本钢板材(000761)本钢板Ｂ2005年年度报告摘要（英文版）

Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 Stock Code: 000761、200761 Stock ID: Bengangbancai, Bengang B Announcement No. 013 Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 (Under International Accounting Standard) §1 Important Declaration 1.1 The Board of Directors and the directors of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report. 1.2 None of the directors, supervisors, nor senior executives is holding uncertain opinion or disagreement over the truthfulness, accuracy, and completeness over the Annual Report. 1.3 All directors presented the board meeting. 1.4 Beijing TIN WHA CPAs and Ho and Ho & Company CPAs issued the standard audit report for the Company with the fair and true opinion. 1.5 The Chairman of the Board and General Manager– Mr. Li Mohua, Accounting Superior – Mr. Zhang Guohua hereby declare: the truthfulness and completeness of the report are guaranteed. Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 §2 Company Profile 2.1 Company Profile Stock ID Bengang Bancai, Bengang B Stock Code 000761、200761 Stock Exchange Shenzhen Stock Exchange Registered address Registered address: 18th Gangtie Road, Pingshan, Benxi, Liaoning and office address Office address: No.16, Renmin Road, Pingshan District, Benxi City, Liaoning Province Post code of registered address: 117021 Post Code Post code of office address: 117000 Website N/A Email. bgbctwg@mail.bxptt.ln.cn 2.2 Liaison people Secretary of the Board Representative of Stock Affairs Name Liang Guangde Lu Xiaoyong No.16, Renmin Road, Pingshan District, No.16, Renmin Road, Pingshan District, Address Benxi City, Liaoning Province Benxi City, Liaoning Province Tel. 0414-7828360 0414-7828010 Fax. 0414-7824158 0414-7827004 Email. bgbcgdl@online.ln.cn bgbclxy@126.com §3 Financial Highlights 3.1 Major accounting data In RMB’000 Increase/decrease Year 2005 Year 2004 Year 2003 (%) Major business income 20,182,458.00 17,349,451.00 16.33% 11,210,196.00 Total profit 864,099.00 912,073.00 -5.26% 728,906.00 Net profit 591,217.00 700,425.00 -15.59% 473,512.00 Net profit deducted non-recurring gain/loss 594,162.32 701,350.00 -15.28% 461,564.00 Net Cash flow generated by business operation 1,391,115.00 2,027,329.00 -31.38% 854,077.00 Increase/decrease End of 2005 End of 2004 End of 2003 (%) Gross Assets 7,920,607.00 8,164,472.00 -2.99% 7,398,116.00 Shareholders’ Equity (Exclude Minority Shareholders’ Equity) 5,483,628.00 5,119,611.00 7.11% 4,646,386.00 Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 3.2 Major financial indices In RMB Increase/decrease Year 2005 2004 2003 (%) Earnings per share 0.52 0.62 -15.59% 0.42 Earnings per share (Note) 0.52 0.62 -15.59% 0.42 Net earnings / capital ratio 10.78% 13.68% -2.90% 10.19% Net earnings / capital ratio basing on net profit after deducting of non-recurring gain/loss (%) 10.84% 13.70% -2.86% 9.93% Net Cash flow per share generated by business operation 1.22 1.78 -31.38% 0.75 Increase/decrease End of 2005 End of 2004 End of 2003 (%) Net asset per share 4.8271 4.5067 7.11% 4.0901 Net asset per share, adjusted 4.8253 4.5034 7.15% 4.0867 Note: In case of the capital share was changed during the period between the report date and the date when it is disclosed, then the new capital share will be adopted as the basis of earnings per share. Non-recurring gain and loss items √ applicable □ not applicable in RMB’000 Non-recurring gain and loss items Amount Gain/loss from disposal of fixed assets -5,155 Other non-business expenditures deducted impairment provisions 759 Impact of income tax of above items 1,450.68 Total -2,945.32 3.3 Diversity between the international and domestic accounting standards √ applicable □ not applicable In RMB’000 Domestic Accounting Standard Overseas accounting standard: Net profit 632,216 591,217 Adjustment: Less: depreciation provided upon the increment of fixed asset appraisal Statement about the Property, plant and equipment disposal, re-evaluated (3,598) diversity Plus: deferred tax 3,894 Income from debit relocation 1,191 Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 §4 Changes in Share Capital & Particulars about Shareholders 4.1. Statement of Changes in Shares 单位：股 Before the change Changed (+,-) After the changed Amount Proportion Sub-total Amount Proportion I. None negotiable shares 616,020,000 54.23% 0 616,020,000 54.23% 1. Promoter’s shares 616,000,000 54.23% 0 616,000,000 54.23% Incl. State-owned shares 616,000,000 54.23% 0 616,000,000 54.23% Domestic legal person shares 0 0.00% 0 0 0.00% Overseas legal person shares 0 0.00% 0 0 0.00% Others 0 0.00% 0 0 0.00% 2. Legal person shares placed 0 0.00% 0 0 0.00% 3. Employees’ shares 20,000 0.00% 0 20,000 0.00% 4. Preference shares or others 0 0.00% 0 0 0.00% II. Negotiable shares 519,980,000 45.77% 0 519,980,000 45.77% 1. Common shares in RMB 119,980,000 10.56% 0 119,980,000 10.56% 2. Foreign shares in domestic market 400,000,000 35.21% 0 400,000,000 35.21% 3. Foreign shares in overseas market 0 0.00% 0 0 0.00% 4. Others 0 0.00% 0 0 0.00% III. Total of capital shares 1,136,000,000 100.00% 01,136,000,000 100.00% 4.2 List of top 10 shareholders and current share holders. in Shares Total of shareholders 82,297 Top 10 Shareholders Properties of Non-negotiable Pledged or Name of the shareholder Share proportion % Total shares shareholder shares held frozen Benxi Steel (Group) Co., Ltd. State-owned 54.23% 616,000,000 DEUTCHE BANK AG LONDON Foreign shares 0.43% 4,926,934 MORGAN STANLEY Foreign shares 0.27% 3,012,400 INT'L(CHINA)-FIRM Li Weiqin Foreign shares 0.24% 2,773,100 Dacheng Value-Adding Securities Others 0.18% 2,000,000 Investment Foundation Fang Yijun Foreign shares 0.17% 1,785,740 Huang Liandi Foreign shares 0.15% 1,763,924 Zhang Zukun Foreign shares 0.15% 1,690,000 NG CHARN FAI Foreign shares 0.14% 1,586,400 CUOTAI JUNAN SECURIES HONG Foreign shares 0.13% 1,479,100 KONG LIMITED Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 Top 10 Current Share Holders Name of the shareholder Current shares held Category of shares Foreign shares placed in domestic DEUTCHE BANK AG LONDON 4,926,934 exchange MORGAN STANLEY Foreign shares placed in domestic 3,012,400 INT'L(CHINA)-FIRM exchange Foreign shares placed in domestic Li Weiqin 2,773,100 exchange Dacheng Value-Adding Securities 2,000,000RMB common shares Investment Foundation Foreign shares placed in domestic Fang Yijun 1,785,740 exchange Foreign shares placed in domestic Huang Liandi 1,763,924 exchange Foreign shares placed in domestic Zhang Zukun 1,690,000 exchange Foreign shares placed in domestic NG CHARN FAI 1,586,400 exchange CUOTAI JUNAN SECURIES HONG Foreign shares placed in domestic 1,479,100 KONG LIMITED exchange HSRC FUND SERVICES A/C Foreign shares placed in domestic 1,361,000 006-113039-431 exchange It is unknown to the Company whether there is any related connection or “Action in Notes to relationship or “action in concert” Concert” as described by Rules of Information Disclosing Regarding Changing of among the top ten shareholders. Shareholding Status of Listed Companies” existing among the above shareholders. 4.3 Change in Controlling Shareholder and the Actual Controller 4.3.1 Change in Controlling Shareholder and the Actual Controller □applicable √ not applicable 4.3.2 Particulars about Controlling Shareholder and the Actual Controller Name of controlling shareholder: Benxi Steel (Group) Co., Ltd. Legal representative: Zhang Yingfu Established date: July 10th 1996 Registration Capital: RMB 4,700 million Company's classification: State-own proprietorship, Authorized Business Business scope: steel smelt, mine exploitation, panel rolling, oxygen manufacturing, pipe manufacturing, power generating, coal industry, special steel material manufacturing, heating, supply of the water, electricity, wind and gas, metal processing, electro mechanics builds, device manufacturing, architecture installation, railway, highway transportation, import and export trade, traveling industry, construction material , refractory material , counting device instrument , goods and materials supply and marketing, development of real estate , scientific research , design , information service ,etc.. Authorized operate and manage state-own assets. 4.3.3 Controlling relationship chart State-own assets committee of Liaoning Province 100% Benxi Steel (Group) Co. Ltd. 54.23% Bengang Steel Plate Co. Ltd Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 §5 Directors, Supervisors and Senior Executives 5.1 Changing in shareholding and remuneration of the directors, supervisors and senior executives Shares held Shares Remuneration accepted Accept remuneration at the held at the Cause of Name Position SexAge Job term from the company in from shareholding or beginning end of change report term (RMB0’000) related parties of term term 2003.7.26. - Li Mohua Chairman, GM M 57 0 0 11.33 No 2006.7.26. Yu 2003.7.26. - Vice Chairman M 53 10,000 10,000 0.00 Yes Tianchen 2006.7.26. Director, Vice Liang 2003.7.26. - GM, Secretary of M 51 10,000 10,000 8.92 No Guangde 2006.7.26. the Board 2003.7.26. - Li Yu Director M 50 0 0 0.00 Yes 2006.7.26. Zhang 2003.7.26. - Director M 46 0 0 0.00 Yes Guiyu 2006.7.26. Zhong Independent 2003.7.26. - F 50 0 0 2.00 No Tianli Director 2006.7.26. Xue Independent 2003.7.26. - M 52 0 0 2.00 No Xiangxin Director 2006.7.26. Chairman of the Liu 2003.7.26. - supervisory M 53 0 0 0.00 Yes Junyou 2006.7.26. comission Vice Chairman of He 2003.7.26. - the supervisory M 55 0 0 0.00 Yes Xusheng 2006.7.26. comission 2004.5.25. - Yu Ping Supervisor F 53 0 0 0.00 Yes 2007.5.25. Zhang 2003.7.26. - Supervisor M 56 0 0 5.67 No Fuchen 2006.7.26. Li 2004.5.25. - Supervisor M 40 0 0 3.37 No Binqiang 2007.5.25. Zhang Vice General 2005.3.17. - M 52 0 0 8.25 No Guohua Manager 2008.3.17. Total - - - - 20,000 20,000 - 41.54 - Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 §6 Report of the Board 6.1 Report of the Executives Year 2005 was an important period for the Company to carry out scientific development strategy, overcome severe market situation, and fully implement the 10th 5-year-plan with a rapid growth. During the year, facing with the severe viberation of market, especially the declining of steel prices and overall price indices from a higher level, the Company kept on the direction of scientific development and mordern industrilization, seized the opportunities brought by the national policies of lifting up the traditional industry bases in North East China. We were concentrating on the improving of quality and product structure, kept optimizing the growth mode under the demand of market. The Company has won the leading place in the industry and achieved good economical performance. In report period, the output of steel finished 6.02 million tons, increased by 21% compared with the same period of last year; finished hot-rolled plate output 4.35 million tons, increase by 3% compared with the same period of last year. Achieved major business income of RMB 20.18 billion mainly in the whole year, increase by 16% compared with that of last year; Major business profit is RMB 1.14 billion, decreased by 6% compared with the same period of last year; Net profit is RMB0.63 billion, decreased by 14% compared with the same period of last year. Major business income and profit decreased mainly because of the declining of sales prices from the entire previous year. 6.2 Principal businesses classified based on industries/products In RMB 10 thousand Yuan Distribution on industries Decrease/ Major business cost Increase/decrease of increase of major On industry or Major business Major business Major business increased/decreased major business business profit product income cost profit ratio (%) over corresponding turnover (%) over previous term year Steel rolling 2,018,245.78 1,899,548.02 5.88% 16.33% 17.70% -15.74% business Distribution on products Molten steel 292,553.33 280,754.33 4.03% 499.71% 485.47% 137.24% Continuous 167,930.95 170,050.42 -1.26% 23.65% 43.35% -109.98% casting billet Hot Plate 1,554,715.00 1,443,536.46 7.15% 1.70% 1.14% 7.86% Disposal of 2,999.79 5,152.16 -71.75% -61.47% -32.26% -3,206.10% materials Others 46.71 54.65 -17.00% -99.66% -99.56% -261.14% Total 2,018,245.78 1,899,548.02 5.88% 16.33% 17.70% -15.74% 6.3 Major businesses distribution on regions In RMB 10 thousand Yuan Regions Major business income Increase/decrease of major business turnover (%) North 328,541.04 46.68% North-east 993,736.74 13.57% East 407,008.13 -0.54% Mid-south 47,444.98 108.12% North-west 18.67 -98.04% Export 241,496.22 18.99% Total 2,018,245.78 Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 6.4 Utilization of fund raised from financing actions □applicable √ not applicable Changing of projects □applicable √ not applicable 6.5 Utilizing of non-raised fund √ applicable □ not applicable In RMB 10 thousand Yuan Amount of the Progress of Turnover of Projects project the project the project 2# Pusher-type furnace: 4,101.00 Accomplished In middle stage process Purchase of spare parts for lithium bromide 153.00 Accomplished In middle stage process refrigeration machines Purchase of spare parts for N1 substation_ 23.00 Accomplished In middle stage process 4# crane improvement works 263.00 Accomplished In middle stage process 4# Converter Project 135,000.00 11% None Successive innovation projects 21,093.00 57% None Rectangular Billet Project 28,000.00 17% None 3# Heating Furnace Project 7,800.00 7% None Grinding Machine Project 923.00 71% None Air Compressor Station Project 800.00 98% None Numbered Air Compressor Project 910.00 59% None 4# LF Refining Project 5,006.00 Started in 2006 None Total 204,072.00 - - 6.6 Statement on the “None-standard opinion” issued by the CPA □applicable √ not applicable 6.7 Profit distribution or capitalizing of common reserves adopted by the Board of Directors √ applicable □ not applicable As audited by Beijing TIN WHA CPA, the Company has realized the net profit of RMB632,216,696.89 in year 2005. As provided by the Articles of Association, the statutory common reserves was provided at 10% amounted to RMB63,221,669.69, and statutory public welfare was provided at 5% amounted to RMB31,610,834.84. After the providing of the statutory common reserves and public welfare, the net profit distributable for year 2005 was RMB310,184,192.36, plus the retained profit from year 2004 of RMB1,875,830,483.38, the profit distributable was totaled to RMB2,186,014,775.74. Therefore the dividend plan for year 2005 is as: Basing on the total capital shares of 1,136,000,000 shares ended Dec. 31 2005, cash dividend of RMB2.00 will be distributed to each 10 shares (tax included). There totally RMB227,200,000.00 of common share dividend will be distributed. The retained RMB1,958,814,775.74 will be carried over the next year as un-distributed profit. No cash dividend proposal was raised though the Company is making profit for the report term. Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 □applicable √ not applicable §7 Significant Events 7.1 Acquisition □applicable √ not applicable 7.2 Selling of property □applicable √ not applicable 7.3 Significant guarantee □applicable √ not applicable 7.4 Significant Related Transactions 7.4.1 Related transactions regarding normal operation √ applicable □ not applicable In RMB 10 thousand Yuan Sales of products or Purchasing of products or labour service to the labour services from the related parties related parties Related parties Ratio in Amount of Amount of Ratio in similar transaction transaction similar trades trades Bengang Group 716,283.88 35.43% 1,579,502.48 90.66% Benxi Steel (Group) International Trading Co., Ltd. 241,496.22 11.97% 0.00 0.00% Tianjin Bengang Steel Trading Ltd. 66,170.52 3.28% 0.00 0.00% Haerbin Bengang International Trading Ltd. 8,836.71 0.44% 0.00 0.00% Shanghai Bengang Steel Goods Ltd. 20,277.39 1.00% 0.00 0.00% Nanjing Bengang Steel Sales Ltd. 58,414.88 2.89% 0.00 0.00% Guangshou Free Trade Zone Bengang Sales Co., Ltd. 5,326.23 0.26% 0.00 0.00% Yantai Bengang Steel Sales Ltd. 37,332.18 1.85% 0.00 0.00% Benxi Steel (Group) Special Steel Co., Ltd. 44,422.95 2.20% 0.00 0.00% Xiamen Bengang Steel Sales Ltd. 8,530.38 0.42% 0.00 0.00% Shenyang North Bengang Sales Ltd. 17,777.98 0.88% 0.00 0.00% Chengchun Bengang Steel Sales Ltd. 6,943.46 0.34% 0.00 0.00% Dalian Boluole Steel Tube Ltd. 11,120.86 0.55% 0.00 0.00% Benxi Steel (Group) Steel Process & Logistics Ltd. 61,673.32 3.06% 0.00 0.00% Benxi Steel (Group) Construction Ltd. 3,114.44 0.15% 1,705.51 0.10% Benxi Steel (Group) Construction Ltd. 462.32 0.02% 0.00 0.00% Benxi Steel (Group) Machinery Co., Ltd. 0.00 0.00% 7,592.28 0.44% Benxi Steel (Group) Mining Co., Ltd. 0.00 0.00% 15,258.03 0.88% Benxi Steel (Group) Transportation Co., Ltd. 0.00 0.00% 116.46 0.01% Benxi Steel (Group) Electronics Co., Ltd. 0.00 0.00% 47.01 0.00% Liaoning Metallurgy Technician College 0.00 0.00% 414.08 0.02% Benxi Steel (Group) Information and Automatic Tech. 0.00 0.00% 65.77 0.00% Ltd. Benxi Steel (Group) Education Center 0.00 0.00% 118.67 0.01% Benxi Steel (Group) Drilling Tools Co., Ltd. 0.00 0.00% 87.06 0.00% Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 Total 1,308,183.72 100.00% 1,604,907.35 100.00% Including: Related transactions of products or services with the controlling shareholder and its subsidiaries were amounted to RMB13,081,837,200. 7.4.2 Related credit and debt interchange √ applicable □ not applicable In RMB 10 thousand Yuan Provide money to the Accept money from the related parties related parties Related parties Amount Amount Balance Balance occurred occurred Bengang Group 1,579,967.51 99,890.60 24,184.53 24,989.48 Benxi Steel (Group) Special Steel Co., Ltd. 45,837.64 0.00 0.00 0.00 Dalian Boluole Steel Tube Ltd. 0.00 0.00 13,138.98 1,692.71 Tianjin Bengang Steel Trading Ltd. 0.00 0.00 78,969.20 9,256.68 Benxi Steel (Group) Steel Process and Logistics Co., 0.00 0.00 69,606.69 3,394.46 Ltd. Yantai Bengang Steel Sales Ltd. 0.00 0.00 43,348.51 5,848.14 Haerbin Bengang International Trading Ltd. 0.00 0.00 11,473.00 1,030.46 Shenyang North Bengang Sales Ltd. 0.00 0.00 21,002.63 2,005.26 Chengchun Bengang Steel Sales Ltd. 0.00 0.00 8,961.81 769.79 Bengang Xi’an Goods Trading Ltd. 0.00 0.00 20.00 0.00 Benxi Steel (Group) International Trading Co., Ltd. 9,034.01 12,500.14 239,138.64 2,541.91 Shanghai Bengang Steel Goods Ltd. 0.00 0.00 25,417.95 2,788.66 Nanjing Bengang Steel Sales Ltd. 0.00 0.00 70,061.03 5,272.62 Wuxi Bengang Steel Sales Ltd. 0.00 0.00 0.00 27.19 Guangshou Free Trade Zone Bengang Sales Co., Ltd. 0.00 0.00 5,305.00 573.50 Xiamen Bengang Steel Sales Ltd. 0.00 0.00 10,750.71 1,105.88 Benxi Steel (Group) Construction & Repairing Co., Ltd. 0.00 0.00 2,669.92 4,542.65 Benxi Steel (Group) Designing Institute 0.00 0.00 132.20 102.02 Benxi Steel (Group) Construction Co., Ltd. 0.00 0.00 21,520.38 10,271.59 Benxi Steel (Group) Drilling Tools Co., Ltd. 0.00 0.00 101.86 36.58 Benxi Steel (Group) Information and Automatic Tech. 0.00 0.00 2,342.27 330.31 Ltd. Benxi Steel (Group) Education Center 0.00 0.00 163.61 81.93 Benxi Economic Development Zone Bengang Jufeng 0.00 0.00 3,177.04 29.22 Development Co., Ltd. Liaoning Metallurgy Technician College 0.00 0.00 484.48 323.95 Benxi Steel (Group) Transportation Co., Ltd. 0.00 0.00 1,702.44 637.49 Benxi Steel (Group) Electronics Co., Ltd. 0.00 0.00 674.20 324.33 Benxi Steel (Group) News Center 0.00 0.00 83.55 35.57 Benxi Steel (Group) New Industrial Development Co., 0.00 0.00 168.36 18.62 Ltd. Benxi Steel (Group) Industrial Development Co., Ltd. 0.00 0.00 705.09 919.46 Benxi Steel (Group) Metallurgy Residues Co., Ltd. 0.00 0.00 2,281.89 222.68 Benxi Steel (Group) Mining Co., Ltd. 0.00 0.00 0.00 0.59 Benxi Steel (Group) Machinery Co., Ltd. 0.00 0.00 9,013.14 1,650.25 Total 1,634,839.16 112,390.74 666,599.11 80,823.98 Including: RMB16,348,391,600 of capital provided to the controlling shareholder and its subsidiaries in the report term, the balance was RMB1,123,907,400 Capital adoption and returning plan □applicable √ not applicable Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 Whether or not the returning plan for the adopted capital is to be completed for certain. □ Yes □ No √ Not applicable 7.5 Financing proxy □applicable √ not applicable 7.6 Fulfilling of consent issues 7.6.1 Commitment for share relocation process 1. Details of commitments None 2. Fulfilling of the commitments None 3. Violating of the commitment □applicable √ not applicable 7.6.2 Other commitments □applicable √ not applicable 7.7 Material Lawsuits/Arbitrations □applicable √ not applicable §8 Report of the Supervisory Committee □applicable √ not applicable Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 §9 Financial Report 9.1 Auditor’s Opinion Standard auditing statement without qualified opinion 9.2 Financial Statements 9.2.1 Balance Sheet Balance sheet as at 31 December 2005 (Expressed in Renminbi Thousand Yuan) 2005 2004 RMB’000 RMB’000 Assets Non-current assets Property, plant and equipment 3,022,973 3,553,450 Construction in progress 388,674 319,168 Deferred tax assets 18,607 14,713 Total non-current assets 3,430,254 3,887,331 Current assets Inventories 990,628 1,627,268 Trade receivable 23 177,062 Bills receivable 446,049 77,758 Prepaid expenses and other current assets 1,156,140 975,136 Prepaid income tax - 15,704 Cash and cash equivalents 1,897,513 1,404,213 Total current assets 4,490,353 4,277,141 Total assets 7,920,607 8,164,472 Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 Balance sheet as at 31 December 2005 (Expressed in Renminbi Thousand Yuan) 2005 2004 RMB’000 RMB’000 Equity and Liabilities Capital and reserves Share capital 1,136,000 1,136,000 Reserves 4,347,628 3,983,611 Total equity 5,483,628 5,119,611 Non-current liabilities Long-term bank loans – repayable after one year 291,879 311,862 Current liabilities Trade payable 390,763 437,762 Bills payable - 10,000 Other payable and accrued charges 174,140 193,517 Receipt in advance 1,516,954 1,829,228 Income tax payable 18,387 - Short-term bank loans 20,000 - Long-term bank loans – repayable within one year 24,856 262,492 Total current liabilities 2,145,100 2,732,999 Total liabilities 2,436,979 3,044,861 Total equity and liabilities 7,920,607 8,164,472 Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 9.2.2 Income statements Income statement for the year ended 31 December 2005 (Expressed in Renminbi Thousand Yuan) 2005 2004 RMB’000 RMB’000 Revenue 20,182,458 17,349,451 Cost of sales (19,083,995) (16,141,686) Gross profit 1,098,463 1,207,765 Other operating income 28,583 2,783 Selling expenses (129,152) (127,302) Administrative expenses (121,426) (106,910) Other operating expenses (6,404) (33,189) Finance costs (5,965) (31,074) Profit before tax 864,099 912,073 Income tax expenses (272,882) (211,648) Profit for the year 591,217 700,425 Earning per share – basic RMB0.52 RMB 0.62 Bengang Steel Plate Co., Ltd. Summary of Annual Report 2005 9.2.3 Cash flow statement Cash flow statement for the year ended 31 December 2005 (Expressed in Renminbi Thousand Yuan) 2005 2004 RMB’000 RMB’000 Profit before tax 864,099 912,073 Adjustments for: Depreciation on property, plant and equipment 901,189 578,498 Loss on disposal of property, plant and equipment 5,155 31,884 Finance costs 5,965 31,074 Unrealised exchange gain 7,408 360 1,783,816 1,553,889 Operating cash flows before movements in working capital Decrease (increase) in inventories 636,640 (786,261) Decrease (increase) in trade receivable 177,039 (59,654) (Increase) decrease in bills receivable (368,291) 300,727 (Increase) decrease in prepaid expenses and other current (181,004) 596,783 assets (Decrease) increase in trade payable (46,999) 152,915 Decrease in bills payable (10,000) (10,756) (Decrease) increase in receipt in advance (312,274) 418,092 (Decrease) increase in other payable and accrued charges (19,377) 97,597 Cash generated from operations 1,659,550 2,263,332 Income tax paid (242,685) (197,000) Interest paid (25,656) (38,285) Bank charges paid (94) (718) Net cash from operating activities 1,391,115 2,027,329 9.3 Explanation on changes of accounting policies, accounting estimation, and accounting method □applicable √ not applicable 9.4 Content, amount, reason and impact of major accounting errors □applicable √ not applicable 9.5 Details about changing of consolidation range comparing with the previous annual report □applicable √ not applicable