DALIAN REFRIGERATION CO., LTD.
QUARTERLY REPORT FOR FIRST QUARTER, 2012
§1 Important Notes
1.1 The directors and the Board of Directors, the supervisors and the Supervisory Board, and
Senior staff members of Dalian Refrigeration Co., Ltd. (hereinafter referred to as the Company)
hereby confirm that there are no any important omissions, fictitious statements or serious
misleading carried in this report, and shall take all responsibilities, individual and/or joint, for the
reality, accuracy and completeness of the whole contents.
1.2 The Company’s quarterly financial report has not been audited.
1.3 Chairman of the Board of Directors of the Company Mr. Zhang He, Financial Majordomo and
the head of Accounting Department Ms. Xu Junrao hereby confirm that the financial report of the
quarterly report is true and complete.
1.4 This report is written respectively in Chinese and in English. In the event of any discrepancy
between the two above-mentioned versions, the Chinese version shall prevail.
§2 Company Profile
2.1 Major accounting data and financial indexes
By the end of the By the end of last Increase/decrease over
report period year the end of last year(%)
Total assets 2,963,417,185.48 3,053,660,921.27 -2.96%
Owner’s equity attributable to
1,714,830,736.58 1,748,822,103.82 -1.94%
shareholders of listed companies
Share capital 350,014,975.00 350,014,975.00 0.00%
Net assets per share attributable to
4.90 5.00 -2.00%
shareholders of listed companies
From beginning of Increase/decrease over
Report period year to the end of the same period of last
report period year(%)
Total operating income 416,590,690.21 391,702,895.55 6.35%
Net profit attributable to
18,510,879.01 14,537,035.74 27.34%
shareholders of listed companies
Net cash generated from operating
-101,030,858.72 32,412,671.07 -411.70%
activities
Net cash per share generated from
-0.29 0.09 -422.22%
operating activities
Basic earnings per share 0.05 0.04 25.00%
Diluted earnings per share 0.05 0.04 25.00%
Increase 0.23 percent
Return on equity 1.07% 0.84%
age points
ROE after deducting non-recurring Increase 0.24 percent
1.06% 0.82%
gains/losses age points
1
Amount from beginning of year to the end of
Item of non-recurring gains and losses
report period
Non-operating income and expense, net 310,891.33
Income tax effect -49,720.66
Minority shareholders’ gains and losses -115,679.44
Total 145,491.23
2.2 Total number and particulars of the shareholders by the end of the report period
Total shareholders at the end of report period 37,432
Particulars about shares held by the top ten negotiable shareholders not subject to conditional sales
Name of shareholder EOY (shares) Type
Dalian Bingshan Group Co., Ltd. 57,641,762 A
SANYO ELECTRIC CO., LTD. 35,001,500 B
Lion Value Growth Stock Fund 11,638,614 A
Lion Growth Stock Fund 10,909,348 A
DREYFUS GREATER CHINA FD 9,691,505 B
Xinhua Life Insurance Co., Ltd. －Dividend - Individual
2,555,359 A
Dividend - 018L-FH002 sz
Everbright Securities Co., Ltd. 2,508,261 A
SYWG MU New Power Stock Fund 2,500,000 A
Ping An Trust Co., Ltd. - Springs Capital 1,736,629 A
Dalian Industrial Development Investment Corp. 1,622,250 A
§3 Important Matters
3.1 Major changes in main financial items and indexes, and description of the cause
√ Applicable □ Inapplicable
1. The notes receivable were remarkably less than that at the beginning of the year mainly due to
increase of the sales incomes with increase of the amount of purchase and payment.
2. The amount of advances was remarkably more than that at the beginning of the year mainly due
to the advances for purchase of the equipment and for the project.
3. The wages & welfarism payable to employees was remarkably less than that at the beginning of
year mainly due to payment of the provision for wages & welfarism payable to employees allotted
at the end of the previous period in this period.
4. The dividend payable was remarkably more than that at the beginning of the year mainly due to
the Company drew dividend payable according to the resolutions of 2011 shareholders’ general
meeting.
5. The business tax and surcharge remarkably increased mainly due to increase of the VAT
payment.
6. The financial expenses remarkably decreased mainly due to decrease of the loans with less
interest expenditure.
7. The assets impairment loss remarkably increased mainly due to increase of the receivable
2
accounts of the subsidiary companies and increase of the provision for bad debits.
8. The returns on investment remarkably increased mainly due to increase of the profit made by
the joint-ventures and partnerships.
9. The net amount of cash flow generated in operating activities remarkably decreased mainly due
to decrease of orders with less advances.
3.2 Analytic description of the progress of major matters, their influence and solutions
3.2.1 Nonstandard opinions
□ Applicable √ Inapplicable
3.2.2 The Company's financing for its holding shareholders or associated parties or illegally
providing external guarantee
□ Applicable √ Inapplicable
3.2.3 Execution and performance of major contracts in daily operation
□ Applicable √ Inapplicable
3.2.4 Others
□ Applicable √ Inapplicable
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
Topic in
Type of
Reception Reception discussion and
Reception time received Received persons
location form provided
persons
information
Company’s
Jan. 8, 2012 By telephone Institution E Fund’s researchers
office
Company’s China Gold's and Taikang Asset’s
Feb. 6, 2012 By telephone Institution
office researchers
Lion Fund’s, Sinolink Securities', Information
Company’s CITIC Securities', CITIC China about the
Mar. 8, 2012 By telephone Institution
office Securities’and Taikang Asset’s fundamentals of
researchers the Company
Company’s Wanjia Assets' and Northeast
Mar. 13, 2012 By telephone Institution
office Securities' researchers
Company’s Hua An Fund’s and China Gold's
Mar. 14, 2012 By telephone Institution
office researchers
3
3.6 Derivative financial products investment
□Applicable √Inapplicable
3.7 Work plan for construction of the internal control for 2012
Work task Plan completion Responsible
schedule person
Define the range of implementing the internal
control in 2012, i. e. the subsidiaries and its
1 major business processes which were not 2012.6.30
included in the range of internal control in 2011,
identify any risks and prepare the list of risks. The Company's
Compare the existing system of the related internal control
2 subsidiary with the list of risks and find the 2012.8.31 leading group and
defects of internal control. its office
3 Prepare the internal control improvement plan. 2012.8.31
Put the internal control improvement into
4 2012.10.31
practice.
5 Check the improvement result. 2012.12.31
Disclose the information on performance of the The Company's
6 2013.4.30
internal control as required. board of directors
§4 Financial Report (attached)
Not audited.
Board of Directors of Dalian Refrigeration Co., Ltd.
April 23, 2012
4
BALANCE SHEET
Prepared by Dalian Refrigeration Co., Ltd. March 31, 2012 Unit: RMB
March 31, 2012 Dec.31, 2011
Assets Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 571,180,956.60 508,462,435.83 690,377,489.30 594,857,597.61
Transaction finance asset
Notes receivable 18,280,859.78 10,116,056.76 61,349,222.44 51,237,973.23
Accounts receivable 414,788,788.91 233,873,266.47 352,272,297.80 185,606,613.36
Accounts in advance 87,568,631.27 43,812,021.58 45,740,166.61 16,322,595.52
Dividend receivable 27,875.00 2,550,000.00
Other receivables 15,649,905.74 6,482,270.27 15,337,832.91 5,484,699.04
Inventories 383,799,122.33 161,115,868.06 424,394,356.21 203,119,832.06
Non-current asset due within
one year
Other current assets
Total current assets 1,491,268,264.63 963,861,918.97 1,589,499,240.27 1,059,179,310.82
Non-current assets:
Finance asset held available
for sales
Long-term equity investment 907,962,226.00 1,037,539,454.92 897,199,251.97 1,026,776,480.89
Investment property
Fixed assets 339,236,511.36 170,046,543.62 345,637,807.19 174,783,093.86
Construction in progress 38,300,094.42 28,030,959.18 34,202,656.33 26,480,045.35
Engineering material
Disposal of fixed asset
Intangible assets 167,728,875.96 99,473,585.73 168,752,848.07 100,108,883.04
Expense on Research and
Development
Goodwill
Long-term expenses to be
3,085,377.36 2,701,163.66 3,119,996.94 2,731,400.57
apportioned
Deferred income tax asset 15,835,835.75 9,879,538.78 15,249,120.50 9,879,538.78
Other non-current asset
Total non-current asset 1,472,148,920.85 1,347,671,245.89 1,464,161,681.00 1,340,759,442.49
Total assets 2,963,417,185.48 2,311,533,164.86 3,053,660,921.27 2,399,938,753.31
5
BALANCE SHEET (CONTINUED)
March 31, 2012 Dec.31, 2011
Liabilities and shareholders’ equity
Consolidation Parent Company Consolidation Parent Company
Current liabilities:
Short-term loans 13,000,000.00 13,000,000.00
Transaction financial liabilities
Notes payable 111,216,381.00 81,628,098.00 140,955,686.44 114,926,347.95
Accounts payable 498,334,836.41 324,843,827.30 484,167,682.03 319,035,202.48
Accounts received in advance 297,375,440.86 128,631,809.94 357,134,809.60 176,699,547.11
Wage payable 25,401,194.86 1,278,858.37 53,629,466.31 22,616,177.81
Taxes payable 21,102,911.82 17,286,246.71 19,008,551.29 14,406,741.42
Dividend payable 53,035,402.25 53,035,402.25 3,783,156.00 533,156.00
Other accounts payable 42,323,305.31 35,717,317.27 49,336,938.85 48,687,496.38
Non-current liabilities due within
one year
Other current liabilities 1,699,101.00 585,101.00 1,699,101.00 585,101.00
Total current liabilities 1,063,488,573.51 643,006,660.84 1,122,715,391.52 697,489,770.15
Non-current liabilities:
Long-term loans
Projected liabilities
Deferred income tax liabilities
Other non-current liabilities 86,174,753.75 37,437,252.75 84,713,255.75 35,697,252.75
Total non-current liabilities 86,174,753.75 37,437,252.75 84,713,255.75 35,697,252.75
Total liabilities 1,149,663,327.26 680,443,913.59 1,207,428,647.27 733,187,022.90
Shareholders’ equity
Share capital 350,014,975.00 350,014,975.00 350,014,975.00 350,014,975.00
Capital public reserve 586,837,221.82 585,608,294.20 586,837,221.82 585,608,294.20
Less: Inventory shares
Surplus public reserve 458,998,713.57 458,998,713.57 445,492,052.28 445,492,052.28
Retained profit 318,979,826.19 236,467,268.50 366,477,854.72 285,636,408.93
Total owner’s equity attributable to
1,714,830,736.58 1,631,089,251.27 1,748,822,103.82 1,666,751,730.41
parent company
Minority interests 98,923,121.64 97,410,170.18
Total owner’s equity 1,813,753,858.22 1,631,089,251.27 1,846,232,274.00 1,666,751,730.41
Total liabilities and shareholder’s equity 2,963,417,185.48 2,311,533,164.86 3,053,660,921.27 2,399,938,753.31
Legal representative: Zhang He Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao
6
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January-March, 2012 Unit: RMB
January-March, 2012 January-March, 2011
Items
Consolidation Parent Company Consolidation Parent Company
I. Total sales 416,590,690.21 270,964,645.51 391,702,895.55 253,198,029.96
Including: Operating income 416,590,690.21 270,964,645.51 391,702,895.55 253,198,029.96
II. Total operating cost 405,594,161.26 263,124,581.67 379,683,003.86 245,646,902.70
Including: Operating cost 340,008,362.48 231,160,863.83 317,853,432.18 215,509,662.82
Taxes and associate charges 2,667,562.08 2,104,896.33 1,564,240.09 770,149.20
Selling and distribution expenses 18,210,903.49 6,621,646.85 17,670,553.26 6,299,060.72
Administrative expenses 41,332,443.10 23,695,151.06 40,362,445.90 22,462,171.32
Financial expense -209,198.06 -457,976.40 707,074.84 605,858.64
Impairment loss 3,584,088.17 1,525,257.59
Add: gain from change in fair value
Gain/(loss) from investment 10,762,974.03 10,762,974.03 7,042,544.80 7,042,544.80
Including: income form investment on
affiliated enterprise and jointly 10,762,974.03 10,762,974.03 7,042,544.80 7,042,544.80
enterprise
Foreign exchange difference
III. Operating profit 21,759,502.98 18,603,037.87 19,062,436.49 14,593,672.06
Add: non-business income 581,182.40 262,648.20 1,045,415.13 108.41
Less: non-business expense 43,491.85 321.27 29,173.01 4,036.56
Including: loss from non-current asset
12,798.55 321.27 2,359.00
disposal
IV. Total profit 22,297,193.53 18,865,364.80 20,078,678.61 14,589,743.91
Less: Income tax 2,273,363.06 2,025,597.69 3,052,991.02 1,886,846.78
V. Net profit 20,023,830.47 16,839,767.11 17,025,687.59 12,702,897.13
Net profit attributable to parent
18,510,879.01 16,839,767.11 14,537,035.74 12,702,897.13
company
Minority shareholders’ gains and losses 1,512,951.46 2,488,651.85
VI. Earnings per share
(I) basic earnings per share 0.05 0.04
(II) diluted earnings per share 0.05 0.04
Ⅶ. Other comprehensive income 0.00 778,500.00 778,500.00
Ⅷ. Total comprehensive income 20,023,830.47 16,839,767.11 17,804,187.59 13,481,397.13
Total comprehensive income
18,510,879.01 16,839,767.11 15,315,535.74 13,481,397.13
attributable to parent company
Total comprehensive income
1,512,951.46 2,488,651.85
attributable to minority shareholders
Legal representative: Zhang He Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao
7
CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January-March, 2012 Unit: RMB
January-March, 2012 January-March, 2011
Items Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating activities:
Cash received from selling commodities and
300,997,253.96 170,783,982.00 408,869,620.25 255,280,986.92
providing labor services
Write-back of tax received
Other cash received concerning operating
9,718,581.10 6,453,994.48 9,851,456.95 6,582,649.99
activities
Subtotal of cash inflow arising from
310,715,835.06 177,237,976.48 418,721,077.20 261,863,636.91
operating activities
Cash paid for purchasing commodities and
263,608,866.42 168,811,635.20 260,442,075.71 147,160,027.10
receiving labor service
Cash paid to/for staff and workers 80,105,769.58 47,974,612.79 66,448,921.48 39,588,357.52
Taxes paid 37,562,124.14 24,453,539.89 21,893,482.43 12,596,763.62
Other cash paid concerning operating activities 30,469,933.64 14,006,315.72 37,523,926.51 18,316,500.95
Subtotal of cash outflow arising from
411,746,693.78 255,246,103.60 386,308,406.13 217,661,649.19
operating activities
Net cash flows arising from operating
-101,030,858.72 -78,008,127.12 32,412,671.07 44,201,987.72
activities
II. Cash flows arising from investing activities:
Cash received from recovering investment
Cash received from investment income 27,875.00 2,550,000.00 27,875.00
Net cash received from disposal of fixed,
1,966.00 1,966.00
intangible and other long-term assets
Other cash received concerning investing
activities
Subtotal of cash inflow from investing
27,875.00 2,550,000.00 29,841.00 1,966.00
activities
Cash paid for purchasing fixed, intangible and
6,291,298.54 1,637,023.00 5,832,708.30 3,409,194.62
other long-term assets
Cash paid for investment
Other cash paid concerning investing activities
Subtotal of cash outflow from investing
6,291,298.54 1,637,023.00 5,832,708.30 3,409,194.62
activities
Net cash flows arising from investing
-6,263,423.54 912,977.00 -5,802,867.30 -3,407,228.62
activities
III. Cash flows arising from financing
activities
Cash received from absorbing investment
Cash received from loans 1,000,000.00 1,500,000.00
8
Other cash received concerning financing
activities
Subtotal of cash inflow from financing
1,000,000.00 0.00 1,500,000.00 0.00
activities
Cash paid for settling debts
Cash paid for dividend and profit distributing
3,560,416.89 834,613.04 741,774.99
or interest paying
Other cash paid concerning financing activities 63,007.69 73,432.05
Subtotal of cash outflow from financing
3,623,424.58 0.00 908,045.09 741,774.99
activities
Net cash flows arising from financing
-2,623,424.58 0.00 591,954.91 -741,774.99
activities
IV. Influence on cash due to fluctuation in
21,174.14 -11.66 4,198.64 2.89
exchange rate
V. Net increase of cash and cash equivalents -109,896,532.70 -77,095,161.78 27,205,957.32 40,052,987.00
Add: Balance of cash and cash equivalents at
681,077,489.30 585,557,597.61 491,775,575.71 373,620,785.42
the period -begin
VI. Balance of cash and cash equivalents at the
571,180,956.60 508,462,435.83 518,981,533.03 413,673,772.42
period–end
Legal representative: Zhang He Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao
9
