DALIAN REFRIGERATION CO., LTD.
QUARTERLY REPORT FOR THIRD QUARTER, 2010
§1 Important Notes
1.1 The directors and the Board of Directors, the supervisors and the Supervisory Board, and
Senior staff members of Dalian Refrigeration Co., Ltd. (hereinafter referred to as the Company)
hereby confirm that there are no any important omissions, fictitious statements or serious
misleading carried in this report, and shall take all responsibilities, individual and/or joint, for the
reality, accuracy and completeness of the whole contents.
1.2 The Company’s quarterly financial report has not been audited.
1.3 Chairman of the Board of Directors of the Company Mr. Zhang He, Financial Majordomo and
the head of Accounting Department Ms. Xu Junrao hereby confirm that the financial report of the
quarterly report is true and complete.
1.4 This report is written respectively in Chinese and in English. In the event of any discrepancy
between the two above-mentioned versions, the Chinese version shall prevail.
§2 Company Profile
2.1 Major accounting data and financial indexes
2010.9.30 2009.12.31
Increase/decrease over
2009.12.31(%)
Total assets 2,841,341,005.15 2,706,288,741.35 4.99%
Shareholder’s equity attributable to
parent company
1,735,878,323.22 1,689,604,922.90 2.74%
Share capital 350,014,975.00 350,014,975.00 0.00%
Net assets per share attributable to
parent company
4.96 4.83 2.69%
2010.7-9
Increase/decrease
over 2009.7-9(%)
2010.1-9
Increase/decrease
over 2009.1-9(%)
Total operating income 397,233,345.08 9.45% 1,107,773,160.68 15.59%
Net profit attributable to parent
company
37,352,001.56 23.13% 109,157,433.37 17.49%
Net cash generated from operating
activities
- - 53,068,969.74 -11.54%
Net cash per share generated from
operating activities
- - 0.15 -11.76%
Basic earnings per share 0.10 11.11% 0.31 14.81%
Diluted earnings per share 0.10 11.11% 0.31 14.81%
Return on equity 2.18%
Increase 0.4
percentage points
6.37%
Increase 0.91
percentage points
ROE after deducting non-recurring
gains/losses
1.96%
Increase 0.26
percentage points
6.07%
Increase 0.81
percentage points2
Item of non-recurring gains and losses
Amount from beginning of year
to the end of report period
Profit and loss from disposal of non-current assets -86,630.90
Occasional return, reduction and exemption of taxes 174,754.25
Government subsidies which were included in the current profits and losses 5,057,038.14
Other non-operating incomes and expenses except the above mentioned 1,966,628.03
Minority equity interests effects -347,273.06
Income tax effects -1,509,276.18
Total 5,255,240.28
2.2 Total number and particulars of the shareholders by the end of the report period
Total shareholders at the end of report period 33,968
Particulars about shares held by the top ten negotiable shareholders not subject to conditional sales
Name of shareholder EORP
(shares) Type
SANYO ELECTRIC CO LTD 35,001,500 B
DREYFUS GREATER CHINA FD 16,238,818 B
Zhongxinda Aoyin Leaders Growth Equity Fund 7,770,906 A
Hua An Innovation Securities Investment Fund 4,022,875 A
Essence Financing 2: positive-allocation collective asset management plan 2,678,514 A
CITIC-Prudential Essential Growth Stock Fund 2,200,000 A
CITIC-Prudential Prosperous Blue Chip Stock Fund 2,099,907 A
RENAISSANCE CHINA PLUS FUND 1,942,485 B
Taiyuan Iron & Steel Investment Co., Ltd., Shanxi 1,775,000 A
Dalian State-Owned Assets Management Co., Ltd. 1,650,000 A
§3 Important Matters
3.1 Major changes in main financial items and indexes, and description of the cause
√ Applicable □ Inapplicable
1. The advances was remarkably more than that at the beginning of the year mainly due to
increase of the order quantity and of the prepayment for raw materials by the Company.
2. The dividend receivable was remarkably more than that at the beginning of the year mainly due
to that the associated companies have not begun to distribute the dividend.
3. Other receivables was remarkably more than that at the beginning of the year mainly due to
increase of the Company’s business volume and increase of the bid bonds.
4. The financial assets available for sale was remarkably less than that at the beginning of the year
mainly due to that the Company sold out its held 1.74 million negotiable shares of Dalian Rubber
& Plastics Machinery Co., Ltd.
5. The construction in progress was remarkably more than that at the beginning of the year mainly
due to that the Casting Business Department was transformed and that the subsidiary company
purchased equipment.3
6. The intangible assets was remarkably more than that at the beginning of the year mainly due to
that the Company purchased the land use right.
7. The deferred income tax liability was remarkably less than that at the beginning of the year
mainly due to the reversal after the Company sold out its held 1.74 million negotiable shares of
Dalian Rubber & Plastics Machinery Co., Ltd.
8. The financial expense was remarkably decreased year-on-year mainly due to that the loan
amount was less than that in the same period of the previous year.
9. The amount of income tax was remarkably increased year-on-year mainly due to increase of the
profit.
3.2 Analytic description of major matters, their influence and solutions
□ Applicable √ Inapplicable
3.3 Undertaking matters for trial sales of state shares and implementation
√ Applicable □Inapplicable
Bingshan Group undertook that the Dalian Refrigeration Co., Ltd.’s state shares held by it would
not be listed for trading or assigned within 12 months from the date when their being allowed to
be listed for trading in the A-share market; that the shares would not be listed for trading within 48
months after expiry of the aforementioned undertaking.
Bingshan Group well fulfilled the above undertaking.
3.4 Precautions on forecasting that by the beginning of year till the end of the next report period,
the accumulated net profit may be turned into loss or change greatly compared with that in the
same period of the last year, and description of the cause
□ Applicable √ Inapplicable
3.5 Other important events
3.5.1 Securities investment
□ Applicable √ Inapplicable4
3.5.2 Table of investigation, communication, interview received
Date of
reception
Place of
reception Way of reception Guest received
Main content of
discussion and
information
provided
Aug. 2, 2010 Field investigation Researchers from Fortis Haitong Fund
Aug. 27, 2010 By telephone
Researchers from GF Securities, and
researchers from Fortune SGAM Fund
Aug. 31, 2010 Field investigation
Researchers from Everbright Securities,
researchers from Huashang Fund, and
researchers from Taikang Asset
Sept. 2, 2010 Field investigation
Researchers from Haitong Securities,
researchers from Zheshang Securities,
researchers from Congrong Investment, and
researchers from Shanghai Qianshi
Investment
Sept. 7, 2010 By telephone Researchers from Fortune SGAM Fund
Sept. 8, 2010 Field investigation
Researchers from CITIC-Prudential Fund,
researchers from BOC International,
researchers from China AMC, and researchers
from ABN AMRO TEDA Fund
Sept. 16, 2010 Field investigation
Researchers from China Merchants Fund, and
researchers from Huatai United Securities
Sept. 27, 2010
Company’s
office
Field investigation Researchers from Western Securities
Information about
the fundamentals
of the Company
3.6 Derivatives investment
□ Applicable √ Inapplicable
§4 Financial Report (attached)
Not audited.
Board of Directors of Dalian Refrigeration Co., Ltd.
October 27, 20105
BALANCE SHEET
Prepared by Dalian Refrigeration Co., Ltd. September 30, 2010 Unit: RMB
September 30, 2010 Dec.31, 2009
Assets Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 371,003,302.26 269,992,366.91 403,139,585.35 304,973,089.79
Transaction finance asset
Notes receivable 37,797,093.64 27,121,975.64 40,209,996.20 21,335,155.82
Accounts receivable 464,724,260.68 261,169,219.63 425,397,218.64 245,319,863.04
Accounts in advance 38,234,235.14 13,055,445.51 25,596,323.14 7,044,245.77
Dividend receivable 20,660,000.00 25,576,932.89 3,629,735.08 6,621,471.05
Other receivables 26,672,021.00 10,472,030.33 19,043,927.34 9,797,715.20
Inventories 285,962,530.10 168,447,514.68 277,566,058.11 192,852,790.37
Non-current asset due within
one year
Other current assets
Total current assets 1,245,053,442.82 775,835,485.59 1,194,582,843.86 787,944,331.04
Non-current assets:
Finance asset held available
for sales
6,384,000.00 6,384,000.00 18,883,800.00 18,883,800.00
Held-to-maturity securities
Long-term account receivable
Long-term equity investment 1,024,042,752.39 1,154,090,981.31 1,003,792,955.33 1,133,841,184.25
Investment property
Fixed assets 352,403,538.56 197,836,705.11 366,005,762.61 213,493,488.86
Construction in progress 22,850,653.05 6,754,891.51 7,151,868.41 691,197.90
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 174,789,054.29 104,127,619.05 101,642,968.01 29,785,134.96
Expense on R&D
Goodwill
Long-term expenses to be
apportioned
3,293,094.84 2,882,585.12 3,396,953.58 2,973,295.85
Deferred income tax asset 12,524,469.20 7,212,148.77 10,831,589.55 5,466,574.25
Other non-current asset
Total non-current asset 1,596,287,562.33 1,479,288,930.87 1,511,705,897.49 1,405,134,676.07
Total assets 2,841,341,005.15 2,255,124,416.46 2,706,288,741.35 2,193,079,007.11
Legal representative: Zhang He
Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao6
BALANCE SHEET (CONTINUED)
September 30, 2010 Dec.31, 2009
Liabilities and shareholders’ equity
Consolidation Parent Company Consolidation Parent Company
Current liabilities:
Short-term loans 60,000,000.00 50,000,000.00 60,000,000.00 50,000,000.00
Transaction financial liabilities
Notes payable 94,080,522.24 68,668,675.16 119,785,760.78 86,390,969.71
Accounts payable 461,566,595.03 277,368,105.04 394,117,576.34 265,214,427.00
Accounts received in advance 231,119,746.63 129,668,380.15 180,479,306.45 105,565,661.24
Wage payable 32,262,947.46 9,673,234.08 42,215,810.06 17,906,388.85
Taxes payable 6,042,069.45 4,443,863.57 5,452,830.38 1,265,221.74
Dividend payable 3,505,909.97 533,156.00 5,683,185.71 533,156.00
Other accounts payable 42,042,591.96 8,519,907.27 47,248,597.16 15,970,462.37
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 930,620,382.74 548,875,321.27 854,983,066.88 542,846,286.91
Non-current liabilities:
Long-term loans 10,200,000.00 10,200,000.00
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities
Deferred income tax liabilities 1,448,071.00 1,448,071.00 4,144,026.92 4,144,026.92
Other non-current liabilities 72,384,858.50 20,862,348.50 70,052,440.14 17,694,437.14
Total non-current liabilities 84,032,929.50 32,510,419.50 74,196,467.06 21,838,464.06
Total liabilities 1,014,653,312.24 581,385,740.77 929,179,533.94 564,684,750.97
Shareholders’ equity
Share capital 350,014,975.00 350,014,975.00 350,014,975.00 350,014,975.00
Capital public reserve 591,215,185.25 589,986,257.63 599,303,053.00 598,074,125.38
Surplus public reserve 412,250,374.19 412,250,374.19 399,190,859.34 399,190,859.34
Retained profit 382,397,788.78 321,487,068.87 341,096,035.56 281,114,296.42
Total owner’s equity attributable to
parent company
1,735,878,323.22 1,673,738,675.69 1,689,604,922.90 1,628,394,256.14
Minority interests 90,809,369.69 87,504,284.51
Total owner’s equity 1,826,687,692.91 1,673,738,675.69 1,777,109,207.41 1,628,394,256.14
Total liabilities and shareholder’s
equity
2,841,341,005.15 2,255,124,416.46 2,706,288,741.35 2,193,079,007.11
Legal representative: Zhang He
Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao7
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. July-September, 2010 Unit: RMB
Items July-September, 2010 July-September, 2009
Consolidation Parent Company Consolidation Parent Company
I. Total sales 397,233,345.08 254,573,624.38 362,926,575.98 232,782,946.07
Including: Operating income 397,233,345.08 254,573,624.38 362,926,575.98 232,782,946.07
II. Total operating cost 394,420,896.78 258,470,336.35 361,988,203.86 234,148,829.98
Including: Operating cost 325,758,654.70 217,706,982.87 300,593,173.31 196,216,043.10
Taxes and associate charges 1,289,656.62 829,317.43 1,783,473.90 1,221,391.52
Selling and distribution expenses 27,175,310.32 16,389,542.10 23,210,252.36 14,292,516.03
Administrative expenses 42,175,284.59 23,096,579.33 34,724,911.28 21,078,625.74
Financial expense 1,039,557.55 447,914.62 1,890,628.03 1,340,253.59
Impairment loss -3,017,567.00 -214,235.020 0.00
Add: gain from change in fair value 0.00 0.00
Gain/(loss) from investment 34,129,799.03 34,129,799.03 29,648,278.41 31,062,344.13
Including: income form investment on
affiliated enterprise and jointly enterprise
33,829,799.03 33,829,799.03 29,648,278.41 29,648,278.41
Foreign exchange difference
III. Operating profit 36,942,247.33 30,233,087.06 30,586,650.53 29,696,460.22
Add: non-business income 5,674,847.81 5,305,930.38 4,471,210.46 2,101,396.11
Less: non-business expense 66,097.70 480.78 125,503.25 55,245.81
Including: loss from non-current asset disposal 5,741.20 480.78 51,927.16 51,927.16
IV. Total profit 42,550,997.44 35,538,536.66 34,932,357.74 31,742,610.52
Less: Income tax 2,753,907.45 1,036,866.02 1,126,177.48 1,873,510.60
V. Net profit 39,797,089.99 34,501,670.64 33,806,180.26 29,869,099.92
Net profit attributable to parent company 37,352,001.56 34,501,670.64 30,334,809.93 29,869,099.92
Minority shareholders’ gains and losses 2,445,088.43 0.00 3,471,370.33 0.00
VI. Earnings per share
(I) basic earnings per share 0.10 0.09
(II) diluted earnings per share 0.10 0.09
Ⅶ. Other comprehensive income 1,552,500.00 1,552,500.00 -871,400.00 -871,400.00
Ⅷ. Total comprehensive income 41,349,589.99 36,054,170.64 32,934,780.26 28,997,699.92
Total comprehensive income attributable to
parent company
38,904,501.56 36,054,170.64 29,463,409.93 28,997,699.92
Total comprehensive income attributable to
minority shareholders
2,445,088.43 0.00 3,471,370.33 0.00
Legal representative: Zhang He
Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao8
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January-September, 2010 Unit: RMB
Items January-September, 2010 January-September, 2009
Consolidation Parent Company Consolidation Parent Company
I. Total sales 1,107,773,160.68 708,688,651.94 958,336,722.44 579,808,768.29
Including: Operating income 1,107,773,160.68 708,688,651.94 958,336,722.44 579,808,768.29
II. Total operating cost 1,085,943,164.36 708,098,437.51 943,966,188.33 579,427,893.02
Including: Operating cost 896,216,234.19 596,980,200.50 774,875,258.89 477,432,526.81
Taxes and associate charges 4,467,934.50 3,127,970.86 4,015,465.78 2,481,671.66
Selling and distribution expenses 63,679,295.73 34,083,538.85 52,440,679.97 27,646,243.70
Administrative expenses 112,941,632.28 65,363,667.05 94,150,856.76 58,698,173.99
Financial expense 2,405,513.87 1,475,203.08 7,308,542.40 6,355,500.83
Impairment loss 6,232,553.79 7,067,857.17 11,175,384.53 6,813,776.03
Add: gain from change in fair value
Gain/(loss) from investment 96,438,456.44 103,250,626.78 81,709,709.82 86,145,511.52
Including: income form investment on
affiliated enterprise and jointly enterprise
75,721,554.46 75,721,554.46 57,460,041.32 57,460,041.32
Foreign exchange difference
III. Operating profit 118,268,452.76 103,840,841.21 96,080,243.93 86,526,386.79
Add: non-business income 9,064,049.62 7,423,055.61 8,318,751.54 5,010,080.35
Less: non-business expense 333,248.29 151,864.23 249,288.48 80,634.69
Including: loss from non-current asset disposal 180,056.60 151,864.23 102,782.04 77,316.04
IV. Total profit 126,999,254.09 111,112,032.59 104,149,706.99 91,455,832.45
Less: Income tax 9,637,659.36 5,177,499.04 2,885,816.61 1,637,635.07
V. Net profit 117,361,594.73 105,934,533.55 101,263,890.38 89,818,197.38
Net profit attributable to parent company 109,157,433.37 105,934,533.55 92,908,709.60 89,818,197.38
Minority shareholders’ gains and losses 8,204,161.36 8,355,180.78
VI. Earnings per share
(I) basic earnings per share 0.31 0.27
(II) diluted earnings per share 0.31 0.27
Ⅶ. Other comprehensive income -8,087,867.75 -8,087,867.75 5,736,175.00 5,736,175.00
Ⅷ. Total comprehensive income 109,273,726.98 97,846,665.80 107,000,065.38 95,554,372.38
Total comprehensive income attributable to
parent company
101,069,565.62 97,846,665.80 98,644,884.60 95,554,372.38
Total comprehensive income attributable to
minority shareholders
8,204,161.36 8,355,180.78
Legal representative: Zhang He
Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao9
CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January -September , 2010 Unit: RMB
January -September, 2010 January -September, 2009
Items Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating activities:
Cash received from selling commodities and
providing labor services
1,133,165,411.28 656,091,635.83 810,585,711.26 512,483,884.10
Write-back of tax received 265,906.95 573,640.04
Other cash received concerning operating
activities
48,504,311.30 30,187,959.47 29,784,739.62 17,991,135.24
Subtotal of cash inflow arising from
operating activities
1,181,935,629.53 686,279,595.30 840,944,090.92 530,475,019.34
Cash paid for purchasing commodities and
receiving labor service
829,242,149.35 484,902,519.38 510,172,769.32 329,916,536.99
Cash paid to/for staff and workers 135,076,067.59 84,613,610.19 121,202,958.07 75,734,622.14
Taxes paid 73,887,467.26 50,786,232.68 69,907,636.50 40,203,519.07
Other cash paid concerning operating activities 90,660,975.59 48,803,427.21 79,665,869.20 36,512,508.81
Subtotal of cash outflow arising from
operating activities
1,128,866,659.79 669,105,789.46 780,949,233.09 482,367,187.01
Net cash flows arising from operating
activities
53,068,969.74 17,173,805.84 59,994,857.83 48,107,832.33
II. Cash flows arising from investing activities:
Cash received from recovering investment 1,715,976.33 1,715,976.33
Cash received from investment income 58,936,094.46 62,825,367.88 55,325,134.02 55,280,534.02
Net cash received from disposal of fixed,
intangible and other long-term assets
49,230.51 36,000.00 77,755.00 63,655.00
Net cash received from disposal of subsidiaries
and other units
Other cash received concerning investing
activities
4,537,620.00 4,537,620.00
Subtotal of cash inflow from investing
activities
60,701,301.30 64,577,344.21 59,940,509.02 59,881,809.02
Cash paid for purchasing fixed, intangible and
other long-term assets
89,952,076.37 72,265,936.00 7,837,827.59 2,618,952.85
Cash paid for investment
Other cash paid concerning investing activities
Subtotal of cash outflow from investing
activities
89,952,076.37 72,265,936.00 7,837,827.59 2,618,952.85
Net cash flows arising from investing
activities
-29,250,775.07 -7,688,591.79 52,102,681.43 57,262,856.17
III. Cash flows arising from financing
activities10
Cash received from absorbing investment
Cash received from loans 63,500,000.00 60,200,000.00 54,269,500.00 50,000,000.00
Other cash received concerning financing
activities
Subtotal of cash inflow from financing
activities
63,500,000.00 60,200,000.00 54,269,500.00 50,000,000.00
Cash paid for settling debts 55,680,497.00 50,000,000.00 103,660,000.00 100,000,000.00
Cash paid for dividend and profit distributing
or interest paying
63,707,368.67 54,665,700.00 64,162,039.18 59,307,371.25
Other cash paid concerning financing activities 45,044.43 124,000.00
Subtotal of cash outflow from financing
activities
119,432,910.10 104,665,700.00 167,946,039.18 159,307,371.25
Net cash flows arising from financing
activities
-55,932,910.10 -44,465,700.00 -113,676,539.18 -109,307,371.25
IV. Influence on cash due to fluctuation in
exchange rate
-21,567.66 -236.93 316.99 -10.03
V. Net increase of cash and cash equivalents -32,136,283.09 -34,980,722.88 -1,578,682.93 -3,936,692.78
Add: Balance of cash and cash equivalents at
the period -begin
403,139,585.35 304,973,089.79 312,337,783.75 228,316,557.10
VI. Balance of cash and cash equivalents at the
period–end
371,003,302.26 269,992,366.91 310,759,100.82 224,379,864.32
Legal representative: Zhang He
Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao
