Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
Dalian Refrigeration Co., Ltd.
2012 Semiannual Report
CONTENTS
§1 Important Notes………………………………………………………………………2
§2 Comp any Profile…………………………………………………………………2
§3 Summary of Accounting Data and Business Data……………………………………3
§4 Changes in Share Capital and Particulars about Shareholders…………………… 5
§5 Directors, Supervisors, Senior Staff Members and Employees of the Company……7
§6 Report of the Board of Directors……………………………………………………11
§7 Significant Events……………………………………………………………………15
§8 Financial Report………………………………………………………………………21
§9 Contents of Reference Documents……………………………………………………68
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
DALIAN REFRIGERATION CO., LTD.
2012 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 All the directors attended the related meeting of the Board of Directors of the Company.
1.3 The Company’s semiannual financial report has not been audited.
1.4 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
Legal name in Chinese 大连冷冻机股份有限公司
Legal English name and abbreviation Dalian Refrigeration Co., Ltd. DRC
Legal representative Zhang He
Registered address and office address 888 Xinan Road, Shahekou District, Dalian
Post code 116033
Internet web site of the Company www.daleng.cn
E-mail of the Company 000530@bingshan.com
Newspapers selected by the Company for China Securities Daily, Hong Kong
information disclosure Commercial Daily
Website designated by China Securities
http://www.cninfo.com.cn
Regulatory Commission for annual report
Place where annual report is kept Company’s Securities Dept.
2.2 Contact person and method
Authorized representative in charge
Secretary of the Board of Directors
of securities affairs
Name Ms. Xu Junrao Mr. Song Wenbao
Contact address Accounting Department of Dalian Securities Department of Dalian
Refrigeration Co., Ltd. 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. 2012 Semiannual Report
§3 Major Accounting Data and Financial Indexes
3.1 Summary of the accounting data and indexes
Unit: RMB yuan
Increase/decrease compared with
Report period (from Same period in
Summary of the accounting data the same period of the last year
Jan. through Jun.) the last year
(%)
Operating revenue 851,218,300.53 947,894,622.28 -10.20%
Operating profit 66,150,849.41 113,418,892.26 -41.68%
Total profit 72,456,490.00 118,510,728.61 -38.86%
Net profit attributable to shareholders of
66,392,427.44 95,488,392.56 -30.47%
listed companies
Net profit belonging to the shareholders of
listed companies after the deduction of non- 63,276,376.07 55,527,288.08 13.96%
recurring profit and loss
Net cash flow from operating activities -127,635,520.05 90,669,975.56 -240.77%
End of this report Increase/decrease compared with
End of last year
period the end of last year (%)
Total assets 2,874,137,215.51 3,053,660,921.27 -5.88%
Owner's equity attributable to shareholders
1,760,238,072.86 1,748,822,103.82 0.65%
of listed companies
Share capital 350,014,975 350,014,975 0.00%
Increase/decrease compared with
Report period (from Same period in
Summary of the financial indexes the same period of the last year
Jan. through Jun.) the last year
(%)
Basic earning per share 0.19 0.27 -29.63%
Diluted earnings per share 0.19 0.27 -29.63%
Basic earning per share after deduction of
0.18 0.16 12.50%
incidental profit and loss
Fully diluted return on net asset yield 3.77% 5.32% Decrease 1.55 percentage points
Weighted average return on net asset yield 3.81% 5.42% Decrease 1.61 percentage points
Fully diluted return on net asset after
3.59% 3.09% Increase 0.50 percentage points
deduction of incidental profit and loss
Weighted average return on net asset after
3.63% 3.15% Increase 0.48 percentage points
deduction of incidental profit and loss
Net cash flow from operating activities per
-0.36 0.26 -238.46%
share
End of this report Increase/decrease compared with
End of last year
period the end of last year (%)
Per share net assets belonging to the
5.03 5.00 0.60%
shareholders of listed companies
Ratio of liabilities to assets 35.47% 39.54% Decrease 4.07 percentage points
3.2 Difference between applications of Chinese accounting standards and of the international
accounting standards
None
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
3.3 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 -178,586.55
Government subsidies which were included in the current profits and losses 10,500.00
Other non-operating incomes and expenses except the above mentioned 4,541,677.98
Minority interests effects -218,761.87
Income tax effects -1,038,778.19
Total 3,116,051.37
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
§4 Changes in Share Capital and Particulars about Shareholders
4.1 Change in share capital
Statement on changes in capital stock
□ Applicable √ Not applicable
Statement on changes in shares with sale restriction
□ Applicable √ Not applicable
4.2. 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 39,937
Particulars about the shareholding by the top ten shareholders
Number of
Total Number of
Sharehol shares with
Name of shareholder Nature of shareholder number of pledged or
ding ratio trading limited
shares frozen shares
conditions
Domestic non-state-owned
Dalian Bingshan Group Co., Ltd. 21.96% 76,855,683 19,213,921
legal person
Sanyo Electric Co., Ltd. Overseas legal person 10.00% 35,001,500
Domestic non-state-owned
Lion Value Growth Stock Fund 3.33% 11,638,614
legal person
Domestic non-state-owned
Lion Growth Stock Fund 2.22% 7,762,048
legal person
Xinhua Life Insurance Co., Ltd. －Dividend Domestic non-state-owned
0.73% 2,555,359
- Individual Dividend - 018L-FH002 sz legal person
Domestic non-state-owned
Everbright Securities Co., Ltd. 0.72% 2,508,261
legal person
Dalian Industrial Development Investment Domestic non-state-owned
0.46% 1,622,250
Corp. legal person
Shanghai HK Wanguo Securities Overseas legal person 0.45% 1,584,513
Domestic non-state-owned
CSC Assets Management Co., Ltd. 0.45% 1,575,000
legal person
Jiangxi International Trust Co., Ltd.'s Funds Domestic non-state-owned
0.43% 1,500,000
Trust (Jinshi 93) legal person
Particulars about the shareholding by the top ten shareholders without trading limited conditions
Number of shares without trading limited
Name of shareholder Type of share
conditions
Dalian Bingshan Group Co., Ltd. 57,641,762 RMB common shares
Sanyo Electric Co., Ltd. 35,001,500 Domestically listed foreign shares
Lion Value Growth Stock Fund 11,638,614 RMB common shares
Lion Growth Stock Fund 7,762,048 RMB ordinary shares
Xinhua Life Insurance Co., Ltd. －Dividend
2,555,359 RMB ordinary shares
- Individual Dividend - 018L-FH002 sz
Everbright Securities Co., Ltd. 2,508,261 RMB ordinary shares
Dalian Industrial Development Investment
1,622,250 RMB ordinary shares
Corp.
Shanghai HK Wanguo Securities 1,584,513 Domestically listed foreign shares
CSC Assets Management Co., Ltd. 1,575,000 RMB ordinary shares
Jiangxi International Trust Co., Ltd.'s Funds
1,500,000 RMB common shares
Trust (Jinshi 93)
Description of the association
Dalian Bingshan Group Co., Ltd. retains the association relationship with Sanyo Electric
relationship between the above
Co., Ltd. among the above shareholders. Sanyo Electric Co., Ltd. holds 30% of Dalian
shareholders or of the acting in Bingshan Group Co., Ltd.'s equity.
concert
4.3 Changes in the controlling shareholder and actual controllers
□Applicable √ Not applicable
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
4.4 Introduction of especial situation for controlling shareholder and other actual controller
The holding shareholder of the Company is Dalian Bingshan Group Co., Ltd. That company
has the registered capital of 140.6 million yuan and is operating as a Sino-foreign joint
venture company. Its legal representative is Zhang He. Its business scope covers research &
development, manufacture, sale, service and installation of the products such as industrial
refrigerators, freezers and refrigerators, large-, mid- and small-size air-conditioners,
petrochemical equipment, electronic and electric appliances, household appliances and
environment protection equipment.
The actual controller of the Company is State-owned Assets Supervision and Administration
Commission of Dalian Municipality Government.
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
§5 Particulars about the Directors, Supervisors and Senior Staff Members
5.1 Particulars about changes in shares held by directors, supervisors and senior staff members
Share Share
Name Sex Position Age Term of duty
at BOY at EOY
Directors (9 persons):
2009.5—
Zhang He M Chairman 75 33,345 33,345
2012.5
2009.5—
Mu Chuanjiang M Vice chairman 63 29,445 29,445
2012.5
2009.5—
Yang Bin M Director 56 0 0
2012.5
2009.5—
Xu Junrao F Director 49 3,900 3,900
2012.5
Hidetoshi 2009.5—
M Director 60 0 0
Arima 2012.5
2009.5—
Wang Weijie M Director 50 0 0
2012.5
Independent 2009.7—
Wang Huiquan M 69 0 0
director 2012.5
Independent 2009.7—
Xing Tiancai M 52 0 0
director 2012.5
Independent 2009.5—
Liu Caiping F 58 0 0
director 2012.5
Supervisors (3 persons):
2009.5—
Yu Fuchun M Chairman 54 10,140 10,140
2012.5
2009.5—
Men Yuesheng M Supervisor 60 975 975
2012.5
2009.5—
Mao Chunhua F Supervisor 48 0 0
2012.5
Senior staff members:
General 2009.5—
Zhang He M 75 33,345 33,345
manager 2012.5
Standing deputy 2009.5—
Yang Bin M 56 0 0
general manager 2012.5
Deputy general 2009.5—
Zhang Hongzhi M 54 27,462 27,462
manager 2012.5
Deputy general 2009.5—
Wang Dekun M 61 18,525 18,525
manager 2012.5
Deputy general 2009.5—
Wang Zhiqiang M 51 0 0
manager 2012.5
Deputy general 2009.5—
Hu Xitang M 45 0 0
manager 2012.5
Financial
majordomo 2009.5—
Xu Junrao F 49 3,900 3,900
secretary of 2012.5
BOD
5.2 The brief incumbency history of directors, supervisors and senior staff members
The directors and supervisors who hold positions in the shareholders’ companies: Zhang He holding
the position of the chairman of Dalian Bingshan Group Co., Ltd.; Mu Chuanjiang holding the
position of the general manager of Dalian Bingshan Group Co., Ltd.
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
The brief incumbency history of each of the present directors, supervisors and senior staff members
and their holding or concurrently holding positions other than in the shareholder’s own unit:
Holding positions or concurrently holding positions of
Name Brief incumbency history
units other than the shareholder’s own unit
The chairman of Dalian Bingshan Group Imp. & Exp.
Co., Ltd.; the chairman of Dalian Bingshan Metal
Processing Co., Ltd.; the chairman of Dalian Jiale
Vending Machine Operation Co., Ltd.; the chairman of
Dalian Grand Ocean Thermo King Transport
Having acted as the vice chief engineer,
Refrigeration Engineering Co., Ltd.; the chairman of
Zhang He the plant manager, and the general
Dalian Sanyo Meica Electronics Co., Ltd.; the chairman
manager and chairman of the company.
of Dalian Sanyo Home Appliance Co., Ltd.; the
chairman of Dalian Sanyo High-Efficient Refrigeration
System Co., Ltd.; the chairman of Dalian Bingshan
Group Cold-Drink Equipment Co., Ltd.; and the
chairman of Dalian Daleng Metal Processing Co., Ltd.
Having acted as the plant deputy
The Chairman of Board of Directors of Linde
Mu manager, the deputy general manager,
Engineering (Dalian) Co., Ltd; and the Chairman of
Chuanjiang and the general manager and vice
Wuhan New World Refrigeration Industrial Co., Ltd.
chairman of the company.
The chairman of Beijing Bingshan Package Refrigerator
Having acted as the chief of the Design
& Air Conditioner Co., Ltd.; the chairman of Beijing
Dept., the chief of the Business
Huashang Bingshan Package Refrigerator & Air
Planning Dept., the assistant to the
Conditioner Co., Ltd.; the chairman of Dalian Bingshan
Yang Bin general manager, the deputy general
Group Sales Co., Ltd.; the chairman of Shanghai
manager, the standing deputy general
Bingshan Package Refrigerator & Air Conditioner Sales
manager and the director of the
Service Co., Ltd.; and the chairman of Dalian Bingshan
company.
– P&A Recreation Development Engineering Ltd.
Having acted as the deputy chief and
the chief of the Finance Dept., the
Xu Junrao assistant chief accountant, the financial None
majordomo and the director of the
company.
Joined Sanyo Electric Co., Ltd. in 1977
Hidetoshi and acted as the managing director and
None
Arima the commercial product company’s
president.
Acted as Guotai-Jun'an Securities Co.,
Ltd. Shenzhen Branch’s assistant for
general manager, Financial Head
office’s general manager of Guotai-
Jun'an Securities Co., Ltd., and Assets
& Liabilities Administration
Commission’s full-time director and
Wang Weijie None
Subsidiaries Management Workgroup’s
director of Guotai-Jun'an Securities
Co., Ltd., and office manager,
discipline inspection and supervision
office manager of the Board of
Supervisors of Guotai-Jun'an Securities
Co., Ltd.
Acted as the standing committee
member and vice secretary of Dalian
Wang Municipal Party Committee and the Director of Dalian Foundation for Justice & Courage;
Huiquan secretary of Dalian Municipal Independent director of Dashang Group Co., Ltd.
Discipline Supervising Committee.
Now retired.
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
Director of Research Institution of Dalian Huaxin Trust
Acted as Vocational and Technical
Securities of Dongbei University of Finance and
College’s dean and Financial College’s
Xing Tiancai Economics;
dean of Dongbei University of Finance
Independent director of China CITIC Bank Corp. Ltd.;
and Economics.
Independent director of Bohai Ferry Co., Ltd.
Acted as the chief accountant of Dalian
Liu Caiping Construction Holding Co., Ltd. Now Deputy director of Dalian CPA Association
retired.
Having acted as the vice chairman of
Yu Fuchun None
the Trade Union of the company.
Having acted as the chief of the Assets
Men Management Dept., the chief of the
None
Yuesheng Audit & Supervision Dept. and the
Price Dept. of the company.
Mao Having acted as the deputy chief of the
None
Chunhua Financial Dept. of the Company.
Having acted as the deputy chief of the
The chairman of Dalian Bingshan Group Refrigerator
Zhang Chief Engineer’s Office, the chief
Co., Ltd.; and the chairman of Dalian Bingshan Group
Hongzhi engineer and the deputy general
Refrigerator & Air-Conditioner Installation Co.
manager of the company.
Having acted as the deputy chief of the
workshop, the chief of the Imp. & Exp.
Dept., the assistant secretary of the
Wang Dekun None
Party committee, the chairman of the
Trade Union, and the deputy general
manager of the company.
Having acted as the department’s
Wang deputy chief and chief, the chief
None
Zhiqiang engineer and the deputy general
manager of the company.
Having acted as the deputy chief of the
Political & Ideological Work Dept., the
secretary of Committee for Discipline
Hu Xitang None
Inspection, the assistant secretary of the
Party committee and the deputy general
manager of the company.
5.3 Particulars about the remuneration of directors, supervisors and senior staff members
Decision-making
The Company's remuneration plan for directors and supervisors was proposed by the
process for
Company's Remuneration and Evaluation Committee of the Board of Directors, and after
remuneration of
approval by the Board of Directors, submitted to the general meeting for implementation.
directors, supervisors
The Company's remuneration plan for senior management was put into effect after
and senior
approval by the Company's Board of Directors.
management
Decision basis for
It was decided on the basis of the main responsibilities and importance of the position
remuneration of
and the remuneration level of other applicable positions in other applicable enterprises
directors, supervisors
and evaluated and rewarded through the Company's examination procedure for assets
and senior
operation performance.
management
Actual payment of the
directors', supervisors'
and senior It was prepaid monthly in the reporting period.
management's
remuneration
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
5.4 The changes of directors, supervisors and senior staff members
None.
5.5 Employees
Total number of the incumbent staff 1,282
Number of retirees whose expenses are borne
0
by the Company
Professional occupation
Number persons of professional
Type of professional occupation
occupation
Production staff 761
Sales staff 200
Technical staff 167
Financial staff 14
Administrative staff 140
Education
Type of education Number (persons)
Doctor 1
Master 15
Undergraduate 301
Junior college 242
Senior high school or lower 723
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
§6 Report of the Board of Directors
6.1 Discussion and analysis on the management
(1) Main businesses
In face of the adverse situation of economic downturn and drop in demand in the first half of 2012,
the Company focused on the marketing development, centered on quality and benefit, placed extra
emphasis on the energy-saving and eco-friendly products such as the new series of screw
compressors and the technical integration projects such as cold storage and air-conditioners,
proactively adjusted the marketing strategy, kept on improving the operation quality, promoted the
training of all employees on the ground, raised the productivity in the orderly way, and strived for
fulfillment of all major economic targets. In the 1st half year of 2012, the Company achieved sale
income RMB 851.22 million yuan, accounting for 48.64% of RMB 1.75 billion yuan as one of the
operating plan indicators of the Company for 2012, down by 10.20% from the same period of last
year; the total profits achieved is RMB 72.46 million yuan, accounting for 55.74% of RMB 130.00
million yuan as one of the operating plan indicators of the company for 2012, down by 38.86% from
the same period of last year.
In the reporting period, the Company grasped the development opportunity of cold chain logistics in
the period of the 12th Five-Year Plan, brought the advantages in package projects such as composite
cold storage and gas-adjusted preservation into full play, undertook many package projects for
industrial flagship enterprises such as China Resources, COFCO, Yurun, Yili and Synear, and made
a year-on-year growth of more than 20% comparably in the sales revenue on package projects.
In the reporting period, the first five-axis linkage CNC turning-milling center purchased by the
Company from Japanese Mazak Co., Ltd. has been commissioned successfully and put into normal
operation. The center can integrate several working procedures, significantly shortening the process
route. In addition, the Company actively imported the high-end rotor grinding machine and other
key machining equipment to further raise the equipment level and production capacity.
Whether was the Company's actual business performance above 20% lower or higher than the
earnings projection or business target for this reporting period that was disclosed in public:
□ Yes √ No
(2) Main subsidiaries and Sino-foreign joint venture companies
In the reporting period, the Company's subsidiary company Wuhan New World Refrigeration
Industry Co., Ltd. rose to the challenge and made the sales revenue of 202.42 million yuan with a
year-on-year increase of 19.70% and the net profit of 9.22 million yuan with essentially flatting
year-on-year.
In the reporting period, Dalian Sanyo Compressor as the leading eddy compressor producer in
China put much effort to the DC inverter eddy compressor with retaining the superiority of high-
efficient constant-speed compressors; and actively developed the market by the advantage of its
scale and in the way of price adjusting. Affected by the downturn of downstream demand, its sales
revenue decreased somewhat year-on-year and further affected the profit-making.
In the reporting period, Dalian Sanyo Cold Chain practiced green growth and innovative growth and
was awarded the Dalian's first mayor's quality prize; made achievement in the work of refined
management and cost reduction, with the gross profit increased and the net profit increased by
15.25% year-on-year; formally ranked among the special equipment installers with the pressurized
piping installation license qualification awarded and further consolidated its industrial flagship
position; and put the full-automatic punching-rolling line into normal production and significantly
improved the beverage refrigerator in efficiency, cost, safety and quality.
In the reporting period, Dalian Sanyo Refrigeration successfully commissioned the low-temperature
waste hot water recycle unit as the key development product, which further expanded the
application field of the leading product lithium bromide chiller; and in the integrated operation with
Dalian Sanyo Air-Conditioner, optimized the resource allocation for the large air-conditioner
business and further enhanced the comprehensive strength in coping the market competition with
the productivity raised.
In the reporting period, Dalian Fuji-Bingshan Vending Machine laid stress on the multi-functional
vending machine for both cold and hot food and achieved remarkable performance in the market
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
development with both the production output and the sales volume topping 5000 sets, and a year-
on-year increase of sales revenue more than 50% and a significant year-on-year increase of net
profit. With its foothold in Northeast China and the key deployment in the southeastern coastal
central cities, the company extended its sales network to the western central cities and was
perfecting it day by day.
All risk factors which may cause adverse influence on fulfillment of the Company's future
development strategy and business targets
(1) The risk of continuous downturn of domestic and overseas economies and drop in demand
leading to lack of orders.
(2) The cost risk reflected in raw material price changing and increase of labor cost and of
financing cost.
6.1.1 Statement of core business classified according to industry or product (Unit: RMB
thousand yuan)
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 Increase 1.74
851,218 676,485 20.53% -10.20% -12.12%
refrigeration percentage points
Classified according to product
Refrigeration Increase 1.74
851,218 676,485 20.53% -10.20% -12.12%
equipment percentage points
6.1.2 Particulars about core business classified according to area (Unit: RMB thousand yuan)
Increase/decrease of revenue compared with the
Area Revenue
previous year（％）
Northeast China area 627,232 -16.53%
East China area 8,176 -25.68%
Middle China area 201,894 +19.69%
6.1.3 Explanation of reason of material change of core business and its structure
□Applicable √Inapplicable
6.1.4 Explanation of reason of material change of profitability capability of core business (gross
profit ratio) compared with the previous report period
□Applicable √Inapplicable
6.1.5 Analysis of reason of material change of operating results and profit structure compared
with the previous report period
√Applicable □Inapplicable
There was a material difference in the Company's profit makeup between this reporting period
and the previous year, and the return on investment decreased by 48.97% year-on-year. The
main reason was the transfer of the equity of the associated company -- Thermo King-Dalian
Transport Refrigeration Co., Ltd. in the first half of 2011 causing much one-off return on
investment.
6.1.6 Business nature, main products or service and net profit of share-holding companies
contributing 10% of the Company's net profits
√Applicable □Inapplicable
Dalian Sanyo Compressor Co., Ltd. The Company holds 40% shares of it. It’s main products
are semi-hermetic piston compressors and eddy compressors.In the first half of 2012, it made
the sales revenue of 967.98 million yuan and the net profit of 49.81 million yuan.
Dalian Sanyo Cold Chain Co., Ltd. The Company holds 40% shares of it. It’s main products are
commercial freezers & refrigerators.In the first half of 2012, it made the sales revenue of
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
1,061.11 million yuan and the net profit of 29.77 million yuan.
Grand Ocean Showa Air-Conditioner (Dalian) Co., Ltd. The Company holds 20% shares of it.
It’s main products are air-conditioners for passenger cars.In the first half of 2012, it made the
sales revenue of 285.14 million yuan and the net profit of 38.35 million yuan.
6.1.7 Problems and difficulties in business operation
In the first half of 2012, continuous downturn of domestic and overseas economies and drop in
demand led to lack of orders, which prevented from fulfillment of the Company's main
business targets.In the second half of 2012, the Company will boost confidence, do solid work,
try to rid of the disadvantaged position, focus on the management of market development,
product quality, cost control and receivable accounts and cash flow, further improve the
internal control system, consolidate the basic management and strive for better fulfillment of
the annual business targets for 2012.
6.2 Investments of the Company
6.2.1 Overall use of raised capital
□ Applicable √ Inapplicable
6.2.2 Utilization of promised projects of raised capital
□ Applicable √ Inapplicable
6.2.3 Projects of changed raised capital
□ Applicable √ Inapplicable
6.2.4 Important investment projects of non-raised capital
□ Applicable √ Inapplicable
6.3 The Broad of Directors' modified business plan for the next half year
□ Applicable √ Inapplicable
6.4 Estimation of the business performance for Jan.-Sept., 2012
Estimation notice that the accumulated net profit from the beginning of year to the end of the
next reporting period may be turned into loss or significantly change compared with the same
period of the last year, and explanation of the cause
□ Applicable √ Inapplicable
6.5 The Board of Directors' explanation on the “non-standard audit report” from the accounting
firm in this reporting period
□ Applicable √ Inapplicable
6.6 The Board of Directors' explanation on item change and solution referred in the “non-
standard audit report” from the accounting firm in the last year
□ Applicable √ Inapplicable
6.7 The Board of Directors' discussion on causes and impacts of the Company's accounting
policies and estimates and corrections of material accounting errors
□ Applicable √ Inapplicable
6.8 Formulation and implementation of the Company's cash dividend distribution policy
By giving consideration to both the return to shareholders and the Company's long-term
development, and in combination of the Company's profit made in the this year, the Company
formulated the 2011 annual dividend distribution plan of paying the cash of 1.5 yuan for every
10 shares. Reviewed and adopted at the Company's general meeting, the Company's Board of
Directors has implemented the plan in May 2012.
Formulation and implementation of the Company's cash dividend distribution policy in the
reporting period complied with the Company's Articles of Association and the general
meeting's resolution, and the dividend distribution standard and proportion were defined and
clear and the applicable decision-making procedure and system were complete. The
independent directors agreed on it and the legal rights and interests of minority shareholders
were well protected.
6.9 Proposal of profit distribution or converting capital reserve to bonus shares
□ Applicable √ Inapplicable
6.10 The details that the Company's accumulated undistributed profit was positive as of the end
of 2011 but no cash dividend distribution plan was proposed
□ Applicable √ Inapplicable
6.11 Establishment and implementation of the internal information insider registration and
management system
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
The Company has established the internal information insider registration and management
system and strictly complied with the related regulations. In the reporting period, no internal
information insider of the Company was found buying or selling the Company's shares by use
of internal information and no director, supervisor or senior manager was found illegally
buying or selling the Company's shares.
Self-examination to find if any internal information insider bought or sold the Company's
shares and derivatives, and the accountability
□ Yes √ No
Whether were there any tools of supervision and administrative punishment given to the listed
company and its related staff by the regulatory authority in implementation of the internal
information insider registration and management system or due to suspicion of doing insider
trading
□ Yes √ No
6.12 Other disclosure items
□ Applicable √ Inapplicable
6.13 The Company's liabilities, credit changes and cash arrangement for repayment of
borrowings in future years (this table is for listed companies issuing convertible bonds only)
□ Applicable √ Inapplicable
14
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
§7 Significant Events
7.1 Corporate governance
According to the normative document on corporate governance of listed companies issued by
China Securities Regulatory Commission, and in combination of its own actuality, the
Company timely established and improved the relevant systems. The actuality of corporate
governance had no deviation from the requirements in that document.
There were no problems concerning horizontal competition caused by restructures and other
reasons with the Company. The main normal associated transactions between the Company and
the associated companies included purchasing the supporting products for package projects
from the associated companies, selling the supporting parts and components to the associated
companies and providing the labor service. Associated transactions between the Company and
the associated companies were necessary for normal production and operation and helpful for
the Company’s healthy development, and therefore will continue. The Company will strictly
comply with the related decision-making procedures and fulfill the obligation in information
disclosure in order to further regulate associated transactions.
In the reporting period, the Company continuously improved its corporate governance by
further deepening and perfecting the construction of its internal control and regulation system.
7.2 Implementation of the profit distribution plan, the plan for converting capital reserve to
bonus shares or the share issuing plan formulated in previous periods and implemented in the
reporting period
√ Applicable □ Inapplicable
The Company's 2011 annual dividend distribution plan has been implemented by the Board of
Directors in May 2012.
7.3 Major lawsuit and arbitration issues
□ Applicable √ Inapplicable
The Company had no major lawsuit and arbitration issues in this period.
7.4 Items related to bankruptcy reorganization
□ Applicable √ Inapplicable
7.5 The Company's holding other listed companies' equities and financial institutions' equities
7.5.1 Security investments
□ Applicable √ Inapplicable
7.5.2 Equities of other listed companies held by the Company
□ Applicable √ Inapplicable
7.5.3 Equities of non-listed financial institutions held by the Company
√ Applicable □ Inapplicable
Proportion
Change of
Amount of of share Book value at Profit and
Name of Quantity owner’s
primary equity in the end of loss within
object held (Shares) held equity within
investment that period period
period
company
Guotai Junan
Secunities 30,098,895.00 30,098,895 0.49% 30,098,895.00 0.00 0.00
Co., Ltd
Total 30,098,895.00 30,098,895 -- 30,098,895.00 0.00 0.00
7.5.4 Shares of other listed companies bought or sold by the Company
□ Applicable √ Inapplicable
7.6 Asset transactions
7.6.1 Purchase of assets
□ Applicable √ Inapplicable
7.6.2 Sales of assets
□ Applicable √ Inapplicable
7.6.3 Exchange of assets
□ Applicable √ Inapplicable
7.6.4 Business combination
□ Applicable √ Inapplicable
15
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
7.6.5 Progress of the matter and impacts of sales of assets on the business results and financial
positions of the Company after the report on assets restructuring or the announcement on
acquisition of the sold assets was published
□ Applicable √ Inapplicable
7.7 Explanation on the shareholding increase plan proposed or implemented by the Company's
major shareholder and its concerted actor in the reporting period
□ Applicable √ Inapplicable
7.8 Implementation and impact of the corporate equity incentive
□ Applicable √ Inapplicable
7.9 Important associated transactions
7.9.1 Associated transactions related to normal business
√ Applicable □ Inapplicable
The routine associate transactions of the Company involve a
number of Associate parties, which reflects the aggregated
industrial production mode of the company. With the products of
Necessity and continuity of associated the company expanding and developing increasingly, an
transactions, and cause of selecting industrial chain of fair scale in connection with refrigeration and
the associated party (none other air-conditioning has taken shape. As the refrigeration and air-
trading parties in the market) for conditioning package plants for customers involve a high
transaction requirement for the production technology, the accessories,
contracted-out parts for some products come from our associate
parties to ensure the quality of our products and the market
stability.
Associated transactions of this Company with the associated
parties are necessary for normal production and operation, and of
positive significance for normal development of the Company
Impacts of associated transactions on and will continue in future. Associated transactions are
independency of the listed company confirmed by signing economic contracts. The methods of
pricing and settling accounts are based on the market prices, and
having no harm to the interests of the Company and of the
shareholders.
In the report period, the total amount of normal associated
transactions between the Company and associated parties was
173,330 thousand yuan, accounting for 31.80% of the budgeted
Actual implementation of normal amount for the year 2012. This included 90,350 thousand yuan,
associated transactions to occur in the accounting for 30.12% of the budgeted amount for the year
reporting period with estimation of the 2012, for purchasing supporting products for package projects
total amount by type from associated parties, and 82,990 thousand yuan, accounting
for 33.87% of the budgeted amount for the year 2012, from
selling supporting parts and components to associated parties.
See the Explanatory Notes to Accounting Statements.
The main normal associated transactions between the Company
and the associated companies included purchasing the supporting
products for package projects from the associated companies,
selling the supporting parts and components to the associated
companies and providing the labor service. As the special topic,
the Company's normal associated transactions in this year and
estimation of normal associated transactions in the next year
Description of associated transactions
were submitted for review and adoption at the Board meeting
and the general meeting taking place in April and May of each
year and for disclosure after prior approval by the independent
directors. The normal associated transactions within the
estimated total amount will be disclosed in detail in the part
“Relationship and transactions with associated parties” of the
Company's annual report and semiannual report.
16
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
(Unit: RMB’0000)
purchasing auxiliary products for
selling auxiliary spare parts to
package projects from associate
associate parties
parties
Associated party
Proportion to the Proportion to the
Amount similar Amount similar
transactions transactions
Dalian Bingshan Group
Import&Export Co., Ltd.
8,298.53 9.74% 9,034.59 13.61%
and other associated
party
Total 8,298.53 9.74% 9,034.59 13.61%
Including：In the report period the Company made associative trade amounting to 70,175
thousand yuan in the form of products selling or labor providing for holding shareholders and
its subsidiaries.
7.9.2 Associated transactions in assets purchasing and selling
□ Applicable √ Inapplicable
7.9.3 Important associated transactions with joint investments
√ Applicable □ Inapplicable
Registered Assets Net profit
Progress of
capital of scale of of
Major important
Name of invested invested invested
Joint Associated business of Curre undergoing
invested company company company
investor relationship invested ncy projects of
company (in ten (in ten (in ten
company invested
thousand thousand thousand
company
yuan) yuan) yuan)
Design,
Associated
production,
legal entity
sale and after-
Sanyo holding Dalian Sanyo
sale service
Electric 10% of Refrigeration 345,000 JPY 55,040 312 No
of large
Co., Ltd. DALENG Co., Ltd.
cooling/heati
GUFEN
ng air-
shares
conditioners
Description of important associated transactions with joint investments
Dalian Sanyo Refrigeration Company Limited (hereinafter ‘DSR’) is a joint venture invested
by Sanyo Electric Co., Ltd. (hereinafter ‘SE’)and Dalian Refrigeration Company Limited
(hereinafter ‘the Company’), and SE holds 60% equity of DSR and the Company holds 40%.
In order to fulfilling the strategic plan and developing refrigeration business of DSR, the
shareholders of DSR decided to invest another RMB110,000,000. The amount will be
contributed by the two shareholders respectively according to their proportion in DSR’s equity,
and the Company will contribute RMB44,000,000. The Company will contribute the amount
with its own fund. After the contribution, the Company’s proportion in DSR’s equity doesn’t
change. SE will also increase investment to DSR with its own fund.
Because SE holds 10% equity of the Company and is a related party of the Company, the
contribution is a common investment behavior.
7.9.4 Current associated rights of credit and liabilities
□ Applicable √ Inapplicable
Occupied funds and progress of returning scheme in the reporting period
□ Applicable √ Inapplicable
Accountability scheme proposed by the Board of Directors for incompletion of the return of
occupied non-operation funds by the listed company as of the end of the reporting period
□ Applicable √ Inapplicable
17
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
7.9.5 Other important associated transactions
□ Applicable √ Inapplicable
7.10 Important contracts and their implementation
7.10.1 Trusts, contracts and leases that made profits for the Company accounting for 10％ or
higher of the total amount of profit of the Company
(1) Trusts
□ Applicable √ Inapplicable
(2) Contracts
□ Applicable √ Inapplicable
(3) Leases
□ Applicable √ Inapplicable
7.10.2 Guarantees
□ Applicable √ Inapplicable
7.10.3 Consigned financing
□ Applicable √ Inapplicable
7.10.4 Implementation of important contracts in daily operation
□ Applicable √ Inapplicable
7.10.5 Other important contracts
□ Applicable √ Inapplicable
7.11 Details of issuing corporate bonds
□ Applicable √ Inapplicable
7.12 Implementation of the undertakings
7.12.1 Undertakings of the Company or its shareholders holding 5% or higher of the shares in
the reporting period or carried to the reporting period
√ Applicable □ Inapplicable
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.
7.12.2 Explanation on the Company's assets or projects matching the original earnings
projection and the cause if there was the earnings projection for its assets or projects and the
reporting period was still in the earnings projection period
□ Applicable √ Inapplicable
18
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
7.13 Record of investigation, communication, interview and other activities in the reporting
period
Type of
Reception Reception Topic in discussion and
Reception time received Received persons
location form provided information
persons
Information about the
Company’s By fundamentals of the
Jan. 18, 2012 Institution E Fund’s researchers
office telephone Company that have
been disclosed in public
Information about the
China Gold's and
Company’s By fundamentals of the
Feb. 6, 2012 Institution Taikang Asset’s
office telephone Company that have
researchers
been disclosed in public
Lion Fund’s, Sinolink
Securities', CITIC Information about the
Company’s By Securities', CITIC fundamentals of the
Mar. 8, 2012 Institution
office telephone China Securities’ and Company that have
Taikang Asset’s been disclosed in public
researchers
Information about the
Wanjia Assets' and
Company’s By fundamentals of the
Mar. 13, 2012 Institution Northeast Securities'
office telephone Company that have
researchers
been disclosed in public
Information about the
Hua An Fund’s and
Company’s By fundamentals of the
Mar. 14, 2012 Institution China Gold's
office telephone Company that have
researchers
been disclosed in public
Information about the
Company’s By CITIC Securities’ fundamentals of the
Apr. 25, 2012 Institution
office telephone researchers Company that have
been disclosed in public
Information about the
Company’s By China Gold's fundamentals of the
May 31, 2012 Institution
office telephone researchers Company that have
been disclosed in public
Information about the
Field
Company’s Cinda Securities’ fundamentals of the
Jun. 4, 2012 investigati Institution
office researchers Company that have
on
been disclosed in public
7.14 Employment and dismissal of the accounting firm
Whether was the semiannual report audited?
□ Yes √ No
7.15 Punishment and rectification received by the listed company and its directors, supervisors,
senior management, shareholders, actual controllers and acquisitors
□ Applicable √ Inapplicable
7.16 Description of other important issues
□ Applicable √ Inapplicable
7.17 Material change in profitability and assets and credit standings of the underwriter of the
Company's convertible bonds
(This table is for listed companies issuing convertible bonds only.)
□ Applicable √ Inapplicable
19
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
7.18 Index of information disclosure
Announce Newspaper and page for Date for Website and path for
Item
ment No. disclosing disclosing disclosing
Indicative announcement China Securities Daily
2012-001 (change in Hamon Investment's B029, Hong Kong Feb. 10, 2012 http://www.cninfo.com.cn
equity) Commercial Daily A9
China Securities Daily
2012-002 2011 Annual Report Summary B014, Hong Kong Mar. 8, 2012 http://www.cninfo.com.cn
Commercial Daily A19
Announcement on the China Securities Daily
2012-003 resolutions at the 14th meeting of B014, Hong Kong Mar. 8, 2012 http://www.cninfo.com.cn
the 5th Board of Directors Commercial Daily A19
Announcement on the China Securities Daily
2012-004 resolutions at the 10th meeting of B014, Hong Kong Mar. 8, 2012 http://www.cninfo.com.cn
the 5th Board of Supervisors Commercial Daily A19
China Securities Daily
Notice for convening the 2011
2012-005 B014, Hong Kong Mar. 8, 2012 http://www.cninfo.com.cn
annual general meeting
Commercial Daily A19
Announcement on the 2012 China Securities Daily
2012-006 annual estimation of normal B014, Hong Kong Mar. 8, 2012 http://www.cninfo.com.cn
associated transactions Commercial Daily A19
Announcement on the associated
China Securities Daily
transaction (transfer of 40% of
2012-007 B014, Hong Kong Mar. 8, 2012 http://www.cninfo.com.cn
the equity of Dalian Sanyo Air-
Commercial Daily A19
conditioner)
Announcement on the associated
China Securities Daily
transaction (Increase of the
2012-008 B014, Hong Kong Mar. 8, 2012 http://www.cninfo.com.cn
investment to Dalian Sanyo
Commercial Daily A19
Refrigeration)
China Securities Daily
Supplementary announcement of
2012-009 B026, Hong Kong Mar. 30, 2012 http://www.cninfo.com.cn
the 2011 annual report
Commercial Daily A14
Announcement on the China Securities Daily
2012-010 resolutions at the 15th meeting of B026, Hong Kong Mar. 30, 2012 http://www.cninfo.com.cn
the 5th Board of Directors Commercial Daily A14
Announcement on the China Securities Daily
2012-011 resolutions at the 2011 annual B026, Hong Kong Mar. 30, 2012 http://www.cninfo.com.cn
general meeting Commercial Daily A14
China Securities Daily
Quarterly Report for the First
2012-012 B147, Hong Kong Apr. 24, 2012 http://www.cninfo.com.cn
Quarter, 2012
Commercial Daily A21
China Securities Daily
Announcement on the 2011
2012-013 B012, Hong Kong May 16, 2012 http://www.cninfo.com.cn
annual dividend distribution
Commercial Daily A14
Announcement on the China Securities Daily
2012-014 resolutions at the 17th meeting of A23, Hong Kong May 18, 2012 http://www.cninfo.com.cn
the 5th Board of Directors Commercial Daily A22
20
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
§8 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.
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,
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
21
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
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
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
22
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
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
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
23
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
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
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
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
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
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.
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
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
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.
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
(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;
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:
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
(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
There is no correction of the accounting error from previous term in this report period.
28
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
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
Dalian Bingshan Group Refrigeration Installation
Subsidiary 25%
Co., Ltd.
Dalian Bingshan Air-Conditioning Equipment Co.
Subsidiary 25%
Ltd.
Dalian Bingshan Ryosetsu Quick Freezing
Subsidiary 25%
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 25%
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 20%
Ⅳ. Business combination and consolidated financial statements
1. The principal activities of its subsidiaries are shown as below.
As of 30 June 2012 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.
29
Dalian Refrigeration Co., Ltd. 2012 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 3,849,969.40 963,405.46
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 20,793,277.72
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 8,391,344.63
(“Metal Processing”)
Dalian Bingshan Guardian Manufacturing Research, design and
5 Automation Co., Ltd. Ltd. Dalian GBP210,000 develop refrigerator GBP126,000 60 60 Yes 3,452,190.77
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 2,408,560.36 531,153.39
Co., Ltd. equipment
Design, manufacture,
sale, installation and
Wuhan New World test of screw type
7 Refrigeration Industrial Co. Ltd. Wuhan Manufacturing RMB30,000,000 refrigeration RMB17,980,400 51 51 Yes 55,686,661.30 1,860,333.05
Ltd. (“WNWRI”) compressor and
refrigeration
equipment
Manufacture of
metal founding parts
and pipe parts;
Dalian Daleng Metal
8 Ltd. Dalian Manufacturing RMB20,000,000 process of metal RMB20,000,000 100 100 Yes
Technology Co. Ltd.
machine
parts(Preparing to
construct)
Wuhan New World Design, installation,
Refrigeration Air test and repair of
9 Ltd. Wuhan Installation RMB8,000,000 RMB400,000 5 100 Yes
Conditioner Engineering refrigeration
Co. Ltd. equipment
Ningbo Bingshan Design, installation,
Refrigeration Air test and repair of
10 Ltd. Ningbo Installation RMB3,000,000 RMB1,530,000 51 Yes 1,600,395.78 977,566.68
Conditioner Engineering refrigeration
Co. Ltd. equipment
2. The changes of consolidated scope
No changes of consolidated scope happened during the current period.
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
Ⅴ. Notes to the consolidated financial statements
1 Monetary fund
Item 30-06-2012 31-12-2011
Cash on hand 134,137.65 101,242.57
Cash in bank 441,500,734.49 680,841,246.73
Others 189,577.20 9,435,000.00
Total 441,824,449.34 690,377,489.30
Particular about foreign monetary funds included in the cash in bank:
30-06-2012 31-12-2011
Foreign
Original RMB Original RMB
currency Exchange rate Exchange rate
currency equivalent currency equivalent
USD 2,513.05 6.3249 15,894.79 61,112.29 6.3009 385,062.43
JPY 192,024.00 0.079648 15,294.33 207,024.00 0.081103 16,790.27
HKD
EUR 0.34 9.8169 3.34 15,028.34 8.1625 122,668.83
GP 6,518.67 9.7116 63,306.72
Total 31,192.46 587,828.25
2 Notes receivable
Item 30-06-2012 31-12-2011
Bank acceptance 29,751,887.18 49,506,312.00
Trade acceptance 798,674.14 11,842,910.44
Total 30,550,561.32 61,349,222.44
(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
Nantong Changhai Food Additive Co.,
1 2012.04.24 2012.10.24 5,000,000.00 Bank acceptance
Ltd.
2 Tiandi Science & Technology Co., Ltd. 2012.03.23 2012.09.23 3,204,000.00 Bank acceptance
China Coal No. 3 Construction (Group)
3 Corp. Ltd. Electromechanical 2012.02.29 2012.08.29 2,500,000.00 Bank acceptance
Engineering Dept.
4 Jiangsu Haixing Chemical Co., Ltd. 2012.03.29 2012.09.29 2,428,892.20 Bank acceptance
Yinquan Coal Development Co., Ltd. of
5 2012.05.04 2012.11.04 1,267,500.00 Bank acceptance
Shenmu, Shaanxi
3 Accounts receivable
(1) Classified by account nature
30-06-2012 31-12-2011
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
531,559,151.03 100 93,637,840.26 17.62 433,570,314.80 100 81,298,017.00 18.75
significant but with
high risk in groups
Other insignificant
items
Total 531,559,151.03 100 93,637,840.26 17.62 433,570,314.80 100 81,298,017.00 18.75
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
The aging of accounts receivable and related provisions for bad debts
30-06-2012 31-12-2011
Account ages Proportion Provision for bad Proportion Provision for bad
Amount Amount
(%) debts (%) debts
Within1 year 280,962,664.29 52.86 14,048,133.21 230,503,978.78 53.16 11,528,235.18
1 to 2 years 121,049,851.08 22.77 12,104,985.11 84,559,871.64 19.50 8,455,987.18
2 to 3 years 60,789,785.37 11.44 18,236,935.61 53,882,190.43 12.43 16,164,657.14
3 to 4 years 30,927,991.46 5.82 15,463,995.73 30,496,447.83 7.03 15,414,614.52
4 to 5 years 20,225,341.15 3.80 16,180,272.92 19,982,171.01 4.62 15,588,867.87
Over 5 years 17,603,517.68 3.31 17,603,517.68 14,145,655.11 3.26 14,145,655.11
Total 531,559,151.03 100 93,637,840.26 433,570,314.80 100 81,298,017.00
(2) There is no receivable account of the Company that have been written off before this report period but recovered
in this period.
(3) During the report period, there is no receivable 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 (15) Sale of goods 686,375.74 ① No
①Description of writing off: The Company's receivables written-off in this reporting period were mainly those
treated by the subsidiary company and the sub-subsidiary company —— Wuhan New World Refrigeration
Industries Co., Ltd. and Ningbo Bingshan Refrigeration & Air-conditioning Engineering Co., Ltd. for long-overdue
receivables mainly because some account has been submitted to the court and the lawsuit has been won, but no
assets could be implemented, some account has been in arrears too long but the amount was relatively less, and some
account was unreceivable due to the customer's refusing to pay with the excuse of generation of the field expenses.
(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 the Proportion
Company Amount Age
Company (%)
COFCO Meat (Jiangsu) Co., Ltd. Non-affiliated 21,320,682.30 Less than 1 year 4.01
COFCO Meat (Suqian) Co., Ltd. Non-affiliated 15,756,917.20 Less than 1 year 2.96
Dalian Xinghai Bay Development &
Non-affiliated 11,242,693.00 3 to 4 years 2.12
Construction Management Center
BOE Technology Group Co., Ltd. Non-affiliated 9,100,157.20 Less than 1 year 1.71
Zhengzhou Synear Foodstuff Co., Ltd. Non-affiliated 7,250,000.00 Less than 1 year 1.36
Total 64,670,449.70 12.16
(7) The amount of accounts receivable due from related companies are RMB 10,640,630.20, 2.00% 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
30-06-2012 31-12-2011
Account ages
Amount Proportion (%) Amount Proportion (%)
Within1 year 60,191,110.86 85.45 44,980,515.35 98.34
1 to 2 years 9,945,655.47 14.12 359,977.06 0.79
2 to 3 years 304,492.09 0.43 399,674.20 0.87
Total 70,441,258.42 100 45,740,166.61 100
(2) The first five arrearage entities listed in the balance of accounts paid in advance
The relationship
Company with the Amount Age Reasons
Company
Inductotherm Industries (Shanghai) Ltd. Non-affiliated 9,101,000.00 Less than 1 year Prepayment for goods
Henan Province Mine Crane Co., Ltd. Non-affiliated 3,852,338.00 Less than 1 year Prepayment for goods
Shenzhen Keleng Commercial Prepayment for goods
Non-affiliated 3,372,645.84 Less than 1 year
Equipment Co., Ltd.
Wuxi Xinan Foundry Machinery Co., Prepayment for goods
Non-affiliated 2,660,000.00 Less than 1 year
Ltd.
32
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
Dalian Hongyang Foundry Machinery Prepayment for goods
Non-affiliated 2,558,500.00 Less than 1 year
Co., Ltd.
Total 21,544,483.84
(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 218,231.00, 0.31% of total
accounts paid in advance. Please refer to the Ⅵ 6 of the notes.
5 Dividends receivable
Current year Current year
Any
Items 31-12-2011 disposal 30-06-2012 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. 4,800,000.00 2,400,000.00 2,400,000.00 No
payment date
Not due to
Dalian Sanyo Compressor Co., Ltd. 16,000,000.00 4,800,000.00 11,200,000.00 No
payment date
Daliian Sanyo High-Efficient Not due to
1,250,000.00 625,000.00 625,000.00 No
Refrigeration System Co., Ltd. payment date
Total 27,875.00 22,050,000.00 7,852,875.00 14,225,000.00
6 Other accounts receivable
(1) Classified by account nature
30-06-2012 31-12-2011
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 22,613,652.63 100 4,938,030.26 21.84 19,380,312.30 100 4,042,479.39 20.86
with high risk in groups
Other insignificant items
Total 22,613,652.63 100 4,938,030.26 21.84 19,380,312.30 100 4,042,479.39 20.86
The aging of other accounts receivable and related provisions for bad debts
30-06-2012 31-12-2011
Account age Provision for bad Proportion Provision for bad
Amount Proportion (%) Amount
debts (%) debts
Within1year 13,256,922.37 58.63 662,846.12 9,051,755.08 46.70 452,587.75
1 to 2 years 3,046,454.32 13.47 304,645.43 4,485,926.12 23.15 434,592.60
2 to 3 years 2,723,776.43 12.04 817,132.93 3,033,043.77 15.65 909,913.14
3 to 4 years 843,889.40 3.73 421,944.70 100,684.38 0.52 50,342.19
4 to 5 years 55,745.16 0.25 44,596.13 2,569,296.19 13.26 2,055,436.95
Over 5 years 2,686,864.95 11.88 2,686,864.95 139,606.76 0.72 139,606.76
Total 22,613,652.63 100 4,938,030.26 19,380,312.30 100 4,042,479.39
(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.
33
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
(4) The write-off of other accounts receivable
The nature of other accounts
Name of company Written off Reason Related party transaction
receivable
Clients (6) Sale of goods 22,037.00 ① No
①Description of writing off: The Company's other receivables written-off in this reporting period was mainly those
treated by the sub-subsidiary company —— Ningbo Bingshan Refrigeration & Air-Conditioning Engineering Co.,
Ltd. for long-overdue other receivables mainly because some account has been in arrears too long but the amount
was relatively less.
(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
Gao Yulong Non-affiliated 1,432,000.00 1-2 years 6.33
Tianjin Construction Team
Non-affiliated 1,000,000.00 2-3 years 4.42
Communication Service Center
Haobang Chemical Co., Ltd. of
Non-affiliated 500,000.00 Less than 1 year 2.21
Shandong Province
COFCO Meat (Jiangsu) Co., Ltd. Non-affiliated 450,000.00 Less than 1 year 1.99
Nanjing Gangfeng Industrial Co., Ltd. Non-affiliated 393,121.24 Less than 1 year 1.74
Total 3,775,121.24 16.69
(7) The amount of other accounts receivable due from related companies are RMB 30,000.00, 0.13% of total accounts
receivable. Please refer to the Ⅵ 6 of the notes.
(8) There is no other accounts receivable being ended reorganization or being negotiated during the report period.
7 Inventories
(1) Cost
30-06-2012 31-12-2011
Items
Provision for Provision for
Book balance impairment of Book value Book balance impairment of Book value
inventories inventories
Raw materials 70,524,477.44 9,392,188.03 61,132,289.41 74,184,207.21 9,392,188.03 64,792,019.18
Materials on Consignment
6,757,174.56 6,757,174.56 7,888,273.73 7,888,273.73
for further processing
Low-value consumptions 180,109.17 180,109.17 268,402.65 268,402.65
Work-in-progress 58,852,356.95 58,852,356.95 83,241,115.98 83,241,115.98
Self-manufactured semi-
39,271,243.80 39,271,243.80 27,871,925.60 27,871,925.60
finished products
Finished goods 129,167,528.07 4,537,913.02 124,629,615.05 175,711,078.72 4,537,913.02 171,173,165.70
Constructing projects 47,768,092.98 47,768,092.98 69,159,453.37 69,159,453.37
Total 352,520,982.97 13,930,101.05 338,590,881.92 438,324,457.26 13,930,101.05 424,394,356.21
(2) Provision for impairment of inventories
Current year
Current year
Item 31-12-2011 disposal 30-06-2012
addition
Reversal Written-off
Finished goods 4,537,913.02 4,537,913.02
Raw materials 9,392,188.03 9,392,188.03
Total 13,930,101.05 13,930,101.05
34
Dalian Refrigeration Co., Ltd. 2012 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.
The book balance is higher than
Raw materials
recoverable amount.
8 Financial assets available for sale
There is no available-for-sale financial asset in the report period.
9、Investment to Associates and Joint ventures
35
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
Legal Sharehol Voting 30-06-2012
No Registere Business Registered 30-06-2012 30-06-2012 Total Income of Net profit of
Name Categories represent ding right Total net
. d address nature capital Total assets Total liabilities 2012.01-06 2012.01-06
person （%） （%） assets
ⅠAssociates
Dalian Bingshan –
P&A Recreation Sino-foreign
1 Dalian Yang Bin Installation USD250,000 50% 50% 17,423,326.06 12,136,301.13 5,287,024.93 10,488,342.20 -473,914.73
Development joint venture
Engineering Co., Ltd.
Dalian Jiale Vending
Sino-foreign
2 Machine Operation Dalian Zhang He Trading JPY500,000,000 50% 50% 30,084,676.97 1,264,252.38 28,820,424.59 9,321,033.85 -301,888.19
joint venture
Co., Ltd.
ⅡJoint venture
Dalian Bingshan Group
1 Import & Export Co. , Ltd Dalian Zhang He Trading RMB5,000,000 24% 24% 82,414,894.90 33,979,397.82 48,435,497.08 117,703727.74 4,565,524.73
Ltd.
Dalian Grand Ocean
Thermo King Sino-foreign Manufactu
2 Dalian Zhang He ring USD850,000 40% 40% 22,262,362.38 14,209,715.54 8,052,646.84 8,052,863.74 -591,650.23
Transport Refrigeration joint venture
Engineering Co., Ltd
Dalian Sanyo Sino-foreign Watanabe Manufactu
3 Dalian ring JPY3,450,000,000 40% 40% 550,396,273.79 184,511,288.37 365,884,985.42 196,332,398.48 3,120,236.33
Refrigeration Co., Ltd. joint venture Yoshio
Dalian Honjo Chemical Sino-foreign Honjo Manufactu
4 Dalian ring JPY260,000,000 30% 30% 35,596,190.91 5,814,271.59 29,781,919.32 20,952,784.68 2,497,538.62
Co., Ltd. joint venture Yukinovi
Dalian Sanyo Cold- Sino-foreign Watanabe Manufactu
5 Dalian ring JPY4,650,000,000 40% 40% 1,506,884,212.66 982,846,596.14 524,037,616.52 1,061,106,834.27 29,774,696.39
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% 350,119,974.63 97,546,731.29 252,573,243.34 285,140,593.18 38,345,528.63
joint venture
(Dalian) Co., Ltd.
Dalian Sanyo Sino-foreign Watanabe Manufactu
7 Dalian ring JPY6,200,000,000 40% 40% 1,776,627,450.95 968,757,300.31 807,870,150.64 967,978,626.96 49,806,726.80
Compressor Co., Ltd. joint venture Yoshio
Dalian Sanyo Meica Sino-foreign Manufactu
8 Dalian Zhang He ring JPY400,000,000 30% 30% 155,312,719.75 63,555,114.65 91,757,605.10 101,618,652.22 4,167,584.07
Electronics Co., Ltd. joint venture
Dalian Sanyo Home Sino-foreign Manufactu
9 Dalian Zhang He ring JPY2,200,000,000 10.91% 10.91% 197,439,608.66 114,329,796.58 83,109,812.08 24,390,724.38 -39,029,837.58
Appliance Co., Ltd. joint venture
Beijing Huashang
Bingshan Refrigeration Sino-foreign
10 Beijing Yang Bin Trading RMB1,000,000 49% 49% 12,439,685.32 10,722,838.24 1,716,847.08 10,326,819.93 62,102.18
and Air-conditioning joint venture
Machinery Co., Ltd.
Dalian Fuji Bingshan
Sino-foreign Asahi Manufactu
11 Vending Machine Co., Dalian ring JPY1,800,000,000 49% 49% 202,977,164.95 72,089,714.20 130,887,450.75 121,660,873.78 10,367,653.62
joint venture Hideehiko
Ltd.
Dalian Sanyo High-
Sino-foreign Manufactu
12 Efficient Refrigeration Dalian Zhang He ring RMB80,000,000 25% 25% 116,063,224.33 27,292,982.81 88,770,241.52 67,650,955.76 -2,643,690.98
joint venture
System Co., Ltd.
36
Dalian Refrigeration Co., Ltd. 2012 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 2,880,469.82 -236,957.37 2,643,512.45 50 50
Development method
Engineering Co., Ltd.
Dalian Jiale Vending
Equity
2 Machine Operation 18,750,000.00 14,561,156.38 -150,944.10 14,410,212.28 50 50
method
Co., Ltd.
Dalian Bingshan
Equity
3 Group Import & 1,200,000.00 10,528,793.37 1,095,725.94 11,624,519.31 24 24
method
Export Co. , Ltd.
Dalian Grand Ocean
Thermo King Equity
4 2,871,708.00 3,457,718.84 -236,660.09 3,221,058.75 40 40
Transport Refrigeration method
Engineering Co., Ltd
Dalian Sanyo Equity
5 85,416,929.20 105,676,566.88 41,071,100.35 146,747,667.23 40 40 4,800,000.00
Refrigeration Co., Ltd. method
Dalian Honjo Equity
6 3,908,911.50 9,259,232.78 -369,612.69 8,889,620.09 30 30 1,073,918.58
Chemical Co., Ltd. method
Dalian Sanyo Cold- Equity
7 134,658,753.75 210,145,798.94 2,957,088.27 213,102,887.21 40 40 8,000,000.00
chain Co., Ltd method
Grand Ocean-showa
Equity
8 Auto Air Conditioning 24,402,234.58 42,845,542.95 7,669,105.73 50,514,648.68 20 20
method
(Dalian) Co., Ltd.
Dalian Sanyo Equity
9 176,953,841.88 319,147,751.40 2,328,875.46 321,476,626.86 40 40 16,000,000.00
Compressor Co., Ltd. method
Dalian Sanyo Meica Equity
10 9,649,590.00 27,081,570.31 650,275.22 27,731,845.53 30 30 600,000.00
Electronics Co., Ltd. method
Dalian Sanyo Home Equity
11 19,666,212.00 11,694,400.00 11,694,400.00 10.91 10.91 11,694,400.00
Appliance Co., Ltd. method
Beijing Huashang
Bingshan Refrigeration Equity
12 490,000.00 794,216.13 30,430.07 824,646.20 49 49
and Air-conditioning method
Machinery Co., Ltd.
Dalian Bingshan H2O3
Equity
13 Environmental 2,731,377.50 505,268.76 -505268.76
method
Solution Co. , Ltd.
Dalian Fuji Bingshan
Equity
14 Vending Machine Co., 66,416,364.00 59,054,700.59 5,080,150.27 64,134,850.86 49 49
method
Ltd.
37
Dalian Refrigeration Co., Ltd. 2012 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
Daliian Sanyo High-
Equity
15 Efficient Refrigeration 20,000,000.00 24,103,483.12 -1,858,048.93 22,245,434.19 25 25 1,250,000.00
method
System Co., Ltd.
Zibo Electric Traction
Cost
16 Machine Group Co., 849,000.00 849,000.00 849,000.00 1.52 1.52 849,000.00
method
Ltd.
Liaoning Mec Group Cost
17 1,020,000.00 1,020,000.00 1,020,000.00 3.57 3.57
Co., Ltd. method
Guotai Junan Cost
18 30,098,895.00 30,098,895.00 30,098,895.00 0.49 0.49 1,582,164.89
Securities Co., Ltd. method
Guotai Junan
Cost
19 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
20 11,207,806.00 11,207,806.00 11,207,806.00 17.8 17.8
Control (Suzhou) Co., method
Ltd.
Liaoning Enterprises
Cost
21 United Industry 105,000.00 105,000.00 105,000.00 4.2 4.2 105,000.00
method
Company
Dalian Bingshan
Cost
22 Group Materials 250,000.00 250,000.00 250,000.00 5 5
method
Trading Co., Ltd.
Shenyang Sanyo Air- Cost
23 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
24 1,315,142.50 1,315,142.50 1,315,142.50 0.056 0.056
Electricity Co., Ltd. method
Total 650,152,375.63 923,738,448.49 57,525,259.37 981,263,707.86 -- -- 26,539,196.52 0.00 31,723,918.58
(1)According to the resolution of the Board of Directors, the Company increased the investment of 44,810,220.00
yuan to Dalian Sanyo Refrigeration Co., Ltd. with the investment ratio of 40% in the reporting period.
(2)According to the resolution of the Board of Directors, the Company assigned the equity of Dalian Sanyo Air-
Conditioner Co., Ltd. to Dalian Sanyo Refrigeration Co., Ltd. in the reporting period.
(3)In the reporting period, Dalian Bingshan Water Environment Equipment Co., Ltd., the associated company
originally holding 33% of the shares, received the “Notice for Approval of Cancelling the Registration with the
Administration for Industry & Commerce” and has been cancelled.
(4)In the reporting period, Japanese Sanyo Electric Co., Ltd. increased 1.6 billion yen of investment to Dalian Sanyo
Home Appliance Co., Ltd. so that the Company's shareholding decreased from 40% to 10.91%. Now, Dalian Sanyo
Home Appliance Co., Ltd. is in the process of liquidation.
(5)In the reporting period, Guotai-Jun'an Securities Co., Ltd. increased its equity from 4.7 billion yuan to 6.1 billion
yuan and the Company's shareholding decreased from 0.64% to 0.49%.
38
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
11 Fixed assets
(1) Fixed assets details
Current year Current year
31-12-2011 30-06-2012
Item
addition disposal
1. Original value 843,456,140.79 11,259,689.10 1,568,962.83 853,146,867.06
Including: Buildings 267,130,473.45 267,130,473.45
Machinery 533,179,012.47 9,601,571.41 1,001,108.86 541,779,475.02
Vehicles 25,950,387.92 1,318,261.97 481,764.30 26,786,885.59
Other equipments 17,196,266.95 339,855.72 86,089.67 17,450,033.00
2. Accumulated depreciation 490,886,268.07 16,265,608.88 1,257,353.56 505,894,523.39
Including: Buildings 102,037,036.05 3,146,791.15 105,183,827.20
Machinery 362,118,183.48 11,531,716.20 888,427.59 372,761,472.09
Vehicles 13,673,650.99 1,052,992.98 291,445.26 14,435,198.71
Other Equipments 13,057,397.55 534,108.55 77,480.71 13,514,025.39
3.Net book value 352,569,872.72 347,252,343.67
Including: Buildings 165,093,437.40 161,946,646.25
Machinery 171,060,828.99 169,018,002.93
Vehicles 12,276,736.93 12,351,686.88
Other Equipments 4,138,869.40 3,936,007.61
4.Provision for impairment 6,932,065.53 6,932,065.53
Including: Buildings
Machinery 6,932,065.53 6,932,065.53
Vehicles
Other Equipments
5.Fixed assets net 345,637,807.19 340,320,278.14
Including: Buildings 165,093,437.40 161,946,646.25
Machinery 164,128,763.46 162,085,937.40
Vehicles 12,276,736.93 12,351,686.88
Other Equipments 4,138,869.40 3,936,007.61
(2) All the accumulated depreciation increased during the current period was depreciation of the current period.
(3) The original value of fixed assets RMB 1,809,770.40 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.
39
Dalian Refrigeration Co., Ltd. 2012 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 31-12-2011 30-06-2012 Sources of funds completion
projects addition decrease
Internally
Buildings 40,000,000.00 25,378,529.17 1,761,802.00 27,140,331.17 68%
generated fund
Internally
Machinery 21,500,000.00 8,767,716.90 6,066,406.49 1,809,770.40 13,024,352.99 69%
generated fund
Internally
Others 56,410.26 84,615.38 141,025.64
generated fund
Total 34,202,656.33 7,912,823.87 1,950,796.04 40,164,684.16
(1) No interests capitalized during the current period.
(2) The amount of construction in progress RMB 1,809,770.40 was transferred to fixed assets, and RMB 141,025.64
was transferred to intangible assets.
13 Intangible assets
(1) Intangible assets details
Current year Current year
Item 31-12-2011 30-06-2012
addition disposal
1.Original cost
Land use rights 186,624,687.38 186,624,687.38
Non-patented technology 515,224.41 515,224.41
Others 5,278,244.99 141,025.64 5,419,270.63
Total 192,418,156.78 141,025.64 192,559,182.42
2.Amortization
Land use rights 21,160,681.01 1,866,248.66 23,026,929.67
Non-patented technology 515,224.41 515,224.41
Others 1,989,403.29 179,385.09 2,168,788.38
Total 23,665,308.71 2,045,633.75 25,710,942.46
3. .Net book value
Land use rights 165,464,006.37 163,597,757.71
Non-patented technology
Others 3,288,841.70 3,250,482.25
Total 168,752,848.07 166,848,239.96
4.Provision for impairment
Land use rights
Non-patented technology
Others
Total
5. .Net value
Land use rights 165,464,006.37 163,597,757.71
Non-patented technology
Others 3,288,841.70 3,250,482.25
Total 168,752,848.07 166,848,239.96
(1) The amount of construction in progress RMB 141,025.64 was transferred to intangible assets.
(2) RMB2,045,633.75 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.
40
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
14 Long-term prepayments
Item Current year Current year
31-12-2011 30-06-2012
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 1,034,351.96 69,239.16 1,103,591.12
Total 1,034,351.96 69,239.16 1,103,591.12
3. .Net book value
Employee dormitory use right 3,119,996.94 3,050,757.78
Total 3,119,996.94 3,050,757.78
Employee dormitory use right is amortized during 30 years.
15 Deferred tax assets/Deferred tax liabilities
Item 30-06-2012 31-12-2011
Deferred tax assets
Provision for bad debts 12,584,118.35 10,033,578.86
Provision for obsolete inventory 3,482,525.26 3,482,525.26
Impairment provision of fixed assets 1,733,016.38 1,733,016.38
Employee’s compensation payable
Total 17,799,659.99 15,249,120.50
Deferred tax liabilities
Fair value changes of financial assets
available for sale
Total
(2)Temporary differences
Items Amount
Provision for bad debts 63,658,645.58
Provision for obsolete inventory 13,930,101.05
Impairment provision of fixed assets 6,932,065.53
Total 84,520,812.16
41
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
16、Provision for impairment
Current year
Current year
Items 31-12-2011 disposal 30-06-2012
addition
Reversal Written off
1.Bad debts provision 85,340,496.39 13,943,786.87 708,412.74 98,575,870.52
2.Provision for obsolete inventories 13,930,101.05 13,930,101.05
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
26,539,196.52 26,539,196.52
investments
6.Provision for the impairment of investing property
7.Provision for the impairment of fixed assets 6,932,065.53 6,932,065.53
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 132,741,859.49 13,943,786.87 708,412.74 145,977,233.62
17 Short-term loans
Terms of borrowing 30-06-2012 31-12-2011
Credit loan
Mortgage loan 13,000,000.00 13,000,000.00
Total 13,000,000.00 13,000,000.00
(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 30-06-2012 31-12-2011
Bank acceptance notes 74,738,983.60 125,670,686.44
Trade acceptance notes 15,285,000.00
Total 74,738,983.60 140,955,686.44
19 Accounts payable
30-06-2012 31-12-2011
Ages
Amount Proportion (%) Amount Proportion (%)
Within1 year 453,548,577.87 92.24 458,315,354.35 94.66
1 to 2 years 23,072,200.56 4.69 17,589,713.33 3.63
2 to 3 years 8,352,130.93 1.70 2,249,786.40 0.47
3 to 4 years 1,500,680.67 0.31 1,405,852.84 0.29
4 to 5 years 891,341.23 0.18 1,184,993.81 0.24
Over 5 years 4,340,123.65 0.88 3,421,981.30 0.71
Total 491,705,054.91 100 484,167,682.03 100
(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.
42
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
(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 31,807,143.58, 6.47% of total accounts
payable. Please refer to the Ⅵ 6 of the notes.
20 Accounts received in advance
30-06-2012 31-12-2011
Ages
Amount Proportion(%) Amount Proportion(%)
Within1 year 198,059,024.03 76.72 304,736,655.03 85.33
1 to 2 years 25,051,799.14 9.70 25,539,905.52 7.15
2 to 3 years 9,271,518.11 3.59 24,714,918.23 6.91
3 to 4 years 24,218,354.25 9.38 1,606,430.41 0.45
4 to 5 years 1,113,356.88 0.43 197,122.10 0.06
Over 5 years 451,153.21 0.18 339,778.31 0.10
Total 258,165,205.62 100 357,134,809.60 100
(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 9,536,022.46, 3.69% 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 31-12-2011 30-06-2012
addition reduction
1.Wages and salaries, bonuses,
allowances and subsidies 30,325,073.64 93,143,841.76 109,701,820.20 13,767,095.20
2.Staff welfare 20,652,536.32 4,247,830.76 3,756,465.62 21,143,901.46
3.Social insurance 195,841.71 19,706,160.76 19,902,002.47
Including：①Medical insurance 18,406.18 4,949,578.38 4,967,984.56
②Retirement pension 147,249.40 12,438,476.21 12,585,725.61
③Unemployment insurance 14,724.94 1,260,426.21 1,275,151.15
④injury insurance premium 9,571.21 618,551.83 628,123.04
⑤Pregnancy insurance 5,889.98 439,128.13 445,018.11
⑥Housing subsidies
⑦Heating subsidies
⑧Total insurance
4. Housing fund 1,289,250.94 10,113,960.37 10,105,418.97 1,297,792.34
5.Labor union fee and employee
education fee 1,166,763.70 1,514,718.13 1,846,139.03 835,342.80
6.Non-currency welfare
7. Redemption for terminations of labor
contract 22,351.14 22,351.14
8.Other
Total 53,629,466.31 128,748,862.92 145,334,197.43 37,044,131.80
There was no amount delay paid at the end of the report period.
43
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
22 Taxes payable
Item 30-06-2012 31-12-2011
Value-added tax 6,053,970.17 -626,308.27
Business tax 1,993,029.60 1,277,350.56
City maintenance and construction tax 1,028,729.92 213,399.77
Enterprise income tax 3,604,207.11 17,037,356.99
Individual income tax 1,667,288.33 139,325.05
Stamp duty 35,432.24 55,699.29
Extra-charges for education 494,723.50 79,802.85
Extra-charges for local education 234,635.03 127,773.25
Water project fund/River route maintenance fee 555,753.00 679,286.85
Safeguard fund for disables 408.00 648.00
Embankment tax 25,875.55
Price adjustment fund -1,658.60
Total 15,668,176.90 19,008,551.29
23 Dividend payable
Name of investors 30-06-2012 31-12-2011
Legal person shares 4,033,156.00 3,783,156.00
Total 4,033,156.00 3,783,156.00
The amount of dividend payable at the end of the report period included dividend payable to Dalian Bingshan Group
Co. Ltd. RMB 950,000.00 and dividend payable to Japan Sanyo Electricity Co., Ltd. RMB 1,500,000.00 which hold
over 5% (including 5%) of the equity of the Company.
24 Other accounts payable
30-06-2012 31-12-2011
Ages
Amount Proportion(%) Amount Proportion(%)
Within 1 year 17,083,258.84 41.31 23,675,178.21 47.99
1 to 2 years 1,465,271.03 3.54 4,500,077.11 9.12
2 to 3 years 2,925,362.03 7.08 5,019,636.13 10.17
3 to 4 years 4,900,986.13 11.85 2,548,816.72 5.17
4 to 5 years 1,998,107.04 4.83 5,338,779.62 10.82
Over 5 years 12,982,230.68 31.39 8,254,451.06 16.73
Total 41,355,215.75 100 49,336,938.85 100
(1) There were RMB 11,018,144.20 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 11,641,129.81, 28.15% 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.
25 Other non-current liabilities —Deferred income
Item 30-06-2012 31-12-2011
Contribution to subsidiary company relocation 557,000.00 1,114,000.00
Subsidy fund for highly effective heat pump and related system 292,550.50 585,101.00
Total 849,550.50 1,699,101.00
For the above deferred incomes, it should be carried forward in 2012 as the schedule for transferring it into the profit
statement.
44
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
26 Long term loans
There was no long term loan in the report period.
27 Other non-current liabilities —Deferred income
Item 30-06-2012 31-12-2011
Subsidy fund for big screw refrigeration research project 14,472,119.79 18,167,711.15
Subsidy fund for highly effective heat pump and related system 5,459,596.00 5,459,596.00
Contribution to subsidiary company relocation 49,016,002.00 49,016,003.00
Big capacity of sea water pre-freeze project of Project 863 13,809,945.60 12,069,945.60
Total 82,757,663.39 84,713,255.75
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 of Shares converted
Item 31-12-2011 Others 30-06-2012
new 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 19,306,034.00 19,306,034.00
Including: Shares held by
92,113.00 92,113.00
domestic natural person
II. Circulating share capital
1. Domestically listed ordinary
215,708,941.00 215,708,941.00
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
29 Capital surpluses
Current year Current year
Item 31-12-2011 30-06-2012
addition reduction
Capital premium 513,645,432.79 513,645,432.79
Other capital surplus 73,191,789.03 73,191,789.03
Total 586,837,221.82 586,837,221.82
30 Surplus reserves
Current year Current year
Item 31-12-2011 30-06-2012
addition reduction
Surplus reserves 445,492,052.28 13,506,661.29 458,998,713.57
Total 445,492,052.28 13,506,661.29 458,998,713.57
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 2011 according to the resolution of the Shareholders’ General Meeting of year 2011.
45
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
31 Retained earnings
Items Amount Extraction or allocation proportion
Retained earnings at the end of prior year 366,477,854.72
Add: Changes in accounting policies
At beginning of the year after retrospective
366,477,854.72
adjustment
Add: Net profit 66,392,427.44
Less: Appropriation of statutory surplus reserves
20% of net profit of the Company of
Appropriation of other reserved capital 13,506,661.29
year 2011
Cash dividends 52,502,246.25 RMB 0.15 per share
Appropriation of employee’s welfare and bonus
2,474,212.15
fund in foreign invested company
Retained earnings at the end of the current year 364,387,162.47
32 Revenue and cost of sales
(1)Business income and cost
Items 2012.01-06 2011.01-06
Operating income 851,218,300.53 947,894,622.28
Key business income 837,302,305.15 931,151,231.12
Other business income 13,915,995.38 16,743,391.16
Operating cost 676,485,145.01 769,799,892.96
Key business cost 663,416,851.11 754,394,019.76
Other business cost 13,068,293.90 15,405,873.20
(2) Key business（type）：
2012.01-06 2011.01-06
Name of type
Revenue Cost Revenue Cost
Manufacturing 837,302,305.15 663,416,851.11 931,151,231.12 754,394,019.76
(3) Key business（product）：
2012.01-06 2011.01-06
Name of product
Revenue Cost Revenue Cost
Refrigeration
837,302,305.15 663,416,851.11 931,151,231.12 754,394,019.76
equipments
(4) Key business（region）：
2012.01-06 2011.01-06
Name of region
Revenue Cost Revenue Cost
North-east of China 627,232,098.55 504,624,152.61 751,473,152.49 626,443,148.63
East of China 8,175,753.92 6,601,965.43 11,000,357.30 8,411,035.40
Centre of China 201,894,452.68 152,190,733.07 168,677,721.33 119,539,835.73
Total 837,302,305.15 663,416,851.11 931,151,231.12 754,394,019.76
46
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
(5) Top five customers
Name Revenue Percentage of total business
income (%)
Dalian Bingshan Group Import & Export Co., Ltd. 61,826,093.68 7.26
Zhengzhou Synear Foodstuff Co., Ltd. 24,362,190.60 2.86
COFCO Meat (Jiangsu) Co., Ltd. 23,800,605.98 2.80
Huanghai Shipbuilding Co., Ltd. of Shandong Province 17,078,550.26 2.01
Ejina Banner Sanhe Chemical Co., Ltd. 10,111,111.11 1.19
Total 137,178,551.63 16.12
33 Business taxes and surcharges
Item 2012.01-06 2011.01-06 Basis of taxes calculated
Business tax 1,065,033.92 1,165,427.42 3% or 5% of Revenue
City maintenance and
3,205,048.05 2,941,562.73 7% of Business tax and Value-added tax
construction tax
Additional education Fees 1,468,466.10 1,266,346.26 3% of Business tax and Value-added tax
Local educational fee 955,822.78 802,071.12 2% of Business tax and Value-added tax
Embankment expenses 111,143.15 5,852.18
Others 5,113.93
Total 6,805,514.00 6,186,373.64
34 Selling and distribution expenses
Items 2012.01-06 2011.01-06
Handle official business expenses 2,400,317.89 2,485,684.76
Salaries and subsidies 21,683,526.31 19,954,021.34
Depreciation expenses 273,208.23 265,535.38
Transportations expenses 6,586,964.11 7,030,153.45
Entertainment expenses 4,302,663.49 4,014,439.03
Traveling expenses 6,443,032.41 7,627,741.44
Maintenance and repair expenses 3,620,302.38 2,708,096.15
Advertise and bids expenses 1,135,852.92 1,271,190.71
Others 749,032.49 411,338.42
Total 47,194,900.23 45,768,200.68
35 Administrative expenses
Items 2012.01-06 2011.01-06
Handle official business expenses 6,106,308.77 6,778,797.44
Salaries and subsidies 52,155,029.15 49,957,689.75
Depreciation expenses 3,587,274.79 3,756,953.22
Transportations expenses 834,648.81 1,046,451.63
Entertainment expenses 1,964,632.15 1,616,092.45
Traveling expenses 1,779,844.42 1,611,122.52
Maintenance and repair expenses 2,574,549.52 4,166,276.11
Advertise expenses 228,217.25 108,237.00
Other taxes 4,273,050.16 4,505,493.35
Insurance expenses 1,804,720.89 1,482,221.60
Research and development expenses 742,8943.7 6,675,141.17
Amortization of long term assets 2,114,872.91 2,144,425.42
47
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
Design consultant and test service expenses 1,808,814.77 2,192,575.99
Others 1,464,456.05 1,741,942.01
Total 88,125,363.34 87,783,419.66
36 Financial expenses
Items 2012.01-06 2011.01-06
Interest expenses 691,458.36 2,141,136.06
Less: interest income 3,552,147.62 1,094,277.01
Losses on exchange 96,314.50 69,508.39
Less: gain on exchange 2,635.48 5,152.86
Other expenses 249,980.61 277,101.29
Total -2,517,029.63 1,388,315.87
37 Impairment losses
Items 2012.01-06 2011.01-06
Bad debt provision 13,943,786.87 11,670,249.65
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
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 13,943,786.87 11,670,249.65
38、Gain/ (loss) from investments
(1) Categeries
Items 2012.01-06 2011.01-06
Calculated by cost method 3,009,889.50
Calculated by equity method 44,944,226.71 35,342,590.94
Investment income due to disposal of the equity
26,001.99 49,768,242.00
of associated company
Total 44,970,228.70 88,120,722.44
(2) Calculated by cost method（more than 5% of profit）
Name 2012.01-06 2011.01-06 Reason of changes
Guotai Junan Securities Co., Ltd. 3,009,889.50 No dividend distribution
Total 3,009,889.50
48
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
(3) Calculated by equity method（more than 5% of profit）
Name 2012.01-06 2011.01-06 Reason of changes
Dalian Sanyo Cold-chain Co., Ltd 10,957,088.27 9,506,908.21 Increase of business profit
Grand Ocean-showa Auto Air Conditioning
7,669,105.73 6,870,056.64 Increase of business profit
(Dalian) Co., Ltd.
Dalian Sanyo Compressor Co., Ltd. 18,328,875.46 23,641,535.89 Decrease of operating income
Dalian Sanyo Air-conditioner Co., Ltd. -8,014,452.98 equity transferred
Dalian Fuji Bingshan Vending Machine Co., Ltd. 5,080,150.27 2,091,301.35 Increase of business profit
Total 42,035,219.73 34,095,349.11
(4)There was no severe constrict on the collection of the investment earnings.
39 Non-business incomes
(1)Details
Item 2012.01-06 2011.01-06
Gain on the disposal of non-current assets 23,500.00 99,194.20
Penalty and fine income 124,212.00 400,000.00
Subsidy fund from government 1,092,997.66 427,723.29
Deferred income 4,545,142.86 3,605,050.50
Debts need not paid 773,202.01 750,795.43
Others 6,775.95 85,017.31
Total 6,565,830.48 5,367,780.73
(2) Subsidy fund from government
Items 2012.01-06 2011.01-06 Explanations
Patent grant and award 10,500.00 According to the related regulations
Others 1,082,497.66 427,723.29 Tax refund
Total 1,092,997.66 427,723.29
40 Non-business expenses
Item 2012.01-06 2011.01-06
Loss on the disposal of non-current assets 202,086.55 29,234.67
Fines and penalties 2,569.00 4,036.56
Donation expenditure 200,000.00
Others 55,534.34 42,673.15
Total 260,189.89 275,944.38
41 Income tax expense
Item 2012.01-06 2011.01-06
Current income tax expense 6,182,954.68 18,958,629.49
Deferred income tax expense -2,550,539.49 -1,821,786.08
Total 3,632,415.19 17,136,843.41
49
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
42、Basic earnings per share and diluted earnings per share calculation process
(1)Calculation of basic earning per share
Item No. 2012.01-06 2011.01-06
Profit or loss attributable to the Company 1 66,392,427.44 95,488,392.56
Profit or loss after deducting extraordinary gain or loss
2 63,276,376.07 55,527,288.08
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 0.19 0.27
Basic earnings per share deducting extraordinary gain or loss 13=2/3 0.18 0.16
(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 2012.01-06 2011.01-06
1、Gain/(loss) on financial assets available for sale 36,471,900.00
Less：Income tax infection on financial assets available for sale 8,367,975.00
Net amount transferred into profit and loss at current period that
reckon into other comprehensive income at former period
Subtotal 28,103,925.00
50
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
Items 2012.01-06 2011.01-06
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.Others
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
44. Relevant information about cash flow statement
(1) Other cash received relating to operating activities
Item 2012.01-06
Returns travel expense receivable 2,004,720.76
Deposit received 5,845,512.00
Financial allocation 1,750,500.00
Interest income 3,552,147.62
Others 2,910,245.05
Total 16,063,125.43
(2) Other cash paid relating to operating activities
Item 2012.01-06
Travel expense 8,876,368.97
Deposit paid 6,119,700.00
Sales expenditure 17,174,325.89
Administrative expenditure 19,606,623.34
Bank fees 249,980.61
Others 2,012,239.68
Total 54,039,238.49
(3) Other cash paid relating to financing activities
Item 2012.01-06
Discount interest for acceptance notes 70,927.69
Total 70,927.69
51
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
45 Complementary information for consolidated cash flow statement
(1) The relationship between the net profit and the net cash flows from operating activities
Item 2012.01-06 2011.01-06
1. Reconciliation from the net profit to the cash flows from operating
activities
Net profit 68,824,074.81 101,373,885.20
Add: Provisions for assets impairment 13,943,786.87 11,670,249.65
Depreciation of fixed assets 16,274,896.88 16,746,611.41
Amortization of intangible assets 2,045,633.75 2,075,186.26
Amortization of long-term deferred expenses 69,239.16 69,239.16
Losses on disposal of fixed assets, intangible assets and other long-
169,656.32 -69,959.53
term assets (gains, -)
Losses on scrapping of fixed assets (gains, -) 8,930.23
Losses on variation of fair value (gains, -)
Finance expenses (income, -) 797,054.21 2,313,987.72
Investment losses (gains, -) -44,998,103.70 -88,120,722.44
Decrease in deferred tax assets (increase, -) -2,550,539.49 -1,821,786.08
Increase in deferred tax liabilities (decrease, -) 8,367,975.00
Decrease in inventory (increase, -) 85,803,474.29 -11,795,597.64
Decrease in operating receivables (increase, -) -87,893,219.92 -132,215,799.61
Increase in operating payables (decrease, -) -180,130,403.46 182,076,706.46
Others
Net cash flows from operating activities -127,635,520.05 90,669,975.56
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 441,824,449.34 625,558,513.48
Less: Cash at the beginning of the period 681,077,489.30 491,775,575.71
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 -239,253,039.96 133,782,937.77
(2) Cash and cash equivalents
Item 2012.01-06 2011.01-06
1.Cash 441,824,449.34 681,077,489.30
Including: cash on hand 134,137.65 101,242.57
Bank deposits that can be used for payment whenever necessary 441,500,734.49 680,841,246.73
Other monetary capital that can be used for payment whenever
necessary 189,577.20 135,000.00
2.cash equivalents
Including: Bonds mature within 3 months
3.Balance of cash and cash equivalents at the end of the year 441,824,449.34 681,077,489.30
52
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
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.
Wuhan New World Limited
7 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
8 liabilities Industry Wuhan Ding Jie Installation RMB8,000,000.00 5 100 78930854-6
Conditioner company
Engineering Co., Ltd.
Limited
Dalian Daleng Metal
9 liabilities Industry Dalian Zhang He Manufacturing RMB20,000,000.00 100 100 66920026-6
Technology Co., Ltd. company
53
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
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
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 Home Appliance Co., Ltd. Associated company 60486096-8
Beijing Huashang Bingshan Refrigeration and Air-conditioning Machinery
Associated company 74261540-X
Co., Ltd.
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.
Dalian Bingshan Group Materials Trading Co. , Ltd Subsidiary of Dalian Bingshan Group 74437418-7
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.
Linde Engineering (Dalian) Co., Ltd. Affiliated company of Dalian Bingshan Group 77301721-8
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
54
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
5、The transactions between the Company and the related parties
(1) Purchases of goods from related parties/ Sales of goods to related parties
2012.01-06 2011.01-06
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 3,911,260.61 0.59 7,218,605.08 0.94
Dalian Sanyo Compressor Co., Ltd. Purchases Purchases of goods Market price 1,729,316.36 0.26 2,742,806.51 0.36
Dalian Sanyo Meica Electronics Co., Ltd. Purchases Purchases of goods Market price 494,282.88 0.06
Dalian Bingshan Group Cold Drink
Purchases Purchases of goods Market price 13,403,725.85 2.02 14,864,833.34 1.93
Equipment Co., Ltd.
Dalian Bingshan Group Refrigeration
Purchases Purchases of goods Market price 25,093,366.27 3.78 30,685,423.86 3.99
Equipment Co., Ltd.
Dalian Third Refrigeration Equipment
Purchases Purchases of goods Market price 6,579,617.42 0.99 5,849,353.51 0.76
Factory
Dalian Spindle Cooling Towers Co., Ltd. Purchases Purchases of goods Market price 397,880.35 0.06 960,100.00 0.12
BAC Dalian Co., Ltd. Purchases Purchases of goods Market price 2,529,9951.7 3.81 30,716,126.31 3.99
Dalian Bingshan Group Import & Export
Purchases Purchases of goods Market price 10,672,874.76 1.61 8,032,313.01 1.04
Co. , Ltd
Dalian Bingshan Group Materials Trading
Purchases Purchases of goods Market price 2,129,367.84 0.32 5,252,279.78 0.68
Co. , Ltd
Dalian Bingshan Metal Technology Co., Ltd. Purchases Purchases of goods Market price 1,128,500.39 0.17 1,770,942.81 0.23
Dalian Sanyo Refrigeration Co., Ltd. Sales Sales of goods Market price 18,472.05 0.002 1,388,601.71 0.15
Dalian Sanyo Cold-chain Co., Ltd Sales Sales of goods Market price 6,079,572.13 0.71 10,453,459.51 1.10
Dalian Sanyo Compressor Co., Ltd. Sales Sales of goods Market price 3,896,475.10 0.46 5,903,604.11 0.62
Dalian Bingshan Group Cold Drink
Sales Sales of goods Market price 2,212,929.91 0.26 2,715,630.76 0.29
Equipment Co., Ltd.
Dalian Bingshan Group Refrigeration
Sales Sales of goods Market price 1,827,758.11 0.21 2,961,286.10 0.31
Equipment Co., Ltd.
Dalian Third Refrigeration Equipment
Sales Sales of goods Market price 4,072,537.01 0.48 2,671,662.46 0.28
Factory
Dalian Bingshan Group Import & Export
Sales Sales of goods Market price 61,826,093.68 7.26 68,737,105.79 7.25
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 235,854.70 0.03 391,452.99 0.04
Equipment Co., Ltd.
Beijing Huashang Bingshan Serial
Sales Sales of goods Market price 497,102.36 0.06 7,681,692.67 0.81
Refrigeration Equipment Co., Ltd.
Dalian Fuji Bingshan Vending Machine Co.,
Sales Sales of goods Market price 1,683,376.19 0.20 1,118,994.75 0.12
Ltd.
Shenyang Sanyo Air-conditioner Co., Ltd. Sales Sales of goods Market price 12,255.56 0.001
Dalian Bingshan Metal Technology Co., Ltd. Sales Sales of goods Market price 75,625.64 0.01 87,357.26 0.01
Daliian Sanyo High-Efficient Refrigeration
Sales Sales of goods Market price 547,259.10 0.06 302,399.72 0.03
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.
55
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
(3)Guarantee with related companies
No.
6 Amounts due from/to related parties
(1) Notes receivable
Name of the related parties 30-06-2012 31-12-2011
Dalian Sanyo Compressor Co., Ltd. 135,834.10 270,646.95
Dalian Bingshan Group Import & Export Co., Ltd. 10,388,746.99
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 222,288.50
(2) Accounts paid in advance
Name of the related parties 30-06-2012 31-12-2011
Dalian Sanyo Compressor Co., Ltd. 2,487.00 2,487.00
Dalian Sanyo Refrigeration Co., Ltd. 156,000.00
Dalian Sanyo Cold-chain Co., Ltd. 59,744.00 33,719.00
BAC Dalian Co., Ltd. 15,164.00
(3) Accounts receivable
30-06-2012 31-12-2011
Provision Provision
Name of the related parties
Amount for bad Amount for bad
debts debts
Dalian Sanyo Compressor Co., Ltd. 1,810,570.58 90,528.53 480,500.00 24,025.00
Dalian Sanyo Refrigeration Co., Ltd. 1,097,645.75 54,882.29 1,764,817.10 88,240.86
Dalian Sanyo Cold-chain Co., Ltd. 2,730,852.75 136,542.64 1,996,079.59 99,803.98
Beijing Bingshan Serial Refrigeration Equipment Co.,
640,985.77 32,049.29 4,114.25 205.71
Ltd.
Dalian Bingshan Group Import & Export Co., Ltd. 657,425.60 32,871.28
Dalian Bingshan – P&A Recreation Development
263,278.20 13,163.91
Engineering Ltd.
Beijing Huashang Bingshan Refrigeration and Air-
1,839,035.48 91,951.77 2,271,108.48 113,555.42
conditioning Machinery Co., Ltd.
Dalian Fuji Bingshan Vending Machine Co., Ltd. 1,198,654.02 59,932.70 629,102.93 31,455.15
Dalian Sanyo High-Efficient Refrigeration System Co.,
665,460.25 33,273.01 489,444.02 24,472.20
Ltd.
Dalian Bingshan Metal Technology Co., Ltd. 20,850.00 1,042.50
(4) Other accounts receivable
30-06-2012 31-12-2011
Name of the related parties Provision for bad Provision for bad
Amount Amount
debts debts
BAC Dalian Co., Ltd. 30,000.00 1,500.00 30,000.00 1,500.00
(5) Notes payable
Name of the related parties 30-06-2011 31-12-2010
Dalian Spindle Cooling Towers Co., Ltd. 96,000.00
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 9,200,000.00 3,000,000.00
Dalian Bingshan Group Cold Drink Equipment Co., Ltd. 550,000.00 7,494,750.00
BAC Dalian Co., Ltd. 101,000.00
56
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
Dalian Bingshan Group Materials Trading Co. , Ltd. 600,000.00 1,310,000.00
Dalian Third Refrigeration Equipment Factory 1,300,000.00 800,000.00
Dalian Bingshan Group Import & Export Co., Ltd. 1,257,800.00
(6) Accounts payable
Name of the related parties 30-06-2012 31-12-2011
Dalian Third Refrigeration Equipment Factory 685,052.32 1,905,582.64
Dalian Bingshan Group Cold Drink Equipment Co., Ltd. 10,009,658.47 6,378,338.18
BAC Dalian Co., Ltd. 15,641,169.95 14,345,501.95
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 2,694,412.07 7,079,055.83
Dalian Sanyo Refrigeration Co., Ltd. 80,000.00
Dalian Sanyo Cold-chain Co., Ltd. 9,516.00 5,709.40
Dalian Sanyo Meica Electronics Co., Ltd. 285,191.58
Dalian Sanyo Home Appliance Co., Ltd. 42,823.00 42,823.00
Dalian Spindle Cooling Towers Co., Ltd. 453,403.00 457,903.00
Dalian Bingshan Group Import & Export Co., Ltd. 6,447.91 2,608,467.69
Dalian Sanyo Compressor Co., Ltd. 229,653.27 101,429.52
Dalian Bingshan Group Materials Trading Co., Ltd 1,382,203.88
Dalian Bingshan Metal Technology Co., Ltd. 652,803.71 4,258.25
(7) Accounts received in advance
Name of the related parties 30-06-2012 31-12-2011
Dalian Bingshan – P&A Recreation Development
770,100.00 770,100.00
Engineering Ltd.
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 8,415.30 458,695.30
Shenyang Sanyo Air-conditioner Co., Ltd. 3,536.00
Dalian Sanyo Refrigeration Co., Ltd. 2,007,000.00 2,008,923.50
Dalian Bingshan Group Import & Export Co. , Ltd. 5,869,471.16 2,026,840.60
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 3,128.48
Beijing Huashang Bingshan Refrigeration and Air-
877,500.00 150,000.00
conditioning Machinery Co., Ltd.
(8) Other Accounts payable
Name of the related parties 30-06-2012 31-12-2011
Dalian Bingshan Group Co., Ltd. 11,018,144.20 11,337,177.87
Dalian Third Refrigeration Equipment Factory 101,000.00 101,000.00
Dalian Bingshan Group Import & Export Co. , Ltd. 521,985.61 444,527.31
Dalian Bingshan H2O3 Environmental Solution Co. , Ltd. 560,139.68
(9) Dividend payable
Name of the related parties 30-06-2012 31-12-2011
Dalian Bingshan Group Co., Ltd. 950,000.00 1,900,000.00
Ⅶ.Contingency
No.
Ⅷ. Commitments
No.
Ⅸ.Unadjusted events after the Balance Sheet Date
No.
Ⅹ.Other significant events
No.
57
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
Ⅺ.Notes to the financial statements of the parent company
1 Accounts receivable
(1) Classified by account nature
30-06-2012 31-12-2011
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 296,554,201.69 100 60,535,022.34 20.41 238,526,668.29 100 52,920,054.93 22.19
significant but with
high risk in groups
Other insignificant
items
Total 296,554,201.69 100 60,535,022.34 20.41 238,526,668.29 100 52,920,054.93 22.19
The aging of accounts receivable and related provisions for bad debts
30-06-2012 31-12-2011
Proportion Provision for bad Proportion Provision for bad
Ages Amount Amount
(%) debts (%) debts
Within1 year 127,405,924.09 42.96 6,370,296.20 108,128,040.69 45.33 5,391,015.53
1 to 2 years 81,074,451.48 27.34 8,107,445.15 52,598,212.49 22.05 5,259,821.25
2 to 3 years 42,702,015.09 14.40 12,810,604.53 32,408,419.05 13.59 9,722,525.72
3 to 4 years 18,193,995.08 6.13 9,096,997.54 19,695,131.79 8.26 9,847,565.90
4 to 5 years 15,140,685.15 5.11 12,112,548.12 14,988,688.68 6.28 11,990,950.94
Over 5 years 12,037,130.80 4.06 12,037,130.80 10,708,175.59 4.49 10,708,175.59
Total 296,554,201.69 100 60,535,022.34 238,526,668.29 100 52,920,054.93
(2) There is no receivables not individually significant but with high risk in groups during the report period.
(3) There is no receivable account of the Company that has been written off before this report period but recovered
in this period.
(4) There is no accounts receivable being recovered by debts reconstruction during the report period.
(5) There is no receivable account of the Company being written off in the report period.
(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
Company Amount Age Proportion (%)
with the Company
COFCO Meat (Jiangsu) Co., Ltd. Non-affiliated 21,320,682.30 Less than 1 year 7.19
COFCO Meat (Suqian) Co., Ltd. Non-affiliated 15,756,917.20 Less than 1 year 5.31
Dalian Xinghai Bay Development &
Non-affiliated 11,242,693.00 3-4 years 3.79
Construction Management Center
Inner Mongolia Sucon Silicone Co., Ltd. Non-affiliated 6,369,000.00 1-2 years 2.15
Dalian Jinyu New Energy Technological
Non-affiliated 5,500,000.00 4-5 years, over 5 years 1.86
Development Co., Ltd.
Total 60,189,292.50 20.30
58
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
(8) The amount of accounts receivable due from related companies are RMB 2,925,977.58, 0.99% of total accounts
receivable.
The relationship
Proportion of total accounts
Name with the Amount
receivable (%)
Company
Beijing Huashang Bingshan Refrigeration and Associated
1,589,035.48 0.54
Air-conditioning Machinery Co., Ltd. company
Associated
Dalian Sanyo Compressor Co., Ltd. 1,330,070.58 0.45
company
Beijing Bingshan Serial Refrigeration Subsidiary of
6,871.52 0.002
Equipment Co., Ltd. Bingshan Group
Total 2,925,977.58 0.99
(9) There is no accounts receivable being ended reorganization or being negotiated during the reporting period.
2 Other accounts receivable
(1) Classified by account nature
30-06-2012 31-12-2011
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 8,225,939.60 100 601,267.79 7.31 6,137,857.60 100 653,158.56 10.64
with high risk in groups
Other insignificant items
Total 8,225,939.60 100 601,267.79 7.31 6,137,857.60 100 653,158.56 10.64
The ageing of other accounts receivable and related provisions for bad debts
30-06-2012 31-12-2011
Ages Proportion Provision for bad Proportion Provision for
Amount Amount
(%) debts (%) bad debts
Within1 year 6,069,671.02 73.78 303,483.55 2,859,183.68 46.58 142,959.18
1 to 2 years 1,830,924.82 22.26 183,092.48 2,447,569.64 39.88 244,756.96
2 to 3 years 300,000.00 3.65 90,000.00 805,759.52 13.13 241,727.86
3 to 4 years 3,260.00 0.05 1,630.00
4 to 5 years 3,260.00 0.04 2,608.00 1.00 0.80
Over 5 years 22,083.76 0.27 22,083.76 22,083.76 0.36 22,083.76
Total 8,225,939.60 100 601,267.79 6,137,857.60 100 653,158.56
(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.
59
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
(7) The first five arrearage entities of other accounts receivable
The relationship with
Company Amount Age Proportion (%)
the Company
Gao Yulong Non-affiliated 1,432,000.00 1-2 years 17.41
COFCO Meat (Jiangsu) Co., Ltd. Non-affiliated 450,000.00 Less than 1 year 5.47
Zheng Xiaolong Non-affiliated 300,000.00 2-3 years 3.65
Fund Accounting Center for
Institutions of Dalian Economic & Non-affiliated 265,950.62 1-2 years 3.23
Technical Development Zone
Xu Lihua Non-affiliated 215,000.00 Less than 1 year 2.61
Total 2,662,950.62 32.37
(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.
3 Long-term equity investments
(1) Details of long-term equity investments
Provision for Cash dividend of
Calculatio Sharehold Voting right Provision for
No. Name Initial cost Beginning balance Changes Ending balance impairment of the the current
n method ing（%） （%） impairment
current period period
Dalian Bingshan –
P&A Recreation Equity
1 1,034,675.00 2,880,469.82 -236,957.37 2,643,512.45 50 50
Development method
Engineering Co., Ltd.
Dalian Jiale Vending
Equity
2 Machine Operation 18,750,000.00 14,561,156.38 -150,944.10 14,410,212.28 50 50
method
Co., Ltd.
Dalian Bingshan
Equity
3 Group Import & 1,200,000.00 10,528,793.37 1,095,725.94 11,624,519.31 24 24
method
Export Co. , Ltd.
Dalian Grand Ocean
Thermo King
Equity
4 Transport 2,871,708.00 3,457,718.84 -236,660.09 3,221,058.75 40 40
method
Refrigeration
Engineering Co., Ltd
Dalian Sanyo Equity
5 85,416,929.20 105,676,566.88 41,071,100.35 146,747,667.23 40 40 4,800,000.00
Refrigeration Co., Ltd. method
Dalian Honjo Equity
6 3,908,911.50 9,259,232.78 -369,612.69 8,889,620.09 30 30 1,073,918.58
Chemical Co., Ltd. method
Dalian Sanyo Cold- Equity
7 134,658,753.75 210,145,798.94 2,957,088.27 213,102,887.21 40 40 8,000,000.00
chain Co., Ltd method
Grand Ocean-showa
Equity
8 Auto Air Conditioning 24,402,234.58 42,845,542.95 7,669,105.73 50,514,648.68 20 20
method
(Dalian) Co., Ltd.
Dalian Sanyo Equity
9 176,953,841.88 319,147,751.40 2,328,875.46 321,476,626.86 40 40 16,000,000.00
Compressor Co., Ltd. method
60
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
Provision for Cash dividend of
Calculatio Sharehold Voting right Provision for
No. Name Initial cost Beginning balance Changes Ending balance impairment of the the current
n method ing（%） （%） impairment
current period period
Dalian Sanyo Meica Equity
10 9,649,590.00 27,081,570.31 650,275.22 27,731,845.53 30 30 600,000.00
Electronics Co., Ltd. method
Dalian Sanyo Home Equity
11 19,666,212.00 11,694,400.00 11,694,400.00 10.91 10.91 11,694,400.00
Appliance Co., Ltd. method
Beijing Huashang
Bingshan Refrigeration Equity
12 490,000.00 794,216.13 30,430.07 824,646.20 49 49
and Air-conditioning method
Machinery Co., Ltd.
Dalian Bingshan H2O3
Equity
13 Environmental 2,731,377.50 505,268.76 -505,268.76
method
Solution Co. , Ltd.
Dalian Fuji Bingshan
Equity
14 Vending Machine Co., 66,416,364.00 59,054,700.59 5,080,150.27 64,134,850.86 49 49
method
Ltd.
Daliian Sanyo High-
Equity
15 Efficient Refrigeration 20,000,000.00 24,103,483.12 -1,858,048.93 22,245,434.19 25 25 1,250,000.00
method
System Co., Ltd.
Zibo Electric Traction Cost
16 420,000.00 420,000.00 420,000.00 0.76 0.76 420,000.00
Machine Co., Ltd. method
Liaoning Mec Group Cost
17 1,020,000.00 1,020,000.00 1,020,000.00 3.57 3.57
Co., Ltd. method
Guotai Junan Cost
18 30,098,895.00 30,098,895.00 30,098,895.00 0.49 0.49 1,582,164.89
Securities Co., Ltd. method
Guotai Junan
Cost
19 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
20 11,207,806.00 11,207,806.00 11,207,806.00 17.8 17.8
Control (Suzhou) Co., method
Ltd.
Liaoning Enterprises Cost
21 105,000.00 105,000.00 105,000.00 4.2 4.2 105,000.00
UnitedIndustryCo.,Ltd. method
Dalian Bingshan
Cost
22 Group Materials 250,000.00 250,000.00 250,000.00 5 5
method
Trading Co., Ltd.
Shenyang Sanyo Air- Cost
23 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
24 Group Refrigeration 20,036,841.62 20,036,841.62 20,036,841.62 100 100
method
Installation Co., Ltd.
Dalian Bingshan Cost
25 16,200,000.00 16,200,000.00 16,200,000.00 90 90
Group Sales Company method
61
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
Provision for Cash dividend of
Calculatio Sharehold Voting right Provision for
No. Name Initial cost Beginning balance Changes Ending balance impairment of the the current
n method ing（%） （%） impairment
current period period
Dalian Bingshan Metal Cost
26 12,501,344.60 12,501,344.60 12,501,344.60 64.25 64.25
Processing Co., Ltd. method
Dalian Bingshan Air-
Cost
27 Conditioning 36,506,570.00 36,506,570.00 36,506,570.00 70 70 2,450,000.00
method
Equipment Co., Ltd.
Dalian Bingshan
Cost
28 Guardian Automation 1,522,117.80 1,522,117.80 1,522,117.80 60 60 1,537,220.05
method
Co., Ltd.
Dalian Bingshan
Ryosetsu Quick Cost
29 5,745,097.40 5,745,097.40 5,745,097.40 70 70
Freezing Equipment method
Co., Ltd.
Wuhan New World
Cost
30 Refrigeration Industrial 17,980,400.00 17,980,400.00 17,980,400.00 51 51 2,550,000.00
method
Co., Ltd.
Wuhan New World
Refrigeration Air Cost
31 400,000.00 400,000.00 400,000.00 5 100
Conditioner method
Engineering Co., Ltd.
Dalian Daleng Metal Cost
32 20,000,000.00 20,000,000.00 20,000,000.00 100 100
Technology Co., Ltd. method
Total 779,300,604.55 1,052,886,677.41 57,525,259.37 1,110,411,936.78 26,110,196.52 38,261,138.63
(2)Listed with kinds of long term investment：
Item 30-06-2012 31-12-2011
Subsidiaries 130,892,371.42 130,892,371.42
Associates 882,208,204.91 824,295,044.07
Joint venture 17,053,724.73 17,441,626.20
Other long-term equity investments 80,257,635.72 80,257,635.72
Total 1,110,411,936.78 1,052,886,677.41
Less: Provision for impairment of
26,110,196.52 26,110,196.52
long-term equity investments
Net 1,084,301,740.26 1,026,776,480.89
(3) Provision for impairment on long-term equity investment
Name of invested company 30-06-2012 31-12-2011
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
Zibo Electric Traction Machine Co., Ltd. 420,000.00 420,000.00
Total 26,110,196.52 26,110,196.52
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
4 Revenue and cost of sales
(1)Business income and cost
Items 2012.01-06 2011.01-06
Operating income 505,055,917.77 638,661,382.66
Key business income 493,081,985.13 623,794,929.86
Other business income 11,973,932.64 14,866,452.80
Operating cost 410,724,964.56 538,378,671.32
Key business cost 398,810,722.34 524,346,961.48
Other business cost 11,914,242.22 14,031,709.84
(2) Key business（type）
2012.01-06 2011.01-06
Name of type
Revenue Cost Revenue Cost
Manufacturing 493,081,985.13 398,810,722.34 623,794,929.86 524,346,961.48
(3) Key business（product）
2012.01-06 2011.01-06
Name of product
Revenue Cost Revenue Cost
Refrigeration
493,081,985.13 398,810,722.34 623,794,929.86 524,346,961.48
equipments
(4) Key business (region)
2012.01-06 2011.01-06
Name of region
Revenue Cost Revenue Cost
North-east of
493,081,985.13 398,810,722.34 623,794,929.86 524,346,961.48
China
(5) Top five customers
Percentage of total
Name Revenue
business income (%)
Dalian Bingshan Group Import & Export Co., Ltd. 58,165,722.50 11.52
COFCO Meat (Jiangsu) Co., Ltd. 23,800,605.98 4.71
Zhengzhou Synear Foodstuff Co., Ltd. 17,112,190.60 3.39
Huanghai Shipbuilding Co., Ltd. of Shandong Province 17,078,550.26 3.38
COFCO Meat (Suqian) Co., Ltd. 9,921,932.48 1.96
Total 126,079,001.82 24.96
5 Gain/ (loss) from investments
(1) Categery
Item 2012.01-06 2011.01-06
Gain arising from dividends of subsidiaries 6,537,220.05 10,864,126.72
Long-term equity investment income accounted for by using the equity method 44,944,226.71 35,342,590.94
Investment income due to disposal of the equity of associated company 26,001.99 49,768,242.00
Total 51,507,448.75 95,974,959.66
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
(2) Gain arising from dividends of subsidiaries
Name of invested company 2012.01-06 2011.01-06 Reason of changes
Guotai Junan Securities Co., Ltd. 3,009,889.50 No distributed dividend
Dalian Bingshan Air-Conditioning Equipment Co., Ltd. 2,450,000.00 1,050,000.00 More distributed dividend
Dalian Bingshan Guardian Automation Co., Ltd. 1,537,220.05 1,704,237.22 Less distributed dividend
Wuhan New World Refrigeration Industrial Co., Ltd. 2,550,000.00 5,100,000.00 Less distributed dividend
Total 6,537,220.05 10,864,126.72
(3) Long-term equity investment income accounted for by using the equity method
Name of invested company 2012.01-06 2011.01-06 Reason of changes
Dalian Sanyo Refrigeration Co., Ltd. 1,060,880.35 2,158,424.61 Decrease of operating income
Dalian Sanyo Cold-chain Co., Ltd 10,957,088.27 9,506,908.21 Increase of business profit
Grand Ocean-showa Auto Air Conditioning (Dalian) Co., Ltd. 7,669,105.73 6,870,056.64 Increase of business profit
Dalian Sanyo Compressor Co., Ltd. 18,328,875.46 23,641,535.89 Decrease of operating income
Dalian Bingshan Group Import & Export Co., Ltd. 1,095,725.94 604,760.26 Increase of business profit
Dalian Grand Ocean Thermo King Transport Refrigeration
-236,660.09 -338,998.05 Increase of business profit
Engineering Co., Ltd
Dalian Honjo Chemical Co., Ltd. 704,305.89 423,931.10 Increase of business profit
Dalian Sanyo Meica Electronics Co., Ltd. 1,250,275.22 1,534,049.64 Decrease of operating income
Dalian Sanyo Air-conditioner Co., Ltd. -8,014,452.98 Equity transferred
Dalian Sanyo Home Appliance Co., Ltd. -3,585,762.21 In the process of liquidation
Beijing Huashang Bingshan Refrigeration and Air-conditioning
30,430.07 -212,500.95 Increase of business profit
Machinery Co., Ltd.
Dalian Fuji Bingshan Vending Machine Co., Ltd. 5,080,150.27 2,091,301.35 Increase of business profit
Daliian Sanyo High-Efficient Refrigeration System Co., Ltd. -608,048.93 1,100,307.66 Decrease of operating income
Dalian Bingshan – P&A Recreation Development Engineering
-236,957.37 -182,263.76 Decrease of operating income
Co., Ltd.
Dalian Jiale Vending Machine Operation Co., Ltd. -150,944.10 -254,706.47 Increase of business profit
Total 44,944,226.71 35,342,590.94
(4)There was no severe constrict on the collection of the investment earnings.
6、Supplementary information of cash flow statement
Supplementary information 2012.01-06 2011.01-06
1. Reconciliation from the net profit to the cash flows from operating
activities
Net profit 65,100,553.12 96,599,744.96
Add: Provisions for assets impairment 7,563,076.64 10,388,939.23
Depreciation of fixed assets 10,113,983.87 10,379,575.86
Amortization of intangible assets 1,270,594.62 1,287,101.72
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
term assets (gains, -)
Losses on scrapping of fixed assets (gains, -) 321.27
Losses on variation of fair value (gains, -)
Finance expenses (income, -) 92,165.31 1,536,457.49
64
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
Investment losses (gains, -) -51,507,448.75 -95,974,959.66
Decrease in deferred tax assets (increase, -) -1,890,769.16 -2,112,770.92
Increase in deferred tax liabilities (decrease, -) 8,367,975.00
Decrease in inventory (increase, -) 45,350,870.65 40,943,492.85
Decrease in operating receivables (increase, -) -48,212,493.64 -82,293,859.24
Increase in operating payables (decrease, -) -128,596,217.47 89,995,516.35
Others
Net cash flows from operating activities -100,654,889.72 79,169,149.95
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 389,182,297.39 502,041,279.72
Less: Cash at the beginning of the period 585,557,597.61 373,620,785.42
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 -196,375,300.22 128,420,494.30
(2) Cash and cash equivalents
Item 2012.01-06 2011.01-06
1.Cash 389,182,297.39 585,557,597.61
Including: cash on hand 16,523.03 29,443.74
Bank deposits that can be used for payment whenever necessary 389,165,774.36 585,528,153.87
Other monetary capital that can be used for payment whenever
necessary
2.cash equivalents
Including: Bonds mature within 3 months
3.Balance of cash and cash equivalents at the end of the year 389,182,297.39 585,557,597.61
Including: Cash or cash equivalents which was restricted in use of the
Company and subsidiaries in the group
65
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
Ⅻ. Other supplementary Information
1 Non-recurring profits and losses
Non-recurring gains and losses item 2012.01-06 2011.01-06
1. Gain/loss from disposal of non-current assets -178,586.55 49,838,201.53
2.Tax return or exemption exceeding authority or without formal
authorization documents
3.Governmental subsidy written into current gains and losses 10,500.00 2,755,500.00
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
assets
8. Other net income and expense from non-operation 4,541,677.98 989,103.03
Total 4,373,591.43 53,582,804.56
Less：Affected amount of income tax from non-recurring gains and
1,038,778.19 13,322,076.47
losses
Non-recurring gains and losses, net 3,334,813.24 40,260,728.09
Included: Attributable to minority interest 218,761.87 299,623.61
Attributable to parent company 3,116,051.37 39,961,104.48
2 Earnings per share
The weighted EPS
Item average ROE
(%) Basic EPS Diluted EPS
Net profit attributable to the Company’s ordinary
3.81 0.19 0.19
shareholders
Net profit attributable to the Company’s ordinary
shareholders after deducting non-recurring gains and 3.63 0.18 0.18
losses
66
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
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 2012.06.30 2011.12.31 Reasons
（%）
Decrease of monetary fund received
in cargo account settlement; increase
Monetary funds 441,824,449.34 690,377,489.30 -36.00
of investment; increase of purchasing
fixed assets.
Increase of cargo account paid with
Notes receivable 30,550,561.32 61,349,222.44 -50.20
notes in the report period
Mainly due to increase of prepaid
cargo account for relocation and
Account paid in advance 70,441,258.42 45,740,166.61 54.00
reconstruction of the foundry
workshop.
Mainly due to increase of undue
Dividend receivable 14,225,000.00 27,875.00 50931.39
receivable dividend.
Mainly due to decrease of purchase
Notes payable 74,738,983.60 140,955,686.44 -46.98
amount
Payment of the bonus pre-drawn in
Employee’s compensation payable 37,044,131.80 53,629,466.31 -30.93
the end of 2011 in this report period.
Amortization of incomes in the report
Other current liabilities 849,550.50 1,699,101.00 -50.00
period.
2、The special change items of income statement
Change Ratio
Items of income statement 2012.01-06 2011.01-06 Reasons
（%）
Financial expense Increase of term deposits in the report period,
-2,517,029.63 1,388,315.87 -281.30
leading to increase of interest.
Gain/(loss) from investment Mainly due to the associated company's equity
44,970,228.70 88,120,722.44 -48.97
sold out in 2011.
Mainly due to the associated company's equity
Income tax 3,632,415.19 17,136,843.41 -78.80 sold out in 2011, leading to increase of the
expense of income tax in this period.
Mainly due to the associated company's equity
sold out in 2011, leading to significantly
Net profit 68,824,074.81 101,373,885.20 -32.11
increase of the return on investment in that
period.
67
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
§9 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 20, 2012
68
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
CONSOLIDATED BALANCE SHEET
Prepared by Dalian Refrigeration Company Limited 30 June 2012 Unit: RMB Yuan
Items Ending balance Beginning Balance
Consolidation Parent company Consolidation Parent company
Current Assets:
Monetary funds 441,824,449.34 389,182,297.39 690,377,489.30 594,857,597.61
Transaction financial asset
Notes receivable 30,550,561.32 16,438,591.16 61,349,222.44 51,237,973.23
Account receivable 437,921,310.77 236,019,179.35 352,272,297.80 185,606,613.36
Account paid in advance 70,441,258.42 39,218,855.83 45,740,166.61 16,322,595.52
Dividend receivable 14,225,000.00 19,225,000.00 27,875.00 2,550,000.00
Other account receivable 17,675,622.37 7,624,671.81 15,337,832.91 5,484,699.04
Financial assets purchased under
agreements to resell
Inventories 338,590,881.92 157,768,961.41 424,394,356.21 203,119,832.06
Non-current assets due within 1
year
Other current assets
Total current assets 1,351,229,084.14 865,477,556.95 1,589,499,240.27 1,059,179,310.82
Non-current assets:
Available for sale financial assets
Held to maturity investments
Long-term account receivable
Long-term equity investment 954,724,511.34 1,084,301,740.26 897,199,251.97 1,026,776,480.89
Investing property
Fixed asset 340,320,278.14 173,290,716.35 345,637,807.19 174,783,093.86
Project in construction 40,164,684.16 28,581,155.19 34,202,656.33 26,480,045.35
Engineering material
Fixed asset disposal
Bearer biological asset
Oil assets
Intangible assets 166,848,239.96 98,838,288.42 168,752,848.07 100,108,883.04
Development expense
Goodwill
Long-term expense to be
3,050,757.78 2,670,926.75 3,119,996.94 2,731,400.57
apportioned
Deferred tax assets 17,799,659.99 11,770,307.94 15,249,120.50 9,879,538.78
Other non-current assets
Total non-current assets 1,522,908,131.37 1,399,453,134.91 1,464,161,681.00 1,340,759,442.49
Total assets 2,874,137,215.51 2,264,930,691.86 3,053,660,921.27 2,399,938,753.31
69
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
CONSOLIDATED BALANCE SHEET (CONTINUED)
Prepared by Dalian Refrigeration Company Limited 30 June 2012 Unit: RMB Yuan
Items Ending balance Beginning Balance
Consolidation Parent company Consolidation Parent company
Current liabilities:
Short-term borrowings 13,000,000.00 13,000,000.00
Transaction financial liabilities
Notes payable 74,738,983.60 45,600,000.00 140,955,686.44 114,926,347.95
Account payable 491,705,054.91 328,340,264.84 484,167,682.03 319,035,202.48
Account received in advance 258,165,205.62 125,878,255.03 357,134,809.60 176,699,547.11
Employee’s compensation payable 37,044,131.80 7,340,482.24 53,629,466.31 22,616,177.81
Tax payable 15,668,176.90 9,279,930.13 19,008,551.29 14,406,741.42
Dividend payable 4,033,156.00 533,156.00 3,783,156.00 533,156.00
Other account payable 41,355,215.75 34,574,354.45 49,336,938.85 48,687,496.38
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 936,559,475.08 551,838,993.19 1,122,715,391.52 697,489,770.15
Non-current liabilities:
Long-term borrowings
Debentures payable
Long-term payables
Specific purpose account payables
Provisions for contingent liabilities
Deferred tax liabilities
Other non-current liabilities 82,757,663.39 33,741,661.39 84,713,255.75 35,697,252.75
Total non-current liabilities 82,757,663.39 33,741,661.39 84,713,255.75 35,697,252.75
Total liabilities 1,019,317,138.47 585,580,654.58 1,207,428,647.27 733,187,022.90
Owner’s equity
Share capital 350,014,975.00 350,014,975.00 350,014,975.00 350,014,975.00
Capital surplus 586,837,221.82 585,608,294.20 586,837,221.82 585,608,294.20
Less: Treasury Stock
Reserved fund 458,998,713.57 458,998,713.57 445,492,052.28 445,492,052.28
Retained earnings 364,387,162.47 284,728,054.51 366,477,854.72 285,636,408.93
Foreign exchange difference
Total owners' equity attributable to
1,760,238,072.86 1,679,350,037.28 1,748,822,103.82 1,666,751,730.41
holding company
Minority interest 94,582,004.18 97,410,170.18
Total owner’s equity 1,854,820,077.04 1,679,350,037.28 1,846,232,274.00 1,666,751,730.41
Total liabilities and owner’s equity 2,874,137,215.51 2,264,930,691.86 3,053,660,921.27 2,399,938,753.31
70
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
CONSOLIDATED INCOME STATEMENT
Prepared by Dalian Refrigeration Company Limited 2012.01-06 Unit: RMB Yuan
Items 2012.01-06 2011.01-06
Consolidation Parent company Consolidation Parent company
I. Total sales 851,218,300.53 505,055,917.77 947,894,622.28 638,661,382.66
Including: Operating income 851,218,300.53 505,055,917.77 947,894,622.28 638,661,382.66
II. Total operating cost 830,037,679.82 494,695,199.14 922,596,452.46 627,343,017.40
Including: Operating cost 676,485,145.01 410,724,964.56 769,799,892.96 538,378,671.32
Taxes and associate charges 6,805,514.00 3,492,433.19 6,186,373.64 4,157,740.66
Selling and distribution expenses 47,194,900.23 23,645,801.67 45,768,200.68 23,199,346.74
Administrative expenses 88,125,363.34 52,352,128.39 87,783,419.66 50,537,300.73
Financial expense -2,517,029.63 -3,083,205.31 1,388,315.87 681,018.72
Impairment loss 13,943,786.87 7,563,076.64 11,670,249.65 10,388,939.23
Add: gain from change in fair value
Gain/(loss) from investment 44,970,228.70 51,507,448.75 88,120,722.44 95,974,959.66
Including: income form investment
on affiliated enterprise and jointly 44,944,226.71 44,944,226.71 35,342,590.94 35,342,590.94
enterprise
Foreign exchange difference
III. Operating profit 66,150,849.41 61,868,167.38 113,418,892.26 107,293,324.92
Add: non-business income 6,565,830.48 5,242,716.25 5,367,780.73 3,901,563.72
Less: non-business expense 260,189.89 321.27 275,944.38 220,888.98
Including: loss from non-current
202,086.55 321.27 29,234.67 16,852.42
asset disposal
IV. Total profit 72,456,490.00 67,110,562.36 118,510,728.61 110,973,999.66
Less: Income tax 3,632,415.19 2,010,009.24 17,136,843.41 14,374,254.70
V. Net profit 68,824,074.81 65,100,553.12 101,373,885.20 96,599,744.96
Net profit attributable to parent
66,392,427.44 65,100,553.12 95,488,392.56 96,599,744.96
company
Minority shareholders’ gains and
2,431,647.37 5,885,492.64
losses
VI. Earnings per share -- --
(I) basic earnings per share 0.19 0.27
(II) diluted earnings per share 0.19 0.27
Ⅶ. Other comprehensive income 28,103,925.00 28,103,925.00
Ⅷ. Total comprehensive income 68,824,074.81 65,100,553.12 129,477,810.20 124,703,669.96
Total comprehensive income
66,392,427.44 65,100,553.12 123,592,317.56 124,703,669.96
attributable to parent company
Total comprehensive income
2,431,647.37 5,885,492.64
attributable to minority shareholders
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Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
CONSOLIDATED CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Company Limited 2012.01-06 Unit: RMB Yuan
Items 2012.01-06 2011.01-06
Consolidation Parent company Consolidation Parent company
1. Cash flows arising from operating activities:
Cash received from sales of goods or rending of services 610,935,011.88 358,969,357.54 851,665,064.33 544,693,583.03
Refund of tax and fare received
Other cash received relating to operating activities 16,063,125.43 12,118,081.11 15,459,958.35 10,404,109.48
Sub-total of cash inflows 626,998,137.31 371,087,438.65 867,125,022.68 555,097,692.51
Cash paid for goods and services 488,730,718.32 317,344,034.68 534,625,960.59 337,781,384.62
Cash paid to and on behalf of employees 131,990,555.94 80,846,375.01 119,988,099.63 71,462,444.11
Tax and fare paid 79,873,144.61 52,112,455.99 55,853,826.61 35,662,947.71
Other cash paid relating to operating activities 54,039,238.49 21,439,462.69 65,987,160.29 31,021,766.12
Sub-total of cash outflows 754,633,657.36 471,742,328.37 776,455,047.12 475,928,542.56
Net cash flow from operating activities -127,635,520.05 -100,654,889.72 90,669,975.56 79,169,149.95
2. Cash Flows arising from Investment Activities:
Cash received from return of investments 579,183.60 579,183.60 6,313,174.25 6,313,174.25
Cash received from investment income 17,526,793.58 21,586,138.63 108,609,764.60 110,286,126.82
Net cash received from disposal of fixed assets,
47,186.00 169,484.45 63,504.45
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 18,153,163.18 22,165,322.23 117,847,923.30 119,418,305.52
Cash paid for acquiring fixed assets, intangible assets
27,997,185.63 20,573,308.86 14,950,489.68 10,733,774.62
and other long-term assets
Cash paid for acquiring investments 44,810,220.00 44,810,220.00 7,897,000.00 7,897,000.00
Other cash paid relating to investment activities
Sub-total of cash outflows 72,807,405.63 65,383,528.86 22,847,489.68 18,630,774.62
Net cash flow from investing activities -54,654,242.45 -43,218,206.63 95,000,433.62 100,787,530.90
3. Cash Flows arising from Financing Activities:
Cash received from absorbing investment
Cash received from borrowings 4,000,000.00 3,610,000.00
Other proceeds relating to financing activities
Sub-total of cash inflows 4,000,000.00 3,610,000.00
Cash paid for settling debt 3,000,000.00 52,110,000.00 50,000,000.00
Cash paid for distribution of dividends or profit or
57,895,300.95 52,502,246.25 3,162,738.77 1,536,457.49
reimbursing interest
Including: Cash paid for distribution of dividends or
profit to minority shareholders by shareholding 4,772,524.03 1,136,158.14
companies
Other cash payments relating to financing activities 70,927.69 161,150.43
Sub-total of cash outflows 60,966,228.64 52,502,246.25 55,433,889.20 51,536,457.49
Net cash flow from financing activities -56,966,228.64 -52,502,246.25 -51,823,889.20 -51,536,457.49
4. Influence on cash due to fluctuation in exchange rate 2,951.18 42.38 -63,582.21 270.94
5. Increase in cash and cash equivalents -239,253,039.96 -196,375,300.22 133,782,937.77 128,420,494.30
Add : Cash and cash equivalents at year-begin 681,077,489.30 585,557,597.61 491,775,575.71 373,620,785.42
6.Cash and cash equivalents at the end of the year 441,824,449.34 389,182,297.39 625,558,513.48 502,041,279.72
72
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Dalian Refrigeration Company Limited 2012.01-06 Unit: RMB Yuan
2012.01-06
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
350,014,975.00 586,837,221.82 445,492,052.28 366,477,854.72 97,410,170.18 1,846,232,274.00
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
350,014,975.00 586,837,221.82 445,492,052.28 366,477,854.72 97,410,170.18 1,846,232,274.00
this year
III. Increase/ decrease of
amount in this year (“-” 13,506,661.29 -2,090,692.25 -2,828,166.00 8,587,803.04
means decrease)
(I) Net profit 66,392,427.44 2,431,647.37 68,824,074.81
(II) Other comprehensive
income
Subtotal of (I)and (II) 66,392,427.44 2,431,647.37 68,824,074.81
(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 13,506,661.29 -68,483,119.69 -5,259,813.37 -60,236,271.77
1. Withdrawing surplus
13,506,661.29 -13,506,661.29
public reserve
2. Withdrawing general risk
reserve
3. Distribution to all owners
-52,502,246.25 -5,259,813.37 -57,762,059.62
(shareholders)
4. Others -2,474,212.15 -2,474,212.15
(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
350,014,975.00 586,837,221.82 458,998,713.57 364,387,162.47 94,582,004.18 1,854,820,077.04
period
73
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
2011.01-12
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
350,014,975.00 590,783,185.25 421,079,823.34 364,217,259.03 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 (“-” -3,945,963.43 24,412,228.94 2,260,595.69 5,020,765.45 27,747,626.65
means decrease)
(I) Net profit 81,621,060.33 11,839,578.09 93,460,638.42
(II) Other comprehensive
-3,945,963.43 -3,945,963.43
income
Subtotal of (I)and (II) -3,945,963.43 81,621,060.33 11,839,578.09 89,514,674.99
(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 24,412,228.94 -79,360,464.64 -6,818,812.64 -61,767,048.34
1. Withdrawing surplus
24,412,228.94 -24,412,228.94
public reserve
2. Withdrawing general risk
reserve
3. Distribution to all owners
-52,502,246.25 -6,818,812.64 -59,321,058.89
(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
350,014,975.00 586,837,221.82 445,492,052.28 366,477,854.72 97,410,170.18 1,846,232,274.00
period
74
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Dalian Refrigeration Company Limited 2012.01-06 Unit: RMB Yuan
2012.01-06
Items Total of owners’
Lessen: treasury equity
share capital Capital surplus Surplus reserve Retained profits
stock
I. balance at the end of last
350,014,975.00 585,608,294.20 445,492,052.28 285,636,408.93 1,666,751,730.41
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. balance at the beginning of
350,014,975.00 585,608,294.20 445,492,052.28 285,636,408.93 1,666,751,730.41
this year
III. Increase/ decrease of
amount in this year (“-” 13,506,661.29 -908,354.42 12,598,306.87
means decrease)
(I) Net profit 65,100,553.12 65,100,553.12
(II) Other comprehensive
income
Subtotal of (I)and (II) 65,100,553.12 65,100,553.12
(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 13,506,661.29 -66,008,907.54 -52,502,246.25
1. Withdrawing surplus
13,506,661.29 -13,506,661.29
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
350,014,975.00 585,608,294.20 458,998,713.57 284,728,054.51 1,679,350,037.28
period
75
Dalian Refrigeration Co., Ltd. 2012 Semiannual Report
2011.01-12
Items Total of owners’
Lessen: treasury equity
share capital Capital surplus Surplus reserve Retained profits
stock
I. balance at the end of last
350,014,975.00 589,554,257.63 421,079,823.34 295,017,577.69 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 (“-” -3,945,963.43 24,412,228.94 -9,381,168.76 11,085,096.75
means decrease)
(I) Net profit 67,533,306.43 67,533,306.43
(II) Other comprehensive
-3,945,963.43 -3,945,963.43
income
Subtotal of (I)and (II) -3,945,963.43 67,533,306.43 63,587,343
(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 24,412,228.94 -76,914,475.19 -52,502,246.25
1. Withdrawing surplus
24,412,228.94 -24,412,228.94
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
350,014,975.00 585,608,294.20 445,492,052.28 285,636,408.93 1,666,751,730.41
period
76
