DALIAN REFRIGERATION CO., LTD.
QUARTERLY REPORT FOR FIRST QUARTER, 2010
§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 no 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.
1.2 The Company’s quarterly 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
quarterly report is true and complete.
1.4 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.
§2 Company Profile
2.1 Major accounting data and financial indexes
By the end of the
report period
By the end of last
year
Increase/decrease over the
end of last year(%)
Total assets 2,709,104,325.76 2,706,288,741.35 0.10%
Shareholder’s equity 1,706,929,467.62 1,689,604,922.90 1.03%
Share capital 350,014,975.00 350,014,975.00 0.00%
Net assets per share 4.88 4.83 1.04%
Report period
From beginning of
year to the end of
report period
Increase/decrease over the
same period of last year(%)
Total operating income 281,828,260.92 273,106,990.16 3.19%
Net profit 10,515,144.72 18,519,814.47 -43.22%
Net cash generated from
operating activities
3,969,725.85 -24,530,976.58 116.18%
Net cash per share
generated from operating
activities
0.01 -0.07 114.29%
Basic earnings per share 0.03 0.05 -40.00%
Diluted earnings per share 0.03 0.05 -40.00%
Return on equity 0.62% 1.10%
Decrease 0.48 percentage
points
ROE after deducting
non-recurring gains/losses
0.61% 1.06%
Decrease 0.45 percentage
points2
Item of non-recurring gains and losses
Amount from beginning of year to the end of
report period
Non-operating income and expense, net 457,021.55
Income tax effect -58,395.34
Minority shareholders’ gains and losses -239,187.47
Total 159,438.74
2.2 Total number and particulars of the shareholders by the end of the report period
Total shareholders at the end of report period 36,795
Particulars about shares held by the top ten negotiable shareholders not subject to conditional sales
Name of shareholder EOY (shares) Type
SANYO ELECTRIC CO., LTD. 35,001,500 B
DREYFUS GREATER CHINA FD 16,238,818 B
Fortis Haitong Stock Securities Investment Fund 4,506,355 A
Gao Hua－HSBC－GOLDMAN,SACHS & CO 2,219,007 A
Gu Bin 1,837,686 A
Pang Hongjun 1,769,700 A
Fortis Haitong Returns Growth Securities Investment Fund 1,714,048 A
Dalian State-Owned Assets Operation Co., Ltd. 1,650,000 A
Dalian Industry Development & Investment Co., Ltd. 1,622,250 A
Hua Xia Securities Co., Ltd. 1,575,000 A
§3 Important Matters
3.1 Major changes in main financial items and indexes, and description of the cause
√ Applicable □ Inapplicable
1. The obvious increase of financial assets held available for sales compared with those at the
beginning of this year occurred mainly because the equity value of Dalian Rubber & Plastics
Machinery Co., Ltd changed.
2. The construction in process increased mainly due to the expenditure for machinery
reconstruction.
3. The obvious decrease of payable taxes compared with those at the beginning of this year
occurred mainly because the income taxes have been paid on a consolidated basis during this
term.
4. The obvious decrease of staff’s salaries and wages compared with those at the beginning of
this year occurred mainly because the drawn remuneration for the end of last term have been
paid during this term.
5. The obvious decrease of financial expenses occurred mainly because the amount of loan
decreased comparably.
6. The obvious decrease of investment gain occurred mainly because during the same term of
last year we have received the cash dividend from Lengwang container temp. control
(Suzhou) Co., Ltd.3
7. The amount of income tax had a remarkable increase mainly due to the profit of the
Company’s subsidiaries increased.
3.2 Analytic description of major matters, their influence and solutions
□ Applicable √ Inapplicable
3.3 Undertaking matters for trial sales of state shares and implementation
√ Applicable □Inapplicable
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.
3.4 Precautions 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 the last year, and description of the cause
□ Applicable √ Inapplicable
3.5 Other important events
3.5.1 Securities investment
□Applicable √Inapplicable
3.5.2 Table of investigation, communication, interview received
Date of reception Place of
reception Way of reception Guest received
Main content of
discussion and
information provided
Jan. 5, 2010 In company Spot investigation Researcher of Hua’an Fund
Jan. 21, 2010 In company Spot investigation Researcher of Yinhua Fund
Feb. 4, 2010 In company Spot investigation Researcher of Jiashi Fund
Mar. 17, 2010 In company Spot investigation Researcher of Shenyin Wanguo
Mar. 24, 2010 In company Spot investigation Researcher of Yifangda Fund
Information about the
basic aspect of the
Company
§4 Financial Report (attached)
Not audited.
Board of Directors of Dalian Refrigeration Co., Ltd.
April 23, 20104
BALANCE SHEET
Prepared by Dalian Refrigeration Co., Ltd. March 31, 2010 Unit: RMB
March 31, 2010 Dec.31, 2009
Assets Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 399,467,453.30 295,805,644.27 403,139,585.35 304,973,089.79
Transaction finance asset
Notes receivable 39,287,549.11 15,371,404.62 40,209,996.20 21,335,155.82
Accounts receivable 405,432,605.95 232,013,116.85 425,397,218.64 245,319,863.04
Accounts in advance 31,094,820.89 16,158,200.44 25,596,323.14 7,044,245.77
Dividend receivable 3,652,035.08 5,601,471.05 3,629,735.08 6,621,471.05
Other receivables 24,189,678.01 10,349,909.08 19,043,927.34 9,797,715.20
Inventories 283,654,701.56 185,618,146.19 277,566,058.11 192,852,790.37
Non-current asset due within
one year
Other current assets
Total current assets 1,186,778,843.90 760,917,892.50 1,194,582,843.86 787,944,331.04
Non-current assets:
Finance asset held available
for sales
27,963,000.00 27,963,000.00 18,883,800.00 18,883,800.00
Held-to-maturity securities
Long-term account receivable
Long-term equity investment 1,009,895,238.98 1,139,943,467.90 1,003,792,955.33 1,133,841,184.25
Investment property
Fixed assets 359,408,048.11 208,032,940.39 366,005,762.61 213,493,488.86
Construction in progress 9,741,361.04 1,383,490.53 7,151,868.41 691,197.90
Engineering material
Disposal of fixed asset
Productive biological asset
Intangible assets 101,112,315.06 29,654,428.60 101,642,968.01 29,785,134.96
Expense on Research and
Development
Goodwill
Long-term expenses to be
apportioned
3,362,334.00 2,943,058.94 3,396,953.58 2,973,295.85
Deferred income tax asset 10,843,184.67 5,466,574.25 10,831,589.55 5,466,574.25
Other non-current asset
Total non-current asset 1,522,325,481.86 1,415,386,960.61 1,511,705,897.49 1,405,134,676.07
Total assets 2,709,104,325.76 2,176,304,853.11 2,706,288,741.35 2,193,079,007.115
BALANCE SHEET (CONTINUED)
March 31, 2010 Dec.31, 2009
Liabilities and shareholders’ equity
Consolidation Parent Company Consolidation Parent Company
Current liabilities:
Short-term loans 60,000,000.00 50,000,000.00 60,000,000.00 50,000,000.00
Transaction financial liabilities
Notes payable 126,639,673.84 90,183,634.23 119,785,760.78 86,390,969.71
Accounts payable 384,507,725.96 240,391,268.87 394,117,576.34 265,214,427.00
Accounts received in advance 187,399,356.06 106,809,182.11 180,479,306.45 105,565,661.24
Wage payable 18,191,476.65 1,037,024.11 42,215,810.06 17,906,388.85
Taxes payable 726.55 -3,729,892.66 5,452,830.38 1,265,221.74
Interest payable
Dividend payable 2,703,185.71 533,156.00 5,683,185.71 533,156.00
Other accounts payable 40,201,395.44 9,455,411.67 47,248,597.16 15,970,462.37
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 819,643,540.21 494,679,784.33 854,983,066.88 542,846,286.91
Non-current liabilities:
Long-term loans 10,200,000.00 10,200,000.00
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities
Deferred income tax liabilities 6,413,826.92 6,413,826.92 4,144,026.92 4,144,026.92
Other non-current liabilities 75,493,945.14 23,414,437.14 70,052,440.14 17,694,437.14
Total non-current liabilities 92,107,772.06 40,028,264.06 74,196,467.06 21,838,464.06
Total liabilities 911,751,312.27 534,708,048.39 929,179,533.94 564,684,750.97
Shareholders’ equity
Share capital 350,014,975.00 350,014,975.00 350,014,975.00 350,014,975.00
Capital public reserve 606,112,453.00 604,883,525.38 599,303,053.00 598,074,125.38
Less: Inventory shares
Surplus public reserve 399,190,859.34 399,190,859.34 399,190,859.34 399,190,859.34
Retained profit 351,611,180.28 287,507,445.00 341,096,035.56 281,114,296.42
Total owner’s equity attributable to
parent company
1,706,929,467.62 1,641,596,804.72 1,689,604,922.90 1,628,394,256.14
Minority interests 90,423,545.87 87,504,284.51
Total owner’s equity 1,797,353,013.49 1,641,596,804.72 1,777,109,207.41 1,628,394,256.14
Total liabilities and shareholder’s equity 2,709,104,325.76 2,176,304,853.11 2,706,288,741.35 2,193,079,007.11
Legal representative: Zhang He Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao6
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January-March, 2010 Unit: RMB
Items January-March, 2010 January-March, 2009
Consolidation Parent Company Consolidation Parent Company
I. Total operating income 281,828,260.92 167,961,069.77 273,106,990.16 165,023,684.96
Less: Operating cost 220,982,477.51 140,492,743.66 225,607,901.51 138,710,588.13
Operating tax and extras 663,198.44 311,462.42 1,198,415.85 510,323.63
Sales expenses 15,466,246.45 6,699,073.23 14,203,961.51 7,757,342.55
Administration expenses 33,373,811.96 19,742,811.70 31,554,111.50 20,631,759.89
Financial expenses 590,817.46 466,698.57 2,584,910.69 2,490,708.50
Losses of devaluation of asset 3,029,338.04 3,807,932.18
Add: Changing income of fair value
Investment income 6,124,583.65 6,102,283.65 23,241,523.82 23,241,523.82
Including: Investment income on
affiliated company and joint venture
6,102,283.65 6,102,283.65 8,021,523.82 8,021,523.82
II. Operating profit 13,846,954.71 6,350,563.84 17,391,280.74 18,164,486.08
Add: Non-operating income 1,187,646.54 277,049.84 2,262,279.85 1,760,399.08
Less: Non-operating expense 185,189.01 151,383.45 25,474.00
Including: Disposal loss of
non-current asset
151,383.45 151,383.45
Ⅲ. Total Profit 14,849,412.24 6,476,230.23 19,628,086.59 19,924,885.16
Less: Income tax 1,415,006.16 83,081.65 59,850.52
Ⅳ. Net profit 13,434,406.08 6,393,148.58 19,568,236.07 19,924,885.16
Net profit attributable to owner’s
equity of parent company
10,515,144.72 6,393,148.58 18,519,814.47 19,924,885.16
Minority shareholders’ gains and
losses
2,919,261.36 1,048,421.60
Ⅴ. Earnings per share
i. Basic earnings per share 0.03 0.05
ii. Diluted earnings per share 0.03 0.05
VI. Other comprehensive income 6,809,400.00 6,809,400.00 2,693,925.00 2,693,925.00
Ⅶ. Total comprehensive income 20,243,806.08 13,202,548.58 22,262,161.07 22,618,810.16
Total comprehensive income
attributable to parent company
17,324,544.72 13,202,548.58 21,213,739.47 22,618,810.16
Total comprehensive income
attributable to minority shareholders
2,919,261.36 1,048,421.60
Legal representative: Zhang He Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao7
CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January-March, 2010 Unit: RMB
January-March, 2010 January-March, 2009
Items Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating activities:
Cash received from selling commodities and
providing labor services
310,055,149.83 174,880,591.05 202,262,000.04 106,709,105.79
Write-back of tax received 264,021.53 849,600.00
Other cash received concerning operating
activities
15,047,153.64 10,643,806.06 9,899,900.47 7,883,118.45
Subtotal of cash inflow arising from
operating activities
325,366,325.00 185,524,397.11 213,011,500.51 114,592,224.24
Cash paid for purchasing commodities and
receiving labor service
221,180,466.16 137,788,731.43 135,014,849.24 81,600,242.16
Cash paid to/for staff and workers 56,201,203.14 37,629,852.05 53,275,832.43 34,456,925.48
Taxes paid 18,873,395.52 12,587,870.57 27,225,886.60 18,060,253.40
Other cash paid concerning operating activities 25,141,534.33 15,428,580.94 22,025,908.82 5,607,267.33
Subtotal of cash outflow arising from
operating activities
321,396,599.15 203,435,034.99 237,542,477.09 139,724,688.37
Net cash flows arising from operating
activities
3,969,725.85 -17,910,637.88 -24,530,976.58 -25,132,464.13
II. Cash flows arising from investing activities:
Cash received from recovering investment
Cash received from investment income 15,264,600.00 15,220,000.00
Net cash received from disposal of fixed,
intangible and other long-term assets
16,000.00 16,000.00 40,950.00 40,000.00
Other cash received concerning investing
activities
Subtotal of cash inflow from investing
activities
16,000.00 16,000.00 15,305,550.00 15,260,000.00
Cash paid for purchasing fixed, intangible and
other long-term assets
10,340,062.81 764,256.00 2,357,013.35 304,465.85
Cash paid for investment
Other cash paid concerning investing activities
Subtotal of cash outflow from investing
activities
10,340,062.81 764,256.00 2,357,013.35 304,465.85
Net cash flows arising from investing
activities
-10,324,062.81 -748,256.00 12,948,536.65 14,955,534.15
III. Cash flows arising from financing
activities
Cash received from absorbing investment
Cash received from loans 10,200,000.00 10,200,000.008
Other cash received concerning financing
activities
Subtotal of cash inflow from financing
activities
10,200,000.00 10,200,000.00
Cash paid for settling debts 2,245,000.00
Cash paid for dividend and profit distributing
or interest paying
5,177,366.12 708,545.00 4,835,150.60 2,544,000.00
Other cash paid concerning financing activities 102,861.28
Subtotal of cash outflow from financing
activities
7,525,227.40 708,545.00 4,835,150.60 2,544,000.00
Net cash flows arising from financing
activities
2,674,772.60 9,491,455.00 -4,835,150.60 -2,544,000.00
IV. Influence on cash due to fluctuation in
exchange rate
7,432.31 -6.64 -12,560.46 2.32
V. Net increase of cash and cash equivalents -3,672,132.05 -9,167,445.52 -16,430,150.99 -12,720,927.66
Add: Balance of cash and cash equivalents at
the period -begin
403,139,585.35 304,973,089.79 312,337,783.75 228,316,557.10
VI. Balance of cash and cash equivalents at the
period–end
399,467,453.30 295,805,644.27 295,907,632.76 215,595,629.44
Legal representative: Zhang He Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao
