DALIAN REFRIGERATION CO., LTD.
QUARTERLY REPORT FOR THIRD QUARTER, 2011
§1 Important Notes
1.1 The directors and the Board of Directors, the supervisors and the Supervisory Board, and Senior staff
members of Dalian Refrigeration Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are
no any important omissions, fictitious statements or serious misleading carried in this report, and shall take all
responsibilities, individual and/or joint, for the reality, accuracy and completeness of the whole contents.
1.2 The Company’s quarterly financial report has not been audited.
1.3 Chairman of the Board of Directors of the Company Mr. Zhang He, Financial Majordomo and the head of
Accounting Department Ms. Xu Junrao hereby confirm that the financial report of the quarterly report is true and
complete.
1.4 This report is written respectively in Chinese and in English. In the event of any discrepancy between the two
above-mentioned versions, the Chinese version shall prevail.
§2 Company Profile
2.1 Major accounting data and financial indexes
Increase/decrease over
2011.9.30 2010.12.31
2010.12.31(%)
Total assets 3,144,758,754.22 2,912,380,523.59 7.98%
Shareholder’s equity attributable to
1,806,684,743.89 1,726,095,242.62 4.67%
parent company
Share capital 350,014,975.00 350,014,975.00 0.00%
Net assets per share attributable to
5.16 4.93 4.67%
parent company
Increase/decrease Increase/decrease
2011.7-9 2011.1-9
over 2010.7-9(%) over 2010.1-9(%)
Total operating income 486,651,183.78 22.51% 1,434,545,806.06 29.50%
Net profit attributable to parent
19,789,144.41 -47.02% 115,277,536.97 5.61%
company
Net cash generated from operating
- - 88,983,268.05 67.67%
activities
Net cash per share generated from
- - 0.25 66.67%
operating activities
Basic earnings per share 0.06 -40.00% 0.33 6.45%
Diluted earnings per share 0.06 -40.00% 0.33 6.45%
Decrease 1.06 Increase 0.16
Return on equity 1.12% 6.53%
percentage points percentage points
ROE after deducting non-recurring Decrease 0.98 Decrease 1.95
0.98% 4.12%
gains/losses percentage points percentage points
Amount from beginning of year
Item of non-recurring gains and losses to the end of report period
Profit and loss from disposal of non-current assets 52,324,526.12
Government subsidies which were included in the current profits and losses 3,698,414.51
Other non-operating incomes and expenses except the above mentioned 197,458.84
Minority equity interests effects 0.00
Income tax effects -14,055,099.87
Total 42,165,299.60
1
2.2 Total number and particulars of the shareholders by the end of the report period
Total shareholders at the end of report period 35,829
Particulars about shares held by the top ten negotiable shareholders not subject to conditional sales
EORP
Name of shareholder Type
(shares)
Dalian Bingshan Group Co., Ltd. 57,641,762 A
SANYO ELECTRIC CO LTD 35,001,500 B
DREYFUS GREATER CHINA FD 16,238,818 B
Lion Growth Stock Fund 9,143,051 A
Lion Value Growth Stock Fund 8,161,573 A
SYWG MU New Power Stock Fund 7,277,401 A
Bosera Emerging Growth Stock Fund 3,987,600 A
SYWG MU Shengli Selected Stock Fund 2,776,337 A
Xinhua Life Insurance Co., Ltd. －Dividend - Individual Dividend -
2,555,359 A
018L-FH002 sz
Everbright Securities Co., Ltd. 2,508,261 A
§3 Important Matters
3.1 Major changes in main financial items and indexes, and description of the cause
√ Applicable □ Inapplicable
1. The accounts in advance was remarkably more than that at the beginning of the year mainly due
to increase of the order quantity and increase of the prepayment for raw materials by the
Company.
2. The dividend receivable was remarkably more than that at the beginning of the year mainly due
to that the associated companies have not begun to distribute the dividend.
3. Other receivables was remarkably more than that at the beginning of the year mainly due to
increase of the Company’s business volume and increase of the bid bond.
4. The available-for-sale financial assets was remarkably more than that at the beginning of the
year mainly due to transfer-in of Suntek Technology Co., Ltd.'s 2.73 million marketable shares
that were held by the Company.
5. The construction in progress was remarkably more than that at the beginning of the year mainly
due to relocation and reconstruction of the Casting Business Department.
6. The short-term loans was remarkably less than that at the beginning of the year mainly due to
repayment of the loan of 50 million yuan for working capital by the Company.
7. The accounts received in advance was remarkably more than that at the beginning of the year
mainly due to increase of the sale and installation contracts signed in the reporting period, leading
to increase of the accounts received in advance.
8. The liability of deferred income tax was remarkably more than that at the beginning of the year
mainly due to increase of the available-for-sale financial assets in the reporting period, leading to
increase of the liability of deferred income tax in confirmation of the taxable temporary
differences.
9. The assets impairment loss was remarkably increased over the same period of the previous
year mainly due to increase of the receivable accounts and increase of the provision for bad debits.
10. The investment income of joint-venture and partnership was remarkably decreased over the
same period of the previous year mainly due to rise in the price of raw materials and increase of
the tax burden, with higher influence on the benefit of joint-venture and partnership.
3.2 Analytic description of major matters, their influence and solutions
□ Applicable √ Inapplicable
2
3.3 Undertaking matters for trial sales of state shares and implementation
√ Applicable □Inapplicable
Except the immature condition of being implementation for management share incentive scheme,
Dalian Bingshan Group strictly perform the commitment in share reform.
3.4 Precautions on forecasting that by the beginning of year till the end of the next report period, the accumulated
net profit may be turned into loss or change greatly compared with that in the same period of the last year, and
description of the cause
□ Applicable √ Inapplicable
3.5 Other important events
3.5.1 Securities investment
□ Applicable √ Inapplicable
3.5.2 Table of investigation, communication, interview received
Date of Way of Main content of
Place of reception Guest received
reception reception discussion
Hong Kong Hamon Investment's
July 19, 2011 Company’s office By telephone
researchers
SYWG MU Fund’s, Northeast Securities'
Aug. 25, 2011 Company’s office By telephone
and Taikang Life Insurance’s researchers
Field
Aug. 30, 2011 Company’s office Lion Fund’s researchers
investigation Information about
Field the fundamentals of
Sep. 01, 2011 Company’s office Sealand Securities’ researcher
investigation the Company
SYWG MU Fund’s and GF Securities’
Sep. 08, 2011 Company’s office By telephone
researchers
Sep. 26, 2011 Company’s office By telephone CITIC Securities’ researchers
Field China Gold's and Industrial
Sep. 28, 2011 Company’s office
investigation Securities‘ researchers
3.6 Derivatives investment
□ Applicable √ Inapplicable
§4 Financial Report (attached)
Not audited.
Board of Directors of Dalian Refrigeration Co., Ltd.
October 27, 2011
3
BALANCE SHEET
Prepared by Dalian Refrigeration Co., Ltd. September 30, 2011 Unit: RMB
September 30, 2011 Dec.31, 2010
Assets
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 562,972,977.45 471,750,574.70 491,775,575.71 373,620,785.42
Transaction finance asset
Notes receivable 49,421,580.60 30,323,370.00 56,479,888.76 49,784,046.02
Accounts receivable 465,267,162.18 264,428,346.33 390,976,267.06 214,541,164.10
Accounts in advance 62,202,102.22 20,545,178.43 26,314,393.85 7,366,672.20
Dividend receivable 28,800,000.00 34,950,000.00 27,875.00 1,895,196.91
Other receivables 27,197,709.01 9,569,599.68 18,701,693.90 8,559,690.90
Inventories 386,984,486.92 192,550,760.34 347,022,118.02 225,531,781.02
Non-current asset due within
one year
Other current assets
Total current assets 1,582,846,018.38 1,024,117,829.48 1,331,297,812.30 881,299,336.57
Non-current assets:
Finance asset held available for
31,821,600.00 31,821,600.00 5,808,000.00 5,808,000.00
sales
Held-to-maturity securities
Long-term account receivable
Long-term equity investment 964,402,194.93 1,094,879,423.85 1,005,117,178.44 1,135,594,407.36
Investment property
Fixed assets 342,181,505.76 180,141,247.90 358,624,031.52 192,591,756.92
Construction in progress 36,780,049.32 21,757,427.66 20,965,359.70 11,475,403.00
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 169,258,199.95 100,172,781.26 174,288,663.96 104,068,094.85
Expense on Research and
Development
Goodwill
Long-term expenses to be
3,154,616.52 2,761,637.48 3,258,475.26 2,852,348.21
apportioned
Deferred income tax asset 14,314,569.36 8,130,996.77 13,021,002.41 6,018,225.85
Other non-current asset
Total non-current asset 1,561,912,735.84 1,439,665,114.92 1,581,082,711.29 1,458,408,236.19
Total assets 3,144,758,754.22 2,463,782,944.40 2,912,380,523.59 2,339,707,572.76
4
BALANCE SHEET (CONTINUED)
Liabilities and shareholders’ September 30, 2011 Dec.31, 2010
equity Consolidation Parent Company Consolidation Parent Company
Current liabilities:
Short-term loans 13,000,000.00 63,000,000.00 50,000,000.00
Transaction financial liabilities
Notes payable 77,259,470.95 57,498,249.95 112,902,026.83 82,819,852.85
Accounts payable 557,530,173.37 368,078,771.97 452,300,932.97 302,583,777.60
Accounts received in advance 379,126,900.72 214,523,915.65 259,326,042.99 155,923,536.16
Wage payable 40,862,684.33 12,684,883.95 42,953,092.00 17,605,092.59
Taxes payable 4,527,141.15 -132,826.95 3,363,873.43 -97,556.60
Dividend payable 5,883,156.00 533,156.00 1,345,383.24 533,156.00
Other accounts payable 51,134,671.64 13,149,277.85 46,435,002.51 13,647,561.23
Non-current liabilities due within
one year
Other current liabilities 849,550.50 292,550.50 1,699,101.00 585,101.00
Total current liabilities 1,130,173,748.66 666,627,978.92 983,325,454.97 623,600,520.83
Non-current liabilities:
Long-term loans 10,200,000.00 10,200,000.00 10,200,000.00 10,200,000.00
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities
Deferred income tax liabilities 7,057,471.00 7,057,471.00 1,304,071.00 1,304,071.00
Other non-current liabilities 95,089,446.76 45,237,932.76 99,066,350.27 48,936,347.27
Total non-current liabilities 112,346,917.76 62,495,403.76 110,570,421.27 60,440,418.27
Total liabilities 1,242,520,666.42 729,123,382.68 1,093,895,876.24 684,040,939.10
Shareholders’ equity
Share capital 350,014,975.00 350,014,975.00 350,014,975.00 350,014,975.00
Capital public reserve 611,043,385.25 609,814,457.63 590,783,185.25 589,554,257.63
Surplus public reserve 438,738,721.64 438,738,721.64 421,079,823.34 421,079,823.34
Retained profit 406,887,662.00 336,091,407.45 364,217,259.03 295,017,577.69
Total owner’s equity attributable to
1,806,684,743.89 1,734,659,561.72 1,726,095,242.62 1,655,666,633.66
parent company
Minority interests 95,553,343.91 92,389,404.73
Total owner’s equity 1,902,238,087.80 1,734,659,561.72 1,818,484,647.35 1,655,666,633.66
Total liabilities and shareholder’s equity 3,144,758,754.22 2,463,782,944.40 2,912,380,523.59 2,339,707,572.76
5
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. July-September, 2011 Unit: RMB
July-September, 2011 July-September, 2010
Items
Consolidation Parent Company Consolidation Parent Company
I. Total sales 486,651,183.78 302,190,778.57 397,233,345.08 254,573,624.38
Including: Operating income 486,651,183.78 302,190,778.57 397,233,345.08 254,573,624.38
II. Total operating cost 473,962,391.22 300,895,392.45 394,420,896.78 258,470,336.35
Including: Operating cost 402,043,914.76 260,902,009.99 325,758,654.70 217,706,982.87
Taxes and associate charges 1,240,717.64 646,957.74 1,289,656.62 829,317.43
Selling and distribution expenses 27,360,825.31 13,815,210.80 27,175,310.32 16,389,542.10
Administrative expenses 43,331,503.73 25,803,752.88 42,175,284.59 23,096,579.33
Financial expense 431,302.99 -272,538.96 1,039,557.55 447,914.62
Impairment loss -445,873.21 -3,017,567.00
Add: gain from change in fair value
Gain/(loss) from investment 10,424,147.40 10,424,147.40 34,129,799.03 34,129,799.03
Including: income form investment on
10,124,147.40 10,124,147.40 33,829,799.03 33,829,799.03
affiliated enterprise and jointly enterprise
Foreign exchange difference
III. Operating profit 23,112,939.96 11,719,533.52 36,942,247.33 30,233,087.06
Add: non-business income 3,826,297.82 3,511,561.80 5,674,847.81 5,305,930.38
Less: non-business expense 170,046.19 19,805.28 66,097.70 480.78
Including: loss from non-current asset
92,505.28 19,805.28 5,741.20 480.78
disposal
IV. Total profit 26,769,191.59 15,211,290.04 42,550,997.44 35,538,536.66
Less: Income tax 3,007,842.74 576,060.69 2,753,907.45 1,036,866.02
V. Net profit 23,761,348.85 14,635,229.35 39,797,089.99 34,501,670.64
Net profit attributable to parent company 19,789,144.41 14,635,229.35 37,352,001.56 34,501,670.64
Minority shareholders’ gains and losses 3,972,204.44 2,445,088.43 0.00
VI. Earnings per share
(I) basic earnings per share 0.06 0.10
(II) diluted earnings per share 0.06 0.10
Ⅶ. Other comprehensive income -7,843,725.00 -7,843,725.00 1,552,500.00 1,552,500.00
Ⅷ. Total comprehensive income 15,917,623.85 6,791,504.35 41,349,589.99 36,054,170.64
Total comprehensive income attributable
11,945,419.41 6,791,504.35 38,904,501.56 36,054,170.64
to parent company
Total comprehensive income attributable
3,972,204.44 2,445,088.43 0.00
to minority shareholders
6
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January-September, 2011 Unit: RMB
January-September, 2011 January-September, 2010
Items
Consolidation Parent Company Consolidation Parent Company
I. Total sales 1,434,545,806.06 940,852,161.23 1,107,773,160.68 708,688,651.94
Including: Operating income 1,434,545,806.06 940,852,161.23 1,107,773,160.68 708,688,651.94
II. Total operating cost 1,396,558,843.68 928,238,409.85 1,085,943,164.36 708,098,437.51
Including: Operating cost 1,171,843,807.72 799,280,681.31 896,216,234.19 596,980,200.50
Taxes and associate charges 7,427,091.28 4,804,698.40 4,467,934.50 3,127,970.86
Selling and distribution expenses 73,129,025.99 37,014,557.54 63,679,295.73 34,083,538.85
Administrative expenses 131,114,923.39 76,341,053.61 112,941,632.28 65,363,667.05
Financial expense 1,819,618.86 408,479.76 2,405,513.87 1,475,203.08
Impairment loss 11,224,376.44 10,388,939.23 6,232,553.79 7,067,857.17
Add: gain from change in fair value
Gain/(loss) from investment 98,544,869.84 106,399,107.06 96,438,456.44 103,250,626.78
Including: income form investment on
45,466,738.34 45,466,738.34 75,721,554.46 75,721,554.46
affiliated enterprise and jointly enterprise
Foreign exchange difference
III. Operating profit 136,531,832.22 119,012,858.44 118,268,452.76 103,840,841.21
Add: non-business income 9,194,078.55 7,413,125.52 9,064,049.62 7,423,055.61
Less: non-business expense 445,990.57 240,694.26 333,248.29 151,864.23
Including: loss from non-current asset
121,739.95 36,657.70 180,056.60 151,864.23
disposal
IV. Total profit 145,279,920.20 126,185,289.70 126,999,254.09 111,112,032.59
Less: Income tax 20,144,686.15 14,950,315.39 9,637,659.36 5,177,499.04
V. Net profit 125,135,234.05 111,234,974.31 117,361,594.73 105,934,533.55
Net profit attributable to parent company 115,277,536.97 111,234,974.31 109,157,433.37 105,934,533.55
Minority shareholders’ gains and losses 9,857,697.08 8,204,161.36
VI. Earnings per share
(I) basic earnings per share 0.33 0.31
(II) diluted earnings per share 0.33 0.31
Ⅶ. Other comprehensive income 20,260,200.00 20,260,200.00 -8,087,867.75 -8,087,867.75
Ⅷ. Total comprehensive income 145,395,434.05 131,495,174.31 109,273,726.98 97,846,665.80
Total comprehensive income attributable
135,537,736.97 131,495,174.31 101,069,565.62 97,846,665.80
to parent company
Total comprehensive income attributable
9,857,697.08 8,204,161.36
to minority shareholders
7
CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January -September , 2011 Unit: RMB
January -September, 2011 January -September, 2010
Items
Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating activities:
Cash received from selling commodities and
1,286,459,044.04 838,491,012.02 1,133,165,411.28 656,091,635.83
providing labor services
Write-back of tax received 265,906.95
Other cash received concerning operating activities 47,911,778.96 39,071,650.30 48,504,311.30 30,187,959.47
Subtotal of cash inflow arising from operating
1,334,370,823.00 877,562,662.32 1,181,935,629.53 686,279,595.30
activities
Cash paid for purchasing commodities and
865,163,841.23 546,115,899.90 829,242,149.35 484,902,519.38
receiving labor service
Cash paid to/for staff and workers 164,434,927.81 95,191,446.25 135,076,067.59 84,613,610.19
Taxes paid 109,553,977.55 79,979,065.77 73,887,467.26 50,786,232.68
Other cash paid concerning operating activities 106,234,808.36 57,634,023.80 90,660,975.59 48,803,427.21
Subtotal of cash outflow arising from
1,245,387,554.95 778,920,435.72 1,128,866,659.79 669,105,789.46
operating activities
Net cash flows arising from operating
88,983,268.05 98,642,226.60 53,068,969.74 17,173,805.84
activities
II. Cash flows arising from investing activities:
Cash received from recovering investment 6,313,174.25 6,313,174.25 1,715,976.33 1,715,976.33
Cash received from investment income 109,061,664.60 112,633,223.73 58,936,094.46 62,825,367.88
Net cash received from disposal of fixed, intangible
2,887,884.09 2,479,744.22 49,230.51 36,000.00
and other long-term assets
Net cash received from disposal of subsidiaries and
other units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 118,262,722.94 121,426,142.20 60,701,301.30 64,577,344.21
Cash paid for purchasing fixed, intangible and other
22,453,815.52 11,594,774.62 89,952,076.37 72,265,936.00
long-term assets
Cash paid for investment 7,897,000.00 7,897,000.00
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 30,350,815.52 19,491,774.62 89,952,076.37 72,265,936.00
Net cash flows arising from investing activities 87,911,907.42 101,934,367.58 -29,250,775.07 -7,688,591.79
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 3,960,000.00 63,500,000.00 60,200,000.00
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 3,960,000.00 63,500,000.00 60,200,000.00
Cash paid for settling debts 53,960,000.00 50,000,000.00 55,680,497.00 50,000,000.00
Cash paid for dividend and profit distributing or
55,427,907.48 52,446,328.06 63,707,368.67 54,665,700.00
interest paying
Other cash paid concerning financing activities 176,174.70 45,044.43
Subtotal of cash outflow from financing activities 109,564,082.18 102,446,328.06 119,432,910.10 104,665,700.00
Net cash flows arising from financing activities -105,604,082.18 -102,446,328.06 -55,932,910.10 -44,465,700.00
IV. Influence on cash due to fluctuation in exchange
-93,691.55 -476.84 -21,567.66 -236.93
rate
V. Net increase of cash and cash equivalents 71,197,401.74 98,129,789.28 -32,136,283.09 -34,980,722.88
Add: Balance of cash and cash equivalents at the
491,775,575.71 373,620,785.42 403,139,585.35 304,973,089.79
period -begin
VI. Balance of cash and cash equivalents at the
562,972,977.45 471,750,574.70 371,003,302.26 269,992,366.91
period–end
8
