Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
1
DALIAN REFRIGERATION CO., LTD.
2010 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. 2010 Semiannual Report
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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 2,769,117,548.94 2,706,288,741.35 2.32%
Owner’s equity attributable to
parent company 1,696,973,821.66 1,689,604,922.90 0.44%
Share capital 350,014,975.00 350,014,975.00 0.00%
Net assets per share 4.85 4.83 0.41%
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 710,539,815.60 595,410,146.46 19.34%
Operating profit 81,326,205.43 65,493,593.40 24.17%
Total amount of profit 84,448,256.65 69,217,349.25 22.00%
Net profit attributable to parent
company 71,805,431.81 62,573,899.67 14.75%
Net profit after deducting incidental
gain/loss 70,396,938.85 60,937,701.95 15.52%
Basic earnings per share 0.21 0.18 16.67%
Diluted earnings per share 0.21 0.18 16.67%
Rate of returns on net assets 4.23% 3.70% Increase 0.53
percentage points
Net amount of cash flow generated
in operating activities 166,033.38 2,226,946.06 -92.54%
Net amount of cash flow per share
generated in operating activities 0.001 0.006 —
2.2.2 Items of incidental gain/loss
√ Applicable □ Not applicable
Unit: RMB yuan
Items of incidental gain/loss Amount
Profit and loss from disposal of non-current assets -155,882.03
Occasional return, reduction and exemption of taxes 174,754.25
Government subsidies which were included in the current profits and losses 1,947,500.00
Other non-operating incomes and expenses except the above mentioned -2,141.37
Minority interests effects -327,202.01
Income tax effects -228,535.88
Total 1,408,492.96
2.2.3 Difference between applications of Chinese accounting standards and of the international
accounting standards
NoneDalian Refrigeration Co., Ltd. 2010 Semiannual Report
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§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 37,438
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
DREYFUS GREATER CHINA FD Foreign legal
person 4.64% 16,238,818 0 0
Anshun Securities Investment Fund
Domestic nonstate
ownership
legal person
1.14% 3,999,929 0 0
Hua An Innovation Securities
Investment Fund
Domestic nonstate
ownership
legal person
0.95% 3,322,875 0 0
Dalian State-Owned Assets
Management Co., Ltd.
Domestic state
ownership
legal person
0.59% 2,060,000 0 0
SSF Portfolio 602
Domestic nonstate
ownership
legal person
0.53% 1,870,772 0 0
Pang Hongjun Domestic
natural person 0.51% 1,769,700 0 0
Dalian Industrial Development
Investment Corp.
Domestic nonstate
ownership
legal person
0.46% 1,622,250 0 0
Huaxia Securities Co., Ltd.
Domestic nonstate
ownership
legal person
0.45% 1,575,000 0 1,575,000
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
DREYFUS GREATER CHINA FD 16,238,818 B share
Anshun Securities Investment Fund 3,999,929 RMB common share
Hua An Innovation Securities Investment Fund 3,322,875 RMB common share
Dalian State-Owned Assets Management Co., Ltd. 2,060,000 RMB common share
SSF Portfolio 602 1,870,772 RMB common share
Pang Hongjun 1,769,700 RMB common share
Dalian Industrial Development Investment Corp. 1,622,250 RMB common share
Huaxia Securities Co., Ltd. 1,575,000 RMB common share
Baoying Strategic Growth Stock Type Securities Investment Fund 1,500,050 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.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
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3.3 Changes in holding shareholders
□ Applicable √ Not applicable
§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. Business status of the Company
(1) Main businesses
In the first half of 2010, the Company laid stress on the refrigerating/heating and
ecological/environmental friendly products such as new series of screw compressors,
compound two-stage screw compressors (with one unit) and large-size package screw
compressor sets, centered on the quality effects and continuously developed both domestic and
overseas markets. We put much effort to the markets of freezers & refrigerators, two-storage
packages and air-conditioner packages, accelerated adjustment of the product mix, reduced
costs on every aspect and actively improved the labor productivity to strive for fulfillment of all
the major business indicators. In the 1st half year of 2010, the Company achieved sale income
RMB 710.54 million yuan, accounting for 50.04% of RMB 1.42000 billion yuan as one of the
operating plan indicators of the Company for 2010, up by 19.34% from the same period of last
year; the total profits achieved is RMB 84.45 million yuan, accounting for 71.27% of RMB
118.5 million yuan as one of the operating plan indicators of the company for 2010, up by
22.00% from the same period of last year.
In the report period, the Company succeeded in the trial run of VLG373T -- the new series of
screw compressor with the adjustable volumetric ratio and the largest displacement, and put it
into the market. With the inverter control, this product was the first one in China. Up till now,
the Company achieved the commercialization of all series of adjustable screw products.
In the report period, for the confliction between production and sale due to such factors as short
delivery period, more non-standard and complicated parts and less finished-products in stock,
the Company took effective actions on inter-procedure coordination and organization,
preparation before production, full utilization and rational arrangement of effective work hours,
and technical breakthrough in loopholes of product quality and therefore cleared the record of
output for successive months.
In the report period, the Company won the Governor’s Award for Quality Control of Liaoning
Province for 2009.
(2) Sino-foreign joint venture companies
By the end of the 1st half year of 2010, the total assets for the Sino-foreign joint venture
enterprise group based on the equity method is RMB 6.25599 billion yuan, up by 1.59% from
the same period of the last year; the net assets RMB 2.5426 billion yuan, down by 9.48% 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 3.3706 billion yuan based on the equity method, up by 17.59% from the same
period of the last year; the investment income achieved by the company is RMB 41.89 million
yuan, up by 50.63% from the same period of the last year.
In the report period, there are two Sino-foreign enterprises whose income from investment
account for over 10% of the net profits thereof, i.e. Dalian Sanyo Compressor Co., Ltd., and
Dalian Sanyo Cold Chain 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. There are four companies whose net profits exceeds RMB 10 million yuan.
In the report period, Dalian Sanyo Compressor Co., Ltd. promoted marketing through
technological innovations and the sales income and the net profit were increased respectively
by more than 30%. Following the output of 1,000,000 sets topped in 2004, the 5,000,000th
eddy compressor rolled out from the line on March 1, 2010.
In the report period, Dalian Sanyo Cold Chain Co., Ltd.’s 4th factory went into construction.
The factory mainly manufactures the CO2 unit products using eco-friendly natural refrigerants.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
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It is another product of that company at the world level following its low-temperature medical
product.
In the report period, Dalian Sanyo Refrigeration Co., Ltd. made another major breakthrough in
self-development of the lithium bromide chiller product and the direct-fired absorption threepurpose
unit set was successfully set up and accepted. The three purposes of cooling, heating
and daily-used hot water supplying were integrated in one unit provided as the concentrated
energy center. Besides, that company’s steam-driven lithium bromide absorption chiller/heater
was awarded the first prize for technical inventions of Dalian City for 2009.
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 69,621 7,354
Dalian Sanyo Cold
Chain Co., Ltd.
Cold chain equipment,
Fooding equipment 101,098 2,351
2. Business plan for the last half of the year
In the last half of 2010, by keeping on orientation towards market, centering on the quality
effects, and taking innovations as the main line, the Company will make constant
improvements in a full range, and further bring the advantages of the Group in undertaking
package projects, procurement and internal management into play to strive for fulfillment of the
planned business indicators for 2010.
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 71,053.98 57,045.76 19.71% 19.34% 20.28% Decrease 0.63
percentage points
Classified according to product
Refrigeration
equipment 71,053.98 57,045.76 19.71% 19.34% 20.28% Decrease 0.63
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 53,830.51 24.04%
East China area 1,794.70 -9.07%
Middle China area 14,234.14 6.56%
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 √InapplicableDalian Refrigeration Co., Ltd. 2010 Semiannual Report
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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 √Inapplicable
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 591,715.98 0.29% 4,314,000.00 17,384,712.48 3,398,166.61
600728 *ST Xintai 3,000,000.00 0.84% 0.00 0.00 0.00
Total 3,591,715.98 - 4,314,000.00 17,384,712.48 3,398,166.61
6.5.3 The situation for occupation of funds by the associated parties
□Applicable √Inapplicable
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 171,400 thousand yuan, accounting for 35.71% of the
budgeted amount for the year 2010. This included 78,590 thousand yuan, accounting for
31.44% of the budgeted amount for the year 2010, for purchasing supporting products for
package projects from associated parties, and 92,810 thousand yuan, accounting for 40.35% of
the budgeted amount for the year 2010, from selling supporting parts and components to
associated parties. See the Explanatory Notes to Accounting Statements.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
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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. 5, 2010 The Company On-the-spot survey Hua An Fund Management
Co., Ltd.’s research fellow
Basic situation of the
Company
Jan. 21, 2010 The Company On-the-spot survey Yinhua Fund Management
Co., Ltd.’s research fellow
Basic situation of the
Company
Feb. 4, 2010 The Company On-the-spot survey Harvest Fund Management
Co., Ltd.’s research fellow
Basic situation of the
Company
Mar. 17, 2010 The Company On-the-spot survey Shenyin Wanguo Securities
Co., Ltd.’s research fellow
Basic situation of the
Company
Mar. 24, 2010 The Company On-the-spot survey E Fund Management Co.,
Ltd.’s research fellow
Basic situation of the
Company
Apr. 29, 2010 The Company On-the-spot survey American GE Assets
Management
Basic situation of the
Company
May 21, 2010 The Company On-the-spot survey CITIC Securities Co., Ltd.’s
research fellow
Basic situation of the
Company
June 8, 2010 The Company On-the-spot survey CITIC China Securities
Co., Ltd.’s research fellow
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
2010-001 Announcement on resolutions of the 6th meeting of the 5th Board of Directors 20100403
2010-002 Summary for Annual Report for 2009
2010-003 Announcement on resolutions of the 7th meeting of the 5th Board of Directors
2010-004 Announcement on resolutions of the 4th meeting of the 5th Board of Supervisors
2010-005 Notice on Shareholders’ meeting for 2009
2010-006 Report for the 1st quarter of 2010
2010-007 Announcement on day-to-day associated transactions
20100423
2010-008 Announcement on resolutions of the shareholders’ meeting for 2009 20100520
2010-009 Announcement on acquiring the land use right 20100525
2010-010 Announcement on dividend distribution for 2009 20100702Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
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§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
(All amounts in RMB Yuan unless otherwise stated)
Ⅰ.General information
Dalian Refrigeration Company Limited (the “Company”) was incorporated in the People’s Republic of China (the
“PRC”) on December 18, 1993 as a joint stock limited company. The principal activities of the Company are
manufacture, sale and installation of refrigeration equipments. 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.
During the reporting period, the State-owned Assets Supervision and Administration Commission of Dalian
Municipal Government (SASAC of Dalian) transferred 25% shares of the Company from Dalian Bingshan Group
Company Limited (“Bingshan Group”) to Dalian Equipments Manufacture and Investment Co., Ltd., and also
transferred 100% shares of Dalian State-owned Assets Operation Co., Ltd. which holds 5% shares of the Company
to Dalian Equipments Manufacture and Investment Co., Ltd.
As the China's Refrigeration & Air Conditioning Association published, the Company was put the first place for its
sales income and economy utility general index in the line; and its products were also been the first level for variety,
specification, market occupation rate and export sales in China's refrigeration industry.
Ⅱ. The main accounting policies, accounting estimates and corrections of accounting errors
1. Basic of preparation of financial statements
The financial statements have been prepared on the basic assumption of going concern and on the accrual basis of
accounting. The effects of evens and other transactions actually occurred and they have been recorded and measured
in accordance with the Chinese Accounting Standards (2006): Framework and other accounting standards.
2. Declaration on following Accounting Standard for Business Enterprises
Declaration from the Company: The financial report made by the Company was in accordance with Accounting
Standard for Business Enterprises, which reflected the financial position, financial performance and cash flow of the
Company truly, objectively and completely.
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. Accounting method of business combination under the same control and not under the same control
(1) The Company adopts equity method for business combination under same control. The assets and liabilities that
the combining party obtained in a business combination shall be measured on their carrying amount in the combined
party on the combining date. The difference between the carrying amount of net assets acquired by the combining
party and the carrying amount of the consideration paid by it (or the total par value of the shares issued) shall be
adjusted to capital surplus. If the capital surplus is not sufficient for adjustment, retained earning is adjusted
respectively. The business combination costs that are directly attributable to the combination, such as audit fees,
valuation fees, legal service fees and so on are recognized in profit or loss during the current period when they
occurred. The bonds issued for a business combination or the handling fees, commissions and other expenses for
bearing other liabilities shall be recorded in the amount of initial measurement of the bonds or other debts. The
handling fees, commissions and other expenses for the issuance of equity securities for the business combination
shall be credited against the surplus of equity securities; if the surplus is not sufficient, the retained earnings shall be
offset. Where a relationship between a parent company and a subsidiary company is formed due to a business
combination, the parent company shall, on the combining date, prepare consolidated financial statements according
to the accounting policy of the Company.
(2) The Company adopts acquisition method for business combination not under same control. The acquirer shall
recognize the initial cost of combination under the following principles: a) When business combination is achieved
through a single exchange transaction, the cost of a business combination is the aggregate of the fair values, at the
date of exchange, of assets given, liabilities incurred or assumed, and equity securities issued by the acquirer, in
exchange for control of the acquiree; b) For the business combination involved more than one exchange transaction,
the cost of the combination is the aggregate cost of the individual transactions; c) The costs directly attributed toDalian Refrigeration Co., Ltd. 2010 Semiannual Report
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business combination are included in the cost of combination; d) Where a business combination contract or
agreement provides for a future event which may adjust the cost of combination, the Company shall include the
amount of the adjustment in the cost of the combination at the acquisition date if the future event leading to the
adjustment is probable and the amount of the adjustment can be measured reliably.
The acquirer shall, on the acquisition date, measure the assets given and liabilities incurred or assumed by an
enterprise for a business combination in light of their fair value, and shall record the balances between them and their
carrying amounts into the profits and losses at the current period. The acquirer shall distribute the combination costs
on the acquisition date, and shall recognize all identifiable assets, liabilities and contingent liabilities it obtains from
the acquiree. (1) the acquirer shall recognize the difference that the combination costs are over the fair value of the
identifiable net assets obtained from acquiree as goodwill; (2) if the combination costs are less than the fair value of
the identifiable net assets obtained from acquiree, the acquirer shall reexamine the measurement of the fair values of
the identifiable assets, liabilities and contingent liabilities obtained from the acquiree as well as the combination
costs; and then after the reexamination, the result is still the same, the difference shall be recorded in the profit and
loss of the current period.
Where a relationship between a parent company and a subsidiary company is formed due to a business combination,
the parent company shall prepare accounting books for future reference, which shall record the fair value of the
identifiable assets, liabilities and contingent liabilities obtained from the subsidiary company on the acquisition date.
When preparing consolidated financial statements, it shall adjust the financial statements of the subsidiary company
on the basis of the fair values of the identifiable assets, liabilities and contingent liabilities determined on the
acquisition date according to the Company’s accounting policy of “Consolidated financial statement”.
6. Basis of consolidation
(1) Scope of consolidation
Consolidated financial statements are included all subsidiaries of the parent.
(2) Increase or decrease of the subsidiaries
For any subsidiary acquired by the Company through business combination under the same control, when the
consolidated balance sheet for the current period is being prepared, the beginning balances in the consolidated
balance sheet are made corresponding modification. For addition business combination not under same control
during the reporting period, the Company makes no adjustment for the beginning balances in the consolidated
balance sheet. When disposing subsidiary during the reporting period, the Company makes no adjustment for the
beginning balances in the consolidated balance sheet. For any subsidiary acquired by the Company through business
combination under the same control, when the consolidated income statement for the current period is being
prepared, sales, expense and profit for the period from the beginning of the consolidated period to the year end of the
reporting period are included in the consolidated income statement. For addition business combination not under
same control during the reporting period, revenue, expense and profit for the period from acquisition date to the year
end of the reporting period is included in the consolidated income statement. When disposing subsidiary during the
reporting period, sales, expense and profit for the period from the beginning to the disposal date are included in the
consolidated income statement.
For any subsidiary acquired by the Company through business combination under the same control, when the
consolidated cash flow statement for the current period is being prepared, cashflow for the period from the beginning
of the consolidated period to the year end of the reporting period is included in the consolidated cash flow statement.
For addition business combination not under same control during the reporting period, cashflow for the period from
acquisition date to the year end of the reporting period is included in the consolidated cash flow statement. When
disposing subsidiary during the reporting period, cashflow for the period from the beginning to the disposal date is
included in the consolidated cash flow statement.
(3)Principle of consolidation
The consolidated financial statements are based on the financial statements of individual subsidiaries which are
included in the consolidation scope and prepared after adjustment of long-term equity investment under equity
method and elimination effect of intragroup transaction.
(4) Minority interests
The portion of the equity of the subsidiaries that are not owned by the parent is presented as minority interest in the
consolidated balance sheet. The portion of the profit or loss of the subsidiaries that are not owned by the parent is
presented as minority interest in the consolidated income statement.
(5) Excess losses
The amount which losses of subsidiaries during the period exceeds the proportion of minority’s obligation is offset
minority interest as agreed in the subsidiaries’ association or agreement and minorities have ability to bear the excess
losses. Otherwise, the excess losses are offset equity of the parent company. Profits made afterward by subsidiaries
are attributable to equity of the parent company before recovery of excess losses.
7.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).
8. 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 currencyDalian Refrigeration Co., Ltd. 2010 Semiannual Report
10
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.
Foreign currency non-monetary items shall be translated at spot rate on the date of transaction, not changing the
amount of functional currency.
The Company translates the financial statements of its foreign operation in accordance with the following provisions:
a) the asset and liability items in the balance sheets shall be translated at a spot exchange rate ruling at the balance
sheet date. Among the owner's equity items, except the ones as "retained earnings", others shall be translated at the
spot exchange rate ruling at the time when they occurred;. b) The income and expense items in the income
statements shall be translated with approximate exchange rate of the sight rate on the transaction occurring date. The
foreign exchange difference arisen from the translation of foreign currency financial statements shall be presented
separately under the owner's equity in the balance sheet.
9. 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.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
11
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 method
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.
10. The recognition standard and the withdrawal method for the bad debt provision of the accounts
receivable
(1) Accounting method of bad debt provision for the individually significant receivables, the impairment test is
carried on individually. Standards of provision for bad debts of the individually significant receivables: top 5 of
account receivables at year end. Method of provision for bad debts of the individually significant receivables: aging
analysis with individual recognition method.
(2) For the receivables which are not individually significant, but which are assessed at high risk level through credit
risk combination. In accordance with credit risk characteristics, the method of provision for bad debts is aging
analysis with individual recognition method
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 and other accounts receivable (%)
Within one year 5
One to two years 10
Two to three years 30
Three to four years 50
Four to five years 80
Over five years 100
11. 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.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
12
12. 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.
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.
13. 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%、 5%、10%
Machinery and equipment 10-22 years 4.09-9.7% 3%、 5%、10%
Motor vehicles 4-15 years 6-24.25% 3%、 5%、10%
Electric equipments 5 years 18-19.4% 3%、 5%、10%
Other equipments 10-15 years 6-9.7% 3%、 5%、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.
14. 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.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
13
(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.
15. 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 being
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).
16. 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, comparingDalian Refrigeration Co., Ltd. 2010 Semiannual Report
14
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.
17. 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,
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.
18. 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.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
15
19. 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.
20. 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; the
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.
21. 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.
22. 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.
23. 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.
24. Changes in accounting policies and estimates
(1) There is no change in accounting policies during the financial year.
(2) There is no change in accounting estimate during the financial year.
25. Correction of the accounting errors from previous term
There is no correction of the accounting error from previous term in this report period.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
16
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% or 13% or
6% depending on different kinds of products. 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. The business tax rate is 5% or 3% of revenue.
3. Urban maintenance and construction tax is 7% of turnover tax payable.
4. Education surtax is 3% of turnover tax payable.
5. 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 2010 are as follows:
Name of the entity
Relationship with the
Company
Applicable income tax
rate in 2010
Dalian Bingshan Group Refrigeration Installation
Co., Ltd. Subsidiary 25%
Dalian Bingshan Air-Conditioning Equipment Co.
Ltd. Subsidiary 22%
Dalian Bingshan Ryosetsu Quick Freezing
Equipment Co., Ltd. Subsidiary 22%
Dalian Bingshan Group Sales Co., Ltd. Subsidiary 25%
Dalian Bingshan Metal Processing Co. Ltd. Subsidiary 25%
Dalian Bingshan Guardian Automation Co., Ltd. Subsidiary 25%
Shanghai Bingshan Serial Refrigeration Equipment
Sales Co., Ltd. Subsidiary 25%
Wuhan New World Refrigeration Industrial Co.,
Ltd. (“WNWRI”) Subsidiary 15%
Wuhan New World Refrigeration Air Conditioner
Engineering Co. Ltd. Subsidiary 25%
Dalian Daleng Metal Technology Co. Ltd. Subsidiary 25%
Ⅳ. Business combination and consolidated financial statements
1. The principal activities of its subsidiaries are shown as below.
As of 30 June 2010 the Company had direct equity interests in the following subsidiaries, all of which were
incorporated in the PRC.
In the table below column ‘A’ represents ‘Other essential investment’, column ‘B’ represents ‘Amount of minority
interest in income statement deducted from minority interest’, and column ‘C’ represents ‘Balance after deduction of
losses of subsidiaries during the period exceeding the proportion of minority shareholders from equity of parent
company’.
All of the subsidiaries shown below are included in the consolidated scope.
①The Company exercises its control over Shanghai Bingshan Serial Refrigeration Equipment Sales Co., Ltd. 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 Co., Ltd.
②Wuhan New World Refrigeration Industrial Co., Ltd. holds 95% equity interest of Wuhan New World
Refrigeration Air Conditioner Engineering Company Limited, and through Wuhan New World Refrigeration
Industrial Co., Ltd., the Company have the whole power to govern Wuhan New World Refrigeration Air Conditioner
Engineering Co., Ltd.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
17
2. The changes of consolidated scope
No changes of consolidated scope happened during the current period.
Ⅴ. Notes to the consolidated financial statements
1 Monetary fund
Item 30-06-2010 31-12-2009
Cash on hand 534,201.61 159,097.46
Cash in bank 353,684,256.22 402,980,487.89
Total 354,218,457.83 403,139,585.35
Particular about foreign monetary funds included in the cash in bank:
Foreign 30-06-2010 31-12-2009
currency Original
currency
Exchange rate
RMB
equivalent
Original
currency
Exchange rate
RMB
equivalent
USD 458,566.76 6.7909 3,114,074.97 163,100.85 6.8282 1,113,685.22
JPY 697,676.00 0.076686 53,501.98 201,370.00 0.073782 14,857.48
HKD 230.47 0.87239 201.04 230.45 0.88048 202.91
EUR 14,997.90 8.2710 124,047.63 14,997.90 9.7971 146,935.93
Total 3,291,825.62 1,275,681.54
2 Notes receivable
Item 30-06-2010 31-12-2009
Bank acceptance 15,391,461.76 28,267,028.70
Trade acceptance 29,690,327.88 11,942,967.50
Total 45,081,789.64 40,209,996.20
(1)There is no pledged notes receivable at the end of report period.
No
.
Name
Catego
ries
Registere
d address
Business
nature
Registered
capital
Business scope Investment A
Shareh
olding
（%）
Voting
right
（%）
Consolidated
Minority
interest
B C
1
Dalian Bingshan Group
Refrigeration Installation
Co. Ltd . (“Installation
Company”)
Ltd. Dalian Installation RMB20,040,000
Installation and
testing of
refrigeration
equipment
RMB20,040,000 100 100 Yes
2
Dalian Bingshan Group
Sales Co. Ltd . (“Sales
Company”)
Ltd. Dalian Trading RMB18,000,000
Sale of refrigeration
equipment RMB16,200,000 90 90 Yes 3,810,246.62
3
Dalian Bingshan Air-
Conditioning Equipment
Co. Ltd. (“Bingshan Air-
Conditioning”)
Ltd. Dalian Manufacturing JPY700,000,000
Manufacture and
sale of accessories of
refrigeration
equipment
JPY490,000,000 70 70 Yes 19,730,333.41
4
Dalian Bingshan Metal
Processing Co. Ltd.
(“Metal Processing”)
Ltd. Dalian
Manufacturing
USD2,350,000
Process and sale of
metal punching parts USD1,509,875 64.25 64.25 Yes 7,366,183.28
5
Dalian Bingshan Guardian
Automation Co., Ltd. Ltd. Dalian
Manufacturing
GBP210,000
Research, design and
develop refrigerator
automation parts
GBP126,000 60 60 Yes 2,718,071.92
6
Dalian Bingshan Ryosetsu
Quick Freezing Equipment
Co., Ltd.
Ltd. Dalian
Manufacturing
USD1,000,000
Manufacture and
sale of deep-freezing
equipment
USD700,000 70 70 Yes 2,922,722.30
7
Shanghai Bingshan Serial
Refrigeration Equipment
Sales Co. Ltd . ①
Ltd. Shanghai Trading RMB2,000,000
ale and installation
of refrigeration
equipment
RMB900,000 45 45 Yes 277,224.86 258,598.99
8
Wuhan New World
Refrigeration Industrial Co.
Ltd. (“WNWRI”)
Ltd. Wuhan Manufacturing RMB30,000,000
Design, manufacture,
sale, installation and
test of screw type
refrigeration
compressor and
refrigeration
equipment
RMB17,980,400 51 51 Yes 51,539,498.87
9
Wuhan New World
Refrigeration Air
Conditioner Engineering
Co. Ltd.②
Ltd. Wuhan Installation RMB8,000,000
Design, installation,
test and repair of
refrigeration
equipment
RMB400,000 5 100 Yes
10
Dalian Daleng Metal
Technology Co. Ltd. Ltd. Dalian Manufacturing RMB20,000,000
Manufacture of
metal founding parts
and pipe parts;
process of metal
machine
parts(Preparing to
construct)
RMB20,000,000 100 100 YesDalian Refrigeration Co., Ltd. 2010 Semiannual Report
18
(2) The top five notes receivable endorsed but not matured:
No. Company Issued date
Expiration
date
Amount Notes
1 Jiangsu Redbud Textile Technology Co., Ltd. 2010.01.06 2010.07.06 1,500,000.00 Bank acceptance
2 Huzhou Liangxin Metal Materials Co., Ltd. 2010.01.28 2010.07.28 1,000,000.00 Bank acceptance
3 Henan Zhongpin I&E Trading Co., Ltd. 2010.06.21 2010.12.21 1,000,000.00 Bank acceptance
4 Hunan Tianyan Machinery Co., Ltd. 2010.04.22 2010.10.22 480,000.00 Bank acceptance
5 Jiangsu Baifu Technology Co., Ltd. 2010.04.30 2010.10.30 479,000.00 Bank acceptance
3 Accounts receivable
(1) Classified by account nature
30-06-2010 31-12-2009
Balance Provision for doubtful debt Balance Provision for doubtful debt
Category
Amount
Proportion
(%)
Amount
Proportion
(%)
Amount
Proportion
(%)
Amount
Proportion
(%)
Receivables that are
individually
significant
57,615,764.31 11.13 2,880,788.22 3.37 56,444,030.66 11.25 2,822,201.53 3.71
Receivables not
individually
significant but with
high risk in groups
Other insignificant
items
460,043,059.02 88.87 82,569,481.10 96.63 445,108,348.72 88.75 73,332,959.21 96.29
Total 517,658,823.33 100 85,450,269.32 100 501,552,379.38 100 76,155,160.74 100
(2) The aging of accounts receivable and related provisions for bad debts
30-06-2010 31-12-2009
Account ages
Amount
Proportion
(%)
Provision for bad
debts
Amount
Proportion
(%)
Provision for bad
debts
Within1 year 260,713,235.99 50.36 13,035,661.80 294,096,692.59 58.64 14,703,570.92
1 to 2 years 150,551,959.41 29.08 15,055,195.94 107,812,939.53 21.50 10,781,293.96
2 to 3 years 48,076,961.50 9.29 14,423,088.45 51,700,146.65 10.30 15,361,218.16
3 to 4 years 24,469,129.75 4.73 12,234,564.87 19,042,758.90 3.80 9,521,379.46
4 to 5 years 15,728,892.12 3.04 12,583,113.70 15,560,717.36 3.10 12,448,573.89
Over 5 years 18,118,644.56 3.50 18,118,644.56 13,339,124.35 2.66 13,339,124.35
Total 517,658,823.33 100 85,450,269.32 501,552,379.38 100 76,155,160.74
(3) There is no receivables not individually significant but with high risk in groups during the report period.
(4) There is no amount of provision for bad debts written back during the report period.
(5) During the report period, there is no receivables being recovered by debts reconstruction.
(6)The write-off of accounts receivable
Name of company The nature of
accounts receivable Written off Reason Related party
transaction
Clients Sale of goods 13,931.25 ① No
①The reason of accounts receivable write-off is small balance being not collected for long time.
(7) No arrearage from the shareholders holding over 5% (including 5%) of the equity of the Company existed in the
balance of accounts receivable.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
19
(8) The first five arrearage entities listed in the balance of accounts receivable
Company The relationship with
the Company Amount Age Proportion
Client 1 Non-affiliated 14,531,824.00
Less than 1
year 2.81%
Client 2 Non-affiliated 11,242,693.00
Less than 1
year 2.17%
Client 3 Non-affiliated 10,790,000.00
Less than 1
year 2.08%
Client 4 Non-affiliated 10,692,000.00
Less than 1
year 2.07%
Thermo King-Dalian
Transport Refrigeration Co.,
Ltd.
Associated company 10,359,247.31
Less than 1
year 2.00%
Total 57,615,764.31 11.13%
(9) The amount of accounts receivable due from related companies are RMB 22,415,045.06, 4.33% of total accounts
receivable. Please refer to the Ⅵ 6 of the notes.
(10) There is no accounts receivable being ended reorganization or being negotiated during the report period.
4 Accounts paid in advance
(1) The aging of accounts paid in advance
Account ages 30-06-2010 31-12-2009
Amount Proportion (%) Amount Proportion (%)
Within1 year 28,606,632.75 87.62 22,125,063.14 86.44
1 to 2 years 623,303.16 1.91 3,471,260.00 13.56
2 to 3 years 3,420,000.00 10.47 0.00 0.00
Total 32,649,935.91 100 25,596,323.14 100
(2) The first five arrearage entities listed in the balance of accounts paid in advance
Company The relationship
with the Company Amount Age Reasons
Client 1 Non-affiliated 3,420,000.00 1-2 years Prepayment for goods
Client 2 Non-affiliated 3,260,283.67 Less than 1 year Prepayment for goods
Client 3 Non-affiliated 1,633,336.80 Less than 1 year Prepayment for goods
Client 4 Non-affiliated 1,602,000.00 Less than 1 year Prepayment for goods
Client 5 Non-affiliated 1,498,500.00 Less than 1 year Prepayment for goods
Total 11,414,120.47
(3) No arrearage from the shareholders holding over 5% (including 5%) of the equity of the Company existed in the
balance of accounts paid in advance.
(4) The accounts paid in advance aged more than 1 year is for the contract purchase which has not yet settled.
(5) The amount of accounts paid in advance due from related companies is RMB 373,580.41, 1.14% of total
accounts paid in advance. Please refer to the Ⅵ 6 of the notes.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
20
5 Dividends receivable
Items 31-12-2009
Current year
addition
Current year
disposal 30-06-2010 Reasons
Any
impairment
Dividends receivable, within 1 year
Included:
Dalian Sanyo Refrigeration Co., Ltd.
3,400,000.00 5,600,000.00 3,400,000.00 5,600,000.00
Not due to
payment date
No
Dalian Grand Ocean Transportation
Refrigeration Engineering Co., Ltd.
229,735.08 229,735.08
Dalian Honjo Chemical Co., Ltd. 1,411,757.40 1,411,757.40
Dalian Sanyo Cold-chain Co., Ltd. 8,000,000.00 8,000,000.00
Not due to
payment date
No
Dalian Sanyo Compressor Co., Ltd. 34,400,000.00 34,400,000.00
Not due to
payment date
No
Grand Ocean-showa Auto Air
Conditioning (Dalian) Co., Ltd.
4,400,000.00 4,400,000.00
Dalian Bingshan – P&A Recreation
Development Engineering Ltd.
1,000,000.00 1,000,000.00
Guotai Junan Securities Co., Ltd. 3,009,889.50 3,009,889.50
Not due to
payment date
No
Total 3,629,735.08 57,821,646.90 10,441,492.48 51,009,889.50
6 Other accounts receivable
(1) Classified by account nature
30-06-2010 31-12-2009
Item Balance Provision for doubtful debt Balance Provision for doubtful debt
Amount
Proportion
(%)
Amount
Proportion
(%)
Amount
Proportion
(%)
Amount
Proportion
(%)
Receivables that are
individually significant
6,887,627.30 28.22 1,543,864.15 53.52 6,247,785.30 28.57 1,094,322.59 38.79
Receivables not
individually significant but
with high risk in groups
Other insignificant items 17,520,865.12 71.78 1,340,959.43 46.48 15,617,467.83 71.43 1,727,003.20 61.21
Total 24,408,492.42 100 2,884,823.58 100 21,865,253.13 100 2,821,325.79 100
(2) The aging of other accounts receivable and related provisions for bad debts
30-06-2010 31-12-2009
Account age
Amount Proportion (%)
Provision for bad
debts
Amount
Proportion
(%)
Provision for bad
debts
Within1year 18,774,813.25 76.92 938,740.66 13,970,692.07 63.89 698,534.61
1 to 2 years 2,067,939.35 8.47 206,793.94 2,426,946.88 11.10 242,694.69
2 to 3 years 509,326.09 2.09 152,797.83 4,952,336.25 22.65 1,485,700.88
3 to 4 years 2,912,975.97 11.93 1,456,487.99 90,538.65 0.41 45,269.33
4 to 5 years 67,173.00 0.28 53,738.40 378,065.00 1.73 302,452.00
Over 5 years 76,264.76 0.31 76,264.76 46,674.28 0.22 46,674.28
Total 24,408,492.42 100 2,884,823.58 21,865,253.13 100 2,821,325.79Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
21
(3) There is no receivables not individually significant but with high risk in groups during the report period.
(4) There is no amount of provision for bad debts written back during the report period.
(5) During the report period, there is no other account receivable being recovered by debts reconstruction.
(6) There is no other accounts receivable being written off.
(7) There is no balance of other accounts receivable due from the shareholders holding over 5% (including 5%) of the
equity of the Company.
(8) The first five arrearage entities of other accounts receivable
Company The relationship
with the Company Amount Age Proportion
Client 1 Non-affiliated 2,665,517.30 2-3 years 10.92
Client 2 Non-affiliated 2,512,110.00
Less than 1 year
10.29
Client 3 Non-affiliated 700,000.00
Less than 1 year
2.87
Client 4 Non-affiliated 510,000.00
Less than 1 year
2.09
Client 5 Non-affiliated 500,000.00
Less than 1 year
2.05
Total 6,887,627.30 28.22
(9) The amount of other accounts receivable due from related companies are RMB 287,482.30, 1.18% of total other
accounts receivable. Please refer to the Ⅵ 6 of the notes.
(10) There is no other accounts receivable being ended reorganization or being negotiated during the report period.
7 Inventories
(1) Cost
30-06-2010 31-12-2009
Items
Book balance
Provision for
impairment of
inventories
Book value Book balance
Provision for
impairment of
inventories
Book value
Raw materials 70,866,821.22 70,866,821.22 56,782,168.75 56,782,168.75
Materials on Consignment
for further processing
1,769,209.74 1,769,209.74 3,461,556.10 3,461,556.10
Low-value
consumptions
579,236.40 579,236.40 206,987.37 206,987.37
Work-in-progress 87,165,999.74 87,165,999.74 69,480,989.04 69,480,989.04
Self-manufactured semifinished
products
44,205,557.10 44,205,557.10 31,274,340.90 31,274,340.90
Finished goods 66,454,197.86 3,004,688.71 63,449,509.15 110,562,076.83 3,004,688.71 107,557,388.12
Constructing projects 16,284,037.74 16,284,037.74 8,802,627.83 8,802,627.83
Total 287,325,059.80 3,004,688.71 284,320,371.09 280,570,746.82 3,004,688.71 277,566,058.11
(2) Provision for impairment of inventories
Current year
Item 31-12-2009 disposal
Current year
addition
Reversal Written-off
30-06-2010
Finished goods 3,004,688.71 3,004,688.71
Total 3,004,688.71 3,004,688.71Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
22
(3) Details of provision for impairment of inventories
Item
The bases of provision for
impairment of inventories Reasons for reversal
Proportion of reversal of
provision for impairment of
inventories to closing balance
Finished goods
The book balance is higher than
recoverable amount.
8 Financial assets available for sale
Item 30-06-2010 31-12-2009
Notes available-for-sale
Equity instruments available-for-sale 4,314,000.00 18,883,800.00
Others
Total 4,314,000.00 18,883,800.00
The Company’s financial assets available for sale is the negotiable A-share that was relieved from the conditional
sales on July 11, 2007 – the equity investment to Dalian Rubber & Plastics Machinery Co., Ltd. (“DAXIANGSU”).
In 2010, the Company sold 1,740,000 DAXIANGSU shares, which led to the Company’s number of shares reduced
to 600,000 shares from the original 2,340,000 shares.
9、Investment to Associates and Joint venturesDalian Refrigeration Co., Ltd. 2010 Semiannual Report
23
No
.
Name Categories
Registere
d address
Legal
represent
person
Business
nature
Registered
capital
Sharehol
ding
（%）
Voting
right
（%）
30-06-2010
Total assets
30-06-2010
Total liabilities
30-06-2010
Total net
assets
Total Income of
2010.01-06
Net profit of
2010.01-06
ⅠAssociates
1
Dalian Bingshan –
P&A Recreation
Development
Engineering Co., Ltd.
Sino-foreign
joint venture
Dalian Yang Bin Installation USD250,000 50% 50% 13,643,247.19 8,987,509.18 4,655,738.01 12,411,423.55 -41,453.44
2
Dalian Jiale Vending
Machine Operation
Co., Ltd.
Sino-foreign
joint venture
Dalian Zhang He Trading JPY500,000,000 50% 50% 29,563,139.29 1,198,846.54 28,364,292.75 5,978,930.23 -428,306.54
ⅡJoint venture
1
Dalian Bingshan Group
Import & Export Co. ,
Ltd.
Ltd Dalian Zhang He Trading RMB5,000,000 24% 24% 93,535,914.50 57,066,511.42 36,469,403.08 111,811,218.50 6,594,069.24
2
Thermo-King Dalian
Transport Refrigeration
Co., Ltd.
Sino-foreign
joint venture
Shenzhen
Song
Zhenning
Manufactu
ring USD2,996,900 25% 25% 219,578,844.00 96,385,980.00 123,192,864.00 136,505,309.00 795,311.00
3
Dalian Grand Ocean
Thermo King
Transport Refrigeration
Engineering Co., Ltd
Sino-foreign
joint venture
Dalian Zhang He
Manufactu
ring USD850,000 40% 40% 31,939,086.26 21,404,378.88 10,534,707.38 14,087,935.88 -13,695.87
4
Dalian Sanyo
Refrigeration Co., Ltd.
Sino-foreign
joint venture
Dalian
Watanabe
Yoshio
Manufactu
ring JPY2,000,000,000 40% 40% 473,732,216.53 218,363,896.66 255,368,319.87 194,772,171.81 9,911,613.11
5
Dalian Honjo Chemical
Co., Ltd.
Sino-foreign
joint venture
Dalian
Honjo
Yukinovi
Manufactu
ring JPY260,000,000 30% 30% 35,151,974.06 5,900,543.40 29,251,430.66 17,165,741.81 1,967,050.50
6
Dalian Sanyo Coldchain
Co., Ltd
Sino-foreign
joint venture
Dalian
Watanabe
Yoshio
Manufactu
ring JPY4,650,000,000 40% 40% 1,358,442,975.22 882,442,856.02 476,000,119.20 1,010,976,326.56 23,507,887.80
7
Grand Ocean-showa
Auto Air Conditioning
(Dalian) Co., Ltd.
Sino-foreign
joint venture
Dalian Takumi Ishii
Manufactu
ring USD15,117,890 20% 20% 239,361,020.84 72,294,634.75 167,066,386.09 249,240,346.52 35,538,544.64
8
Dalian Sanyo
Compressor Co., Ltd.
Sino-foreign
joint venture
Dalian
Watanabe
Yoshio
Manufactu
ring JPY6,200,000,000 40% 40% 1,355,642,648.78 618,467,015.10 737,175,633.68 696,213,958.01 73,545,550.99
9
Dalian Sanyo Meica
Electronics Co., Ltd.
Sino-foreign
joint venture
Dalian Zhang He
Manufactu
ring JPY400,000,000 30% 30% 154,843,321.68 85,418,538.47 69,424,783.21 84,091,879.16 5,132,532.66
10
Dalian Sanyo Airconditioner
Co., Ltd.
Sino-foreign
joint venture
Dalian
Watanabe
Yoshio
Manufactu
ring JPY4,535,000,000 40% 40% 1,898,360,765.03 1,413,870,179.68 484,490,585.35 702,193,298.10 -20,903,109.26
11
Dalian Sanyo Home
Appliance Co., Ltd.
Sino-foreign
joint venture
Dalian Zhang He
Manufactu
ring JPY600,000,000 40% 40% 167,314,964.26 121,191,285.51 46,123,678.75 83,052,143.55 -1,544,741.17
12
Beijing Huashang
Bingshan Refrigeration
and Air-conditioning
Machinery Co., Ltd.
Sino-foreign
joint venture
Beijing Yang Bin Trading RMB1,000,000 49% 49% 8,544,085.55 7,351,084.56 1,193,000.99 7,023,929.48 92,588.86
13
Dalian Bingshan H2O3
Environmental
Solution Co. , Ltd.
Sino-foreign
joint venture
Dalian
Mu
Chuanjiang
Manufactu
ring USD1,000,000 33% 33% 1,620,394.84 86,812.85 1,533,581.99
14
Dalian Fuji Bingshan
Vending Machine Co.,
Ltd.
Sino-foreign
joint venture
Dalian
Asahi
Hideehiko
Manufactu
ring JPY1,800,000,000 49% 49% 163,093,393.71 54,334,433.62 108,758,960.09 85,145,013.03 1,218,129.67
15
Dalian Sanyo High-
Efficient Refrigeration
System Co., Ltd.
Sino-foreign
joint venture
Dalian Zhang He
Manufactu
ring RMB80,000,000 25% 25% 115,346,927.73 23,109,396.49 92,237,531.24 78,788,770.20 4,736,770.48Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
24
10、Long-term equity investments
No. Name
Calculatio
n method
Initial cost Beginning balance Changes Ending balance
Shareholdin
g（%）
Voting right
（%）
Provision for
impairment
Provision for
impairment of the
current period
Cash dividend of the
current period
1
Dalian Bingshan –
P&A Recreation
Development
Engineering Co., Ltd.
Equity
method
1,034,675.00 3,348,595.73 -1,020,726.72 2,327,869.01 50 50 1,000,000.00
2
Dalian Jiale Vending
Machine Operation
Co., Ltd.
Equity
method
18,750,000.00 14,396,299.64 -214,153.27 14,182,146.37 50 50
3
Dalian Bingshan
Group Import &
Export Co. , Ltd.
Equity
method
1,200,000.00 7,170,080.12 1,582,576.62 8,752,656.74 24 24
4
Thermo King-Dalian
Transport Refrigeration
Co., Ltd.
Equity
method
6,313,174.25 30,962,291.25 198,827.75 31,161,119.00 25 25
5
Dalian Grand Ocean
Thermo King
Transport Refrigeration
Engineering Co., Ltd
Equity
method
2,871,708.00 4,219,361.31 -4,930.51 4,214,430.80 40 40
6
Dalian Sanyo
Refrigeration Co., Ltd.
Equity
method
40,606,709.20 104,314,782.02 -2,031,819.28 102,282,962.74 40 40 5,600,000.00
7
Dalian Honjo
Chemical Co., Ltd.
Equity
method
3,908,911.50 9,597,071.44 -857,049.16 8,740,022.28 30 30 1,411,757.40
8
Dalian Sanyo Coldchain
Co., Ltd
Equity
method
134,658,753.75 193,437,523.47 650,902.71 194,088,426.18 40 40 8,000,000.00
9
Grand Ocean-showa
Auto Air Conditioning
(Dalian) Co., Ltd.
Equity
method
24,402,234.58 30,727,289.00 1,996,938.04 32,724,227.04 20 20 4,400,000.00
10
Dalian Sanyo
Compressor Co., Ltd.
Equity
method
176,953,841.88 296,639,122.13 -7,335,237.24 289,303,884.89 40 40 34,400,000.00
11
Dalian Sanyo Meica
Electronics Co., Ltd.
Equity
method
9,649,590.00 19,287,675.17 1,385,783.82 20,673,458.99 30 30
12
Dalian Sanyo Airconditioner
Co., Ltd.
Equity
method
124,728,240.00 143,788,794.28 -8,361,243.70 135,427,550.58 40 40
13
Dalian Sanyo Home
Appliance Co., Ltd.
Equity
method
19,666,212.00 22,008,452.45 -617,896.47 21,390,555.98 40 40 11,694,400.00
14
Beijing Huashang
Bingshan Refrigeration
and Air-conditioning
Machinery Co., Ltd.
Equity
method
490,000.00 537,340.85 45,368.54 582,709.39 49 49Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
25
No. Name
Calculatio
n method
Initial cost Beginning balance Changes Ending balance
Shareholdin
g（%）
Voting right
（%）
Provision for
impairment
Provision for
impairment of the
current period
Cash dividend of the
current period
15
Dalian Bingshan H2O3
Environmental
Solution Co. , Ltd.
Equity
method
2,731,377.50 506,082.06 506,082.06 33 33
16
Dalian Fuji Bingshan
Vending Machine Co.,
Ltd.
Equity
method
66,416,364.00 52,695,006.90 596,883.54 53,291,890.44 49 49
17
Daliian Sanyo High-
Efficient Refrigeration
System Co., Ltd.
Equity
method
20,000,000.00 21,742,605.81 1,065,773.36 22,808,379.17 25 25
18
Zibo Electric Traction
Machine Group Co.,
Ltd.
Cost
method
849,000.00 849,000.00 849,000.00 1.52 1.52
19
Liaoning Mec Group
Co., Ltd.
Cost
method
1,020,000.00 1,020,000.00 1,020,000.00 2 2
20
Suntek Technology
Co., Ltd.
Cost
method
3,000,000.00 3,000,000.00 3,000,000.00 0.84 0.84 3,000,000.00
21
Guotai Junan
Securities Co., Ltd.
Cost
method
30,098,895.00 30,098,895.00 30,098,895.00 0.64 0.64 1,582,164.89 3,009,889.50
22
Guotai Junan
Investment
Management Co., Ltd.
Cost
method
3,057,316.00 3,057,316.00 3,057,316.00 0.22 0.22 2,688,605.91
23
Thermo King
Container Temperature
Control (Suzhou) Co.,
Ltd.
Cost
method
3,310,806.00 3,310,806.00 3,310,806.00 10 10
24
Liaoning Enterprises
United Industry
Company
Cost
method
105,000.00 105,000.00 105,000.00 4.2 4.2 105,000.00
25
Dalian Bingshan
Group Materials
Trading Co., Ltd.
Cost
method
250,000.00 250,000.00 250,000.00 5 5
26
Shenyang Sanyo Airconditioner
Co., Ltd.
Cost
method
34,098,618.72 34,098,618.72 34,098,618.72 10 10 9,620,025.72
27
Wuhan Steel and
Electricity Co., Ltd.
Cost
method
1,315,142.50 1,315,142.50 1,315,142.50 0.056 0.056
Total 1,032,483,151.85 -12,920,001.97 1,019,563,149.88 28,690,196.52 57,821,646.90Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
26
11 Fixed assets
(1) Fixed assets details
Item 31-12-2009
Current year
addition
Current year
disposal
30-06-2010
1. Original value 806,210,910.62 3,754,060.23 1,544,665.66 808,420,305.19
Including: Buildings 265,955,953.61 54,882.00 266,010,835.61
Machinery 500,609,592.40 1,800,003.90 765,175.97 501,644,420.33
Vehicles 23,642,126.82 1,447,930.84 726,269.69 24,363,787.97
Other equipments 16,003,237.79 451,243.49 53,220.00 16,401,261.28
2. Accumulated depreciation 432,916,979.72 16,534,673.56 1,204,741.42 448,246,911.86
Including: Buildings 88,900,771.72 3,384,200.94 92,284,972.66
Machinery 322,060,591.74 11,605,237.81 651,345.18 333,014,484.37
Vehicles 10,794,515.64 993,308.29 549,886.24 11,237,937.69
Other Equipments 11,161,100.62 551,926.52 3,510.00 11,709,517.14
3.Net book value 373,293,930.90 360,173,393.33
Including: Buildings 177,055,181.89 173,725,862.95
Machinery 178,549,000.66 168,629,935.96
Vehicles 12,847,611.18 13,125,850.28
Other Equipments 4,842,137.17 4,691,744.14
4.Provision for impairment 7,288,168.29 85,559.08 7,202,609.21
Including: Buildings
Machinery 7,288,168.29 85,559.08 7,202,609.21
Vehicles
Other Equipments
5.Fixed assets net 366,005,762.61 352,970,784.12
Including: Buildings 177,055,181.89 173,725,862.95
Machinery 171,260,832.37 161,427326.75
Vehicles 12,847,611.18 13,125,850.28
Other Equipments 4,842,137.17 4,691,744.14
(2) All the accumulated depreciation increased during the current period was depreciation of the current period.
(3) The original value of fixed assets RMB 1,371,277.00 transferred from construction in progress during the report
period.
(4) There were no idle fixed assets during the current period.
(5) There were no leased fixed assets during the current period.
(6) Wuhan New World Refrigeration Industrial Co. Ltd. borrowed RMB 10,000,000 from bank and mortgaged with
its building and land use rights.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
27
(7) Fixed assets without owner’s certificates
Items Reason Expected time
Buildings of Dalian Bingshan Ryosetsu Quick
Freezing Equipment Co., Ltd. Final accounts audit unfinished Handling
Buildings of Dalian Bingshan Metal Processing
Co. Ltd. Final accounts audit unfinished Handling
Workshop of Dalian Bingshan Air-Conditioning
Equipment Co. Ltd. Less some documents Handling
Departments from debts reconstruction Less some documents Handling
12 Construction in progress
Name of
projects
Budget
31-12-2009
Current year
addition
Current year
decrease
30-06-2010 Sources of funds
Percentage
of
completion
Buildings 289,197.90 664,876.78 954,074.68 Internally
generated fund
Machinery 17,000,000.00 6,862,670.51 5,469,953.33 1,371,277.00 10,961,346.84 Internally
generated fund
64%
Total 7,151,868.41 6,134,830.11 1,371,277.00 11,915,421.52
(1) No interests capitalized during the current period.
(2) The amount of construction in progress RMB 1,371,277.00 was transferred to fixed assets.
13 Intangible assets
(1) Intangible assets details
Item 31-12-2009
Current year
addition
Current year
disposal
30-06-2010
1.Original cost
Land use rights 113,192,497.39 71,360,000.00 184,552,497.39
Non-patented technology 515,224.41 515,224.41
Others 4,458,294.99 120,000.00 4,578,294.99
Total 118,166,016.79 71,480,000.00 189,646,016.79
2.Amortization
Land use rights 14,831,460.49 1,131,919.76 15,963,380.25
Non-patented technology 515,224.41 515,224.41
Others 1,176,363.88 169,056.82 1,345,420.70
Total 16,523,048.78 1,300,976.58 17,824,025.36
3. .Net book value
Land use rights 98,361,036.90 70,228,080.24 168,589,117.14
Non-patented technology 0
Others 3,281,931.11 -49,056.82 3,232,874.29
Total 101,642,968.01 70,179,023.42 171,821,991.43
4.Provision for impairment
Land use rights
Non-patented technology
Others
Total
5. .Net value
Land use rights 98,361,036.90 70,228,080.24 168,589,117.14
Non-patented technology 0
Others 3,281,931.11 -49,056.82 3,232,874.29
Total 101,642,968.01 70,179,023.42 171,821,991.43Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
28
(2) Please refer to the Ⅴ 11 of the notes for land use rights mortgaged.
14 Long-term prepayments
Item 31-12-2009
Current year
addition
Current year
disposal
30-06-2010
1.Original cost
Employee dormitory use right 4,154,348.90 4,154,348.90
Total 4,154,348.90 4,154,348.90
2. Amortization
Employee dormitory use right 757,395.32 69,239.16 826,634.48
Total 757,395.32 69,239.16 826,634.48
3. .Net book value
Employee dormitory use right 3,396,953.58 3,327,714.42
Total 3,396,953.58 3,327,714.42
Employee dormitory use right is amortized during 30 years.
15 Deferred tax assets/Deferred tax liabilities
Item 30-06-2010 31-12-2009
Deferred tax assets
Provision for bad debts 10,330,192.79 7,631,866.81
Provision for obsolete inventory 751,172.18 751,172.18
Impairment provision of fixed assets 1,800,652.30 1,822,042.07
Employee’s compensation payable 626,508.49
Total 12,882,017.27 10,831,589.55
Deferred tax liabilities
Fair value changes of financial assets
available for sale 930,571.00 4,144,026.92
Total 930,571.00 4,144,026.92
(2)Temporary differences
Items Amount
Provision for bad debts 41,320,771.16
Provision for obsolete inventory 3,004,688.71
Impairment provision of fixed assets 7,202,609.21
Deductible expenses differences
Fair value changes of financial assets available for sale 3,722,284.00
Total 55,250,353.08
16、Provision for impairment
Current year
Items 31-12-2009 disposal
Current year
addition
Reversal Written off
30-06-2010
1.Bad debts provision 78,976,486.53 9,372,537.62 13,931.25 88,335,092.90
2.Provision for obsolete inventories 3,004,688.71 3,004,688.71
3.Provision for the impairment of financial assets
available for sale
4.Provision for the impairment of held to maturity
investmentsDalian Refrigeration Co., Ltd. 2010 Semiannual Report
29
5.Provision for the impairment of long-term equity
investments
28,690,196.52 28,690,196.52
6.Provision for the impairment of investing property
7.Provision for the impairment of fixed assets 7,288,168.29 85,559.08 7,202,609.21
8.Provision for the impairment of construction materials
9.Provision for the impairment of construction in
progress
10.Provision for the impairment of bearer biological
assets
11.Provision for the impairment of oil assets
12.Provision for the impairment of intangible assets
13.Provision for the impairment of goodwill
14.Provision for the impairment of other assets
Total 117,959,540.05 9,372,537.62 99,490.33 127,232,587.34
17 Short-term loans
Terms of borrowing 30-06-2010 31-12-2009
Credit loan 50,000,000.00 50,000,000.00
Guarantee loan
Mortgage loan 10,000,000.00 10,000,000.00
Total 60,000,000.00 60,000,000.00
(1) Wuhan New World Refrigeration Industrial Co. Ltd. borrowed short-term loan RMB 10,000,000 from bank and
mortgaged with its building and land use rights.
(2)There was no short-term loan due to pay at the end of the report period.
18 Notes payable
Item 30-06-2010 31-12-2009
Bank acceptance notes 110,756,842.69 114,600,739.77
Trade acceptance notes 5,185,021.01
Total 110,756,842.69 119,785,760.78
19 Accounts payable
Ages 30-06-2010 31-12-2009
Amount Proportion (%) Amount Proportion (%)
Within1 year 388,600,252.96 94.38 369,296,464.52 93.70
1 to 2 years 16,538,023.55 4.02 18,503,076.18 4.69
2 to 3 years 2,500,033.22 0.61 2,316,438.41 0.59
3 to 4 years 971,205.53 0.24 952,221.44 0.24
4 to 5 years 943,592.49 0.23 1,128,458.32 0.29
Over 5 years 2,180,941.34 0.52 1,920,917.47 0.49
Total 411,734,049.09 100 394,117,576.34 100
(1) No amount due to the shareholders holding over 5% (including 5%) of the equity of the Company existed in the
balance of accounts payable at the end of current period.
(2) There was no big amount among the accounts payable aged more than 1 year.
(3) The amount of accounts payable due to related companies is RMB 34,675,564.70, 8.42% of total accounts
payable. Please refer to the Ⅵ 6 of the notes.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
30
20 Accounts received in advance
30-06-2010 31-12-2009
Ages
Amount
Proportion
(%)
Amount
Proportion
(%)
Within1 year 132,305,804.90 74.31 157,907,790.98 87.49
1 to 2 years 31,972,482.96 17.96 9,622,988.87 5.33
2 to 3 years 9,244,449.20 5.19 4,345,972.57 2.41
3 to 4 years 1,119,668.93 0.63 4,958,275.54 2.75
4 to 5 years 851,084.59 0.48 2,223,166.32 1.23
Over 5 years 2,558,882.04 1.43 1,421,112.17 0.79
Total 178,052,372.62 100 180,479,306.45 100
(1)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 at the end of current period.
(2)Most of the amount of accounts received in advance aged more than one year was unsettled contract payments on
construction in progress.
(3) The amount of accounts received in advance due to related companies is RMB 2,852,019.61, 1.6% of total
accounts received in advance. Please refer to the Ⅵ 6 of the notes.
21 Employee’s compensation payable
Item 31-12-2009 Current year
addition
Current year
reduction 30-06-2010
1.Wages and salaries, bonuses,
allowances and subsidies 23,158,738.36 58,366,225.07 79,279,169.27 2,245,794.16
2.Staff welfare 16,800,132.15 3,829,841.39 2,181,690.22 18,448,283.32
3.Social insurance 14,917,113.01 14,917,113.01
Including：①Medical insurance 3,257,882.11 3,257,882.11
②Retirement pension 8,899,322.92 8,899,322.92
③Unemployment insurance 620,162.37 620,162.37
④injury insurance premium 466,282.20 466,282.20
⑤Pregnancy insurance 240,700.20 240,700.20
⑥Housing subsidies 81,488.00 81,488.00
⑦Heating subsidies 1,351,275.21 1,351,275.21
⑧Annuity payment
4. Housing fund 991,408.24 7,770,632.14 7,693,538.24 1,068,502.14
5.Labor union fee and employee
education fee 1,265,531.31 1,141,982.10 1,208,223.89 1,199,289.52
6.Non-currency welfare 15,020.00 15,020.00
7. Redemption for terminations of labor
contract 69,418.00 69,418.00
8.Other
Total 42,215,810.06 86,110,231.71 105,364,172.63 22,961,869.14
There was no amount delay paid at the end of the report period.
22 Taxes payable
Item 30-06-2010 31-12-2009
Value-added tax 9,067,679.09 6,732,191.20
Business tax 1,295,153.69 1,336,422.13
City maintenance and construction tax 637,785.41 534,904.39
Enterprise income tax 1,850,235.32 -3,952,722.05
Individual income tax 963,466.45 278,038.87
Stamp duty 17,122.01 63,484.13Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
31
Withholding business tax for foreign owners 32,777.51
Withholding income tax for foreign owners 65,555.02
Extra-charges for education 262,222.70 220,431.90
Extra-charges for local education 131,892.77 112,978.76
Water project fund/River route maintenance fee 658.79 28,312.52
Safeguard fund for disables 444.00 456.00
Total 14,226,660.23 5,452,830.38
23 Dividend payable
Name of investors 30-06-2010 31-12-2009
Legal person shares 58,917,659.20 5,683,185.71
Total 58,917,659.20 5,683,185.71
The amount of dividend payable at the end of the report period included dividend payable to Dalian Bingshan Group
Co. Ltd. RMB 13,803,352.45 and dividend payable to Japan Sanyo Electricity Co., Ltd. RMB 1,500,000.00 which
hold over 5% (including 5%) of the equity of the Company.
24 Other accounts payable
30-06-2010 31-12-2009
Ages
Amount
Proportion
(%)
Amount
Proportion
(%)
Within 1 year 16,707,388.28 40.67 26,910,096.80 56.95
1 to 2 years 5,897,477.57 14.36 3,542,322.89 7.50
2 to 3 years 3,147,586.02 7.66 6,474,492.02 13.70
3 to 4 years 6,474,407.62 15.76 6,016,654.00 12.73
4 to 5 years 4,570,919.00 11.13 112,818.53 0.25
Over 5 years 4,278,747.92 10.42 4,192,212.92 8.87
Total 41,076,526.41 100 47,248,597.16 100
(1) There were RMB 11,622,170.81 due to the shareholders holding over 5% (including 5%) of the equity of the
Company——Dalian Bingshan Group Co., Ltd., and mainly because subsidiary company borrowed for moving to
new location.
(2) The amount of other accounts payable due to related companies is RMB 12,289,531.49, 29.92% of total other
accounts payable. Please refer to the Ⅶ 4 of the notes.
(3) Most of the amount of other accounts payable aged more than one year was owed to Dalian Bingshan Group
Co., Ltd.
25 Other non-current liabilities —Deferred income
Item 30-06-2010 31-12-2009
Subsidy fund for highly effective heat pump
and related system 6,922,348.50 7,214,899.00
Contribution to subsidiary company
relocation 51,801,009.00 52,358,003.00
Subsidy fund for deep-sea fishery
equipments of Project 863 2,259,538.14 1,769,538.14
Big capacity of sea water pre-freeze project
of Project 863 13,940,000.00 8,710,000.00
Total 74,922,895.64 70,052,440.14
The balance of above items didn’t meet the conditions being converted to income at the end of report period.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
32
26 Share capitals
Item 31-12-2009
Issuance
of new
shares
Shares
converted
from reserve
Others 30-06-2010
I. Non-circulating share capital
with restricted trade conditions
1. State-owned shares
2. Shares held by domestic
legal persons
3. Other domestic shares 76,947,796.00 76,947,796.00
Including: Shares held by
domestic natural person 92,113.00 92,113.00
II. Circulating share capital
1. Domestically listed ordinary
shares (A-share) 158,067,179.00 158,067,179.00
2. Domestically listed ordinary
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 of Dalian Bingshan Group Co. Ltd. will circulate on January 8, 2011.
27 Capital surpluses
Item 31-12-2009
Current year
addition
Current year
reduction
30-06-2010
Capital premium 513,645,432.79 513,645,432.79
Other capital surplus 85,657,620.21 9,640,367.75 76,017,252.46
Total 599,303,053.00 9,640,367.75 589,662,685.25
Other capital surplus reduction in the current period, including reduction of the number of DAXIANGSU shares held
by the Company and fluctuation of the share price, totals 9,640,367.75 yuan.
28 Surplus reserves
Item 31-12-2009
Current year
addition
Current year
reduction
30-06-2010
Surplus reserves 399,190,859.34 13,059,514.85 412,250,374.19
Total 399,190,859.34 13,059,514.85 412,250,374.19
The increase of the surplus reserves was because the other reserved capital were withdrawn on the basis of 20% of
the Company’s net profit of 2009 according to the resolution of the Shareholders’ General Meeting of year 2009.
29 Retained earnings
Items Amount Extraction or allocation proportion
Retained earnings at the end of prior year 341,096,035.56
Add: Changes in accounting policies
At beginning of the year after retrospective
adjustment 341,096,035.56
Add: Net profit 71,805,431.81
Less: Appropriation of statutory surplus reserves
Appropriation of other reserved capital 13,059,514.85
20% of net profit of the Company of
year 2009Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
33
Cash dividends 52,502,246.25 RMB 0.15 per share
Appropriation of employee’s welfare and bonus
fund in foreign invested company 2,293,919.05
Retained earnings at the end of the current year 345,045,787.22
30 Revenue and cost of sales
(1)Business income and cost
Items 2010.01-06 2009.01-06
Key business income 698,593,587.64 587,310,667.49
Other business income 11,946,227.96 8,099,478.97
Key business cost 560,311,836.89 468,648,518.86
Other business cost 10,145,742.60 5,633,566.72
(2) Key business（type）：
2010.01-06 2009.01-06
Name of type
Revenue Cost Revenue Cost
Manufacturing 698,593,587.64 560,311,836.89 587,310,667.49 468,648,518.86
(3) Key business（product）：
2010.01-06 2009.01-06
Name of product
Revenue Cost Revenue Cost
Refrigeration
equipments
698,593,587.64 560,311,836.89 587,310,667.49 468,648,518.86
(4) Key business（region）：
2010.01-06 2009.01-06
Name of region
Revenue Cost Revenue Cost
North-east of China 538,305,110.07 440,404,202.85 433,990,568.39 347,927,960.40
East of China 17,947,039.78 14,793,761.61 19,736,384.62 15,924,133.56
Centre of China 142,341,437.79 105,113,872.43 133,583,714.48 104,796,424.90
Total 698,593,587.64 560,311,836.89 587,310,667.49 468,648,518.86
(5) Top five customers
Name Revenue Percentage of total business income
Customer 1 47,785,388.13 6.84%
Customer 2 19,712,479.43 2.82%
Customer 3 16,056,239.32 2.30%
Customer 4 11,320,512.82 1.62%
Customer 5 9,801,452.99 1.40%
Total 104,676,072.69 14.98%Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
34
31 Business taxes and surcharges
Item 2010.01-06 2009.01-06 Basis of taxes calculated
Business tax 819,308.40 535,862.42 3% or 5% of Revenue
City maintenance and
construction tax 1,499,607.00 831,305.27 7% of Business tax and Value-added tax
Additional education Fees 645,116.47 358,629.63 3% of Business tax and Value-added tax
Local educational fee 214,223.76 122,563.11 1% of Business tax and Value-added tax
Embankment expenses 22.25 34.35
Others 383,597.10
Total 3,178,277.88 2,231,991.88
32 Impairment losses
Items 2010.01-06 2009.01-06
Bad debt provision 9,250,120.79 11,389,619.55
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 assets
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 9,250,120.79 11,389,619.55
33、Gain/ (loss) from investments
(1) Categeries
Items 2010.01-06 2009.01-06
Calculated by cost method 20,416,901.98 24,249,668.50
Calculated by equity method 41,891,755.43 27,811,762.91
Total 62,308,657.41 52,061,431.41
(2) Calculated by cost method（more than 5% of profit）
Name 2010.01-06 2009.01-06 Reason of changes
Dalian Rubber & Plastics Machinery Co.,
Ltd.
17,384,712.48
1,740,000 DAXIANGSU
shares were sold
Thermo King Container Temperature
Control (Suzhou) Co., Ltd.
15,220,000.00 No dividend distribution
Guotai Junan Securities Co., Ltd. 3,009,889.50 9,029,668.50 Less distributed dividend
Total 20,394,601.98 24,249,668.50Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
35
(3) Calculated by equity method（more than 5% of profit）
Name 2010.01-06 2009.01-06 Reason of changes
Dalian Sanyo Air-conditioner Co., Ltd. -8,361,243.70 1,129,706.32 Decrease of business profit
Dalian Sanyo Cold-chain Co., Ltd 8,650,902.71 2,364,523.74 Increase of business profit
Grand Ocean-showa Auto Air Conditioning
(Dalian) Co., Ltd.
6,396,938.04 1,849,786.61 Increase of business profit
Dalian Sanyo Compressor Co., Ltd. 27,064,762.76 17,697,995.76 Increase of business profit
Total 33,751,359.81 23,042,012.43
(4)There was no severe constrict on the collection of the investment earnings.
34 Non-business incomes
(1)Details
Item 2010.01-06 2009.01-06
Gain on the disposal of non-current assets 18,433.37 95,850.13
Penalty and fine income 11,865.40 113,153.18
Subsidy fund from government 2,122,254.25 267,859.01
Deferred income 1,157,820.37 3,297,322.05
Debts need not paid 25,253.00 12,134.92
Others 53,575.42 61,221.79
Total 3,389,201.81 3,847,541.08
(2) Subsidy fund from government
Items 2010.01-06 2009.01-06 Explanations
Management system of quality and service
after selling 100,000.00
Subsidy fund from Dalian Municipal Bureau of
Information Industry and Dalian Municipal
Bureau of Finance
Awards 13,000.00 81,000.00
Awards from the Government of Shanghai
Jiading District,Malu Town
Subsidy on the invention application 4,500.00 Dalian Intellectual Property Service Center
Technological promotion and progress
award to the double two-stage screw
compressor set
420,000.00
Financial aids for technological projects
appropriated by Dongxihu District Technology
Bureau, Wuhan City.
Phase I of the major technological
transformation 10,000.00
The subsidy on interest payment for major
technological transformation projects 2009
appropriated by Economic Commission of
Wuhan Municipality and Bureau of Finance of
Wuhan Municipality.
Subsidy on patents 2,000.00
Hubei Provincial Intellectual Property Rights
Protection Bureau’s notice about the subsidy on
authorized patents all over the province for
2008.
Fund for innovations in major industries 1,500,000.00
Fund for innovations appropriated by Dalian
Municipal Bureau of Finance
Tax returns 174,754.25 84,859.01
Total 2,122,254.25 267,859.01
35 Non-business expenses
Item 2010.01-06 2009.01-06
Loss on the disposal of non-current
assets
174,315.40 50,854.88
Fines and penalties 1,700.00 38,580.45
Donation expenditure
Others 91,135.19 34,349.90
Total 267,150.59 123,785.23Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
36
36 Income tax expense
Item 2010.01-06 2009.01-06
Current income tax expense 8,947,030.48 3,272,971.39
Deferred income tax expense -2,063,278.57 -1,513,332.26
Total 6,883,751.91 1,759,639.13
37、Basic earnings per share and diluted earnings per share calculation process
(1)Calculation of basic earning per share
Item No. 2010.01-06 2009.01-06
Profit or loss attributable to the Company 1 71,805,431.81 62,573,899.67
Profit or loss after deducting extraordinary gain or loss
attributable to the Company
2 70,396,938.85 60,937,701.95
the weighted average number of ordinary shares outstanding
during the period(So)
3=4+5+6*10/9-7*11/9-
8
350,014,975 350,014,975
the number of ordinary shares at the beginning of the
period(S0)
4 350,014,975 350,014,975
the number of additional ordinary shares issued on capital
surplus transfer or share dividends appropriation(S1)
5
the number of ordinary shares issued in exchange for cash or
issued as a result of the conversion of a debt instrument to
ordinary shares during the period(Si)
6
reduced number of ordinary shares such as shares buy
back(Sj)
7
the number of a reverse share split(Sk) 8
the months during the period(Mo) 9 6 6
the months from the following month after issuing
incremental shares to the end of the period(Mi)
10
the months from the following month after reducing shares to
the end of the period(Mj)
11
Basic earnings per share 12=1/3 0.21 0.18
Basic earnings per share deducting extraordinary gain or loss 13=2/3 0.20 0.17
(2) For the diluted potential ordinary shares, the net profits attributed to ordinary shareholders during the reporting
term and the weighted average number of outstanding ordinary shares should be adjusted separately, and it shall be
used to calculate the diluted earnings per share. Under the circumstances to issue the diluted potential ordinary
shares such as convertible bonds, stock options, stock warrants, the diluted earnings per share shall be calculated in
the light of the formula as follow: Diluted Earnings Per Share =P1/(S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ The
weighted average number of incremental ordinary shares on warrants, options, convertible debt and so on）
P1represents the amounts attributable to ordinary equity holders of the Company in respect of: (a) Profit or loss
attributable to the Company; and (b) Profit or loss after deducting extraordinary gain or loss attributable to the
Company, adjust according to the accounting standards for enterprises and other relevant provisions. The Company
considered in sequence from dilutive potential ordinary shares to get the lowest earnings per share.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
37
38、Other comprehensive income
Items 2010.01-06 2009.01-06
1、Gain/(loss) on financial assets available for sale -528,000.00 8,810,100.00
Less：Income tax infection on financial assets available for sale -132,000.00 2,202,525.00
Net amount transferred into profit and loss at current period that
reckon into other comprehensive income at former period
9,244,367.75
Subtotal -9,640,367.75 6,607,575.00
2、Net amount of comprehensive income of invested company
belonging to the company
Less: Income tax infection
Net amount transferred into profit and loss at current period that
reckon into other comprehensive income at former period
Subtotal
3.Others①
Less: Income tax infection
Net amount transferred into profit and loss at current period that
reckon into other comprehensive income at former period
Subtotal
Total -9,640,367.75 6,607,575.00
① Others was government subsidy being recorded into capital surplus.
39. Relevant information about cash flow statement
(1) Other cash received relating to operating activities
Item 2010.01-06
Government grants 2,122,254.25
Returns travel expense receivable 5,024,804.65
Deposit received 6,421,605.00
Received amount paid on behalf of related companies 1,735,260.86
Others 9,144,733.72
Total 24,448,658.48
(2) Other cash paid relating to operating activities
Item 2010.01-06
Travel expense 14,906,464.21
Deposit paid 6,650,410.50
Sales expenditure 17,156,228.43
Administrative expenditure 9,461,403.97
Others 1,361,747.34
Total 49,536,254.45
(3) Other cash paid relating to financing activities
Item 2010.01-06
Credit cards interest and commission 8,355.47
Total 8,355.47Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
38
40 Complementary information for consolidated cash flow statement
(1) The relationship between the net profit and the net cash flows from operating activities
Item 2010.01-06 2009.01-06
1. Reconciliation from the net profit to the cash flows from operating
activities
Net profit 77,564,504.74 67,457,710.12
Add: Provisions for assets impairment 9,250,120.79 11,389,619.55
Depreciation of fixed assets 16,534,673.56 17,216,500.11
Amortization of intangible assets 1,300,976.58 1,166,759.31
Amortization of long-term deferred expenses 69,239.16 69,239.16
Losses on disposal of fixed assets, intangible assets and other longterm
assets 150,950.03 -45,982.88
Losses on scrapping of fixed assets 4,932.00 987.63
Losses on variation of fair value
Finance expenses 1,764,854.92 5,412,742.61
Investment losses -62,308,657.41 -52,061,431.41
Decrease in deferred tax assets -2,050,427.72 -1,533,198.28
Increase in deferred tax liabilities -3,213,455.92 2,202,525.00
Decrease in inventory -6,109,184.22 32,027,106.57
Decrease in operating receivables -87,192,165.34 -43,400,870.57
Increase in operating payables 54,399,672.21 -37,674,760.86
Others
Net cash flows from operating activities 166,033.38 2,226,946.06
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 354,218,457.83 302,806,253.16
Less: Cash at the beginning of the period 403,139,585.35 312,337,783.75
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 -48,921,127.52 -9,531,530.59
(2) Cash and cash equivalents
Item 2010.01-06 2009.01-06
1.Cash
Including: cash on hand 534,201.61 159,097.46
Bank deposits that can be used for payment whenever necessary 353,684,256.22 402,980,487.89
Other monetary capital that can be used for payment whenever
necessary
2.cash equivalents
Including: Bonds mature within 3 months
3.Balance of cash and cash equivalents at the end of the year 354,218,457.83 403,139,585.35
Including: Cash or cash equivalents which was restricted in use of the
Company and subsidiaries in the groupDalian Refrigeration Co., Ltd. 2010 Semiannual Report
39
Ⅵ.Related Party Relationships and Transactions
1、Information of parent company
Name of
enterprise
Principal
activities
Nature
Registered
address
Legal
representative
person
Nature of
business
Registered capital
The parent
company's
shareholding
(%)
The parent
company's
voting right
(%)
The
ultimate
controllin
g party of
the
Company
Organization
Code
Dalian
Bingshan
Group Co.,
Ltd.
Installation
and
manufactory
of
refrigeration
equipment
Sino-foreign
joint venture
Dalian Zhang He
Manufact
ure
RMB140,600,000.00 21.96% 21.96%
SASAC
of Dalian
24129179-3
2、Subsidiaries
No.
Name of invested
company
Nature of
enterprise
Type
Registe
red
address
Legal
representative
person
Nature of
business
Registered capital
The
company's
shareholdi
ng (%)
The
company'
s voting
right (%)
Organization Code
1
Dalian Bingshan
Group Refrigeration
Installation Company
Limited
liabilities
company
Industry Dalian Zhang Hongzhi Installation RMB20,040,000.00 100 100 24236769-X
2
Dalian Bingshan
Group Sales Company
Limited
liabilities
company
Trading Dalian Yang Bin Trading RMB18,000,000.00 90 90 70216986-3
3
Dalian Bingshan Air-
Conditioning
Equipment Co., Ltd.
Limited
liabilities
company
Industry Dalian
Yamamoto
Shunniti
Manufacturing JPY700,000,000.00 70 70 60488234-X
4
Dalian Bingshan
Metal Processing Co.,
Ltd.
Limited
liabilities
company
Industry Dalian Zhang He Manufacturing USD2,350,000.00 64.25 64.25 70215200-9
5
Dalian Bingshan
Guardian Automation
Co., Ltd.
Limited
liabilities
company
Industry Dalian Mike Murphy Manufacturing GBP210,000.00 60 60 73640895-7
6
Dalian Bingshan
Ryosetsu Quick
Freezing Equipment
Co., Ltd.
Limited
liabilities
company
Industry Dalian
Yamati
Yashuhiro
Manufacturing USD1,000,000.00 70 70 74787148-8
7
Shanghai Bingshan
Serial Refrigeration
Equipment Sales
Company
Limited
liabilities
company
Trading Shanghai Yang Bin Trading RMB2,000,000.00 45 45 75500739-0
8
Wuhan New World
Refrigeration
Industrial Co., Ltd.
Limited
liabilities
company
Industry Wuhan Mu Chuanjiang Manufacturing RMB30,000,000.00 51 51 61640057-1
9
Wuhan New World
Refrigeration Air
Conditioner
Engineering Co., Ltd.
Limited
liabilities
company
Industry Wuhan Ding Jie Installation RMB8,000,000.00 5 100 78930854-6
10
Dalian Daleng Metal
Technology Co., Ltd.
Limited
liabilities
company
Industry Dalian Zhang He Manufacturing RMB20,000,000.00 100 100 66920026-6Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
40
3、Joint venture and associate companies
No Name of invested company Type
Register
ed
address
Legal
represent
ative
person
Nature of
business
Registered
capital
Shareholding
（%）
Voting
right
（%）
2010.06.30
Total assets
2010.06.30
Total liabilities
2010.06.30
Total owner’s
equity
2010.01-06
Total operating
income
2010.01-06
Net profit
Organization
Code
Ⅰ、Joint ventures
1
Dalian Bingshan – P&A
Recreation Development
Engineering Co., Ltd.
Sino-foreign
joint venture Dalian yangbin Installation Usd250000 50% 50% 13,643,247.19 8,987,509.18 4,655,738.01 12,411,423.55 -41,453.44 72600341-1
2
Dalian Jiale Vending
Machine Operation Co.,
Ltd.
Sino-foreign
joint venture Dalian zhanghe Trading Jpy500000000 50% 50% 29,563,139.29 1,198,846.54 28,364,292.75 5,978,930.23 -428,306.54 76079627-5
Ⅱ、Associates
1
Dalian Bingshan Group
Import&Export Co., Ltd.
Limited Dalian ZhangHe Trading Rmb5000000 24% 24% 93,535,914.50 57,066,511.42 36,469,403.08 111,811,218.50 6,594,069.24 72886492-8
2
Thermo King-Dalian
Transport Refrigeration
Co., Ltd.
Sino-foreign
joint venture
Shen
zhen
Song
Zhenning
Manufac
ture Usd2996900 25% 25% 219,578,844.00 96,385,980.00 123,192,864.00 136,505,309.00 795,311.00 61881070-X
3
Dalian Grand Ocean
Thermo King Transport
Refrigeration
Engineering Co., Ltd
Sino-foreign
joint venture
Dalian ZhangHe
Manufac
ture Usd850000 40% 40% 31,939,086.26 21,404,378.88 10,534,707.38 14,087,935.88 -13,695.87 60485722-4
4
Dalian Sanyo
Refrigeration Co., Ltd.
Sino-foreign
joint venture
Dalian
Watanabe
Yoshio
Manufac
ture Jpy2000000000 40% 40% 473,732,216.53 218,363,896.66 255,368,319.87 194,772,171.81 9,911,613.11 60480245-0
5
Dalian Honjo Chemical
Co., Ltd.
Sino-foreign
joint venture
Dalian
Honjo
Yukinovi
Manufac
ture Jpy260000000 30% 30% 35,151,974.06 5,900,543.40 29,251,430.66 17,165,741.81 1,967,050.50 60483825-0
6
Dalian Sanyo Cold-chain
Co., Ltd
Sino-foreign
joint venture
Dalian
Watanabe
Yoshio
Manufac
ture Jpy4650000000 40% 40% 1,358,442,975.22 882,442,856.02 476,000,119.20 1,010,976,326.56 23,507,887.80 60481691-6
7
Grand Ocean-showa Auto
Air Conditioning (Dalian)
Co., Ltd.
Sino-foreign
joint venture
Dalian Takumi Ishii
Manufac
ture Usd15117890 20% 20% 239,361,020.84 72,294,634.75 167,066,386.09 249,240,346.52 35,538,544.64 60486851-3
8
Dalian Sanyo
Compressor Co., Ltd.
Sino-foreign
joint venture
Dalian
Watanabe
Yoshio
Manufac
ture Jpy6200000000 40% 40% 1,355,642,648.78 618,467,015.10 737,175,633.68 696,213,958.01 73,545,550.99 60482029-6
9
Dalian Sanyo Meica
Electronics Co., Ltd.
Sino-foreign
joint venture
Dalian
ZhangHe
Manufac
ture Jpy400000000 30% 30% 154,843,321.68 85,418,538.47 69,424,783.21 84,091,879.16 5,132,532.66 60482091-5
10
Dalian Sanyo Airconditioner
Co., Ltd.
Sino-foreign
joint venture
Dalian
Watanabe
Yoshio
Manufac
ture Jpy4535000000 40% 40% 1,898,360,765.03 1,413,870,179.68 484,490,585.35 702,193,298.10 -20,903,109.26 60486689-2
11
Dalian Sanyo Home
Appliance Co., Ltd.
Sino-foreign
joint venture
Dalian ZhangHe
Manufac
ture Jpy600000000 40% 40% 167,314,964.26 121,191,285.51 46,123,678.75 83,052,143.55 -1,544,741.17 60486096-8
12
Beijing Huashang
Bingshan Refrigeration
and Air-conditioning
Machinery Co., Ltd.
Sino-foreign
joint venture
Dalian Yang Bin Trading Rmb1000000 49% 49% 8,544,085.55 7,351,084.56 1,193,000.99 7,023,929.48 92,588.86 74261540-XDalian Refrigeration Co., Ltd. 2010 Semiannual Report
41
13
Dalian Bingshan H2O3
Environmental Solution
Co. , Ltd.
Sino-foreign
joint venture
Dalian
Mu
Chuanjiang
Manufac
ture Usd1000000 33% 33% 1,620,394.84 86,812.85 1,533,581.99 74092769-6
14
Dalian Fuji Bingshan
Vending Machine Co.,
Ltd.
Sino-foreign
joint venture
Dalian
Asahi
Hideehiko
Manufac
ture Jpy1800000000 49% 49% 163,093,393.71 54,334,433.62 108,758,960.09 85,145,013.03 1,218,129.67 75158208-0
15
Daliian Sanyo High-
Efficient Refrigeration
System Co., Ltd.
Sino-foreign
joint venture
Dalian ZhangHe
Manufac
ture Rmb80000000 25% 25% 115,346,927.73 23,109,396.49 92,237,531.24 78,788,770.20 4,736,770.48 78733517-X
4、Other type of the related parties
Name of the related parties Relationship with the Company Organization Code
Dalian Bingshan Group Cold Drink Equipment Co.,
Ltd.
Subsidiary of Dalian Bingshan Group 24239741-8
Dalian Bingshan Group Refrigeration Equipment
Co., Ltd.
Subsidiary of Dalian Bingshan Group 11857056-X
Dalian Third Refrigeration Equipment Factory Subsidiary of Dalian Bingshan Group 11853975-7
Dalian Bingshan Group Import & Export Co. , Ltd. Subsidiary of Dalian Bingshan Group 72886492-8
Beijing Bingshan Serial Refrigeration Equipment
Co., Ltd. Subsidiary of Dalian Bingshan Group 80139721-2
Dalian Bingshan Group Materials Trading Co. , Ltd Subsidiary of Dalian Bingshan Group 74437418-7
Dalian Seiko Electric Control Co., Ltd. Affiliated company of Dalian Bingshan Group 60485922-X
Dalian Spindle Cooling Towers Co., Ltd. Affiliated company of Dalian Bingshan Group 60487379-3
Dalian Bingshan Metal Technology Co., Ltd. Affiliated company of Dalian Bingshan Group 76077536-X
Dalian Mahe Level Control Electrical Appliances
Co., Ltd. Affiliated company of Dalian Bingshan Group 60486775-6
Dalian JCI Cryogenic Industries Co., Ltd. Affiliated company of Dalian Bingshan Group 60481592-1
Linde Engineering (Dalian) Co., Ltd. Affiliated company of Dalian Bingshan Group 77301721-8
Dalian Bingshan Sanyo Laundering and Dyeing Co.,
Ltd. Affiliated company of Dalian Bingshan Group 60492073-X
BAC Dalian Co., Ltd. Affiliated company of Dalian Bingshan Group 60492102-X
Linde Engineering (Hangzhou) Co., Ltd. Affiliated company of Dalian Bingshan Group 77356588-X
5、The transactions between the Company and the related parties
(1) Purchases of goods from related parties/ Sales of goods to related parties
2010.01-06 2009.01-06
Name of the related parties Item
Details of
transaction
Rule of
price setting
Amount
Proportion of the same type
transaction amount ( %)
Amount
Proportion of the same type
transaction amount ( %)
Dalian Sanyo Cold-chain Co., Ltd Purchases Purchases of goods Market price 6,004,878.82 1.07 8,175,450.15 1.55
Dalian Sanyo Air-conditioner Co., Ltd. Purchases Purchases of goods Market price 2,482,666.81 0.44 1,715,040.77 0.33
Dalian Sanyo Compressor Co., Ltd. Purchases Purchases of goods Market price 2,085,793.66 0.37 1,855,348.59 0.35
Dalian Sanyo Meica Electronics Co., Ltd. Purchases Purchases of goods Market price 199,528.00 0.04 -
Dalian Sanyo Home Appliance Co., Ltd. Purchases Purchases of goods Market price 7,005.13 0.001 -
Dalian Bingshan Group Cold Drink
Equipment Co., Ltd.
Purchases Purchases of goods Market price 9,486,513.40 1.69 11,490,162.79 2.18
Dalian Bingshan Group Refrigeration
Equipment Co., Ltd.
Purchases Purchases of goods Market price 16,550,553.79 2.95 23,309,646.79 4.43Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
42
2010.01-06 2009.01-06
Name of the related parties Item
Details of
transaction
Rule of
price setting
Amount
Proportion of the same type
transaction amount ( %)
Amount
Proportion of the same type
transaction amount ( %)
Dalian Third Refrigeration Equipment
Factory
Purchases Purchases of goods Market price 4,294,866.41 0.77 2,263,553.76 0.43
Dalian Seiko Electric Control Co., Ltd. Purchases Purchases of goods Market price 1,732,568.00 0.33
Dalian Spindle Cooling Towers Co., Ltd. Purchases Purchases of goods Market price 31,623.93 0.01 335,000.00 0.06
BAC Dalian Co., Ltd. Purchases Purchases of goods Market price 23,114,432.52 4.13 16,350,099.27 3.10
Dalian Bingshan Group Import & Export
Co. , Ltd
Purchases Purchases of goods Market price 9,431,037.93 1.68 21,667,956.61 4.11
Dalian Bingshan Group Materials Trading
Co. , Ltd
Purchases Purchases of goods Market price 4,152,843.64 0.74 15,882,865.91 3.01
Dalian Bingshan Metal Technology Co., Ltd. Purchases Purchases of goods Market price 751,742.58 0.13 60,209.54 0.01
Thermo King-Dalian Transport Refrigeration
Co., Ltd.
Sales Sales of goods Market price 8,117,649.38 1.16 4,379,807.64 0.75
Dalian Sanyo Refrigeration Co., Ltd. Sales Sales of goods Market price 338,627.30 0.05 2,267,245.47 0.38
Dalian Sanyo Cold-chain Co., Ltd Sales Sales of goods Market price 7,954,449.64 1.14 9,767,597.28 1.65
Dalian Sanyo Air-conditioner Co., Ltd. Sales Sales of goods Market price 3,747,140.51 0.54 5,656,296.73 0.95
Dalian Sanyo Compressor Co., Ltd. Sales Sales of goods Market price 10,408,577.46 1.49 4,508,467.86 0.77
Dalian Bingshan Group Refrigeration
Equipment Co., Ltd.
Sales Sales of goods Market price 2,482,635.90 0.36 -
Dalian Third Refrigeration Equipment
Factory
Sales Sales of goods Market price 1,333.33 0.00
Dalian Seiko Electric Control Co., Ltd. Sales Sales of goods Market price 111,819.72 0.02 -
BAC Dalian Co., Ltd. Sales Sales of goods Market price 102,125.78 0.01 -
Dalian Bingshan Group Import & Export
Co. , Ltd
Sales Sales of goods Market price 52,154,828.88 7.47 40,038,842.87 6.82
Beijing Bingshan Serial Refrigeration
Equipment Co., Ltd.
Sales Sales of goods Market price 913,724.70 0.13 3,268,653.33 0.56
Beijing Huashang Bingshan Serial
Refrigeration Equipment Co., Ltd.
Sales Sales of goods Market price 4,522,261.44 0.65 2,228,507.00 0.38
Dalian Fuji Bingshan Vending Machine Co.,
Ltd.
Sales Sales of goods Market price 1,365,948.06 0.20 309,112.20 0.05
Shenyang Sanyo Air-conditioner Co., Ltd Sales Sales of goods Market price 325,061.54 0.06
Dalian Bingshan Metal Technology Co., Ltd. Sales Sales of goods Market price 81,024.47 0.01 77,560.68 0.01
Daliian Sanyo High-Efficient Refrigeration
System Co., Ltd.
Sales Sales of goods Market price 506,488.47 0.07 276,687.83 0.05
(2) Leasing fees from related party
No.
(3)Guarantee with related companies
No.
6 Amounts due from/to related parties
(1) Notes receivable
Name of the related parties 30-06-2010 31-12-2009
Dalian Sanyo Refrigeration Co., Ltd. 1,081,494.12
Dalian Sanyo Cold-chain Co., Ltd. 3,428,740.88 3,428,740.88Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
43
Dalian Sanyo Compressor Co., Ltd. 3,074,126.12
Dalian Sanyo Air-conditioner Co., Ltd. 5,805,882.82 20,000,000.00
Shenyang Sanyo Air-conditioner Co., Ltd. 1,178,682.00
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 1,000,000.00 1,000.000.00
(2) Accounts paid in advance
Name of the related parties 30-06-2010 31-12-2009
Dalian Sanyo Compressor Co., Ltd. 15,032.00
Dalian Sanyo Air-conditioner Co., Ltd. 355,790.41 483,784.80
Dalian Sanyo Cold-chain Co., Ltd. 17,790.00 33,770.00
BAC Dalian Co., Ltd. 394,500.00
(3) Accounts receivable
Name of the related parties 30-06-2010 31-12-2009
Dalian Sanyo Compressor Co., Ltd. 2,173,596.72 45,500.00
Dalian Sanyo Refrigeration Co., Ltd. 1,270,415.46
Dalian Sanyo Cold-chain Co., Ltd. 1,582,013.19 1,375,640.00
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 2,904.85
Thermo King-Dalian Transport Refrigeration Co., Ltd. 10,359,247.31 8,163,673.67
Dalian Sanyo Air-conditioner Co., Ltd. 3,526,056.30 4,087,732.58
Dalian Bingshan Group Import & Export Co., Ltd. 2,009,754.55 5,153,923.32
Dalian Bingshan – P&A Recreation Development Engineering Ltd. 112,200.00 112,200.00
Beijing Huashang Bingshan Refrigeration and Air-conditioning
Machinery Co., Ltd. 382,525.77
Dalian Seiko Electric Control Co., Ltd. 38,314.00 42,360.00
Dalian Fuji Bingshan Vending Machine Co., Ltd. 699,382.46 353,493.22
BAC Dalian Co., Ltd. 139,800.00
Dalian Sanyo High-Efficient Refrigeration System Co., Ltd. 491,920.07 513,193.64
Dalian Bingshan Metal Technology Co., Ltd. 12,345.00
(4) Other accounts receivable
Name of the related parties 30-06-2010 31-12-2009
Dalian Sanyo Cold-chain Co., Ltd. 287,482.30 287,482.30
(5) Dividends receivable
Name of the related parties 30-06-2010 31-12-2009
Dalian Sanyo Compressor Co., Ltd. 34,400,000.00
Dalian Sanyo Cold-chain Co., Ltd. 8,000,000.00
Dalian Sanyo Refrigeration Co., Ltd. 5,600,000.00 3,400,000.00
Dalian Grand Ocean Thermo King Transport Refrigeration
Engineering Co., Ltd. 229,735.08
(6) Notes payable
Name of the related parties 30-06-2010 31-12-2009
Dalian Seiko Electric Control Co., Ltd. 900,000.00 900,000.00
Dalian Spindle Cooling Towers Co., Ltd. 219,520.00
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 13,850,000.00 18,800,000.00Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
44
Dalian Bingshan Group Cold Drink Equipment Co., Ltd. 3,115,200.00 3,200,000.00
BAC Dalian Co., Ltd. 1,515,890.27 18,000,000.00
Dalian Bingshan Group Materials Trading Co. , Ltd. 2,484,550.29 6,615,631.79
Dalian Third Refrigeration Equipment Factory 1,700,000.00 2,530,000.00
(7) Accounts payable
Name of the related parties 30-06-2010 31-12-2009
Dalian Third Refrigeration Equipment Factory 1,665,822.55 1,667,867.33
Dalian Bingshan Group Cold Drink Equipment Co., Ltd. 8,277,038.61 2,925,656.74
BAC Dalian Co., Ltd. 16,304,844.00 13,644,795.27
Dalian Seiko Electric Control Co., Ltd. 1,001,340.00
Dalian Sanyo Air-conditioner Co., Ltd. 552,582.15
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 2,562,234.05 4,530,121.04
Dalian Sanyo Refrigeration Co., Ltd. 371,000.00
Dalian Sanyo Cold-chain Co., Ltd. 53,555.11
Dalian Sanyo Meica Electronics Co., Ltd. 164,629.86 321,330.90
Dalian Sanyo Home Appliance Co., Ltd. 27,253.00 42,570.00
Dalian Spindle Cooling Towers Co., Ltd. 37,000.00 185,150.00
Dalian Bingshan Group Import & Export Co., Ltd. 1,145,323.92 1,224,437.87
Dalian Sanyo Compressor Co., Ltd. 189,248.84 593,497.31
Dalian Bingshan Metal Technology Co., Ltd. 691,926.91 662,570.21
Dalian Bingshan Sanyo Laundering and Dyeing Co., Ltd. 38,693.51 38,693.51
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 7,468.36
Dalian Bingshan Group Materials Trading Co., Ltd 3,571,549.45 171,306.54
(8) Accounts received in advance
Name of the related parties 30-06-2010 31-12-2009
Beijing Huashang Bingshan Refrigeration and Airconditioning
Machinery Co., Ltd.
252,939.35
Dalian Sanyo Air-conditioner Co., Ltd. 30,250.00
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 2,482.30 52,482.30
Dalian Sanyo Cold-chain Co., Ltd. 241,824.28
Dalian Sanyo Compressor Co., Ltd. 54,653.08
Dalian Bingshan Group Import & Export Co. , Ltd. 1,138,591.24
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 2,596,597.96 90,208.48
(9) Dividends payable
Name of the related parties 30-06-2010 31-12-2009
Dalian Bingshan Group Co., Ltd. 13,803,352.45 3,705,000.00
Sanyo Electric Co., Ltd. 1,500,000.00 600,000.00
(10) Other Accounts payable
Name of the related parties 30-06-2010 31-12-2009
Dalian Bingshan Group Co., Ltd. 11,622,170.81 11,722,170.81
Dalian Third Refrigeration Equipment Factory 101,000.00 101,000.00
Dalian Bingshan H2O3 Environmental Solution Co. , Ltd. 566,360.68 566,360.68Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
45
Ⅶ.Contingency
No.
Ⅷ. Commitments
No.
Ⅸ.Unadjusted events after the Balance Sheet Date
No.
Ⅹ.Other significant events
1. Assets and liabilities recorded by fair value
Item 31-12-2009
Gain on fair
value change
Fair value change
which recorded into
equity
Impairment for
the period
30-06-2010
Financial assets
available for sale
18,883,800.00 -9,640,367.75 4,314,000.00
Total 18,883,800.00 -9,640,367.75 4,314,000.00
Ⅺ.Notes to the financial statements of the parent company
1 Accounts receivable
(1) Classified by account nature
30-06-2010 31-12-2009
Balance Provision for doubtful debt Balance Provision for doubtful debt
Category
Amount
Proportion
(%)
Amount
Proportion
(%)
Amount
Proportion
(%)
Amount
Proportion
(%)
Receivables that are
individually
significant
54,033,764.31 17.94 2,701,688.22 5.07 52,510,230.66 18.03 2,625,511.53 5.73
Receivables not
individually
significant but with
high risk in groups
Other insignificant
items
247,190,646.27 82.06 50,617,599.21 94.93 238,647,138.74 81.97 43,211,994.83 94.27
Total 301,224,410.58 100 53,319,287.43 100 291,157,369.40 100 45,837,506.36 100
(2) The aging of accounts receivable and related provisions for bad debts
30-06-2010 31-12-2009
Ages Amount
Proportion
(%)
Provision for bad
debts
Amount
Proportion
(%)
Provision for bad
debts
Within1 year 137,965,864.73 45.80 6,898,293.24 157,679,449.82 54.16 7,883,972.48
1 to 2 years 94,582,405.21 31.40 9,458,240.52 70,971,997.75 24.38 7,097,199.78
2 to 3 years 31,196,068.68 10.36 9,358,820.60 35,343,525.22 12.14 10,603,057.57
3 to 4 years 17,210,286.16 5.71 8,605,143.08 11,659,559.85 4.00 5,829,779.93
4 to 5 years 6,354,979.06 2.11 5,083,983.25 5,396,700.80 1.85 4,317,360.64
Over 5 years 13,914,806.74 4.62 13,914,806.74 10,106,135.96 3.47 10,106,135.96
Total 301,224,410.58 100 53,319,287.43 291,157,369.40 100 45,837,506.36
(3) There is no receivables not individually significant but with high risk in groups during the report period.
(4) There is no amount of provision for bad debts written back during the report period.
(5) There is no accounts receivable being recovered by debts reconstruction during the report period.Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
46
(6) There is no accounts receivable being written off during the report period.
(7) No arrearage from the shareholders holding over 5% (including 5%) of the equity of the Company existed in the
balance of accounts receivable.
(8) The first five arrearage entities listed in the balance of accounts receivable
Company The relationship with
the Company Amount Age Proportion
Client 1 Non-affiliated 14,531,824.00 Less than 1 year 4.82%
Client 2 Non-affiliated 11,242,693.00 Less than 1 year 3.73%
Client 3 Non-affiliated 10,692,000.00 Less than 1 year 3.56%
Thermo King-Dalian
Transport Refrigeration
Co., Ltd.
Associated company 10,359,247.31 Less than 1 year 3.44%
Client 5 Non-affiliated 7,208,000.00 Less than 1 year 2.39%
Total 54,033,764.31 17.94%
(9) The amount of accounts receivable due from related companies are RMB 12,532,844.03, 4.16% of total accounts
receivable.
Name
The relationship
with the
Company
Amount
Proportion of total accounts
receivable
Thermo King-Dalian Transport Refrigeration
Co., Ltd.
Associated
company
10,359,247.31 3.44%
Dalian Sanyo Compressor Co., Ltd.
Associated
company
2,173,596.72 0.72%
Total 12,532,844.03 4.16%
(10) There is no accounts receivable being ended reorganization or being negotiated during the reporting period.
2 Other accounts receivable
(1) Classified by account nature
30-06-2010 31-12-2009
Item Balance Provision for doubtful debt Balance Provision for doubtful debt
Amount
Proportion
(%)
Amount
Proportion
(%)
Amount
Proportion
(%)
Amount
Proportion
(%)
Receivables that are
individually significant
4,122,110.00 45.22 206,105.50 40.67 2,720,052.00 25.82 136,002.60 18.50
Receivables not
individually significant but
with high risk in groups
Other insignificant items 4,992,875.72 54.78 300,623.36 59.33 7,812,878.25 74.18 599,212.45 81.50
Total 9,114,985.72 100 506,728.86 100 10,532,930.25 100 735,215.05 100Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
47
(2) The ageing of other accounts receivable and related provisions for bad debts
30-06-2010 31-12-2009
Ages
Amount
Proportion
(%)
Provision for bad
debts
Amount
Proportion
(%)
Provision for
bad debts
Within1 year 8,492,901.96 93.18 424,645.10 9,479,068.51 89.99 265,572.22
1 to 2 years 600,000.00 6.58 60,000.00 73,756.98 0.70 7,375.70
2 to 3 years 647,691.01 6.15 194,307.30
3 to 4 years 8,292.65 0.08 4,146.33
4 to 5 years 301,538.00 2.86 241,230.40
Over 5 years 22,083.76 0.24 22,083.76 22,583.10 0.22 22,583.10
Total 9,114,985.72 100 506,728.86 10,532,930.25 100 735,215.05
(3) There is no receivables not individually significant but with high risk in groups during the reporting period.
(4) There is no amount of provision for bad debts written back during the reporting period.
(5) During the reporting period, there is no other account receivable being recovered by debts reconstruction.
(6) During the reporting period, there is no other accounts receivable written-off.
(7) There is no balance of other accounts receivable due from the shareholders holding over 5% (including 5%) of the
equity of the Company.
(8) The first five arrearage entities of other accounts receivable
Company The relationship
with the Company Amount Age Proportion
Client 1 Non-affiliated 2,512,110.00 2-3 years 27.56%
Client 2 Non-affiliated 510,000.00 Less than 1 year 5.60%
Client 3 Non-affiliated 500,000.00 Less than 1 year 5.48%
Client 4 Non-affiliated 300,000.00 Less than 1 year 3.29%
Client 5 Non-affiliated 300,000.00 Less than 1 year 3.29%
Total 4,122,110.00 45.22%
(9) There was no amount of other accounts receivable due from related companies at the end of the period.
(10) There is no other accounts receivable being ended reorganization or being negotiated during the reporting
period.
3 Long-term equity investments
(1) Details of long-term equity investments
No. Name
Calculatio
n method
Initial cost Beginning balance Changes Ending balance
Shareholdin
g（%）
Voting right
（%）
Provision for
impairment
Provision for
impairment of the
current period
Cash dividend of
the current
period
1
Dalian Bingshan –
P&A Recreation
Development
Engineering Co., Ltd.
Equity
method
1,034,675.00 3,348,595.73 -1,020,726.72 2,327,869.01 50% 50%
1,000,000.00
2
Dalian Jiale Vending
Machine Operation
Co., Ltd.
Equity
method
18,750,000.00 14,396,299.64 -214,153.27 14,182,146.37 50% 50%
3
Dalian Bingshan
Group Import &
Export Co. , Ltd.
Equity
method
1,200,000.00 7,170,080.12 1,582,576.62 8,752,656.74 24% 24%
4
Thermo King-Dalian
Transport Refrigeration
Co., Ltd.
Equity
method
6,313,174.25 30,962,291.25 198,827.75 31,161,119.00 25% 25%Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
48
No. Name
Calculatio
n method
Initial cost Beginning balance Changes Ending balance
Shareholdin
g（%）
Voting right
（%）
Provision for
impairment
Provision for
impairment of the
current period
Cash dividend of
the current
period
5
Dalian Grand Ocean
Thermo King
Transport Refrigeration
Engineering Co., Ltd
Equity
method
2,871,708.00 4,219,361.31 -4,930.51 4,214,430.80 40% 40%
6
Dalian Sanyo
Refrigeration Co., Ltd.
Equity
method
40,606,709.20 104,314,782.02 -2,031,819.28 102,282,962.74 40% 40%
5,600,000.00
7
Dalian Honjo
Chemical Co., Ltd.
Equity
method
3,908,911.50 9,597,071.44 -857,049.16 8,740,022.28 30% 30%
1,411,757.40
8
Dalian Sanyo Coldchain
Co., Ltd
Equity
method
134,658,753.75 193,437,523.47 650,902.71 194,088,426.18 40% 40% 8,000,000.00
9
Grand Ocean-showa
Auto Air Conditioning
(Dalian) Co., Ltd.
Equity
method
24,402,234.58 30,727,289.00 1,996,938.04 32,724,227.04 20% 20% 4,400,000.00
10
Dalian Sanyo
Compressor Co., Ltd.
Equity
method
176,953,841.88 296,639,122.13 -7,335,237.24 289,303,884.89 40% 40% 34,400,000.00
11
Dalian Sanyo Meica
Electronics Co., Ltd.
Equity
method
9,649,590.00 19,287,675.17 1,385,783.82 20,673,458.99 30% 30%
12
Dalian Sanyo Airconditioner
Co., Ltd.
Equity
method
124,728,240.00 143,788,794.28 -8,361,243.70 135,427,550.58 40% 40%
13
Dalian Sanyo Home
Appliance Co., Ltd.
Equity
method
19,666,212.00 22,008,452.45 -617,896.47 21,390,555.98 40% 40% 11,694,400.00
14
Beijing Huashang
Bingshan Refrigeration
and Air-conditioning
Machinery Co., Ltd.
Equity
method
490,000.00 537,340.85 45,368.54 582,709.39 49% 49%
15
Dalian Bingshan H2O3
Environmental
Solution Co. , Ltd.
Equity
method
2,731,377.50 506,082.06 506,082.06 33% 33%
16
Dalian Fuji Bingshan
Vending Machine Co.,
Ltd.
Equity
method
66,416,364.00 52,695,006.90 596,883.54 53,291,890.44 49% 49%
17
Daliian Sanyo High-
Efficient Refrigeration
System Co., Ltd.
Equity
method
20,000,000.00 21,742,605.81 1,065,773.36 22,808,379.17 25% 25%
18
Zibo Electric Traction
Machine Co., Ltd.
Cost
method
420,000.00 420,000.00 420,000.00 0.76% 0.76%
19
Liaoning Mec Group
Co., Ltd.
Cost
method
1,020,000.00 1,020,000.00 1,020,000.00 2% 2%
20
Suntek Technology
Co., Ltd.
Cost
method
3,000,000.00 3,000,000.00 3,000,000.00 0.84% 0.84% 3,000,000.00Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
49
No. Name
Calculatio
n method
Initial cost Beginning balance Changes Ending balance
Shareholdin
g（%）
Voting right
（%）
Provision for
impairment
Provision for
impairment of the
current period
Cash dividend of
the current
period
21
Guotai Junan
Securities Co., Ltd.
Cost
method
30,098,895.00 30,098,895.00 30,098,895.00 0.64% 0.64% 1,582,164.89 3,009,889.50
22
Guotai Junan
Investment
Management Co., Ltd.
Cost
method
3,057,316.00 3,057,316.00 3,057,316.00 0.22% 0.22% 2,688,605.91
23
Thermo King
Container Temperature
Control (Suzhou) Co.,
Ltd.
Cost
method
3,310,806.00 3,310,806.00 3,310,806.00 10% 10%
24
Liaoning Enterprises
UnitedIndustryCo.,Ltd.
Cost
method
105,000.00 105,000.00 105,000.00 4.2% 4.2% 105,000.00
25
Dalian Bingshan
Group Materials
Trading Co., Ltd.
Cost
method
250,000.00 250,000.00 250,000.00 5% 5%
26
Shenyang Sanyo Airconditioner
Co., Ltd.
Cost
method
34,098,618.72 34,098,618.72 34,098,618.72 10% 10% 9,620,025.72
27
Dalian Bingshan
Group Refrigeration
Installation Co., Ltd.
Cost
method
20,036,841.62 20,036,841.62 20,036,841.62 100% 100%
28
Dalian Bingshan
Group Sales Company
Cost
method
16,200,000.00 16,200,000.00 16,200,000.00 90% 90%
29
Dalian Bingshan Metal
Processing Co., Ltd.
Cost
method
12,501,344.60 12,501,344.60 12,501,344.60 64.25% 64.25%
30
Dalian Bingshan Air-
Conditioning
Equipment Co., Ltd.
Cost
method
36,506,570.00 36,506,570.00 36,506,570.00 70% 70% 2,945,196.92
31
Dalian Bingshan
Guardian Automation
Co., Ltd.
Cost
method
1,522,117.80 1,522,117.80 1,522,117.80 60% 60% 1,339,273.42
32
Dalian Bingshan
Ryosetsu Quick
Freezing Equipment
Co., Ltd.
Cost
method
5,745,097.40 5,745,097.40 5,745,097.40 70% 70%
33
Shanghai Bingshan
Serial Refrigeration
Equipment Co., Ltd.
Cost
method
900,000.00 900,000.00 900,000.00 45% 45%
34
Wuhan New World
Refrigeration Industrial
Co., Ltd.
Cost
method
17,980,400.00 17,980,400.00 17,980,400.00 51% 51% 2,550,000.00
35
Wuhan New World
Refrigeration Air
Conditioner
Engineering Co., Ltd.
Cost
method
400,000.00 400,000.00 400,000.00 5% 100%
36
Dalian Daleng Metal
Technology Co., Ltd.
Cost
method
20,000,000.00 20,000,000.00 20,000,000.00 100% 100%
Total 861,534,798.80 1,162,531,380.77 -12,920,001.97 1,149,611,378.80 28,690,196.52 64,656,117.24Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
50
(2)Listed with kinds of long term investment：
Item 30-06-2010 31-12-2009
Subsidiaries 131,792,371.42 131,792,371.42
Associates 925,948,356.28 937,633,478.26
Joint venture 16,510,015.38 17,744,895.37
Other long-term equity investments 75,360,635.72 75,360,635.72
Less: Provision for impairment of
long-term equity investments 28,690,196.52 28,690,196.52
Total 1,120,921,182.28 1,133,841,184.25
(3) Provision for impairment on long-term equity investment
Name of invested company 30-06-2010 31-12-2009
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 Co., Ltd. 105,000.00 105,000.00
Shenyang Sanyo Air Conditioner Co., Ltd. 9,620,025.72 9,620,025.72
Dalian Sanyo Home Appliance Co., Ltd. 11,694,400.00 11,694,400.00
Total 28,690,196.52 28,690,196.52
4 Revenue and cost of sales
(1)Business income and cost
Items 2010.01-06 2009.01-06
Key business income 444,777,652.28 340,243,857.09
Other business income 9,337,375.28 6,781,965.13
Key business cost 370,415,880.23 276,396,218.51
Other business cost 8,857,337.40 4,820,265.20
(2) Key business（type）
2010.01-06 2009.01-06
Name of type
Revenue Cost Revenue Cost
Manufacturing 444,777,652.28 370,415,880.23 340,243,857.09 276,396,218.51
(3) Key business（product）
2010.01-06 2009.01-06
Name of product
Revenue Cost Revenue Cost
Refrigeration
equipments
444,777,652.28 370,415,880.23 340,243,857.09 276,396,218.51Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
51
(4) Key business (region）
2010.01-06 2009.01-06
Name of region
Revenue Cost Revenue Cost
North-east of
China
444,777,652.28 370,415,880.23 340,243,857.09 276,396,218.51
((5) Top five customers
Name Revenue Percentage of total business income
Customer 1 47,785,388.13 10.74%
Customer 2 19,712,479.43 4.43%
Customer 3 16,056,239.32 3.61%
Customer 4 11,320,512.82 2.55%
Customer 5 9,801,452.99 2.20%
Total 104,676,072.69 23.53%
5 Gain/ (loss) from investments
(1) Categery
Item 2010.01-06 2009.01-06
Gain arising from dividends of subsidiaries 27,229,072.32 27,271,404.48
Long-term equity investment income accounted for by
using the equity method 41,891,755.43 27,811,762.91
Total 69,120,827.75 55,083,167.39
(2) Gain arising from dividends of subsidiaries
Name of invested company 2010.01-06 2009.01-06 Reason of changes
Thermo King Container Temperature Control (Suzhou) Co., Ltd. 15,220,000.00 No dividend distribution
Guotai Junan Securities Co., Ltd. 3,009,889.50 9,029,668.50 Less distributed dividend
Dalian Bingshan Air-Conditioning Equipment Co., Ltd. 2,945,196.92 3,021,735.98 Less distributed dividend
Dalian Bingshan Guardian Automation Co., Ltd. 1,339,273.42 Dividend distribution
Wuhan New World Refrigeration Industrial Co., Ltd. 2,550,000.00 Dividend distribution
Dalian Rubber & Plastics Machinery Co., Ltd. 17,384,712.48 1,740,000 DAXIANGSU shares sold.
Total 27,229,072.32 27,271,404.48
(3) Long-term equity investment income accounted for by using the equity method
Name of invested company 2010.01-06 2009.01-06 Reason of changes
Dalian Sanyo Refrigeration Co., Ltd. 3,568,180.72 2,431,256.93 Increase of business profit
Dalian Sanyo Cold-chain Co., Ltd 8,650,902.71 2,364,523.74 Increase of business profit
Grand Ocean-showa Auto Air Conditioning (Dalian) Co., Ltd. 6,396,938.04 1,849,786.61 Increase of business profit
Dalian Sanyo Compressor Co., Ltd. 27,064,762.76 17,697,995.76 Increase of business profit
Dalian Bingshan Group Import & Export Co., Ltd. 1,582,576.62 1,169,639.59 Increase of business profit
Thermo King-Dalian Transport Refrigeration Co., Ltd. 198,827.75 1,236,923.25 Decrease of business profit
Dalian Grand Ocean Thermo King Transport Refrigeration
Engineering Co., Ltd
-4,930.51 49,335.93 Decrease of business profit
Dalian Honjo Chemical Co., Ltd. 554,708.24 570,639.72 Decrease of business profit
Dalian Sanyo Meica Electronics Co., Ltd. 1,385,783.82 610,794.71 Increase of business profit
Dalian Sanyo Air-conditioner Co., Ltd. -8,361,243.70 1,129,706.32 Decrease of business profit
Dalian Sanyo Home Appliance Co., Ltd. -617,896.47 -802,397.34 Increase of business profitDalian Refrigeration Co., Ltd. 2010 Semiannual Report
52
Name of invested company 2010.01-06 2009.01-06 Reason of changes
Beijing Huashang Bingshan Refrigeration and Air-conditioning
Machinery Co., Ltd.
45,368.54 -9,264.11 Increase of business profit
Dalian Fuji Bingshan Vending Machine Co., Ltd. 596,883.54 -536,400.06 Increase of business profit
Daliian Sanyo High-Efficient Refrigeration System Co., Ltd. 1,065,773.36 685,351.11 Increase of business profit
Dalian Bingshan – P&A Recreation Development Engineering
Co., Ltd.
-20,726.72 -228,872.83 Increase of business profit
Dalian Jiale Vending Machine Operation Co., Ltd. -214,153.27 -407,256.42 Increase of business profit
Total 41,891,755.43 27,811,762.91
(4)There was no severe constrict on the collection of the investment earnings.
6、Supplementary information of cash flow statement
Supplementary information 2010.01-06 2009.01-06
1. Reconciliation from the net profit to the cash flows from operating
activities
Net profit 71,432,862.91 59,949,097.46
Add: Provisions for assets impairment 7,067,857.17 6,813,776.03
Depreciation of fixed assets 11,065,269.28 11,711,607.35
Amortization of intangible assets 502,412.72 365,524.71
Amortization of long-term deferred expenses 60,473.82 60,473.82
Losses on disposal of fixed assets, intangible assets and other longterm
assets 145,770.59 -30,941.04
Losses on scrapping of fixed assets
Losses on variation of fair value
Finance expenses 1,452,408.75 5,074,000.00
Investment losses -69,120,827.75 -55,083,167.39
Decrease in deferred tax assets -1,745,574.52 -1,393,389.17
Increase in deferred tax liabilities -3,213,455.92 2,202,525.00
Decrease in inventory 5,223,631.32 4,713,335.08
Decrease in operating receivables -64,672,575.51 -16,836,614.14
Increase in operating payables 32,215,983.49 -11,706,808.43
Others
Net cash flows from operating activities -9,585,763.65 5,839,419.28
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 261,282,879.03 229,449,211.41
Less: Cash at the beginning of the period 304,973,089.79 228,316,557.10
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 -43,690,210.76 1,132,654.31Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
53
Ⅻ. Other supplementary Information
1 Non-recurring profits and losses
Non-recurring gains and losses item 2010.01-06 2009.01-06
1. Gain/loss from disposal of non-current assets -155,882.03 44,995.25
2.Tax return or exemption exceeding authority or without formal
authorization documents 174,754.25 84,859.01
3.Governmental subsidy written into current gains and losses 1,947,500.00 1,957,500.00
4. Interest from non-financial enterprises written into current gains and
losses
5.Gains/Losses on debt restructuring
6.Reversal of provision for impairment of long-term assets
7. Other net income and expense from non-operation -2,141.37 113,579.54
Total 1,964,230.85 2,200,933.80
Less：Affected amount of income tax from non-recurring gains and
losses 228,535.88 412,067.50
Non-recurring gains and losses, net 1,735,694.97 1,788,866.30
Included: Attributable to minority interest 327,202.01 152,668.58
Attributable to parent company 1,408,492.96 1,636,197.72
2 Earnings per share
EPS
Item
The weighted
average
ROE(%) Basic EPS Diluted EPS
Net profit attributable to the Company’s ordinary
shareholders 4.24% 0.21 0.21
Net profit attributable to the Company’s ordinary
shareholders after deducting non-recurring gains and
losses
4.16% 0.20 0.20Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
54
ⅩⅢ、Details and reasons for the special change of the financial statements items
1、The special change items of balance sheet
Items of balance sheet 2010.06.30 2009.12.31
Change Ratio
（%）
Reasons
Dividends receivable 51,009,889.50 3,629,735.08 1,305.33 Unmatured
Financial assets available for
sale
4,314,000.00 18,883,800.00 -77.16 1,740,000 DAXIANGSU shares were sold.
Construction in progress 11,915,421.52 7,151,868.41 66.61
Mainly due to that the expenditure for
transformation of the machinery and
equipment was increased.
Intangible assets 171,821,991.43 101,642,968.01 69.04
Mainly due to that the parent company paid
71.36 million yuan for the purchased land in
the Development Zone.
Employee’s compensation
payable
22,961,869.14 42,215,810.06 -45.61
Mainly due to that the salary amount cashed
for 2009 that was drawn by the Company in
the period beginning was paid out in the
current period.
Tax payable 14,226,660.23 5,452,830.38 160.90
Mainly due to that the business income tax
and the value-added tax payable by the
Company in the current period were
increased.
Dividends payable 58,917,659.20 5,683,185.71 936.70 Unmatured
Long-term borrowings 10,200,000.00 100.00
The long-term loan was increased by 10.20
million yuan in the current period.
Deferred tax liabilities 930,571.00 4,144,026.92 -77.54
Mainly due to that 1,740,000 DAXIANGSU
shares were sold, leading to reduction of the
deferred income tax liability in confirmation
of the taxable temporary differences.
2、The special change items of income statement
Items of income
statement
2010.01-06 2009.01-06
Change Ratio
（%）
Reasons
Taxes and associate
charges
3,178,277.88 2,231,991.88 42.40
Mainly due to that the current incomes were
increased.
Financial expense 1,365,956.32 5,417,914.37 -74.79
Mainly due to that the total amount of loans in the
current period was decreased.
Non-business expenses 267,150.59 123,785.23 115.82
Mainly due to that the loss in disposal of non-current
assets in the current period was increased.
Income tax 6,883,751.91 1,759,639.13 291.20
Mainly due to that the taxable income amount and the
deferred income tax assets were increased, and the
deferred income tax liability was decreased.
Other comprehensive
income
-9,640,367.75 6,607,575.00 -245.90
Mainly due to that 1,740,000 DAXIANGSU shares
were sold, leading to reduction of the capital surplus.
Dalian Refrigeration Company Limited
24 August, 2010Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
55
§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
25 August, 2010Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
56
CONSOLIDATED BALANCE SHEET
Prepared by Dalian Refrigeration Company Limited 30 June 2010 Unit: RMB Yuan
Items Ending balance Beginning Balance
Consolidation Parent company Consolidation Parent company
Current Assets:
Monetary funds 354,218,457.83 261,282,879.03 403,139,585.35 304,973,089.79
Transaction financial asset
Notes receivable 45,081,789.64 29,234,737.20 40,209,996.20 21,335,155.82
Account receivable 432,208,554.01 247,905,123.15 425,397,218.64 245,319,863.04
Account paid in advance 32,649,935.91 9,226,813.37 25,596,323.14 7,044,245.77
Dividend receivable 51,009,889.50 59,816,095.81 3,629,735.08 6,621,471.05
Other account receivable 21,523,668.84 8,608,256.86 19,043,927.34 9,797,715.20
Financial assets purchased under
agreements to resell
Inventories 284,320,371.09 187,629,159.05 277,566,058.11 192,852,790.37
Non-current assets due within 1
year
Other current assets
Total current assets 1,221,012,666.82 803,703,064.47 1,194,582,843.86 787,944,331.04
Non-current assets:
Available for sale financial assets 4,314,000.00 4,314,000.00 18,883,800.00 18,883,800.00
Held to maturity investments
Long-term account receivable
Long-term equity investment 990,872,953.36 1,120,921,182.28 1,003,792,955.33 1,133,841,184.25
Investing property
Fixed asset 352,970,784.12 203,141,207.02 366,005,762.61 213,493,488.86
Project in construction 11,915,421.52 1,443,142.30 7,151,868.41 691,197.90
Engineering material
Fixed asset disposal
Bearer biological asset
Oil assets
Intangible assets 171,821,991.43 100,762,722.24 101,642,968.01 29,785,134.96
Development expense
Goodwill
Long-term expense to be
apportioned 3,327,714.42 2,912,822.03 3,396,953.58 2,973,295.85
Deferred tax assets 12,882,017.27 7,212,148.77 10,831,589.55 5,466,574.25
Other non-current assets
Total non-current assets 1,548,104,882.12 1,440,707,224.64 1,511,705,897.49 1,405,134,676.07
Total assets 2,769,117,548.94 2,244,410,289.11 2,706,288,741.35 2,193,079,007.11Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
57
CONSOLIDATED BALANCE SHEET (CONTINUED)
Prepared by Dalian Refrigeration Company Limited 30 June 2010 Unit: RMB Yuan
Items Ending balance Beginning Balance
Consolidation Parent company Consolidation Parent company
Current liabilities:
Short-term borrowings 60,000,000.00 50,000,000.00 60,000,000.00 50,000,000.00
Transaction financial liabilities
Notes payable 110,756,842.69 94,992,119.77 119,785,760.78 86,390,969.71
Account payable 411,734,049.09 263,742,878.85 394,117,576.34 265,214,427.00
Account received in advance 178,052,372.62 92,071,329.90 180,479,306.45 105,565,661.24
Employee’s compensation payable 22,961,869.14 1,097,329.06 42,215,810.06 17,906,388.85
Tax payable 14,226,660.23 8,792,206.84 5,452,830.38 1,265,221.74
Dividend payable 58,917,659.20 53,035,402.25 5,683,185.71 533,156.00
Other account payable 41,076,526.41 8,742,059.75 47,248,597.16 15,970,462.37
Non-current liabilities due within 1
year
Other current liabilities
Total current liabilities 897,725,979.38 572,473,326.42 854,983,066.88 542,846,286.91
Non-current liabilities:
Long-term borrowings 10,200,000.00 10,200,000.00
Debentures payable
Long-term payables
Specific purpose account payables
Provisions for contingent liabilities
Deferred tax liabilities 930,571.00 930,571.00 4,144,026.92 4,144,026.92
Other non-current liabilities 74,922,895.64 23,121,886.64 70,052,440.14 17,694,437.14
Total non-current liabilities 86,053,466.64 34,252,457.64 74,196,467.06 21,838,464.06
Total liabilities 983,779,446.02 606,725,784.06 929,179,533.94 564,684,750.97
Owner’s equity
Share capital 350,014,975.00 350,014,975.00 350,014,975.00 350,014,975.00
Capital surplus 589,662,685.25 588,433,757.63 599,303,053.00 598,074,125.38
Less: Treasury Stock
Reserved fund 412,250,374.19 412,250,374.19 399,190,859.34 399,190,859.34
General risk provision
Retained earnings 345,045,787.22 286,985,398.23 341,096,035.56 281,114,296.42
Foreign exchange difference
Total owners' equity attributable to
holding company 1,696,973,821.66 1,637,684,505.05 1,689,604,922.90 1,628,394,256.14
Minority interest 88,364,281.26 87,504,284.51
Total owner’s equity 1,785,338,102.92 1,637,684,505.05 1,777,109,207.41 1,628,394,256.14
Total liabilities and owner’s equity 2,769,117,548.94 2,244,410,289.11 2,706,288,741.35 2,193,079,007.11Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
58
CONSOLIDATED INCOME STATEMENT
Prepared by Dalian Refrigeration Company Limited 2010.01-06 Unit: RMB Yuan
Items 2010.01-06 2009.01-06
Consolidation Parent company Consolidation Parent company
I. Total sales 710,539,815.60 454,115,027.56 595,410,146.46 347,025,822.22
Including: Operating income 710,539,815.60 454,115,027.56 595,410,146.46 347,025,822.22
II. Total operating cost 691,522,267.58 449,628,101.16 581,977,984.47 345,279,063.04
Including: Operating cost 570,457,579.49 379,273,217.63 474,282,085.58 281,216,483.71
Taxes and associate charges 3,178,277.88 2,298,653.43 2,231,991.88 1,260,280.14
Selling and distribution expenses 36,503,985.41 17,693,996.75 29,230,427.61 13,353,727.67
Administrative expenses 70,766,347.69 42,267,087.72 59,425,945.48 37,619,548.25
Financial expense 1,365,956.32 1,027,288.46 5,417,914.37 5,015,247.24
Impairment loss 9,250,120.79 7,067,857.17 11,389,619.55 6,813,776.03
Add: gain from change in fair value
Gain/(loss) from investment 62,308,657.41 69,120,827.75 52,061,431.41 55,083,167.39
Including: income form investment
on affiliated enterprise and jointly
enterprise
41,891,755.43 41,891,755.43 27,811,762.91 27,811,762.91
Foreign exchange difference
III. Operating profit 81,326,205.43 73,607,754.15 65,493,593.40 56,829,926.57
Add: non-business income 3,389,201.81 2,117,125.23 3,847,541.08 2,908,684.24
Less: non-business expense 267,150.59 151,383.45 123,785.23 25,388.88
Including: loss from non-current
asset disposal 174,315.40 151,383.45 50,854.88 25,388.88
IV. Total profit 84,448,256.65 75,573,495.93 69,217,349.25 59,713,221.93
Less: Income tax 6,883,751.91 4,140,633.02 1,759,639.13 -235,875.53
V. Net profit 77,564,504.74 71,432,862.91 67,457,710.12 59,949,097.46
Net profit attributable to parent
company 71,805,431.81 71,432,862.91 62,573,899.67 59,949,097.46
Minority shareholders’ gains and
losses 5,759,072.93 4,883,810.45
VI. Earnings per share
(I) basic earnings per share 0.21 0.18
(II) diluted earnings per share 0.21 0.18
Ⅶ. Other comprehensive income -9,640,367.75 -9,640,367.75 6,607,575.00 6,607,575.00
Ⅷ. Total comprehensive income 67,924,136.99 61,792,495.16 74,065,285.12 66,556,672.46
Total comprehensive income
attributable to parent company 62,165,064.06 61,792,495.16 69,181,474.67 66,556,672.46
Total comprehensive income
attributable to minority shareholders 5,759,072.93 4,883,810.45Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
59
CONSOLIDATED CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Company Limited 2010.01-06 Unit: RMB Yuan
Items 2010.01-06 2009.01-06
Consolidation Parent company Consolidation Parent company
1. Cash flows arising from operating activities:
Cash received from sales of goods or rending of services 695,210,645.39 405,698,801.62 475,794,707.61 294,009,076.66
Refund of tax and fare received 264,021.53 165,859.01
Other cash received relating to operating activities 24,448,658.48 17,486,054.35 15,215,928.52 8,610,621.07
Sub-total of cash inflows 719,923,325.40 423,184,855.97 491,176,495.14 302,619,697.73
Cash paid for goods and services 533,949,335.81 313,665,949.87 311,197,441.97 198,479,850.18
Cash paid to and on behalf of employees 95,460,967.52 61,043,895.76 82,180,297.41 49,769,112.09
Tax and fare paid 40,810,734.24 27,417,810.49 47,309,737.61 26,889,322.44
Other cash paid relating to operating activities 49,536,254.45 30,642,963.50 48,262,072.09 21,641,993.74
Sub-total of cash outflows 719,757,292.02 432,770,619.62 488,949,549.08 296,780,278.45
Net cash flow from operating activities 166,033.38 -9,585,763.65 2,226,946.06 5,839,419.28
2. Cash Flows arising from Investment Activities:
Cash received from return of investments 1,715,976.33 1,715,976.33
Cash received from investment income 27,626,204.96 27,626,204.96 42,507,068.50 42,462,468.50
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 28,820.51 16,000.00 56,950.00 44,000.00
Proceeds from sale of subsidiaries and other operating
units
Other cash received relating to investment activities
Sub-total of cash inflows 29,371,001.80 29,358,181.29 42,564,018.50 42,506,468.50
Cash paid for acquiring fixed assets, intangible assets
and other long-term assets 78,651,920.33 72,210,146.00 6,375,832.38 1,165,334.85
Cash paid for acquiring investments
Other cash paid relating to investment activities
Sub-total of cash outflows 78,651,920.33 72,210,146.00 6,375,832.38 1,165,334.85
Net cash flow from investing activities -49,280,918.53 -42,851,964.71 36,188,186.12 41,341,133.65
3. Cash Flows arising from Financing Activities:
Cash received from absorbing investment
Including: Cash received from increase in minority
interest
Cash received from borrowings 62,700,000.00 60,200,000.00 54,220,000.00 50,000,000.00
Other proceeds relating to financing activities
Sub-total of cash inflows 62,700,000.00 60,200,000.00 54,220,000.00 50,000,000.00
Cash paid for settling debt 55,151,998.00 50,000,000.00 53,660,000.00 50,000,000.00
Cash paid for distribution of dividends or profit or
reimbursing interest 7,319,669.45 1,452,408.75 48,373,809.55 46,047,893.80
Other cash payments relating to financing activities 8,355.47 124,000.00
Sub-total of cash outflows 62,480,022.92 51,452,408.75 102,157,809.55 96,047,893.80
Net cash flow from financing activities 219,977.08 8,747,591.25 -47,937,809.55 -46,047,893.80
4. Influence on cash due to fluctuation in exchange rate -26,219.45 -73.65 -8,853.22 -4.82
5. Increase in cash and cash equivalents -48,921,127.52 -43,690,210.76 -9,531,530.59 1,132,654.31
Add : Cash and cash equivalents at year-begin 403,139,585.35 304,973,089.79 312,337,783.75 228,316,557.10
6.Cash and cash equivalents at the end of the year 354,218,457.83 261,282,879.03 302,806,253.16 229,449,211.41Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
60
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Dalian Refrigeration Company Limited 2010.01-06 Unit: RMB Yuan
2010.01-06
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 350,014,975.00 599,303,053.00 399,190,859.34 341,096,035.56 87,504,284.51 1,777,109,207.41
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
this year 350,014,975.00 599,303,053.00 399,190,859.34 341,096,035.56 87,504,284.51 1,777,109,207.41
III. Increase/ decrease of
amount in this year (“-”
means decrease)
-9,640,367.75 13,059,514.85 3,949,751.66 859,996.75 8,228,895.51
(I) Net profit 71,805,431.81 5,759,072.93 77,564,504.74
(II) Other comprehensive
income -9,640,367.75 -9,640,367.75
Subtotal of (I)and (II) -9,640,367.75 71,805,431.81 5,759,072.93 67,924,136.99
(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 13,059,514.85 -67,855,680.15 -4,899,076.18 -59,695,241.48
1. Withdrawing surplus
public reserve 13,059,514.85 -13,059,514.85
2. Withdrawing general risk
reserve
3. Distribution to all owners
(shareholders) -52,502,246.25 -4,899,076.18 -57,401,322.43
4. Others -2,293,919.05 -2,293,919.05
(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 350,014,975.00 589,662,685.25 412,250,374.19 345,045,787.22 88,364,281.26 1,785,338,102.92Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
61
2009.01-06
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 350,014,975.00 590,111,053.00 368,103,745.84 348,583,641.82 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) Other comprehensive
income 6,607,575.00 6,607,575.00
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. 2010 Semiannual Report
62
STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Dalian Refrigeration Company Limited 2010.01-06 Unit: RMB Yuan
2010.01-06
Items
share capital Capital surplus Lessen: treasury
stock Surplus reserve Retained profits
Total of owners’
equity
I. balance at the end of last
year 350,014,975.00 598,074,125.38 399,190,859.34 281,114,296.42 1,628,394,256.14
1. Change of accounting
policy
2. Correction of errors in
previous period
II. balance at the beginning of
this year 350,014,975.00 598,074,125.38 399,190,859.34 281,114,296.42 1,628,394,256.14
III. Increase/ decrease of
amount in this year (“-”
means decrease)
-9,640,367.75 13,059,514.85 5,871,101.81
9,290,248.91
(I) Net profit 71,432,862.91 71,432,862.91
(II) Other comprehensive
income -9,640,367.75 -9,640,367.75
Subtotal of (I)and (II) -9,640,367.75 71,432,862.91 61,792,495.16
(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 13,059,514.85 -65,561,761.10 -52,502,246.25
1. Withdrawing surplus
public reserve 13,059,514.85 -13,059,514.85
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 350,014,975.00 588,433,757.63 412,250,374.19 286,985,398.23 1,637,684,505.05Dalian Refrigeration Co., Ltd. 2010 Semiannual Report
63
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) Other comprehensive
income 6,607,575.00 6,607,575.00
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 1,620,461,354.36
