Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
DALIAN REFRIGERATION CO., LTD.
2011 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 Authorized representative in
Directors charge of securities affairs
Name Ms. Xu Junrao Mr. Song Wenbao
Contact address Office of Dalian Refrigeration Securities Department of
Co., Ltd. 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.com
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
2.2 Major Accounting Data and Financial Indexes
2.2.1 Summary of the accounting data and indexes
Unit: RMB yuan
Increase/decrease at the end
End of this report of this report period
End of last year
period compared with the end of last
year (%)
Total assets 3,184,200,936.13 2,912,380,523.59 9.33%
Owner’s equity attributable to
1,794,739,324.48 1,726,095,242.62 3.98%
parent company
Share capital 350,014,975.00 350,014,975.00 0.00%
Net assets per share 5.13 4.93 4.06%
Increase/decrease in this
Report period (from Same period in the report period compared with
Jan. through Jun.) last year the same period of the last
year (%)
Total sales 947,894,622.28 710,539,815.60 33.40%
Operating profit 113,418,892.26 81,326,205.43 39.46%
Total amount of profit 118,510,728.61 84,448,256.65 40.34%
Net profit attributable to parent
95,488,392.56 71,805,431.81 32.98%
company
Net profit after deducting incidental
55,527,288.08 57,358,404.49 -3.19%
gain/loss
Basic earnings per share 0.27 0.21 28.57%
Diluted earnings per share 0.27 0.21 28.57%
Increase 1.19
Rate of returns on net assets 5.42% 4.23%
percentage points
Net amount of cash flow generated
90,669,975.56 166,033.38 —
in operating activities
Net amount of cash flow per share
0.26 0.0005 —
generated in operating activities
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 49,838,201.53
Government subsidies which were included in the current profits and losses 2,755,500.00
Other non-operating incomes and expenses except the above mentioned 989,103.03
Minority interests effects -299,623.61
Income tax effects -13,322,076.47
Total 39,961,104.48
2.2.3 Difference between applications of Chinese accounting standards and of the international
accounting standards
None
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
§3 Changes in Share Capital and Particulars about Shareholders
3.1 Change in share capital
√ Applicable □ Not applicable
Unit: share
Before changes in Increase/decrease in changes in this period After changes in
this period （+, -） this period
Dividend
Issuanc
stock from
Number of e of Share Number of
Ratio contributed Others Subtotal Ratio
shares new granting shares
capital
shares
surplus
I. Shares with trading
76,947,796 21.98% -57,641,762 -57,641,762 19,306,034 5.52%
limited conditions
1. Shares held by the
State
2. Shares held by the
state-owned legal person
3. Shares held by other
76,855,683 21.96% -57,641,762 -57,641,762 19,213,921 5.49%
domestic investors
In which: Shares held by
domestic non-state-owned 76,855,683 21.96% -57,641,762 -57,641,762 19,213,921 5.49%
legal persons
Shares held by
domestic natural persons
4. Shares held by foreign
investors
In which: Shares held by
overseas legal persons
Shares held by
overseas natural persons
5. Shares held by the top
92,113 0.03% 92,113 0.03%
management
II. Shares without trading
273,067,179 78.02% 57,641,762 57,641,762 330,708,941 94.48%
limited conditions
1. RMB common shares 158,067,179 45.16% 57,641,762 57,641,762 215,708,941 61.63%
2. Domestically listed
115,000,000 32.86% 115,000,000 32.86%
foreign shares
3. Overseas listed foreign
shares
4. Others
III. Total number of
350,014,975 100.00% 350,014,975 100.00%
shares
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
3.2. Particulars about the shares held by the top ten shareholders and those held by the top ten
shareholders without trading limited conditions
Unit: share
Total number of shareholders 37,977
Particulars about the shareholding by the top ten shareholders
Number of
Total Number of
Nature of Sharehol shares with
Name of shareholder number of pledged or
shareholder ding ratio trading limited
shares frozen shares
conditions
Domestic non-
Dalian Bingshan Group Co., Ltd. state-owned legal 21.96% 76,855,683 19,213,921 0
person
Overseas legal
Sanyo Electric Co., Ltd. 10.00% 35,001,500
person
Overseas legal
Dreyfus Greater China FD 4.64% 16,238,818
person
Domestic non-
SYWG MU New Power Stock Fund state-owned legal 3.24% 11,349,255
person
Domestic non-
Taikang Life Insurance Co., Ltd. – Universal –
state-owned legal 1.17% 4,109,041
Individual Insurance Universal
person
Domestic non-
Taikang Life Insurance Co., Ltd. － Dividend -
state-owned legal 1.09% 3,804,471
Individual Dividend - 019L-FH002 SZ person
Domestic non-
Lion Growth Stock Fund state-owned legal 0.79% 2,752,468
person
Domestic non-
Everbright Securities Co., Ltd. state-owned legal 0.72% 2,508,261
person
Domestic non-
Bosera Venture Growth Stock Fund state-owned legal 0.64% 2,249,915
person
Overseas legal
Renaissance China Plus Fund 0.60% 2,115,285
person
Particulars about the shareholding by the top ten shareholders without trading limited conditions
Number of shares
Name of shareholder without trading Type of share
limited conditions
Dalian Bingshan Group Co., Ltd. 57,641,762 RMB common shares
Sanyo Electric Co., Ltd. 35,001,500 Domestically listed foreign shares
Dreyfus Greater China FD 16,238,818 Domestically listed foreign shares
SYWG MU New Power Stock Fund 11,349,255 RMB ordinary shares
Taikang Life Insurance Co., Ltd. – Universal – Individual Insurance
4,109,041 RMB ordinary shares
Universal
Taikang Life Insurance Co., Ltd. －Dividend - Individual Dividend -
3,804,471 RMB ordinary shares
019L-FH002 SZ
Lion Growth Stock Fund 2,752,468 RMB ordinary shares
Everbright Securities Co., Ltd. 2,508,261 RMB ordinary shares
Bosera Venture Growth Stock Fund 2,249,915 RMB ordinary shares
Renaissance China Plus Fund 2,115,285 Domestically listed foreign shares
Description of the association relationship between the It is unknown whether there was the association relationship
above shareholders or of the acting in concert between the above shareholders.
3.3 Changes in the controlling shareholder and actual controllers
□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
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
§5 Report of the Board of Directors
1. Business status of the Company
(1) Main businesses
In the first half of 2011, the Company well attained all of the major business indicators by actively
coping with the change in the global economic situation, centering around quality-oriented benefit,
making use of the business updating and transformation, laying stress on the new series of screw
compressors and two storage package projects, putting much effort to both the domestic and the
overseas markets, striving for expanding the market range and service fields, substantially
improving the internal control system, effectively promoting the remuneration system reform and
further raising the labor productivity. In the 1st half year of 2011, the Company achieved sale
income RMB 947.89 million yuan, accounting for 59.96% of RMB 1.581 billion yuan as one of the
operating plan indicators of the Company for 2011, up by 33.40% from the same period of last year;
the total profits achieved is RMB 118.51 million yuan, accounting for 94.81% of RMB 125.00
million yuan as one of the operating plan indicators of the company for 2011, up by 40.33% from
the same period of last year.
In the report period, the Company independently developed two new series of products, Series
JZSLG compound two-stage screw refrigeration compressor set and Series JZVLG screw
refrigeration compressor with the adjustable volumetric ratio. The main technical indicators have
reached the advanced level in the world.
(2) Sino-foreign joint venture companies
By the end of the first half of 2011, the Company’s Sino-foreign joint venture companies had the
total assets of 6,792.94 million yuan with a year-on-year increase of 8.58% and the net assets of
2,438.91 million yuan with a year-on-year decrease of 4.08%, if accounted with the equity method.
In the report period, the Company’s Sino-foreign joint venture companies made the sales income of
4,251.44 million yuan with a year-on-year increase of 26.13%; and the Company obtained the
returns on investment of 35.34 million yuan, with a year-on-year decrease of 15.64%, if accounted
with the equity method.
In the report period, two of the Sino-foreign joint venture companies made the returns on investment
accounting for 10% or higher of the net profit of the Company and they were Dalian Sanyo
Compressor Co., Ltd. and Dalian Sanyo Cold Chain Co., Ltd.
In the report period, if accounted with the equity method, seven of the Sino-foreign joint venture
companies made the income on main business of more than 100 million yuan including three that
made more than 100 million yuan; and three made the net profit of more than 10 million yuan.
In the report period, Dalian Sanyo Compressor kept on promotion of marketing through
technological innovations and the sales income was increased by more than 50%. The eddy
compressor has been put into Russian market successfully, which further improved the structure of
European market. The prices of major raw materials going up and the gross profit on products going
down remarkably led to a year-on-year decrease of the net profit amount.
In the report period, based on the upgraded and improved product performance, Dalian Sanyo Cold
Chain set foot in the service business field on the foundation of existing five major businesses and is
gradually developing from a simple equipment supplier into an all-sided supplier capable of
providing comprehensive solutions for customer. Through careful analysis on typical product
models, they made remarkable achievements in cost reduction through design, which effectively
promoted the cost reduction work in fine management.
Incomes on main Net profit amount
Major share-holding
Leading product businesses (RMB (RMB thousand
company
thousand yuan) yuan)
Dalian Sanyo Compressor Semi-hermetic piston and
1,149,560 64,240
Co., Ltd. eddy compressors
Dalian Sanyo Cold Chain Supermarket showcases, food
1,165,980 25,830
Co., Ltd. systems, etc.
2. Business plan for the second half of the year
In the second half of the year, with the business management ideology “business upgrading and
transformation, quality-oriented benefit”, the Company will further perfect the internal control
system with unceasing improvements in a wide range and lay stress on quality and cost, receivable
accounts and cash flow management to strive for over fulfillment of the annual business indicators
for 2011.
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
5.1 Statement of core business classified according to industry or product (Unit: RMB’0000)
Increase/d Increase/d
ecrease of ecrease of
Classified Increase/decrease of
revenue cost
according to Gross gross profit ratio
Revenue Cost compared compared
industry or profit ratio compared with the
with the with the
product previous year (%)
previous previous
year (%) year (%)
Classified according to industry
Industry Decrease 0.92
94,789.46 76,979.99 18.79% 33.40% 34.94%
refrigeration percentage points
Classified according to product
Refrigeration Decrease 0.92
94,789.46 76,979.99 18.79% 33.40% 34.94%
equipment percentage points
5.2 Particulars about core business classified according to area (Unit: RMB’0000)
Increase/decrease of revenue compared with the
Area Revenue
previous year（％）
Northeast China area 75,147.32 39.60%
East China area 1,100.04 -38.71%
Middle China area 16,867.77 18.50%
5.3 Explanation of reason of material change of core business and its structure
□Applicable √Inapplicable
5.4 Explanation of reason of material change of profitability capability of core business (gross
profit ratio) compared with the previous report period
□Applicable √Inapplicable
5.5 Analysis of reason of material change of operating results and profit structure compared
with the previous report period
□Applicable √Inapplicable
5.6 Application of the raised proceeds
□Applicable √Inapplicable
5.7 The amendment to the business plan for the second half year by Board of Directors
□Applicable √Inapplicable
5.8 Precaution on forecasting that by the beginning of year till the end of the next report period,
the accumulated net profit may be turned into loss or change greatly compared with that in the
same period of last year, and description of the cause
□Applicable √Inapplicable
5.9 Explanation of the “Non-standardized Opinion” of Certified Public Accountants to the
report period by the management
□Applicable √Inapplicable
5.10 Explanation of the “Non-standardized Opinion” of Certified Public Accountants to the
previous year by the management
□Applicable √Inapplicable
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
§6 Significant Events
6.1 Purchase of assets, sale of assets, or assets restructure
6.1.1 Purchase of assets
□Applicable √Inapplicable
6.1.2 Sale of assets
√ Applicable □ Not applicable
Unit: ‘0000 yuan
Net profit
Has the Has the
coming
owners involved
from sale of
Net hip of rights of
that assets Is it the
incomes involve credit or
Counter Sold or for the associat
Selling Trading coming Pricing d assets liabilities
party in disposed Company ed
date price from principle been been
trading assets from the transacti
sale of transfer transferre
year on?
assets red d
beginning
complet completel
to the
ely? y?
selling date
Fixed
through
contact with
several
potential
assignees
25% of the for price
Shenzhen
held shares of inquiry and
Hwaloilee
Thermo King- comparison,
Investment Jun. 9,
Dalian 5,670.90 0.003,732.62 No the internal Yes Yes
Holding 2011
Transport financial
(Group)
Refrigeration evaluation,
Co., Ltd.
Co., Ltd. and
negotiation
with the
assignee
giving the
higher
quotation.
6.1.3 Progress of the matter and its impact on the business results and financial positions of the
Company in the report period after the report on assets restructuring or the announcement on
acquisition of the sold assets was published
□Applicable √ Not applicable
6.2 Important guarantee
□Applicable √Inapplicable
6.3 Current related credits and liabilities
□Applicable √Inapplicable
6.4 Important lawsuit or arbitration
□Applicable √Inapplicable
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
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
Proportion
Amount of Book value at Change of
Security Abbreviation of share Profit and loss
primary the end of owner’s equity
code of security equity in that within period
investment period within period
company
600346 Da Xiangsu 591,715.98 0.29% 7,254,000.00 0.00 1,084,500.00
Xintai
600728 3,000,000.00 0.84% 35,025,900.00 0.00 27,019,425.00
Technology
Total 3,591,715.98 - 42,279,900.00 0.00 28,103,925.00
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
Except the immature condition of being implementation for management share incentive
scheme, Dalian Bingshan Group strictly perform the commitment in share reform.
6.5.5 The profit distribution proposal or plan for converting capital reserve to bonus shares of the
board of directors
□Applicable √ Not applicable
6.5.6 In the report period, the total amount of normal associated transactions between the
Company and associated parties was 223,800 thousand yuan, accounting for 49.73% of the
budgeted amount for the year 2011. This included 112,060 thousand yuan, accounting for
48.72% of the budgeted amount for the year 2011, for purchasing supporting products for
package projects from associated parties, and 111,740 thousand yuan, accounting for 50.79% of
the budgeted amount for the year 2011, from selling supporting parts and components to
associated parties. See the Explanatory Notes to Accounting Statements.
6.6 Index to the information announcements for important matters in the report period
Announce Announcement description Announcement
ment No. date
2011-001 Announcement on marketable shares with trading limited 20110118
conditions in the split share structure reform
2011-002 2010 Annual Report Summary
2011-003 Announcement on the resolutions at the 10th meeting of the 5th
Board of Directors
2011-004 Announcement on the resolutions at the 7th meeting of the 5th
20110415
board of supervisors
2011-005 Notice on convening the 2010 annual general meeting
2011-006 Quarterly Report for the First Quarter, 2011
2011-007 Announcement on the estimation of normal associated transactions
2011-008 Announcement on the resolutions at the 2010 annual general 20110513
meeting
2011-009 Announcement on the resolutions at the meeting of the Board of 20110609
Directors (for Dalengwang)
2011-010 Announcement on the assignment of 25% of the shares of 20110611
Dalengwang held by the Company
2011-011 Announcement on the progress of important matters (for 20110625
Dalengwang)
2011-012 Announcement on 2010 annual dividend distribution 20110629
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
6.7 Activities such as investigation, communication and interview in the report period
Reception Reception Topic in discussion and provided
Reception time Received objects
location form information
Company’s Information about the
Jan. 7, 2011 By telephone CITIC Securities’ researchers
office fundamentals of the Company
Company’s Field Prime Capital Management Co., Ltd.’s Information about the
Jan. 12, 2011
office investigation researchers fundamentals of the Company
Company’s Information about the
Feb. 11, 2011 By telephone Shenyin Wanguo Securities’ researchers
office fundamentals of the Company
Company’s Field Information about the
Feb. 15, 2011 Orient Securities’ researchers
office investigation fundamentals of the Company
Company’s Field Information about the
Feb. 16, 2011 Wanjia Fund’s researchers
office investigation fundamentals of the Company
Company’s Field Information about the
Feb. 25, 2011 Fidelity Fund’s researchers
office investigation fundamentals of the Company
Company’s Field Information about the
Mar. 11, 2011 China AMC’s researchers
office investigation fundamentals of the Company
Company’s Information about the
Apr. 20, 2011 By telephone Bosera Fund’s researchers
office fundamentals of the Company
Company’s Field Information about the
Apr. 26, 2011 Changjiang Securities’ researcher
office investigation fundamentals of the Company
Company’s Information about the
May 10, 2011 By telephone Bosera Fund’s researchers
office fundamentals of the Company
Company’s Field SYWG MU Fund’s, Taikang Asset’s and Information about the
May 12, 2011
office investigation Everbright Securities’ researchers fundamentals of the Company
Company’s Field Information about the
May 17, 2011 CITIC China Securities’ researchers
office investigation fundamentals of the Company
Company’s Information about the
June 02, 2011 By telephone China International Fund’s researchers
office fundamentals of the Company
9
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
§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,
10
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
the cost of the combination is the aggregate cost of the individual transactions; c) The costs directly attributed to
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
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
translated according to exchange rate adopted in actual transactions. On the balance sheet date, the foreign currency
monetary items and foreign currency non-monetary items shall be treated in accordance with the following
provisions:
The foreign currency monetary items shall be translated at the spot exchange rate on balance sheet date, of which
happen during the normal business period shall be recorded into gains and losses at the current period; of which
happen during organization period shall be recorded into long-term deferred expense. The exchange gains or losses
caused by the borrowing belonging to acquiring fixed assets shall be treated by the capitalization of borrowing costs.
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
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
value, shall be recorded into investment income.
⑤ Other financial liabilities
Other financial liabilities are regarded as the initial recognized amount in accordance with the sum between the fair
value and the transaction expense thereof. The Company shall make subsequent measurement on other financial
liabilities on the basis of the post-amortization costs.
(3) Main recognition method for the fair value of the financial assets or financial liabilities
① The quotation in the active market shall be used to recognize the fair value of the financial assets or financial
liabilities existing in active market.
② If the financial instruments do not exist in the active market, the fair value shall be recognized by value appraisal
techniques.
③ As for the financial assets initially obtained of produced at source and the financial liabilities assumed, the fair
value thereof shall be determined on the basis of the transaction price of the market.
(4) Main impairment test method of the financial assets and impairment provision 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
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
for sale and the taxes.
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
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
projects during the construction period, to the extent these are regarded as an adjustment to interest costs.
(3). When construction engineering in process has reached the scheduled state in commission, and has proceeded the
final accounts of completing, validate all the actual expenses as the fixed asset; if the fixed asset has reached the
scheduled state in commission without proceeding the final accounts of completing, validate the cost and adjust the
original provisional estimated value according to the actual costs after finishing the final accounts of completing.
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
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
end of every year, then the asset group shall have the impairment test to measure the recoverable amount, comparing
to the book value, if the recoverable amount of the asset group is less than the book amount, the difference shall first
charge against the book value of the business reputation which is apportioned to the asset group; if the book value of
the business reputation is not enough to charge against the difference, the uncharged balance shall be distributed by
the other assets of the asset group in accordance with the book value.
(4) The recognition of the asset group under impairment test: the related minimum of asset groups that can share the
synergetic benefit brought from merger through the prediction of the Company.
(5) The above impairment losses of assets cannot be reversed as soon as they are recognized.
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;
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
ii. The company could not singly withdraw rescinding the labor relationship or suggestions of reduction.
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
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
There is no correction of the accounting error from previous term in this report period.
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 the report period are as follows:
Relationship with the Applicable income tax
Name of the entity Company rate in 2010
Dalian Bingshan Group Refrigeration Installation
Subsidiary 25%
Co., Ltd.
Dalian Bingshan Air-Conditioning Equipment Co.
Subsidiary 24%
Ltd.
Dalian Bingshan Ryosetsu Quick Freezing
Subsidiary 24%
Equipment Co., Ltd.
Dalian Bingshan Group Sales Co., Ltd. Subsidiary 25%
Dalian Bingshan Metal Processing Co. Ltd. Subsidiary 25%
Dalian Bingshan Guardian Automation Co., Ltd. Subsidiary 15%
Shanghai Bingshan Serial Refrigeration Equipment
Subsidiary 25%
Sales Co., Ltd.
Wuhan New World Refrigeration Industrial Co.,
Subsidiary 15%
Ltd. (“WNWRI”)
Wuhan New World Refrigeration Air Conditioner
Subsidiary 25%
Engineering Co. Ltd.
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 2011 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.
18
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
Shareh Voting
No Catego Registere Business Registered Minority
Name Business scope Investment A olding right Consolidated B C
. ries d address nature capital interest
（%） （%）
Dalian Bingshan Group Installation and
Refrigeration Installation testing of
1 Ltd. Dalian Installation RMB20,040,000 RMB20,040,000 100 100 Yes
Co. Ltd . (“Installation refrigeration
Company”) equipment
Dalian Bingshan Group Sale of refrigeration
2 Sales Co. Ltd . (“Sales Ltd. Dalian Trading RMB18,000,000 equipment RMB16,200,000 90 90 Yes 4,123,328.48
Company”)
Dalian Bingshan Air- Manufacture and
Conditioning Equipment sale of accessories of
3 Ltd. Dalian Manufacturing JPY700,000,000 JPY490,000,000 70 70 Yes 19,589,604.09
Co. Ltd. (“Bingshan Air- refrigeration
Conditioning”) equipment
Dalian Bingshan Metal Manufacturing Process and sale of
4 Processing Co. Ltd. Ltd. Dalian USD2,350,000 metal punching parts USD1,509,875 64.25 64.25 Yes 8,105,967.05
(“Metal Processing”)
Dalian Bingshan Guardian Manufacturing Research, design and
5 Automation Co., Ltd. Ltd. Dalian GBP210,000 develop refrigerator GBP126,000 60 60 Yes 2,860,727.30
automation parts
Dalian Bingshan Ryosetsu Manufacturing Manufacture and
6 Quick Freezing Equipment Ltd. Dalian USD1,000,000 sale of deep-freezing USD700,000 70 70 Yes 2,746,972.42 103,142.68
Co., Ltd. equipment
Shanghai Bingshan Serial ale and installation
7 Refrigeration Equipment Ltd. Shanghai Trading RMB2,000,000 of refrigeration RMB900,000 45 45 Yes 91,310.50 444,513.35
Sales Co. Ltd . ① equipment
Design, manufacture,
sale, installation and
Wuhan New World test of screw type
8 Refrigeration Industrial Co. Ltd. Wuhan Manufacturing RMB30,000,000 refrigeration RMB17,980,400 51 51 Yes 54,354,072.03
Ltd. (“WNWRI”) compressor and
refrigeration
equipment
Wuhan New World Design, installation,
Refrigeration Air test and repair of
9 Conditioner Engineering Ltd. Wuhan Installation RMB8,000,000 refrigeration RMB400,000 5 100 Yes
Co. Ltd.② equipment
Manufacture of
metal founding parts
and pipe parts;
Dalian Daleng Metal
10 Ltd. Dalian Manufacturing RMB20,000,000 process of metal RMB20,000,000 100 100 Yes
Technology Co. Ltd.
machine
parts(Preparing to
construct)
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 30-06-2011 31-12-2010
Cash on hand 150,786.82 181,232.43
Cash in bank 625,182,726.66 490,478,655.06
Others 225,000.00 1,115,688.22
Total 625,558,513.48 491,775,575.71
Particular about foreign monetary funds included in the cash in bank:
30-06-2011 31-12-2010
Foreign
Original RMB Original RMB
currency Exchange rate Exchange rate
currency equivalent currency equivalent
USD 580,681.63 6.4716 3,757,939.23 262,635.45 6.6227 1,739,357.43
JPY 162,011.00 0.080243 13,000.25 301,772.00 0.08126 24,522.00
HKD 230.51 0.83162 191.70 230.49 0.85093 196.13
EUR 15,020.70 9.3612 140,611.78 15,013.11 8.8065 132,216.68
Total 3,911,742.96 1,896,292.24
2 Notes receivable
Item 30-06-2011 31-12-2010
Bank acceptance 35,447,521.07 36,046,063.81
Trade acceptance 15,669,386.57 20,433,824.95
Total 51,116,907.64 56,479,888.76
19
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
(1)There is no pledged notes receivable at the end of report period.
(2) The top five notes receivable endorsed but not matured:
Expiration
No. Company Issued date Amount Notes
date
XCMG Construction Machinery Co.,
1 2011-01-13 2011-07-13 3,000,000.00 Bank acceptance
Ltd. Technology Branch
Decoration Engineering Co., Ltd.
2 2011-01-26 2011-07-26 1,500,000.00 Bank acceptance
Shanghai Xu Bo
Beijing Haotong Hengye Technology
3 2011-06-10 2011-12-10 1,500,000.00 Bank acceptance
Co., Ltd.
Yingsheng Materials Co., Ltd., Handan
4 2011-03-29 2011-09-29 1,460,000.00 Bank acceptance
City
Henan Shuanghui Investment &
5 2011-04-28 2011-07-28 1,422,000.00 Bank acceptance
Development Co., Ltd.
3 Accounts receivable
(1) Classified by account nature
30-06-2011 31-12-2010
Balance Provision for doubtful debt Balance Provision for doubtful debt
Category
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Receivables that are
individually
significant
Receivables not
individually 561,453,999.26
100 92,286,074.58 16.44 474,587,436.54 100 83,611,169.48 17.62
significant but with
high risk in groups
Other insignificant
items
Total 561,453,999.26 100 92,286,074.58 16.44 474,587,436.54 100 83,611,169.48 17.62
The aging of accounts receivable and related provisions for bad debts
30-06-2011 31-12-2010
Account ages Proportion Provision for bad Proportion Provision for bad
Amount Amount
(%) debts (%) debts
Within1 year 52.96 254,108,672.22 53.54 12,705,433.15
297,340,389.84 14,867,019.48
1 to 2 years 24.67 110,397,132.95 23.26 14,769,793.31
138,502,317.12 13,850,231.71
2 to 3 years 11.42 56,347,143.51 11.87 17,535,200.06
64,134,135.92 19,240,240.79
3 to 4 years 4.80 26,033,269.60 5.49 13,006,977.12
26,929,439.77 13,464,719.90
4 to 5 years 3.28 12,317,512.08 2.60 10,210,059.66
18,419,269.54 14,735,415.63
Over 5 years 2.87 15,383,706.18 3.24 15,383,706.18
16,128,447.07 16,128,447.07
Total 561,453,999.26 100 92,286,074.58 474,587,436.54 100 83,611,169.48
20
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
(2) There were two receivable accounts of the Company that have been written off before this report period but
recovered in this period:
Accumulative
Receivable amount of provision
Why they were written back Basis for the original provision for
account for bad debts that has Recovered amount
or recovered bad debts
details been drawn before
recovery
The customer refused to pay the
The revenue was charged
Money for money for goods for the need to
off through amendment to 2,825,310.00 2,825,310.00
goods correct, leading to impossibility to
the contract.
recover the account.
(3) During the report period, there is no receivables being recovered by debts reconstruction.
(4)The write-off of accounts receivable
Name of company The nature of accounts receivable Written off Reason Related party transaction
Clients Sale of goods 4,739,486.43 ① No
①Description of writing off: The Company wrote off the receivable accounts mainly due to: the other party’s
company was closed down or went into bankruptcy; the lawsuit has been brought but there was no result in
enforcement; the account has been in arrears for a prolonged period of time, but the amount was less; the customer
refused to pay the money for goods for the field cost produced, leading to impossibility to recover the account.
(5) No arrearage from the shareholders holding over 5% (including 5%) of the equity of the Company existed in the
balance of accounts receivable.
(6) The first five arrearage entities listed in the balance of accounts receivable
The relationship with
Company Amount Age Proportion
the Company
Client 1 Non-affiliated 11,242,693.00 2 to 3 years 2%
Client 2 Non-affiliated 11,033,590.40 Less than 1 year 1.97%
Client 3 Non-affiliated 9,971,082.00 Less than 1 year 1.78%
Client 4 Non-affiliated 9,434,008.12 Less than 1 year 1.68%
Client 5 Non-affiliated 8,256,382.69 Less than 1 year 1.47%
Total 49,937,756.21 8.9%
(7) The amount of accounts receivable due from related companies are RMB 20,342,173.10, 3.62% of total accounts
receivable. Please refer to the Ⅵ 6 of the notes.
(8) 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
30-06-2011 31-12-2010
Account ages
Amount Proportion (%) Amount Proportion (%)
Within1 year 56,935,553.35 94.56 24,523,487.45 93.19
1 to 2 years 3,276,444.29 5.44 1,790,906.40 6.81
Total 60,211,997.64 100 26,314,393.85 100
(2) The first five arrearage entities listed in the balance of accounts paid in advance
The relationship
Company Amount Age Reasons
with the Company
Client 1 Non-affiliated 2,874,000.00 Less than 1 year Prepayment for goods
Client 2 2,869,200.00 Less than 1 year Prepayment for goods
Non-affiliated
Client 3 2,444,845.03 Less than 1 year Prepayment for goods
Non-affiliated
Client 4 2,295,000.00 Less than 1 year Prepayment for goods
Non-affiliated
Client 5 1,559,231.56 Less than 1 year Prepayment for goods
Non-affiliated
Total 12,042,276.59
21
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
(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 310,095.6, 0.52% of total accounts
paid in advance. Please refer to the Ⅵ 6 of the notes.
5 Dividends receivable
Current year Current year
Any
Items 31-12-2010 disposal 30-06-2011 Reasons
addition impairment
Dividends receivable, within 1 year
Included:
27,875.00 27,875.00
Wuhan Steel and Electricity Co., Ltd.
Not due to
Dalian Sanyo Refrigeration Co., Ltd. 7,200,000.00 3,600,000.00 3,600,000.00 No
payment date
Not due to
Dalian Sanyo Compressor Co., Ltd. 36,000,000.00 10,800,000.00 25,200,000.00 No
payment date
Not due to
Guotai Junan Securities Co., Ltd. 3,009,889.50 3,009,889.50 No
payment date
Total 27,875.00 46,209,889.50 14,427,875.00 31,809,889.50
6 Other accounts receivable
(1) Classified by account nature
30-06-2011 31-12-2010
Balance Provision for doubtful debt Balance Provision for doubtful debt
Item
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Receivables that are
individually significant
Receivables not
individually significant but 25,628,464.77 100 3,737,949.04 14.59 21,358,474.82 100 2,656,780.92 12.44
with high risk in groups
Other insignificant items
Total 25,628,464.77 100 3,737,949.04 14.59 21,358,474.82 100 2,656,780.92 12.44
The aging of other accounts receivable and related provisions for bad debts
30-06-2011 31-12-2010
Account age Provision for bad Proportion Provision for bad
Amount Proportion (%) Amount
debts (%) debts
Within1year 17,304,922.29 67.52 865,246.12 14,333,723.65 67.11 709,186.19
1 to 2 years 3,300,458.45 12.88 330,045.85 3,880,943.04 18.17 388,094.31
2 to 3 years 2,837,871.50 11.07 851,361.45 362,039.17 1.70 108,611.76
3 to 4 years 282,092.52 1.10 141,046.26 2,642,162.20 12.37 1,321,081.10
4 to 5 years 1,764,353.25 6.89 1,411,482.60 48,996.00 0.23 39,196.80
Over 5 years 138,766.76 0.54 138,766.76 90,610.76 0.42 90,610.76
Total 25,628,464.77 100 3,737,949.04 21,358,474.82 100 2,656,780.92
(2) There is no amount of provision for bad debts written back during the report period.
(3) During the report period, there is no other account receivable being recovered by debts reconstruction.
22
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
(4) There is no other accounts receivable being written off.
(5) There is no balance of other accounts receivable due from the shareholders holding over 5% (including 5%) of the
equity of the Company.
(6) The first five arrearage entities of other accounts receivable
The relationship
Company Amount Age Proportion
with the Company
Client 1 Non-affiliated 1,432,000.00 1-2 years 5.59
Client 2 Non-affiliated Less than 1 year
1,117,300.00 4.36
Client 3 Non-affiliated Less than 1 year
1,000,000.00 3.90
Client 4 Non-affiliated Less than 1 year
690,000.00 2.69
Client 5 Non-affiliated 1-2 years
300,000.00 1.17
Total 4,539,300.00 17.71
(7) There is no other accounts receivable due from related companies.
(8) There is no other accounts receivable being ended reorganization or being negotiated during the report period.
7 Inventories
(1) Cost
30-06-2011 31-12-2010
Items
Provision for Provision for
Book balance impairment of Book value Book balance impairment of Book value
inventories inventories
Raw materials 71,625,859.49 71,625,859.49
91,392,417.82 91,392,417.82
Materials on Consignment 2,884,780.86 2,884,780.86
6,005,884.49 6,005,884.49
for further processing
Low-value 141,534.80 141,534.80
245,951.52 245,951.52
consumptions
Work-in-progress 93,092,823.42 93,092,823.42
102,961,994.00 102,961,994.00
Self-manufactured semi- 30,800,994.99 30,800,994.99
30,318,014.99 30,318,014.99
finished products
Finished goods 105,069,920.70 2,118,020.82 102,951,899.88 133,751,488.66 2,118,020.82 131,633,467.84
Constructing projects 16,842,656.62 16,842,656.62
24,941,552.96 24,941,552.96
Total 2,118,020.82 349,140,138.84 2,118,020.82 347,022,118.02
360,935,736.48 358,817,715.66
(2) Provision for impairment of inventories
Current year
Current year
Item 31-12-2010 disposal 30-06-2011
addition
Reversal Written-off
Finished goods 2,118,020.82 2,118,020.82
Total 2,118,020.82 2,118,020.82
23
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
(3) Details of provision for impairment of inventories
Proportion of reversal of
The bases of provision for
Item Reasons for reversal provision for impairment of
impairment of inventories
inventories to closing balance
The book balance is higher than
Finished goods
recoverable amount.
8 Financial assets available for sale
Item 30-06-2011 31-12-2010
Notes available-for-sale
Equity instruments available-for-sale 42,279,900.00 5,808,000.00
Others
Total 42,279,900.00 5,808,000.00
The Company’s available-for-sale financial assets are: its held marketable A-shares that were relieved from the
trading limited condition on Jul. 11, 2007 – the equity investment to Dalian Rubber & Plastics Machinery Co., Ltd.,
with 600,000 shares remaining; and the marketable A-shares listed on Jun. 10, 2011 – the equity investment to
Suntek Technology Co., Ltd., with 2.73 million shares held by the Company.
9、Investment to Associates and Joint ventures
24
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
Legal Sharehol Voting 30-06-2011
No Registere Business Registered 30-06-2011 30-06-2011 Total Income of Net profit of
Name Categories represent ding right Total net
. d address nature capital Total assets Total liabilities 2011.01-06 2011.01-06
person （%） （%） assets
ⅠAssociates
Dalian Bingshan –
P&A Recreation Sino-foreign
1 Dalian Yang Bin Installation USD250,000 50% 50% 17,808,727.67 12,681,544.71 5,127,182.96 13,563,829.84 -364,527.51
Development joint venture
Engineering Co., Ltd.
Dalian Jiale Vending
Sino-foreign
2 Machine Operation Dalian Zhang He Trading JPY500,000,000 50% 50% 29,750,505.25 1,664,329.63 28,086,175.62 8,561,608.89 -509,412.94
joint venture
Co., Ltd.
ⅡJoint venture
Dalian Bingshan Group
1 Import & Export Co. , Ltd Dalian Zhang He Trading RMB5,000,000 24% 24% 93,057,823.23 52,803,149.94 40,254,673.29 101,932,243.81 2,519,834.41
Ltd.
Dalian Grand Ocean
Thermo King Sino-foreign Manufactu
2 Dalian Zhang He ring USD850,000 40% 40% 25,933,386.70 16,147,516.53 9,785,870.17 7,267,851.17 -847,495.12
Transport Refrigeration joint venture
Engineering Co., Ltd
Dalian Sanyo Sino-foreign Watanabe Manufactu
3 Dalian ring JPY2,000,000,000 40% 40% 479,615,310.45 222,995,805.85 256,619,504.60 253,269,319.31 6,348,307.68
Refrigeration Co., Ltd. joint venture Yoshio
Dalian Honjo Chemical Sino-foreign Honjo Manufactu
4 Dalian ring JPY260,000,000 30% 30% 35,577,627.27 6,789,944.78 28,787,682.49 20,450,511.02 1,503,301.79
Co., Ltd. joint venture Yukinovi
Dalian Sanyo Cold- Sino-foreign Watanabe Manufactu
5 Dalian ring JPY4,650,000,000 40% 40% 1,537,698,522.00 1,033,145,935.58 504,552,586.42 1,165,980,101.96 25,833,989.70
chain Co., Ltd joint venture Yoshio
Grand Ocean-showa
Sino-foreign Manufactu
6 Auto Air Conditioning Dalian Takumi Ishii ring USD15,117,890 20% 20% 257,433,394.41 77,643,304.15 179,790,090.26 257,257,779.45 34,350,283.20
joint venture
(Dalian) Co., Ltd.
Dalian Sanyo Sino-foreign Watanabe Manufactu
7 Dalian ring JPY6,200,000,000 40% 40% 1,802,643,268.57 1,031,293,165.25 771,350,103.32 1,149,563,785.01 64,243,304.06
Compressor Co., Ltd. joint venture Yoshio
Dalian Sanyo Meica Sino-foreign Manufactu
8 Dalian Zhang He ring JPY400,000,000 30% 30% 163,799,325.03 74,664,558.52 89,134,766.51 129,873,963.00 5,681,665.35
Electronics Co., Ltd. joint venture
Dalian Sanyo Air- Sino-foreign Watanabe Manufactu
9 Dalian ring JPY4,535,000,000 40% 40% 2,020,885,068.81 1,647,607,323.73 373,277,745.08 1,015,033,293.31 -20,036,132.45
conditioner Co., Ltd. joint venture Yoshio
Dalian Sanyo Home Sino-foreign Manufactu
10 Dalian Zhang He ring JPY600,000,000 40% 40% 121,095,807.79 104,425,136.35 16,670,671.44 43,227,724.46 -14,177,022.87
Appliance Co., Ltd. joint venture
Beijing Huashang
Bingshan Refrigeration Sino-foreign
11 Beijing Yang Bin Trading RMB1,000,000 49% 49% 13,041,198.89 11,997,813.67 1,043,385.22 4,970,967.65 -433,675.40
and Air-conditioning joint venture
Machinery Co., Ltd.
Dalian Bingshan H2O3
Sino-foreign Mu Manufactu
12 Environmental Dalian ring USD1,000,000 33% 33% 1,597,848.55 65,912.85 1,531,935.70
joint venture Chuanjiang
Solution Co. , Ltd.
Dalian Fuji Bingshan
Sino-foreign Asahi Manufactu
13 Vending Machine Co., Dalian ring JPY1,800,000,000 49% 49% 168,564,343.66 54,558,319.99 114,006,023.67 79,821,589.17 4,267,961.93
joint venture Hideehiko
Ltd.
Dalian Sanyo High- 25
Sino-foreign Manufactu
14 Efficient Refrigeration Dalian Zhang He ring RMB80,000,000 25% 25% 145,600,325.65 47,234,143.08 98,366,182.57 121,106,998.73 4,783,946.36
joint venture
System Co., Ltd.
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
10、Long-term equity investments
Provision for
Calculatio Shareholdin Voting right Provision for Cash dividend of the
No. Name Initial cost Beginning balance Changes Ending balance impairment of the
n method g（%） （%） impairment current period
current period
Dalian Bingshan –
P&A Recreation Equity
1 1,034,675.00 2,789,995.19 -182,263.76 2,607,731.43 50 50
Development method
Engineering Co., Ltd.
Dalian Jiale Vending
Equity
2 Machine Operation 18,750,000.00 14,297,794.27 -254,706.47 14,043,087.80 50 50
method
Co., Ltd.
Dalian Bingshan
Equity
3 Group Import & 1,200,000.00 8,704,365.95 604,760.26 9,309,126.21 24 24
method
Export Co. , Ltd.
Thermo King-Dalian
Equity
4 Transport Refrigeration 6,313,174.25 29,083,982.75 -29,083,982.75 25 25 22,143,224.75
method
Co., Ltd.
Dalian Grand Ocean
Thermo King Equity
5 2,871,708.00 4,253,346.13 -338,998.05 3,914,348.08 40 40
Transport Refrigeration method
Engineering Co., Ltd
Dalian Sanyo Equity
6 40,606,709.20 107,170,589.17 -5,041,575.39 102,129,013.78 40 40 7,200,000.00
Refrigeration Co., Ltd. method
Dalian Honjo Equity
7 3,908,911.50 9,428,153.30 -818,908.00 8,609,245.30 30 30 1,242,839.10
Chemical Co., Ltd. method
Dalian Sanyo Cold- Equity
8 134,658,753.75 203,902,522.89 1,506,908.21 205,409,431.10 40 40 8,000,000.00
chain Co., Ltd method
Grand Ocean-showa
Equity
9 Auto Air Conditioning 24,402,234.58 41,487,961.42 -5,529,943.36 35,958,018.06 20 20 12,400,000.00
method
(Dalian) Co., Ltd.
Dalian Sanyo Equity
10 176,953,841.88 318,501,399.43 -12,358,464.11 306,142,935.32 40 40 36,000,000.00
Compressor Co., Ltd. method
Dalian Sanyo Meica Equity
11 9,649,590.00 24,381,787.12 1,534,049.64 25,915,836.76 30 30
Electronics Co., Ltd. method
Dalian Sanyo Air- Equity
12 124,728,240.00 99,851,858.86 -8,014,452.98 91,837,405.88 40 40
conditioner Co., Ltd. method
Dalian Sanyo Home Equity
13 19,666,212.00 15,280,162.21 -3,585,762.21 11,694,400.00 40 40 11,694,400.00
Appliance Co., Ltd. method
Beijing Huashang
Bingshan Refrigeration Equity
14 490,000.00 723,759.70 -212,500.95 511,258.75 49 49
and Air-conditioning method
Machinery Co., Ltd.
26
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
Provision for
Calculatio Shareholdin Voting right Provision for Cash dividend of the
No. Name Initial cost Beginning balance Changes Ending balance impairment of the
n method g（%） （%） impairment current period
current period
Dalian Bingshan H2O3
Equity
15 Environmental 2,731,377.50 505,538.78 505,538.78 33 33
method
Solution Co. , Ltd.
Dalian Fuji Bingshan
Equity
16 Vending Machine Co., 66,416,364.00 53,771,650.25 2,091,301.35 55,862,951.60 49 49
method
Ltd.
Daliian Sanyo High-
Equity
17 Efficient Refrigeration 20,000,000.00 23,416,729.32 1,100,307.66 24,517,036.98 25 25
method
System Co., Ltd.
Zibo Electric Traction
Cost
18 Machine Group Co., 849,000.00 849,000.00 849,000.00 0.76 0.76 849,000.00 ,
method
Ltd.
Liaoning Mec Group Cost
19 1,020,000.00 1,020,000.00 1,020,000.0 2 2
Co., Ltd. method
Suntek Technology Cost
20 3,000,000.00 3,000,000.00 -3,000,000.00 0.841 0.841 -3,000,000.00
Co., Ltd. method
Guotai Junan Cost
21 30,098,895.00 30,098,895.00 30,098,895.00 0.64 0.64 1,582,164.89 3,009,889.50
Securities Co., Ltd. method
Guotai Junan
Cost
22 Investment 3,057,316.00 3,057,316.00 3,057,316.00 0.22 0.22 2,688,605.91
method
Management Co., Ltd.
Thermo King
Container Temperature Cost
23 11,207,806.00 3,310,806.00 7,897,000.00 11,207,806.00 17.8 17.8
Control (Suzhou) Co., method
Ltd.
Liaoning Enterprises
Cost
24 United Industry 105,000.00 105,000.00 105,000.00 4.2 4.2 105,000.00
method
Company
Dalian Bingshan
Cost
25 Group Materials 250,000.00 250,000.00 250,000.00 5 5
method
Trading Co., Ltd.
Shenyang Sanyo Air- Cost
26 34,098,618.72 34,098,618.72 34,098,618.72 10 10 9,620,025.72
conditioner Co., Ltd. method
Wuhan Steel and Cost
27 1,315,142.50 1,315,142.50 1,315,142.50 0.056 0.056
Electricity Co., Ltd. method
Total 1,034,656,374.96 -53,687,230.91 980,969,144.05 26,539,196.52 -3,000,000.00 89,995,953.35
(1) In the report period, the Company signed the Equity Transfer Agreement with Ingersoll-Rand (China) Investment
Co., Ltd. and Shenzhen Hwaloilee Investment Holding (Group) Co., Ltd. on Jun. 9, 2011 to transfer both 25% of the
equity of Dalengwang Transport Cooler Co., Ltd. and 75% of the equity of Ingersoll-Rand (China) Investment Co.,
Ltd. held by the Company to Shenzhen Hwaloilee Investment Holding (Group) Co., Ltd. The necessary business
alteration registration has been completed and the Company has received the amount on the equity transfer in full.
(2) The Company’s associated company – Dalian Bingshan Water Environment Equipment Co., Ltd. convened the
board meeting in the secone half of 2010 and adopted the resolution: to terminate the operating activities of Dalian
Bingshan Water Environment Co., Ltd. for liquidation. Now the liquidation is in progress.
27
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
11 Fixed assets
(1) Fixed assets details
Current year Current year
31-12-2010 30-06-2011
Item
addition disposal
1. Original value 830,471,724.28 7,454,898.32 946,895.01 836,979,727.59
Including: Buildings 267,460,261.09 498,665.40 267,958,926.49
Machinery 521,728,834.49 5,347,968.11 282,824.84 526,793,977.76
Vehicles 24,504,528.68 1,251,032.96 501,861.52 25,253,700.12
Other equipments 16,778,100.02 357,231.85 162,208.65 16,973,123.22
2. Accumulated depreciation 464,648,461.11 16,746,611.41 756,546.16 480,638,526.36
Including: Buildings 95,679,350.33 3,392,323.07 99,071,673.40
Machinery 344,802,563.53 11,750,059.82 253,888.01 356,298,735.34
Vehicles 12,024,583.57 1,062,938.87 365,911.75 12,721,610.69
Other Equipments 12,141,963.68 541,289.65 136,746.40 12,546,506.93
3.Net book value 365,823,263.17 356,341,201.23
Including: Buildings 171,780,910.76 168,887,253.09
Machinery 176,926,270.96 170,495,242.42
Vehicles 12,479,945.11 12,532,089.43
Other Equipments 4,636,136.34 4,426,616.29
4.Provision for impairment 7,199,231.65 7,199,231.65
Including: Buildings
Machinery 7,199,231.65 7,199,231.65
Vehicles
Other Equipments
5.Fixed assets net 358,624,031.52 349,141,969.58
Including: Buildings 171,780,910.76 168,887,253.09
Machinery 169,727,039.31 163,296,010.77
Vehicles 12,479,945.11 12,532,089.43
Other Equipments 4,636,136.34 4,426,616.29
(2) All the accumulated depreciation increased during the current period was depreciation of the current period.
(3) The original value of fixed assets RMB 4,870,039.45 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 Bingshan Metal Processing Co. Ltd. borrowed RMB 3,000,000 from bank
and mortgaged with its building and land use rights.
28
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
(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 Current year Current year Percentage of
Budget 31-12-2010 30-06-2011 Sources of funds completion
projects addition decrease
Internally
Buildings 25,500,000.00 11,020,403.00 7,498,294.00 18,518,697.00 72%
generated fund
Internally
Machinery 30,000,000.00 9,944,956.70 5,837,377.89 4,870,039.45 10,912,295.14 36%
generated fund
Internally
Others 160,000.00 56,410.26 56,410.26 35%
generated fund
Total 20,965,359.70 13,392,082.15 4,870,039.45 29,487,402.40
(1) No interests capitalized during the current period.
(2) The amount of construction in progress RMB 4,870,039.45 was transferred to fixed assets.
13 Intangible assets
(1) Intangible assets details
Current year Current year
Item 31-12-2010 30-06-2011
addition disposal
1.Original cost
Land use rights 188,665,398.39 188,665,398.39
Non-patented technology 515,224.41 515,224.41
Others 5,157,494.99 42,750.00 5,200,244.99
Total 194,338,117.79 42,750.00 194,380,867.79
2.Amortization
Land use rights 17,968,974.13 1,886,652.78 19,855,626.91
Non-patented technology 515,224.41 515,224.41
Others 1,565,255.29 188,533.48 1,753,788.77
Total 20,049,453.83 2,075,186.26 22,124,640.09
3. .Net book value
Land use rights 170,696,424.26 168,809,771.48
Non-patented technology
Others 3,592,239.70 3,446,456.22
Total 174,288,663.96 172,256,227.70
4.Provision for impairment
Land use rights
Non-patented technology
Others
Total
5. .Net value
Land use rights 170,696,424.26 168,809,771.48
Non-patented technology
Others 3,592,239.70 3,446,456.22
Total 174,288,663.96 172,256,227.70
29
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
(2) RMB 2,075,186.26 yuan of intangible assets was amortized in this period.
(3) As the intangible assets without book value was higher than the recoverable amount by the end of the period, no
provisions for impairment of intangible assets were drawn.
(4) Please refer to the Ⅴ 11 of the notes for land use rights mortgaged.
14 Long-term prepayments
Item Current year Current year
31-12-2010 30-06-2011
addition disposal
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 895,873.64 69,239.16 965,112.80
Total 895,873.64 69,239.16 965,112.80
3. .Net book value
Employee dormitory use right 3,258,475.26 3,189,236.10
Total 3,258,475.26 3,189,236.10
Employee dormitory use right is amortized during 30 years.
15 Deferred tax assets/Deferred tax liabilities
Item 30-06-2011 31-12-2010
Deferred tax assets
Provision for bad debts 11,980,279.03 9,996,657.26
Provision for obsolete inventory 529,505.21 529,505.21
Impairment provision of fixed assets 1,799,807.91 1,799,807.91
Employee’s compensation payable 533,196.34 695,032.03
Total 14,842,788.49 13,021,002.41
Deferred tax liabilities
Fair value changes of financial assets
9,672,046.00 1,304,071.00
available for sale
Total 9,672,046.00 1,304,071.00
(2)Temporary differences
Items Amount
Provision for bad debts 54,563,441.35
Provision for obsolete inventory 2,118,020.82
Impairment provision of fixed assets 7,199,231.65
Deductible expenses differences 3,554,642.27
Fair value changes of financial assets available for sale 38,688,184.00
Total 106,123,520.09
30
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
16、Provision for impairment
Current year
Current year
Items 31-12-2010 disposal 30-06-2011
addition
Reversal Written off
1.Bad debts provision 86,267,950.40 14,495,559.65 4,739,486.43 96,024,023.62
2.Provision for obsolete inventories 2,118,020.82 2,118,020.82
3.Provision for the impairment of financial assets
available for sale
4.Provision for the impairment of held to maturity
investments
5.Provision for the impairment of long-term equity
29,539,196.52 3,000,000.00 26,539,196.52
investments
6.Provision for the impairment of investing property
7.Provision for the impairment of fixed assets 7,199,231.65 7,199,231.65
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 125,124,399.39 14,495,559.65 7,739,486.43 131,880,472.61
17 Short-term loans
Terms of borrowing 30-06-2011 31-12-2010
Credit loan 50,000,000.00
Mortgage loan 13,000,000.00 13,000,000.00
Total 13,000,000.00 63,000,000.00
(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. Dalian Bingshan Metal Processing Co. Ltd. borrowed RMB
3,000,000 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 30-06-2011 31-12-2010
Bank acceptance notes 81,689,210.16 109,524,668.52
Trade acceptance notes 3,377,358.31
Total 81,689,210.16 112,902,026.83
31
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
19 Accounts payable
30-06-2011 31-12-2010
Ages
Amount Proportion (%) Amount Proportion (%)
Within1 year 554,256,492.25 96.97 431,993,991.12 95.51
1 to 2 years 8,776,136.47 1.54 10,687,463.21 2.36
2 to 3 years 2,290,290.24 0.40 4,330,324.28 0.96
3 to 4 years 1,979,521.65 0.35 1,434,753.13 0.32
4 to 5 years 1,146,024.16 0.20 868,107.47 0.19
Over 5 years 3,133,618.52 0.54 2,986,293.76 0.66
Total 571,582,083.29 100 452,300,932.97 100
(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 36,824,369.84, 6.44% of total accounts
payable. Please refer to the Ⅵ 6 of the notes.
20 Accounts received in advance
30-06-2011 31-12-2010
Ages
Amount Proportion(%) Amount Proportion(%)
Within1 year 253,089,172.83 73.23 222,517,028.66 85.81
1 to 2 years 61,121,670.99 17.68 31,137,925.82 12.01
2 to 3 years 27,366,178.71 7.92 2,775,326.33 1.07
3 to 4 years 2,234,609.53 0.65 1,324,837.92 0.51
4 to 5 years 730,544.77 0.21 554,283.31 0.21
Over 5 years 1,068,800.00 0.31 1,016,640.95 0.39
Total 345,610,976.83 100 259,326,042.99 100
(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 2,589,414.18, 0.75% of total
accounts received in advance. Please refer to the Ⅵ 6 of the notes.
21 Employee’s compensation payable
Current year Current year
Item 31-12-2010 30-06-2011
addition reduction
1.Wages and salaries, bonuses,
22,147,566.92 86,620,807.99 97,032,792.82 11,735,582.09
allowances and subsidies
2.Staff welfare 18,373,722.32 4,003,407.64 3,378,628.87 18,998,501.09
3.Social insurance 18,916,503.51 18,916,503.51
Including：①Medical insurance 4,179,109.37 4,179,109.37
②Retirement pension 10,779,308.42 10,779,308.42
③Unemployment insurance 1,077,846.16 1,077,846.16
④injury insurance premium 565,359.49 565,359.49
⑤Pregnancy insurance 393,493.98 393,493.98
⑥Housing subsidies 307,211.84 307,211.84
⑦Heating subsidies 1,611,796.25 1,611,796.25
⑧Total insurance 2,378.00 2,378.00
4. Housing fund 1,176,502.14 8,727,009.16 8,800,899.90 1,102,611.40
5.Labor union fee and employee 1,255,300.62 1,568,817.11 1,636,697.29 1,187,420.44
education fee
32
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
6.Non-currency welfare 23,623.00 23,623.00
7. Redemption for terminations of labor 36,886.80 36,886.80
contract
8.Other 115,001.00 115,001.00
Total 42,953,092.00 120,012,056.21 129,941,033.19 33,024,115.02
There was no amount delay paid at the end of the report period.
22 Taxes payable
Item 30-06-2011 31-12-2010
Value-added tax 8,416,995.52 -3,995,525.35
Business tax 1,777,003.84 995,937.93
City maintenance and construction tax 934,362.84 171,871.68
Enterprise income tax 15,059,049.31 4,094,271.55
Individual income tax 1,204,868.33 908,112.30
Stamp duty 52,778.40 199,994.41
Withholding business tax for foreign owners 21,024.84
Withholding income tax for foreign owners 236,566.89 277,169.59
Extra-charges for education 388,471.79 62,017.77
Extra-charges for local education 270,435.31 64,848.29
Water project fund/River route maintenance fee 704,945.60 531,299.03
Safeguard fund for disables 384.00 468.00
Embankment tax 1,576.81 15,611.08
Price adjustment fund 2,824.88 16,772.31
Total 29,050,263.52 3,363,873.43
23 Dividend payable
Name of investors 30-06-2011 31-12-2010
Legal person shares 59,197,629.49 1,345,383.24
Total 59,197,629.49 1,345,383.24
The amount of dividend payable at the end of the report period included dividend payable to Dalian Bingshan Group
Co. Ltd. RMB 13,428,352.45 and dividend payable to Japan Sanyo Electricity Co., Ltd. RMB 3,000,000.00 which
hold over 5% (including 5%) of the equity of the Company.
24 Other accounts payable
30-06-2011 31-12-2010
Ages
Amount Proportion(%) Amount Proportion(%)
Within 1 year 22,780,035.49 48.06 21,719,833.44 46.77
1 to 2 years 5,315,029.95 11.21 6,063,503.23 13.06
2 to 3 years 1,317,275.17 2.78 2,964,914.72 6.39
3 to 4 years 2,554,142.72 5.39 5,773,390.62 12.43
4 to 5 years 5,738,584.62 12.11 5,622,147.58 12.11
Over 5 years 9,697,836.75 20.45 4,291,212.92 9.24
Total 47,402,904.70 100 46,435,002.51 100
(1) There were RMB 11,722,170.81 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 12,833,310.49, 27.07% 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.
33
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
25 Other non-current liabilities —Deferred income
Item 30-06-2011 31-12-2010
Contribution to subsidiary company
557,000.00 1,114,000.00
relocation
Subsidy fund for highly effective heat pump 292,550.50 585,101.00
and related system
Total 849,550.50 1,699,101.00
For the above deferred incomes, RMB 849,550.50 yuan was carried forward in the first half of 2011 as the schedule
for transferring it into the profit statement.
26 Long term loans
Creditor Terms of borrowing Borrowed date due date Interest Rate 30-06-2011
Dalian Rongda Loan of national
2010.01.13 2015.01.12 2.55% 10,200,000.00
Investment Co., Ltd. treasury bond
Total 10,200,000.00
The Company signed loan contract with Dalian Rongda Investment Co., Ltd. on January 13, 2010, and total amount
of the loan RMB10,200,000.00 would be used on agriculture products serial refrigeration equipment reformation
project and related system hi-tech industrialized demonstration project.
27 Other non-current liabilities —Deferred income
Item 30-06-2011 31-12-2010
Subsidy fund for big screw refrigeration research project 26,196,150.27 28,951,650.27
Subsidy fund for highly effective heat pump and related system 6,044,697.00 6,044,697.00
Contribution to subsidiary company relocation 50,130,003.00 50,130,003.00
Big capacity of sea water pre-freeze project of Project 863 13,940,000.00 13,940,000.00
Total 96,310,850.27 99,066,350.27
The balance of above items didn’t meet the conditions being converted to income at the end of the report period.
28 Share capitals
Issuance Shares
Item 31-12-2010 of new converted Others 30-06-2011
shares from reserve
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 -57,641,762 19,213,921.00
Including: Shares held by
92,113.00 92,113.00
domestic natural person
II. Circulating share capital
1. Domestically listed ordinary
158,067,179.00 +57,641,762 215,708,941.00
shares (A-share)
2. Domestically listed ordinary
115,000,000.00 115,000,000.00
shares (B-share)
III. Total 350,014,975.00 350,014,975.00
57,641,762 shares of the shares with the trading limited condition held by Dalian Bingshan Group Co., Ltd. were
listed and became marketable on Jan. 21, 2011.
34
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
29 Capital surpluses
Current year Current year
Item 31-12-2010 30-06-2011
addition reduction
Capital premium 513,645,432.79 513,645,432.79
Other capital surplus 77,137,752.46 28,103,925.00 105,241,677.46
Total 590,783,185.25 28,103,925.00 618,887,110.25
Other capital reserve added in this period was increased in change of the value of available-for-sale financial assets.
30 Surplus reserves
Current year Current year
Item 31-12-2010 30-06-2011
addition reduction
Surplus reserves 421,079,823.34 17,658,898.30 438,738,721.64
Total 421,079,823.34 17,658,898.30 438,738,721.64
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 2010 according to the resolution of the Shareholders’ General Meeting of year 2010.
31 Retained earnings
Items Amount Extraction or allocation proportion
Retained earnings at the end of prior year 364,217,259.03
Add: Changes in accounting policies
At beginning of the year after retrospective
364,217,259.03
adjustment
Add: Net profit 95,488,392.56
Less: Appropriation of statutory surplus reserves
20% of net profit of the Company of
Appropriation of other reserved capital 17,658,898.30
year 2010
Cash dividends 52,502,246.25 RMB 0.15 per share
Appropriation of employee’s welfare and bonus
2,445,989.45
fund in foreign invested company
Retained earnings at the end of the current year 387,098,517.59
32 Revenue and cost of sales
(1)Business income and cost
Items 2011.01-06 2010.01-06
Operating income 947,894,622.28 710,539,815.60
Key business income 931,151,231.12 698,593,587.64
Other business income 16,743,391.16 11,946,227.96
Operating cost 769,799,892.96 570,457,579.49
Key business cost 754,394,019.76 560,311,836.89
Other business cost 15,405,873.20 10,145,742.60
35
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
(2) Key business（type）：
2011.01-06 2010.01-06
Name of type
Revenue Cost Revenue Cost
Manufacturing 931,151,231.12 754,394,019.76 698,593,587.64 560,311,836.89
(3) Key business（product）：
2011.01-06 2010.01-06
Name of product
Revenue Cost Revenue Cost
Refrigeration
931,151,231.12 754,394,019.76 698,593,587.64 560,311,836.89
equipments
(4) Key business（region）：
2011.01-06 2010.01-06
Name of region
Revenue Cost Revenue Cost
North-east of China 751,473,152.49 626,443,148.63 538,305,110.07 440,404,202.85
East of China 11,000,357.30 8,411,035.40 17,947,039.78 14,793,761.61
Centre of China 168,677,721.33 119,539,835.73 142,341,437.79 105,113,872.43
Total 931,151,231.12 754,394,019.76 698,593,587.64 560,311,836.89
(5) Top five customers
Name Revenue Percentage of total business income
Customer 1 68,737,105.79 7.25%
Customer 2 15,609,943.59 1.65%
Customer 3 14,647,015.67 1.55%
Customer 4 14,203,820.51 1.50%
Customer 5 13,598,290.60 1.43%
Total 126,796,176.16 13.38%
33 Business taxes and surcharges
Item 2011.01-06 2010.01-06 Basis of taxes calculated
Business tax 1,165,427.42 819,308.40 3% or 5% of Revenue
City maintenance and
2,941,562.73 1,499,607.00 7% of Business tax and Value-added tax
construction tax
Additional education Fees 1,266,346.26 645,116.47 3% of Business tax and Value-added tax
2% or 1.5% of Business tax and Value-
Local educational fee 802,071.12 214,223.76
added tax
Embankment expenses 5,852.18 22.25
Others 5,113.93
Total 6,186,373.64 3,178,277.88
34 Selling and distribution expenses
Items 2011.01-06 2010.01-06
Handle official business expenses 2,485,684.76 4,798,519.24
Salaries and subsidies 19,954,021.34 10,366,222.84
Depreciation expenses 265,535.38 279,930.27
Transportations expenses 7,030,153.45 5,622,988.51
Entertainment expenses 4,014,439.03 4,133,188.19
36
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
Traveling expenses 7,627,741.44 6,761,616.26
Maintenance and repair expenses 2,708,096.15 2,565,010.62
Advertise and bids expenses 1,271,190.71 1,362,352.60
Others 411,338.42 614,156.88
Total 45,768,200.68 36,503,985.41
35 Administrative expenses
Items 2011.01-06 2010.01-06
Handle official business expenses 6,778,797.44 7,221,203.45
Salaries and subsidies 49,957,689.75 38,520,938.27
Depreciation expenses 3,756,953.22 4,036,301.66
Transportations expenses 1,046,451.63 423,187.77
Entertainment expenses 1,616,092.45 2,079,249.67
Traveling expenses 1,611,122.52 2,002,482.28
Maintenance and repair expenses 4,166,276.11 2,330,852.72
Advertise expenses 108,237.00 297,577.00
Other taxes 4,505,493.35 3,202,886.06
Insurance expenses 1,482,221.60 1,070,262.24
Research and development expenses 6,675,141.17 4,162,579.23
Amortization of long term assets 2,144,425.42 1,300,940.58
Design consultant and test service expenses 2,192,575.99 2,058,121.26
Others 1,741,942.01 2,059,765.50
Total 87,783,419.66 70,766,347.69
36 Financial expenses
Items 2011.01-06 2010.01-06
Interest expenses 2,141,136.06 1,765,073.17
Less: interest income 1,094,277.01 745,333.95
Losses on exchange 69,508.39 85,238.24
Less: gain on exchange 5,152.86 98,052.51
Other expenses 277,101.29 359,031.37
Total 1,388,315.87 1,365,956.32
37 Impairment losses
Items 2011.01-06 2010.01-06
Bad debt provision 11,670,249.65 9,250,120.79
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
37
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
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 11,670,249.65 9,250,120.79
38、Gain/ (loss) from investments
(1) Categeries
Items 2011.01-06 2010.01-06
Calculated by cost method 3,009,889.50 3,032,189.50
Calculated by equity method 35,342,590.94 41,891,755.43
Investment income due to disposal of the
17,384,712.48
available-for-sale financial assets
Investment income due to disposal of the equity
49,768,242.00
of associated company
Total 88,120,722.44 62,308,657.41
(2) Calculated by cost method（more than 5% of profit）
Name 2011.01-06 2010.01-06 Reason of changes
Guotai Junan Securities Co., Ltd. 3,009,889.50 3,009,889.50
Total 3,009,889.50 3,009,889.50
(3) Calculated by equity method（more than 5% of profit）
Name 2011.01-06 2010.01-06 Reason of changes
Dalian Sanyo Air-conditioner Co., Ltd. -8,014,452.98 -8,361,243.70
Dalian Sanyo Cold-chain Co., Ltd 9,506,908.21 8,650,902.71 Increase of business profit
Grand Ocean-showa Auto Air Conditioning
6,870,056.64 6,396,938.04 Increase of business profit
(Dalian) Co., Ltd.
Dalian Sanyo Compressor Co., Ltd. 23,641,535.89 Increase of price of raw material
27,064,762.76
Total 32,004,047.76 33,751,359.81
(4)There was no severe constrict on the collection of the investment earnings.
39 Non-business incomes
(1)Details
Item 2011.01-06 2010.01-06
Gain on the disposal of non-current assets 99,194.20 18,433.37
Penalty and fine income 400,000.00 11,865.40
Subsidy fund from government 427,723.29 2,122,254.25
Deferred income 3,605,050.50 1,157,820.37
Debts need not paid 750,795.43 25,253.00
Others 85,017.31 53,575.42
Total 5,367,780.73 3,389,201.81
38
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
(2) Subsidy fund from government
Items 2011.01-06 2010.01-06 Explanations
Technological promotion and progress Financial aids for technological projects
award to the double two-stage screw 420,000.00 appropriated by Dongxihu District Technology
compressor set Bureau, Wuhan City.
Fund for innovations appropriated by Dalian
Fund for innovations in major industries 1,500,000.00 Municipal Bureau of Finance
Others 427,723.29 202,254.25 Tax refund
Total 427,723.29 2,122,254.25
40 Non-business expenses
Item 2011.01-06 2010.01-06
Loss on the disposal of non-current assets 29,234.67 174,315.40
Fines and penalties 4,036.56 1,700.00
Donation expenditure 200,000.00
Others 42,673.15 91,135.19
Total 275,944.38 267,150.59
41 Income tax expense
Item 2011.01-06 2010.01-06
Current income tax expense 18,958,629.49 8,947,030.48
Deferred income tax expense -1,821,786.08 -2,063,278.57
Total 17,136,843.41 6,883,751.91
42、Basic earnings per share and diluted earnings per share calculation process
(1)Calculation of basic earning per share
Item No. 2011.01-06 2010.01-06
Profit or loss attributable to the Company 1 95,488,392.56 71,805,431.81
Profit or loss after deducting extraordinary gain or loss
2 55,527,288.08 57,358,404.49
attributable to the Company
the weighted average number of ordinary shares outstanding 3=4+5+6*10/9-7*11/9-
350,014,975 350,014,975
during the period(So) 8
the number of ordinary shares at the beginning of the
4 350,014,975 350,014,975
period(S0)
the number of additional ordinary shares issued on capital
5
surplus transfer or share dividends appropriation(S1)
the number of ordinary shares issued in exchange for cash or
issued as a result of the conversion of a debt instrument to 6
ordinary shares during the period(Si)
reduced number of ordinary shares such as shares buy
7
back(Sj)
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
10
incremental shares to the end of the period(Mi)
the months from the following month after reducing shares to
11
the end of the period(Mj)
Basic earnings per share 12=1/3 0.27 0.21
Basic earnings per share deducting extraordinary gain or loss 13=2/3 0.16 0.16
39
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
(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.
43、Other comprehensive income
Items 2011.01-06 2010.01-06
1、Gain/(loss) on financial assets available for sale 36,471,900.00 -528,000.00
Less：Income tax infection on financial assets available for sale 8,367,975.00 -132,000.00
Net amount transferred into profit and loss at current period that
9,244,367.75
reckon into other comprehensive income at former period
Subtotal 28,103,925.00 -9,640,367.75
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 28,103,925.00 -9,640,367.75
① Others was government subsidy being recorded into capital surplus.
44. Relevant information about cash flow statement
(1) Other cash received relating to operating activities
Item 2011.01-06
Returns travel expense receivable 2,968,480.00
Deposit received 6,466,252.71
Others 6,025,225.64
Total 15,459,958.35
(2) Other cash paid relating to operating activities
Item 2011.01-06
Travel expense 19,243,894.36
Deposit paid 10,716,073.29
Sales expenditure 13,672,024.67
40
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
Administrative expenditure 19,754,501.11
Others 2,600,666.86
Total 65,987,160.29
(3) Other cash received relating to investing activities:
Item Current period actual
Compensation for warehouse relocation 2,755,500.00
Total 2,755,500.00
(4) Other cash paid relating to financing activities
Item 2011.01-06
Discount interest for acceptance notes 161,150.43
Total 161,150.43
45 Complementary information for consolidated cash flow statement
(1) The relationship between the net profit and the net cash flows from operating activities
Item 2011.01-06 2010.01-06
1. Reconciliation from the net profit to the cash flows from operating
activities
Net profit 101,373,885.20 77,564,504.74
Add: Provisions for assets impairment 11,670,249.65 9,250,120.79
Depreciation of fixed assets 16,746,611.41 16,534,673.56
Amortization of intangible assets 2,075,186.26 1,300,976.58
Amortization of long-term deferred expenses 69,239.16 69,239.16
Losses on disposal of fixed assets, intangible assets and other long-
-69,959.53 150,950.03
term assets
Losses on scrapping of fixed assets 4,932.00
Losses on variation of fair value
Finance expenses 2,313,987.72 1,764,854.92
Investment losses -88,120,722.44 -62,308,657.41
Decrease in deferred tax assets -1,821,786.08 -2,050,427.72
Increase in deferred tax liabilities 8,367,975.00 -3,213,455.92
Decrease in inventory -11,795,597.64 -6,109,184.22
Decrease in operating receivables -132,215,799.61 -87,192,165.34
Increase in operating payables 182,076,706.46 54,399,672.21
Others
Net cash flows from operating activities 90,669,975.56 166,033.38
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 625,558,513.48 354,218,457.83
Less: Cash at the beginning of the period 491,775,575.71 403,139,585.35
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 133,782,937.77 -48,921,127.52
41
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
(2) Cash and cash equivalents
Item 2011.01-06 2010.01-06
1.Cash
Including: cash on hand 150,786.82 181,232.43
Bank deposits that can be used for payment whenever necessary 625,182,726.66 490,478,655.06
Other monetary capital that can be used for payment whenever 225,000.00 1,115,688.22
necessary
2.cash equivalents
Including: Bonds mature within 3 months
3.Balance of cash and cash equivalents at the end of the year 625,558,513.48 491,775,575.71
Including: Cash or cash equivalents which was restricted in use of the
Company and subsidiaries in the group
Ⅵ.Related Party Relationships and Transactions
1、Information of parent company
The
Legal The parent The parent ultimate
Name of Principal Registered Nature of company's company's controllin Organization
Nature representative Registered capital shareholding voting right g party of Code
enterprise activities address business (%) (%) the
person Company
Installation
Dalian and
Bingshan manufactory Sino-foreign Manufact SASAC
Dalian Zhang He RMB140,600,000.00 21.96% 21.96% 24129179-3
Group Co., of joint venture ure of Dalian
Ltd. refrigeration
equipment
2、Subsidiaries
Registe Legal The The
Name of invested Nature of Nature of company's company'
No. Type red representative Registered capital shareholdi s voting Organization Code
company enterprise business ng (%) right (%)
address person
Dalian Bingshan Limited
1 Group Refrigeration liabilities Industry Dalian Zhang Hongzhi Installation RMB20,040,000.00 100 100 24236769-X
Installation Company company
Dalian Bingshan Limited
2 liabilities Trading Dalian Yang Bin Trading RMB18,000,000.00 90 90 70216986-3
company
Group Sales Company
Dalian Bingshan Air-
Limited Yamamoto
3 Conditioning liabilities Industry Dalian Manufacturing JPY700,000,000.00 70 70 60488234-X
company
Shunniti
Equipment Co., Ltd.
Dalian Bingshan
Limited
4 Metal Processing Co., liabilities Industry Dalian Zhang He Manufacturing USD2,350,000.00 64.25 64.25 70215200-9
company
Ltd.
Dalian Bingshan
Limited
5 Guardian Automation liabilities Industry Dalian Mike Murphy Manufacturing GBP210,000.00 60 60 73640895-7
company
Co., Ltd.
Dalian Bingshan
Ryosetsu Quick Limited Yamati
6 liabilities Industry Dalian Manufacturing USD1,000,000.00 70 70 74787148-8
company
Freezing Equipment Yashuhiro
Co., Ltd.
42
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
Shanghai Bingshan
Serial Refrigeration Limited
7 liabilities Trading Shanghai Yang Bin Trading RMB2,000,000.00 45 45 75500739-0
company
Equipment Sales
Company
Wuhan New World Limited
8 Refrigeration liabilities Industry Wuhan Mu Chuanjiang Manufacturing RMB30,000,000.00 51 51 61640057-1
company
Industrial Co., Ltd.
Wuhan New World
Limited
Refrigeration Air
9 liabilities Industry Wuhan Ding Jie Installation RMB8,000,000.00 5 100 78930854-6
Conditioner company
Engineering Co., Ltd.
Limited
Dalian Daleng Metal
10 liabilities Industry Dalian Zhang He Manufacturing RMB20,000,000.00 100 100 66920026-6
Technology Co., Ltd. company
3、Joint venture and associate companies
Relationship with the
Name of the related parties Organization Code
Company
Dalian Bingshan – P&A Recreation Development Engineering Co., Ltd. Joint venture 72600341-1
Dalian Jiale Vending Machine Operation Co., Ltd. Joint venture 76079627-5
Dalian Bingshan Group Import&Export Co., Ltd. Associated company 72886492-8
Thermo King-Dalian Transport Refrigeration Co., Ltd. Associated company 61881070-X
Dalian Grand Ocean Thermo King Transport Refrigeration Engineering
Associated company 60485722-4
Co., Ltd
Dalian Sanyo Refrigeration Co., Ltd. Associated company 60480245-0
Dalian Honjo Chemical Co., Ltd. Associated company 60483825-0
Dalian Sanyo Cold-chain Co., Ltd Associated company 60481691-6
Grand Ocean-showa Auto Air Conditioning (Dalian) Co., Ltd. Associated company 60486851-3
Dalian Sanyo Compressor Co., Ltd. Associated company 60482029-6
Dalian Sanyo Meica Electronics Co., Ltd. Associated company 60482091-5
Dalian Sanyo Air-conditioner Co., Ltd. Associated company 60486689-2
Dalian Sanyo Home Appliance Co., Ltd. Associated company 60486096-8
Beijing Huashang Bingshan Refrigeration and Air-conditioning Machinery
Associated company 74261540-X
Co., Ltd.
Dalian Bingshan H2O3 Environmental Solution Co. , Ltd. Associated company 74092769-6
Dalian Fuji Bingshan Vending Machine Co., Ltd. Associated company 75158208-0
Daliian Sanyo High-Efficient Refrigeration System Co., Ltd. Associated company 78733517-X
For details, please refer to the Ⅴ.9 of the notes.
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.,
Subsidiary of Dalian Bingshan Group 24239741-8
Ltd.
Dalian Bingshan Group Refrigeration Equipment
Subsidiary of Dalian Bingshan Group 11857056-X
Co., Ltd.
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
Subsidiary of Dalian Bingshan Group 80139721-2
Co., Ltd.
43
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
Name of the related parties Relationship with the Company Organization Code
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
Affiliated company of Dalian Bingshan Group 60486775-6
Co., Ltd.
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.,
Affiliated company of Dalian Bingshan Group 60492073-X
Ltd.
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
2011.01-06 2010.01-06
Details of Rule of
Name of the related parties Item transaction price setting Proportion of the same type Proportion of the same type
Amount Amount
transaction amount ( %) transaction amount ( %)
Dalian Sanyo Refrigeration Co., Ltd. Purchases Purchases of goods Market price 760,000.00 0.10
Dalian Sanyo Cold-chain Co., Ltd Purchases Purchases of goods Market price 7,218,605.08 0.94 6,004,878.82 1.07
Purchases Purchases of goods Market price 2,354,236.87 0.31 2,482,666.81 0.44
Dalian Sanyo Air-conditioner Co., Ltd.
Dalian Sanyo Compressor Co., Ltd. Purchases Purchases of goods Market price 2,742,806.51 0.36 2,085,793.66 0.37
Dalian Sanyo Meica Electronics Co., Ltd. Purchases Purchases of goods Market price 494,282.88 0.06 199,528.00 0.04
Dalian Sanyo Home Appliance Co., Ltd. Purchases Purchases of goods Market price 7,005.13 0.001
Dalian Bingshan Group Cold Drink
Purchases Purchases of goods Market price 14,864,833.34 1.93 9,486,513.40 1.69
Equipment Co., Ltd.
Dalian Bingshan Group Refrigeration
Purchases Purchases of goods Market price 30,685,423.86 3.99 16,550,553.79 2.95
Equipment Co., Ltd.
Dalian Third Refrigeration Equipment
Purchases Purchases of goods Market price 5,849,353.51 0.76 4,294,866.41 0.77
Factory
Dalian Seiko Electric Control Co., Ltd. Purchases Purchases of goods Market price 363,668.00 0.05
Dalian Spindle Cooling Towers Co., Ltd. Purchases Purchases of goods Market price 960,100.00 0.12 31,623.93 0.01
BAC Dalian Co., Ltd. Purchases Purchases of goods Market price 30,716,126.31 3.99 23,114,432.52 4.13
Dalian Bingshan Group Import & Export
Purchases Purchases of goods Market price 8,032,313.01 1.04 9,431,037.93 1.68
Co. , Ltd
Dalian Bingshan Group Materials Trading
Purchases Purchases of goods Market price 5,252,279.78 0.68 4,152,843.64 0.74
Co. , Ltd
Dalian Bingshan Metal Technology Co., Ltd. Purchases Purchases of goods Market price 1,770,942.81 0.23 751,742.58 0.13
Thermo King-Dalian Transport Refrigeration
Sales Sales of goods Market price 567,890.56 0.06 8,117,649.38 1.16
Co., Ltd.
Dalian Sanyo Refrigeration Co., Ltd. Sales Sales of goods Market price 1,388,601.71 0.15 338,627.30 0.05
Dalian Sanyo Cold-chain Co., Ltd Sales Sales of goods Market price 10,453,459.51 1.10 7,954,449.64 1.14
Sales Sales of goods Market price 6,670,480.95 0.70 3,747,140.51 0.54
Dalian Sanyo Air-conditioner Co., Ltd.
Dalian Sanyo Compressor Co., Ltd. Sales Sales of goods Market price 5,903,604.11 0.62 10,408,577.46 1.49
Dalian Bingshan Group Cold Drink
Sales Sales of goods Market price 2,715,630.76 0.29
Equipment Co., Ltd.
Dalian Bingshan Group Refrigeration
Sales Sales of goods Market price 2,961,286.10 0.31 2,482,635.90 0.36
Equipment Co., Ltd.
44
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
2011.01-06 2010.01-06
Details of Rule of
Name of the related parties Item transaction price setting Proportion of the same type Proportion of the same type
Amount Amount
transaction amount ( %) transaction amount ( %)
Dalian Third Refrigeration Equipment
Sales Sales of goods Market price 2,671,662.46 0.28
Factory
Dalian Seiko Electric Control Co., Ltd. Sales Sales of goods Market price 8,294.80 0.001 111,819.72 0.02
Dalian Spindle Cooling Towers Co., Ltd. Sales Sales of goods Market price 144,000.00 0.01
BAC Dalian Co., Ltd. Sales Sales of goods Market price 102,125.78 0.01
Dalian Bingshan Group Import & Export
Sales Sales of goods Market price 68,737,105.79 7.25 52,154,828.88 7.47
Co. , Ltd
Dalian Bingshan – P&A Recreation
Sales Sales of goods Market price 82,478.63 0.01
Development Engineering Co., Ltd.
Beijing Bingshan Serial Refrigeration
Sales Sales of goods Market price 391,452.99 0.04 913,724.70 0.13
Equipment Co., Ltd.
Beijing Huashang Bingshan Serial
Sales Sales of goods Market price 7,681,692.67 0.81 4,522,261.44 0.65
Refrigeration Equipment Co., Ltd.
Dalian Fuji Bingshan Vending Machine Co.,
Sales Sales of goods Market price 1,118,994.75 0.12 1,365,948.06 0.20
Ltd.
Dalian Bingshan Metal Technology Co., Ltd. Sales Sales of goods Market price 87,357.26 0.01 81,024.47 0.01
Daliian Sanyo High-Efficient Refrigeration
Sales Sales of goods Market price 302,399.72 0.03 506,488.47 0.07
System Co., Ltd.
(2) Leasing fees from related party
The Company signed an agreement with Dalian Bingshan Group Co., Ltd. to lease the floor space of 530 sq. m. in
the office building to Dalian Bingshan Group Co., Ltd. with a lease term of 3 years at the annual rent of RMB
95,400.00 yuan.
(3)Guarantee with related companies
No.
6 Amounts due from/to related parties
(1) Notes receivable
Name of the related parties 30-06-2011 31-12-2010
Daliian Sanyo High-Efficient Refrigeration System Co., Ltd. 287,709.46
Dalian Sanyo Compressor Co., Ltd. 1,237,628.00 362,647.80
Dalian Sanyo Air-conditioner Co., Ltd. 2,366,000.00
Dalian Bingshan Group Import & Export Co., Ltd. 15,469,386.57 18,691,704.09
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 200,000.00 800,000.00
(2) Accounts paid in advance
Name of the related parties 30-06-2011 31-12-2010
Dalian Sanyo Compressor Co., Ltd. 2,487.00 8,943.40
Dalian Sanyo Air-conditioner Co., Ltd. 236,391.60 236,391.60
Dalian Sanyo Cold-chain Co., Ltd. 33,477.00 23,336.00
BAC Dalian Co., Ltd. 37,740.00 30,000.00
45
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
(3) Accounts receivable
30-06-2011 31-12-2010
Provision Provision
Name of the related parties
Amount for bad Amount for bad
debts debts
Dalian Sanyo Compressor Co., Ltd. 1,683,614.20 106,380.71 584,853.62 29,242.68
Dalian Sanyo Refrigeration Co., Ltd. 1,747,528.00 87,736.40 5,305.39 265.27
Dalian Sanyo Cold-chain Co., Ltd. 3,486,464.16 200,210.71 976,552.20 48,827.61
Beijing Bingshan Serial Refrigeration Equipment Co.,
530,245.35 26,512.27 96,402.35 4,820.12
Ltd.
Thermo King-Dalian Transport Refrigeration Co., Ltd. 458,567.06 22,928.35
Dalian Sanyo Air-conditioner Co., Ltd. 4,878,116.10 243,905.80 3,337,028.99 166,851.45
Dalian Bingshan Group Refrigeration Equipment Co.,
125,575.70 6,278.79
Ltd.
Dalian Bingshan Group Import & Export Co., Ltd. 1,693,422.79 84,671.14 181,274.60 9,063.73
Dalian Bingshan – P&A Recreation Development
196,000.00 19,600.00 196,000.00 9,800.00
Engineering Ltd.
Beijing Huashang Bingshan Refrigeration and Air-
4,852,956.28 266,847.81 2,832,000.00 141,600.00
conditioning Machinery Co., Ltd.
Dalian Seiko Electric Control Co., Ltd. 11,787.52 589.38 37,701.60 1,885.08
Dalian Fuji Bingshan Vending Machine Co., Ltd. 694,012.60 34,700.63 233,280.65 11,664.03
BAC Dalian Co., Ltd. 19,800.00 990.00
Dalian Sanyo High-Efficient Refrigeration System Co.,
523,968.10 26,198.40 457,869.80 22,893.49
Ltd.
Dalian Bingshan Metal Technology Co., Ltd. 44,058.00 2,202.90 17,820.00 891.00
(4) Other accounts receivable
30-06-2011 31-12-2010
Name of the related parties Provision for bad Provision for bad
Amount Amount
debts debts
Dalian Sanyo Air-conditioner Co., Ltd. 34,343.00 1,717.15
(5) Dividends receivable
Name of the related parties 30-06-2011 31-12-2010
Dalian Sanyo Refrigeration Co., Ltd. 3,600,000.00
Dalian Sanyo Compressor Co., Ltd. 25,200,000.00
(6) Notes payable
Name of the related parties 30-06-2011 31-12-2010
Dalian Spindle Cooling Towers Co., Ltd. 180,000.00
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 7,000,000.00 7,900,000.00
Dalian Bingshan Group Cold Drink Equipment Co., Ltd. 2,900,000.00 3,741,733.31
BAC Dalian Co., Ltd. 200,000.00
Dalian Bingshan Group Materials Trading Co. , Ltd. 1,400,000.00 2,328,553.92
Dalian Third Refrigeration Equipment Factory 600,000.00 1,900,000.00
Dalian Bingshan Group Import & Export Co., Ltd. 206,139.25
46
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
(7) Accounts payable
Name of the related parties 30-06-2011 31-12-2010
Dalian Third Refrigeration Equipment Factory 1,376,749.75 1,458,675.88
Dalian Bingshan Group Cold Drink Equipment Co., Ltd. 8,777,335.94 6,075,051.11
BAC Dalian Co., Ltd. 17,754,618.95 9,245,618.05
Dalian Seiko Electric Control Co., Ltd. 476,535.00 1,235,600.00
Dalian Sanyo Air-conditioner Co., Ltd. 458,007.11
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 3,483,230.59 7,802,640.80
Dalian Sanyo Refrigeration Co., Ltd. 80,000.00 371,000.00
Dalian Sanyo Cold-chain Co., Ltd. 3,331.00
Dalian Sanyo Meica Electronics Co., Ltd. 449,166.18 154,883.30
Dalian Sanyo Home Appliance Co., Ltd. 15,570.00 42,823.00
Dalian Spindle Cooling Towers Co., Ltd. 453,403.00 250,480.00
Dalian Bingshan Group Import & Export Co., Ltd. 192,801.46 530,488.93
Dalian Sanyo Compressor Co., Ltd. 912,823.38 169,695.50
Dalian Bingshan Group Materials Trading Co., Ltd 2,317,190.18 240,571.76
Dalian Bingshan Metal Technology Co., Ltd. 534,945.41 2,363.46
(8) Accounts received in advance
Name of the related parties 30-06-2011 31-12-2010
Dalian Bingshan – P&A Recreation Development
119,660.00
Engineering Ltd.
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 8,695.30
Dalian Sanyo Cold-chain Co., Ltd. 241,824.28
Dalian Sanyo Compressor Co., Ltd. 186,750.00
Dalian Sanyo Refrigeration Co., Ltd. 1,607,000.00
Dalian Bingshan Group Import & Export Co. , Ltd. 1,493,805.40 17,013.59
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 3,128.48 3,128.48
Beijing Huashang Bingshan Refrigeration and Air-
777,375.00 1,164,831.75
conditioning Machinery Co., Ltd.
(9) Other Accounts payable
Name of the related parties 30-06-2011 31-12-2010
Dalian Bingshan Group Co., Ltd. 11,722,170.81 11,766,039.39
Dalian Bingshan Sanyo Laundering and Dyeing Co., Ltd. 9,416.00
Dalian Third Refrigeration Equipment Factory 101,000.00 101,000.00
Dalian Bingshan H2O3 Environmental Solution Co. , Ltd. 560,139.68 566,360.68
Dalian Sanyo Refrigeration Co., Ltd. 450,000.00
Ⅶ.Contingency
No.
Ⅷ. Commitments
No.
Ⅸ.Unadjusted events after the Balance Sheet Date
No.
47
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
Ⅹ.Other significant events
1. Assets and liabilities recorded by fair value
Fair value change
Gain on fair Impairment for
Item 31-12-2010 which recorded into 30-06-2011
value change the period
equity
Financial assets
5,808,000.00 36,471,900.00 42,279,900.00
available for sale
Total 5,808,000.00 36,471,900.00 42,279,900.00
Ⅺ.Notes to the financial statements of the parent company
1 Accounts receivable
(1) Classified by account nature
30-06-2011 31-12-2010
Balance Provision for doubtful debt Balance Provision for doubtful debt
Category
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Receivables that are
individually
significant
Receivables not
individually 100 100 263,560,881.41 100 49,019,717.31 100
330,337,829.94 57,470,800.99
significant but with
high risk in groups
Other insignificant
items
Total 330,337,829.94 100 57,470,800.99 100 263,560,881.41 100 49,019,717.31 100
The aging of accounts receivable and related provisions for bad debts
30-06-2011 31-12-2010
Proportion Provision for bad Proportion Provision for bad
Ages Amount Amount
(%) debts (%) debts
Within1 year 169,646,405.76 51.36 8,482,320.28 121,339,230.16 46.04 6,066,961.50
1 to 2 years 79,098,136.96 23.94 7,909,813.70 71,237,902.55 27.03 7,123,790.26
2 to 3 years 40,736,646.45 12.33 12,220,993.94 34,689,816.46 13.16 10,406,944.94
3 to 4 years 18,816,093.49 5.70 9,408,046.75 19,478,994.04 7.39 9,739,497.02
4 to 5 years 12,954,604.78 3.92 10,363,683.82 5,662,073.04 2.15 4,529,658.43
Over 5 years 9,085,942.50 2.75 9,085,942.50 11,152,865.16 4.23 11,152865.16
Total 330,337,829.94 100 57,470,800.99 263,560,881.41 100 49,019,717.31
(2) There is no receivables not individually significant but with high risk in groups during the report period.
48
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
(3) There were two receivable accounts of the Company that have been written off before this report period but
recovered in this period:
Accumulative
Why they
Receivable amount of provision
were written
account Basis for the original provision for bad debts for bad debts that Recovered amount
back or
details has been drawn
recovered
before recovery
The revenue
was charged The customer refused to pay the money for
Money for
off through goods for the need to correct, leading to 2,825,310.00 2,825,310.00
goods
amendment to impossibility to recover the account.
the contract.
(4) There is no accounts receivable being recovered by debts reconstruction during the report period.
(5)The write-off of accounts receivable
Name of company The nature of accounts receivable Written off Reason Related party transaction
Clients Sale of goods 4,415,532.43 ① No
①Description of writing off: The Company wrote off the receivable accounts mainly due to: the other party’s
company was closed down or went into bankruptcy; the lawsuit has been brought but there was no result in
enforcement; the account has been in arrears for a prolonged period of time, but the amount was less; the customer
refused to pay the money for goods for the field cost produced, leading to impossibility to recover the account.
(6) No arrearage from the shareholders holding over 5% (including 5%) of the equity of the Company existed in the
balance of accounts receivable.
(7) The first five arrearage entities listed in the balance of accounts receivable
The relationship with
Company Amount Age Proportion
the Company
Client 1 Non-affiliated 11,242,693.00 2-3 years 3.4%
Client 2 Non-affiliated 9,971,082.00 Less than 1 year 3.02%
Client 3 Non-affiliated 9,434,008.12 Less than 1 year 2.86%
Client 4 Non-affiliated 8,256,382.69 Less than 1 year 2.50%
Client 5 Non-affiliated 8,061,956.21 Less than 1 year 2.44%
Total 46,966,122.02 14.22%
(8) The amount of accounts receivable due from related companies are RMB 5,183,570.48, 1.57% of total accounts
receivable.
The relationship
Proportion of total accounts
Name with the Amount
receivable
Company
Beijing Huashang Bingshan Refrigeration and Associated
4,368,956.28 1.32
Air-conditioning Machinery Co., Ltd. company
Associated
Dalian Sanyo Compressor Co., Ltd. 814,614.20 0.25
company
Total 5,183,570.48 1.57
(9) There is no accounts receivable being ended reorganization or being negotiated during the reporting period.
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
2 Other accounts receivable
(1) Classified by account nature
30-06-2011 31-12-2010
Balance Provision for doubtful debt Balance Provision for doubtful debt
Item
Proportion Proportion Proportion Proportion
Amount Amount Amount Amount
(%) (%) (%) (%)
Receivables that are
individually significant
Receivables not
individually significant but 9,159,743.15 100 728,066.73 100 8,940,124.51 100 380,433.61 100
with high risk in groups
Other insignificant items
Total 9,159,743.15 100 728,066.73 100 8,940,124.51 100 380,433.61 100
The ageing of other accounts receivable and related provisions for bad debts
30-06-2011 31-12-2010
Ages Proportion Provision for bad Proportion Provision for
Amount Amount
(%) debts (%) bad debts
Within1 year 6,875,659.39 75.06 343,782.97 7,615,043.23 85.17 227,397.70
1 to 2 years 1,582,000.00 17.28 158,200.00 1,299,736.52 14.54 129,973.65
2 to 3 years 680,000.00 7.42 204,000.00 3,260.00 0.04 978.00
3 to 4 years 1.00 0.50
4 to 5 years
Over 5 years 22,083.76 0.24 22,083.76 22,083.76 0.25 22,083.76
Total 9,159,743.15 100 728,066.73 8,940,124.51 100 380,433.61
(2) There is no receivables not individually significant but with high risk in groups during the reporting period.
(3) There is no amount of provision for bad debts written back during the reporting period.
(4) During the reporting period, there is no other account receivable being recovered by debts reconstruction.
(5) During the reporting period, there is no other accounts receivable written-off.
(6) There is no balance of other accounts receivable due from the shareholders holding over 5% (including 5%) of the
equity of the Company.
(7) The first five arrearage entities of other accounts receivable
The relationship
Company Amount Age Proportion
with the Company
Client 1 Non-affiliated 1,432,000.00 1-2 years 15.63
Client 2 Non-affiliated 300,000.00 1-2 years 3.28
Client 3 Non-affiliated 300,000.00 1-2 years 3.28
Client 4 Non-affiliated 265,950.62 Less than 1 year 2.9
Client 5 Non-affiliated 200,000.00 Less than 1 year 2.18
Total 2,497,950.62 27.27
(8) There was no amount of other accounts receivable due from related companies at the end of the period.
(9) There is no other accounts receivable being ended reorganization or being negotiated during the reporting period.
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
3 Long-term equity investments
(1) Details of long-term equity investments
Provision for Cash dividend of
Calculatio Shareholdin Voting right Provision for
No. Name Initial cost Beginning balance Changes Ending balance impairment of the the current
n method g（%） （%） impairment
current period period
Dalian Bingshan –
P&A Recreation Equity
1 1,034,675.00 2,789,995.19 -182,263.76 2,607,731.43 50 50
Development method
Engineering Co., Ltd.
Dalian Jiale Vending
Equity
2 Machine Operation 18,750,000.00 14,297,794.27 -254,706.47 14,043,087.80 50 50
method
Co., Ltd.
Dalian Bingshan
Equity
3 Group Import & 1,200,000.00 8,704,365.95 604,760.26 9,309,126.21 24 24
method
Export Co. , Ltd.
Thermo King-Dalian
Equity
4 Transport 6,313,174.25 29,083,982.75 -29,083,982.75 25 25 22,143,224.75
method
Refrigeration Co., Ltd.
Dalian Grand Ocean
Thermo King
Equity
5 Transport 2,871,708.00 4,253,346.13 -338,998.05 3,914,348.08 40 40
method
Refrigeration
Engineering Co., Ltd
Dalian Sanyo Equity
6 40,606,709.20 107,170,589.17 -5,041,575.39 102,129,013.78 40 40 7,200,000.00
Refrigeration Co., Ltd. method
Dalian Honjo Equity
7 3,908,911.50 9,428,153.30 -818,908.00 8,609,245.30 30 30 1,242,839.10
Chemical Co., Ltd. method
Dalian Sanyo Cold- Equity
8 134,658,753.75 203,902,522.89 1,506,908.21 205,409,431.10 40 40 8,000,000.00
chain Co., Ltd method
Grand Ocean-showa
Equity
9 Auto Air Conditioning 24,402,234.58 41,487,961.42 -5,529,943.36 35,958,018.06 20 20 12,400,000.00
method
(Dalian) Co., Ltd.
Dalian Sanyo Equity
10 176,953,841.88 318,501,399.43 -12,358,464.11 306,142,935.32 40 40 36,000,000.00
Compressor Co., Ltd. method
Dalian Sanyo Meica Equity
11 9,649,590.00 24,381,787.12 1,534,049.64 25,915,836.76 30 30
Electronics Co., Ltd. method
Dalian Sanyo Air- Equity
12 124,728,240.00 99,851,858.86 -8,014,452.98 91,837,405.88 40 40
conditioner Co., Ltd. method
Dalian Sanyo Home Equity
13 19,666,212.00 15,280,162.21 -3,585,762.21 11,694,400.00 40 40 11,694,400.00
Appliance Co., Ltd. method
Beijing Huashang
Bingshan Refrigeration Equity
14 490,000.00 723,759.70 -212,500.95 511,258.75 49 49
and Air-conditioning method
Machinery Co., Ltd.
51
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
Provision for Cash dividend of
Calculatio Shareholdin Voting right Provision for
No. Name Initial cost Beginning balance Changes Ending balance impairment of the the current
n method g（%） （%） impairment
current period period
Dalian Bingshan H2O3
Equity
15 Environmental 2,731,377.50 505,538.78 505,538.78 33 33
method
Solution Co. , Ltd.
Dalian Fuji Bingshan
Equity
16 Vending Machine Co., 66,416,364.00 53,771,650.25 2,091,301.35 55,862,951.60 49 49
method
Ltd.
Daliian Sanyo High-
Equity
17 Efficient Refrigeration 20,000,000.00 23,416,729.32 1,100,307.66 24,517,036.98 25 25
method
System Co., Ltd.
Zibo Electric Traction Cost
18 420,000.00 420,000.00 420,000.00 0.76 0.76 420,000.00 ,
Machine Co., Ltd. method
Liaoning Mec Group Cost
19 1,020,000.00 1,020,000.00 1,020,000.00 2 2
Co., Ltd. method
Suntek Technology Cost
20 3,000,000.00 3,000,000.00 -3,000,000.00 0.841 0.841 -3,000,000.00
Co., Ltd. method
Guotai Junan Cost
21 30,098,895.00 30,098,895.00 30,098,895.00 0.64 0.64 1,582,164.89 3,009,889.50
Securities Co., Ltd. method
Guotai Junan
Cost
22 Investment 3,057,316.00 3,057,316.00 3,057,316.00 0.22 0.22 2,688,605.91
method
Management Co., Ltd.
Thermo King
Container Temperature Cost 7,897,000.00
23 11,207,806.00 3,310,806.00 11,207,806.00 17.8 17.8
Control (Suzhou) Co., method
Ltd.
Liaoning Enterprises Cost
24 105,000.00 105,000.00 105,000.00 4.2 4.2 105,000.00
UnitedIndustryCo.,Ltd. method
Dalian Bingshan
Cost
25 Group Materials 250,000.00 250,000.00 250,000.00 5 5
method
Trading Co., Ltd.
Shenyang Sanyo Air- Cost
26 34,098,618.72 34,098,618.72 34,098,618.72 10 10 9,620,025.72
conditioner Co., Ltd. method
Dalian Bingshan
Cost
27 Group Refrigeration 20,036,841.62 20,036,841.62 20,036,841.62 100 100
method
Installation Co., Ltd.
Dalian Bingshan Cost
28 16,200,000.00 16,200,000.00 16,200,000.00 90 90
Group Sales Company method
Dalian Bingshan Metal Cost
29 12,501,344.60 12,501,344.60 12,501,344.60 64.25 64.25
Processing Co., Ltd. method
Dalian Bingshan Air- 1,050,000.00
Cost
30 Conditioning 36,506,570.00 36,506,570.00 36,506,570.00 70 70
method
Equipment Co., Ltd.
52
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
Provision for Cash dividend of
Calculatio Shareholdin Voting right Provision for
No. Name Initial cost Beginning balance Changes Ending balance impairment of the the current
n method g（%） （%） impairment
current period period
Dalian Bingshan
Cost
31 Guardian Automation 1,522,117.80 1,522,117.80 1,522,117.80 60 60 1,704,237.22
method
Co., Ltd.
Dalian Bingshan
Ryosetsu Quick Cost
32 5,745,097.40 5,745,097.40 5,745,097.40 70 70
Freezing Equipment method
Co., Ltd.
Shanghai Bingshan
Cost
33 Serial Refrigeration 900,000.00 900,000.00 900,000.00 45 45
method
Equipment Co., Ltd.
Wuhan New World
Cost
34 Refrigeration Industrial 17,980,400.00 17,980,400.00 17,980,400.00 51 51 5,100,000.00
method
Co., Ltd.
Wuhan New World
Refrigeration Air Cost
35 400,000.00 400,000.00 400,000.00 5 100
Conditioner method
Engineering Co., Ltd.
Dalian Daleng Metal Cost
36 20,000,000.00 20,000,000.00 20,000,000.00 100 100
Technology Co., Ltd. method
Total 1,164,704,603.88 -53,687,230.91 1,111,017,372.97 26,110,196.52 -3,000,000.00 97,850,190.57
(2)Listed with kinds of long term investment：
Item 30-06-2011 31-12-2010
Subsidiaries 131,792,371.42 131,792,371.42
Associates 882,316,546.60 940,463,807.28
Joint venture 16,650,819.23 17,087,789.46
Other long-term equity investments 80,257,635.72 75,360,635.72
Total 1,111,017,372.97 1,164,704,603.88
Less: Provision for impairment of
26,110,196.52 29,110,196.52
long-term equity investments
Net 1,084,907,176.45 1,135,594,407.36
(3) Provision for impairment on long-term equity investment
Name of invested company 30-06-2011 31-12-2010
Suntek Technology Co., Ltd. 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
53
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
Zibo Electric Traction Machine Co., Ltd. 420,000.00 420,000.00
Total 26,110,196.52 29,110,196.52
4 Revenue and cost of sales
(1)Business income and cost
Items 2011.01-06 2010.01-06
Operating income 638,661,382.66 454,115,027.56
Key business income 623,794,929.86 444,777,652.28
Other business income 14,866,452.80 9,337,375.28
Operating cost 538,378,671.32 379,273,217.63
Key business cost 524,346,961.48 370,415,880.23
Other business cost 14,031,709.84 8,857,337.40
(2) Key business（type）
2011.01-06 2010.01-06
Name of type
Revenue Cost Revenue Cost
Manufacturing 623,794,929.86 524,346,961.48 444,777,652.28 370,415,880.23
(3) Key business（product）
2011.01-06 2010.01-06
Name of product
Revenue Cost Revenue Cost
Refrigeration
623,794,929.86 524,346,961.48 444,777,652.28 370,415,880.23
equipments
(4) Key business (region)
2011.01-06 2010.01-06
Name of region
Revenue Cost Revenue Cost
North-east of
623,794,929.86 524,346,961.48 444,777,652.28 370,415,880.23
China
(5) Top five customers
Name Revenue Percentage of total business income
Customer 1 65,580,469.23 10.27%
Customer 2 14,647,015.67 2.29%
Customer 3 14,203,820.51 2.22%
Customer 4 13,598,290.60 2.13%
Customer 5 12,524,793.26 1.97%
Total 120,554,389.27 18.88%
5 Gain/ (loss) from investments
(1) Categery
Item 2011.01-06 2010.01-06
Gain arising from dividends of subsidiaries 10,864,126.72 9,844,359.84
Long-term equity investment income accounted for by using the equity method 35,342,590.94 41,891,755.43
Investment income due to disposal of the available-for-sale financial assets 17,384,712.48
Investment income due to disposal of the equity of associated company 49,768,242.00
Total 95,974,959.66 69,120,827.75
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
(2) Gain arising from dividends of subsidiaries
Name of invested company 2011.01-06 2010.01-06 Reason of changes
Guotai Junan Securities Co., Ltd. 3,009,889.50 3,009,889.50
Dalian Bingshan Air-Conditioning Equipment Co., Ltd. 1,050,000.00 2,945,196.92 Less distributed dividend
Dalian Bingshan Guardian Automation Co., Ltd. 1,704,237.22 1,339,273.42 More distributed dividend
Wuhan New World Refrigeration Industrial Co., Ltd. 5,100,000.00 2,550,000.00 More distributed dividend
Total 10,864,126.72 9,844,359.84
(3) Long-term equity investment income accounted for by using the equity method
Name of invested company 2011.01-06 2010.01-06 Reason of changes
Appreciation of copper, the main
Dalian Sanyo Refrigeration Co., Ltd. 2,158,424.61 3,568,180.72
raw material
Dalian Sanyo Cold-chain Co., Ltd 9,506,908.21 8,650,902.71 Increase of sales incomes
Grand Ocean-showa Auto Air Conditioning (Dalian) Co., Ltd. 6,870,056.64 6,396,938.04 Increase of sales incomes
Dalian Sanyo Compressor Co., Ltd. 23,641,535.89 27,064,762.76 Appreciation of materials
Dalian Bingshan Group Import & Export Co., Ltd. 604,760.26 1,582,576.62 Decrease of export revenue
Thermo King-Dalian Transport Refrigeration Co., Ltd. 198,827.75 Company transfer and liquidation
Dalian Grand Ocean Thermo King Transport Refrigeration
-338,998.05 -4,930.51 Decrease of sales incomes
Engineering Co., Ltd
Dalian Honjo Chemical Co., Ltd. 423,931.10 554,708.24 Appreciation of materials
Dalian Sanyo Meica Electronics Co., Ltd. 1,534,049.64 1,385,783.82 Increase of sales incomes
Dalian Sanyo Air-conditioner Co., Ltd. -8,014,452.98 -8,361,243.70
Dalian Sanyo Home Appliance Co., Ltd. -3,585,762.21 -617,896.47 Decrease of export revenue
Beijing Huashang Bingshan Refrigeration and Air-conditioning
-212,500.95 45,368.54 Decrease of sales incomes
Machinery Co., Ltd.
Dalian Fuji Bingshan Vending Machine Co., Ltd. 2,091,301.35 596,883.54 Increase of business performance
Daliian Sanyo High-Efficient Refrigeration System Co., Ltd. 1,100,307.66 1,065,773.36 Increase of sales incomes
Dalian Bingshan – P&A Recreation Development Engineering
-182,263.76 -20,726.72 Decrease of completed projects
Co., Ltd.
Dalian Jiale Vending Machine Operation Co., Ltd. -254,706.47 -214,153.27 Decrease of business performance
Total 35,342,590.94 41,891,755.43
(4)There was no severe constrict on the collection of the investment earnings.
6、Supplementary information of cash flow statement
Supplementary information 2011.01-06 2010.01-06
1. Reconciliation from the net profit to the cash flows from operating
activities
Net profit 96,599,744.96 71,432,862.91
Add: Provisions for assets impairment 10,388,939.23 7,067,857.17
Depreciation of fixed assets 10,379,575.86 11,065,269.28
Amortization of intangible assets 1,287,101.72 502,412.72
Amortization of long-term deferred expenses 60,473.82 60,473.82
Losses on disposal of fixed assets, intangible assets and other long-
-8,537.51 145,770.59
term assets
Losses on scrapping of fixed assets
55
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
Losses on variation of fair value
Finance expenses 1,536,457.49 1,452,408.75
Investment losses -95,974,959.66 -69,120,827.75
Decrease in deferred tax assets -2,112,770.92 -1,745,574.52
Increase in deferred tax liabilities 8,367,975.00 -3,213,455.92
Decrease in inventory 40,943,492.85 5,223,631.32
Decrease in operating receivables -82,293,859.24 -64,672,575.51
Increase in operating payables 89,995,516.35 32,215,983.49
Others
Net cash flows from operating activities 79,169,149.95 -9,585,763.65
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 502,041,279.72 261,282,879.03
Less: Cash at the beginning of the period 373,620,785.42 304,973,089.79
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 128,420,494.30 -43,690,210.76
Ⅻ. Other supplementary Information
1 Non-recurring profits and losses
Non-recurring gains and losses item 2011.01-06 2010.01-06
1. Gain/loss from disposal of non-current assets 49,838,201.53 -155,882.03
2.Tax return or exemption exceeding authority or without formal
174,754.25
authorization documents
3.Governmental subsidy written into current gains and losses 2,755,500.00 1,947,500.00
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. Investment income due to disposal of the available-for-sale financial
17,384,712.48
assets
8. Other net income and expense from non-operation 989,103.03 -2,141.37
Total 53,582,804.56 19,348,943.33
Less：Affected amount of income tax from non-recurring gains and
13,322,076.47 4,574,714.00
losses
Non-recurring gains and losses, net 40,260,728.09 14,774,229.33
Included: Attributable to minority interest 299,623.61 327,202.01
Attributable to parent company 39,961,104.48 14,447,027.32
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
2 Earnings per share
The weighted EPS
Item average ROE
(%) Basic EPS Diluted EPS
Net profit attributable to the Company’s ordinary
5.42 0.27 0.27
shareholders
Net profit attributable to the Company’s ordinary
shareholders after deducting non-recurring gains and 3.15 0.16 0.16
losses
ⅩⅢ、Details and reasons for the special change of the financial statements items
1、The special change items of balance sheet
Change Ratio
Items of balance sheet 2011.06.30 2010.12.31 Reasons
（%）
Account paid in advance 60,211,997.64 26,314,393.85 128.82 Increase of payment in advance
Dividend receivable 31,809,889.50 27,875.00 114016.20 Unmatured
Suntek Technology's marketable shares
Available for sale financial assets 42,279,900.00 5,808,000.00 627.96
transferred in the report period
Increase of the expenditure for relocation and
Project in construction 29,487,402.40 20,965,359.70 40.65
reconstruction of the casting workshop.
RMB 50 million yuan of the loan for
Short-term borrowings 13,000,000.00 63,000,000.00 -79.37 working capital repaid by Dalian
Refrigeration in the report period.
More sale and installation contracts signed in
Account received in advance 345,610,976.83 259,326,042.99 33.27 the report period, leading to increase of the
payment in advance.
Dividends paid to shareholders on schedule
Dividend payable 59,197,629.49 1,345,383.24 4300.06
in the report period.
Increase of the sales incomes, increase of the
payable VAT, and increase of the corporate
Tax payable 29,050,263.52 3,363,873.43 763.60
income tax for selling the equity in the report
period.
Increase of the available-for-sale financial
assets in the report period, leading to increase
Deferred tax liabilities 9,672,046.00 1,304,071.00 641.68 of the deferred income tax liability in
confirmation of the taxable temporary
differences.
Deferred incomes transferred into the profit
Other current liabilities 849,550.50 1,699,101.00 -50.00
in the report period.
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
2、The special change items of income statement
Change Ratio
Items of income statement 2011.01-06 2010.01-06 Reasons
（%）
Operating income 947,894,622.28 710,539,815.60 33.40 Increase of the market orders
Operating cost 769,799,892.96 570,457,579.49 34.94 Increase of the incomes, leading to increase of the costs
Business tax and surcharge paid by the joint venture
Taxes and associate charges 6,186,373.64 3,178,277.88 94.65
companies in the report period.
The equity of Thermo King-Dalian Transport
Gain from investment 88,120,722.44 62,308,657.41 41.43
Refrigeration Co., Ltd. sold out in the report period.
Increase of the deferred incomes transferred in the report
Non-business income 5,367,780.73 3,389,201.81 58.38
period.
Increase of the expense for income tax in the current
Income tax 17,136,843.41 6,883,751.91 148.95
period.
Change in the fair value of available-for-sale financial
Other comprehensive income 28,103,925.00 -9,640,367.75 391.52
assets
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Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
§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
August 25, 2011
59
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
CONSOLIDATED BALANCE SHEET
Prepared by Dalian Refrigeration Company Limited 30 June 2011 Unit: RMB Yuan
Items Ending balance Beginning Balance
Consolidation Parent company Consolidation Parent company
Current Assets:
Monetary funds 625,558,513.48 502,041,279.72 491,775,575.71 373,620,785.42
Transaction financial asset
Notes receivable 51,116,907.64 43,162,421.83 56,479,888.76 49,784,046.02
Account receivable 469,167,924.68 272,867,028.95 390,976,267.06 214,541,164.10
Account paid in advance 60,211,997.64 16,451,563.69 26,314,393.85 7,366,672.20
Dividend receivable 31,809,889.50 39,855,086.41 27,875.00 1,895,196.91
Other account receivable 21,890,515.73 8,431,676.42 18,701,693.90 8,559,690.90
Financial assets purchased under
agreements to resell
Inventories 358,817,715.66 184,588,288.17 347,022,118.02 225,531,781.02
Non-current assets due within 1
year
Other current assets
Total current assets 1,618,573,464.33 1,067,397,345.19 1,331,297,812.30 881,299,336.57
Non-current assets:
Available for sale financial assets 42,279,900.00 42,279,900.00 5,808,000.00 5,808,000.00
Held to maturity investments
Long-term account receivable
Long-term equity investment 954,429,947.53 1,084,907,176.45 1,005,117,178.44 1,135,594,407.36
Investing property
Fixed asset 349,141,969.58 185,503,507.20 358,624,031.52 192,591,756.92
Project in construction 29,487,402.40 18,982,940.94 20,965,359.70 11,475,403.00
Engineering material
Fixed asset disposal
Bearer biological asset
Oil assets
Intangible assets 172,256,227.70 102,780,993.13 174,288,663.96 104,068,094.85
Development expense
Goodwill
Long-term expense to be
3,189,236.10 2,791,874.39 3,258,475.26 2,852,348.21
apportioned
Deferred tax assets 14,842,788.49 8,130,996.77 13,021,002.41 6,018,225.85
Other non-current assets
Total non-current assets 1,565,627,471.80 1,445,377,388.88 1,581,082,711.29 1,458,408,236.19
Total assets 3,184,200,936.13 2,512,774,734.07 2,912,380,523.59 2,339,707,572.76
60
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
CONSOLIDATED BALANCE SHEET (CONTINUED)
Prepared by Dalian Refrigeration Company Limited 30 June 2011 Unit: RMB Yuan
Items Ending balance Beginning Balance
Consolidation Parent company Consolidation Parent company
Current liabilities:
Short-term borrowings 13,000,000.00 63,000,000.00 50,000,000.00
Transaction financial liabilities
Notes payable 81,689,210.16 55,585,935.06 112,902,026.83 82,819,852.85
Account payable 571,582,083.29 378,508,499.08 452,300,932.97 302,583,777.60
Account received in advance 345,610,976.83 183,487,653.53 259,326,042.99 155,923,536.16
Employee’s compensation payable 33,024,115.02 7,265,204.79 42,953,092.00 17,605,092.59
Tax payable 29,050,263.52 26,219,779.42 3,363,873.43 -97,556.60
Dividend payable 59,197,629.49 53,035,402.25 1,345,383.24 533,156.00
Other account payable 47,402,904.70 14,458,758.80 46,435,002.51 13,647,561.23
Non-current liabilities due within 1
year
Other current liabilities 849,550.50 292,550.50 1,699,101.00 585,101.00
Total current liabilities 1,181,406,733.51 718,853,783.43 983,325,454.97 623,600,520.83
Non-current liabilities:
Long-term borrowings 10,200,000.00 10,200,000.00 10,200,000.00 10,200,000.00
Debentures payable
Long-term payables
Specific purpose account payables
Provisions for contingent liabilities
Deferred tax liabilities 9,672,046.00 9,672,046.00 1,304,071.00 1,304,071.00
Other non-current liabilities 96,310,850.27 46,180,847.27 99,066,350.27 48,936,347.27
Total non-current liabilities 116,182,896.27 66,052,893.27 110,570,421.27 60,440,418.27
Total liabilities 1,297,589,629.78 784,906,676.70 1,093,895,876.24 684,040,939.10
Owner’s equity
Share capital 350,014,975.00 350,014,975.00 350,014,975.00 350,014,975.00
Capital surplus 618,887,110.25 617,658,182.63 590,783,185.25 589,554,257.63
Less: Treasury Stock
Reserved fund 438,738,721.64 438,738,721.64 421,079,823.34 421,079,823.34
General risk provision
Retained earnings 387,098,517.59 321,456,178.10 364,217,259.03 295,017,577.69
Foreign exchange difference
Total owners' equity attributable to
1,794,739,324.48 1,727,868,057.37 1,726,095,242.62 1,655,666,633.66
holding company
Minority interest 91,871,981.87 92,389,404.73
Total owner’s equity 1,886,611,306.35 1,727,868,057.37 1,818,484,647.35 1,655,666,633.66
Total liabilities and owner’s equity 3,184,200,936.13 2,512,774,734.07 2,912,380,523.59 2,339,707,572.76
61
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
CONSOLIDATED INCOME STATEMENT
Prepared by Dalian Refrigeration Company Limited 2011.01-06 Unit: RMB Yuan
Items 2011.01-06 2010.01-06
Consolidation Parent company Consolidation Parent company
I. Total sales 947,894,622.28 638,661,382.66 710,539,815.60 454,115,027.56
Including: Operating income 947,894,622.28 638,661,382.66 710,539,815.60 454,115,027.56
II. Total operating cost 922,596,452.46 627,343,017.40 691,522,267.58 449,628,101.16
Including: Operating cost 769,799,892.96 538,378,671.32 570,457,579.49 379,273,217.63
Taxes and associate charges 6,186,373.64 4,157,740.66 3,178,277.88 2,298,653.43
Selling and distribution expenses 45,768,200.68 23,199,346.74 36,503,985.41 17,693,996.75
Administrative expenses 87,783,419.66 50,537,300.73 70,766,347.69 42,267,087.72
Financial expense 1,388,315.87 681,018.72 1,365,956.32 1,027,288.46
Impairment loss 11,670,249.65 10,388,939.23 9,250,120.79 7,067,857.17
Add: gain from change in fair value
Gain/(loss) from investment 88,120,722.44 95,974,959.66 62,308,657.41 69,120,827.75
Including: income form investment
on affiliated enterprise and jointly 35,342,590.94 35,342,590.94 41,891,755.43 41,891,755.43
enterprise
Foreign exchange difference
III. Operating profit 113,418,892.26 107,293,324.92 81,326,205.43 73,607,754.15
Add: non-business income 5,367,780.73 3,901,563.72 3,389,201.81 2,117,125.23
Less: non-business expense 275,944.38 220,888.98 267,150.59 151,383.45
Including: loss from non-current
29,234.67 16,852.42 174,315.40 151,383.45
asset disposal
IV. Total profit 118,510,728.61 110,973,999.66 84,448,256.65 75,573,495.93
Less: Income tax 17,136,843.41 14,374,254.70 6,883,751.91 4,140,633.02
V. Net profit 101,373,885.20 96,599,744.96 77,564,504.74 71,432,862.91
Net profit attributable to parent
95,488,392.56 96,599,744.96 71,805,431.81 71,432,862.91
company
Minority shareholders’ gains and
5,885,492.64 5,759,072.93
losses
VI. Earnings per share
(I) basic earnings per share 0.27 0.21
(II) diluted earnings per share 0.27 0.21
Ⅶ. Other comprehensive income 28,103,925.00 28,103,925.00 -9,640,367.75 -9,640,367.75
Ⅷ. Total comprehensive income 129,477,810.20 124,703,669.96 67,924,136.99 61,792,495.16
Total comprehensive income
123,592,317.56 124,703,669.96 62,165,064.06 61,792,495.16
attributable to parent company
Total comprehensive income
5,885,492.64 5,759,072.93
attributable to minority shareholders
62
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
CONSOLIDATED CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Company Limited 2011.01-06 Unit: RMB Yuan
Items 2011.01-06 2010.01-06
Consolidation Parent company Consolidation Parent company
1. Cash flows arising from operating activities:
Cash received from sales of goods or rending of services 851,665,064.33 544,693,583.03 695,210,645.39 405,698,801.62
Refund of tax and fare received 264,021.53
Other cash received relating to operating activities 15,459,958.35 10,404,109.48 24,448,658.48 17,486,054.35
Sub-total of cash inflows 867,125,022.68 555,097,692.51 719,923,325.40 423,184,855.97
Cash paid for goods and services 534,625,960.59 337,781,384.62 533,949,335.81 313,665,949.87
Cash paid to and on behalf of employees 119,988,099.63 71,462,444.11 95,460,967.52 61,043,895.76
Tax and fare paid 55,853,826.61 35,662,947.71 40,810,734.24 27,417,810.49
Other cash paid relating to operating activities 65,987,160.29 31,021,766.12 49,536,254.45 30,642,963.50
Sub-total of cash outflows 776,455,047.12 475,928,542.56 719,757,292.02 432,770,619.62
Net cash flow from operating activities 90,669,975.56 79,169,149.95 166,033.38 -9,585,763.65
2. Cash Flows arising from Investment Activities:
Cash received from return of investments 6,313,174.25 6,313,174.25 1,715,976.33 1,715,976.33
Cash received from investment income 108,609,764.60 110,286,126.82 27,626,204.96 27,626,204.96
Net cash received from disposal of fixed assets,
169,484.45 63,504.45 28,820.51 16,000.00
intangible assets and other long-term assets
Proceeds from sale of subsidiaries and other operating
units
Other cash received relating to investment activities 2,755,500.00 2,755,500.00
Sub-total of cash inflows 117,847,923.30 119,418,305.52 29,371,001.80 29,358,181.29
Cash paid for acquiring fixed assets, intangible assets
14,950,489.68 10,733,774.62 78,651,920.33 72,210,146.00
and other long-term assets
Cash paid for acquiring investments 7,897,000.00 7,897,000.00
Other cash paid relating to investment activities
Sub-total of cash outflows 22,847,489.68 18,630,774.62 78,651,920.33 72,210,146.00
Net cash flow from investing activities 95,000,433.62 100,787,530.90 -49,280,918.53 -42,851,964.71
3. Cash Flows arising from Financing Activities:
Cash received from absorbing investment
Cash received from borrowings 3,610,000.00 62,700,000.00 60,200,000.00
Other proceeds relating to financing activities
Sub-total of cash inflows 3,610,000.00 62,700,000.00 60,200,000.00
Cash paid for settling debt 52,110,000.00 50,000,000.00 55,151,998.00 50,000,000.00
Cash paid for distribution of dividends or profit or
3,162,738.77 1,536,457.49 7,319,669.45 1,452,408.75
reimbursing interest
Including: Cash paid for distribution of dividends or
profit to minority shareholders by shareholding 1,136,158.14 294,000.00
companies
Other cash payments relating to financing activities 161,150.43 8,355.47
Sub-total of cash outflows 55,433,889.20 51,536,457.49 62,480,022.92 51,452,408.75
Net cash flow from financing activities -51,823,889.20 -51,536,457.49 219,977.08 8,747,591.25
4. Influence on cash due to fluctuation in exchange rate -63,582.21 270.94 -26,219.45 -73.65
5. Increase in cash and cash equivalents 133,782,937.77 128,420,494.30 -48,921,127.52 -43,690,210.76
Add : Cash and cash equivalents at year-begin 491,775,575.71 373,620,785.42 403,139,585.35 304,973,089.79
6.Cash and cash equivalents at the end of the year 625,558,513.48 502,041,279.72 354,218,457.83 261,282,879.03
63
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Dalian Refrigeration Company Limited 2011.01-06 Unit: RMB Yuan
2011.01-06
Owners’ equity attributable to parent company
Items Minority Total of
Lessen: General
share capital Capital suplus treasury Surplus reserve risk Retained profits Others equity owners’ equity
stock reserve
I. balance at the end of last
350,014,975.00 590,783,185.25 421,079,823.34 364,217,259.03 92,389,404.73 1,818,484,647.35
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
350,014,975.00 590,783,185.25 421,079,823.34 364,217,259.03 92,389,404.73 1,818,484,647.35
this year
III. Increase/ decrease of
amount in this year (“-” 28,103,925.00 17,658,898.30 22,881,258.56 -517,422.86 68,126,659.00
means decrease)
(I) Net profit 95,488,392.56 5,885,492.64 101,373,885.20
(II) Other comprehensive
28,103,925.00 28,103,925.00
income
Subtotal of (I)and (II) 28,103,925.00 95,488,392.56 5,885,492.64 129,477,810.20
(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 17,658,898.30 -72,607,134.00 -6,402,915.50 -61,351,151.20
1. Withdrawing surplus
17,658,898.30 -17,658,898.30
public reserve
2. Withdrawing general risk
reserve
3. Distribution to all owners
-52,502,246.25 -6,402,915.50 -58,905,161.75
(shareholders)
4. Others -2,445,989.45 -2,445,989.45
(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
350,014,975.00 618,887,110.25 438,738,721.64 387,098,517.59 91,871,981.87 1,886,611,306.35
period
64
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
2010.01-12
Owners’ equity attributable to parent company
Items Minority Total of
Lessen: General
share capital Capital surplus treasury Surplus reserve risk Retained profits Others equity owners’ equity
stock reserve
I. balance at the end of last
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
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. balance at the beginning of
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
this year
III. Increase/ decrease of
amount in this year (“-” -8,519,867.75 21,888,964.00 23,121,223.47 4,885,120.22 41,375,439.94
means decrease)
(I) Net profit 99,806,352.77 9,784,196.40 109,590,549.17
(II) Other comprehensive
-8,519,867.75 -8,519,867.75
income
Subtotal of (I)and (II) -8,519,867.75 99,806,352.77 9,784,196.40 101,070,681.42
(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 21,888,964.00 -76,685,129.30 -4,899,076.18 -59,695,241.48
1. Withdrawing surplus
21,888,964.00 -21,888,964.00
public reserve
2. Withdrawing general risk
reserve
3. Distribution to all owners
-52,502,246.25 -4,899,076.18 -57,401,322.43
(shareholders)
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
350,014,975.00 590,783,185.25 421,079,823.34 364,217,259.03 92,389,404.73 1,818,484,647.35
period
65
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Dalian Refrigeration Company Limited 2011.01-06 Unit: RMB Yuan
2011.01-06
Items Total of owners’
Lessen: treasury equity
share capital Capital surplus Surplus reserve Retained profits
stock
I. balance at the end of last
350,014,975.00 589,554,257.63 421,079,823.34 295,017,577.69 1,655,666,633.66
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. balance at the beginning of
350,014,975.00 589,554,257.63 421,079,823.34 295,017,577.69 1,655,666,633.66
this year
III. Increase/ decrease of
amount in this year (“-” 28,103,925.00 17,658,898.30 26,438,600.41 72,201,423.71
means decrease)
(I) Net profit 96,599,744.96 96,599,744.96
(II) Other comprehensive
28,103,925.00 28,103,925.00
income
Subtotal of (I)and (II) 28,103,925.00 96,599,744.96 124,703,669.96
(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 17,658,898.30 -70,161,144.55 -52,502,246.25
1. Withdrawing surplus
17,658,898.30 -17,658,898.30
public reserve
2. Withdrawing general risk
reserve
3. Distribution to all owners
-52,502,246.25 -52,502,246.25
(shareholders)
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
350,014,975.00 617,658,182.63 438,738,721.64 321,456,178.10 1,727,868,057.37
period
66
Dalian Refrigeration Co., Ltd. 2011 Semiannual Report
2010.01-12
Items Total of owners’
Lessen: treasury equity
share capital Capital surplus Surplus reserve Retained profits
stock
I. balance at the end of last
350,014,975.00 598,074,125.38 399,190,859.34 281,114,296.42 1,628,394,256.14
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. balance at the beginning of
350,014,975.00 598,074,125.38 399,190,859.34 281,114,296.42 1,628,394,256.14
this year
III. Increase/ decrease of
amount in this year (“-” -8,519,867.75 21,888,964.00 13,903,281.27 27,272,377.52
means decrease)
(I) Net profit 88,294,491.52 88,294,491.52
(II) Other comprehensive
-8,519,867.75 -8,519,867.75
income
Subtotal of (I)and (II) -8,519,867.75 88,294,491.52 79,774,623.77
(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 21,888,964.00 -74,391,210.25 -52,502,246.25
1. Withdrawing surplus
21,888,964.00 -21,888,964.00
public reserve
2. Withdrawing general risk
reserve
3. Distribution to all owners
-52,502,246.25 -52,502,246.25
(shareholders)
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
350,014,975.00 589,554,257.63 421,079,823.34 295,017,577.69 1,655,666,633.66
period
67
