DALIAN REFRIGERATION CO., LTD.
QUARTERLY REPORT FOR FIRST QUARTER, 2011
§1 Important Notes
1.1 The directors and the Board of Directors, the supervisors and the Supervisory Board, and
Senior staff members of Dalian Refrigeration Co., Ltd. (hereinafter referred to as the Company)
hereby confirm that there are no any important omissions, fictitious statements or serious
misleading carried in this report, and shall take all responsibilities, individual and/or joint, for the
reality, accuracy and completeness of the whole contents.
1.2 The Company’s quarterly financial report has not been audited.
1.3 Chairman of the Board of Directors of the Company Mr. Zhang He, Financial Majordomo and
the head of Accounting Department Ms. Xu Junrao hereby confirm that the financial report of the
quarterly report is true and complete.
1.4 This report is written respectively in Chinese and in English. In the event of any discrepancy
between the two above-mentioned versions, the Chinese version shall prevail.
§2 Company Profile
2.1 Major accounting data and financial indexes
By the end of the By the end of last Increase/decrease over
report period year the end of last year(%)
Total assets 3,030,001,190.07 2,912,380,523.59 4.04%
Owner’s equity attributable to
1,741,410,778.36 1,726,095,242.62 0.89%
shareholders of listed companies
Share capital 350,014,975.00 350,014,975.00 0.00%
Net assets per share attributable to
4.98 4.93 1.01%
shareholders of listed companies
From beginning of Increase/decrease over
Report period year to the end of the same period of last
report period year(%)
Total operating income 391,702,895.55 281,828,260.92 38.99%
Net profit attributable to
14,537,035.74 10,515,144.72 38.25%
shareholders of listed companies
Net cash generated from operating
32,412,671.07 3,969,725.85 716.50%
activities
Net cash per share generated from
0.09 0.01 800.00%
operating activities
Basic earnings per share 0.04 0.03 33.33%
Diluted earnings per share 0.04 0.03 33.33%
Increase 0.22 percent
Return on equity 0.84% 0.62%
age points
ROE after deducting non-recurring Increase 0.21 percent
0.82% 0.61%
gains/losses age points
1
Amount from beginning of year to the end of
Item of non-recurring gains and losses
report period
Non-operating income and expense, net 716,049.96
Income tax effect -180,054.29
Minority shareholders’ gains and losses -215,148.50
Total 320,847.17
2.2 Total number and particulars of the shareholders by the end of the report period
Total shareholders at the end of report period 36,937
Particulars about shares held by the top ten negotiable shareholders not subject to conditional sales
Name of shareholder EOY (shares) Type
Dalian Bingshan Group Co., Ltd. 57,641,762 A
SANYO ELECTRIC CO., LTD. 35,001,500 B
DREYFUS GREATER CHINA FD 16,238,818 B
SYWG BNP Paribas New Power Stock Fund 8,549,287 A
MANULIFE TEDA Leading Mid-cap and Small-cap Stock Fund 4,329,340 A
Hua An Mid-cap and Small-cap Growth Stock Fund 3,449,607 A
Lion Growth Stock Fund 3,240,592 A
Bosera Venture Growth Stock Fund 2,249,915 A
Everbright Securities Co., Ltd. 2,148,561 A
RENAISSANCE CHINA PLUS FUND 2,115,285 B
§3 Important Matters
3.1 Major changes in main financial items and indexes, and description of the cause
√ Applicable □ Inapplicable
1. The receipts in advance increased remarkably in comparison with the beginning of year mainly
due to increase of the order volume received by the Company.
2. The wages & welfarism payable to employees decreased remarkably in comparison with the
beginning of year mainly due to payment of the provision for wages & welfarism payable to
employees allotted at the end of the previous period in this period.
3. The amount of taxes payable increased remarkably mainly due to increase of the profit.
4. The incomes on business increased remarkably mainly due to the great market demand and the
Company’s putting more efforts to development of the market.
5. The profit on business increased remarkably mainly due to remarkable increase of the
Company’s incomes on business.
3.2 Analytic description of major matters, their influence and solutions
□ Applicable √ Inapplicable
2
3.3 Undertaking matters for trial sales of state shares and implementation
√ Applicable □Inapplicable
Except the immature condition of being implementation for management share incentive scheme,
Dalian Bingshan Group strictly perform the commitment in share reform.
3.4 Precautions on forecasting that by the beginning of year till the end of the next report period,
the accumulated net profit may be turned into loss or change greatly compared with that in the
same period of the last year, and description of the cause
□ Applicable √ Inapplicable
3.5 Other important events
3.5.1 Securities investment
□Applicable √Inapplicable
3.5.2 Table of investigation, communication, interview received
Discussion topic
Reception time Reception location Reception form Received objects and provided
information
Jan. 7, 2011 Company’s office By telephone CITIC Securities’ researchers
Prime Capital Management Co., Ltd.’s
Jan. 12, 2011 Company’s office Field investigation
researchers Information
Feb. 11, 2011 Company’s office By telephone Shenyin Wanguo Securities’ researchers about the
Feb. 15, 2011 Company’s office Field investigation Orient Securities’ researchers fundamentals of
Feb. 16, 2011 Company’s office Field investigation Wanjia Fund’s researchers the Company
Feb. 25, 2011 Company’s office Field investigation Fidelity Fund’s researchers
Mar. 11, 2011 Company’s office Field investigation China AMC’s researchers
§4 Financial Report (attached)
Not audited.
Board of Directors of Dalian Refrigeration Co., Ltd.
April 15, 2011
3
BALANCE SHEET
Prepared by Dalian Refrigeration Co., Ltd. March 31, 2011 Unit: RMB
March 31, 2011 Dec.31, 2010
Assets Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 518,981,533.03 413,673,772.42 491,775,575.71 373,620,785.42
Transaction finance asset
Notes receivable 54,305,809.55 36,084,948.12 56,479,888.76 49,784,046.02
Accounts receivable 454,531,034.82 259,881,171.92 390,976,267.06 214,541,164.10
Accounts in advance 33,556,560.86 7,785,808.14 26,314,393.85 7,366,672.20
Dividend receivable 1,895,196.91 27,875.00 1,895,196.91
Other receivables 23,713,089.44 9,398,610.05 18,701,693.90 8,559,690.90
Inventories 359,053,036.11 215,195,901.01 347,022,118.02 225,531,781.02
Non-current asset due within
one year
Other current assets
Total current assets 1,444,141,063.81 943,915,408.57 1,331,297,812.30 881,299,336.57
Non-current assets:
Finance asset held available
6,846,000.00 6,846,000.00 5,808,000.00 5,808,000.00
for sales
Long-term equity investment 1,012,588,723.24 1,142,636,952.16 1,005,117,178.44 1,135,594,407.36
Investment property
Fixed assets 353,162,597.77 187,912,645.59 358,624,031.52 192,591,756.92
Construction in progress 23,643,667.71 14,023,810.00 20,965,359.70 11,475,403.00
Engineering material
Disposal of fixed asset
Intangible assets 173,250,128.83 103,424,543.99 174,288,663.96 104,068,094.85
Expense on Research and
Development
Goodwill
Long-term expenses to be
3,423,855.68 2,822,111.30 3,258,475.26 2,852,348.21
apportioned
Deferred income tax asset 12,945,153.03 6,018,225.85 13,021,002.41 6,018,225.85
Other non-current asset
Total non-current asset 1,585,860,126.26 1,463,684,288.89 1,581,082,711.29 1,458,408,236.19
Total assets 3,030,001,190.07 2,407,599,697.46 2,912,380,523.59 2,339,707,572.76
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BALANCE SHEET (CONTINUED)
March 31, 2011 Dec.31, 2010
Liabilities and shareholders’ equity
Consolidation Parent Company Consolidation Parent Company
Current liabilities:
Short-term loans 63,000,000.00 50,000,000.00 63,000,000.00 50,000,000.00
Transaction financial liabilities
Notes payable 133,797,383.86 102,249,334.81 112,902,026.83 82,819,852.85
Accounts payable 463,122,969.93 303,496,674.36 452,300,932.97 302,583,777.60
Accounts received in advance 347,664,699.57 199,928,672.74 259,326,042.99 155,923,536.16
Wage payable 23,061,168.98 1,157,444.66 42,953,092.00 17,605,092.59
Taxes payable 8,256,258.16 4,034,282.95 3,363,873.43 -97,556.60
Dividend payable 1,345,383.24 533,156.00 1,345,383.24 533,156.00
Other accounts payable 40,652,547.46 15,767,081.88 46,435,002.51 13,647,561.23
Non-current liabilities due within
one year
Other current liabilities 1,699,101.00 585,101.00 1,699,101.00 585,101.00
Total current liabilities 1,082,599,512.20 677,751,748.40 983,325,454.97 623,600,520.83
Non-current liabilities:
Long-term loans 10,200,000.00 10,200,000.00 10,200,000.00 10,200,000.00
Projected liabilities
Deferred income tax liabilities 1,563,571.00 1,563,571.00 1,304,071.00 1,304,071.00
Other non-current liabilities 98,787,859.27 48,936,347.27 99,066,350.27 48,936,347.27
Total non-current liabilities 110,551,430.27 60,699,918.27 110,570,421.27 60,440,418.27
Total liabilities 1,193,150,942.47 738,451,666.67 1,093,895,876.24 684,040,939.10
Shareholders’ equity
Share capital 350,014,975.00 350,014,975.00 350,014,975.00 350,014,975.00
Capital public reserve 591,561,685.25 590,332,757.63 590,783,185.25 589,554,257.63
Less: Inventory shares
Surplus public reserve 421,079,823.34 421,079,823.34 421,079,823.34 421,079,823.34
Retained profit 378,754,294.77 307,720,474.82 364,217,259.03 295,017,577.69
Total owner’s equity attributable to
1,741,410,778.36 1,669,148,030.79 1,726,095,242.62 1,655,666,633.66
parent company
Minority interests 95,439,469.24 92,389,404.73
Total owner’s equity 1,836,850,247.60 1,669,148,030.79 1,818,484,647.35 1,655,666,633.66
Total liabilities and shareholder’s equity 3,030,001,190.07 2,407,599,697.46 2,912,380,523.59 2,339,707,572.76
5
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January-March, 2011 Unit: RMB
January-March, 2011 January-March, 2010
Items
Consolidation Parent Company Consolidation Parent Company
I. Total sales 391,702,895.55 253,198,029.96 281,828,260.92 167,961,069.77
Including: Operating income 391,702,895.55 253,198,029.96 281,828,260.92 167,961,069.77
II. Total operating cost 379,683,003.86 245,646,902.70 274,105,889.86 167,712,789.58
Including: Operating cost 317,853,432.18 215,509,662.82 220,982,477.51 140,492,743.66
Taxes and associate charges 1,564,240.09 770,149.20 663,198.44 311,462.42
Selling and distribution expenses 17,670,553.26 6,299,060.72 15,466,246.45 6,699,073.23
Administrative expenses 40,362,445.90 22,462,171.32 33,373,811.96 19,742,811.70
Financial expense 707,074.84 605,858.64 590,817.46 466,698.57
Impairment loss 1,525,257.59 3,029,338.04
Add: gain from change in fair value
Gain/(loss) from investment 7,042,544.80 7,042,544.80 6,124,583.65 6,102,283.65
Including: income form investment on
affiliated enterprise and jointly 7,042,544.80 7,042,544.80 6,102,283.65 6,102,283.65
enterprise
Foreign exchange difference
III. Operating profit 19,062,436.49 14,593,672.06 13,846,954.71 6,350,563.84
Add: non-business income 1,045,415.13 108.41 1,187,646.54 277,049.84
Less: non-business expense 29,173.01 4,036.56 185,189.01 151,383.45
Including: loss from non-current asset
2,359.00 151,383.45 151,383.45
disposal
IV. Total profit 20,078,678.61 14,589,743.91 14,849,412.24 6,476,230.23
Less: Income tax 3,052,991.02 1,886,846.78 1,415,006.16 83,081.65
V. Net profit 17,025,687.59 12,702,897.13 13,434,406.08 6,393,148.58
Net profit attributable to parent
14,537,035.74 12,702,897.13 10,515,144.72 6,393,148.58
company
Minority shareholders’ gains and losses 2,488,651.85 2,919,261.36
VI. Earnings per share
(I) basic earnings per share 0.04 0.03
(II) diluted earnings per share 0.04 0.03
Ⅶ. Other comprehensive income 778,500.00 778,500.00 6,809,400.00 6,809,400.00
Ⅷ. Total comprehensive income 17,804,187.59 13,481,397.13 20,243,806.08 13,202,548.58
Total comprehensive income
15,315,535.74 13,481,397.13 17,324,544.72 13,202,548.58
attributable to parent company
Total comprehensive income
2,488,651.85 2,919,261.36
attributable to minority shareholders
6
CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January-March, 2011 Unit: RMB
January-March, 2011 January-March, 2010
Items Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating activities:
Cash received from selling commodities and
408,869,620.25 255,280,986.92 310,055,149.83 174,880,591.05
providing labor services
Write-back of tax received 264,021.53
Other cash received concerning operating
9,851,456.95 6,582,649.99 15,047,153.64 10,643,806.06
activities
Subtotal of cash inflow arising from
418,721,077.20 261,863,636.91 325,366,325.00 185,524,397.11
operating activities
Cash paid for purchasing commodities and
260,442,075.71 147,160,027.10 221,180,466.16 137,788,731.43
receiving labor service
Cash paid to/for staff and workers 66,448,921.48 39,588,357.52 56,201,203.14 37,629,852.05
Taxes paid 21,893,482.43 12,596,763.62 18,873,395.52 12,587,870.57
Other cash paid concerning operating activities 37,523,926.51 18,316,500.95 25,141,534.33 15,428,580.94
Subtotal of cash outflow arising from
386,308,406.13 217,661,649.19 321,396,599.15 203,435,034.99
operating activities
Net cash flows arising from operating
32,412,671.07 44,201,987.72 3,969,725.85 -17,910,637.88
activities
II. Cash flows arising from investing activities:
Cash received from recovering investment
Cash received from investment income 27,875.00
Net cash received from disposal of fixed,
1,966.00 1,966.00 16,000.00 16,000.00
intangible and other long-term assets
Other cash received concerning investing
activities
Subtotal of cash inflow from investing
29,841.00 1,966.00 16,000.00 16,000.00
activities
Cash paid for purchasing fixed, intangible and
5,832,708.30 3,409,194.62 10,340,062.81 764,256.00
other long-term assets
Cash paid for investment
Other cash paid concerning investing activities
Subtotal of cash outflow from investing
5,832,708.30 3,409,194.62 10,340,062.81 764,256.00
activities
Net cash flows arising from investing
-5,802,867.30 -3,407,228.62 -10,324,062.81 -748,256.00
activities
III. Cash flows arising from financing
activities
Cash received from absorbing investment
Cash received from loans 1,500,000.00 10,200,000.00 10,200,000.00
7
Other cash received concerning financing
activities
Subtotal of cash inflow from financing
1,500,000.00 10,200,000.00 10,200,000.00
activities
Cash paid for settling debts 2,245,000.00
Cash paid for dividend and profit distributing
834,613.04 741,774.99 5,177,366.12 708,545.00
or interest paying
Other cash paid concerning financing activities 73,432.05 102,861.28
Subtotal of cash outflow from financing
908,045.09 741,774.99 7,525,227.40 708,545.00
activities
Net cash flows arising from financing
591,954.91 -741,774.99 2,674,772.60 9,491,455.00
activities
IV. Influence on cash due to fluctuation in
4,198.64 2.89 7,432.31 -6.64
exchange rate
V. Net increase of cash and cash equivalents 27,205,957.32 40,052,987.00 -3,672,132.05 -9,167,445.52
Add: Balance of cash and cash equivalents at
491,775,575.71 373,620,785.42 403,139,585.35 304,973,089.79
the period -begin
VI. Balance of cash and cash equivalents at the
518,981,533.03 413,673,772.42 399,467,453.30 295,805,644.27
period–end
8
