343,605.90
Notes to the financial statements Page 62
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(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 3,171,263,464.65 256,207,419.31 2,915,056,045.34 4,300,063,154.21 247,221,306.73 4,052,841,847.48
Work in progress 2,473,710,024.54 64,533,859.33 2,409,176,165.21 2,001,147,780.74 26,685,410.19 1,974,462,370.55
Finished goods 1,074,768,310.11 29,805,634.54 1,044,962,675.57 1,337,346,627.43 31,566,151.19 1,305,780,476.24
Total 6,719,741,799.30 350,546,913.18 6,369,194,886.12 7,638,557,562.38 305,472,868.11 7,333,084,694.27
Increase Decrease
Category 2024/12/31 2025/12/31
Provision Others Write-back or write-off Others
Raw material 247,221,306.73 194,505,777.63 185,519,665.05 256,207,419.31
Work in progress 26,685,410.19 74,883,452.10 37,035,002.96 64,533,859.33
Notes to the financial statements Page 63
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Increase Decrease
Category 2024/12/31 2025/12/31
Provision Others Write-back or write-off Others
Finished goods 31,566,151.19 17,499,979.16 19,260,495.81 29,805,634.54
Total 305,472,868.11 286,889,208.89 241,815,163.82 350,546,913.18
Notes to the financial statements Page 64
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(8) Other current assets
Items 2025/12/31 2024/12/31
VAT input tax 431,454,249.59 401,503,924.78
Others 18,817,113.34 35,577,335.88
Total 450,271,362.93 437,081,260.66
Notes to the financial statements Page 65
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(9) Long-term equity investment
Increase/decrease
Income or
Impairment loss on Impairment
provision Addition investment Other Provision provision
Investees (Book 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
Enterprise
Shenyang
Xiangyu New
Material 45,413,221.72 -2,143,337.68 43,269,884.04
Technology Co.,
Ltd.
Subtotal
Total
Notes to the financial statements Page 66
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(10) Other equity instrument investment
Changes During the Current Period
Dividend Accumulated Accumulated
Gains Losses
income gains losses
recognized in recognized in
Addition Reduction recognized recognized in recognized in Reasons for
Item 2024/12/31 other other 2025/12/31
of of Others during the other other Designation
comprehensive comprehensive
Investment Investment current comprehensive comprehensive
income during income during
period income income
the period the period
Suzhou
Longben
Metal 3,940,544.25 34,699.62 3,975,243.87 86,263.87
Materials
Co. Ltd.
Northeast
Special
Steel 929,485,710.38 -43,040,122.48 886,445,587.90 151,290,261.10
Group
Co., Ltd.
Sinosteel 14,414,693.00
Notes to the financial statements Page 67
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Changes During the Current Period
Dividend Accumulated Accumulated
Gains Losses
income gains losses
recognized in recognized in
Addition Reduction recognized recognized in recognized in Reasons for
Item 2024/12/31 other other 2025/12/31
of of Others during the other other Designation
comprehensive comprehensive
Investment Investment current comprehensive comprehensive
income during income during
period income income
the period the period
Shanghai
Steel
Processing
Co., Ltd.
Total 933,426,254.63 34,699.62 -43,040,122.48 890,420,831.77 86,263.87 165,704,954.10
Notes to the financial statements Page 68
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(11) Fixed assets
Items 2025/12/31 2024/12/31
Fixed assets 28,412,673,622.89 26,426,320,453.57
Disposal of fixed assets
Total 28,412,673,622.89 26,426,320,453.57
Notes to the financial statements Page 69
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Transportation
Items Buildings Machinery Office equipment Total
equipment
（1）31 December 2024 14,262,023,176.62 52,705,897,283.61 400,985,732.35 242,916,091.60 67,611,822,284.18
（2）Increase in current period 345,083,211.93 3,371,864,157.56 2,675,114.60 11,543,279.05 3,731,165,763.14
—Including: Purchase 1,958,197.73 475,557.53 2,433,755.26
—Transferred from
construction in progress
—Increase in Business
Combinations
—Others 1,017,912.61 1,017,912.61
（3）Decrease in current period 95,105,426.10 349,657,275.84 14,051,231.60 219,077.77 459,033,011.31
—Including: Disposal or
scrapped
（4）31 December 2025 14,512,000,962.45 55,728,104,165.33 389,609,615.35 254,240,292.88 70,883,955,036.01
（1）31 December 2024 6,843,827,644.40 33,772,852,695.68 320,082,643.21 137,437,495.66 41,074,200,478.95
Notes to the financial statements Page 70
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Transportation
Items Buildings Machinery Office equipment Total
equipment
（2）Increase in current period 243,268,845.62 1,391,369,035.62 11,026,034.11 35,084,066.74 1,680,747,982.09
—Including: Provision 243,268,845.62 1,391,369,035.62 11,026,034.11 35,084,066.74 1,680,747,982.09
（3）Decrease in current period 80,046,503.68 314,116,594.20 13,430,317.73 217,876.03 407,811,291.64
—Including: Disposal or
scrapped
（4）31 December 2025 7,007,049,986.34 34,850,105,137.10 317,678,359.59 172,303,686.37 42,347,137,169.40
（1）31 December 2024 83,249,691.92 28,051,659.74 111,301,351.66
（2）Increase in current period 17,044,069.90 17,044,069.90
—Including: Provision 17,044,069.90 17,044,069.90
（3）Decrease in current period 833,674.57 3,367,503.27 4,201,177.84
—Including: Disposal or
scrapped
（4）31 December 2025 82,416,017.35 41,728,226.37 124,144,243.72
assets
（1）31 December 2025 7,422,534,958.76 20,836,270,801.86 71,931,255.76 81,936,606.51 28,412,673,622.89
Notes to the financial statements Page 71
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Transportation
Items Buildings Machinery Office equipment Total
equipment
（2）31 December 2024 7,334,945,840.30 18,904,992,928.19 80,903,089.14 105,478,595.94 26,426,320,453.57
Notes to the financial statements Page 72
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Gross carrying Accumulated
Items Impairment Book value Note
amount depreciation
Buildings 112,751,517.87 68,416,882.13 41,943,853.74 2,390,782.00
Machinery 2,923,801.21 2,348,004.03 74,824.18 500,973.00
Transportation
equipment
Others 110,671.80 109,829.55 842.25
Total 115,844,643.66 70,931,608.91 42,019,520.17 2,893,514.58
Items Book value
Buildings 84,583,912.78
Machinery 210,973.38
Items Book value Reason
Buildings 2,545,489,413.29 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 3,074,712,066.38 3,074,712,066.38 3,934,442,501.50 3,934,442,501.50
Project materials
Total 3,074,712,066.38 3,074,712,066.38 3,934,442,501.50 3,934,442,501.50
Notes to the financial statements Page 73
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Gross carrying Total Gross carrying Total
Book value Book value
amount impairment amount impairment
Cold Rolling
Transformation 483,026,894.14 483,026,894.14 492,919,655.40 492,919,655.40
Project
Environmental
Protection
Renovation of 158,152,797.73 158,152,797.73 160,208,719.65 160,208,719.65
Plate Raw
Material Plant
Environmental
Upgrade of the
No. 2 Sintering
Stockyard at the 156,323,959.75 156,323,959.75 46,697,183.08 46,697,183.08
Sheet Metal
Ironmaking
Plant
Grid Upgrade
Project
Supporting the
Bancai
Nengguan
Center
Supercritical
Power
Generation
Project
Steam Drum to
Electric Drum
Conversion
Project of the 118,526,373.67 118,526,373.67 48,987,269.15 48,987,269.15
Plate Energy
Management
Center
Renovation of
the dust removal
system in the
No. 6 blast 96,061,655.94 96,061,655.94 64,377,725.64 64,377,725.64
furnace area of
the Iron and
Steel Plant
Special Steel
Electric Furnace
Capacity 86,939,629.39 86,939,629.39 483,671,390.32 483,671,390.32
Replacement
Project
Bengang Plate
intelligent 85,050,424.38 85,050,424.38 53,198,819.53 53,198,819.53
factory Project
Desulphurization
Waste Liquor
Acid Making
Project in Plates
Iron Making
Plant
Retrofit of the
Dust Removal
System in the
New No.1 Blast
Notes to the financial statements Page 74
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Gross carrying Total Gross carrying Total
Book value Book value
amount impairment amount impairment
Furnace Area at
the Ironmaking
General Works
Others 1,596,793,741.25 1,596,793,741.25 2,458,712,520.41 2,458,712,520.41
Total 3,074,712,066.38 3,074,712,066.38 3,934,442,501.50 3,934,442,501.50
Notes to the financial statements Page 75
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Project
cumulative
Other Including： Interest
Transferred to investment Accumulated
decrease Project Interest capitalization
Increase during fixed asset accounted amount of Sources of
Items Budget 2024/12/31 during 2025/12/31 progress capitalization rate in
current period during current for the interest funds
current (%) amount in current
period proportion capitalization
period current period period (%)
of the
budget (%)
Special Steel
Electric Furnace
Fund
Capacity 1,732,481,000.00 483,671,390.32 7,086,387.35 403,818,148.28 86,939,629.39 89.57 89.57 52,044,899.29 4.08
raising
Replacement
Project
Centralized
Control Project
Loan from
before
Ironmaking of institute
Plates Iron
Making Plant
Renovation of
the Hot Blast
Furnace and
Heat Exchanger
Own
of the No.7 145,000,000.00 120,538,633.05 21,837,952.00 142,376,585.05 98.19 98.19
Funds
Blast Furnace in
Plate
Ironmaking
Plant
Cold Rolling Loan from
Transformation 843,640,000.00 492,919,655.40 85,482,604.91 95,375,366.17 483,026,894.14 95.65 95.65 52,224,686.79 12,115,610.33 4.08 financial
Project institute
Centralized
Control Project
before Own
Ironmaking of Funds
Plates Iron
Making Plant
Notes to the financial statements Page 76
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Project
cumulative
Other Including： Interest
Transferred to investment Accumulated
decrease Project Interest capitalization
Increase during fixed asset accounted amount of Sources of
Items Budget 2024/12/31 during 2025/12/31 progress capitalization rate in
current period during current for the interest funds
current (%) amount in current
period proportion capitalization
period current period period (%)
of the
budget (%)
Ultra-low
emission
transformation
of the dust
Own
removal system 99,660,000.00 68,740,566.29 21,450,808.39 90,191,374.68 90.5 90.5
Funds
in the original
No.3 operation
areas of the Iron
and Steel Plant
Renovation of
cooling
equipment of
Own
No.7 blast 90,800,000.00 65,430,926.20 23,876,974.79 89,307,900.99 98.36 98.36
Funds
furnace in Plate
Ironmaking
Plant
Environmental
Protection
Renovation in Loan from
No. 2 Coal 310,000,000.00 119,656,230.22 5,489,481.00 83,574,769.65 41,570,941.57 92.36 92.36 9,092,899.25 4.08 financial
Storage Field of institute
Plates Raw
Material Plant
Sheet Metal
Ironmaking
Complex: Dust
Own
Removal 99,200,000.00 81,580.00 78,808,585.50 78,890,165.50 79.53 79.53
Funds
Upgrade for the
System
Notes to the financial statements Page 77
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Project
cumulative
Other Including： Interest
Transferred to investment Accumulated
decrease Project Interest capitalization
Increase during fixed asset accounted amount of Sources of
Items Budget 2024/12/31 during 2025/12/31 progress capitalization rate in
current period during current for the interest funds
current (%) amount in current
period proportion capitalization
period current period period (%)
of the
budget (%)
Capacity
Replacement
Project of No. 5
Blast Furnace of
Bensteel
Ironmaking
Plant
Loan from
(Energy-saving
and institute
Environmental
Protection
Renovation of
No. 5 Blast
Furnace of
Ironmaking
Plant)
Environmental
Treatment of
the First and
Second Mixing
Own
Systems for 61,030,000.00 37,822,726.20 15,248,233.80 53,070,960.00 86.96 86.96
Funds
Sinter Machine
at Plate
Ironmaking
General Works
Fully Enclosed
Belt Conveyor
Gallery Project
Own
at Benxi Steel 64,900,000.00 34,238,770.60 18,087,566.60 52,326,337.20 80.63 80.63
Funds
Plate
Ironmaking
General Works
Notes to the financial statements Page 78
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Project
cumulative
Other Including： Interest
Transferred to investment Accumulated
decrease Project Interest capitalization
Increase during fixed asset accounted amount of Sources of
Items Budget 2024/12/31 during 2025/12/31 progress capitalization rate in
current period during current for the interest funds
current (%) amount in current
period proportion capitalization
period current period period (%)
of the
budget (%)
Plate Hot
Rolling Mill
Loan from
Reheating institute
Furnace
Overhaul
Total 1,682,321,582.06 385,780,296.15 1,454,075,021.66 614,026,856.55 151,073,638.73 18,416,539.69
Notes to the financial statements Page 79
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(13) Right of use assets
Items Land Buildings Machinery Total
amount
(1) 31 December 2024 1,132,274,415.17 368,465,367.56 444,230,189.48 1,944,969,972.21
(2) Increase in current
period
—Addition 1,015,148,373.63 1,015,148,373.63
(3) Decrease in current
period
— Transfer to
Fixed Assets
(4) 31 December 2025 1,132,274,415.17 368,465,367.56 1,459,378,563.11 2,960,118,345.84
depreciation
(1) 31 December 2024 159,616,944.92 81,881,192.96 17,546,124.19 259,044,262.07
(2) Increase in current
period
—Provision 39,904,236.24 20,470,298.28 33,544,155.35 93,918,689.87
(3) Decrease in current
period
— Transfer to
Fixed Assets
(4) 31 December 2025 199,521,181.16 102,351,491.24 51,090,279.54 352,962,951.94
(1) 31 December 2024
(2) Increase in current
period
(3) Decrease in current
period
— Transfer to
Notes to the financial statements Page 80
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Land Buildings Machinery Total
Fixed Assets
(4) 31 December 2025
(1) 31 December 2025 932,753,234.01 266,113,876.32 1,408,288,283.57 2,607,155,393.90
(2) 31 December 2024 972,657,470.25 286,584,174.60 426,684,065.29 1,685,925,710.14
(14) Intangible assets
Items Software Land use right Total
（1）31 December 2024 4,439,653.03 489,429,922.52 493,869,575.55
（2）Increase
—Purchase
—Internal R&D
（3）Decrease
—Disposal
（4）31 December 2025 4,439,653.03 489,429,922.52 493,869,575.55
（1）31 December 2024 686,823.46 98,402,683.41 99,089,506.87
（2）Increase 1,164,089.21 9,956,966.70 11,121,055.91
—Provision 1,164,089.21 9,956,966.70 11,121,055.91
（3）Decrease
—Disposal
— Portion that has become invalid
and been derecognized
（4）31 December 2025 1,850,912.67 108,359,650.11 110,210,562.78
（1）31 December 2024
（2）Increase
—Provision
Notes to the financial statements Page 81
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Software Land use right Total
（3）Decrease
—Disposal
— Portion that has become invalid
and been derecognized
（4）31 December 2025
（1）31 December 2025 2,588,740.36 381,070,272.41 383,659,012.77
（2）31 December 2024 3,752,829.57 391,027,239.11 394,780,068.68
Items Book value Reason
Land use right 35,439,263.10 In process
Total 35,439,263.10
(15) Deferred tax asset and deferred tax liability
Deductible Deductible
Items Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Impairment 678,979,736.04 102,311,312.63 598,249,997.63 90,011,580.45
Changes in fair value
of other financial
assets recognized in 165,704,954.07 24,855,743.11 122,664,831.62 18,399,724.74
other comprehensive
income
Tax-Accounting
Differences under 2,587,520,333.13 388,128,049.97 1,752,154,297.33 262,823,144.60
Lease Standards
Total 3,432,205,023.24 515,295,105.71 2,473,069,126.58 371,234,449.79
Notes to the financial statements Page 82
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 31,158.29 4,673.74
other comprehensive
income
Tax-Accounting
Differences under 2,607,155,393.87 391,073,309.08 1,685,925,710.14 252,888,856.52
Lease Standards
Total 2,607,221,251.74 391,083,187.76 1,685,956,868.43 252,893,530.26
Offset Amount of Deferred Income Offset Amount of Deferred Income
Item Deferred Income Tax Asset or Deferred Income Tax Asset or
Tax Assets and Liability Balance Tax Assets and Liability Balance
Liabilities (Net of Offsetting) Liabilities (Net of Offsetting)
Deferred tax 371,234,449.79
assets
Deferred tax 252,893,530.26
liabilities
Items 2025/12/31 2024/12/31
Deductible temporary differences 70,268.35 286,782,181.23
Deductible losses 13,500,278,662.54 9,483,185,444.74
Notes to the financial statements Page 83
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items 2025/12/31 2024/12/31
Total 13,500,348,930.89 9,769,967,625.97
Year 31 December 2025 31 December 2024 Notes
Year 2025 8,257,832.98
Year 2026 2,512,631.86 6,799,314.77
Year 2027 8,117,351.82 8,117,351.82
Year 2028
Year 2029
Year 2030
Year 2031
Year 2032 1,911,715,647.99 1,911,715,647.99
Year 2033 2,367,541,315.76 2,367,541,315.76
Year 2034 5,125,613,839.53 5,180,753,981.42
Year 2035 4,084,777,875.58
Total 13,500,278,662.54 9,483,185,444.74
(16) Other non-current assets
Gross
Items Gross carrying
carrying Impairment Book value Impairment Book value
amount
amount
Prepayment
for
construction 54,632,516.72 54,632,516.72 86,297,275.16 86,297,275.16
and
equipment
Total 54,632,516.72 54,632,516.72 86,297,275.16 86,297,275.16
Notes to the financial statements Page 84
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(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 Notes Margin for Notes Margin for Notes
Notes
Cash at bank and receivable, 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 6,182,721.01 6,182,721.01 Pledged Pledged 165,968,800.17 165,968,800.17 Pledged Pledged
Accounts
receivable 120,290,859.64 120,290,859.64 Pledged Pledged
financing
Total 966,393,949.49 966,393,949.49 1,029,652,051.74 1,029,652,051.74
Notes to the financial statements Page 85
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(18) Short-term loans
Items 2025/12/31 2024/12/31
Credit loans 200,000,000.00 370,000,000.00
Discounted unexpired bills 133,660,470.12 1,055,490.50
Total 333,660,470.12 371,055,490.50
(19) Notes payable
Items 2025/12/31 2024/12/31
Bank acceptance bill 10,925,339,515.71 10,412,029,417.45
Commercial acceptance bill 900,231,371.80 1,559,477,470.97
Letter of credit 1,136,716,755.37 1,011,196,781.44
Total 12,962,287,642.88 12,982,703,669.86
Note: The total amount of overdue but unpaid bills payable at the end of this period was RMB
payment application.
(20) Accounts payable
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 2,526,036,992.36 2,680,864,210.15
Over 3 years 15,778,495.57 10,592,375.79
Total 2,667,236,412.66 2,761,759,439.36
Items 2025/12/31 Reasons
Benxi Iron & Steel (Group) Information 12,971,075.23 Not yet eligible for
Notes to the financial statements Page 86
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items 2025/12/31 Reasons
Automation Co., Ltd. settlement
Total 12,971,075.23
(21) Prepayments
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 49,541.35 611.60
Over 3 years
Total 49,541.35 59,327.21
(22) Contract liabilities
Items 2025/12/31 2024/12/31
Payment received in advance and labor costs 2,736,697,947.25 2,894,761,202.08
Others 13,837,223.65
Total 2,736,697,947.25 2,908,598,425.73
(23) Employee benefits payable
Items 2024/12/31 Increase Decrease 2025/12/31
Short-term employee 1,773,068.35 1,705,470,986.36 1,704,657,171.42 2,586,883.29
benefits
Post-employment 230,401,591.11 230,401,591.11
benefits - defined
contribution plans
Termination benefits 117,157,117.98 117,157,117.98
Other benefits due within
one year
Notes to the financial statements Page 87
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items 2024/12/31 Increase Decrease 2025/12/31
Total 1,773,068.35 2,053,029,695.45 2,052,215,880.51 2,586,883.29
Items 2024/12/31 Increase Decrease 2025/12/31
(1) Salary, bonus,
allowance and subsidy
(2) Employee welfare 158,989,619.31 158,989,619.31
(3) Social Insurance 116,652,644.33 116,652,644.33
Including: Medical
insurance and maternity 97,024,776.37 97,024,776.37
insurance
Work injury
insurance
Others
(4) Housing fund 140,031,949.00 140,031,949.00
(5) Union funds and staff
education fee
(6) Short-term
compensated absences
(7) Short-term profit -
sharing scheme
(8) Other short-term
benefits
Total 1,773,068.35 1,705,470,986.36 1,704,657,171.42 2,586,883.29
Items 2024/12/31 Increase Decrease 2025/12/31
Basic pension fund 184,768,778.80 184,768,778.80
Unemployment insurance 5,774,655.52 5,774,655.52
Annuity 39,858,156.79 39,858,156.79
Notes to the financial statements Page 88
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items 2024/12/31 Increase Decrease 2025/12/31
Total 230,401,591.11 230,401,591.11
(24) Current tax liabilities
Items 2025/12/31 2024/12/31
Value-added tax 10,075,228.91 10,272,516.44
Resource Tax 1,965,703.36 750,000.00
Corporate income tax 14,251,204.39 16,029,179.78
Individual income tax 8,351,507.38 2,157,426.95
City maintenance and construction tax 708,128.46 540,889.49
Educational surcharges（including local
Educational surcharges）
House property tax 505,806.05 386,769.92
Land use right tax 1,144,608.49 1,088,809.99
Others 15,888,049.72 15,473,848.93
Total 59,857,286.81 54,070,097.83
(25) Other payables
Items 2025/12/31 2024/12/31
Interest payables
Dividends payables 45,054,305.70 99,687,100.35
Other payables 2,730,489,890.41 2,255,007,099.66
Total 2,775,544,196.11 2,354,694,200.01
Items 2025/12/31 2024/12/31
Bengang Group Co., Ltd. 45,054,305.70 45,054,305.70
Pohang Iron and Steel Co. Ltd (POSCO) 54,632,794.65
Total 45,054,305.70 99,687,100.35
Notes to the financial statements Page 89
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(1) Other payables disclosed by nature
Items 2025/12/31 2024/12/31
Current Accounts 2,344,273,165.96 1,871,598,040.35
Deposit 559,292.00 586,292.00
Margin 382,448,871.66 377,422,555.34
Others 3,208,560.79 5,400,211.97
Total 2,730,489,890.41 2,255,007,099.66
(2) Significant other payables aged over one year or overdue
Items 2025/12/31 Reasons
Hunan MCC Changtian Energy Saving and 21,291,952.51 The project is still in
Environmental Protection Technology Co., Ltd. progress
Shanghai Baosight Software Co., Ltd.
progress
China Third Metallurgical Group Co., Ltd.
progress
Total 33,943,126.12
(26) Non-current liabilities due within one year
Items 2025/12/31 2024/12/31
Long-term loans due within one year 927,300,000.00 805,270,731.20
Bond payables due within one year 5,665,550,635.00 106,989,474.64
Lease liabilities due within one year 348,084,227.49 118,242,710.82
Total 6,940,934,862.49 1,030,502,916.66
(27) Other current liabilities
Items 2025/12/31 2024/12/31
Output tax to be transferred 275,281,765.24 328,981,058.74
Notes to the financial statements Page 90
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items 2025/12/31 2024/12/31
Total 275,281,765.24 328,981,058.74
(28) Long-term loans
Items 2025/12/31 2024/12/31
Pledged loans
Mortgage loan
Guaranteed loans
Credit loans 6,941,769,758.11 3,697,212,193.60
Subtotal 6,941,769,758.11 3,697,212,193.60
Less: Non-current liabilities due within
one year
Total 6,014,469,758.11 2,891,941,462.40
Notes: The interest rate of long-term loans is 2.39%-3.67%.
(29) Bonds payable
Items 2025/12/31 2024/12/31
Convertible Bond 5,569,899,459.53
Total 5,569,899,459.53
Notes to the financial statements Page 91
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Share
conversio
Balance at the end Premium and Balance at the end
Coupo Issue Bond Current Interest accrued Repayment in n and Default
Items Face value Issuance amount of the previous discount of the current
n rate date duration issue at face value this period repurchas or not
year amortization period
e this
year
Bengang
Convertible
Bond (Bond
code:127018)
Less: amount
due within one 106,989,474.64 247,774,352.50 -45,093,127.03 213,987,524.64 32,000.00 5,665,550,635.00 No
year
Total 6,800,000,000.00 5,569,899,459.53
Notes to the financial statements Page 92
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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. From January 1, 2025 to December 31, 2025, an aggregate of RMB32,000.00 of the convertible bonds were converted into
In the first quarter of 2025, the Bengang convertible bonds were reduced by RMB 15,000.00 (150 bonds) due to the conversion, and the number of shares
converted was 3,795.00 shares, and the conversion price was RMB3.95 per share;
In the second quarter of 2025, the Bengang convertible bonds were reduced by RMB 1,000.00 (10 bonds) due to the conversion, and the number of shares
converted was 253.00 shares, and the conversion price was RMB3.95 per share;
In the third quarter of 2025, the Bengang convertible bonds were reduced by RMB13,000.00 (130 bonds) due to the conversion, and the number of shares
converted was 3,036.00 shares, and the conversion price was RMB3.95 per share;
In the forth quarter of 2025, the Bengang convertible bonds were reduced by RMB 4,000.00 (40 bonds) due to the conversion, and the number of shares
converted was 1,012.00 shares, and the conversion price was RMB3.95 per share;
As of December 31, 2025, the remaining amount of the face value of the convertible bonds was RMB 5,630,953,100.00 Yuan (56,309,531.00 bonds).
Notes to the financial statements Page 93
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(30) Lease liabilities
Items 2025/12/31 2024/12/31
Lease payments 3,357,181,841.40 2,539,395,930.63
Less: Unrealized financing expenses 769,661,508.27 787,241,633.30
Reclassified to non-current liabilities
within one year
Total 2,239,436,105.64 1,633,911,586.51
(31) Deferred income
Items 2024/12/31 Increase Decrease 2025/12/31 Reason
Government
subsidy
Total 173,919,087.47 47,760,050.00 63,479,720.89 158,199,416.58
Notes to the financial statements Page 94
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
The details of the government subsidy projects are as follows:
Transfer to Offsetting
Transfer to Other
Related to assets or income 2024/12/31 Increase non-operating cost or 2025/12/31
other income changes
income expenses
Related to assets 167,930,005.80 46,333,000.00 59,001,148.00 155,261,857.80
Related to income 5,989,081.67 1,427,050.00 4,478,572.89 2,937,558.78
Total 173,919,087.47 47,760,050.00 63,479,720.89 158,199,416.58
Notes to the financial statements Page 95
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(32) Share capital
Increase/decrease (+ , - )
Issuing Transferred
Items 2024/12/31 Bonus 2025/12/31
of new from Others Subtotal
shares
share reserves
Total
shares
Note: The decrease during the current period resulted from the conversion of 8,096.00 shares
of the Company's A-share convertible bonds into the Company's A-share ordinary shares. As
of December 31, 2025, the remaining face value balance of the Company's convertible bonds
amounted to RMB 5,630,953,100.00 (comprising 56,309,531.00 bonds). For further details,
please refer to Note 5. (29) Bonds payable.
Notes to the financial statements Page 96
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(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 56,309,851.00 947,850,195.03 320.00 6,514.21 56,309,531.00 947,843,680.82
Notes: The decrease during the current period was due to convertible bonds issued by the Company have been partially converted into common stock for an
aggregate of RMB32,000.00 (320 bonds), and the remaining balance of the face value of the convertible bonds as of December 31, 2025 was RMB
Notes to the financial statements Page 97
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(34) Capital reserves
Items 2024/12/31 Increase Decrease 2025/12/31
Capital (share)
premium
Other capital reserves 115,917,468.82 27,300,000.00 143,217,468.82
Including: Changes in
Other Equity of the
Investee
Others 115,917,468.82 27,300,000.00 143,217,468.82
Total 13,225,632,166.95 27,323,670.53 13,252,955,837.48
Notes:
Company into A-share common stock during the period, as described in Note 5 (29)
Bonds payable.
receipt of special funds from Angang Group, thereby increasing the entity's state-owned
capital (specifically, State-owned Exclusive Capital Reserves).
Notes to the financial statements Page 98
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(35) Other comprehensive income
Current period
Less: amount
recognized in Income after Income after
Amounts
OCI in the tax tax attributable Less: transfer
Items 2024/12/31 before 2025/12/31
previous period Less: income tax attributable to to to retain
corporate
transfer to PL owners of the non-controlling earnings
income tax
in current Company interests
period
-93,407,196.62 -43,005,422.86 -6,450,813.43 -36,554,609.43 -129,961,806.05
into profit or loss.
including: Remeasurements of
the Net Defined Benefit
Liability (Asset)
Changes in fair value of
investments in other equity -43,035,854.74 -43,005,422.86 -6,450,813.43 -36,554,609.43 -79,590,464.17
instruments
profit or loss
Notes to the financial statements Page 99
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Current period
Less: amount
recognized in Income after Income after
Amounts
OCI in the tax tax attributable Less: transfer
Items 2024/12/31 before 2025/12/31
previous period Less: income tax attributable to to to retain
corporate
transfer to PL owners of the non-controlling earnings
income tax
in current Company interests
period
Total -93,407,196.62 -43,005,422.86 -6,450,813.43 -36,554,609.43 -129,961,806.05
Notes to the financial statements Page 100
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(36) Special Reserves
Items 2024/12/31 Increase Decrease 2025/12/31
Safety production
cost
Total 809,649.65 64,166,383.03 64,094,530.45 881,502.23
(37) Surplus Reserves
Items 2024/12/31 Increase Decrease 2025/12/31
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
-7,497,011,632.90 -2,414,685,928.92
year-end
Adjustments of the beginning distributed profits
(increase + / decease -)
After adjustments: undistributed profit at this
-7,497,011,632.90 -2,414,685,928.92
year-beginning
Add: undistributed profit belonging to parent
-3,942,278,349.12 -5,037,271,398.28
company
Less: Statutory surplus reserves
Discretionary reserves
General risk reserves
Common shares dividend payable 45,054,305.70
Common shares dividend transferred to paid-in
capital
Ending balance of undistributed profits -11,439,289,982.02 -7,497,011,632.90
Notes to the financial statements Page 101
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(39) Operating income and operating cost
Current period Previous period
Items
Revenue Cost Revenue Cost
Principal
business
Other
business
Total 46,392,250,494.48 48,441,024,611.38 51,266,361,501.22 54,693,756,805.43
Notes to the financial statements Page 102
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 45,626,234,164.33 47,687,535,996.75 766,016,330.15 753,488,614.63 46,392,250,494.48 48,441,024,611.38
Classification by
business area
Including：Domestic 36,332,697,501.93 37,842,466,554.45 766,016,330.15 753,488,614.63 37,098,713,832.08 38,595,955,169.08
Abroad 9,293,536,662.40 9,845,069,442.30 9,293,536,662.40 9,845,069,442.30
Total 45,626,234,164.33 47,687,535,996.75 766,016,330.15 753,488,614.63 46,392,250,494.48 48,441,024,611.38
Notes to the financial statements Page 103
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Notes to the financial statements Page 104
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(40) Tax and surcharges
Items Current period Previous period
Environmental tax 20,503,102.25 25,266,354.57
City maintenance and construction tax 6,189,588.33 10,385,897.62
Educational surcharge 4,601,665.24 7,465,694.70
Resource Tax 9,628,850.52 750,000.00
Housing property tax 89,305,760.01 85,712,608.51
Land use right tax 14,215,642.88 14,382,618.16
Vehicle and vessel tax 153,519.70 224,158.74
Stamp duty 60,614,230.72 58,834,787.91
Others 10,878.64 21,247.15
Total 205,223,238.29 203,043,367.36
Note: The transition from water resource fees to taxes was implemented in December 2024. The
collection period for 2024 spanned one month, whereas the collection period for 2025 covers a full 12
months; consequently, the water resource tax for 2025 shows a significant month-over-month increase.
(41) Selling and distribution expenses
Items Current period Previous period
Import and export agency fee 41,257,018.21 52,584,810.12
Salary and benefits 57,918,567.27 67,395,074.92
Storage and warehousing fee 1,717,823.82 1,977,289.68
Others 35,945,383.84 20,681,443.05
Total 136,838,793.14 142,638,617.77
(42) General and administrative expenses
Items Current period Previous period
Salary and benefits 307,157,438.54 351,493,964.20
Insurance fee 17,200,072.53 12,995,462.13
Depreciation 62,568,460.35 55,331,155.82
Notes to the financial statements Page 105
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Current period Previous period
Repair expense 3,287,105.74 4,037,864.04
Professional service expenses 10,182,784.99 13,588,178.36
Information System Service Fee 29,868,489.03 35,322,109.80
Business Travel Expenses 197,040.78 2,563,843.56
Others 241,758,150.53 227,455,833.92
Total 672,219,542.49 702,788,411.83
(43) Research and development expenses
Items Current period Previous period
Depreciation, materials and
compensation, etc.
Total 90,978,954.16 86,415,509.29
(44) Financial expenses
Items Current period Previous period
Interest expenses 394,193,802.90 384,713,981.73
including: Interest expenses for lease
liabilities
Less: Interest income 32,518,614.84 43,019,766.05
Exchange losses 55,283,349.61 -112,286,393.26
Others 11,043,592.37 10,923,494.40
Total 428,002,130.04 240,331,316.82
(45) Other income
Items Current period Previous period
Additional VAT Deduction 59,045,361.08 48,812,224.61
VAT Refund upon Collection 40,759,445.15 86,963,574.36
Central Government Environmental Protection
Award Fund
Gratuitous Transfer of Non-monetary Assets 19,047,472.00 19,009,956.00
Flue Gas Desulfurization and Denitrification Project
for No.5 Furnace Group & 4B Coke Oven at Plate 4,092,000.00 4,092,000.00
Ironmaking Plant
Notes to the financial statements Page 106
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Project (Special Steel EAF Upgrading Project)
Triple Dust Removal Retrofit for Roof Hoods of
No.4/5/6 Converters at Plate Steelmaking Plant
Plate factory area converter Gas Recovery and
Efficiency Improvement Project
Dust Removal Retrofit for Hot Metal Pretreatment
Station of Steelmaking Converters
Advanced Treatment Project of Carbon Fiber
Wastewater in Dongfeng Plant Area of Plate Coking 1,900,000.00 1,900,000.00
Plant
Special Fund
Special Fund（Digital and Networked Upgrade）
Government Subsidies received by the Sheet Material
R&D Institute
Fiscal Support Funds 630,000.00 110,000.00
Desulfurization and Denitrification Project of
Coal-fired Boiler in High-pressure Workshop of 600,000.00 600,000.00
Bengang Power Plant
Second Sintering Finishing Dust Removal Ultra-low
Emission Reconstruction Project
Refund of Handling Fees for Withholding and
Remitting Individual Income Tax
Benxi Steel Automotive Sheet Engineering
Laboratory Construction Project
Science and Technology Development Funds: Second 300,000.00
Batch of Planned Projects
Intelligent Manufacturing
Municipal Funding Subsidy for Enterprise
Operations-related Patent Navigation Projects
Liaoning Provincial Intellectual Property Office:
High-Value Patent Support Fund Subsidy
Design and Physicochemical Properties of
Metallurgical Slag Systems for Rare Earth 85,200.00 15,175.50
Steelmaking
Mechanism and Control of Rare Earth Oxysulfides on
Plasticization Behavior in Automotive Steels
Expenses
Program Funds
Expenses
Xingliao Talent Program Government Grant 3,600.00 46,500.00
Special Incentive Funds for Business Stable
development Measures
Industrial Economy Stabilization and Growth
Incentive Fund
Science & Technology Funds 300,000.00
Development of Gen-3 AHSS for Vehicles 580,000.00
Notes to the financial statements Page 107
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Liaoning Provincial Standardization Subsidy 10,000.00
High-tech Enterprise Incentive Funds 100,000.00
Total 164,261,547.31 200,140,947.91
(46) Investment income
Items Current period Previous period
Income on long-term equity investment by equity method -2,143,337.68 -1,497,124.69
Gain from debt restructuring 17,512,835.36 6,496,818.35
Others -26,326,290.61 -47,967,315.58
Total -10,956,792.93 -42,967,621.92
(47) Credit impairment loss
Items Current period Previous period
Loss from bad debts of account receivable 11,356,229.85 -51,156,620.60
Loss from bad debts of other receivables 8,298,098.74 1,013,615.40
Total 19,654,328.59 -50,143,005.20
(48) Asset impairment loss
Items Current period Previous period
Inventory and contract fulfillment cost
impairment loss
Fixed assets impairment loss 17,044,069.90
Total 303,933,278.79 278,486,334.42
(49) Assets disposal gains
The amount recognized in
Items Current period Previous period
non-recurring profit
Fixed assets 3,008.85 13,020,778.49 3,008.85
Total 3,008.85 13,020,778.49 3,008.85
Notes to the financial statements Page 108
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(50) Non-operating income
The amount
Items Current period Previous period recognized in
non-recurring profit
Non-current assets scrapped gains 2,382,736.20 3,307,408.92 2,382,736.20
Compensation for breach of
contract
Unpayable accounts payable
(Debt settlement income)
Others 7,475,439.84 33,623,658.14 7,475,439.84
Total 23,612,863.00 45,789,122.58 23,612,863.00
(51) Non-operating expense
The amount
Items Current period Previous period recognized in
non-recurring profit
Non-current assets scrapped loss 47,144,692.71 52,327,212.31 47,144,692.71
Administrative Fines and Late
Payment Fees
Compensation, liquidated
damages and fines
Others 5,195,080.64 835,992.86 5,195,080.64
Total 63,205,937.35 54,707,998.74 63,205,937.35
(52) Income tax expenses
Items Current period Previous period
Income tax payable for the current year 62,925,475.32 73,650,531.92
Deferred income tax 579,815.01 16,786,257.16
Notes to the financial statements Page 109
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Current period Previous period
Total 63,505,290.33 90,436,789.08
Items Current period
Total profit -3,791,909,693.52
Income tax expense calculated according to the official or applicable tax -568,784,358.54
rate
Effect of different tax rates applied by subsidiaries 10,885,221.49
Effect of adjustment of the income tax expense of prior period 389,756.93
Effect of non-taxable income -9,301,605.75
Effect of non-deductible costs, expenses or losses 635,791.76
Effect of use of deductible losses of unrecognized deferred tax asset of -3,122,208.63
prior period
Effect of deductible temporary differences or deductible losses of 587,974,915.55
unrecognized deferred tax assets of current period
Effect of tax rate changes on the opening balance of deferred tax
assets/liabilities
Others 44,827,777.52
Income tax expenses 63,505,290.33
(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 32,518,614.84 43,019,928.42
Special subsidy income 76,130,817.09 61,603,389.34
Non-operating income 8,089,841.48 45,108,931.60
Notes to the financial statements Page 110
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Current period Previous period
Others 69,557,902.36 72,901,959.17
Total 211,451,415.77 243,342,089.30
（2）Cash paid related to other operating activities
Items Current period Previous period
Current accounts 21,458,523.69 31,632,625.15
Administrative expenses 150,737,433.31 160,290,483.72
Selling expenses 46,171,361.15 43,283,792.38
Charges 3,762,378.42 3,227,037.36
Others 193,898,385.46 167,670,609.80
Total 416,028,082.03 406,104,548.41
（1）Other cash received in relation to financing activities
Item Current period Previous period
Notes, letter of guarantee, and letter of credit
margins 3,237,423,685.03 3,808,123,889.76
Recovery of short-term borrowing funds for
designated payments
Total 3,237,423,685.03 3,808,123,889.76
（2）Other cash paid in relation to financing activities
Item Current period Previous period
Notes, letter of guarantee, and letter of credit
margins 3,036,021,201.32 4,871,226,556.86
Short-term borrowing funds for designated
payments
Lease payments 154,634,911.14 68,842,727.36
Total 3,190,656,112.46 4,940,069,284.22
(54) Supplementary details of statement of cash flows
Notes to the financial statements Page 111
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Current period Previous period
operating activities:
Net profit -3,855,414,983.85 -4,960,117,417.26
Add: Credit impairment loss 19,654,328.59 -50,143,005.20
Asset impairment loss 303,933,278.79 278,486,334.42
Depreciation of fixed assets 1,680,747,982.09 1,635,677,342.74
Depreciation of right of use assets 93,918,689.87 77,920,658.71
Amortization of intangible assets 11,121,055.91 9,634,760.52
Amortization of Long-term Deferred Expenses
Losses proceeds from disposal of PPE, intangible assets
-3,008.85 -13,020,778.49
and other long-term assets (Earnings marked“－”)
Scrapped losses from fixed assets (Earnings
marked“－”)
Losses in fair value change (Earnings marked“－”)
Financial expenses (Earnings marked“－”) 449,477,152.51 272,427,588.47
Investment losses (Earnings marked“－”) 10,956,792.93 42,967,621.92
Deferred tax assets reduction (Addition marked“－”) -137,604,637.55 93,801,445.51
Deferred tax liabilities increased (Reduction
marked“－”)
Reduction of inventory (Addition marked“－”) 677,000,599.26 157,980,745.75
Operating receivable items reduction (Addition
-534,373,914.57 1,927,753,242.95
marked“－”)
Operating payable items increase (Less marked"－") -691,248,364.58 1,654,268,244.56
Others 71,852.58 646,594.61
Net cash flows generated from operating activities -1,788,816,767.80 1,100,287,994.25
involving cash:
Liabilities transferred to capital
Convertible bonds due within one year
Notes to the financial statements Page 112
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Current period Previous period
Fixed assets financed by leasing
Ending balance of cash 287,470,306.31 1,590,205,218.91
Less: Beginning balance of cash 1,590,205,218.91 1,199,685,408.38
Add: Ending balance of cash equivalents
Less: Opening balance of cash equivalents
The net increase in cash and cash equivalents -1,302,734,912.60 390,519,810.53
Items Current period Previous period
Including: Cash on hand
Bank deposits available on demand 287,470,306.31 1,590,205,218.91
Including: Cash and cash equivalents limited to use by
the parent company of other subsidiary in
the group
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 translated
Item Exchange rate
foreign currency to RMB
Cash and cash equivalents 92,017,493.96
Including: USD 13,091,494.13 7.0288 92,017,493.96
Non-current liabilities due
within one year
Notes to the financial statements Page 113
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Ending balance in Ending balance translated
Item Exchange rate
foreign currency to RMB
Including: JPY 23,176,000.00 0.0448 1,038,284.80
Long-term loans 1,038,284.80
Including: JPT 23,176,000.00 0.0448 1,038,284.80
Accounts receivable 663,734,936.95
Including: USD 94,430,761.57 7.0288 663,734,936.95
Accounts payable 42,678,053.96
Including: USD 6,071,883.39 7.0288 42,678,053.96
Items Current period Previous period
Depreciation, materials,
salaries, etc.
Professional Service Fee 3,700,000.00
Total 94,678,954.16 86,415,509.29
Including: Expensed R&D
Expenditure
Capitalized R&D
Expenditures
Increase during Decrease during
the current period the current period
Item 2024/12/31 Internal 2025/12/31
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
Notes to the financial statements Page 114
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(1) Changes in the Scope of Consolidation Due to Other Reasons
together with its related party, Angang Green Gold Industry Development Co., Ltd.,
jointly contributed RMB 60 million to establish Green Gold (Benxi) Renewable
Resources Co., Ltd.
November 11, 2025, with the unanimous consent of all shareholders.
(1) Equity in subsidiaries
Shareholding
Principal
Name of Registered Registrati Nature of ratio(%) Acquisition
place of
subsidiary Capital on 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.
Yantai Bengang Business
Steel Sales Co., combination
Notes to the financial statements Page 115
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Shareholding
Principal
Name of Registered Registrati Nature of ratio(%) Acquisition
place of
subsidiary Capital on place Business Dire Indire method
business
ct ct
Ltd. under
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
Science and
Technology Co.,
Ltd
Business
North Hengda combination
Manufacturi
Logistics Co., 150 million Benxi Benxi 100 under
ng
Ltd. common
control
Important non-wholly owned subsidiaries
Dividend
Profits and losses
Proportion of declared to Ending
attributing to
non-controlling distribute to balance of
Name of the subsidiaries non-controlling
interests non-controlling non-controlling
shareholders
shareholders interests
Bengang POSCO
Cold-rolled Sheet Co.,
Ltd.
Notes to the financial statements Page 116
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Name of 2025/12/31 2024/12/31
the
Non-current Current Non-curren Non-current Current Non-curren
Current assets Total assets Total liabilities Current assets Total assets Total liabilities
subsidiarie assets liabilities t liabilities assets liabilities t liabilities
s
Bengang
POSCO
Cold-rolled
Sheet Co.,
Ltd. 1 8 9 0 0 2 2 4 6 6
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.
Notes to the financial statements Page 117
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(2) Interests in joint ventures or associated enterprises
period period
Associated enterprises:
Total book value of investments 43,269,884.04 45,413,221.72
Total of the following items calculated
based on shareholding ratio
-Net profit -2,143,337.68 -1,497,124.69
-Other comprehensive income
-Total comprehensive income -2,143,337.68 -1,497,124.69
(1) Government grants included in current profit or loss
Accounting subjects Current period Previous period
Other income 104,879,166.04 150,827,470.07
Total 104,879,166.04 150,827,470.07
Notes to the financial statements Page 118
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(2) Liabilities involving government subsidies
Amounts
Amounts
recognized in Offset costs or
recognized in
non-operating expenses Other 2025/12/31
Liabilities 2024/12/31 Addition other income Asset-related/income-related
income during during the changes
during the
the current current period
current period
period
Deferred
income
Notes to the financial statements Page 119
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(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:
Notes to the financial statements Page 120
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Immediate Total undiscounted
Within 1 year 1-2 years 2-5 years Over 5 years Book value
repayment contract amount
Short-term 333,660,470.12 333,660,470.12 333,660,470.12
loans
Notes 12,962,287,642.88 12,962,287,642.88 12,962,287,642.88
payable
Accounts 2,667,236,412.66 2,667,236,412.66 2,667,236,412.66
payable
Other 1,695,840,066.44 900,248,576.00 179,455,553.68 2,775,544,196.11 2,775,544,196.11
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 348,084,227.49 420,003,905.75 817,727,027.56 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
Notes to the financial statements Page 121
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Immediate Total undiscounted
Within 1 year 1-2 years 2-5 years Over 5 years Book value
repayment contract amount
(including
bonds
payable due
within one
year)
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
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
(including
Notes to the financial statements Page 122
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Immediate Total undiscounted
Within 1 year 1-2 years 2-5 years Over 5 years Book value
repayment contract amount
long-term
loans due
within one
year)
Lease
liabilities
(including
lease
liabilities due
within one
year)
Bonds
payable
(including
bonds
payable due
within one
year)
Total 18,768,954,245.18 7,058,472,155.77 3,027,097,586.19 741,944,237.69 29,596,468,224.83 29,596,468,224.83
Notes to the financial statements Page 123
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 December 31, 2025, 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 2025/12/31 2024/12/31
Cash and cash equivalents - USD 92,017,493.96 326,239,933.43
Cash and cash equivalents - HKD 192.36
Non-current liabilities due within one
year - JPY
Long-term loans - JPY 1,038,284.80 2,141,462.40
Accounts receivable – USD 663,734,936.95 253,981,286.89
Accounts payable - USD 42,678,053.96 59,412,915.21
Total 800,507,054.47 642,846,521.49
(2) Transfer of financial assets
Notes to the financial statements Page 124
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 226,619,630.11 Not derecognized rewards, including the
Receivable
discount default risk associated
with it
Bill Accounts Almost all of its risks
endorsement/bill Receivable 4,582,118,003.79 Derecognized and rewards have been
discount Financing transferred
Total 4,808,737,633.90
Notes to the basis of derecognition: As of December 31, 2025, 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 4,582,118,003.79 25,910,295.40
discounting
financing
Total 4,582,118,003.79 25,910,295.40
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.
Notes to the financial statements Page 125
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
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 331,321,177.27 331,321,177.27
Other equity instrument
investments
(1) Details of parent company
Share
Name of parent Place of Business Registered Voting
proportion
company Registry nature capital rights (%)
(%)
Benxi Steel & Iron Benxi, RMB 9.83
Manufacturing 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 8 “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 8
“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:
Notes to the financial statements Page 126
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Name of joint venture or associated enterprise Relationship
Shenyang Xiangyu New Materials Technology Co., Ltd. Associate
（4） Other related parties
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 & Iron (Group) Steel & Iron Process and Logistics
Same parent company
Co., Ltd.
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
Notes to the financial statements Page 127
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Relationship between other related
Name of other related parties
parties and the 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.
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 Jiajiaobao 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
Notes to the financial statements Page 128
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Relationship between other related
Name of other related parties
parties and the Company
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.
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.
Notes to the financial statements Page 129
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Relationship between other related
Name of other related parties
parties and the Company
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 Center 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.
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
Benxi Yuneng Thermal Power Co., Ltd. Joint Ventures of Ansteel Group
Notes to the financial statements Page 130
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
（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 Fee
Angang (Liaoning) Materials Engineering
Technology Co., Ltd. Costs
Angang Electrical Co., Ltd. Repair costs 1,565,600.00 1,088,249.99
Ingredients and
Angang Scrap Resources (Anshan)
Auxiliary 366,135,058.71 1,124,802,017.73
Co., Ltd.
Materials
Angang Steel Processing &
Raw material 653,381.03
Distribution (Dalian) Co., Ltd.
Angang Steel Processing &
Processing Fee 374,521.01
Distribution (Dalian) Co., Ltd.
Angang Steel Processing &
Processing Fee 1,317,197.42 1,041,620.63
Distribution (Changchun) Co., Ltd.
Angang Steel Processing &
Storage Fee 2,485.80
Distribution (Changchun) Co., Ltd.
Angang Steel Processing &
Processing Fee 131,942.35
Distribution (Zhengzhou) Co., Ltd.
Angang Steel Distribution (Wuhan)
Raw material 395,360.40
Co., Ltd.
Angang Engineering Technology
Engineering
Survey and Design Institute (Anshan) 53,000.00
Costs
Co., Ltd.
Auxiliary
Angang Steel Company Limited 4,418,367.06 3,161,789.58
Materials
Ansteel Group Railway Equipment
Spare Parts 366,360.00
Checking &Repairing Company
Angang Group Beijing Research Professional
Institute Co., Ltd. Service Fee
Angang Group Engineering Engineering
Technology Co., Ltd. Costs
Angang Group Engineering
Spare Parts 219,963,883.45
Technology Co., Ltd.
Angang Group Engineering
Repair costs 933,900.00 440,000.00
Technology Co., Ltd.
Angang Group Engineering Safety production
Technology Co., Ltd. fee
Raw and
Angang Group International
Auxiliary 148,149,910.36 186,243,033.73
Economic & Trade Co., Ltd.
Materials
Agency Service
Angang Group International Fees, Port
Economic & Trade Co., Ltd. Miscellaneous
Fees
Angang Group Energy-Saving General
Technology Services Co., Ltd. Contracting Fee
Ansteel Group Mining Co., LTD Raw material 184,238,740.56 308,667,259.88
Ansteel Group Co., Ltd Service Fee 5,681,680.10 208,470.50
Engineering
Angang Group Automation Co., Ltd. 1,600,000.00 51,010,000.00
Costs
Engineering
Angang Construction Group Co., Ltd. 46,591,176.52
Costs
Notes to the financial statements Page 131
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Content of related
Related parties Current period Previous period
transactions
Engineering
Angang Construction Group Co., Ltd. 27,446,205.00
Materials
Angang Mining Automotive
Shipping Fee 297,872.02
Transportation Co., Ltd.
Angang Green Gold Industry
Service Fees 365,240.50
Development Co., Ltd.
Angang Green Gold Industry Professional
Development Co., Ltd. Service Fee
Angang Green Resources Technology
Shipping Fee 6,772,731.67
Co., Ltd.
Auxiliary
Angang Energy Technology Co., Ltd. 3,012,051.56
Materials
Ansteel Automobile Transportation
Shipping Fee 4,496,389.98
Co.,Ltd.
Angang ShenYang Steel Service
Processing Fee 6,261.54
Center Co.,Ltd.
Angang Industrial Group (Anshan)
General
Equipment Operation & Maintenance 6,158,477.20 9,339,387.20
Contracting Fee
Co., Ltd.
Angang Industrial Group
Spare Parts 9,397,223.24 9,439,932.17
Metallurgical Machinery Co., Ltd.
Angang Industrial Group
Repair costs 1,100,790.00 1,005,720.00
Metallurgical Machinery Co., Ltd.
Angang Industrial Group Co., Ltd. Service Fee 131,145.12
Ansteel Shuangsheng (Anshan) Fan
Repair costs 215,000.00
Co., Ltd
Ansteel Water Technology (Liaoning) Professional
Co., Ltd. Service Fee
Ansteel Water Technology (Liaoning) Auxiliary
Co., Ltd. Materials
Angang Heavy Machinery Design & Engineering
Research Institute Co., Ltd. Costs
Angang Heavy Machinery Co., Ltd. Spare Parts 3,257,110.00 7,304,948.42
Angang Heavy Machinery Co., Ltd. Repair costs 377,200.00
Anshan Angang International Travel Business Travel
Agency Co., Ltd. Service Fee
Anshan Iron and Steel Group Co., Conference
Ltd. Expenses
Anshan Iron and Steel Labor
Research Institute Technology Co., Service Fee 15,962.26 15,622.64
Ltd.
Anshan Iron & Steel Metallurgical
Auxiliary
Furnace Material Technology Co., 1,990,920.55 26,520,619.29
Materials
Ltd.
Anshan Jianbo Engineering Testing Engineering
Co., Ltd. Costs
Business
Beijing Tianhongshan Hotel Co., Ltd. Entertainment 1,980.00 2,064.00
Expenses
Bengang Stainless Steel Cold Rolling
Spare Parts 805,659.29
Dandong Co., Ltd.
Bengang Stainless Steel Cold Rolling Auxiliary
Dandong Co., Ltd. Materials
Auxiliary
Bengang Electrical Co., Ltd. 182,063,694.41 182,269,804.01
Materials
Bengang Electrical Co., Ltd. Repair costs 26,005,217.60 14,005,845.47
Bengang Gaoyuan Industrial
Repair costs 4,525,056.28 5,034,146.00
Development Co., Ltd.
Notes to the financial statements Page 132
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Content of related
Related parties Current period Previous period
transactions
Bengang Gaoyuan Industrial
Spare Parts 2,319,400.00 1,286,267.43
Development Co., Ltd.
Bengang Gaoyuan Industrial Engineering
Development Co., Ltd. Costs
Bengang Group Dalian Refractory Auxiliary
Materials Co., Ltd Materials
Bengang Group International Agency Service
Economic and Trade Co., Ltd. Fee
Bengang Group Co., Ltd. Service Fee 1,683,867.92 1,683,819.02
Benxi Aike Hydraulic Sealing Co.,
Spare Parts 6,559,159.49 7,126,761.45
Ltd.
Benxi Northern Iron Industry Co.,
Raw material 5,842,124.09 201,837,093.10
Ltd.
Benxi Beiying Iron and Steel (Group)
Raw material 11,511,662,558.65 10,277,907,965.06
Co., Ltd.
Benxi Beiying Iron and Steel (Group)
Fuel 1,081,232,345.96 965,352,005.76
Co., Ltd.
Benxi Beiying Iron and Steel (Group) Energy and
Co., Ltd. Power
Benxi Beiying Iron and Steel (Group) General
Co., Ltd. Contracting Fee
Benxi Beiying Iron and Steel (Group)
Service Fee 19,203,742.48 50,307,300.75
Co., Ltd.
Benxi Beiying Iron and Steel (Group) Auxiliary
Co., Ltd. Materials
Benxi Beiying Iron and Steel (Group)
Repair costs 6,713,436.35 14,147,260.22
Co., Ltd.
Benxi Dongfenghu Steel Resource Raw Materials
Utilization Co., Ltd. and Fuels
Benxi Dongfenghu Steel Resource Auxiliary
Utilization Co., Ltd. Materials
Benxi Iron and Steel (Group) Real
Scrap steel 318,201.40
Estate Development Co., Ltd.
Benxi Iron and Steel (Group)
Engineering
Engineering Construction Supervision 3,816,036.07 1,973,663.48
Costs
Co., Ltd.
Logistics,
Transportation,
Benxi Steel and Iron(Group)Tengda
and Port 497,987,838.29 628,386,401.75
Co.,Ltd.
Miscellaneous
Fees
Benxi Steel and Iron(Group)Tengda
Fuel 56,953.76
Co.,Ltd.
Benxi Iron and Steel (Group)
Spare Parts 174,689,669.40 150,062,415.65
Machinery Manufacturing Co., Ltd.
Benxi Iron and Steel (Group) Auxiliary
Machinery Manufacturing Co., Ltd. Materials
Benxi Iron and Steel (Group) Engineering
Machinery Manufacturing Co., Ltd. Costs
Benxi Iron and Steel (Group)
Repair costs 18,848,577.95 32,903,771.81
Machinery Manufacturing Co., Ltd.
Benxi Iron and Steel (Group) General
Machinery Manufacturing Co., Ltd. Contracting Fee
Benxi Iron and Steel (Group)
Scrap steel 6,789,954.71 5,832,726.17
Machinery Manufacturing Co., Ltd.
Benxi Iron and Steel (Group) Labor
Machinery Manufacturing Co., Ltd. Outsourcing Fees
Notes to the financial statements Page 133
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Content of related
Related parties Current period Previous period
transactions
Benxi Iron and Steel (Group) Engineering
Construction Co., Ltd. Costs
Benxi Iron and Steel (Group) Raw Materials
Construction Co., Ltd. and Spare Parts
Benxi Iron and Steel (Group)
Repair costs 43,661,964.36 56,847,478.43
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Service Fees 15,060,441.42 37,928,559.17
Construction Co., Ltd.
Benxi Iron and Steel (Group) General
Construction Co., Ltd. Contracting Fee
Benxi Iron and Steel (Group) Safety production
Construction Co., Ltd. fee
Benxi Iron and Steel (Group) Packaging
Construction Co., Ltd. Materials
Benxi Iron and Steel (Group) Mining
Repair costs 18,916,783.00 17,918,450.86
Construction Engineering Co., Ltd.
Benxi Iron and Steel (Group) Mining Engineering
Construction Engineering Co., Ltd. Costs
Benxi Steel Group Mining Liaoyang
Scrap steel 238,064.10
Jiajiaopu Iron Mine Co., Ltd.
Benxi Steel Group Mining Liaoyang
Raw material 1,955,304,447.95 2,504,269,802.79
Ma'erling Pelletizing Co., Ltd.
Benxi Iron and Steel (Group) Mining
Raw material 3,847,660,317.52 4,184,701,046.59
Co., Ltd.
Benxi Iron and Steel (Group) Mining Auxiliary
Co., Ltd. Materials
Benxi Iron and Steel (Group) Mining
Scrap steel 14,188,073.88 15,430,896.37
Co., Ltd.
Benxi Iron and Steel (Group)
Thermal Power Development Co., Office Expenses 803,500.04 742,575.27
Ltd.
Benxi Iron and Steel (Group)
Thermal Power Development Co., Scrap steel 466,787.20 104,836.20
Ltd.
Benxi Iron and Steel (Group)
Thermal Power Development Co., Heating Fee 414,053.58 88,239.27
Ltd.
Benxi Steel Group Equipment
Repair costs 503,936,694.47 462,560,636.62
Engineering Co., Ltd.
Benxi Steel Group Equipment Engineering
Engineering Co., Ltd. Costs
Benxi Steel Group Equipment
Spare Parts 114,895,235.76 17,275,400.90
Engineering Co., Ltd.
Benxi Steel Group Equipment
Scrap steel 5,904,295.25 887,757.15
Engineering Co., Ltd.
Benxi Steel Group Industrial
Scrap steel 209,449,807.83 253,156,791.91
Development Co., Ltd.
Benxi Steel Group Industrial
Raw material 12,329,245.13 14,902,053.03
Development Co., Ltd.
Benxi Steel Group Industrial Auxiliary
Development Co., Ltd. Materials
Benxi Steel Group Industrial
Landscaping Fee 6,490,060.00 5,016,377.00
Development Co., Ltd.
Benxi Steel Group Industrial
Repair costs 3,816,150.00 24,274,612.53
Development Co., Ltd.
Benxi Steel Group Industrial
Shipping Fee 3,305,540.71 5,580,324.46
Development Co., Ltd.
Benxi Steel Group Industrial Scrap and Waste
Development Co., Ltd. Materials
Notes to the financial statements Page 134
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Content of related
Related parties Current period Previous period
transactions
Benxi Steel Group Information
Spare Parts 152,632,589.58 7,016,883.54
Automation Co., Ltd.
Benxi Steel Group Information Engineering
Automation Co., Ltd. Costs
Information
Benxi Steel Group Information System
Automation Co., Ltd. Operations and
Maintenance Fees
Benxi Steel Group Information
Repair costs 9,054,720.00 4,391,141.90
Automation Co., Ltd.
Benxi Iron and Steel (Group) Co., Security and Fire
LTD Protection Fees
Benxi Iron and Steel (Group) Co., Technical Service
LTD Fee
Benxi Iron and Steel (Group) Co.,
Shipping Fee 2,748,343.11 216,297.35
LTD
Benxi Iron and Steel (Group) Co., Engineering
LTD Costs
Benxi Iron and Steel (Group) Co., Energy and
LTD Power
Benxi Iron and Steel (Group) Co., Scrap and Waste
LTD Materials
Benxi Xihu Metallurgical Furnace Auxiliary
Material Co., Ltd. Materials
Benxi New Industrial Development
Service Fee 8,276,512.53 3,505,338.46
Co., Ltd.
Business
Benxi New Industrial Development
Entertainment 539,773.50 610,742.00
Co., Ltd.
Expenses
Benxi New Industrial Development
Scrap steel 22,295.00
Co., Ltd.
Benxi Yuneng Thermal Power Co., Energy and
Ltd. Power
Conference
Chengdu Pangang Hotel Co., Ltd. 949,039.62
Expenses
Auxiliary
Dalian Bolore Steel Pipe Co., Ltd. 2,043,620.46
Materials
Delin Industrial Products Co., Ltd Spare Parts 55,310,468.89 21,689,081.34
Auxiliary
Delin Industrial Products Co., Ltd 25,328,205.57 9,958,263.76
Materials
Delin Land Port Supply Chain
Other service fees 4,583,598.03 5,364,916.18
Services Co., Ltd
Delin Land Port Supply Chain
Sales Service Fee 2,417,589.52 3,103,633.08
Services Co., Ltd
Delin Land Port Supply Chain
Storage Fee 1,539,395.28 732,650.90
Services Co., Ltd
Delin Land Port Supply Chain
Raw material 548,465.82
Services Co., Ltd
Liaoning Hengtai Heavy Machinery
Spare Parts 26,352,512.62 9,935,735.98
Co., Ltd.
Liaoning Hengtai Heavy Machinery
Repair costs 23,005,807.00 24,024,198.00
Co., Ltd.
Liaoning Hengtai Heavy Machinery Safety production
Co., Ltd. fee
Liaoning Hengtai Heavy Machinery Engineering
Co., Ltd. Costs
Liaoning Hengtai Heavy Machinery General
Co., Ltd. Contracting Fee
Liaoning Hengtai Heavy Machinery Labor
Co., Ltd. Outsourcing Fees
Notes to the financial statements Page 135
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Content of related
Related parties Current period Previous period
transactions
Liaoning Hengtai Heavy Machinery
Scrap steel 307,201.60 115,824.78
Co., Ltd.
Liaoning Hengtai Heavy Machinery
Shipping Fee 258,110.25 191,560.00
Co., Ltd.
Liaoning Hengtong Metallurgical
Spare Parts 141,700,956.31 152,452,904.58
Equipment Manufacturing Co., Ltd.
Liaoning Hengtong Metallurgical
Repair costs 10,647,475.00 10,198,700.00
Equipment Manufacturing Co., Ltd.
Liaoning Lide Internet of Things Co.,
Shipping Fee 188,323,866.99 24,602,117.69
Ltd.
Liaoning Lide Internet of Things Co., General
Ltd. Contracting Fee
Liaoning Metallurgical Vocational Training Program
Technical College Fees
Liaoning Metallurgical Vocational
Office Expenses 35,417.48
Technical College
Liaoning Yitong Machinery
Spare Parts 23,426,479.58 12,814,141.11
Manufacturing Co., Ltd.
Liaoning Yitong Machinery
Scrap steel 259,947.08 142,189.46
Manufacturing Co., Ltd.
Liaoning Yitong Machinery
Repair costs 81,128.33 46,204.61
Manufacturing Co., Ltd.
Lingyuan Iron & Steel Group Co.,
Fuel 9,268,227.70
Ltd.
Pangang Group Chengdu Vanadium
Auxiliary
& Titanium Resources Development 9,240,815.38 2,361,588.46
Materials
Co., Ltd.
Pangang Group Engineering Engineering
Technology Consulting Co., Ltd. Costs
Shanxi Materials International Energy
Fuel 21,171,289.92
Co., Ltd.
Shenyang Angang International Trade
Raw material 46,156,805.68
Co.,Ltd.
Tianjin Bengang Plate Processing &
Processing Fee 391,401.34 1,300,732.50
Distribution Co., Ltd.
Tianjin Bengang Plate Processing &
Storage Fee 14,635.26 3,549.41
Distribution Co., Ltd.
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
Angang Steel Processing and Warehousing
Distribution (Dalian) Co., Ltd. Revenue
Angang Steel Processing and Steel and Steel
Distribution (Dalian) Co., Ltd. Products
Angang Steel Processing and Processing
Distribution (Dalian) Co., Ltd. Income
Notes to the financial statements Page 136
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Content of related
Related parties Current period Previous period
transactions
Angang Steel Processing and Steel and Steel
Distribution (Changchun) Co., Ltd. Products
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 6,093,129.73 923,408.47
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 81,332.01 47,707.68
Technology Co., Ltd.
Steel and Steel
Products,
Angang Group International
Chemicals and 228,316,260.00
Economic & Trading Co., Ltd.
By-products,
Energy and Power
Angang Group International
Economic & Trade Co., Ltd. — Rental Income 1,882,438.68
Benxi Branch
Angang Group Energy-Saving
Energy and Power 3,634,627.65
Technology Services Co., Ltd.
Ansteel Group Co., Ltd Energy and Power 8,611.80 1,613.64
Angang Construction Group Co., Ltd. Energy and Power 8,781.12
Angang Mining Machinery Steel and Steel
Manufacturing Co., Ltd. Products
Raw and
Angang Green Resources Technology
Auxiliary 18,949,004.26 42,248,746.78
Co., Ltd.
Materials
Chemicals and
Angang Energy Technology Co., Ltd. 20,588,079.91 25,955,120.37
By-products
Logistics and
Angang ShenYang Steel Service
Transportation 5,583.98 474,927.84
Center Co.,Ltd.
Revenue
Angang Industrial Group Steel and Steel
Metallurgical Machinery Co., Ltd. Products
Ansteel Water Technology (Liaoning)
Energy and Power 8,387,582.70
Co., Ltd.
Angang Tendering Co., Ltd. Energy and Power 22,215.96
Angang Tendering Co., Ltd. Rental Income 902,511.86
Ansteel Cast Steel Co., Ltd. Scrap steel 2,319,678.10
Other Service
Bengang Electrical Co., Ltd. 5,770.61 107.35
Income
Bengang Gaoyuan Industrial
Energy and Power 200.01
Development Co., Ltd.
Bengang Group Dalian Refractory Steel and Steel
Materials Co., Ltd Products
Ben Steel Group Co., Ltd Energy and Power 182,800.50 2,823,645.00
Scrap Steel,
Benxi Northern Iron Industry Co.,
Auxiliary 176,768,061.62 84,620,440.80
Ltd.
Materials, Raw
Notes to the financial statements Page 137
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Content of related
Related parties Current period Previous period
transactions
Materials
Raw and
Benxi Beifang Steel Rolling Co.,Ltd. Auxiliary 1,106,623.83 1,305,509.83
Materials
Benxi Beiying Iron and Steel (Group)
Energy and Power 56,342,466.22
Co., LTD
Benxi Beiying Iron and Steel (Group) Other Service
Co., LTD Income
Raw and
Benxi Beiying Iron and Steel (Group)
Auxiliary 124,771,137.44 272,771,274.28
Co., LTD
Materials
Benxi Dongfenghu Steel Resource Chemicals and
Utilization Co., Ltd. By-products
Benxi Dongfenghu Steel Resource
Analytical Testing 38,632.07 52,961.92
Utilization Co., Ltd.
Benxi Dongfenghu Steel Resource
Energy and Power 4,062,613.19 5,569,564.16
Utilization Co., Ltd.
Raw and
Benxi Dongfenghu Steel Resource
Auxiliary 2,538,277.48 3,479,804.41
Utilization Co., Ltd.
Materials
Benxi Iron and Steel (Group) Real
Energy and Power 3,357.39 23,160.82
Estate Development Co., Ltd.
Benxi Iron and Steel (Group)
Engineering Construction Supervision Energy and Power 1,518.81 1,909.73
Co., Ltd.
Benxi Iron and Steel (Group) Processing
Machinery Manufacturing Co., LTD Income
Benxi Iron and Steel (Group)
Analytical Testing 332,499.99 246,441.91
Machinery Manufacturing Co., LTD
Benxi Iron and Steel (Group)
Energy and Power 9,406,307.11 6,971,754.52
Machinery Manufacturing Co., LTD
Logistics and
Benxi Iron and Steel (Group)
Warehousing 1,128.28 836.26
Machinery Manufacturing Co., LTD
Revenue
Raw and
Benxi Iron and Steel (Group)
Auxiliary 15,549,468.75 11,524,935.11
Machinery Manufacturing Co., LTD
Materials
Benxi Iron and Steel (Group)
Analytical Testing 5,033.20
Construction Co., Ltd
Benxi Iron and Steel (Group)
Energy and Power 2,053,712.95 2,009,079.40
Construction Co., Ltd
Benxi Iron and Steel (Group) Mining Steel and Steel
Construction Engineering Co., Ltd. Products
Benxi Iron and Steel (Group) Mining
Energy and Power 129,012.84 124,942.95
Construction Engineering Co., Ltd.
Benxi Steel Group Mining Liaoyang
Analytical Testing 349,416.98
Jiajiaopu Iron Mine Co., Ltd.
Benxi Steel Group Mining Liaoyang
Energy and Power 20,539.26 26,844.93
Jiajiaopu Iron Mine Co., Ltd.
Benxi Steel Group Mining Liaoyang
Testing Fee 415,446.22
Ma'erling Pelletizing Co., Ltd.
Benxi Steel Group Mining Liaoyang
Energy and Power 5,766.27 8,223.26
Ma'erling Pelletizing Co., Ltd.
Notes to the financial statements Page 138
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Content of related
Related parties Current period Previous period
transactions
Benxi Steel Group Mining Liaoyang
Fuel 40,118,126.87 57,212,321.32
Ma'erling Pelletizing Co., Ltd.
Benxi Iron and Steel (Group) Mining
Other Service
Yanjia Valley Limestone Mine Co., 34,777.36
Income
Ltd.
Benxi Iron and Steel (Group) Mining Steel and Steel
Co., LTD Products
Benxi Iron and Steel (Group) Mining Chemicals and
Co., LTD By-products
Benxi Iron and Steel (Group) Mining
Energy and Power 171,262,470.82 5,063,011.87
Co., LTD
Benxi Iron and Steel (Group) Mining Other Service
Co., LTD Income
Benxi Iron and Steel (Group) Mining
Fuel 57,489,832.86 1,699,565.03
Co., LTD
Benxi Iron and Steel (Group)
Thermal Power Development Co., Testing Fee 150,535.85
Ltd.
Benxi Iron and Steel (Group)
Fuels, Energy,
Thermal Power Development Co., 55,147,166.11 46,021,096.45
and Power
Ltd.
Benxi Iron and Steel (Group) Steel and Steel
Equipment Engineering Co., LTD Products
Benxi Iron and Steel (Group)
Testing Fee 4,685.09
Equipment Engineering Co., LTD
Benxi Iron and Steel (Group)
Energy and Power 1,936,577.72 13,011,811.73
Equipment Engineering Co., LTD
Benxi Iron and Steel (Group) Scrap and Waste
Industrial Development Co., LTD Materials
Benxi Iron and Steel (Group)
Testing Fee 377.36 444.85
Industrial Development Co., LTD
Benxi Iron and Steel (Group)
Energy and Power 9,597,087.14 11,313,590.06
Industrial Development Co., LTD
Raw and
Benxi Iron and Steel (Group)
Auxiliary 99,695,822.06 117,527,083.48
Industrial Development Co., LTD
Materials
Benxi Steel Group Information
Energy and Power 382,134.53 488,917.53
Automation Co., Ltd.
Benxi Iron and Steel (Group) Co., Auxiliary
LTD Materials
Benxi Iron and Steel (Group) Co.,
Energy and Power 10,382,274.20 10,288,004.69
LTD
Benxi Xihu Metallurgical Furnace
Energy and Power 394,801.50 236,195.71
Material Co., Ltd.
Benxi Weld Phosphate Overlay
Energy and Power 29,969.87 50,861.74
Manufacturing Co., Ltd.
Benxi New Industrial Development
Energy and Power 340,823.18 224,031.67
Co., Ltd.
Benxi New Industrial Development Other Service
Co., Ltd. Income
Benxi New Industrial Development
Rental Income 24,500.00
Co., Ltd.
Benxi Yuneng Thermal Power Co.,
Energy and Power 65,880,688.53
Ltd.
Notes to the financial statements Page 139
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Content of related
Related parties Current period Previous period
transactions
Chengdu Xingyun Smart Technology Information
Co., Ltd. Technology
Steel and Steel
Dalian Bolore Steel Pipe Co., Ltd. 441,221.12 10,870,375.21
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
Testing Fee 4,814.15
Co., Ltd.
Liaoning Hengtai Heavy Machinery
Energy and Power 697.03
Co., Ltd.
Scrap Steel, Raw
Liaoning Hengtong Metallurgical
and Auxiliary 26,162,534.93 29,992,686.48
Equipment Manufacturing Co., Ltd.
Materials
Liaoning Hengtong Metallurgical
Testing Fee 155,235.85
Equipment Manufacturing Co., Ltd.
Liaoning Slag Micro-powder Co.,
Testing Fee 13,635.85
Ltd.
Liaoning Lide Internet of Things Co.,
Energy and Power 64,442.33
Ltd.
Liaoning Yitong Machinery
Testing Fee 1,910.38
Manufacturing Co., Ltd.
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
Tianjin Angang Steel Processing & Steel and Steel
Distribution Co., Ltd. Products
Tianjin Bengang Plate Processing & Steel and Steel
Distribution Co., Ltd. Products
Tianjin Bengang Plate Processing & Other Service
Distribution Co., Ltd. Income
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
Warehousing 2,971.66
Processing & Distribution Co., Ltd.
Revenue
Steel and Steel
China Ordins Group Co., Ltd. 1,012,611,108.50 2,691,935,623.60
Products
Company as lessor：
Lease income
Type of leasing Lease income of
of previous
Lessee assets current period
period
Notes to the financial statements Page 140
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Lease income
Type of leasing Lease income of
of previous
Lessee assets current period
period
Factory buildings
Benxi Steel & Iron (Group) Steel & Iron
and ancillary 108,980.00
Process and Logistics Co., Ltd.
equipment
Factory buildings
Benxi Steel (Group) Machinery
and ancillary 670,802.00
Manufacturing Co., Ltd.
equipment
Factory buildings
Bengang Group International Economic
and ancillary 1,957,007.77
and Trade Co., Ltd.
equipment
Factory buildings
Benxi New Industrial Development Co.,
and ancillary 24,500.00
Ltd.
equipment
Factory buildings
Angang Tendering Co., Ltd. — Benxi
and ancillary 902,511.86
Branch
equipment
Factory buildings
Angang Group International Economic &
and ancillary 1,882,438.68
Trade Co., Ltd. — Benxi Branch
equipment
Notes to the financial statements Page 141
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
Land use right
Benxi Steel 7,669,068.17
& Iron square meter 55,277,544. 36,985,912.
(Group) Co., Land use right
Ltd. 42,920.00
square meter
Benxi Steel 2300 Hot
& Iron rolling product 16,098,161. 6,603,587.3
(Group) Co., line, related
Ltd. real estate
Benxi 1780 Hot 72 0
Notes to the financial statements Page 142
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 2 3
Ltd. square meter
Angang
Group
Energy-Savin Machinery and 10,499,986. 3,757,252.2 255,128,
g Technology equipment
Services Co.,
Ltd.
Notes to the financial statements Page 143
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 New
Business 120,000.0
Land Lease 0
Development
Co., Ltd.
Benxi Iron &
Steel (Group) Transport 15,288,57
Construction Equipment
Co., Ltd.
Benxi Iron &
Steel (Group)
Transport 418,680.0 299,057.1
Machinery 0 4
Equipment
Manufacturin
g Co., Ltd.
Notes to the financial statements Page 144
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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
Yuneng
Machinery and 61,062,500. 4,907,391.2 934,741,
Thermal 00 5 189.81
Equipment
Power Co.,
Ltd.
Anzi
(Tianjin)
Machinery and 6,790,154.
Financial 51
Equipment
Leasing Co.,
Ltd.
Notes to the financial statements Page 145
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Units: in 10 thousand
Items Current period Previous period
Remuneration of key management
personnel
Other Notes: For 2024, Key Management Personnel comprised Senior
Management, Directors, and Supervisors; for 2025, Key Management Personnel
comprise Senior Management and Directors. In accordance with the 2025
disclosure requirements, the remuneration for Key Management Personnel in the
preceding year amounted to RMB 3.11 million.
（6） Receivables and payables of the related parties
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Angang Steel
Accounts Processing and
receivable Distribution
(Dalian) Co., Ltd.
Ansteel Steel
Accounts
Distribution 343,341.92 343,341.92
receivable
(Wuhan) Co., Ltd.
Accounts Angang Steel
receivable Company Limited
Angang Group
Accounts Engineering &
receivable Technology Co.,
Ltd.
Angang Group
International
Accounts
Economic & Trade 663,734,937.01 6,637,349.37
receivable
Co., Ltd. — Benxi
Branch
Angang Green
Accounts Resources
receivable Technology Co.,
Ltd.
Angang Energy
Accounts
Technology Co., 3,911,318.52 39,113.19
receivable
Ltd.
Ansteel Water
Accounts
Technology 9,476,960.09 94,769.60
receivable
(Liaoning) Co., Ltd.
Bengang Group
Accounts International
receivable Economic and
Trade Co., Ltd.
Bengang
Accounts
Automotive 5,425.66 54.26
receivable
Transport Co., Ltd.
Notes to the financial statements Page 146
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Accounts Benxi Northern Iron
receivable Industry Co., Ltd.
Accounts Benxi Beifang Steel
receivable Rolling Co.,Ltd.
Benxi Beiying Iron
Accounts
and Steel (Group) 19,945,828.68 199,458.29 143,872.00 1,438.72
receivable
Co., LTD
Benxi Dongfenghu
Accounts
Steel Resource 333,779.18 3,337.79 454,258.02 4,542.58
receivable
Utilization Co., Ltd.
Benxi Iron and
Steel (Group)
Accounts
Machinery 3,398,120.05 33,981.20
receivable
Manufacturing Co.,
LTD
Benxi Iron and
Accounts Steel (Group)
receivable Construction Co.,
Ltd
Benxi Iron and
Steel (Group)
Accounts Mining
receivable Construction
Engineering Co.,
Ltd.
Benxi Iron & Steel
(Group) Mining &
Accounts
Mineral Resources 88,983.85 17,796.77 88,983.85 8,898.39
receivable
Development Co.,
Ltd.
Benxi Steel Group
Accounts Mining Liaoyang
receivable Jiajiaopu Iron Mine
Co., Ltd.
Benxi Steel Group
Accounts Mining Liaoyang
receivable Ma'erling
Pelletizing Co., Ltd.
Benxi Iron and
Steel (Group)
Accounts
Mining Yanjia 36,864.00 368.64 13,714.00 137.14
receivable
Valley Limestone
Mine Co., Ltd.
Benxi Iron and
Accounts
Steel (Group) 14,459,984.49 144,599.84 2,184,958.74 21,849.59
receivable
Mining Co., LTD
Benxi Iron and
Steel (Group)
Accounts
Thermal Power 7,474,879.91 74,748.80 6,744,686.82 246,075.39
receivable
Development Co.,
Ltd.
Benxi Iron and
Steel (Group)
Accounts
Equipment 439,269.47 37,697.79 1,903,696.41 39,634.20
receivable
Engineering Co.,
LTD
Benxi Iron and
Accounts
Steel (Group) 5,815,109.99 58,151.10 6,964,699.57 69,647.00
receivable
Industrial
Notes to the financial statements Page 147
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Development Co.,
LTD
Benxi Steel Group
Accounts Information
receivable Automation Co.,
Ltd.
Benxi Iron and
Accounts
Steel (Group) Co., 197,118.63 1,971.19 1,700,740.58 17,007.41
receivable
LTD
Benxi Xihu
Accounts Metallurgical
receivable Furnace Material
Co., Ltd.
Benxi Weld
Accounts Phosphate Overlay
receivable Manufacturing Co.,
Ltd.
Benxi New
Accounts Industrial
receivable Development Co.,
Ltd.
Guangzhou Ansteel
Accounts
Steel Processing 3,200,080.63 32,000.81
receivable
Co., Ltd.
Liaoning Hengtong
Metallurgical
Accounts
Equipment 54,010.30 540.1
receivable
Manufacturing Co.,
Ltd.
Liaoning Slag
Accounts
Micro-powder Co., 12,848.00 128.48
receivable
Ltd.
Liaoning Lide
Accounts
Internet of Things 12,039.75 120.4
receivable
Co., Ltd.
Pangang Group
Accounts Jiangyou Great
receivable Wall Special Steel
Co., Ltd.
MCC South
Accounts Engineering &
receivable Technology Co.,
Ltd.
Angang Steel
Processing and
Prepayments 317,756.00
Distribution
(Dalian) Co., Ltd.
Angang Steel
Processing and
Prepayments Distribution 14,245.92 663.59
(Changchun) Co.,
Ltd.
Angang Steel
Prepayments 561,163.77 484,808.79
Company Limited
Angang Group
International
Prepayments 35,372,892.55 0.01
Economic &
Trading Co., Ltd.
Notes to the financial statements Page 148
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Angang Group
International
Prepayments Economic & Trade 44,117,532.53
Co., Ltd. — Benxi
Branch
Benxi Beiying Iron
Prepayments and Steel (Group) 29,562,250.68 4,874,319.39
Co., LTD
Benxi Iron and
Steel (Group)
Prepayments Machinery 318,579.31
Manufacturing Co.,
LTD
Benxi Iron and
Steel (Group)
Prepayments Equipment 3,245,781.89 3,162,173.15
Engineering Co.,
LTD
Benxi Steel Group
Information
Prepayments 581,838.17 575,313.17
Automation Co.,
Ltd.
Benxi New
Industrial
Prepayments 6,867,713.50 7,196,737.50
Development Co.,
Ltd.
Other Angang Steel
receivables Company Limited
Other Ansteel Group Co.,
receivables Ltd
Bengang Stainless
Other
Steel Cold Rolling 84,855.74 8,485.57 1,030,000.00 10,300.00
receivables
Dandong Co., Ltd.
Other Ben Steel Group
receivables Co., Ltd
Benxi Iron and
Other Steel (Group)
receivables Construction Co.,
Ltd
Benxi Iron and
Other
Steel (Group) Co., 2,674,500.00 413,000.00 2,674,500.00 157,740.00
receivables
LTD
Benxi Gaoxin
Other Drilling Tools
receivables Manufacturing Co.,
Ltd.
Liaoning Lide
Other
Internet of Things 1,881,016.00 18,810.16
receivables
Co., Ltd.
Angang Group
Other
Engineering &
non-current 1,968,632.21
Technology Co.,
assets
Ltd.
Angang Group
Other International
non-current Economic & Trade 8,213,719.14
assets Co., Ltd. — Benxi
Branch
Notes to the financial statements Page 149
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Name Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Bengang Gaoyuan
Other
Industrial
non-current 542,400.00
Development Co.,
assets
Ltd.
Benxi Iron and
Other
Steel (Group)
non-current 19,602,615.33 19,936,615.33
Construction Co.,
assets
Ltd
Benxi Iron and
Steel (Group)
Other
Mining
non-current 2,210,879.80 3,102,019.08
Construction
assets
Engineering Co.,
Ltd.
Benxi Iron and
Other Steel (Group)
non-current Equipment 11,975,916.33 12,686,042.92
assets Engineering Co.,
LTD
Benxi Iron and
Other Steel (Group)
non-current Industrial 562,392.14 562,392.14
assets Development Co.,
LTD
Benxi Steel Group
Other
Information
non-current 647,592.46 7,692,252.35
Automation Co.,
assets
Ltd.
Other Liaoning Hengtai
non-current Heavy Machinery 37,496.00 5,895,416.00
assets Co., Ltd.
Items Related party 2025/12/31 2024/12/31
Account payables Angang Electrical Co., Ltd. 542,993.20 63,861.90
Angang Scrap Resources
Account payables 2,018,855.66 90,856,997.04
(Anshan) Co., Ltd.
Angang Steel Processing &
Account payables Distribution (Changchun) Co., 103,452.29 108,462.46
Ltd.
Account payables Angang Steel Rope Co., Ltd. 535,865.47
Account payables Angang Steel Company Limited 417,943.15 417,943.09
Ansteel Group Railway
Account payables Equipment Checking & Repairing 248,392.08
Company
Angang Group Engineering
Account payables 221,880.02 85,440.00
Technology Co., Ltd.
Angang Group International
Account payables 42,087,343.55 193,806.42
Economic & Trade Co., Ltd.
Angang Group Mining
Account payables 116,768,098.39 774,734.40
Gongchangling Co., Ltd.
Notes to the financial statements Page 150
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Related party 2025/12/31 2024/12/31
Angang Mining Construction Co.,
Account payables 3,244,303.87
Ltd.
Angang Mining Automotive
Account payables 324,680.50
Transportation Co., Ltd.
Angang Green Resources
Account payables 1,525,088.24
Technology Co., Ltd.
Angang Energy Technology Co.,
Account payables 296,477.37
Ltd.
Ansteel Automobile
Account payables 4,409,095.38
Transportation Co., Ltd.
Angang Industrial Group
Account payables (Anshan) Equipment Operation &
Maintenance Co., Ltd.
Angang Industrial Group
Account payables Metallurgical Machinery Co., 3,701,643.08 3,048,409.40
Ltd.
Ansteel Shuangsheng (Anshan)
Account payables 24,295.00
Fan Co., Ltd
Ansteel Water Technology
Account payables 33,650,652.24
(Liaoning) Co., Ltd.
Angang Heavy Machinery Co.,
Account payables 1,760,278.00 2,480,080.39
Ltd.
Anshan Iron & Steel
Account payables Metallurgical Furnace Material 524,299.30 2,641,730.70
Technology Co., Ltd.
Anshan Jianbo Engineering
Account payables 187,620.00
Testing Co., Ltd.
Bengang Stainless Steel Cold
Account payables 109,338.10
Rolling Dandong Co., Ltd.
Account payables Bengang Electrical Co., Ltd. 6,089,528.32 2,692,262.89
Bengang Gaoyuan Industrial
Account payables 878,009.43 3,969,044.08
Development Co., Ltd.
Bengang Group Dalian
Account payables 1,007,742.98 1,487,446.42
Refractory Materials Co., Ltd
Bengang Group International
Account payables 55,290,633.89 50,692,605.67
Economic and Trade Co., Ltd.
Account payables Bengang Group Co., Ltd. 4,688,239.05 4,688,239.05
Bengang Automotive Transport
Account payables 7,781,443.76
Co., Ltd.
Benxi Aike Hydraulic Sealing
Account payables 1,854,069.53 2,778,115.83
Co., Ltd.
Benxi Northern Iron Industry Co.,
Account payables 154,811.36 73,671.74
Ltd.
Benxi Beiying Iron and Steel
Account payables 1,722,301.48 79,183,767.61
(Group) Co., Ltd.
Benxi Dongfenghu Steel
Account payables 1,738,248.20 2,794,117.30
Resource Utilization Co., Ltd.
Benxi Iron and Steel (Group)
Account payables Real Estate Development Co., 89,735.06 89,735.06
Ltd.
Benxi Iron and Steel (Group)
Account payables Engineering Construction 97,970.00
Supervision Co., Ltd.
Notes to the financial statements Page 151
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Related party 2025/12/31 2024/12/31
Benxi Steel and Iron
Account payables 61,267,825.22 46,335,396.72
(Group)Tengda Co., Ltd.
Benxi Iron and Steel (Group)
Account payables Machinery Manufacturing Co., 41,328,266.38 10,659,752.69
Ltd.
Benxi Iron & Steel (Group)
Account payables Construction Advanced 264,705.62 264,705.62
Decoration Co., Ltd.
Benxi Iron and Steel (Group)
Account payables 30,611,624.28 29,543,424.37
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Account payables Mining Construction Engineering 11,074,458.13 12,083,876.39
Co., Ltd.
Benxi Steel Group Mining
Account payables Liaoyang Jiajiaopu Iron Mine 29,642.17
Co., Ltd.
Benxi Steel Group Mining
Account payables Liaoyang Ma'erling Pelletizing 4,166,130.41 10,282,360.99
Co., Ltd.
Benxi Iron and Steel (Group)
Account payables 116,498,925.34 59,008,517.39
Mining Co., Ltd.
Benxi Iron and Steel (Group)
Account payables Thermal Power Development Co., 200,647.49 12,362.40
Ltd.
Benxi Steel Group Equipment
Account payables 176,946,939.95 92,630,122.46
Engineering Co., Ltd.
Benxi Steel Group Industrial
Account payables 45,976,044.04 53,022,441.36
Development Co., Ltd.
Benxi Steel Group Information
Account payables 27,951,632.92 23,459,353.69
Automation Co., Ltd.
Benxi Iron and Steel (Group) Co.,
Account payables 19,131,787.26 28,808,379.76
LTD
Benxi Gaoxin Drilling Tools
Account payables 0.03
Manufacturing Co., Ltd.
Benxi Xihu Metallurgical Furnace
Account payables 26,922,238.21 17,171,380.52
Material Co., Ltd.
Benxi Weld Phosphate Overlay
Account payables 37,542.84 234,112.13
Manufacturing Co., Ltd.
Benxi New Industrial
Account payables 2,564,586.37 38,700.00
Development Co., Ltd.
Benxi Yuneng Thermal Power
Account payables 57,929,876.17
Co., Ltd.
Account payables Dalian Bolore Steel Pipe Co., Ltd. 1,007,742.98
Account payables Delin Industrial Products Co., Ltd 32,478,323.08 11,409,283.88
Delin Land Port Supply Chain
Account payables 542,696.24 7,713.30
Services Co., Ltd
Heilongjiang Longmei Mining
Account payables 6,165.02
Group Co., Ltd.
Hongda Engineering Technology
Account payables
(Liaoning) Co., Ltd.
Liaoning Hengtai Heavy
Account payables 13,525,100.18 13,479,975.49
Machinery Co., Ltd.
Notes to the financial statements Page 152
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Related party 2025/12/31 2024/12/31
Liaoning Hengtong Metallurgical
Account payables Equipment Manufacturing Co., 14,245,092.81 7,166,704.73
Ltd.
Liaoning Lide Internet of Things
Account payables 14,876,486.42 7,230,457.06
Co., Ltd.
Liaoning Metallurgical
Account payables 341,428.00 517,768.00
Vocational Technical College
Liaoning Yitong Machinery
Account payables 7,836,142.40 4,599,719.45
Manufacturing Co., Ltd.
Lingyuan Iron & Steel Group Co.,
Account payables 158,290.35
Ltd.
Shanxi Materials International
Account payables
Energy Co., Ltd.
Shenyang Angang International
Account payables 52,157,190.42
Trade Co., Ltd.
Shenyang Xiangyu New
Account payables 5,321,326.65
Materials Technology Co., Ltd.
Tianjin Bengang Plate Processing
Account payables 487.99
& Distribution Co., Ltd.
Angang (Liaoning) Materials
Other payables 231,080.00 300,000.00
Technology Co., Ltd.
Angang Scrap Resources
Other payables 500,000.00 500,000.00
(Anshan) Co., Ltd.
Angang Engineering, Production,
Other payables Operations & Maintenance 10,000.00
(Anshan) Co., Ltd.
Angang Group Engineering
Other payables 328,323,471.32 114,249,580.71
Technology Co., Ltd.
Angang Group International
Other payables 19,873,739.81
Economic & Trade Co., Ltd.
Angang Group Automation Co.,
Other payables 14,175,000.00 7,332,129.00
Ltd.
Angang Construction Group Co.,
Other payables 63,085,702.32 3,319,522.94
Ltd.
Other payables Angang Metal Structure Co., Ltd. 10,000.00
Angang Heavy Machinery Design
Other payables 826,121.54 826,121.54
& Research Institute Co., Ltd.
Angang Heavy Machinery Co.,
Other payables 1,040,012.56 1,040,012.56
Ltd.
Anshan Angang International
Other payables 1,175.00
Travel Agency Co., Ltd.
Anshan Iron & Steel
Other payables Metallurgical Furnace Material 50,000.00 50,000.00
Technology Co., Ltd.
Anshan Jianbo Engineering
Other payables 21,200.00
Testing Co., Ltd.
Beijing Zhongliangang
Other payables 10,000.00
E-commerce Co., Ltd.
Other payables Bengang Electrical Co., Ltd. 4,436,730.79 776,394.34
Bengang Gaoyuan Industrial
Other payables 6,264,369.57 5,005,617.56
Development Co., Ltd.
Notes to the financial statements Page 153
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Related party 2025/12/31 2024/12/31
Bengang Group Dalian
Other payables 20,000.00
Refractory Materials Co., Ltd
Bengang Group International
Other payables 74,855,543.30 66,120,363.96
Economic and Trade Co., Ltd.
Other payables Bengang Group Co., Ltd. 205,343,448.25 264,897,561.47
Bengang Automotive Transport
Other payables 1,141,388.25
Co., Ltd.
Benxi Aike Hydraulic Sealing
Other payables 58,590.00 58,590.00
Co., Ltd.
Benxi Beiying Iron and Steel
Other payables 7,282,312.51 7,766,352.17
(Group) Co., Ltd.
Benxi Dongfenghu Steel
Other payables 210,000.00 210,000.00
Resource Utilization Co., Ltd.
Benxi Iron and Steel (Group)
Other payables Engineering Construction 4,357,143.03 1,488,917.43
Supervision Co., Ltd.
Benxi Iron and Steel (Group)
Other payables Machinery Manufacturing Co., 47,825,817.72 3,792,085.01
Ltd.
Benxi Iron & Steel (Group)
Other payables 735,280.00
Inspection & Testing Co., Ltd.
Benxi Iron & Steel (Group)
Other payables Construction Advanced 103,738.55 123,738.55
Decoration Co., Ltd.
Benxi Iron and Steel (Group)
Other payables 280,668,215.31 217,077,997.48
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Other payables Mining Construction Engineering 6,975,860.52 7,550,015.30
Co., Ltd.
Benxi Iron & Steel (Group) Road
Other payables & Bridge Construction 318.66
Engineering Co., Ltd.
Benxi Iron and Steel (Group)
Other payables Thermal Power Development Co., 5,939,555.04 697,337.92
Ltd.
Benxi Steel Group Equipment
Other payables 578,263,720.60 724,514,695.24
Engineering Co., Ltd.
Benxi Steel Group Industrial
Other payables 3,444,007.73 1,412,218.05
Development Co., Ltd.
Benxi Steel Group Information
Other payables 238,531,102.78 108,472,109.63
Automation Co., Ltd.
Benxi Iron and Steel (Group) Co.,
Other payables 40,544,440.05 52,720,523.82
LTD
Benxi Xihu Metallurgical Furnace
Other payables 100,000.00 100,000.00
Material Co., Ltd.
Benxi New Industrial
Other payables 6,849,133.66 13,997,378.10
Development Co., Ltd.
Other payables Dalian Bolore Steel Pipe Co., Ltd. 20,000.00
Other payables Delin Industrial Products Co., Ltd 10,359.99
Delin Land Port Supply Chain
Other payables 1,250,000.00
Services Co., Ltd
Notes to the financial statements Page 154
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Related party 2025/12/31 2024/12/31
Hongda Engineering Technology
Other payables 1,479.36
(Liaoning) Co., Ltd.
Liaoning Hengtai Heavy
Other payables 8,943,894.94 5,024,204.94
Machinery Co., Ltd.
Liaoning Hengyi Steel Trade
Other payables 11,758,998.02 11,758,998.02
Co., Ltd.
Liaoning Metallurgical
Other payables 20,561.00 0.01
Technician College
Liaoning Metallurgical
Other payables 390,110.00 353,630.00
Vocational Technical College
Liaoning Yitong Machinery
Other payables 372,123.61 330,463.37
Manufacturing Co., Ltd.
Pangang Group Engineering
Other payables 517,972.47
Technology Consulting Co., Ltd.
Changchun FAW Angang Steel
Other payables Processing & Distribution Co., 7,500.00
Ltd.
MCC Northern Engineering &
Other payables 200,000.00
Technology Co., Ltd.
MCC South Engineering &
Other payables 8,826,046.90
Technology Co., Ltd.
MCC-CEI Engineering
Other payables 393,250.01
Technology Co., Ltd.
Angang (Hangzhou) Automotive
Contract liabilities 2,025,506.35 644,589.93
Materials Technology Co., Ltd.
Angang Steel Processing &
Contract liabilities 1,018.12
Distribution (Dalian) Co., Ltd.
Angang Steel Processing &
Contract liabilities Distribution (Changchun) Co., 427,186.59 2,826,567.07
Ltd.
Angang Steel Processing &
Contract liabilities Distribution (Zhengzhou) Co., 243,332.37
Ltd.
Angang Steel Distribution (Hefei)
Contract liabilities 1,889,663.02 3,099,204.80
Co., Ltd.
Angang Steel Distribution
Contract liabilities 717,523.80 731,023.72
(Wuhan) Co., Ltd.
Contract liabilities Angang Steel Company Limited 248,811.04 675,535.16
Angang Chemical Technology
Contract liabilities 12,924,085.33 10,758,548.27
Co., Ltd.
Angang Group International
Contract liabilities 1,671,004.51 649,732.04
Economic & Trade Co., Ltd.
Angang Mining Machinery
Contract liabilities 136.07 354,001.32
Manufacturing Co., Ltd.
Angang Green Resources
Contract liabilities 477,418.26
Technology Co., Ltd.
Angang Energy Technology Co.,
Contract liabilities 0.02
Ltd.
Angang ShenYang Steel Service
Contract liabilities 87,869.94
Center Co., Ltd.
Angang Industrial Group
Contract liabilities Metallurgical Machinery Co., 12,992.52
Ltd.
Notes to the financial statements Page 155
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Related party 2025/12/31 2024/12/31
Bengang Group Dalian
Contract liabilities 798,522.40 4,203,125.16
Refractory Materials Co., Ltd
Bengang Group International
Contract liabilities 9,843,810.08
Economic and Trade Co., Ltd.
Benxi Beiying Iron and Steel
Contract liabilities 8,495,254.41 6,329,389.09
(Group) Co., Ltd.
Benxi Dongfenghu Steel
Contract liabilities 4,038,112.95 4,881,014.65
Resource Utilization Co., Ltd.
Benxi Steel and Iron
Contract liabilities 190,255.10
(Group)Tengda Co., Ltd.
Benxi Iron and Steel (Group)
Contract liabilities Machinery Manufacturing Co., 1,035,651.33 5,552.80
Ltd.
Benxi Iron and Steel (Group)
Contract liabilities 39,135.82 39,135.82
Construction Co., Ltd.
Benxi Iron and Steel (Group)
Contract liabilities 4,135,552.29 510,246.41
Mining Co., Ltd.
Benxi Iron and Steel (Group)
Contract liabilities Thermal Power Development Co., 49.23 8,620,006.55
Ltd.
Benxi Steel Group Industrial
Contract liabilities 8,514,062.43 10,393,122.80
Development Co., Ltd.
Benxi Iron & Steel (Group)
Contract liabilities 0.01
Metallurgical Slag Co., Ltd.
Benxi Xihu Metallurgical Furnace
Contract liabilities 20,000.00 20,000.00
Material Co., Ltd.
Contract liabilities Dalian Bolore Steel Pipe Co., Ltd. 3,191,247.16
Delin Land Port Supply Chain
Contract liabilities 520,753,057.71 305,864,435.81
Services Co., Ltd
Guangzhou Angang Steel
Contract liabilities 500,000.00
Processing Co., Ltd.
Liaoning Hengtong Metallurgical
Contract liabilities Equipment Manufacturing Co., 5,064,025.37 3,278,592.93
Ltd.
Liaoning Metallurgical
Contract liabilities 0.01
Vocational Technical College
Panzhong Yihong Metal Products
Contract liabilities 22,203.73
(Chongqing) Co., Ltd.
Shenyang Angang International
Contract liabilities 77,077.62
Trade Co., Ltd.
Tianjin Angang Steel Processing
Contract liabilities 1,619,646.79 4,824,582.32
& Distribution Co., Ltd.
Tianjin Bengang Plate Processing
Contract liabilities 6,576,579.15
& Distribution Co., Ltd.
Changchun FAW Angang Steel
Contract liabilities Processing & Distribution Co., 5,486,624.22 8,200,175.36
Ltd.
Contract liabilities China Ordins Group Co., Ltd. 151,750,367.82 236,678,427.35
Notes to the financial statements Page 156
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
（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
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 2025/12/31 2024/12/31
Notes to the financial statements Page 157
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Gross carrying Provision for Gross carrying Provision for
amount bad debts amount bad debts
Cash at bank and on
hand
Total 194,746,442.77 1,227,198,770.48
Including: funds
restricted due to
centralized management
of funds
（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
Notes to the financial statements Page 158
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
related-party transaction has been reviewed and approved by the Company’s 8th Board of
Directors at its 3rd meeting.
(4) As of December 31, 2025, the amount of irrevocable letters of credit yet to be fulfilled
is RMB 1.14 billion yuan.
（2） Contingencies
As of December 31, 2025, the Company has no significant contingent matters that require
disclosure.
On March 20, 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
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.
Notes to the financial statements Page 159
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
（2） Significant Debt Restructuring
Original Fair Value
Recognized Increase in Share Increase in Percentage
Debt Carrying Contingent Determination
Gain/Loss on Capital Due to Investment Due of Debtor's
Items Restructuring Amount of Payable/Rece Method and
Debt Debt-to-Equity to Debt-to-Equity Total Equity
Method Restructured ivable Basis in Debt
Restructuring Conversion Conversion (%)
Debt Restructuring
Settlement of
debt with cash
Accounts
lower than the 561,404,751.93 17,512,835.36
Payable
carrying amount
of the debt
Total 561,404,751.93 17,512,835.36
Notes to the financial statements Page 160
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
（3） 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 2025/12/31 2024/12/31
Within 1 year (inclusive) 936,430,278.56 775,949,268.73
Over 5 years 97,287,740.83 97,491,074.53
subtotal 1,284,439,194.86 1,006,787,790.31
less：bad debt 130,549,967.32 107,374,488.69
Total: 1,153,889,227.54 899,413,301.62
Notes to the financial statements Page 161
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(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 3.75 48,196,244.68 100.00 48,196,244.68 4.79 48,196,244.68 100.00
individually
Provision
assessed by
grouping 1,236,242,950.18 96.25 82,353,722.64 6.66 1,153,889,227.54 958,591,545.63 95.21 59,178,244.01 6.17 899,413,301.62
credit risk
characteristics
Including: By
Aging 1,004,714,745.30 78.22 82,353,722.64 8.20 922,361,022.66 313,614,474.73 31.15 59,178,244.01 18.87 254,436,230.72
portfolio
By Risk-free
portfolio
Total 1,284,439,194.86 100.00 130,549,967.32 1,153,889,227.54 1,006,787,790.31 100.00 107,374,488.69 899,413,301.62
Notes to the financial statements Page 162
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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:
Risk-free portfolio
Item
Carrying amount Provision for bad debts Bad debts ratio (%)
Risk-free portfolio 231,528,204.88
Total 231,528,204.88
Aging portfolio
Items
Carrying amount Provision for bad debts Bad debts ratio (%)
Within 1 year
(Inclusive)
Over 5 years 40,198,940.63 40,198,940.63 100.00
Total 1,004,714,745.30 82,353,722.64
Provision, reversal or recovery of bad debts of current period.
Notes to the financial statements Page 163
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Change in the Current Period
Reversal
Items 2024/12/31 Write-off or Other 2025/12/31
Provision or
Cancellation Changes
Recovery
Provision
for
accounts 107,374,488.69 32,903,336.61 9,727,857.98 130,549,967.32
receivable
bad debts
Total 107,374,488.69 32,903,336.61 9,727,857.98 130,549,967.32
(3) Accounts Receivable Written Off in the Current Period
Item Write-off Amount
Accounts Receivable Written Off 9,727,857.98
(4) Top five debtors based on accounts receivable and contract assets at the
year-end
Provision for
Percentage of
doubtful debts
Accounts total
Accounts Contract for Accounts
Receivable and Accounts
Company Receivable Asset Ending Receivable and
Contract Asset Receivable
Ending Balance Balance Contract Asset
Ending Balance and Contract
Ending
Asset (%)
Balance
Angang
Group
International
Economic & 624,594,464.67 624,594,464.67 48.63 6,245,944.65
Trade Co.,
Ltd., Benxi
Branch
Benxi
Bengang Steel
Sales Co., Ltd.
Taicang
CIMC
Container
Manufacture
Co., Ltd.
Liaoning
Northern Coal
Chemical 53,085,518.70 53,085,518.70 4.13 4,246,806.95
(Group) Co.,
Notes to the financial statements Page 164
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Provision for
Percentage of
doubtful debts
Accounts total
Accounts Contract for Accounts
Receivable and Accounts
Company Receivable Asset Ending Receivable and
Contract Asset Receivable
Ending Balance Balance Contract Asset
Ending Balance and Contract
Ending
Asset (%)
Balance
Ltd.
Benxi Nanfen
Xinhe
Metallurgical 48,196,244.68 48,196,244.68 3.75 48,196,244.68
Co., Ltd.
Total 959,137,712.73 959,137,712.73 74.67 59,294,920.52
Items 2025/12/31 2024/12/31
Interest receivable
Dividends receivable 31,000,000.00 224,898,383.95
Other receivables 24,731,976.38 174,911,279.65
Total 55,731,976.38 399,809,663.60
（1）Breakdown of Dividends receivable
Items（or company） 2025/12/31 202412/31
Bengang Puxiang Cool Rolling Steel
Sheet Co., Ltd.
Changchun Bengang Steel Sales Co.,
Ltd.
Guangzhou Bengang Steel & Iron
Trading Co., Ltd.
Total 31,000,000.00 224,898,383.95
Less: Provision for bad debts
Total 31,000,000.00 224,898,383.95
（2）Significant dividend receivable overdue for more than one year
Notes to the financial statements Page 165
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Whether
Reasons for
impairment has
Company Ending Balance Age uncollected
occurred and the
dividends
basis for judgment
Guangzhou Bengang
Retained for
Steel & Iron Trading 31,000,000.00 1-2 years Not Applicable
operations
Co., Ltd.
Total 31,000,000.00
(1) Other receivables disclosed by aging
Items 2025/12/31 2024/12/31
Within 1 year (inclusive) 718,602.46 57,266,931.07
Over 5 years 52,360,468.13 52,141,851.60
Subtotal 93,400,220.35 244,035,441.45
Less: bad debts 68,668,243.97 69,124,161.80
Total: 24,731,976.38 174,911,279.65
Notes to the financial statements Page 166
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
(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 16.87 15,752,285.66 100.00 15,752,285.66 6.45 15,752,285.66 100.00
individually
Provision
assessed by
grouping 77,647,934.69 83.13 52,915,958.31 68.15 24,731,976.38 228,283,155.79 93.55 53,371,876.14 23.38 174,911,279.65
credit risk
characteristics
Including:
Aging 56,380,806.01 60.36 52,915,958.31 93.85 3,464,847.70 201,016,027.11 82.37 53,371,876.14 26.55 147,644,150.97
portfolio
Risk-free
portfolio
Total 93,400,220.35 100.00 68,668,243.97 24,731,976.38 244,035,441.45 100.00 69,124,161.80 174,911,279.65
Notes to the financial statements Page 167
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Significant Provision for bad debts assessed individually：
Other Provision for Bad debts Other Provision for
Item Basis for
receivables bad debts ratio（%） provision receivables bad debts
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:
Risk-free portfolio
Item
Carrying amount Provision for bad debts Bad debts ratio (%)
Risk-free portfolio 21,267,128.68
Total 21,267,128.68
Portfolio tested by aging
Items
Carrying amount Provision for bad debts Bad debts ratio (%)
Within 1 year 718,602.46 7,186.02
(inclusive)
Over 5 years 36,608,182.47 36,608,182.47 100.00
Total 56,380,806.01 52,915,958.31
(3) Provision for Bad Debts
Notes to the financial statements Page 168
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 572,260.25 11,604,593.43 56,947,308.12 69,124,161.80
Beginning balance in
current period
--Transfer to Stage two -65,576.09 65,576.09
--Transfer to Stage
-6,269,551.60 6,269,551.60
three
--Reversal to Stage two
--Reversal to Stage one
Current period
-499,498.14 -4,876,200.33 13,620,252.40 8,244,553.93
provision
Current period reversal
Current period
write-back
Current period
-8,700,471.76 -8,700,471.76
write-off
Other change
Ending balance 7,186.02 524,417.59 68,136,640.36 68,668,243.97
(4) Provision, reversal or recovery of bad debts of current period
Change in the Current Period
Reversal
Items 2024/12/31 Write-off or Other 2025/12/31
Provision or
Cancellation Changes
Recovery
Provision
for other
receivables 69,124,161.80 8,244,553.93 8,700,471.76 68,668,243.97
bad debts
Total 69,124,161.80 8,244,553.93 8,700,471.76 68,668,243.97
(5) Written Off in the Current Period
Notes to the financial statements Page 169
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Item Write-off Amount
Other receivables written off 8,700,471.76
(6) Classification by Nature
Nature 2025/12/31 2024/12/31
Subsidy for the "Living show
belt" Project
Intercompany Balances 89,793,338.08 153,899,831.94
Others 3,606,882.27 2,957,909.51
Total 93,400,220.35 244,035,441.45
(7) Top five debtors based on other receivables at the year-end
Accounts Percentage Provision for
Receivable of total doubtful debts
Accounts
and Accounts for Accounts
Receivable Contract Asset
Company Contract Receivable Receivable and
Ending Ending Balance
Asset and Contract Asset
Balance
Ending Contract Ending
Balance Asset (%) Balance
Yantai Bengang
Current 1-2years,
Steel & Iron Sales 21,267,128.68 22.77
account 4-5 years
Co., Ltd.
Benxi Steel (Group)
Third Construction Current over 5
Engineering Co., account years
Ltd.
Benxi Steel (Group)
First Construction Current over 5
Engineering Co., account years
Ltd.
Benxi Steel (Group) Current 1-2 years,
Co., Ltd. account 2-3 years
Liaoning Huawei
Current over 5
Coal Preparation 2,261,360.00 2.42 2,261,360.00
account years
Co., Ltd.
Total 41,955,274.34 44.92 18,426,645.66
Notes to the financial statements Page 170
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
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 2,391,943,459.43 2,391,943,459.43
Investment in Associates and Joint Ventures 43,269,884.04 43,269,884.04 45,413,221.72 45,413,221.72
Total 2,465,813,343.47 2,465,813,343.47 2,437,356,681.15 2,437,356,681.15
Change in the Current Period
Beginning Provision for Ending
balance of
Beginning balance balance of Impairment Ending balance of
Provision
Name of entity Additional Reduction in
for
of investment Provision for in the Other investment
Investment Investment impairment
impairment Current
Period
Tianjin Bengang Steel Trading Co.,
Ltd.
Changchun Bengang Steel Sales Co.,
Ltd.
Guangzhou Bengang Steel Trading 200,000,000.00 200,000,000.00
Notes to the financial statements Page 171
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Change in the Current Period
Beginning Provision for Ending
balance of
Beginning balance balance of Impairment Ending balance of
Provision
Name of entity Additional Reduction in
for
of investment Provision for in the Other investment
Investment Investment impairment
impairment Current
Period
Co., Ltd.
North Hengda Logistics Co., Ltd. 169,661,869.19 169,661,869.19
Shenyang Bengang Metallurgical
Technology Co., Ltd.
Benxi Bengang Steel Sales Co., Ltd. 30,000,000.00 30,000,000.00
BenGang POSCO Cold Rolled Sheet
Co., Ltd.
Yantai Bensteel Sales Co., Ltd. 219,100,329.41 219,100,329.41
Dalian Benruitong Automotive
Materials Technology Co., Ltd.
Shanghai Ben Gang Metallurgical
Technology Co., Ltd.
Green Gold (Benxi) Renewable
Resources Co., Ltd.
Notes to the financial statements Page 172
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Change in the Current Period
Beginning Provision for Ending
balance of
Beginning balance balance of Impairment Ending balance of
Provision
Name of entity Additional Reduction in
for
of investment Provision for in the Other investment
Investment Investment impairment
impairment Current
Period
Total 2,391,943,459.43 58,744,875.36 28,144,875.36 2,422,543,459.43
For investment in associates and joint ventures, please refer to Note 5 (9) Long-term Equity Investments.
Notes to the financial statements Page 173
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Current period Previous period
Item
Revenue Cost Revenue Cost
Principal
business
Other
business
Total 46,608,433,844.68 49,052,494,863.75 51,996,293,457.84 55,850,177,739.34
Current period
Item Principal business Principal business Other business Other business
revenue revenue revenue costs
Classified by
Time of Transfer
of Goods:
Recognized at a
Point in Time
Recognized over
a Period of Time
Total 45,363,281,780.72 47,821,196,765.10 1,245,152,063.96 1,231,298,098.65
Classified by
Operating
Region:
Domestic 36,766,360,467.95 38,708,460,173.56 1,245,152,063.96 1,231,298,098.65
Overseas 8,596,921,312.77 9,112,736,591.54
Total 45,363,281,780.72 47,821,196,765.10 1,245,152,063.96 1,231,298,098.65
Notes to the financial statements Page 174
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Item Current period Previous period
Income from long-term equity investment (cost method) -2,143,337.68 -1,497,124.69
Income from long-term equity investment (equity
method)
Gains from Debt Restructuring 17,446,268.06 6,459,490.86
Other -23,527,129.04 -47,966,970.21
Total 172,333,768.77 120,893,779.91
(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 provisions. -44,758,947.66
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. 21,641,769.22
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,
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
Notes to the financial statements Page 175
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Items Amount Notes
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
Above Categories.
Other Gains or Losses that Meet the Definition of Non-Recurring
Gains and Losses.
Subtotal 104,443,705.12
Income Tax Effect 19,492,491.17
Effect of Non-controlling Interests (After Tax) 99,931.61
Total 84,851,282.34
(2) Net asset yield and earnings per share
Weighted average Earnings per share (Yuan)
Profit in the Reporting Period net assets yield
Basic EPS Diluted EPS
(%)
Net profit attributable to ordinary
-39.74 -0.960 -0.960
shareholders
Net profit attributable to ordinary
shareholders after deducting -40.77 -0.980 -0.980
non-recurring profit and loss
Note: Assuming the company’s convertible bonds are converted into ordinary shares, the
Notes to the financial statements Page 176
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
outstanding number of ordinary shares will increase by 14,255,658.48 shares, and net
profit will increase by CNY 307,187,521.56, resulting in an increase of CNY 0.08 per
share in earnings per share. This indicates that the potential ordinary shares are
anti-dilutive rather than dilutive, and therefore are not considered in the calculation of
diluted earnings per share. Diluted earnings per share is determined based on basic
earnings per share.
The above figures are calculated using the following formulas:
(1) Weighted Average Return on Net Assets
Weighted Average Return on Net Assets = P₀ / (E₀ + NP ÷ 2 + Eᵢ × Mᵢ ÷ M₀ –
Eⱼ × Mⱼ ÷ M₀ ± Eₖ × Mₖ ÷ M₀)
Where:
P₀ corresponds to net profit attributable to the company's ordinary shareholders and net
profit attributable to the company's ordinary shareholders after deducting non-recurring
gains and losses. NP represents net profit attributable to the company's ordinary
shareholders. E ₀ is the opening balance of net assets attributable to the company's
ordinary shareholders. E ᵢ represents the increase in net assets attributable to the
company’s ordinary shareholders due to new share issuance or debt-to-equity conversion
during the reporting period. E ⱼ represents the decrease in net assets attributable to the
company’s ordinary shareholders due to share repurchases or cash dividends during the
reporting period. M ₀ is the number of months in the reporting period. M ᵢ is the
cumulative number of months from the month following the increase in net assets to the
end of the reporting period. M ⱼ is the cumulative number of months from the month
following the decrease in net assets to the end of the reporting period. E ₖ represents
changes in net assets attributable to the company’s ordinary shareholders due to other
transactions or events. Mₖ is the cumulative number of months from the month following
the occurrence of other net asset changes to the end of the reporting period.
(2) Basic Earnings per Share
Basic Earnings per Share = P₀ ÷ S, where S = S₀ + S₁ + Sᵢ × Mᵢ ÷ M₀ – Sⱼ ×
Mⱼ ÷ M₀ – Sₖ
Where:
P₀ represents net profit attributable to the company’s ordinary shareholders or net profit
attributable to the company’s ordinary shareholders after deducting non-recurring gains
and losses. S is the weighted average number of outstanding ordinary shares. S₀is the total
Notes to the financial statements Page 177
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
number of shares at the beginning of the year. S₁ represents the increase in shares due to
capital reserves being converted into share capital or stock dividends during the reporting
period. Sᵢ represents the increase in shares due to new share issuance or debt-to-equity
conversion during the reporting period. Sⱼ represents the decrease in shares due to share
repurchases during the reporting period. Sₖrepresents the number of shares reduced due to
a share consolidation during the reporting period. M ₀ is the number of months in the
reporting period. Mᵢ is the cumulative number of months from the month following the
increase in shares to the end of the reporting period. M ⱼ is the cumulative number of
months from the month following the decrease in shares to the end of the reporting
period.
(3) Diluted Earnings per Share
Diluted Earnings per Share = P₁ / (S₀ + S₁ + Sᵢ × Mᵢ ÷ M₀ – Sⱼ × Mⱼ ÷ M₀
– Sₖ + the weighted average number of additional ordinary shares from warrants, stock
options, convertible bonds, etc.)
Where:
P ₁ represents net profit attributable to the company’s ordinary shareholders or net profit
attributable to the company’s ordinary shareholders after deducting non-recurring gains
and losses, considering the effect of dilutive potential ordinary shares, and adjusted
according to IFRS and relevant regulations. When calculating diluted earnings per share,
the company considers the effect of all dilutive potential ordinary shares on net profit
attributable to ordinary shareholders or net profit attributable to ordinary shareholders
after deducting non-recurring gains and losses, and on the weighted average number of
shares. The calculation follows a sequence from the most dilutive to the least dilutive until
the minimum diluted earnings per share is reached.
Bengang Steel Plates Co., Ltd.
Notes to the financial statements Page 178
Bengang Steel Plates Co., Ltd.
For the year ended 31 December 2025
Notes to the financial statements
Notes to the financial statements Page 179
