Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
DALIAN REFRIGERATION CO., LTD.
2009 SEMIANNUAL REPORT
§1 Important Notes
1.1 The directors and the Board of Directors, the supervisors and the Supervisory Board, and
Senior staff members of Dalian Refrigeration Co., Ltd. (hereinafter referred to as the Company)
hereby confirm that there are not any important omissions, fictitious statements or serious
misleading carried in this report, and shall take all responsibilities, individual and/or joint, for
the reality, accuracy and completeness of the whole contents.
This report is written respectively in Chinese and in English. In the event of any discrepancy
between the two above-mentioned versions, the Chinese version shall prevail.
1.2 The Company’s semiannual financial report has not been audited.
1.3 Chairman of the Board of Directors of the Company Mr. Zhang He, Financial Majordomo
and the head of Accounting Department Ms. Xu Junrao hereby confirm that the financial report
of the semiannual report is true and complete.
§2 Company Profile
2.1 Basic information
Short form of the stock DALENG GUFEN; DALENG-B
Stock code 000530; 200530
Listed stock exchange Shenzhen Stock Exchange
Secretary of the Board of
Directors
Authorized representative in
charge of securities affairs
Name Ms. Xu Junrao Mr. Song Wenbao
Contact address Office of Dalian Refrigeration
Co., Ltd.
Securities Department of
Dalian Refrigeration Co., Ltd.
Telephone 0086-411-86538130 0086-411-86654530
Fax 0086-411-86641470 0086-411-86654530
E-mail 000530@bingshan.com 000530@bingshan.comDalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 2
2.2 Major Accounting Data and Financial Indexes
2.2.1 Summary of the accounting data and indexes
Unit: RMB yuan
End of this report
period End of last year
Increase/decrease at the end
of this report period
compared with the end of last
year (%)
Total assets 2,703,598,218.48 2,719,626,555.64 -0.59%
Owner’s equity attributable to
parent company 1,673,292,453.58 1,656,813,415.66 0.99%
Net assets per share 4.78 4.73 1.06%
Report period (from
Jan. through Jun.)
Same period in the
last year
Increase/decrease in this
report period compared with
the same period of the last
year (%)
Total sales 595,410,146.46 749,802,132.67 -20.59%
Operating profit 65,493,593.40 71,834,838.35 -8.83%
Total amount of profit 69,217,349.25 76,630,515.96 -9.67%
Net profit attributable to parent
company 62,573,899.67 64,760,130.37 -3.38%
Net profit after deducting incidental
gain/loss 60,982,240.61 61,894,000.39 -1.47%
Basic earnings per share 0.18 0.19 -5.26%
Diluted earnings per share 0.18 0.19 -5.26%
Rate of returns on net assets 3.74% 4.06% Decrease 0.32
percentage points
Net amount of cash flow generated
in operating activities 2,226,946.06 -55,296,411.46 -
Net amount of cash flow per share
generated in operating activities 0.01 -0.16 -
2.2.2 Items of incidental gain/loss
√ Applicable □ Not applicable
Unit: RMB yuan
Items of incidental gain/loss Amount
Gain/loss from disposal of non-liquid assets 44,995.25
Government grants accounted as the gain/loss in this
period 2,041,666.67
Other non-business revenue/expenditure 115,579.54
Influence on income tax -515,950.38
Influence on minority shareholders -94,632.02
Total 1,591,659.06
2.2.3 Difference between applications of Chinese accounting standards and of the international
accounting standards
NoneDalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 3
§3 Changes in Share Capital and Particulars about Shareholders
3.1 Changes in share capital
□ Applicable √ Not applicable
3.2 Share holdings of the top ten shareholders and of the top ten shareholders without selling
restrictions (Unit: share)
Total number of shareholders 42,309
Share holdings of the top ten shareholders
Name of shareholder Nature of
shareholder Share ratio Total number
of shares
Number of
shares with
selling
restrictions
Number of
shares
mortgaged or
locked up
Dalian Bingshan Group Co., Ltd.
Domestic nonstate
ownership
legal person
21.96% 76,855,683 76,855,683 0
SANYO ELECTRIC CO LTD Foreign legal
person 10.00% 35,001,500 0 0
BONY-DREYFUS PIFIDREYFUS
PREMIER
GREATER CHINA
Foreign legal
person 4.58% 16,033,167 0 0
Huaan Hongli Stock-type
Securities Investment Fund 1.25% 4,390,000 0 0
Huaxia Dividend Securities
Investment Fund of Mixed and
Open-type
1.06% 3,704,668 0 0
Huaan Strategically Selected
Stock-type Securities Investment
Fund
1.04% 3,630,821 0 0
Huaxia Growth Securities
Investment Fund 1.00% 3,499,709 0 0
Jiuzhou Development Company
Jilin Province 0.90% 3,150,000 0 0
Dirong 0.64% 2,231,600 0 0
Anshun Securities Investment
Fund 0.60% 2,109,900 0 0
Share holdings of the top ten shareholders without selling restrictions
Name of shareholder
Number of shares
without selling
restrictions
Type of share
SANYO ELECTRIC CO LTD 35,001,500 B share
BONY-DREYFUS PIFI-DREYFUS PREMIER GREATER CHINA 16,033,167 B share
Huaan Hongli Stock-type Securities Investment Fund 4,390,000 RMB common share
Huaxia Dividend Securities Investment Fund of Mixed and Opentype
3,704,668 RMB common share
Huaan Strategically Selected Stock-type Securities Investment Fund 3,630,821 RMB common share
Huaxia Growth Securities Investment Fund 3,499,709 RMB common share
Jiuzhou Development Company, Jilin Province 3,150,000 RMB common share
Dirong 2,231,600 RMB common share
Anshun Securities Investment Fund 2,109,900 RMB common share
Dalian State-owned Assets Operation Co., Ltd. 1,650,000 RMB common share
Statement on the connection or activities acting in concert among
the above-mentioned shareholders
It is unknown whether there is the
connection among the above-mentioned
shareholders or not.
3.3 Changes in holding shareholders
□ Applicable √ Not applicableDalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 4
§4 Particulars about the Directors, Supervisors and Senior Staff Members
4.1 Particulars about changes in shares held by directors, supervisors and senior staff members
□Applicable √Inapplicable
§5 Report of the Board of Directors
1. Operation situation of company
（1）Main business
In the 1st half year of 2009, in response to the severe domestic and foreign economic situations
and continuous stagnant market demands, the Company revolved closely around cold, thermal,
ecological and environmentally friendly products, centered on economic benefits, emphasized
quality and strived to fulfill the main economic indicators by regulating flexibly the marketing
strategies based on market changes, opening up both domestic and foreign markets and
promoting Group’s united sales. In the 1st half year of 2009, the Company achieved sale
income RMB 595.41 million yuan, accounting for 44.10% of RMB 1.35000 billion yuan as one
of the operating plan indicators of the Company for 2009, down by 20.59% from the same
period of last year; the total profits achieved is RMB 69.22 million yuan, accounting for
46.15% of RMB 150 million yuan as one of the operating plan indicators of the company for
2009, down by 9.67% from the same period of last year.
（2）Sino-foreign joint venture enterprises
By the end of the 1st half year of 2009, the total assets for the Sino-foreign joint venture
enterprise group based on the equity method is RMB 6.15784 billion yuan, up by 4.46% from
the same period of the last year; the net assets RMB 2.80888 billion yuan, up by 0.16% from
the same period of the last year.
In the report period, the sales revenue achieved by the Sino-foreign joint venture enterprise
group is RMB 2.86636 billion yuan based on the equity method, down by 15.53% from the
same period of the last year; the investment income achieved by the company is RMB 27.81
million yuan, down by 34.35% from the same period of the last year.
In the report period, there is one Sino-foreign enterprise whose income from investment
accounts for over 10% of the net profits thereof, i.e. Dalian Sanyo Compressor Co., Ltd.
In the report period, there are six companies whose main business income exceeds RMB 100
million yuan, among whom there are three whose main business income exceeds RMB 500
million yuan and there is one whose net profit exceeds RMB 10 million yuan.
Main shareholding
companies Leading products
Main business
income
(10 thousand
RMB yuan)
Net profit
(10 thousand
RMB yuan)
Dalian Sanyo
Compressor Co., Ltd.
Semi-closed piston,
turbo compressor 51,828 4,916
2. Operating plan for the 2nd half year
In the 2nd half of 2009, the company will continue to center on economic benefits, lay the
emphasis on market as the most important of all, further take advantage of the superiority of
the group in package, purchase, internal management, propel actively reforms of the systems in
personnel, employment, distribution, etc., intensify the management in quality, cost, cash flow,
invigorate the spirit, work hard and steadfastly and strive to fulfill completely the operating
plan indicators for 2009.Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 5
5.1 Statement of core business classified according to industry or product (Unit: RMB’0000)
Classified
according to
industry or
product
Revenue Cost Gross
profit ratio
Increase/d
ecrease of
revenue
compared
with the
previous
year (%)
Increase/d
ecrease of
cost
compared
with the
previous
year (%)
Increase/decrease of
gross profit ratio
compared with the
previous year (%)
Classified according to industry
Industry
refrigeration 59,541.01 47,428.21 20.34% -20.59% -21.30% Increase 0.72
percentage points
Classified according to product
Refrigeration
equipment 58,835.87 46,918.08 20.26% -20.25% -21.00% Increase 0.76
percentage points
Material and
others 705.15 510.12 27.66% -41.36% -41.57% Increase 0.27
percentage points
5.2 Particulars about core business classified according to area (Unit: RMB’0000)
Area Revenue Increase/decrease of revenue compared with the
previous year（％）
Northeast China area 45,494.82 -28.73%
East China area 2,671.18 42.42%
Middle China area 13,385.32 -6.65%
Counteract 2,010.30 -60.34%
5.3 Explanation of reason of material change of core business and its structure
□Applicable √Inapplicable
5.4 Explanation of reason of material change of profitability capability of core business (gross
profit ratio) compared with the previous report period
□Applicable √Inapplicable
5.5 Analysis of reason of material change of operating results and profit structure compared
with the previous report period
□Applicable √Inapplicable
5.6 Application of the raised proceeds
□Applicable √Inapplicable
5.7 The amendment to the business plan for the second half year by Board of Directors
□Applicable √Inapplicable
5.8 Precaution on forecasting that by the beginning of year till the end of the next report period,
the accumulated net profit may be turned into loss or change greatly compared with that in the
same period of last year, and description of the cause
□Applicable √Inapplicable
5.9 Explanation of the “Non-standardized Opinion” of Certified Public Accountants to the
report period by the management
□Applicable √Inapplicable
5.10 Explanation of the “Non-standardized Opinion” of Certified Public Accountants to the
previous year by the management
□Applicable √Inapplicable
§6 Significant Events
6.1 Purchase of assets, sale of assets, or assets restructure
□Applicable √Inapplicable
6.2 Important guarantee
□Applicable √InapplicableDalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 6
6.3 Current related credits and liabilities
□Applicable √Inapplicable
6.4 Important lawsuit or arbitration
□Applicable √Inapplicable
6.5 Other important events
6.5.1 Securities investment
□Applicable √Inapplicable
6.5.2 Holding of share equity of other listed companies
√Applicable □Inapplicable Unit：（RMB）Yuan
Security
code
Abbreviation
of security
Amount of
primary
investment
Proportion
of share
equity in that
company
Book value at
the end of
period
Profit and
loss within
period
Change of
owner’s equity
within period
600346 Da Xiangsuo 2,307,692.31 1.11% 7,640,100.00 0.00 6,607,575.00
600728 S*ST Xintai 3,000,000.00 1.40% 3,000,000.00 0.00 0.00
Total 5,307,692.31 - 10,640,100.00 0.00 6,607,575.00
6.5.3 The special explanation and independent opinions from the independent directors for
occupation of funds and credit guarantees by the associated parties
According to the document ZHENG JIAN FA [2003] No. 56 and at the standpoint of
independent judgment, we deeply checked and examined the credit guarantee provided by
Dalian Refrigeration Co., Ltd. (hereinafter referred to as “the Company”) and occupation of the
funds of the Company by any of its controlling shareholders or other associated parties in the
report period.
It is found through our examination that the Company did not provide any guarantee for any of
its controlling shareholders, other associated parties holding 50% or lower of the shares of the
Company, units that are not a legal person or individuals in the report period. The Company did
not provide any credit guarantee. Now, the stipulation on the examination and approval
procedure for providing credit guarantees and the requirement for the credit standing of a
guaranteed party has been included in the Company’s Articles of Association.
It is found through our examination that there was no occupation of the funds of the Company
by any of its controlling shareholders or other associated parties in the report period.
To sum up, we believe that the Company well complied with the applicable regulations.
6.5.4 Undertaking matters for trial sales of state shares and implementation
Bingshan Group undertook that the Dalian Refrigeration Co., Ltd.’s state shares held by it
would not be listed for trading or assigned within 12 months from the date when their being
allowed to be listed for trading in the A-share market; that the shares would not be listed for
trading within 48 months after expiry of the aforementioned undertaking.
Bingshan Group well fulfilled the above undertaking.
6.5.5 In the report period, the total amount of normal associated transactions between the
Company and associated parties was 177,950 thousand yuan, accounting for 35.59% of the
budgeted amount for the year 2009. This included 104,840 thousand yuan, accounting for
40.32% of the budgeted amount for the year 2009, for purchasing supporting products for
package projects from associated parties, and 73,110 thousand yuan, accounting for 30.46% of
the budgeted amount for the year 2009, from selling supporting parts and components to
associated parties. See the Explanatory Notes to Accounting Statements.Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 7
6.6 List of activities for survey, communication, interview, etc. received in the report period
Reception
time Reception place Reception mode Reception subject Main contents discussed and
information provided
Jan. 23, 2009 The Company Telephone
communication
Researcher from
Jianxin Fund Basic situation of the Company
Mar. 31, 2009 The Company Telephone
communication
Researcher from
Huaan Fund Basic situation of the Company
Apr. 29,2009 The Company On-the-spot survey Researcher from
Huaan Fund
Visiting the production site of
the Company
May 6, 2009 The Company On-the-spot survey
Researcher from
CITIC Securities
Co., Ltd.
Basic situation of the Company
May 21, 2009 The Company On-the-spot survey
Researcher from
DATON
Securities Ltd.
Basic situation of the Company
June 5,2009 The Company Telephone
communication
Researcher from
Penghua Fund Basic situation of the Company
6.7 Index for information on important events made public in the report period
Bulletin
No. Contents of bulletin Date of
bulletin
2009-001 Bulletin on resolutions of the 19th Meeting of the 4th Board of Directors 20090225
2009-002 Notice on the 1st temporary shareholders’ meeting for 2009 20090225
2009-003 Bulletin on resolutions of the 1st temporary shareholders’ meeting for 2009 20090313
2009-004 Summary for Annual Report for 2008
2009-005 Bulletin on resolutions of the 20th meeting of the 4th Board of Directors
2009-006 Bulletin on resolutions of the 16th meeting of the 4th Board of Supervisors
2009-007 Notice on Shareholders’ meeting for 2008
2009-008 Report for the 1st quarter of 2009
2009-009 Bulletin on day-to-day associated transactions
20090424
2009-010 Bulletin on resolutions of the 21st meeting of the 4th Board of Directors 20090512
2009-011 Bulletin on resolutions of the shareholders’ meeting for 2008
2009-012 Bulletin on resolutions of the 1st meeting of the 5th Board of Directors
2009-013 Bulletin on resolutions of the 1st meeting of the 5th Board of Supervisors
20090521
2009-014 Bulletin on change of the recommended representative for stock right splitting
reform 20090522
2009-015 Bulletin for distribution of dividends for 2008 20090618
2009-016 Bulletin on resolutions of the 2nd meeting of the 5th Board of Directors
2009-017 Notice on the 2nd temporary shareholders’ meeting for 2009 20090709
2009-018 Bulletin on resolutions of the 2nd temporary shareholders’ meeting for 2009
2009-019 Bulletin on resolutions of the 3rd meeting of the 5th Board of Directors 20090728Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 8
§7 Financial Report
1. The Company's semiannual financial report has not been audited.
2. Accounting statements: see the attached statements.
3. Explanatory notes to the accounting statements
Ⅰ.General information
Dalian Refrigeration Company Limited (the “Company”) was incorporated in the People’s Republic of China (the
“PRC”) on 18 December 1993 as a joint stock limited company. The principal activities of the Company are
manufacture, sale and installation of refrigeration equipment. The Company together with its subsidiaries is
hereinafter collectively referred to as the “Group”. The address of the Company’s registered office is No.888 Xinan
Road, Shahekou District, Dalian.
The Company’s domestically listed RMB denominated ordinary shares (“A shares”) and domestically listed foreign
investment ordinary shares (“B shares”) were listed on the Shenzhen Stock Exchange in the PRC in December 1993
and March 1998 respectively.
The immediate and ultimate parent company of the Company is Dalian Bingshan Group Company Limited
(“Bingshan Group”).
Ⅱ. The main accounting policies, accounting estimation of the Company and the way of working out the
consolidated financial statements
1. Declaration on following Accounting Standard for Business Enterprises
Declaration from the Company: the Financial Report made by the Company was in line with Accounting Standard,
which reflected the financial status, business result and cash flow of the Company truly and objectively.
2. Compiling foundation of financial statements
On the basis of continue management, according to the occurred transactions and events, recognizing and measuring
by the new Accounting Standard for Business Enterprises published on Feb. 15, 2006 by Ministry of Finance and the
application guidance, the Income Statement and Balance Sheet in the comparative period were made a retroactive
modulation when they were worked out, in accordance with the requirement about retroactive modulation mentioned
Accounting Standard for Business Enterprises No.38 – First time adoption of Accounting Standard for Business
Enterprises Article Five to Nineteen. Moreover, the financial statements also listed and disclosed the related
financial information according to Standards for Information Disclosure by Companies That Offer Securities the
Public (No. 15) – General Rules for Financial Report (amended in 2007).
3. Fiscal year
The Company adopts the calendar year as its fiscal year, i.e. from January 1 to December 31.
4. Functional currency
RMB was the functional currency of the Company.
5. The items of the statements of which the measurement attributes changed and the adopted measurement
attributes in the report period.
The Company measured according to the canonical accounting measurement attributes. In the report period,
measurement attributes were not changed. The Company conducted the measurement of the accounting elements
commonly by historical cost. If using the way of replacement cost, net realizable value, present value and fair value,
the measurement should be on the basis of the amount of the accounting element which could be obtained and
measured reliably.
6. The standard for recognizing cash equivalent when making cash flow statement
Cash equivalent means the highly liquid, very safe investment which can be easily converted into cash, and the
company can hold it for a very short time (3 months from the date of purchase).
7. Method of foreign currency translation
When foreign currency translation occurs, the spot exchange rate on the date of translation (i.e., the middle price of
the intraday foreign exchange rate of RMB published by People’s Bank of China) shall be converted into RMB for
keeping accounts while the occurred foreign currency exchange or the foreign exchange transactions shall be
translated according to exchange rate adopted in actual transactions. On the balance sheet date, the foreign currency
monetary items and foreign currency non-monetary items shall be treated in accordance with the following
provisions:
The foreign currency monetary items shall be translated at the spot exchange rate on balance sheet date, of which
happen during the normal business period shall be recorded into gains and losses at the current period; of which
happen during organization period shall be recorded into long-term deferred expense. The exchange gains or losses
caused by the borrowing belonging to acquiring fixed assets shall be treated by the capitalization of borrowing costs.Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 9
Foreign currency non-monetary items shall be translated at spot rate on the date of transaction, not changing the
amount of functional currency.
8. The recognition and measurement of financial instruments and the transfer of the financial instruments
(1) Recognition of the financial assets
When an enterprise becomes a party to a financial instrument, it shall recognize a financial asset or financial liability.
Where a financial asset satisfies any of the following requirements, the recognition of it shall be terminated:
① Where the contractual rights for collecting the cash flow of the said financial assets are terminated;
②Where the said financial asset has been transferred and meets the conditions for recognizing the termination of
financial assets as provided for in Accounting Standard for Business Enterprises No. 23 – Transfer of Financial
Assets. 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.
(2) The classification, recognition and measurement of financial assets and financial liabilities
The financial assets or financial liabilities got or born by the Company are measured according to the following
classifications:
① The financial assets or financial liabilities which are measured at their fair value and the variation of which is
recorded into the profits and losses of the current period
The interest rate or cash dividend which was gained in the period when the financial assets held by the Company are
measured at its fair value and of which the variation is recorded into the profits and losses in the current period shall
be recognized as investment income. On balance sheet date, the in change in the fair value of the financial asset or
financial liability which is measured at its fair value and of which the variation is recorded into the profits and losses
of the current period, shall be recorded into the profits and losses of the current period; When the said financial
assets of financial liabilities are on disposal, the difference between the fair value and the amount in initial account
shall be recognized as investment income, meanwhile, the profits and losses arising from the change in fair value
shall be adjusted.
② The investments which will be held to their maturity
The investments which will be held to their maturity will regard the sum between the gained fair value and the
transaction expense thereof as the initially recognized amount. The interest on bonds in payment, of which the
mature interest is not drawn, shall be solely recognized as the receivables. The interest revenue which is measured
and recognized by the amortized cost and actual interest rate during the period of the investments which will be held
to their maturity shall be recorded into investment income. The actual interest rate which is recognized in the period
of gaining the investments which will be held to their maturity, shall maintain unchanged within the predicted term
of existence or within a shorter applicable term of the said investment which will be held to their maturity. The little
difference between actual interest rate and coupon rate of which interest revenue can be measured at the coupon rate
shall be recorded into the profits of losses in the current period. When the investments which will be held to their
maturity are on disposal, the difference between the obtained price and investment book value shall be recorded into
the profits and losses in the current period.
③ The accounts receivables
The creditor’s right receivable formed during the Company selling commodity outside or offering labor shall be
regarded as the initially recognize amount in according with the receivable price stipulated in the contract or
agreement signed between the Company and the buyers. When the Company recovers or disposes the accounts
receivable, the difference between the obtained price and the book value of the accounts receivable shall be recorded
into the profits and losses in the current period.
④ Financial assets available for sale
The financial assets available for sale will be regarded as the initial recognized amount in according with the sum
between the fair value obtained from the said financial assets and the transaction expense thereof. The interest on
bonds of which the mature interest rate is not drawn in the payment or the cash dividend which is declared but not
extended in the payment shall be solely recognized as the receivables.
The interest rate or cash dividend gained during the period of holding the financial assets available for sale shall be
recorded into investment income. On balance sheet date, the financial assets shall be measured through fair value,
while the change in fair value is recorded into capital reserves (other capital reserves).
When the financial assets are on disposal, the difference between the obtained price and the book value of the
financial assets shall be recorded into investment income, meanwhile, the amount on proposal transferring out from
the accumulated amount which is directly recorded into shareholders’ equity and arises from the variation of the fair
value, shall be recorded into investment income.
⑤ Other financial liabilities
Other financial liabilities are regarded as the initial recognized amount in accordance with the sum between the fair
value and the transaction expense thereof. The Company shall make subsequent measurement on other financial
liabilities on the basis of the post-amortization costs.
(3) Main recognition method for the fair value of the financial assets or financial liabilities
① The quotation in the active market shall be used to recognize the fair value of the financial assets or financial
liabilities existing in active market.
② If the financial instruments do not exist in the active market, the fair value shall be recognized by value appraisal
techniques.
③ As for the financial assets initially obtained of produced at source and the financial liabilities assumed, the fair
value thereof shall be determined on the basis of the transaction price of the market.
(4) Main impairment test method of the financial assets and impairment provision methodDalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 10
The recognition standard for impairment provision of the financial assets: the Company shall carry out an inspection,
on the balance sheet day, on the carrying amount of the financial assets other than those measured at their fair values
and of which the variation is recorded into the profits and losses of the current period. Where there is any objective
evidence proving that such financial asset has been impaired, an impairment provision shall be made.
The withdrawal method for impairment provision of the financial assets: as for the impairment provision of the
financial assets is measured on the basis of post-amortization costs, if the current value of the predicted future cash
flow of the financial assets is below the difference in the carrying amount of the said financial asset, the impairment
provision of the financial assets shall be made; as for the impairment provision of the financial assets available for
sale, if the recoverable amount is below the difference in the carrying amount, the impairment provision shall be
made. Where a sellable financial asset is impaired, even if the recognition of the financial asset has not been
terminated, the accumulative losses arising from the decrease of the fair value of the owners’ equity which was
directly included shall be transferred out and recorded into the profits and losses of the current period.
9. The recognition standard and the withdrawal method for the bad debt provision of the accounts receivable
(1) Receivables are considered uncollectible after liquidation with statutory procedures for debtors are in canceling
or bankrupt, due death of debtors who has no bequest and no undertaker on obligation, or caused by debtors fail to
perform their obligation to pay a debt over five years, and it will be recognized as bad debt.
(2) The bad debt losses are accounted by the allowance method. The Company recognized the bad debt provision on
the basis of the accounts age analysis method based on the actual financial status and the cash flow of the debt units,
which shall be recorded into the profits and losses of the current period. As for the accounts receivable of the related
party of the Company with continuous operation ability, the withdrawal of bad debt reserves should not reach 100%
at most. The proportion taking up the withdrawal of the bad debt provision for the accounts receivable in every
account age phase is described as follows:
Account age Proportion taking up the bad debt
provision for the accounts receivable (%)
Proportion taking up the bad debt
provision for the other accounts
receivable (%)
Within one year 5 5
One to two years 10 10
Two to three years 30 30
Three to four years 50 50
Four to five years 80 80
Over five years 100 100
10. The classification, pricing and accounting methods for inventories; the recognition standard and
withdrawal method of the inventories falling price reserves
(1) Classification of the inventories: purchased materials, stocking materials, material cost difference, entrusted
processing materials, unfinished products, finished products, working on project and etc.
(2) The inventory system is on the basis of perpetual inventory method.
(3) The inventories are priced by the historical cost method, so are the raw material and auxiliary material, the sold
material cost is carried over on the basis of first-in first-out method; the product cost is accounted through standard
cost method, the difference between the standard cost and historical cost is undertaken by the cost of the finished
goods in process, while the cost of sales is carried over on the basis of weighted average method; low-value
consumption goods will be amortized once when drawn.
(4) As for the inventory write-down provided: each kind of inventories at the end of the report period will be
measured at the lower of cost or net realizable value, and a provision for inventory write-down will be established
for any difference between the cost and the lower net realizable value. The net realizable value refers to the value
minus the predicted expense needed in the process of completing the production and sales from the predicted price
for sale and the taxes.
11. The method for measuring long-term equity investment
(1). Confirmation of initial investment cost of long-term equity investment
For the consolidation of enterprises that under the same control, take the book value proportion of the owner’s equity
of consolidated party on consolidation date as initial investment cost of long-term equity investment. The balance of
initial investment cost of long-term equity investment and paid cash, transferred non-cash asset, and book value of
debt taken, should adjust capital public reserve; and adjust retained earning while the capital public reserve isn’t
enough to offset. For the consolidation of enterprises that under different control, take assets paid out in order to
acquire the control right of purchased party on purchase date, occurred or undertaken debt and fair value of issued
equity securities as initial investment cost of long-term equity investment. The long-term equity investment acquired
in other manners except from the enterprise consolidation, should confirm its initial investment cost according to
following regulations:
①. The long-term equity investment acquired by paying cash, should take purchasing price that actually paid as
initial investment cost. Initial investment cost including expense, tax and other necessary payout that directly related
with acquiring the long-term equity investment.
②. The long-term equity investment acquired by issuing equity securities, should take fair value of the issued equity
securities as initial investment cost.Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 11
③. The long-term equity investment invested by investors, should take the promised value in investment contract or
agreement as initial investment cost, excluding those promised in the contract or agreement that the value is not fair.
④. The long-term equity investment acquired by non-monetary asset exchange, its initial investment cost should be
confirmed according to Accounting Standards of Business Enterprise No.7—Non-monetary Asset Exchange.
⑤. The long-term equity investment acquired by debt reorganization, its initial investment cost should be confirmed
according to Accounting Standards No.12—Debt Restructuring.
(2). Subsequent measurement of long-term equity investment
①. The following long-term equity investments adopt cost calculation method:
i. The long-term equity investment on the invested units controlled by the Company.
The investment of the Company on the subsidiaries and calculated on cost method and adjusted according to equity
method while compiling the consolidated financial statements.
ⅱ. The long-term investment that the Company hasn’t together control or material influence on invested party, and
hasn’t quoted price on active market so its fair value can’t be dependably measured.
②. The long-term equity investment that the Company has together control or material influence on the invested
party, adopt equity method to calculated.
12. The fixed assets pricing and depreciation method
(1) Definition of fixed assets
The fixed assets refer to the assets related to production and operation that has over 1 year lifetime.
(2). Classification
The fixed assets include property and plant, machinery and equipment, motor vehicles, electric equipments and other
equipments etc.
(3). Pricing of fixed assets
The initial measurement of a fixed asset shall be made at its cost. The cost of a purchased fixed asset is based on the
actual expense; the cost invested to a fixed asset by the investor shall be ascertained in accordance with the value as
stipulated in the investment contract or agreement; the cost of a self-constructed fixed asset shall be formed by the
necessary expenses incurred for bringing the asset to the expected condition for use; the costs of fixed assets
acquired through the exchange of non-monetary assets, recombination of liabilities, merger of enterprises, and
financial leasing shall be respectively ascertained in accordance with the Accounting Standard for Business
Enterprises No. 7 - Exchange of Non-monetary Assets, the Accounting Standard for Business Enterprises No. 12 –
Debt Restructuring, the Accounting Standard for Business Enterprises No. 21 – Leases.
(4).Deprecation method of fixed assets
Depreciation is calculated using the straight-line method to allocate their cost to their residual values over their
estimated useful lives, as follows:
Fixed assets Estimated lifetime Annual depreciation Expected residual
rates value rates
Buildings 20-40 years 2.25-4.85% 3% or 10%
Machinery and equipment 10-22 years 4.09-9.7% 3% or 10%
Motor vehicles 5-15 years 6-19.4% 3% or 10%
Electric equipments 5 years 18-19.4% 3% or 10%
Other equipments 10-15 years 6-9.7% 3% or 10%
The asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
13. Construction-in-progress
(1). Construction-in-progress represents buildings and plant under construction and machinery and equipment under
installation and testing, and is stated at cost.
(2). This includes cost of construction, plant and equipment and other direct costs plus borrowing costs which
include interest charges and exchange differences arising from foreign currency borrowings used to finance these
projects during the construction period, to the extent these are regarded as an adjustment to interest costs.
(3). When construction engineering in process has reached the scheduled state in commission, and has proceeded the
final accounts of completing, validate all the actual expenses as the fixed asset; if the fixed asset has reached the
scheduled state in commission without proceeding the final accounts of completing, validate the cost and adjust the
original provisional estimated value according to the actual costs after finishing the final accounts of completing.
14. The pricing and amortizing method of intangible assets
(1) Pricing of the intangible assets
The intangible assets shall be initially measured according to its cost.
① The cost of outsourcing intangible assets shall include the purchase price, relevant taxes and other necessary
expenditure directly attributable to intangible assets for the expected purpose.
② The cost of self-developed intangible assets shall include the total expenditures incurred during the period from
the time when it meets the following conditions to the time when the expected purposes of use are realized, except
that the expenditures which have already been treated prior to the said period shall not be adjusted.
ⅰ. It is feasible technically to finish intangible assets for use or sale;
ⅱ. It is intended to finish and use or sell the intangible assets;
ⅲ. The usefulness of methods for intangible assets to generate economic benefits shall be proved, including beingDalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 12
able to prove that there is a potential market for the products manufacturing by applying the intangible assets or there
is a potential market for the intangible assets itself or the intangible assets will be used internally.
ⅳ. It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the
support of sufficient technologies, financial resources and other resources;
ⅴ. The development expenditures of the intangible assets can be reliably measured.
③ The cost invested into intangible assets by investors shall be determined according to the conventional value in
the investment contract or agreement.
④ The costs of intangible assets acquired from non-monetary assets transaction, debt recombination, government
subsides, and merger of enterprises shall be determined respectively according to the Accounting Standard for
Business Enterprises No. 7 - Non-monetary Assets, Accounting Standard for Business Enterprises No. 12 – Debt
Restructurings, Accounting Standard for Business Enterprises No. 16 – Government Grants and Accounting
Standard for Business Enterprises No. 20 – Business Combinations.
(2) Amortization of the intangible assets
①As for the intangible assets with limited service life, which are amortized by straight-line method when it is
available for use within the service period, shall be recorded into the current profits and losses. The Company shall,
at least at the end of each year, check the service life and the amortization method of intangible assets with limited
service life. When the service life and the amortization method of intangible assets are different from those before,
the years and method of the amortization shall be changed.
② Intangible assets with uncertain service life may not be amortized. However, the Company shall check the service
life of intangible assets with uncertain service life during each accounting period. Where there are evidences to prove
the intangible assets have limited service life, it shall be estimated of its service life, and be amortized according to
the above method mentioned in (1).
15. Impairment of long-term assets
(1) At the end of accounting period, the Company shall check the long-term assets. There may be an impairment of
assets when the following signs occur. The recoverable amount shall be estimated and the asset impairment loss shall
be made in light of the difference that the recoverable amount of assets is less than the book value when the
impairment happens. The signs are stated as follows:
① The current market price of assets falls, and its decrease is obviously higher than the expected drop over time or
due to the normal use;
②The economic, technological or legal environment in which the enterprise operates, or the market where the assets
is situated will have any significant change in the current period or in the near future, which will cause adverse
impact on the enterprise;
③The market interest rate or any other market investment return rate has risen in the current period, and thus the
discount rate of the enterprise for calculating the expected future cash flow of the assets will be affected, which will
result in great decline of the recoverable amount of the assets;
④Any evidence shows that the assets have become obsolete or have been damaged substantially;
⑤ The assets have been or will be left unused, or terminated for use, of disposed ahead of schedule;
⑥ Any evidence in the internal report of the enterprise shows that the economic performance of the assets has been
or will be lower than the expected performance, for example, the net cash flow created by assets or the operating
profit (or loss) realized is lower (higher) than the expected amount;
⑦Other evidence indicates that the impairment of assets has probably occurred.
(2) The evidences to withdraw the impairment provision of long-term investment, fixed assets, construction in
process and intangible asset: at the end of the report period, the Company will withdraw the asset impairment
provision according to the difference that the recoverable amount of single asset is less than the book value. The
recoverable value shall be recognized according to the high one between the net amount of fair value deducting
disposal charge and the current value of the expected future cash flow of assets. If the recoverable amount of the
single asset cannot be obtained, the recoverable amount shall be recognized on the basis of the asset group to which
the asset belongs.
(3) The business reputation formed by merger of enterprises shall be distributed into the related asset group at the
end of every year, then the asset group shall have the impairment test to measure the recoverable amount, comparing
to the book value, if the recoverable amount of the asset group is less than the book amount, the difference shall first
charge against the book value of the business reputation which is apportioned to the asset group; if the book value of
the business reputation is not enough to charge against the difference, the uncharged balance shall be distributed by
the other assets of the asset group in accordance with the book value.
(4) The recognition of the asset group under impairment test: the related minimum of asset groups that can share the
synergetic benefit brought from merger through the prediction of the Company.
(5) The above impairment losses of assets cannot be reversed as soon as they are recognized.
16. Calculation method of loan expenses
(1) The loan expenses occurred to the Company includes loan interest, amortization of reduction price and premium
price, assistant expenses and the exchange balance from foreign currency loan. The amortization of the interest,
discount or premium and exchange difference from, the specific loan for purchasing fixed assets, if meeting the
following three conditions, loan expenses should be capitalized.
① Asset disburses have been occurred.
② The borrowing costs has already incurred.
③ Purchase construction activity for achieving the asset utility condition has started. Other loan interest,Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 13
amortization of reduction price and premium price and the exchange balance from foreign currency loan should be
deemed as expenses of the period while they occur.
(2)Where a general borrowing is used for the acquisition and construction or production of assets eligible for
capitalization, the enterprise 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. Auxiliary
expense of general loan should be counted into current loss and interest.
(3)To determine capitalized amount： Capitalized interest for purchasing fixed asset at the end of the current period
is the accumulated expense and weight average asset multiplied capitalization rate. And the capitalization rate is
determined by following principles：
①Interest of the specialized loan for purchasing fixed assets is the capitalization rate；
②Above single specialized loan for purchasing fixed assets, the capitalization rate is the weighted average interest
rate of these general borrowings.
(4)Temporary stop of capitalization: If the purchase and building activities for fixed assets stop abnormally and the
interruption interval exceeds three months, the capitalization of borrowing cost should be stopped temporarily and
deemed as the expenses of current period until the re-start of purchasing and building activities for assets.
(5)Stop of capitalization: When the purchased fixed assets have reached the expected serviceable condition, stop the
capitalization of borrowing cost.
17. Calculating method on salary payable to staff
The staff’ salary means that the enterprise gives various remunerations for obtaining services providing by the
employees or other relevant expenses. It includes:
i. Staff’s salary, bonus, allowance and subsidy;
ii. Staff’s welfare;
iii. Hospitalization insurance, endowment insurance, unemployment insurance, occupational injury insurance and
childbirth insurance, etc. social insurances;
iv. Housing public reserve;
v. Labor union expenditure and personnel education expense;
vi. Non-monetary welfare;
vii. Compensation for rescinding the labor relationship with employee;
viii. Other expenses related with the services the employee supply.
During the accounting period of an employee' providing services to an enterprise, the Company shall recognize the
compensation payable as liabilities. Except for the compensations for the cancellation of the labor relationship with
the employee, the enterprise shall, in accordance with beneficiaries of the services offered by the employee, treat the
following circumstances respectively:
(1)The compensation for the employee for producing products or providing services shall be recorded as the product
costs and service costs;
(2)The compensation for the employee for any on-going construction project or for any intangible asset shall be
recorded as the costs of fixed asset or intangible assets;
(3)The compensation for the employee other than those as mentioned in Items (1) and (2) shall be recorded as profit
or loss for the current period.
The social insurance such as hospitalization insurance, endowment insurance, unemployment insurance,
occupational injury insurance and childbirth insurance; and housing public reserve handed by the company for the
staff should be calculated in proportion of total salary according to the relevant regulations of local government
during the accounting period of the services the employee supply to the company. Before the expiration of the
contract, the company rescinds the labor relationship between the company and the staff or encourage staff accept
the suggestion on compensation for accepting reduction at will, at the same time satisfy the following conditions,
projected liabilities occurs for confirming rescinding the labor relationship with employee and giving compensation
and is reckoned into current gains and losses:
i. The company officially established the plan on rescinding the labor relationship or brings forward the suggestions
on reduction at will, and will be implemented;
ii. The company could not singly withdraw rescinding the labor relationship or suggestions of reduction.
18. Measurement method of estimated debts
The obligation pertinent to Contingencies shall be recognized as estimated debts 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;
(3) The amount of the obligation can be measured in a reliable way.
The Company shall check the book value of the estimated debts on the balance sheet date. If there is any exact
evidence indicating that the book value cannot really reflect the current best estimate, the Company will adjust the
book value in accordance with the current best estimate.
19. Revenue recognition
(1) The recognition of the revenue from selling goods: the revenue from selling shall be recognized by the following
conditions: The significant risks and rewards of ownership of the goods have been transferred to the buyer by the
Company; the Company retains neither continuous management right that usually keeps relation with the ownership
nor effective control over the sold goods; the relevant amount of revenue can be measured in a reliable way; theDalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 14
relevant revenue and costs of selling goods can be measured in a reliable way.
(2) The recognition of the revenue from providing labor services: When the total revenue and costs from providing
labor can be measured in a reliable way; the relevant economic benefits are likely to flow into the enterprise; the
schedule of completion under the transaction can be measured in a reliable way, the revenue from providing labor
shall be recognized.
When the outcome of a contract cannot be estimated reliably, contract revenue is recognized to the extent of contract
costs incurred where it is probable those costs will be recoverable. Contract costs are recognized when incurred.
20. Calculation method of government grants
The government grants related to the proceeds, if those used for compensating the relevant future expenses or losses
of the enterprise shall be recognized as deferred income and shall, during the period when the relevant expenses are
recognized, recorded in the current profits and losses; or if those used for compensating the relevant expenses or
losses that have been incurred to the enterprise shall be directly recorded in the current profits and losses.
The government grants related to the assets shall be recognized as deferred income and shall be distributed averagely
in the related asset using period, then counted into current loss and interest. However, government subsidiary
according to nominated amount shall be counted into current loss and interest directly.
21. Income tax
Where there is difference (temporary difference) between the carrying amounts of the assets or liabilities and its tax
base, the deferred income tax assets or the deferred income tax liabilities shall be determined. According to tax law,
the deductible loss and tax deduction which can deduct the taxable amount in the subsequent years, regarding as
temporary difference, shall be recognized as the corresponding deferred income tax assets. As for the temporary
difference arising from the initial recognition of the goodwill, the corresponding deferred income tax liabilities.
When the temporary difference is arisen from the initial recognition of the assets or liabilities incurring in the
transaction which is not business combination and does not affect the accounting profits or the taxable amount (or
the deductible loss), the corresponding deferred income tax assets and deferred income tax liabilities shall not
recognized. On the balance sheet date, the deferred income tax assets and deferred income tax liabilities shall be
measured at the tax rate applicable to the period during which the assets are expected to be recovered or the
liabilities are expected to be settled. The Company shall recognize the deferred income tax assets to the extent of the
amount of the taxable income which it is likely to obtain and which can be deducted from the deductible temporary
difference, deductible loss and tax deduction.
The deferred income tax liabilities arising from the temporary differences related to the investments of subsidiary
companies, associated enterprises and joint enterprises shall be recognized. However, the deferred tax income assets
and deferred income tax liabilities shall not recognized which meet the conditions that the Company can control the
time of the reverse of temporary differences which are likely to be reversed in the expected future.
22. Measure method of business combination
1) The business combination under the same control: the consideration paid by combining party and the net assets
obtained by the combining party shall be measured according to the book value. As for the balance between the
carrying amount of the net assets obtained by the combining party and the carrying amount of the consideration paid
by it and the total par value of the shares issued, the additional paid-in capital shall be adjusted. The direct cost for
the business combination of the combining party shall be recorded into the profits and losses at the current period.
The bonds issued for a business combination or the handling fees, commissions and other expenses for assuming
other liabilities shall be recorded into the amount of initial measurement of the bonds or other debts.
2) The business combination not under the same control: the combination costs of the acquirer and the identifiable
net assets obtained by the acquirer shall be measured based on fair value. The acquirer shall recognize the positive
balance between the combination costs and the fair value of the identifiable net assets it obtains from the acquiree as
business reputation. The combination costs are less than the fair value of the identifiable net assets it obtains from
the acquiree, it shall record the balance into the profits and losses of the current period. The direct cost for the
business combination of the combining party shall be recorded into costs of business combination. The bonds issued
for a business combination or the handling fees, commissions and other expenses for assuming other liabilities shall
be recorded into the amount of initial measurement of the bonds or other debts.
23. Method for compiling consolidated financial statements
The consolidation scope of the consolidated financial statements includes the Company and its subsidiaries. Since
the actual control right of the subsidiary was obtained, the Company has started to bring it into combination, which
shall be suspended since the actual control date ends. All the significant current balance, transactions and
unrealizable profits of the Group shall be offset when the consolidated financial statements were made. The
shareholder’s interest of the subsidiaries which doesn’t belong to the portion that the Company owns shall be
represented solely as the minority interest in the shareholders’ interest of the consolidated financial statements.
When the accounting policies or accounting period between the Company and its subsidiaries, when the consolidated
financial statements are made, the financial statements of the subsidiaries shall be adjusted and combined according
to the accounting policies or accounting period of the Company. As for the subsidiaries obtained from business
combination not under the same control, when the financial statements are made, the specific financial statements
shall be adjusted on the basis of the fair value of identifiable net assts on the acquisition date. As for the subsidiaries
obtained from business combination under the same control, when the financial statements are made, the sides
anticipated in the combination shall exist at the present situation when the final controller started to implement
control.Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 15
24. Earnings per share
(1) Basic earnings per share = net profit attributable to common shareholders or net profit attributable to common
shareholders after deducting extraordinary items ÷ outstanding weighted average of ordinary shares
(2) Diluted earnings per share= net profit attributable to common shareholders or net profit attributable to common
shareholders after deducting extraordinary items ÷ outstanding weighted average of ordinary shares after adjusted
(3) If the outstanding or potential common shareholders change during the report period but do not affect the total
amount of shareholders equity, the earnings per share should be recalculated.
If the above changes happened during the date of balance sheet and the date of financial statements approval, the
earnings per share of the report period should be recalculated.
Ⅲ. Taxation
1.Value added tax (“VAT”)
The Group is subject to VAT, which is a tax charged on top of the selling price at a general rate of 17%. An input
credit is available whereby VAT previously paid on purchases of raw materials and semi-finished products can be
used to offset the VAT on sales to determine the net VAT payable.
2.Tax on city maintenance and construction and extra-charges for education
Tax on city maintenance and construction, extra-charge for education: shall be paid by measuring according to the
rules of the tax paying unit which belongs to the Local Taxation Bureau.
3.Tax on real estate
The tax rate of the real estate for self-use of which tax is measured at 70% of the original value of the real estate at
the end of last year, shall be 1.2%. The tax rate of the real estate for renting, of which tax is measured according to
the revenue from leasing real estate, shall be 12%.
4. Income tax
(1)Income tax shall be measured at 25% in total.
(2)Income tax of subsidiaries and associates
Taxation on profit of subsidiaries and associates is calculated at the applicable rates in accordance with the relevant
tax regulations. Certain subsidiaries and associates enjoy preferential income tax policies with approvals from tax
authorities. The applicable income tax rates of major subsidiaries and associates for 2008 are as follows:
Name of the entity
Relationship with the
Company
Applicable income tax
rate in 2006
Dalian Bingshan Group Refrigeration Installation
Company Subsidiary 25%
Dalian Bingshan Air-Conditioning Equipment
Company Limited Subsidiary 20%
Dalian Bingshan Lingshe Deepfreezing Equipment Subsidiary 20%
Dalian Bingshan Group Sales Company Subsidiary 25%
Dalian Bingshan Metal Processing Company
Limited Subsidiary 25%
Dalian Bingshan Guardian Automation Co., Ltd. Subsidiary 25%
Shanghai Bingshan Serial Refrigeration Equipment
Sales Company Subsidiary 25%
Wuhan New World Refrigeration Industrial Co.,
Ltd (“WNWRI”) Subsidiary 12.5%
Wuhan New World Refrigeration Air Conditioner
Engineering Company Limited Subsidiary 25%
Ⅳ. Business combination and consolidated financial statements
The principal activities of its subsidiaries are shown as below.
As of 30 June 2009 the Company had direct equity interests in the following subsidiaries, all of which were
incorporated in the PRC:Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 16
Name of subsidiaries
Registered
address
Legal
representative
person
Registered
capital
Percentage
of equity
interest Principal activities
Dalian Bingshan Group
Refrigeration Installation
Company (“Installation
Company”)
Shahekou
Dist., Dalian
Zhang
Hongzhi
RMB
20,040,000
100% Installation and testing of
refrigeration equipment
Dalian Bingshan Group
Sales Company (“Sales
Company”)
Shahekou
Dist., Dalian
Yang Bin RMB
18,000,000
90% Sale of refrigeration
equipment
Dalian Bingshan Air-
Conditioning Equipment
Company Limited
(“Bingshan Air-
Conditioning”)
Development
Zone,
Dalian
Yamamoto
Shunniti
JPY
700,000,000
70% Manufacture and sale of
accessories of
refrigeration equipment
Dalian Bingshan Metal
Processing Company
Limited (“Metal
Processing”)
High & new
Technology
Dist., Dalian
Zhang He USD
2,350,000
64.25% Process and sale of metal
punching parts
Dalian Bingshan Guardian
Automation Co., Ltd.
High & new
Technology
Dist., Dalian
Mike Murphy GBP
210,000
60% Research, design and
develop refrigerator
automation parts
Dalian Bingshan Ryosetsu
Quick Freezing Equipment
Co., Ltd.
Development
Zone,
Dalian
Yamati
Yashuhiro
USD
1,000,000
70% Manufacture and sale of
deepfreezing equipment
Shanghai Bingshan Serial
Refrigeration Equipment
Sales Company
Jiading Dist.,
Shanghai
Yang Bin RMB
2,000,000
45% Sale and installation of
refrigeration equipment
Wuhan New World
Refrigeration Industrial
Company Limited
(“WNWRI”)
Hanyang
Dist.,
Wuhan
Mu
Chuanjiang
RMB
30,000,000
51% Design, manufacture,
sale, installation and test
of screw type
refrigeration compressor
and refrigeration
equipment
Wuhan New World
Refrigeration Air
Conditioner Engineering
Company Limited
Dongxihu
Dist.,
Wuhan
Ding Jie RMB
8,000,000
5% Design, installation, test
and repair of
refrigeration equipment
Dalian Daleng Metal
Technology Company
Limited ①
Lvshunkou
Dist., Dalian
Zhang He RMB
20,000,000
100% Manufacture of metal
founding parts and pipe
parts; process of metal
machine parts(Preparing
to construct)
All of the above subsidiaries are included in the consolidated scope.
① The Company exercises its control over Shanghai Bingshan Serial Refrigeration Equipment Sales Company by
assigning three members of Board of Directors out of total five members and having power to govern the
financial and operating policy of Shanghai Bingshan Serial Refrigeration Equipment Sales Company.
② Wuhan New World Refrigeration Industrial Company Limited holds 95% equity interest of Wuhan New World
Refrigeration Air Conditioner Engineering Company Limited, and through Wuhan New World Refrigeration
Industrial Company Limited , the Company have the whole power to govern Wuhan New World Refrigeration
Air Conditioner Engineering Company Limited.Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 17
Ⅴ. Notes to the consolidated financial statements
1 Monetary fund
Item 30-06-2009 31-12-2008
Cash on hand 226,328.34 166,274.45
Cash in bank 302,579,924.82 312,171,509.30
Total 302,806,253.16 312,337,783.75
2 Notes receivable
Item 30-06-2009 31-12-2008
Bank acceptance 56,977,257.83 27,176,226.89
Trade acceptance 31,462,144.62 18,306,521.96
Total 88,439,402.45 45,482,748.85
* Amount of notes receivable in period-end increased 94.44% over the period-begin, because the notes received in
period-end were transferred and accepted without endorsement.
3 Accounts receivable
(1) Classified by account nature
30-06-2009 31-12-2008
Item
Amount Proportion (%) Amount Proportion (%)
Receivables that are individually
significant 43,091,936.00 8.60 43,958,199.00 8.48
Receivables not individually
significant but with high risk in
groups
Other insignificant items 457,771,535.19 91.40 474,428,444.2 91.52
Total 500,863,471.19 100.00 518,386,643.2 100.00
(2) The ageing of accounts receivable and related provisions for bad debts
30-06-2009 31-12-2008
Account age
Amount
Proportion
(%)
Provision for
bad debts
Amount
Proportion
(%)
Provision for
bad debts
Within1 year 228,553,950.60 45.63 11,427,697.51 308,176,275.20 59.44 15,408,813.77
1 to 2 years 133,332,096.37 26.62 13,333,209.64 109,434,039.07 21.11 10,893,795.30
2 to 3 years 74,481,476.25 14.87 22,344,442.88 49,123,197.21 9.48 16,315,260.35
3 to 4 years 33,806,464.33 6.75 16,903,232.18 20,561,430.25 3.97 10,280,715.13
4 to 5 years 11,309,597.87 2.26 9,047,678.29 13,408,482.81 2.59 10,726,786.25
Over 5 years 19,379,885.77 3.87 19,379,885.77 17,683,218.72 3.41 17,683,218.72
Total 500,863,471.19 100.00 92,436,146.27 518,386,643.26 100 81,308,589.52
* No arrearage from the shareholders holding over 5% (including 5%) of the equity of the Company existed in the
balance of accounts receivable.
4 Account paid in advance
Account age 30-06-2009 31-12-2008
Amount Proportion (%) Amount Proportion (%)
Within1 year 27,070,959.02 88.69 23,315,557.88 96.75
1 to 2 years 3,451,100.00 11.31 783,710.50 3.25
Total 30,522,059.02 100.00 24,099,268.38 100.00
*No arrearage from the shareholders holding over 5% (including 5%) of the equity of the Company existed in the
balance of account paid in advance.Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 18
5 Dividends receivable
30-06-2009 31-12-2008
26,000,000.00 3,244,600.00
* Amount of dividend receivable in period-end increased 701.33 % over the period-begin, because the profit
which the government declared to distribute was not due but paid.
6 Other accounts receivable
(1) Classified by account nature
30-06-2009 31-12-2008
Item
Amount
Proportion
(%)
Amount
Proportion
(%)
Receivables that are individually significant 7,224,593.15 30.28 7,032,050.00 27.24
Receivables not individually significant but
with high risk in groups
Other insignificant items 16,635,074.57 69.72 18,778,985.17 72.76
Total 23,859,667.72 100.00 25,811,035.17 100.00
(2) The ageing of other accounts receivable and related provisions for bad debts
30-06-2009 31-12-2008
Account age
Amount
Proportion
(%)
Provision for
bad debts
Amount
Proportion
(%)
Provision for
bad debts
Within1 year 17,150,548.85 71.88 857,527.50 16,444,831.57 63.71 595,291.54
1 to 2 years 1,201,604.98 5.04 120,160.50 7,264,132.58 28.14 726,413.25
2 to 3 years 4,871,913.57 20.42 1,461,574.01 1,397,213.81 5.41 419,164.15
3 to 4 years 565,978.14 2.37 282,989.07 476,987.40 1.85 238,493.70
4 to 5 years 8,000.00 0.03 6,400.00 125,326.53 0.49 100,261.22
Over 5 years 61,622.18 0.26 61,622.18 102,543.28 0.40 102,543.28
Total 23,859,667.72 100.00 2,790,273.26 25,811,035.17 100 2,182,167.14
* No arrearage from the shareholders holding over 5% (including 5%) of the equity of the Company existed in
the balance of other accounts receivable.
7 Inventories
(1)Cost
Item 31-12-2008
Current year
addition
Current year
disposal
30-06-2009
Raw materials 73,188,427.54 239,261,273.74 235,510,591.72 76,939,109.56
Materials on
Consignment for
further processing
2,015,207.80 5,825,471.80 4,837,439.40 3,003,240.20
Low-value
consumption
174,858.80 1,875,263.05 1,861,315.93 188,805.92
Work-in-progress 102,106,208.61 547,309,757.39 581,914,263.74 67,501,702.26
Self-manufactured
semi-finished
products
34,107,665.19 121,339,042.34 116,815,617.44 38,631,090.09
Finished goods 115,441,325.83 431,569,957.56 439,912,623.33 107,098,660.06
Constructing projects 14,111,730.59 31,349,837.79 29,705,858.68 15,755,709.70
Total 341,145,424.36 1,378,530,603.67 1,410,557,710.24 309,118,317.79Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 19
(2) Provision for impairment of inventories:
Item
31-12-2008 Current year
addition
Current year
disposal
30-06-2009
Finished goods 3,432,391.41 3,432,391.41
Total 3,432,391.41 3,432,391.41
8 Financial assets available for sale
Item 30-06-2009 31-12-2008
Notes available-for-sale
Equity instruments available-for-sale
Others 15,444,000.00 6,633,900.00
Total 15,444,000.00 6,633,900.00
* The financial assets available for sales held by the Company is just 2.34 million shares equity of Dalian Rubber
Plastic Machine Co., Ltd., which are circulating A shares released restricted conditions dated Jul 11th of 2007.
* Amount of financial assets available for sales in period-end increased 132.80% over the period-begin, because
changes in share price of Dalian Rubber Plastic and Machinery Co., Ltd. resulted in changes of fair value.
9 Long-term equity investments
Item 30-06-2009 31-12-2008
Associates 923,897,974.65 936,462,882.49
Joint ventures 17,444 ,047.37 18,080,176.62
Other long-term equity investments 77,104,778.22 77,104,778.22
Less: Provision for impairment of long-term equity
investments 16,995,796.52 16,995,796.52
Total 1,001,451,003.72 1,014,652,040.81
(1) Long-term equity investment calculated by cost method
Name of invested Initial amount Impairment
company
Nature of
shares
31-12-2008 30-06-2009
Shareholding
percentage
31-12-2008 30-06-2009
Zibo Electric Traction
Machine Group Co.,
Ltd.
Legal person
shares
1,735,142.50 1,735,142.50 1.465%
Liaoning Mec Group
Co., Ltd.
Legal person
shares
1,020,000.00 1,020,000.00 2%
Suntek Technology
Co., Ltd.
Legal person
shares
3,000,000.00 3,000,000.00 1.4% 3,000,000.00 3,000,000.00
Guotai Junan
Securities Co.,Ltd.
Legal person
shares
30,098,895.00 30,098,895.00 0.64% 1,582,164.89 1,582,164.89
Thermo King
Container
Temperature Control
(Suzhou) Co., Ltd.
Legal person
shares
3,310,806.00 3,310,806.00 10%
Dalian Bingshan
Group Materials
Trading Co. , Ltd
Legal person
shares
250,000.00 250,000.00 5%
Liaoning Enterprises
United Industry
Company
Legal person
shares 105,000.00 105,000.00 4.2% 105,000.00 105,000.00
Wuhan Steel and
Electricity Co., Ltd.
Legal person
shares
429,000.00 429,000.00 0.056%
Guotai Junan
Investment
Management Co., Ltd
Legal person
shares
3,057,316.00 3,057,316.00 0.22% 2,688,605.91 2,688,605.91Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 20
Shenyang Sanyo Airconditioner
Co., Ltd
Legal person
shares
34,098,618.72 34,098,618.72 10% 9,620,025.72 9,620,025.72
Total 77,104,778.22 77,104,778.22 16,995,796.52 16,995,796.52
(2) Long-term equity investment calculated by equity method
Name of invested company
Initial
Amount
Shareholder
percentage
31-12-2008
Changes in
current year
profit/loss
Cash dividend
received in current
year
30-06-2009
Thermo King-Dalian
Transport Refrigeration
Company Limited
6,313,174.25 25% 28,591,165.05 1,236,923.25 29,828,088.30
Dalian Grand Ocean Thermo
King Transport Refrigeration
Engineering Co., Ltd
2,871,708.00 40% 5,702,330.69 49,335.93 5,751,666.62
Dalian Sanyo Refrigeration
Co., Ltd.
40,606,709.20 40% 104,008,451.36 2,431,256.93 6,800,000.00 99,639,708.29
Dalian Honjo Chemical
Company Limited
3,908,911.50 30% 9,198,113.91 570,639.72 1,012,800.00 8,755,953.63
Dalian Sanyo Cold-train Co.,
Ltd
134,658,753.75 40% 186,846,805.70 2,364,523.74 8,000,000.00 181,211,329.44
Grand Ocean-showa Auto
Air Conditioning (Dalian)
Co., Ltd.
24,402,234.58 20% 23,843,807.29 1,849,786.61 25,693,593.90
Dalian Sanyo Compressor
Co., Ltd.
176,953,841.88 40% 269,450,986.41 17,697,995.76 25,200,000.00 261,948,982.17
Dalian Meica Electronics
Co.,Ltd.
9,649,590.00 30% 18,255,904.21 610,794.71 18,866,698.92
Dalian Sanyo Airconditioner
Co., Ltd
176,953,841.88 40% 186,987,992.13 1,129,706.32 188,117,698.45
Dalian Sanyo Home
Appliance Co., Ltd.
19,666,212.00 40% 21,975,918.79 -802,397.34 21,173,521.45
Dalian Bingshan Group
Import & Export Co. , Ltd
1,200,000.00 24% 6,047,423.47 1,169,639.59 7,217,063.06
Beijing Huashang Bingshan
Refrigeration and Airconditioning
Machinery Co.,
Ltd
490,000.00 49% 495,863.99 -9,264.11 486,599.88
Dalian Bingshan H2O3
Environmental Solution Co. ,
Ltd
2,731,377.50 33% 532,474.62 0.00 532,474.62
Dalian Fuji Bingshan
Vending Machine Co., Ltd
66,416,364.00 49% 54,288,812.92 -536,400.06 53,752,412.86
Daliian Sanyo High-Efficient
Refrigeration System Co.,
Ltd.
20,000,000.00 25% 20,236,831.95 685,351.11 20,922,183.06
Dalian Bingshan – P&A
Recreation Development
Engineering Limited
1,034,675.00 50% 2,992,535.29 -228,872.83 2,763,662.46
Dalian Jiale Vending
Machine Operation Co., Ltd
18,750,000.00 50% 15,087,641.33 -407,256.42 14,680,384.91
Total
716,171,513.54 954,543,059.11 27,811,762.91 41,012,800.00 941,342,022.02Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 21
(3) Provision for impairment of long-term equity investments
Name of invested company 30-06-2009 31-12-2008
Suntek Technology Co., Ltd 3,000,000.00 3,000,000.00
Guotai Junan Securities Co., Ltd 1,582,164.89 1,582,164.89
Guotai Junan Investment Management Co., Ltd 2,688,605.91 2,688,605.91
Liaoning Enterprises United Industry Company 105,000.00 105,000.00
Shenyang Sanyo Air-conditioner Company Limited 9,620,025.72 9,620,025.72
Total 16,995,796.52 16,995,796.52
10 Fixed assets
(1) Increase or decrease change in fixed assets
Item 31-12-2008
Current year
addition
Current year
disposal
30-06-2009
1. Original value 799,532,513.07 4,257,139.72 1,805,667.13 801,983,985.66
Including: Buildings 261,433,296.66 348,122.28 261,085,174.38
Machinery 498,835,279.77 3,500,369.50 1,168,437.02 501,167,212.25
Vehicles 22,898,987.60 582,459.62 185,722.00 23,295,725.22
Other equipments 16,364,949.04 174,310.60 103,385.83 16,435,873.81
2. Accumulated depreciation 406,870,079.66 17,216,500.11 993,802.26 423,092,777.51
Including: Buildings 82,233,583.29 3,295,686.32 12,697.61 85,516,572.00
Machinery 306,136,632.68 11,747,241.97 764,723.81 317,119,150.84
Vehicles 9,023,394.19 1,018,924.18 167,149.80 9,875,168.57
Other Equipments 9,476,469.50 1,154,647.64 49,231.04 10,581,886.10
3.Net book value 392,662,433.41 378,891,208.15
Including: Buildings 179,199,713.37 175,568,602.38
Machinery 192,698,647.09 184,048,061.41
Vehicles 13,875,593.41 13,420,556.65
Other Equipments 6,888,479.54 5,853,987.71
*①The original value of fixed assets increased RMB 300,456.70 Yuan from construction in progress during the
reported period.
②The controlling subsidiary of the Company-Wuhan New World Refrigeration Industry Co., Ltd pledged with
house and land use rights and obtained RMB 10 million from the bank; besides, there were no replacement,
mortgage and guarantee of the Company.
(2) Provision for the impairment of fixed assets
Item 31-12-2008
Current year
addition
Current year disposal 30-06-2009
Machinery and
equipment
8,532,889.30 2,407.42 8,530,481.88
Total 8,532,889.30 2,407.42 8,530,481.88Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 22
11 Construction in progress
Name of
projects
Budget
31-12-2008
Current year
addition
Transferred to
fixed assets
30-06-2009
Source of
funds
Percentage
of
completion
Buildings 5,000,000.00 670,944.49 1,965,526.06 239,959.40 2,396,511.15
Internally
generated
fund
53%
Machinery 6,500,000.00 3,813,740.02 670,528.53 60,497.30 4,423,771.25
Internally
generated
fund
69%
Others 450,000.00 291,010.60 23,000.00 314,010.60
Internally
generated
fund
69%
Total 4,775,695.11 2,659,054.59 300,456.70 7,134,293.00
* The ending balance of construction in progress increased 149.39% during the current period, mainly due to the
movement and innovation projects of affiliated companies.
12 Intangible assets
Item
the way
obtained
Original cost 31-12-2008
Current year
addition
Current year
disposal
30-06-2009
The rest
duration for
amortization
Land use
rights
Buy 113,192,497.39 100,624,888.09 1,131,923.43 99,492,964.66 37-47 years
Others Buy 3,991,628.30 3,225,084.69 109,615.38 34,835.88 3,299,864.19 37 years
Total 117,184,125.69 103,849,972.78 109,615.38 1,166,759.31 102,792,828.85
*(1) No situation of intangible assets that can be draw back being lower than book value, so not withdraw the
provision for devaluation of intangible assets.
(2) No capitalization of interest existed in the report period.
13 Long-term prepayments
Item 31-12-2008
Current year
addition
Current year
disposal
30-06-2009
The rest duration
for amortization
Rental fee 3,535,431.90 69,239.16 3,466,192.74 24 years
Total 3,535,431.90 69,239.16 3,466,192.74
14 Deferred tax assets
Item 30-06-2009 31-12-2008
Bad debt provision 11,713,177.69 9,735,752.55
Provision for obsolete inventory 858,097.85 858,097.85
Impairment provision of fixed 2,132,620.47 2,133,222.33
Deferred income 5,294,917.50 5,738,542.50
Total 19,998,813.51 18,465,615.23
15 Short-term loans
Terms of borrowing 30-06-2009 31-12-2008
Credit loan 100,000,000.00 100,000,000.00
Guaranteed loan 10,000,000.00 10,000,000.00
Total 110,000,000.00 110,000,000.00
*The subsidiary of the Company-Wuhan New World Refrigeration Industry Co., Ltd pledged with house and land
use rights and borrowed short-term loan of RMB 10 million.Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 23
16 Notes payable
30-06-2009 31-12-2008
Bank acceptance notes 112,591,065.10 62,113,880.30
Trade acceptance notes 91,000.00 14,775,137.00
Total 112,682,065.10 76,889,017.30
*Amount of notes payable in period-end increased 46.55% over the period-begin, because the amount which the
Company settled with acceptance bill in this year increased.
17 Accounts payable
30-06-2009 31-12-2008
Ages
Amount
Proportion
(%)
Amount
Proportion
(%)
Within1 year 356,021,797.62 94.97 383,120,493.63 96.43
1 to 2 years 9,380,609.48 2.51 7,110,718.55 1.79
2 to 3 years 4,464,008.98 1.19 3,533,766.15 0.89
3 to 4 years 2,677,049.69 0.71 1,347,349.73 0.34
4 to 5 years 288,907.42 0.07 236,409.08 0.06
Over 5 years 2,061,184.95 0.55 1,938,000.96 0.49
Total 374,893,558.14 100.00 397,286,738.10 100.00
Note：There were no accounts due to the shareholders holding over 5% (including 5%) of the equity of the
Company existed in the balance of accounts payable.
18 Accounts received in advance
30-06-2009 31-12-2008
Ages
Amount
Proportion
(%)
Amount
Proportion
(%)
Within1 year 95,308,168.64 72.16 138,667,936.31 82.41
1 to 2 years 12,040,603.32 9.12 8,596,088.60 5.11
2 to 3 years 8,554,682.34 6.48 6,059,890.14 3.61
3 to 4 years 1,918,784.37 1.45 9,779,400.00 5.81
4 to 5 years 9,138,288.51 6.92 546,811.97 0.32
Over 5 years 5,110,767.63 3.87 4,613,375.26 2.74
Total 132,071,294.81 100.00 168,263,502.28 100
* There were no accounts due to the shareholders holding over 5% (including 5%) of the equity of the Company
existed in the balance of accounts received in advance.
19 Employee’s compensation payable
Item 31-12-2008 Current year
addition
Current year
reduction 30-06-2009
Wages and salaries, bonuses, allowances
and subsidies
23,706,414.02 49,324,591.72 68,617,208.90 4,413,796.84
Staff welfare 17,267,677.79 1,899,075.68 2,955,497.76 16,211,255.71
Social security contributions 744.00 12,887,932.67 12,888,676.67
Housing funds 258,806.69 6,758,979.44 6,140,912.19 876,873.94
Labor union and employee education
funds
780,970.91 1,050,377.45 958,808.30 872,540.06
Non-currency welfare 102,346.30 102,346.30
Compensation giving because of
severing labor relations
18,504.84 18,504.84
Others
Total 42,014,613.41 72,041,808.10 91,681,954.96 22,374,466.55
*Amount of wages payable in period-end decreased 46.75% over the period-begin, because wages which were
withdrawn in period-end of last accounting were paid in the report period.Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 24
20 Taxes payable
Item 30-06-2009 31-12-2008
Value-added tax 3,337,058.91 -980,632.17
Business tax 1,463,886.12 1,286,229.22
City maintenance and construction tax 318,282.11 149,488.38
Enterprise income tax 404,063.56 8,759,535.67
Individual income tax 2,341,232.87 376,549.46
Stamp duty 32,808.13 40,620.44
Education development expenses 27,018.91
Withholding business tax for foreign
owners
51,335.93
Extra-charges for education 126,847.44 56,748.18
Local education expenses 87,412.05 30,674.18
Water project fund/River route
maintenance fee
342,834.40 508,087.54
Safeguard fund for disables 480.00 636.00
Total 8,454,905.59 10,306,291.74
21 Dividend payable
Name of investors 30-06-2009 31-12-2008
Legal person shares 17,937,966.91 6,724,584.76
Total 17,937,966.91 6,724,584.76
22 Other accounts payable
30-06-2009 31-12-2008
Ages
Amount
Proportion
(%)
Amount
Proportion
(%)
Within1 year 17,885,614.42 45.52 23,719,711.37 56.89
1 to 2 years 6,611,010.59 16.83 7,327,186.11 17.57
2 to 3 years 6,247,969.43 15.90 6,139,629.20 14.73
3 to 4 years 5,009,692.93 12.75 200,000.00 0.48
4 to 5 years 150,000.00 0.38 1,096,428.20 2.63
Over 5 years 3,383,676.03 8.62 3,211,700.86 7.70
Total 39,287,963.40 100.00 41,694,655.74 100.00
* Other account payable should pay the shareholders unit with holding 5 percent voting rights---Dalian Bingshan
Group Co., Ltd. amounting to RMB 11,183,795.81, because the subsidiary borrowed loan from Dalian Bingshan
Group Co., Ltd. due to relocation and renovation.
23 Long-term loans
Terms of
borrowing
Loan date due date Interest Rate 30-06-2009 31-12-2008
Credit loan 2004-11-22 2009-11-21 6.48%-7.65% 50,000,000.00 50,000,000.00
Total 50,000,000.00 50,000,000.00
24 Deferred tax liabilities
Item 30-06-2009 31-12-2008
Available for sale financial assets 3,284,076.92 1,081,551.92
Total 3,284,076.92 1,081,551.92
*Amount of deferred income tax liabilities in period-end increased 203.64% over the period-begin, because changes
in share price of Dalian Rubber Plastic and Machinery Co., Ltd. resulted in changes of fair value.Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 25
25 Other non-current liabilities —Deferred income
Item 30-06-2009 31-12-2008
Agricultural product intensive
processing/screw rod technology deducted
interest deducted
11,079,670.00 12,854,170.00
Contribution to highly effective heat pump
and related system
7,800,000.00 7,800,000.00
Contribution to subsidiary company
relocation
52,915,005.00 53,472,003.00
Subsidy for fishing equipment 2,300,000.00 2,300,000.00
Total 74,094,675.00 76,426,173.00
* The balance of above items haven’t met the conditions being converted to income.
26 Share capital
Item 31-12-2008
Issuance
of new
shares
Shares
converted
from
reserve
Others 30-06-2009
I. Non-circulating share capital
with restricted trade conditions
1. State-owned shares
2. Shares held by domestic
legal persons
3. Other domestic shares 76,957,374.00 76,957,374.00
Including: Shares held by
domestic natural person 101,691.00 101,691.00
II. Circulating share capital
1. Domestically listed ordinary
shares (A-share) 158,057,601.00 158,057,601.00
2. Domestically listed foreign
shares (B-share) 115,000,000.00 115,000,000.00
III Total 350,014,975.00 350,014,975.00
* The non-circulating share capital with restricted trade conditions held by Dalian Bingshan Group Co., Ltd. will
circulate on January 8, 2011.
27 Capital surplus
Item 31-12-2008
Current year
addition
Current year
reduction
30-06-2009
Capital premium 513,645,432.79 513,645,432.79
Other capital surplus 76,465,620.21 6,607,575.00 83,073,195.21
Total 590,111,053.00 6,607,575.00 596,718,628.00
*Other capital surplus included value increases of assets valuation RMB 40,090,787.33Yuan.
28 Surplus reserves
Item 31-12-2008
Current year
addition
Current year
reduction
30-06-2009
Statutory surplus reserves 368,103,745.84 24,557,356.08 392,661,101.92
Total 368,103,745.84 24,557,356.08 392,661,101.92Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 26
The increase of the surplus reserves was because the discretionary surplus reserve was withdrawn on the basis of
20% of the net profit of the Company in 2008.
29 Retained earnings
Item 2009.01-06 2008.01-06
Retained earnings at the year-end of the prior year 348,583,641.82 312,557,010.42
Add: Changes in accounting policies
At beginning of year after retrospective adjustment 348,583,641.82 312,557,010.42
Add: Net profit 62,573,899.67 64,760,130.37
Less: Appropriation of statutory surplus reserves
distribution of dividends 24,557,356.08 23,459,000.94
Including: cash dividends 52,502,246.25 52,502,246.25
Less: Dividends transferred to share capital 52,502,246.25 52,502,246.25
Appropriation of employee welfare and bonus fund
Retained earnings at the year end 200,190.50 3,096,413.87
333,897,748.66 298,259,479.73
(1) The Company withdrew the discretionary surplus reserve on the basis of 20% of the net profit of the Company
in 2008.
(2) The shareholders approved the distribution of a cash dividend of RMB 0.15 per share, totaling RMB
52,502,246.25.
30 Revenue and cost of sales
(1) Revenue from main operations and cost of goods sold
Revenue Cost
Item
2009.01-06 2008.01-06 2009.01-06 2008.01-06
Refrigeration equipment 588,358,689.40 737,777,002.25 469,180,836.19 593,930,501.00
(2) Other revenue and cost
Revenue Cost
Item
2009.01-06 2008.01-06 2009.01-06 2008.01-06
Sale of raw materials
and others 7,051,457.06 12,025,130.42 5,101,249.39 8,730,819.70
* The total sales income of the first five clients of the Company was RMB 96,078,772.88, taking up 16.33% of the
whole sales income of the Company.
31 Taxes and associate charges
Item Basis of taxes calculated 2009.01-06 2008.01-06
Business tax Revenue 3% or 5% 881,445.39 1,086,575.70
City maintenance and
construction tax
Business tax、Value-added
tax 7% 855,556.14 968,948.37
Education additional
expenses
Business tax、Value-added
tax 3% 369,077.22 415,740.19
Local education expenses
Business tax、Value-added
tax 1% 125,878.80 138,816.88
Others 34.33 122.35
Total 2,231,991.88 2,610,203.49Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 27
32 Operating expenses
Item 2009.01-06 2008.01-06
Office expenses 1,266,644.37 597,399.47
Travel expenses 5,492,418.48 5,733,008.07
On behalf charges 102,720.14 2,879,534.00
Communication expenses 639,449.82 431,142.18
Wages and attachment 8,577,910.36 9,714,938.04
Advertising expenditure 260,169.90 1,060,165.14
Transportation cost 4,356,943.71 6,260,490.66
Business entertainment 3,101,019.92 3,513,106.49
Expenses of inviting tenders 355,341.20 646,818.90
Expenditure of agent 1,432,497.77 911,359.90
Post-sale service fee 1,978,403.78 1,919,860.09
Others 1,666,908.16 2,231,930.36
Total 29,230,427.61 35,899,753.30
33 General and administrative expenses
Item 2009.01-06 2008.01-06
Office expenses 3,599,093.08 2,589,235.37
Travel expenses 2,055,223.61 2,522,301.61
Insurance premium 1,002,011.53 888,890.76
Other taxes and fees 3,980,085.02 3,330,986.12
Wages subsidy and additional charges 19,332,324.67 29,919,373.08
Housing fund 2,067,038.83 1,718,231.92
Social security contributions 8,055,137.38 10,914,113.26
Auditing fee 520,217.75 594,182.05
Checking and testing expenses 978,614.39 1,567,734.89
Maintenance cost 644,184.19 985,434.60
Advertising expenditure 319,356.83 208,111.62
Accumulation depreciation 4,631,795.86 4,934,626.43
Amortization of intangible assets and
long-term prepayments 1,235,998.47 1,243,052.42
Water, electricity and heating fee 3,224,182.59 4,483,410.51
Others 7,780,681.28 5,478,789.03
Total 59,425,945.48 71,378,473.67
34 Financial expenses
Item 2009.01-06 2008.01-06
Interest expenses 5,485,489.43 4,314,509.72
Less: interest income 580,221.36 709,977.27
Exchange losses 140,157.24 129,431.86
Less: exchange gain 78,873.58
Others 372,489.06 110,838.04
Total 5,417,914.37 3,765,928.77
* Amount of financial expense in this year increased 43.87% over the actual amount of last year, mainly
because loan in the report period increased which resulted in increase in interest.Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 28
35 Impairment losses on assets
Item 2009.01-06 2008.01-06
Bad debt provision 11,389,619.55 19,060,122.81
Provision for obsolete inventories
Provision for the impairment of available-for-sale financial assets
Provision for the impairment of held to maturity investments
Provision for the impairment of long-term equity investments
Provision for the impairment of Investing property
Provision for the impairment of fixed assets
Provision for the impairment of construction materials
Provision for the impairment of construction in progress
Provision for the impairment of Bearer biological asset
Provision for the impairment of Oil assets
Provision for the impairment of intangible assets
Provision for the impairment of goodwill
Provision for the impairment of other assets
Total 11,389,619.55 19,060,122.81
36 Gain/ (loss) from investments
Item 2009.01-06 2008.01-06
Long-term equity investment income
accounted by using equity method 27,811,762.91 42,359,060.92
Other investment income 24,249,668.50 15,049,447.50
Total 52,061,431.41 57,408,508.42
* There was no significant limitation of investment income return.
37 Non-operating incomes
Item 2009.01-06 2008.01-06
Gain on the disposal of non-current assets 95,850.13 2,144,915.42
Penalty and fine income 26,015.00 83,570.06
Tax refund 165,859.01
Deferred income 3,397,322.05 2,966,871.85
Debts can not paid 12,150.19 7,335.00
Others 150,344.70
Total 3,847,541.08 5,202,692.33
* Amount of non-operating income in the report period decreased 26.05% over the same period of last year,
mainly because the income from disposal of non-current asset in this year decreased.
38 Non-operating expenses
Item 2009.01-06 2008.01-06
Loss on the disposal of noncurrent
assets
50,854.88
155,808.12
Fines and penalties 38,580.45 2,200.00
Donation expenditure 249,006.60
Others 34,349.90
Total 123,785.23 407,014.72
* Amount of non-operating expenditure in the report period decreased 69.59% over the same period of last year,
mainly because the donation expenditure in the report period decreased compared with the same period of last year.Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 29
39 Income tax expense
Item 2009.01-06 2008.01-06
Current income tax expense 3,309,084.06 5,179,490.29
Deferred income tax expense -1,549,444.93 137,897.68
Total 1,759,639.13 5,317,387.97
* Amount of income tax expense in the report period decreased over the same period of last year, mainly
because taxable income in the report period decreased and investment income tax ratio may not make up the tax
which influenced the deferred income tax expense.
40 Other cash receipts relating to operating activities
Item 2009.01-06 2008.01-06
Returns travel expense receivable 3,529,067.33 1,456,724.69
Deposit received 7,501,650.00 3,848,227.50
Others 4,185,211.19 1,341,742.14
Total 15,215,928.52 6,646,694,33
41Other cash payments relating to operating activities
Item 2009.01-06 2008.01-06
Travel expense 16,850,039.71 13,225,324.65
Deposit paid 8,115,800.00 8,873,550.20
Sales expenditure 9,344,056.59 11,203,673.24
Administrative expenditure 9,447,067.80 10,878,324.45
Others 4,505,107.99 5,312,425.44
Total 48,262,072.09 49,493,297.98
42 Complementary information for consolidated cash flow statement
(1) The relationship between the net profit and the net cash flows from operating activities
Item 2009.01-06 2008.01-06
1. Reconciliation from the net profit to the cash flows from operating
activities
Net profit 67,457,710.12 71,313,127.99
Add: Provisions for assets impairment 11,389,619.55 19,060,122.81
Depreciation of fixed assets 17,216,500.11 17,537,285.04
Amortization of intangible assets 1,166,759.31 1,295,259.26
Amortization of long-term deferred expenses 69,239.16 69,239.16
Losses on disposal of fixed assets, intangible assets and other longterm
assets -45,982.88 -2,001,666.20
Losses on scrapping of fixed assets 987.63 12,558.90
Losses on variation of fair value
Finance expenses 5,412,742.61 4,257,605.37
Investment losses -52,061,431.41 -57,408,508.42
Decrease in deferred tax assets -1,533,198.28 -3,183,336.97
Increase in deferred tax liabilities 2,202,525.00 -1,934,688.49
Decrease in inventory 32,027,106.57 -24,906,792.42
Decrease in operating receivables -43,400,870.57 -73,938,617.68
Increase in operating payables -37,674,760.86 -5,467,999.81
Others
Net cash flows from operating activities 2,226,946.06 -55,296,411.46Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 30
2. Investing and financing activities that do not involve cash receipts and
payments
Conversion of debt into capital
Convertible bonds to be expired within one year
Fixed assets under finance lease
3. Net increase in cash and cash equivalents
Cash at the end of the period 302,806,253.16 185,317,687.71
Less: Cash at the beginning of the period 312,337,783.75 244,799,726.11
Plus: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase in cash and cash equivalents -9,531,530.59 -59,482,038.40
(2) Cash and cash equivalents
Item 2009.06.30 2008.06.30
Cash
Including: cash on hand 226,328.34 459,682.30
Bank deposits that can be used for payment whenever necessary 302,579,924.82 184,858,005.41
Other monetary capital that can be used for payment whenever
necessary
Balance of ‘Cash and cash equivalents’ at the end of the year 302,806,253.16 185,317,687.71
43 Segment statement
Item Northeast of China East of China Mid of China Counteract Total
1、Total sales 454,948,195.39 26,711,762.60 133,853,206.41 20,103,017.94 595,410,146.46
Include：Income from
outside
442,517,041.88 19,541,496.46 133,351,608.12 595,410,146.46
Income from
segments
12,431,153.51 7,170,266.14 501,598.29 20,103,017.94
2、Selling and
distribution expenses
20,138,498.60 1,437,581.67 7,654,347.34 29,230,427.61
3、Operating profit 63,343,459.22 -53,273.17 7,849,945.54 5,646,538.19 65,493,593.40
4、Total assets 2,522,772,640.65 19,986,840.56 338,915,963.36 178,077,226.09 2,703,598,218.48
5、Total liabilities 740,205,585.85 14,795,039.90 236,365,201.34 46,284,854.67 945,080,972.42
44 Provision for impairment of assets
Item 31-12-2008
Current year
addition
Current year
reductions
30-06-2009
Bad debt provision 83,490,756.66 11,389,619.55 -346,043.32 95,226,419.53
Including: Accounts receivable 81,308,589.52 10,781,513.43 -346,043.32 92,436,146.27
Other accounts receivable 2,182,167.14 608,106.12 2,790,273.26
Provision for obsolete inventory 3,432,391.41 3,432,391.41
Including: Finished goods 3,432,391.41 3,432,391.41
Provision for impairment of longterm
equity investments 16,995,796.52 16,995,796.52
Provision for the impairment of fixed
assets 8,532,889.30 2,407.42 8,530,481.88
Including: Machinery and equipment 8,532,889.30 2,407.42 8,530,481.88Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 31
Ⅵ.Notes to the financial statements of the parent company
1、Accounts receivable
(1) Classified by account nature
30-06-2009 31-12-2008
Item
Amount
Proportion
(%)
Amount
Proportion
(%)
Receivables that are individually
significant 43,091,936.00 16.20 42,771,693.00 14.63
Receivables not individually
significant but with high risk in
groups
Other insignificant items 222,845,506.26 83.80 249,518,823.74 85.37
Total 265,937,442.26 100.00 292,290,516.74 100.00
(2) The ageing of accounts receivable and related provisions for bad debts
30-06-2009 31-12-2008
Ages Amount
Proportion
(%)
Provision for bad
debts
Amount
Proportion
(%)
Provision for bad
debts
Within1 year 85,190,810.48 32.03 4,197,747.49 160,830,908.98 55.03 8,006,093.69
1 to 2 years 89,347,122.37 33.60 8,934,712.24 70,421,079.27 24.09 7,042,107.93
2 to 3 years 51,136,575.61 19.23 15,340,972.68 22,216,835.70 7.60 6,665,050.71
3 to 4 years 16,431,905.75 6.18 8,215,952.88 14,083,662.94 4.82 7,041,831.47
4 to 5 years 8,036,023.43 3.02 6,428,818.74 9,974,046.16 3.41 7,979,236.93
Over 5 years 15,795,004.62 5.94 15,795,004.62 14,763,983.69 5.05 14,763,983.69
Total 265,937,442.26 100.00 58,913,208.65 292,290,516.74 100.00 51,498,304.42
* No arrearage from the shareholders holding over 5% (including 5%) of the equity of the Company existed in the
balance of accounts receivable.
2 Other accounts receivable
(1) Classified by account nature
30-06-2009 31-12-2008
Item
Amount
Proportion
(%)
Amount
Proportion
(%)
Receivables that are individually
significant 33,962,532.07 94.34 21,925,284.54 89.46
Receivables not individually
significant but with high risk in
groups
Other insignificant items 2,037,201.00 5.66 2,584,229.26 10.54
Total 35,999,733.07 100.00 24,509,513.80 100.00
(2) The ageing of other accounts receivable and related provisions for bad debts
30-06-2009 31-12-2008
Ages
Amount
Proportion
(%)
Provision for bad
debts
Amount
Proportion
(%)
Provision for bad
debts
Within1 year 35,833,233.07 99.54 424,264.71 23,184,676.72 94.60 176,622.11
1 to 2 years 100,000.00 0.28 10,000.00 669,095.93 2.73 66,909.59Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 32
2 to 3 years 16,500.00 0.04 4,950.00 314,070.05 1.28 94,221.02
3 to 4 years 50,000.00 0.14 25,000.00 301,538.00 1.23 150,769.00
4 to 5 years
Over 5 years 40,133.10 0.16 40,133.10
Total 35,999,733.07 100.00 464,214.71 24,509,513.80 100.00 528,654.82
* (1) No arrearage from the shareholders holding over 5% (including 5%) of the equity of the Company existed in
the balance of other accounts receivable.
(2) Other account receivable in the period-end increased 48.18% compared with that in the period-begin the main
reason of which was that the project account of the subsidiary company-Installation Company was not taken back.
3Long-term equity investments
Item 30-06-2009 31-12-2008
subsidiaries 131,792,371.42 131,792,371.42
Associates 923,897,974.65 936,462,882.49
Joint venture 17,444 ,047.37 18,080,176.62
Other long-term equity
investments 75,360,635.72 75,360,635.72
Less: Provision for
impairment of long-term
equity investments
16,995,796.52 16,995,796.52
Total 1,131,499,232.64 1,144,700,269.73
(1) Other long-term equity investment calculated by cost method
Name of invested Initial Amount impairment
company
Nature of
shares
31-12-2008 30-06-2009
Shareholding
percentage
31-12-2008 30-06-2009
Zibo Electric Traction
Machine Group Co.,
Ltd.
Legal
person
share
420,000.00 420,000.00 0.7%
Liaoning Mec Group
Co., Ltd.
Legal
person
share
1,020,000.00 1,020,000.00 2%
Suntek Technology Co.,
Ltd.
Legal
person
share
3,000,000.00 3,000,000.00 1.4% 3,000,000.00 3,000,000.00
Guotai Junan Securities
Co.,Ltd.
Legal
person
share
30,098,895.00 30,098,895.00 0.64% 1,582,164.89 1,582,164.89
Thermo King Container
Temperature Control
(Suzhou) Co., Ltd.
Legal
person
share
3,310,806.00 3,310,806.00 10%
Dalian Bingshan Group
Materials Trading Co. ,
Ltd
Legal
person
share
250,000.00 250,000.00 5%
Liaoning Enterprises
United Industry
Company
Legal
person
share
105,000.00 105,000.00 4.2% 105,000.00 105,000.00
Guotai Junan
Investment
Management Co., Ltd
Legal
person
share
3,057,316.00 3,057,316.00 0.22% 2,688,605.91 2,688,605.91
Shenyang Sanyo Airconditioner
Co., Ltd
Legal
person
share
34,098,618.72 34,098,618.72 10% 9,620,025.72 9,620,025.72
Total 75,360,635.72 75,360,635.72 16,995,796.52 16,995,796.52Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 33
(2) Investment to subsidiaries calculated by cost method
Name of invested company Initial Amount
Shareholding
percentage
31 December
2008
Current year
addition
Current
year
reductions
30 June 2009
Dalian Bingshan Group Refrigeration
Installation Company
20,036,841.62 100% 20,036,841.62 20,036,841.62
Dalian Bingshan Group Sales
Company
16,200,000.00 90% 16,200,000.00 16,200,000.00
Dalian Bingshan Metal Processing
Co., Ltd
12,501,344.60 64.25% 12,501,344.60 12,501,344.60
Dalian Bingshan Air-conditioning
Equipment Co., Ltd
36,506,570.00 70% 36,506,570.00 36,506,570.00
Dalian Bingshan Guardian
Automation Co., Ltd
1,522,117.80 60% 1,522,117.80 1,522,117.80
Dalian Bingshan Ryosetsu Quick
Freezing Equipment Co., Ltd
5,745,097.40 70% 5,745,097.40 5,745,097.40
Shanghai Bingshan Serial
Refrigeration Equipment Sales Co.,
Ltd
900,000.00 45% 900,000.00 900,000.00
Wuhan New World Refrigeration
Industrial Co., Ltd
17,980,400.00 51% 17,980,400.00 17,980,400.00
Wuhan New World Refrigeration Air
Conditioner Engineering Co., Ltd
400,000.00 5% 400,000.00 400,000.00
Dalian daleng Metal Technology Co.,
Ltd.
20,000,000.00 100% 20,000,000.00 20,000,000.00
Total 131,792,371.42 131,792,371.42 131,792,371.42
(3) Long-term equity investment calculated by equity method
Name of invested
company
Initial Amount
Sharehold-ing
percentage
31-12-2008
Changes in
current year
profit/loss
Cash dividend
received in
current year
30-06-2009
Thermo King-Dalian
Transport
Refrigeration Co.,
Ltd
6,313,174.25 25% 28,591,165.05 1,236,923.25 29,828,088.30
Dalian Grand Ocean
Thermo King
Transport
Refrigeration
Engineering Co., Ltd
2,871,708.00 40% 5,702,330.69 49,335.93 5,751,666.62
Dalian Sanyo
Refrigeration Co.,
Ltd.
40,606,709.20 40% 104,008,451.36 2,431,256.93 6,800,000.00 99,639,708.29
Dalian Honjo
Chemical Co., Ltd 3,908,911.50 30% 9,198,113.91 570,639.72 1,012,800.00 8,755,953.63
Dalian Sanyo Coldtrain
Co., Ltd 134,658,753.75 40% 186,846,805.70 2,364,523.74 8,000,000.00 181,211,329.44
Grand Ocean-showa
Auto Air
Conditioning
(Dalian) Co., Ltd.
24,402,234.58 20% 23,843,807.29 1,849,786.61 25,693,593.90
Dalian Sanyo
Compressor Co., Ltd. 176,953,841.88 40% 269,450,986.41 17,697,995.76 25,200,000.00 261,948,982.17
Dalian Meica
Electronics Co., Ltd. 9,649,590.00 30% 18,255,904.21 610,794.71 18,866,698.92
Dalian Sanyo Airconditioner
Co., Ltd 176,953,841.88 40% 186,987,992.13 1,129,706.32 188,117,698.45Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 34
Dalian Sanyo Home
Appliance Co., Ltd. 19,666,212.00 40% 21,975,918.79 -802,397.34 21,173,521.45
Dalian Bingshan
Group Import &
Export Co. , Ltd
1,200,000.00 24% 6,047,423.47 1,169,639.59 7,217,063.06
Beijing Huashang
Bingshan
Refrigeration and
Air-conditioning
Machinery Co., Ltd
490,000.00 49% 495,863.99 -9,264.11 486,599.88
Dalian Bingshan
H2O3 Environmental
Solution Co. , Ltd
2,731,377.50 33% 532,474.62 0.00 532,474.62
Dalian Fuji Bingshan
Vending Machine
Co., Ltd
66,416,364.00 49% 54,288,812.92 -536,400.06 53,752,412.86
Daliian Sanyo High-
Efficient
Refrigeration System
Co., Ltd.
20,000,000.00 25% 20,236,831.95 685,351.11 20,922,183.06
Dalian Bingshan –
P&A Recreation
Development
Engineering Co., Ltd
1,034,675.00 50% 2,992,535.29 -228,872.83 2,763,662.46
Dalian Jiale Vending
Machine Operation
Co., Ltd
18,750,000.00 50% 15,087,641.33 -407,256.42 14,680,384.91
Total 716,171,513.54 954,543,059.11 27,811,762.91 41,012,800.00 941,342,022.02
(4) Provision for impairment of long-term equity investments
Name of invested company 30-06-2009 31-12-2008
Suntek Technology Co., Ltd. 3,000,000.00 3,000,000.00
Guotai Junan Securities Co., Ltd. 1,582,164.89 1,582,164.89
Guotai Junan Investment Management Co., Ltd 2,688,605.91 2,688,605.91
Liaoning Enterprises United Industry Company 105,000.00 105,000.00
Shenyang Sanyo Air-conditioner Company Limited 9,620,025.72 9,620,025.72
Total 16,995,796.52 16,995,796.52
4 Revenue and cost of sales
(1) Revenue from main operations and cost of goods sold
Revenue Cost
Item
2009.01-06 2008.01-06 2009.01-06 2008.01-06
Refrigeration plant 340,243,857.09 480,005,228.88 276,396,218.51 404,570,206.61
Item 2009.01-06 2008.01-06
Revenue
Northeast of China 340,243,857.09 480,005,228.88
Total 340,243,857.09 480,005,228.88Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 35
Cost
Northeast of China 276,396,218.51 404,570,206.61
Total 276,396,218.51 404,570,206.61
(2) Other revenue and cost
Revenue Cost
Item
2009.01-06 2008.01-06 2009.01-06 2008.01-06
Sales of raw
materials and others 6,781,965.13 17,289,647.82 4,820,265.20 15,268,956.22
Item 2009.01-06 2008.01-06
Revenue
Northeast of China 6,781,965.13 17,289,647.82
Total 6,781,965.13 17,289,647.82
Cost
Northeast of China 4,820,265.20 15,268,956.22
Total 4,820,265.20 15,268,956.22
5 Gain/ (loss) from investments
Item 2009.01-06 2008.01-06
Gain arising from dividends of subsidiaries 3,021,735.98 5,335,027.88
Long-term equity investment income accounted for
by using the equity method
27,811,762.91 42,359,060.92
Other equity investment income 24,249,668.50 15,049,447.50
Total 55,083,167.39 62,743,536.30
Ⅶ. The relationship of the related parties and transactions
1. The related parties existing controlling relationship
（1）The related parties existing controlling relationship
Name of enterprise
Registered
address
Legal
representative
person
Registered
capital
Relationshi
p with the
Company Principal activities
Nature of
enterprise
Dalian Bingshan Group
Company Limited
Shahekou
Dist., Dalian
Zhang He RMB
126,540,000
Parent
Company
Installation and
manufactory of
refrigeration
equipment
Limited
liabilities
Company
Dalian Bingshan Group
Refrigeration Installation
Company (“Installation
Company”)
Shahekou
Dist., Dalian
Zhang
Hongzhi
RMB
20,036,841.62
Subsidiary Installation and
testing of
refrigeration
equipment
Limited
liabilities
Company
Dalian Bingshan Group
Sales Company (“Sales
Company”)
Shahekou
Dist., Dalian
Yang Bin RMB
18,000,000
Subsidiary Sale of
refrigeration
equipment
Limited
liabilities
Company
Ningbo Bingshan
Refrigeration Air
Conditioner Engineering
Company Limited
Ningbo Yang Bin RMB
3,000,000
Subsidiary
of
subsidiary
Installation,
wholesale and
repair of
refrigeration
equipment
Limited
liabilities
CompanyDalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 36
Dalian Bingshan Air-
Conditioning Equipment
Company Limited
(“Bingshan Air-
Conditioning”)
Development
Zone, Dalian
Yamamoto
Shunniti
JPY
700,000,000
Subsidiary Manufacture and
sale of
accessories of
refrigeration
equipment
Limited
liabilities
Company
Dalian Bingshan Metal
Processing Company
Limited (“Metal
Processing”)
High & new
Technology
Dist., Dalian
Zhang He USD
2,350,000
Subsidiary Process and sale
of metal
punching parts
Limited
liabilities
Company
Dalian Bingshan Guardian
Automation Co., Ltd.
High & new
Technology
Dist., Dalian
Mike Murphy GBP
210,000
Subsidiary Research, design
and develop
refrigerator
automation parts
Limited
liabilities
Company
Dalian Bingshan Ryosetsu
Quick Freezing Equipment
Co., Ltd.
Development
Zone, Dalian
Yamati
Yashuhiro
USD
1,000,000
Subsidiary Manufacture and
sale of
deepfreezing
equipment
Limited
liabilities
Company
Shanghai Bingshan Serial
Refrigeration Equipment
Sales Company
Jiading Dist.,
Shanghai
Yang Bin RMB
2,000,000
Subsidiary Sale and
installation of
refrigeration
equipment
Limited
liabilities
Company
Wuhan New World
Refrigeration Industrial
Company Limited
(“WNWRI”)
Hanyang
Dist., Wuhan
Mu
Chuanjiang
RMB
30,000,000
Subsidiary Design,
manufacture,
sale, installation
and test of screw
type refrigeration
compressor and
refrigeration
equipment
Limited
liabilities
Company
Wuhan New World
Refrigeration Air
Conditioner Engineering
Company Limited
Dongxihu
Dist., Wuhan
Ding Jie RMB
8,000,000
Subsidiary
of
subsidiary
Design,
installation, test
and repair of
refrigeration
equipment
Limited
liabilities
Company
Dalian Daleng Metal
Technology Company
Limited
Lvshunkou
Dist., Dalian
Zhang He RMB
20,000,000
Subsidiary Manufacture of
metal founding
parts and pipe
parts; process of
metal machine
parts(Preparing to
construct)
Limited
liabilities
Company
(2) Registered capital of the related parties existing controlling relationship and the changes
Name of enterprise 31-12-2008
Increase in the
period
Decrease in
the period
30-06-2009
Dalian Bingshan Group Company Limited RMB126,540,000.00 RMB126,540,000.00
Dalian Bingshan Group Refrigeration
Installation Company
RMB20,036,841.62 RMB20,036,841.62
Dalian Bingshan Group Sales Company RMB18,000,000.00 RMB18,000,000.00
Ningbo Bingshan Refrigeration Air
Conditioner Engineering Company
Limited
RMB3,000,000.00 RMB3,000,000.00Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 37
Dalian Bingshan Air-Conditioning
Equipment Company Limited
JPY700,000,000.00 JPY700,000,000.00
Dalian Bingshan Ryosetsu Quick Freezing
Equipment Co., Ltd.
USD1,000,000.00 USD1,000,000.00
Dalian Bingshan Metal Processing
Company Limited
USD2,350,000.00 USD2,350,000.00
Dalian Bingshan Guardian Automation
Co., Ltd
GBP210,000.00 GBP210,000.00
Shanghai Bingshan Serial Refrigeration
Equipment Sales Company
RMB2,000,000.00 RMB2,000,000.00
Wuhan New World Refrigeration
Industrial Company Limited
RMB30,000,000.00 RMB30,000,000.00
Wuhan New World Refrigeration Air
Conditioner Engineering Company
Limited
RMB8,000,000.00 RMB8,000,000.00
Dalian Daleng Metal Technology
Company Limited
RMB20,000,000.00 RMB20,000,000.00
（3）The shares or equity held by the related parties with controlling relationships and its changes
31-12-2008 30-06-2009
Name of enterprise
Amount Proportion
Increase
in the
period
Decrease
in the
period Amount Proportion
Dalian Bingshan Group Company
Limited
RMB
76,855,683.00
21.96%
RMB
76,855,683.00
21.96%
Dalian Bingshan Group
Refrigeration Installation
Company
RMB
20,036,841.62
100%
RMB
20,036,841.62
100%
Dalian Bingshan Group Sales
Company
RMB
16,200,000.00
90%
RMB
16,200,000.00
90%
Ningbo Bingshan Refrigeration
Air Conditioner Engineering
Company Limited
RMB
3,000,000.00
45.90% RMB3,000,000.00 45.90%
Dalian Bingshan Air-
Conditioning Equipment
Company Limited
JPY
490,000,000.00
70%
JPY
490,000,000.00
70%
Dalian Bingshan Ryosetsu Quick
Freezing Equipment Co., Ltd.
USD350,000.00 70% USD350,000.00 70%
Dalian Bingshan Metal
Processing Company Limited
USD1,510,000.00 64.25% USD1,510,000.00 64.25%
Dalian Bingshan Guardian
Automation Co., Ltd
GBP126,000.00 60% GBP126,000.00 60%
Shanghai Bingshan Serial
Refrigeration Equipment Sales
Company
RMB900,000.00 45% RMB900,000.00 45%
Wuhan New World Refrigeration
Industrial Company Limited
RMB
15,300,000.00
51%
RMB
15,300,000.00
51%
Wuhan New World Refrigeration
Air Conditioner Engineering
Company Limited
RMB400,000.00 5% RMB400,000.00 5%
Dalian Daleng Metal Technology
Company Limited
RMB
20,000,000.00
100%
RMB
20,000,000.00
100%
2、Type of the related parties without controlling relationship
Name of the related parties Nature of enterprise
Registered
place
Relationship with the
Company
Thermo King-Dalian Transport Refrigeration
Company Limited
Limited liabilities Company
Shengzhen Affiliated companyDalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 38
Dalian Sanyo Refrigeration Co., Ltd. Limited liabilities Company Dalian Affiliated company
Dalian Grand Ocean Thermo King Transport
Refrigeration Engineering Company Limited
Limited liabilities Company
Dalian Affiliated company
Grand Ocean-showa Auto Air Conditioning (Dalian)
Co., Ltd.
Limited liabilities Company
Dalian Affiliated company
Dalian Sanyo Cold-train Co., Ltd Limited liabilities Company Dalian Affiliated company
Dalian Free Trade Zone Sanyo Air conditioner Sales
Co., Ltd
Limited liabilities Company
Dalian
Subsidiary of Affiliated
company
Dalian Sanyo Air-conditioner Co., Ltd Limited liabilities Company Dalian Affiliated company
Dalian Sanyo Compressor Co., Ltd Limited liabilities Company Dalian Affiliated company
Dalian Honjo Chemical Company Limited Limited liabilities Company Dalian Affiliated company
Dalian Sanyo Meica Electronics Co., Ltd Limited liabilities Company Dalian Affiliated company
Dalian Sanyo Home Appliance Co., Ltd Limited liabilities Company Dalian Affiliated company
Dalian Bingshan H2O3 Environmental Solution Co. ,
Ltd
Limited liabilities Company
Dalian Affiliated company
Beijing Huashang Bingshan Serial Refrigeration
Equipment Co., Ltd.
Limited liabilities Company
Beijing Affiliated company
Dalian Fuji Bingshan Vending Machine Co., Ltd Limited liabilities Company Dalian Affiliated company
Shenyang Sanyo Air-conditioner Co., Ltd Limited liabilities Company Shenyang Affiliated company
Dalian Jiale Vending Machine Operation Co., Ltd Limited liabilities Company Dalian Joint Ventures
Dalian Bingshan – P&A Recreation Development
Engineering Limited
Limited liabilities Company
Dalian Joint Ventures
Dalian Bingshan Group Cold Drink Equipment Co.,
Ltd.
Limited liabilities Company
Dalian
Subsidiary of Dalian
Bingshan Group
Dalian Bingshan Group Refrigeration Equipment
Co., Ltd.
Limited liabilities Company
Dalian
Subsidiary of Dalian
Bingshan Group
Dalian Third Refrigeration Equipment Factory
Collective
Dalian
Subsidiary of Dalian
Bingshan Group
Dalian Bingshan Group Jinzhou Heavy Machinery
Co., Ltd
State-owned
Dalian
Subsidiary of Dalian
Bingshan Group
Dalian Bingshan Group Import & Export Co. , Ltd
Limited liabilities Company
Dalian
Subsidiary of Dalian
Bingshan Group
Beijing Bingshan Serial Refrigeration Equipment
Co., Ltd.
Limited liabilities Company
Beijing
Subsidiary of Dalian
Bingshan Group
Dalian Bingshan Group Materials Trading Co. , Ltd
Limited liabilities Company
Dalian
Subsidiary of Dalian
Bingshan Group
Dalian Seiko Electric Control Co., Ltd
Limited liabilities Company
Dalian
Affiliated company of
Dalian Bingshan Group
Dalian Spindle Cooling Towers Co., Ltd
Limited liabilities Company
Dalian
Affiliated company of
Dalian Bingshan Group
Dalian Bingshan Metal Technology Co., Ltd
Limited liabilities Company
Dalian
Affiliated company of
Dalian Bingshan Group
Dalian Mahe Level Control Electrical Appliances
Co., Ltd
Limited liabilities Company
Dalian
Affiliated company of
Dalian Bingshan Group
Dalian JCI Cryogenic Industries Co., Ltd
Limited liabilities Company
Dalian
Affiliated company of
Dalian Bingshan Group
Linde Engineering (Dalian) Co., Ltd
Limited liabilities Company
Dalian
Affiliated company of
Dalian Bingshan Group
Dalian Bingshan Sanyo Laundering and Dyeing Co.,
Ltd
Limited liabilities Company
Dalian
Affiliated company of
Dalian Bingshan Group
BAC Dalian Co., Ltd
Limited liabilities Company
Dalian
Affiliated company of
Dalian Bingshan GroupDalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 39
3、The transactions between the Company and the related parties
(1) Purchases of goods from related parties:
Name of the related parties 2009.01-06 2008.01-06
Dalian Sanyo Refrigeration Co., Ltd 1,175,140.12
Dalian Sanyo Cold-train Co., Ltd 8,175,450.15 42,286.75
Dalian Sanyo Air-conditioner Co., Ltd 1,715,040.77 7,555,060.84
Dalian Sanyo Compressor Co., Ltd 1,855,348.59 6,058,992.48
BAC Dalian Co., Ltd 16,350,099.27 35,057,896.58
Dalian Bingshan Group Cold Drink Equipment Co., Ltd. 11,490,162.79 10,430,445.77
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 23,309,646.79 16,616,304.41
Dalian Third Refrigeration Equipment Factory 2,263,553.76 1,266,074.20
Dalian Seiko Electric Control Co., Ltd 1,732,568.00 1,766,323.08
Dalian Spindle Cooling Towers Co., Ltd 335,000.00 1,379,854.70
Dalian Bingshan Group Import & Export Co. , Ltd 21,667,956.61 11,894,184.73
Dalian Bingshan Group Materials Trading Co. , Ltd 15,882,865.91 7,802,442.06
Dalian Bingshan H2O3 Environmental Solution Co. , Ltd 257,008.55
Dalian Bingshan Metal Technology Co. , Ltd 60,209.54
Total 104,837,902.18 101,302,014.27
* The Company purchased goods from related parties is 19.89% of total purchases during the report period.
(2) Sales of goods to related parties
Name of the related parties 2009.01-06 2008.01-06
Dalian Sanyo Compressor Co., Ltd. 4,508,467.86 3,852,670.09
Dalian Sanyo Refrigeration Co., Ltd. 2,267,245.47 140,144.61
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 289,933.33
Thermo King-Dalian Transport Refrigeration Company
Limited 4,379,807.64 10,093,144.25
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 3,268,653.33 2,551,306.60
Beijing Huashang Bingshan Refrigeration and Airconditioning
Machinery Co., Ltd 2,228,507.00 2,919,711.97
Dalian Bingshan Group Import & Export Co. , Ltd 40,038,842.87 72,105,619.98
Dalian Sanyo Air-conditioner Co., Ltd 5,656,296.73 11,939,529.39
Dalian Seiko Electric Control Co., Ltd 1538.46
Dalian Sanyo Cold-train Co., Ltd 9,767,597.28 212,931.18
Dalian Fuji Bingshan Vending Machine Co., Ltd 309,112.20 739,151.98
Dalian Bingshan Metal Technology Co. , Ltd 77,560.68
Shenyang Sanyo Air-conditioner Co., Ltd 325,061.54 1,495,726.50
Dalian Third Refrigeration Equipment Factory 1,333.33
Dalian Sanyo High-Efficiency Refrigeration System Co., Ltd. 276,687.83
Total 73,105,173.76 106,341,408.34
* The Company sales income from related parties is 12.43% of total sales income during the report period.
4 Amounts due from/to related parties
(1) Notes receivable
Name of the related parties 30-06-2009 31-12-2008
Dalian Sanyo Compressor Co., Ltd. 2,977,764.01 2,943,848.38
Thermo King-Dalian Transport Refrigeration Company Limited 1,100,000.00
Dalian Sanyo Air-conditioner Co., Ltd 24,534,741.94 12,804,446.17
Shenyang Sanyo Air-conditioner Co., Ltd 1,870,200.35
Dalian Bingshan Group Import & Export Co. , Ltd 8,783,544.30 444,678.03
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 700,000.00Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 40
(2) Account paid in advance
Name of the related parties 30-06-2009 31-12-2008
Dalian Sanyo Air-conditioner Co., Ltd 414,234.00 1,507,912.00
Dalian Sanyo Cold-train Co., Ltd 49,070.00 621,531.00
BAC Dalian Co., Ltd 1,600.00 1,600.00
(3) Accounts receivable
Name of the related parties 30-06-2009 31-12-2008
Dalian Sanyo Compressor Co., Ltd. 2,542,031.62 404,362.25
Dalian Sanyo Refrigeration Co., Ltd. 1,962,350.70 8,302.00
Dalian Sanyo Cold-train Co., Ltd 856,638.92 113,175.00
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 4,003,450.85 199,641.75
Thermo King-Dalian Transport Refrigeration Company Limited 6,579,894.27 5,480,916.91
Dalian Sanyo Air-conditioner Co., Ltd 7,231,919.21 5,970,426.41
Dalian Bingshan Group Import & Export Co. , Ltd 238,687.20 3,812,695.95
Dalian Bingshan – P&A Recreation Development Engineering Limited 35,444.55 66,094.55
Beijing Huashang Bingshan Refrigeration and Air-conditioning
Machinery Co., Ltd 310,450.85 613,659.85
Dalian Seiko Electric Control Co., Ltd 3,150.00 3,150.00
Dalian Fuji Bingshan Vending Machine Co., Ltd 120,652.21 343,461.82
BAC Dalian Co., Ltd 30,100.00
Shenyang Sanyo Air-conditioner Co., Ltd 1,581,480.40
Dalian Sanyo High-Efficiency Refrigeration System Co., Ltd. 241,768.11 212,215.00
(4) Other accounts receivable
Name of the related parties 30-06-2009 31-12-2008
Dalian Sanyo Cold-train Co., Ltd 700,000.00
Dalian Bingshan Group Import & Export Co. , Ltd 40,767.35 40,767.35
(5) Dividends receivable
Name of the related parties 30-06-2009 31-12-2008
Dalian Sanyo Refrigeration Co., Ltd. 6,800,000.00 3,200,000.00
Dalian Sanyo Cold-train Co., Ltd 8,000,000.00
Dalian Sanyo Compressor Co., Ltd. 11,200,000.00
Wuhan Steel and Electricity Co., Ltd. 44,600.00
(6) Notes payable
Name of the related parties 30-06-2009 31-12-2008
Dalian Seiko Electric Control Co., Ltd 300,000.00 380,000.00
Dalian Spindle Cooling Towers Co., Ltd 556,110.00
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 18,270,000.00 6,000,000.00
Dalian Bingshan Group Cold Drink Equipment Co., Ltd. 6,415,000.00 5,450,000.00
BAC Dalian Co., Ltd 13,000,000.00 19,300,000.00
Dalian Bingshan Group Materials Trading Co. , Ltd 700,000.00 1,200,000.00
Dalian Third Refrigeration Equipment Factory 1,200,000.00 380,000.00
Dalian Bingshan Group Import & Export Co. , Ltd 625,137.00Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 41
(7) Accounts payable
Name of the related parties 30-06-2009 31-12-2008
Dalian Third Refrigeration Equipment Factory 735,644.18 2,526,963.67
Dalian Bingshan Group Cold Drink Equipment Co., Ltd. 6,107,514.23 9,209,908.66
BAC Dalian Co., Ltd 22,063,259.00 11,589,413.27
Dalian Seiko Electric Control Co., Ltd 846,183.00 925,023.00
Dalian Bingshan Group Materials Trading Co. , Ltd 7,594,656.85
Dalian Sanyo Air-conditioner Co., Ltd 2,217.10
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 5,038,875.40 6,613,327.81
Dalian Sanyo Refrigeration Co., Ltd. 145,300.00
Dalian Sanyo Cold-train Co., Ltd 10,866.00 165,664.53
Dalian Sanyo Home Appliance Co., Ltd. 27,000.00 42,570.00
Dalian Spindle Cooling Towers Co., Ltd 424,000.00 1,014,643.35
Dalian Bingshan Group Import & Export Co. , Ltd 427,538.88 1,441,878.76
Dalian Sanyo Compressor Co., Ltd. 4,714.44 120,613.50
Dalian Bingshan Metal Technology Co. , Ltd 60,209.54 279,472.00
Dalian Bingshan Sanyo Laundering and Dyeing Co., Ltd 38,693.51 38,693.51
(8) Accounts received in advance
Name of the related parties 30-06-2009 31-12-2008
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 1,908.48
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 4,469.50
Dalian Sanyo Cold-train Co., Ltd 241,824.28 241,824.28
Shenyang Sanyo Air-conditioner Co., Ltd 39,041.95
(9) Other accounts payable
Name of the related parties 30-06-2009 31-12-2008
Dalian Bingshan Group Co.,Ltd. 11,183,795.81 11,183,795.81
Dalian Bingshan Sanyo Laundering and Dyeing Co., Ltd 14,400.00
Dalian Third Refrigeration Equipment Factory 101,000.00 101,000.00
Dalian Bingshan H2O3 Environmental Solution Co. , Ltd 566,360.68 566,360.68
Ⅷ. Contingencies and Commitments
Ended June 30, 2009, the Company and its subsidiaries has no significant contingents
or commitments.
Ⅸ. Supplementary Information
1.Non-recurring profits and losses
Non-recurring gains and losses item 2009.01-06 2008.01-06
1. Gain/loss from disposal of non-current assets 44,995.25 1,989,107.30
2.Governmental subsidy written into current gains and losses 2,041,666.67 2,966,871.85
3. Other net income and expense from non-operation 115,579.54 -160,301.54
Total 2,202,241.46 4,795,677.61
Less：affected amount of income tax from non-recurring gains and
losses
515,950.38 896,740.56
non-recurring gains and losses 1,686,291.08 3,898,937.05
Included: Attributable to minority interest 94,632.02 1,032,807.07
Attributable to parent company 1,591,659.06 2,866,129.98Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 42
2. Earnings per share
Item 2009.01-06 2008.01-06
Net profit attributable to the Company’s ordinary shareholders 0.18 0.19
Net profit attributable to the Company’s ordinary shareholders after deducting
non-recurring gains and losses
0.18 0.18
3. Return on equity
2009.01-06 2008.01-06
Item Fully diluted
Weighted
average
Fully diluted
Weighted
average
Net profit attributable to the Company’s
ordinary shareholders 3.74 3.73 4.06 4.07
Net profit attributable to the Company’s
ordinary shareholders after deducting nonrecurring
gains and losses
3.66 3.63 3.89 3.90
Ⅹ.Approval of the financial statements
The financial statements were approved by the board of directors on 19 August, 2009.
§8 Reference Documents
1. The original copy of the semi-annual report bearing the signature and seal of the legal
representative.
2. The accounting statements bearing the signatures and seals of the legal representative, the
financial majordomo and the accountants in charge.
3. The original copies of all the Company's documents and the original copies of the bulletins
published on the newspapers designated by the China Securities Regulatory Commission in the
report period.
Board of Directors of Dalian Refrigeration Company Limited
21 August, 2009Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 43
CONSOLIDATED BALANCE SHEET
Prepared by Dalian Refrigeration Company Limited 30 June 2009 Unit: RMB Yuan
Items Ending balance Beginning Balance
Consolidation Parent company Consolidation Parent company
Current Assets:
Monetary funds 302,806,253.16 229,449,211.41 312,337,783.75 228,316,557.10
Transaction financial asset
Notes receivable 88,439,402.45 65,740,686.58 45,482,748.85 43,487,353.38
Account receivable 408,427,324.92 207,024,233.61 437,078,053.74 240,792,212.32
Account paid in advance 30,522,059.02 9,456,027.22 24,099,268.38 4,009,891.07
Dividend receivable 26,000,000.00 37,057,569.72 3,244,600.00 11,235,833.74
Other account receivable 21,069,394.46 35,535,518.36 23,628,868.03 23,980,858.98
Financial assets purchased under
agreements to resell
Inventories 305,685,926.38 213,884,980.21 337,713,032.95 218,598,315.29
Non-current assets due within 1
year
Other current assets
Total current assets 1,182,950,360.39 798,148,227.11 1,183,584,355.70 770,421,021.88
Non-current assets:
Available for sale financial assets 15,444,000.00 15,444,000.00 6,633,900.00 6,633,900.00
Held to maturity investments
Long-term account receivable
Long-term equity investment 1,001,451,003.72 1,131,499,232.64 1,014,652,040.81 1,144,700,269.73
Investing property
Fixed asset 370,360,726.27 219,278,740.08 384,129,544.11 228,202,302.25
Project in construction 7,134,293.00 3,702,146.93 4,775,695.11 3,159,913.69
Engineering material
Fixed asset disposal
Bearer biological asset
Oil assets
Intangible assets 102,792,828.85 30,133,757.26 103,849,972.78 30,499,281.97
Development expense
Goodwill
Long-term expense to be
apportioned 3,466,192.74 3,033,769.67 3,535,431.90 3,094,243.49
Deferred tax assets 19,998,813.51 14,431,811.36 18,465,615.23 13,038,422.19
Other non-current assets
Total non-current assets 1,520,647,858.09 1,417,523,457.94 1,536,042,199.94 1,429,328,333.32
Total assets 2,703,598,218.48 2,215,671,685.05 2,719,626,555.64 2,199,749,355.20Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 44
CONSOLIDATED BALANCE SHEET (CONTINUED)
Prepared by Dalian Refrigeration Company Limited 30 June 2009 Unit: RMB Yuan
Items Ending balance Beginning Balance
Consolidation Parent company Consolidation Parent company
Current liabilities:
Short-term borrowings 110,000,000.00 100,000,000.00 110,000,000.00 100,000,000.00
Transaction financial liabilities
Notes payable 112,682,065.10 99,533,581.67 76,889,017.30 58,483,522.81
Account payable 374,893,558.14 227,083,798.68 397,286,738.10 232,111,721.35
Account received in advance 132,071,294.81 70,234,544.60 168,263,502.28 92,541,212.02
Employee’s compensation payable 22,374,466.55 830,240.82 42,014,613.41 16,850,545.94
Tax payable 8,454,905.59 3,044,168.87 10,306,291.74 5,621,080.62
Dividend payable 17,937,966.91 12,061,508.45 6,724,584.76 533,156.00
Other account payable 39,287,963.40 7,958,740.68 41,694,655.74 13,165,466.39
Non-current liabilities due within 1
year 50,000,000.00 50,000,000.00 50,000,000.00 50,000,000.00
Other current liabilities
Total current liabilities 867,702,220.50 570,746,583.77 903,179,403.33 569,306,705.13
Non-current liabilities:
Long-term borrowings
Debentures payable
Long-term payables
Specific purpose account payables
Provisions for contingent liabilities
Deferred tax liabilities 3,284,076.92 3,284,076.92 1,081,551.92 1,081,551.92
Other non-current liabilities 74,094,675.00 21,179,670.00 76,426,173.00 22,954,170.00
Total non-current liabilities 77,378,751.92 24,463,746.92 77,507,724.92 24,035,721.92
Total liabilities 945,080,972.42 595,210,330.69 980,687,128.25 593,342,427.05
Owner’s equity
Share capital 350,014,975.00 350,014,975.00 350,014,975.00 350,014,975.00
Capital surplus 596,718,628.00 595,489,700.38 590,111,053.00 588,882,125.38
Less: Treasury Stock
Reserved fund 392,661,101.92 392,661,101.92 368,103,745.84 368,103,745.84
General risk provision
Retained earnings 333,897,748.66 282,295,577.06 348,583,641.82 299,406,081.93
Foreign exchange difference
Total owners' equity attributable to
holding company 1,673,292,453.58 1,620,461,354.36 1,656,813,415.66 1,606,406,928.15
Minority interest 85,224,792.48 82,126,011.73
Total owner’s equity 1,758,517,246.06 1,620,461,354.36 1,738,939,427.39 1,606,406,928.15
Total liabilities and owner’s equity 2,703,598,218.48 2,215,671,685.05 2,719,626,555.64 2,199,749,355.20Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 45
CONSOLIDATED INCOME STATEMENT
Prepared by Dalian Refrigeration Company Limited 2009.01-06 Unit: RMB Yuan
Items 2009.01-06 2008.01-06
Consolidation Parent company Consolidation Parent company
I. Total sales 595,410,146.46 347,025,822.22 749,802,132.67 497,294,876.70
Including: Operating income 595,410,146.46 347,025,822.22 749,802,132.67 497,294,876.70
II. Total operating cost 581,977,984.47 345,279,063.04 735,375,802.74 494,473,647.38
Including: Operating cost 474,282,085.58 281,216,483.71 602,661,320.70 419,839,162.83
Taxes and associate charges 2,231,991.88 1,260,280.14 2,610,203.49 1,398,696.28
Selling and distribution expenses 29,230,427.61 13,353,727.67 35,899,753.30 15,548,319.15
Administrative expenses 59,425,945.48 37,619,548.25 71,378,473.67 44,888,541.66
Financial expense 5,417,914.37 5,015,247.24 3,765,928.77 3,216,498.15
Impairment loss 11,389,619.55 6,813,776.03 19,060,122.81 9,582,429.31
Add: gain from change in fair value
Gain/(loss) from investment 52,061,431.41 55,083,167.39 57,408,508.42 62,743,536.30
Including: income form investment
on affiliated enterprise and jointly
enterprise
27,811,762.91 27,811,762.91 42,359,060.92 42,359,060.92
Foreign exchange difference
III. Operating profit 65,493,593.40 56,829,926.57 71,834,838.35 65,564,765.62
Add: non-business income 3,847,541.08 2,908,684.24 5,202,692.33 2,548,192.60
Less: non-business expense 123,785.23 25,388.88 407,014.72 205,604.22
Including: loss from non-current
asset disposal 50,854.88 25,388.88 155,808.12 125,604.22
IV. Total profit 69,217,349.25 59,713,221.93 76,630,515.96 67,907,354.00
Less: Income tax 1,759,639.13 -235,875.53 5,317,387.97 2,408,884.60
V. Net profit 67,457,710.12 59,949,097.46 71,313,127.99 65,498,469.40
Net profit attributable to parent
company 62,573,899.67 59,949,097.46 64,760,130.37
Minority shareholders’ gains and
losses 4,883,810.45 6,552,997.62
VI. Earnings per share
(I) basic earnings per share 0.18 0.19
(II) diluted earnings per share 0.18 0.19Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 46
CONSOLIDATED CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Company Limited 2009.01-06 Unit: RMB Yuan
Items 2009.01-06 2008.01-06
Consolidation Parent company Consolidation Parent company
1. Cash flows arising from operating activities:
Cash received from sales of goods or rending of services 475,794,707.61 294,009,076.66 692,737,142.69 400,261,513.16
Refund of tax and fare received 165,859.01 35,000.00
Other cash received relating to operating activities 15,215,928.52 8,610,621.07 6,646,694.33 8,144,809.64
Sub-total of cash inflows 491,176,495.14 302,619,697.73 699,418,837.02 408,406,322.80
Cash paid for goods and services 311,197,441.97 198,479,850.18 573,583,808.48 351,832,599.96
Cash paid to and on behalf of employees 82,180,297.41 49,769,112.09 96,110,674.34 59,890,218.30
Tax and fare paid 47,309,737.61 26,889,322.44 35,527,467.68 20,450,706.81
Other cash paid relating to operating activities 48,262,072.09 21,641,993.74 49,493,297.98 34,511,650.63
Sub-total of cash outflows 488,949,549.08 296,780,278.45 754,715,248.48 466,685,175.70
Net cash flow from operating activities 2,226,946.06 5,839,419.28 -55,296,411.46 -58,278,852.90
2. Cash Flows arising from Investment Activities:
Cash received from return of investments
Cash received from investment income 42,507,068.50 42,462,468.50 59,130,122.40 59,130,122.40
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 56,950.00 44,000.00 8,088,528.00 216,663.00
Proceeds from sale of subsidiaries and other operating
units
Other cash received relating to investment activities 9,290,000.00 9,290,000.00
Sub-total of cash inflows 42,564,018.50 42,506,468.50 76,508,650.40 68,636,785.40
Cash paid for acquiring fixed assets, intangible assets
and other long-term assets 6,375,832.38 1,165,334.85 23,485,201.41 3,082,770.25
Cash paid for acquiring investments 24,478,593.00 24,478,593.00
Net cash used in loans
Net cash used in acquiring subsidiaries and other
operating units
Other cash paid relating to investment activities 3,358,898.85
Sub-total of cash outflows 6,375,832.38 1,165,334.85 51,322,693.26 27,561,363.25
Net cash flow from investing activities 36,188,186.12 41,341,133.65 25,185,957.14 41,075,422.15
3. Cash Flows arising from Financing Activities:
Cash received from absorbing investment
Including: Cash received from increase in minority
interest
Cash received from borrowings 54,220,000.00 50,000,000.00 5,000,000.00
Cash received from issuing debentures
Other proceeds relating to financing activities
Sub-total of cash inflows 54,220,000.00 50,000,000.00 5,000,000.00
Cash paid for settling debt 53,660,000.00 50,000,000.00 20,000,000.00
Cash paid for distribution of dividends or profit or
reimbursing interest 48,373,809.55 46,047,893.80 14,471,931.73 13,823,852.45
Including: dividends or profit paid to minority interest
Other cash payments relating to financing activities 124,000.00
Sub-total of cash outflows 102,157,809.55 96,047,893.80 34,471,931.73 13,823,852.45
Net cash flow from financing activities -47,937,809.55 -46,047,893.80 -29,471,931.73 -13,823,852.45
4. Influence on cash due to fluctuation in exchange rate -8,853.22 -4.82 100,347.65 -785.59
5. Increase in cash and cash equivalents -9,531,530.59 1,132,654.31 -59,482,038.40 -31,028,068.79
Add : Cash and cash equivalents at year-begin 312,337,783.75 228,316,557.10 244,799,726.11 145,162,895.61
6.Cash and cash equivalents at the end of the year 302,806,253.16 229,449,211.41 185,317,687.71 114,134,826.82Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 47
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Dalian Refrigeration Company Limited 2009.01-06 Unit: RMB Yuan
2009.01-06
Owners’ equity attributable to parent company
Items
share capital Capital suplus
Lessen:
treasury
stock
Surplus reserve
General
risk
reserve
Retained profits Others
Minority
equity
Total of
owners’ equity
I. balance at the end of last
year 350,014,975.00 590,111,053.00 368,103,745.84 348,583,641.82 82,126,011.73 1,738,939,427.39
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
this year 350,014,975.00 590,111,053.00 368,103,745.84 348,583,641.82 82,126,011.73 1,738,939,427.39
III. Increase/ decrease of
amount in this year (“-”
means decrease)
6,607,575.00 24,557,356.08 -14,685,893.16 3,098,780.75 19,577,818.67
(I) Net profit 62,573,899.67 4,883,810.45 67,457,710.12
(II)Gain/loss listed to owners’
equity directly 6,607,575.00 6,607,575.00
1. Net amount on changes in
book value of financial assets
available for sale
6,607,575.00 6,607,575.00
2.Effect on changes in other
owners’ equity of invested
units under equity method
3. Effect on income tax
related to items
4. Others
Subtotal of (I)and (II) 6,607,575.00 62,573,899.67 4,883,810.45 74,065,285.12
(III) Input an reduced capital
of owners
1. Input capital of owners
2.Amount of Shares included
in the owners’ equity
3. Others
(IV) Profit distribution 24,557,356.08 -77,259,792.83 -1,785,029.70 -54,487,466.45
1. Withdrawing surplus
public reserve 24,557,356.08 -24,557,356.08
2. Withdrawing general risk
reserve
3. Distribution to all owners
(shareholders) -52,502,246.25 -1,785,029.70 -54,287,275.95
4. Others -200,190.50 -200,190.50
(V)Internal carrying forward
of owners’ equity
1. New increase of capital
(share capital) from capital
reserves
2. Convert surplus reserves to
capital(share capital)
3. Surplus reserves make up
losses
4. Others
IV. Balance at the end of this
period 350,014,975.00 596,718,628.00 392,661,101.92 333,897,748.66 85,224,792.48 1,758,517,246.06Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 48
2008.01-06
Owners’ equity attributable to parent company
Items
share capital Capital surplus
Lessen:
treasury
stock
Surplus reserve
General
risk
reserve
Retained profits Others
Minority
equity
Total of
owners’ equity
I. balance at the end of last
year 350,014,975.00 588,753,483.22 332,959,114.14 312,557,010.42 84,315,909.19 1,668,600,491.97
1. Change of accounting
policy
2. Correction of errors in
previous period
II. balance at the beginning of
this year 350,014,975.00 588,753,483.22 332,959,114.14 312,557,010.42 84,315,909.19 1,668,600,491.97
III. Increase/ decrease of
amount in this year (“-”
means decrease)
2,059,400.00 23,459,000.94 -14,297,530.69 4,079,233.32 15,300,103.57
(I) Net profit 64,760,130.37 6,552,997.62 71,313,127.99
(II)Gain/loss listed to owners’
equity directly 2,059,400.00 2,059,400.00
1. Net amount on changes in
book value of financial assets
available for sale
-7,230,600.00 -7,230,600.00
2.Effect on changes in other
owners’ equity of invested
units under equity method
3. Effect on income tax
related to items
4. Others 9,290,000.00 9,290,000.00
Subtotal of (I)and (II) 2,059,400.00 64,760,130.37 6,552,997.62 73,372,527.99
(III) Input an reduced capital
of owners
1. Input capital of owners
2.Amount of Shares included
in the owners’ equity
3. Others
(IV) Profit distribution 23,459,000.94 -79,057,661.06 -2,473,764.30 -58,072,424.42
1. Withdrawing surplus
public reserve 23,459,000.94 -23,459,000.94
2. Withdrawing general risk
reserve
3. Distribution to all owners
(shareholders) -52,502,246.25 -2,473,764.30 -54,976,010.55
4. Others -3,096,413.87 -3,096,413.87
(V)Internal carrying forward
of owners’ equity
1. New increase of capital
(share capital) from capital
reserves
2. Convert surplus reserves to
capital(share capital)
3. Surplus reserves make up
losses
4. Others
IV. Balance at the end of this
period 350,014,975.00 590,812,883.22 356,418,115.08 298,259,479.73 88,395,142.51 1,683,900,595.54Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 49
STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Dalian Refrigeration Company Limited 2009.01-06 Unit: RMB Yuan
2009.01-06
Items
share capital Capital surplus Lessen: treasury
stock Surplus reserve Retained profits
Total of owners’
equity
I. balance at the end of last
year 350,014,975.00 588,882,125.38 368,103,745.84 299,406,081.93 1,606,406,928.15
1. Change of accounting
policy
2. Correction of errors in
previous period
II. balance at the beginning of
this year 350,014,975.00 588,882,125.38 368,103,745.84 299,406,081.93 1,606,406,928.15
III. Increase/ decrease of
amount in this year (“-”
means decrease)
6,607,575.00 24,557,356.08 -17,110,504.87 14,054,426.21
(I) Net profit 59,949,097.46 59,949,097.46
(II)Gain/loss listed to owners’
equity directly 6,607,575.00 6,607,575.00
1. Net amount on changes in
book value of financial assets
available for sale
6,607,575.00 6,607,575.00
2.Effect on changes in other
owners’ equity of invested
units under equity method
3. Effect on income tax
related to items
4. Others
Subtotal of (I)and (II) 6,607,575.00 59,949,097.46 66,556,672.46
(III) Input an reduced capital
of owners
1. Input capital of owners
2.Amount of Shares included
in the owners’ equity
3. Others
(IV) Profit distribution 24,557,356.08 -77,059,602.33 -52,502,246.25
1. Withdrawing surplus
public reserve 24,557,356.08 -24,557,356.08
2. Withdrawing general risk
reserve
3. Distribution to all owners
(shareholders) -52,502,246.25 -52,502,246.25
4. Others
(V)Internal carrying forward
of owners’ equity
1. New increase of capital
(share capital) from capital
reserves
2. Convert surplus reserves to
capital(share capital)
3. Surplus reserves make up
losses
4. Others
IV. Balance at the end of this
period 350,014,975.00 595,489,700.38 392,661,101.92 282,295,577.06 1,620,461,354.36Dalian Refrigeration Co., Ltd. 2009 Semiannual Report
Page 50
2008.01-06
Items
share capital Capital surplus Lessen: treasury
stock Surplus reserve Retained profits
Total of owners’
equity
I. balance at the end of last
year 350,014,975.00 587,524,555.60 332,959,114.14 264,266,179.46 1,534,764,824.20
1. Change of accounting
policy
2. Correction of errors in
previous period
II. balance at the beginning of
this year 350,014,975.00 587,524,555.60 332,959,114.14 264,266,179.46 1,534,764,824.20
III. Increase/ decrease of
amount in this year (“-”
means decrease)
2,059,400.00 23,459,000.94 (10,462,777.79) 15,055,623.15
(I) Net profit 65,498,469.40 65,498,469.40
(II)Gain/loss listed to owners’
equity directly 2,059,400.00 2,059,400.00
1. Net amount on changes in
book value of financial assets
available for sale
(7,230,600.00) (7,230,600.00)
2.Effect on changes in other
owners’ equity of invested
units under equity method
3. Effect on income tax
related to items
4. Others 9,290,000.00 9,290,000.00
Subtotal of (I)and (II) 2,059,400.00 65,498,469.40 67,557,869.40
(III) Input an reduced capital
of owners
1. Input capital of owners
2.Amount of Shares included
in the owners’ equity
3. Others
(IV) Profit distribution 23,459,000.94 (75,961,247.19) (52,502,246.25)
1. Withdrawing surplus
public reserve 23,459,000.94 (23,459,000.94)
2. Withdrawing general risk
reserve
3. Distribution to all owners
(shareholders) (52,502,246.25) (52,502,246.25)
4. Others
(V)Internal carrying forward
of owners’ equity
1. New increase of capital
(share capital) from capital
reserves
2. Convert surplus reserves to
capital(share capital)
3. Surplus reserves make up
losses
4. Others
IV. Balance at the end of this
period 350,014,975.00 589,583,955.60 356,418,115.08 253,803,401.67 1,549,820,447.35
