Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Dalian Refrigeration Co., Ltd.
2013 Semiannual Report
August, 2013
1
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Section 1 Important Notice, Table of Contents, and Definitions
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.
All the directors have attended this Board meeting of the Company.
The company plans to distribute no cash dividends, no bonus shares and
convert no reserve fund into capital stock.
Chairman of the Board of Directors of the Company Mr. Xiao Yongqin,
Financial Majordomo and the head of Accounting Department Ms. Rong
Yan hereby confirm that the financial report of the semi-annual report is
true and complete.
This report is written respectively in Chinese and in English. In the event
of any discrepancy between the two above-mentioned versions, the
Chinese version shall prevail.
2
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
CONTENTS
Section 1 Important Notice, Table of Contents, and Definitions .............................................2
Section 2 About the Company .................................................................................................5
Section 3 Summary of Main Accounting Data and Financial Indicators ................................7
Section 4 Board of Directors' Report .......................................................................................9
Section 5 Important Issues .....................................................................................................15
Section 6 Change in Share Capital and Shareholders' Information .......................................17
Section 7 Information on the Company’s Directors, Supervisors, Senior Management .......18
Section 8 Financial Report.....................................................................................................19
Section 9 Contents of Reference Documents.........................................................................72
3
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Definitions
Defined item Stands for Meaning
Reporting period Stands for From Jan. 1, 2013 to Jun. 30, 2013
The Company, this Company Stands for Dalian Refrigeration Co., Ltd.
Wuhan New World Refrigeration Industries Co., Ltd., one of the
Wuxin Refrigeration Stands for controlled subsidiaries of this Company, where the Company holds 51%
of its shares.
Dalian Sanyo Compressor Co., Ltd., one of the mutual shareholding
Dalian Sanyo Compressor Stands for companies of the Company, where the Company holds 40% of its
shares.
Dalian Sanyo Cold Chain Co., Ltd., one of the mutual shareholding
Dalian Sanyo Cold Chain Stands for companies of the Company, where the Company holds 40% of its
shares.
Dalian Sanyo Refrigeration Co., Ltd., one of the mutual shareholding
Dalian Sanyo Refrigeration Stands for companies of the Company, where the Company holds 40% of its
shares.
A high-efficiency and energy-saving full-hermetic compressor using
Scroll compressor Stands for
advanced technology
That is, office automation. Through digitalized office, the existing
management organization structure can be optimized to increase the
OA coordinated office capability and decision-making effect on basis of
increasing efficiency.
It refers to such five items as organization, rectification, clearing,
cleaning and quality. As all of the Japanese Roman Pinyin start with
5S “S”, so it is simply called as 5S. Carrying out activities with
organization, rectification, clearing, cleaning and quality as the contents
is called “5S” activities.
4
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Section 2 About the Company
I. Company 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
Short form of legal name 大冷股份
Legal English name Dalian Refrigeration Co., Ltd.
Abbreviation of legal English name DRC
Legal representative Xiao Yongqin
II. Contact persons and information
Secretary of the Board of Directors Authorized representative for securities affairs
Name Song Wenbao Song Wenbao (proxy)
DALENG GUFEN Securities Department, No. DALENG GUFEN Securities Department, No.
Address
888, Xinan Road, Shahekou District, Dalian 888, Xinan Road, Shahekou District, Dalian
Tel. 0411-86538130 0411-86538130
Fax 0411-86654530 0411-86654530
E-mail 000530@bingshan.com 000530@bingshan.com
III. Other situations
1. Contact of company
If the registered address, office address and zip code, website, email box of the company had any change in the
report period
□ Applicable √ Not applicable
The registered address, office address and zip code, website, email box of the company had no change in the report
period. Refer to the Annual Report for 2012 for detail.
2. Information disclosure and place of preparation
If the information disclosure and the place of preparation had any change in the report period
□ Applicable √ Not applicable
The name of newspaper for information disclosure selected by the company, the address of the website designated
by China Securities Regulatory Commission for carrying semi-annual report, the place where the semi-annual
report of the company is prepared had no change in the report period. Refer to the Annual Report for 2012 for
detail.
5
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
3. Registration variation
If registration varied in the report period
√ Applicable □ Not applicable
Registered number
Registration of Business License Registered number for Organization
Registration place
date of the Corporate taxation code
Legal Entity
No. 888, Xinan
DA GUO, DI SHA
Initial registration Jun. 13, 2011 Road, Shahekou 210200000266757 24236130-0
(ZHI) 210204242361300
District, Dalian
Registration at the No. 888, Xinan
DA GUO, DI SHA
end of the Mar. 1, 2013 Road, Shahekou 210200000266757 24236130-0
(ZHI) 210204242361300
reporting period District, Dalian
On Mar. 1, 2013, under examination and ratification of Dalian Industrial &
Notes to registration variation Commercial Administration Bureau, the legal representative of the company was
changed from Zhang He to Xiao Yongqin.
4. Other related information
If other related information varied in the report period
□ Applicable √ Not applicable
6
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Section 3 Summary of Main Accounting Data and Financial
Indicators
I. Main accounting data and financial indicators
Did the Company retroactively adjust or restate the accounting data of previous years due to change in the
accounting policy and correction of accounting mistakes?
□ Yes √ No
Report period (from Same period in the Increase/decrease compared with
Summary of the accounting data
Jan. through Jun.) last year the same period of the last year (%)
Operating revenue 792,124,153.23 851,218,300.53 -6.94%
Net profit attributable to shareholders of
65,122,435.00 66,392,427.44 -1.91%
listed companies
Net profit belonging to the shareholders
of listed companies after the deduction of 62,382,278.37 63,276,376.07 -1.41%
non-recurring profit and loss
Net cash flow from operating activities 3,743,258.07 -127,635,520.05 102.94%
Basic earning per share 0.19 0.19 0.00%
Diluted earnings per share 0.19 0.19 0.00%
Weighted average return on net asset
3.61% 3.81% Decrease 0.20 percentage points
yield
End of this report Increase/decrease compared with
End of last year
period the end of last year (%)
Total assets 2,938,354,029.31 2,937,190,656.69 0.04%
Owner's equity attributable to
1,819,351,823.30 1,808,800,737.71 0.58%
shareholders of listed companies
II. Difference of accounting data between as per Chinese accounting standards and as per
International Accounting Standards
The difference of accounting data between as per Chinese Accounting Standards and as per International
Accounting Standards was 0.
7
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
III. Non-recurring profits and losses and their amounts
Item Amount
Disposal gains and losses of non-current asset 18,357.21
Government subsidies included in current profit or loss 20,300.00
Other non-operating revenue or expense 3,586,025.90
Influence on income tax 915,792.50
Influence on minority shareholders -31,266.02
Influence on net profit 2,740,156.63
8
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Section 4 Board of Directors' Report
I. Summary
After the management changing work was finished in the first half year of 2013, the new leading group
brought up a new operating philosophy as being pragmatic, changing, sustained new operation and the
operating theme for 2013 as changing, upgrading. Being faced with many unfavorable factors such as
insufficient investment power, weak consumption growth, credit fund shortage, low market demand, etc.,
the company launched an attack on its own initiative, seized the opportunities without delay, actively
made a comprehensive change, made effort to open up market externally, badly emphasized basic
management internally, strived to realize the operation plan indicators and lay a solid foundation for
sustained development in future. In the report period, the Company made the sales income of 792.12
million yuan, accounting for 49.20% of 1,610 million yuan of the Company’s annual business indicator
for 2013, down by 6.94% from the same period of last year; and the total amount of profit of 71.6
million yuan, accounting for 53.04% of 135 million yuan of the Company’s annual business indicator
for 2013, down by 1.18% from the same period of last year.
In the report period, the company attended China Refrigeration Exhibition in a unified group image, held
meetings for nationwide distributors, established sales directors for ten major nationwide regions and
adopted such changing moves as reforming the distribution system for salespersons, perfecting the after-
sale maintenance system, etc. to respond to market changes actively and upgrade the marketing work
with effort.
In the report period, the company took the initiative to strengthen the basic management, upgrade the
implementation capacity and improve quality and benefits through such changing moves as adjusting the
organization structure and mid-level cadres, OA basic platform erection, promotion of 5S activities,
putting into practice new work modes, etc.
In the report period, ORC screw expansion power generation device developed by Wuxin Refrigeration,
one of the subsidiaries of the company, made a successful trial run. That device adopts full
microcomputer control, realizes full automation of device power generation through monitoring of
variable frequency working medium pump, liquid level sensor and expander rotation speed, grid
electricity load, and provides a full automatic protection to the unit through the pneumatic fast closing
valve, fast opening valve of the system. That device can recover such heat sources as waste water, waste
gas, etc. below 200℃, broadening the range of residual resources that can be recovered to generate
electricity.
In the report period, Dalian Sanyo Compressor, in which the company participates and which is a
leading scroll compressor producer domestically, made a new progress in market opening up, with the
scale effect continuing to exhibit, the sales income being up by 22% from the same period last year, the
gross profit ratio being up by 1.66 percent from the same period of last year and the net profits also
having a substantial growth as compared to the same period of last year.
In the report period, Dalian Sanyo Cold Chain in which the company participates carried out in-depth
production innovation activities and improved the production efficiency and saved the labor cost by
taking such moves as replacing operators with robots, replacing manual lines with automatic lines, etc.
The three testing laboratories achieved national level energy efficiency testing qualification, reaching
national level requirements in respect of energy efficiency limitation for commercial refrigerating
equipment. Under the influence of insufficient orders from overseas market and Japanese Yen
depreciation, the sales income reduced by 13% from the same period last year with the net profits also
having a substantial decrease as compared to the same period last year.
In the report period, Dalian Sanyo Refrigeration in which the company participates, through integrated
operation with Dalian Sanyo Air-conditioner, realized an optimum configuration of resources for large
9
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
size air-conditioner business, resulting in the sales income having a substantial growth from the same
period last year; under the influence of Japanese Yen depreciation, there was a net loss in exchange
influencing the net profits. The national level high-tech enterprise review work for 2012 was
successfully passed, and extension of the preferential policy on 10% enterprise income tax reduction and
exemption for another three years was gained.
In the report period, in order to further perfect the cold and hot product chains, the company signed an
agreement with Japan Mitsubishi Heavy Industry Co., Ltd. to invest jointly to establish a Sino-Japanese
joint venture engaging in R & D, purchase, manufacture, sales and after-sale service of centrifugal type
refrigerating unit. The company contributed with cash of RMB 36 million yuan, holding 45% shares of
the joint venture. Through intense preparatory work for over 3 months, Mitsubishi-Bingshan
Refrigeration (Dalian) Co., Ltd. was formally established on Jul. 8, 2013 under approval of the
government. On Jul. 25, the new factory held an earth-breaking ceremony in D-D Port of Dalian
Development Zone and it is expected that the formal production will be in the early of next year.
In the report period, the company increased capital in Dalian Bingshan Group Import & Export Co., Ltd.
in which it participates in the form of converting the undistributed profits that it should enjoy into
registered capital. The capital increase this time has been finished. The registered capital of that
company has increased from RMB 5 million yuan to RMB 30 million yuan, and at the same time the
name of that company has been changed to Dalian Bingshan Engineering & Trading Co., Ltd. The
shareholding proportion of the company remains unchanged, which is still 24%.
II. Analysis of main business
In the report period, the Company made the sales income of 792.12 million yuan, accounting for 49.20%
of 1,610 million yuan of the Company’s annual business indicator for 2013, down by 6.94% from the
same period of last year; and the total amount of profit of 71.6 million yuan, accounting for 53.04% of
135 million yuan of the Company’s annual business indicator for 2013, down by 1.18% from the same
period of last year.
10
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Main financial data variations as compared to the same period last year
Monetary unit : RMB Yuan
Increase or
Same period of decrease from the
Report period same period of Reason for variation
last year
last year（%）
Operating revenue 792,124,153.23 851,218,300.53 -6.94%
Operating cost 620,886,543.64 676,485,145.01 -8.22%
Selling and distribution
46,381,343.35 47,194,900.23 -1.72%
expenses
Administrative expenses 86,984,149.72 88,125,363.34 -1.29%
Financial expenses -2,085,116.83 -2,517,029.63 17.16%
Income tax 4,512,062.85 3,632,415.19 24.22%
Research and development
40,025,740.11 39,793,616.23 0.58%
investment
The cash paid for
Net cash flow coming from purchasing commodities
3,743,258.07 -127,635,520.05 102.94%
operating activities decreased in the report
period obviously.
The cash paid for
Net cash flow coming from
-2,697,502.61 -54,654,242.45 95.06% investment decreased in
investment activities
the report period.
Net cash flow coming from
-45,600,783.85 -56,966,228.64 19.95%
fund-raising activities
The net cash flow coming
Net increase in cash and cash from operating activities
-44,600,048.56 -239,253,039.96 81.35%
equivalents increased in the report
period obviously.
The profit constitutions or profit sources of the company had an important change in the report period
□ Applicable √ Not applicable
The profit constitutions or profit sources of the company had no important change in the report period.
Extension of future development and plan into the report period as disclosed in such public documents
of the company as share-offering prospectus, capital-raising prospectus and assets reorganization report,
etc.
□ Applicable √ Not applicable
In such public documents of the company as share-offering prospectus, capital-raising prospectus and
assets reorganization report, etc. disclosed no extension of future development and plan into the report
period
The company reviewed and summarized the progress of the operating plan disclosed in the earlier stage
in the report period.
In the report period, the Company made the sales income of 792.12 million yuan, accounting for 49.20%
of 1,610 million yuan of the Company’s annual business indicator for 2013; and the total amount of
profit of 71.6 million yuan, accounting for 53.04% of 135 million yuan of the Company’s annual
business indicator for 2013.
11
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
III. Main business structure
Monetary unit: RMB yuan
Increase/decre
Increase/decre
ase of Increase/decreas
ase of
operating e of gross profit
Operating Operating Gross profit operating
revenues from from the same
revenue costs (%) costs from the
the same period of last
same period of
period of last year (%)
last year (%)
year (%)
By industry
Refrigeration
Increase 0.90 perc
and air- 781,945,848.39 612,570,078.48 21.66% -6.61% -7.66%
entage points
conditioning
By product
Refrigeration
and air- Increase 0.90 perc
781,945,848.39 612,570,078.48 21.66% -6.61% -7.66%
conditioning entage points
equipment
By region
Increase 0.64 perc
Northeast China 590,919,291.04 471,649,196.95 20.18% -5.79% -6.53%
entage points
Decrease 1.68
East China 10,554,770.03 8,699,608.75 17.57% 29.07% 31.78%
percentage points
Increase 2.12
Central China 180,471,787.32 132,221,272.78 26.73% -10.61% -13.12%
percentage points
IV. Analysis of core competence
Boasting the most complete cooling and heating product chain in the industry, the Company can offer to customers
the service of package projects from design, manufacture, installation to maintenance to well meet the customized
demand of customers.
Having the mature and perfect marketing network and after-sale service network, the Company can offer to
customers in more regions the more rapid and considerate high-quality service.
Taking refrigeration and air-conditioning as its main business, the Company effectively combines the independent
R&D and the joint ventures and cooperation and has formed a unique development pattern appropriate to itself and
the industry.
In the reporting period, the Company's core competence above-mentioned was improved further.
V. Analysis of investments
1. External equity investments
(1) External investments
External investments
Investment in the report period (yuan) Investment in the same period of last year (yuan) Amount of variation
957,009,645.99 962,636,635.50 -0.58%
Invested companies
Equity proportion of listed companies
Name of company Main business
to invested companies (%)
For details of the invested companies, see VII-9, 10 in the Explanatory Notes to Accounting Statements.
12
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
(2) Held financial companies' equity
Proportion
Change of
Amount of of share Book value at Profit and
Name of object Quantity owner’s
primary equity in the end of loss within
held (Shares) held equity within
investment that period period
period
company
Guotai Junan
Secunities Co., 30,098,895.00 30,098,895 0.49% 30,098,895.00 0.00 0.00
Ltd
Total 30,098,895.00 30,098,895 - 30,098,895.00 0.00 0.00
2. Analysis of major subsidiary companies and mutual shareholding companies
Monetary unit: thousand yuan
Registered Total Net Operating Operating Net
Name Type Main product
capital assets assets revenue profit profit
Wuhan New World
Refrigeration Industries subsidiary Screw compressor RMB30,000 467,120 136,030 180,620 7,420 6,930
Co., Ltd.,
Dalian Sanyo mutual Semi-hermetic, and
JPY620,000 1,801,980 895,280 1,181,680 99,560 84,910
Compressor Co., Ltd., shareholding scroll compressor
Commerial
Dalian Sanyo Cold-chain mutual
refrigeration JPY465,000 1,375,930 521,860 921,410 13,450 11,350
Co., Ltd., shareholding
equipment
Keinin-Grand Ocean
mutual Air-conditioner for
Thermal Technology shareholding cars
USD15,117.89 306,370 175,620 264,540 30,750 22,790
(Dalian) Co., Ltd.
VI. Estimation of the business performance for Jan.-Sept., 2013
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
VII. Profit distribution and dividend payment
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 2012
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 June 2013.
13
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
VIII. Record of investigation, communication, interview and other activities in the
reporting period
Main content
talked about
Reception Reception Reception
Reception time Reception object and
place mode object type
information
provided
Telephone
Company
Jan. 8, 2013 communicati Institution Researcher from Galaxy Securities
office
on
Telephone
Company
Jan. 10, 2013 communicati Institution Researcher from Huatai Securities
office
on
Telephone
Company Assets researcher from Taikang Life
Jan. 22, 2013 communicati Institution
office Insurance
on
Researchers from CITIC Securities,
Telephone
Company Galaxy Securities, Huatai Securities,
Feb. 6, 2013 communicati Institution
office Haitong Securities, Guotai Junan
on
Securities, Guoxin Securities
Researchers from CITIC
Company Physical
Feb. 19, 2013 Institution Construction Securities, Fortune
office survey
SGAM Fund, Everbright Securities
Assets researchers from China
Company
Galaxy Securities, Haitong Securities,
fundamentals
Company Physical China International Fund
Feb. 27, 2013 Institution having been
office survey Management, Huaxia Fund, Penghua
publicly
Fund, ABC-CA Fund, ABC Life
disclosed
Insurance, China Life Insurance
Researchers from Haitong Securities,
Changjiang Securities, Guotai Junan
Company Physical
Mar. 11, 2013 Institution Securities, Wanjia Fund, Fullgoal
office survey
Fund, Franklin Templeton Sealand
Fund
Company Physical
Mar. 19, 2013 Institution Researcher from Sealand Securities
office survey
Telephone
Company
Apr. 22, 2013 communicati Institution Researcher from Haitong Securities
office
on
Company Physical
May 2, 2013 Institution Researcher from CITIC Securities
office survey
Company Physical Researchers from BOC International,
Jun. 27, 2013 Institution
office survey Tianfeng Securities, Guotai Fund
Company Physical Researchers from Haitong Securities,
Jun. 28, 2013 Institution
office survey BOC Fund
14
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Section 5 Important Issues
I. Company governing
On Feb. 5, 2013, the company held the first temporary shareholders’ meeting for 2013 and the 1st
meeting of the 6th Board of Directors, the 1st meeting of the 6th Board of Supervisors to fulfill the
management changing work.
The actual situation of company governing has no difference from the Company Law and the
requirements of relevant regulations of China Securities Regulatory Commission.
II. Major lawsuit and arbitration issues
□ Applicable √ Not applicable
The Company had no major lawsuit and arbitration issues in this reporting period.
III. Media's queries
□ Applicable √ Not applicable
There were no media's queries to the Company in the report period.
IV. Important associated transactions
1. Associated transactions related to normal business
In the report period, the total amount of normal associated transactions between the Company and
associated parties was 168,860 thousand yuan, accounting for 35.93% of the budgeted amount for the
year 2013. This included 82,320 thousand yuan, accounting for 32.93% of the budgeted amount for the
year 2013, for purchasing supporting products for package projects from associated parties, and 86,540
thousand yuan, accounting for 39.34% of the budgeted amount for the year 2013, from selling
supporting parts and components to associated parties.
2. Other important associated transactions
In the report period, the company together with Dalian Bingshan Group Co., Ltd. as an associated party
jointly increased the capital of Dalian Bingshan Group Import & Export Co., Ltd. in which they
participate. The temporary announcement about this associated transaction (announcement No.: 2013-
014) was published in China Securities B178, Hongkong Commercial Daily B11 and Cninfo website on
Apr. 20, 2013.
Relevant inquiry on website disclosing temporary report on important connected transaction
Date of temporary Name of website disclosing
Temporary announcement name
announcement disclosure temporary announcement
Announcement on connected transaction to increase
the capital of Dalian Bingshan Group Import & Apr. 20, 2013 Cninfo website
Export Co., Ltd.
V. Important contracts and its performance
1. Trusteeship, contracting, lease, guarantee matters
□ Applicable √ Not applicable
15
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
VI. Implementation of commitments
1. Commitments of the Company or its shareholders holding 5% or higher of the shares in the
reporting period or carried to the reporting period
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.
VII. Engagement, disengagement of CPA office
The semi-annual report has not been audited.
VIII. Punishment and rectification
□ Applicable √ Not applicable
16
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Section 6 Change in Share Capital and Shareholders' Information
I. Change in share capital
No change.
II. Number of shareholders and their shareholding
Total number of shareholders in the reporting period 40,690
Shareholding of top ten shareholders
Number of Number of
Name Nature Proportion Total number shares with sale pledged shares
restriction or shares frozen
Dalian Bingshan Group Co., Ltd. Domestic non-state-owned legal person 21.96% 76,855,683 19,213,921
Sanyo Electric Co., Ltd. Overseas legal person 10.00% 35,001,500 0
Putian income securities investment fund Others 2.04% 7,125,361 0
BOCI SECURITIES LIMITED Overseas legal person 0.98% 3,427,177 0
Xinhua Life Insurance Co., Ltd.－traditional－
Others 0.65% 2,288,000 0
common insurance products-018L-CT001 Shen
CIFM industrial rotation stock type securities
Others 0.56% 1,959,050 0
investment fund
Jiang Youchang Domestic natural person 0.49% 1,721,075 0
Merchants high-quality growth stock type securities
Others 0.49% 1,700,000 0
investment fund
Guoyuan Securities Brokerage (Hong Kong)
Overseas legal person 0.47% 1,628,755 0
Limited
Dalian Industrial Development Investment Company Domestic non-state-owned legal person 0.46% 1,622,250 0
Shareholding of top ten shareholders without sale restriction
Name Number of shares without sale restriction Type of shares
Dalian Bingshan Group Co., Ltd. 57,641,762 RMB denominated ordinary shares
Sanyo Electric Co., Ltd. 35,001,500 Domestically listed foreign shares
Putian income securities investment fund 7,125,361 RMB denominated ordinary shares
BOCI SECURITIES LIMITED 3,427,177 Domestically listed foreign shares
Xinhua Life Insurance Co., Ltd.－traditional－common insurance
2,288,000 RMB denominated ordinary shares
products-018L-CT001 Shen
CIFM industrial rotation stock type securities investment fund 1,959,050 RMB denominated ordinary shares
Jiang Youchang 1,721,075 RMB denominated ordinary shares
Merchants high-quality growth stock type securities investment fund 1,700,000 RMB denominated ordinary shares
Guoyuan Securities Brokerage (Hong Kong) Limited 1,628,755 Domestically listed foreign shares
Dalian Industrial Development Investment Company 1,622,250 RMB denominated ordinary shares
Dalian Bingshan Group Co., Ltd. had the association relationship with Sanyo Electric
Notes to the associated relationship and uniform actions of the above
Co., Ltd. among the above shareholders. Sanyo Electric Co., Ltd. holds 30% of Dalian
shareholders Bingshan Group Co., Ltd.'s equity.
If the company shareholders had any agreed repurchase transaction in the report period
□ Yes √ No
III. Variation in controlling shareholders or actual controllers
Variation in controlling shareholders in the report period
□ Applicable √ Not applicable
Variation in actual controllers in the report period
□ Applicable √ Not applicable
17
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Section 7 Information on the Company’s Directors, Supervisors,
and Senior Management officers
I. Variation in shareholding by directors, supervisors and senior management officers
□ Applicable √ Not applicable
The shareholding by the directors, supervisors and senior management officers of the company had no
change in the report period. Refer to the Annual Report for 2012 for detail.
II. Resignation, dismissal and election, engagement of company directors, supervisors,
senior management officers
Name Position assumed Type Date Reason
Leave office for expiry No longer reappointed in company
Zhang He Chairman, GM Feb. 5, 2013
of office term management changing
Leave office for expiry No longer reappointed in company
Mu Chuanjiang Vice Chairman Feb. 5, 2013
of office term management changing
Leave office for expiry No longer reappointed in company
Yang Bin Director, Executive Deputy GM Feb. 5, 2013
of office term management changing
Director, Financial majordomo, Leave office for expiry No longer reappointed in company
Xu Junrao Feb. 5, 2013
Secretary of Board of Directors of office term management changing
Leave office for expiry No longer reappointed in company
Hidetoshi Arima Director Feb. 5, 2013
of office term management changing
Leave office for expiry No longer reappointed in company
Wang Weijie Director Feb. 5, 2013
of office term management changing
Leave office for expiry No longer reappointed in company
Men Yuesheng Supervisor Feb. 5, 2013
of office term management changing
Leave office for expiry No longer reappointed in company
Wang Dekun Deputy GM Feb. 5, 2013
of office term management changing
Leave office for expiry No longer reappointed in company
Zhang Hongzhi Deputy GM Feb. 5, 2013
of office term management changing
Leave office for expiry No longer reappointed in company
Hu Xitang Deputy GM Feb. 5, 2013
of office term management changing
Elected in company management
Xiao Yongqin Chairman Elected Feb. 5, 2013
changing
Elected in company management
Wang Jian Vice Chairman Elected Feb. 5, 2013
changing
Elected and engaged in company
Liu Kai Director, GM Elected Feb. 5, 2013
management changing
Elected and engaged in company
Wang Zhiqiang Director, Deputy GM Elected Feb. 5, 2013
management changing
Elected and engaged in company
Rong Yan Director, Financial majordomo Elected Feb. 5, 2013
management changing
Elected in company management
Nagasawa Hideharu Director Elected Feb. 5, 2013
changing
Reelected and reappointed in company
Wang Huiquan Independent director Elected Feb. 5, 2013
management changing
Reelected and reappointed in company
Xing Tiancai Independent director Elected Feb. 5, 2013
management changing
Reelected and reappointed in company
Liu Caiping Independent director Elected Feb. 5, 2013
management changing
Engaged in company management
Yang Bin Deputy GM Engaged Feb. 5, 2013
changing
Engaged in company management
Song Wenbao Secretary of Board of Directors Engaged Feb. 5, 2013
changing
Reelected and reappointed in company
Yu Fuchun Chairman of Board of Supervisors Elected Feb. 5, 2013
management changing
Reelected and reappointed in company
Mao Chunhua Supervisor Elected Feb. 5, 2013
management changing
Elected in company management
Ma Yun Supervisor Elected Feb. 5, 2013
changing
18
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Section 8 Financial report
1. The Company's semiannual financial report has not been audited.
2. Accounting statements
CONSOLIDATED BALANCE SHEET
Prepared by Dalian Refrigeration Company Limited 30 June 2013 Unit: RMB Yuan
Items Ending balance Beginning Balance
Consolidation Parent company Consolidation Parent company
Current Assets:
Monetary funds 481,218,686.90 398,052,941.34 531,896,655.08 443,299,858.36
Transaction financial asset
Notes receivable 68,824,431.79 54,231,213.19 41,966,544.97 27,500,254.79
Account receivable 367,927,713.02 178,524,739.26 352,261,726.74 173,525,044.14
Account paid in advance 49,737,317.72 24,954,030.60 31,249,976.50 12,919,740.55
Interest receivable 1,317,009.71 1,317,009.71 277,444.44 277,444.44
Dividend receivable 37,200,000.00 39,750,000.00 39,025.00
Other account receivable 20,233,209.87 7,306,853.12 18,963,969.53 6,092,721.42
Financial assets purchased under
agreements to resell
Inventories 358,803,358.50 174,418,402.96 398,895,095.83 201,422,670.07
Non-current assets due within 1
year
Other current assets 5,316,042.58 5,316,042.58 6,026,385.86 5,956,559.82
Total current assets 1,390,577,770.09 883,871,232.76 1,381,576,823.95 870,994,293.59
Non-current assets:
Available for sale financial assets
Held to maturity investments
Long-term account receivable
Long-term equity investment 957,009,645.99 1,066,586,874.91 962,636,635.50 1,072,213,864.42
Investing property 0.00 0.00
Fixed asset 393,906,467.64 216,418,544.67 404,973,883.42 224,624,146.17
Project in construction 9,387,482.08 8,132,288.81 1,304,951.56 554,009.14
Engineering material
Fixed asset disposal
Bearer biological asset
Oil assets
Intangible assets 164,087,356.70 97,677,321.34 165,794,041.15 98,611,277.13
Development expense
Goodwill
Long-term expense to be
3,253,559.51 2,891,259.16 2,981,518.62 2,610,452.93
apportioned
Deferred tax assets 20,131,747.30 12,959,825.12 17,922,802.49 11,125,452.86
Other non-current assets
Total non-current assets 1,547,776,259.22 1,404,666,114.01 1,555,613,832.74 1,409,739,202.65
Total assets 2,938,354,029.31 2,288,537,346.77 2,937,190,656.69 2,280,733,496.24
19
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
CONSOLIDATED BALANCE SHEET (CONTINUED)
Prepared by Dalian Refrigeration Company Limited 30 June 2013 Unit: RMB Yuan
Items Ending balance Beginning Balance
Consolidation Parent company Consolidation Parent company
Current liabilities:
Short-term borrowings 39,500,000.00 29,500,000.00
Transaction financial liabilities
Notes payable 60,180,876.29 33,470,876.29 79,127,124.20 58,628,509.20
Account payable 537,613,376.96 353,040,134.21 436,720,339.20 267,244,798.64
Account received in advance 217,461,668.82 103,221,478.85 288,041,113.23 142,944,087.68
Employee’s compensation payable 35,402,187.11 7,465,209.09 64,384,750.97 29,385,027.38
Tax payable 12,984,937.86 4,980,323.58 620,179.66 -4,577,147.78
Interest payable
Dividend payable 2,983,156.00 533,156.00 533,156.00 533,156.00
Other account payable 41,535,359.69 32,266,499.45 53,435,964.07 41,680,362.14
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 948,511,113.23 535,270,227.97 954,061,728.33 536,423,894.26
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 71,434,479.91 23,532,479.91 73,275,358.79 25,373,358.79
Total non-current liabilities 71,434,479.91 23,532,479.91 73,275,358.79 25,373,358.79
Total liabilities 1,019,945,593.14 558,802,707.88 1,027,337,087.12 561,797,253.05
Owner’s equity
Share capital 350,014,975.00 350,014,975.00 350,014,975.00 350,014,975.00
Capital surplus 584,864,283.21 583,635,355.59 584,852,283.21 583,623,355.59
Less: Treasury Stock
Reserved fund 491,000,222.86 491,000,222.86 469,665,883.33 469,665,883.33
Retained earnings 393,472,342.23 305,084,085.44 404,267,596.17 315,632,029.27
Foreign exchange difference
Total owners' equity attributable to
1,819,351,823.30 1,729,734,638.89 1,808,800,737.71 1,718,936,243.19
holding company
Minority interest 99,056,612.87 101,052,831.86
Total owner’s equity 1,918,408,436.17 1,729,734,638.89 1,909,853,569.57 1,718,936,243.19
Total liabilities and owner’s equity 2,938,354,029.31 2,288,537,346.77 2,937,190,656.69 2,280,733,496.24
20
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
CONSOLIDATED INCOME STATEMENT
Prepared by Dalian Refrigeration Company Limited 2013.01-06 Unit: RMB Yuan
Items 2013.01-06 2012.01-06
Consolidation Parent company Consolidation Parent company
I. Total sales 792,124,153.23 485,112,570.51 851,218,300.53 505,055,917.77
Including: Operating income 792,124,153.23 485,112,570.51 851,218,300.53 505,055,917.77
II. Total operating cost 769,624,223.97 472,867,106.22 830,037,679.82 494,695,199.14
Including: Operating cost 620,886,543.64 389,637,758.36 676,485,145.01 410,724,964.56
Taxes and associate charges 5,765,226.20 2,578,772.79 6,805,514.00 3,492,433.19
Selling and distribution expenses 46,381,343.35 25,644,693.15 47,194,900.23 23,645,801.67
Administrative expenses 86,984,149.72 51,140,478.61 88,125,363.34 52,352,128.39
Financial expense -2,085,116.83 -3,472,085.71 -2,517,029.63 -3,083,205.31
Impairment loss 11,692,077.89 7,337,489.02 13,943,786.87 7,563,076.64
Add: gain from change in fair value
Gain/(loss) from investment 44,070,614.51 48,883,819.62 44,970,228.70 51,507,448.75
Including: income form investment
on affiliated enterprise and jointly 43,570,614.51 43,570,614.51 44,944,226.71 44,944,226.71
enterprise
Foreign exchange difference
III. Operating profit 66,570,543.77 61,129,283.91 66,150,849.41 61,868,167.38
Add: non-business income 5,290,608.96 4,515,135.81 6,565,830.48 5,242,716.25
Less: non-business expense 264,070.46 260,189.89 321.27
Including: loss from non-current
222,418.65 202,086.55 321.27
asset disposal
IV. Total profit 71,597,082.27 65,644,419.72 72,456,490.00 67,110,562.36
Less: Income tax 4,512,062.85 2,355,777.77 3,632,415.19 2,010,009.24
V. Net profit 67,085,019.42 63,288,641.95 68,824,074.81 65,100,553.12
Net profit attributable to parent
65,122,435.00 63,288,641.95 66,392,427.44 65,100,553.12
company
Minority shareholders’ gains and
1,962,584.42 2,431,647.37
losses
VI. Earnings per share -- --
(I) basic earnings per share 0.19 0.19
(II) diluted earnings per share 0.19 0.19
Ⅶ. Other comprehensive income 9,000.00 9,000.00
Ⅷ. Total comprehensive income 67,094,019.42 63,297,641.95 68,824,074.81 65,100,553.12
Total comprehensive income
65,131,435.00 63,297,641.95 66,392,427.44 65,100,553.12
attributable to parent company
Total comprehensive income
1,962,584.42 2,431,647.37
attributable to minority shareholders
21
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
CONSOLIDATED CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Company Limited 2013.01-06 Unit: RMB Yuan
Items 2013.01-06 2012.01-06
Consolidation Parent company Consolidation Parent company
1. Cash flows arising from operating activities:
Cash received from sales of goods or rending of services 594,558,071.63 370,468,226.76 610,935,011.88 358,969,357.54
Refund of tax and fare received
Other cash received relating to operating activities 17,634,803.78 12,015,353.11 16,063,125.43 12,118,081.11
Sub-total of cash inflows 612,192,875.41 382,483,579.87 626,998,137.31 371,087,438.65
Cash paid for goods and services 345,476,050.50 224,399,653.37 488,730,718.32 317,344,034.68
Cash paid to and on behalf of employees 150,381,610.32 93,910,336.05 131,990,555.94 80,846,375.01
Tax and fare paid 53,234,848.20 27,441,204.38 79,873,144.61 52,112,455.99
Other cash paid relating to operating activities 59,357,108.32 30,305,961.30 54,039,238.49 21,439,462.69
Sub-total of cash outflows 608,449,617.34 376,057,155.10 754,633,657.36 471,742,328.37
Net cash flow from operating activities 3,743,258.07 6,426,424.77 -127,635,520.05 -100,654,889.72
2. Cash Flows arising from Investment Activities:
Cash received from return of investments 579,183.60 579,183.60
Cash received from investment income 12,536,629.02 14,760,809.13 17,526,793.58 21,586,138.63
Net cash received from disposal of fixed assets,
266,830.00 47,186.00
intangible assets and other long-term assets
Proceeds from sale of subsidiaries and other operating
units
Other cash received relating to investment activities
Sub-total of cash inflows 12,803,459.02 14,760,809.13 18,153,163.18 22,165,322.23
Cash paid for acquiring fixed assets, intangible assets
15,500,961.63 10,335,038.00 27,997,185.63 20,573,308.86
and other long-term assets
Cash paid for acquiring investments 44,810,220.00 44,810,220.00
Other cash paid relating to investment activities
Sub-total of cash outflows 15,500,961.63 10,335,038.00 72,807,405.63 65,383,528.86
Net cash flow from investing activities -2,697,502.61 4,425,771.13 -54,654,242.45 -43,218,206.63
3. Cash Flows arising from Financing Activities:
Cash received from absorbing investment
Cash received from borrowings 24,800,000.00 4,000,000.00
Other proceeds relating to financing activities
Sub-total of cash inflows 24,800,000.00 4,000,000.00
Cash paid for settling debt 17,000,000.00 3,000,000.00
Cash paid for distribution of dividends or profit or
53,400,783.85 50,524,334.61 57,895,300.95 52,502,246.25
reimbursing interest
Including: Cash paid for distribution of dividends or
profit to minority shareholders by shareholding 1,508,803.41 4,772,524.03
companies
Other cash payments relating to financing activities 70,927.69
Sub-total of cash outflows 70,400,783.85 50,524,334.61 60,966,228.64 52,502,246.25
Net cash flow from financing activities -45,600,783.85 -50,524,334.61 -56,966,228.64 -52,502,246.25
4. Influence on cash due to fluctuation in exchange rate -45,020.17 -188.69 2,951.18 42.38
5. Increase in cash and cash equivalents -44,600,048.56 -39,672,327.40 -239,253,039.96 -196,375,300.22
Add : Cash and cash equivalents at year-begin 525,818,735.46 437,725,268.74 681,077,489.30 585,557,597.61
6.Cash and cash equivalents at the end of the year 481,218,686.90 398,052,941.34 441,824,449.34 389,182,297.39
22
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Dalian Refrigeration Company Limited 2013.01-06 Unit: RMB Yuan
2013.01-06
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
350,014,975.00 584,852,283.21 469,665,883.33 404,267,596.17 101,052,831.86 1,909,853,569.57
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
350,014,975.00 584,852,283.21 469,665,883.33 404,267,596.17 101,052,831.86 1,909,853,569.57
this year
III. Increase/ decrease of
amount in this year (“-” 12,000.00 21,334,339.53 -10,795,253.94 -1,996,218.99 8,554,866.60
means decrease)
(I) Net profit 65,122,435.00 1,962,584.42 67,085,019.42
(II) Other comprehensive
12,000.00 12,000.00
income
Subtotal of (I)and (II) 12,000.00 65,122,435.00 1,962,584.42 67,097,019.42
(III) Input an reduced capital
of owners
1. Input capital of owners
2.Amount of Shares included
in the owners’ equity
3. Others
(IV) Profit distribution 21,334,339.53 -75,917,688.94 -3,958,803.41 -58,542,152.82
1. Withdrawing surplus
21,334,339.53 -21,334,339.53
public reserve
2. Withdrawing general risk
reserve
3. Distribution to all owners
-52,502,246.25 -3,958,803.41 -56,461,049.66
(shareholders)
4. Others -2,081,103.16 -2,081,103.16
(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
350,014,975.00 584,864,283.21 491,000,222.86 393,472,342.23 99,056,612.87 1,918,408,436.17
period
23
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
2012.01-12
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
350,014,975.00 586,837,221.82 445,492,052.28 366,477,854.72 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 (“-” -1,984,938.61 24,173,831.05 37,789,741.45 3,642,661.68 63,621,295.57
means decrease)
(I) Net profit 117,142,066.15 8,902,475.05 126,044,541.20
(II) Other comprehensive
-1,984,938.61 -1,984,938.61
income
Subtotal of (I)and (II) -1,984,938.61 117,142,066.15 8,902,475.05 124,059,602.59
(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 24,173,831.05 -79,352,324.70 -5,259,813.37 -60,438,307.02
1. Withdrawing surplus
24,173,831.05 -24,173,831.05
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 -2,676,247.40 -2,676,247.40
(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
350,014,975.00 584,852,283.21 469,665,883.33 404,267,596.17 101,052,831.86 1,909,853,569.57
period
24
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Dalian Refrigeration Company Limited 2013.01-06 Unit: RMB Yuan
2013.01-06
Items Total of owners’
Lessen: treasury equity
share capital Capital surplus Surplus reserve Retained profits
stock
I. balance at the end of last
350,014,975.00 583,623,355.59 469,665,883.33 315,632,029.27 1,718,936,243.19
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. balance at the beginning of
350,014,975.00 583,623,355.59 469,665,883.33 315,632,029.27 1,718,936,243.19
this year
III. Increase/ decrease of
amount in this year (“-” 12,000.00 21,334,339.53 -10,547,943.83 10,798,395.70
means decrease)
(I) Net profit 63,288,641.95 63,288,641.95
(II) Other comprehensive
12,000.00 12,000.00
income
Subtotal of (I)and (II) 12,000.00 63,288,641.95 63,300,641.95
(III) Input an reduced capital
of owners
1. Input capital of owners
2.Amount of Shares included
in the owners’ equity
3. Others
(IV) Profit distribution 21,334,339.53 -73,836,585.78 -52,502,246.25
1. Withdrawing surplus
21,334,339.53 -21,334,339.53
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
350,014,975.00 583,635,355.59 491,000,222.86 305,084,085.44 1,729,734,638.89
period
25
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
2012.01-12
Items Total of owners’
Lessen: treasury equity
share capital Capital surplus Surplus reserve Retained profits
stock
I. balance at the end of last
350,014,975.00 585,608,294.20 445,492,052.28 285,636,408.93 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 (“-” -1,984,938.61 24,173,831.05 29,995,620.34 52,184,512.78
means decrease)
(I) Net profit 106,671,697.64 106,671,697.64
(II) Other comprehensive
-1,984,938.61 -1,984,938.61
income
Subtotal of (I)and (II) -1,984,938.61 106,671,697.64 104,686,759.03
(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 24,173,831.05 -76,676,077.30 -52,502,246.25
1. Withdrawing surplus
24,173,831.05 -24,173,831.05
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
350,014,975.00 583,623,355.59 469,665,883.33 315,632,029.27 1,718,936,243.19
period
26
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
NOTES TO THE FINANCIAL 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 measurement attribute
A. Accounting measurement attribute
The Company adopts the accrual basis for accounting treatments. All assets are stated at their historical costs on acquisition.
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 are stated at their fair value. Stocks or fixed assets and other assets on acquisition, which its payment delayed
longer than normal payment condition, should be measured at the present value of the payment. Other assets with impairment
are measured at the recoverable amount. The amount of overage on assets is determined at replacement cost.
B. The reporting items which the accounting measurement attributes changed during the current period
No.
6. 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,
27
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
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 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”.
7. 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.
8.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).
9. 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:
28
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
The foreign currency monetary items shall be translated at the spot exchange rate on balance sheet date, of which happen during
the normal business period shall be recorded into gains and losses at the current period; of which happen during organization
period shall be recorded into long-term deferred expense. The exchange gains or losses caused by the borrowing belonging to
acquiring fixed assets shall be treated by the capitalization of borrowing costs.
Foreign currency non-monetary items shall be translated at spot rate on the date of transaction, not changing the amount of
functional currency.
The Company translates the financial statements of its foreign operation in accordance with the following provisions: a) the
asset and liability items in the balance sheets shall be translated at a spot exchange rate ruling at the balance sheet date. Among
the owner's equity items, except the ones as "retained earnings", others shall be translated at the spot exchange rate ruling at the
time when they occurred;. b) The income and expense items in the income statements shall be translated with approximate
exchange rate of the sight rate on the transaction occurring date. The foreign exchange difference arisen from the translation of
foreign currency financial statements shall be presented separately under the owner's equity in the balance sheet.
10. 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 liabilities on the basis of
the post-amortization costs.
(3) Main recognition method for the fair value of the financial assets or financial liabilities
29
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
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.
11. 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
12. 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.
13. The method for measuring long-term equity investment
(1). Confirmation of initial investment cost of long-term equity investment
For the consolidation of enterprises that under the same control, take the book value proportion of the owner’s equity of
consolidated party on consolidation date as initial investment cost of long-term equity investment. The balance of initial
investment cost of long-term equity investment and paid cash, transferred non-cash asset, and book value of debt taken, should
adjust capital public reserve; and adjust retained earning while the capital public reserve isn’t enough to offset. For the
consolidation of enterprises that under different control, take assets paid out in order to acquire the control right of purchased
party on purchase date, occurred or undertaken debt and fair value of issued equity securities as initial investment cost of long-
term equity investment. The long-term equity investment acquired in other manners except from the enterprise consolidation,
should confirm its initial investment cost according to following regulations:
30
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
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.
14. 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.
15. 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.
16. 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
31
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
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).
17. 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.
(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.
18. 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.
32
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
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.
19. 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.
20. Measurement method of estimated debts
The obligation pertinent to Contingencies shall be recognized as estimated debts when the following conditions are satisfied
simultaneously:
(1) That obligation is a current obligation of the enterprise;
(2) It is likely to cause any economic benefit to flow out of the enterprise as a result of performance of the obligation;
(3) The amount of the obligation can be measured in a reliable way.
The Company shall check the book value of the estimated debts on the balance sheet date. If there is any exact evidence
indicating that the book value cannot really reflect the current best estimate, the Company will adjust the book value in
accordance with the current best estimate.
21. 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
33
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
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.
22. 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.
23. 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.
24. 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.
25. 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.
26. Correction of the accounting errors from previous term
There is no correction of the accounting error from previous term in this report period.
Ⅲ. Taxation
1. Value added tax (“VAT”)
The Group is subject to VAT, which is a tax charged on top of the selling price at a general rate of 17% or 13% or 6%
depending on different kinds of products. An input credit is available whereby VAT previously paid on purchases of raw
materials and semi-finished products can be used to offset the VAT on sales to determine the net VAT payable.
2. The business tax rate is 5% or 3% of revenue.
3. Urban maintenance and construction tax is 7% of turnover tax payable.
4. Education surtax is 3% of turnover tax payable.
5. Income tax
(1)Income tax shall be measured at 25% in total.
(2)Income tax of subsidiaries and associates
Taxation on profit of subsidiaries and associates is calculated at the applicable rates in accordance with the relevant tax
regulations. Certain subsidiaries and associates enjoy preferential income tax policies with approvals from tax authorities. The
applicable income tax rates of major subsidiaries and associates for the report period are as follows:
34
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
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 15%
Shanghai Bingshan Serial Refrigeration Equipment
Subsidiary 25%
Sales Co., Ltd.
Wuhan New World Refrigeration Industrial Co.,
Subsidiary 15%
Ltd. (“WNWRI”)
Wuhan New World Refrigeration Air Conditioner
Subsidiary 25%
Engineering Co. Ltd.
Ⅳ. Business combination and consolidated financial statements
1. The principal activities of its subsidiaries are shown as below.
As of 30 June 2013 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.
Shareh Voting
Categor Registered Registered Consoli
No. Name Business nature Business scope Investment A olding right Minority interest B C
ies address capital dated
（%） （%）
Installation and
Dalian Bingshan Group
testing of
Refrigeration Installation Ltd. Dalian Installation RMB20,040,000 RMB20,040,000 100 100 Yes
1 refrigeration
Co. Ltd .
equipment
Sale of
Dalian Bingshan Group
Ltd. Dalian Trading RMB18,000,000 refrigeration RMB16,200,000 90 90 Yes 4,199,339.00
2 Sales Co. Ltd .
equipment
Manufacture and
Dalian Bingshan Air-
sale of accessories
Conditioning Equipment Ltd. Dalian Manufacturing JPY700,000,000 JPY490,000,000 70 70 Yes 21,622,825.05
3 of refrigeration
Co. Ltd.
equipment
Process and sale of
Dalian Bingshan Metal
Ltd. Dalian Manufacturing USD2,350,000 metal punching USD1,509,875 64.25 64.25 Yes 8,781,630.70
4 Processing Co. Ltd.
parts
Dalian Bingshan Guardian Research, design
Automation Co., Ltd. and develop
Ltd. Dalian Manufacturing GBP210,000 GBP126,000 60 60 Yes 3,663,938.35 58,335.03
5 refrigerator
automation parts
Dalian Bingshan Ryosetsu Manufacture and
Quick Freezing Equipment Ltd. Dalian Manufacturing USD1,000,000 sale of deep- USD700,000 70 70 Yes 2,594,869.82 373,291.18
6
Co., Ltd. freezing equipment
Design,
manufacture, sale,
installation and test
Wuhan New World
of screw type
Refrigeration Industrial Co. Ltd. Wuhan Manufacturing RMB30,000,000 RMB17,980,400 51 51 Yes 58,194,009.95 3,064,355.00
7 refrigeration
Ltd.
compressor and
refrigeration
equipment
Design,
Wuhan New World
installation, test
Refrigeration Air
Ltd. Wuhan Installation RMB8,000,000 and repair of RMB400,000 5 100 Yes
8 Conditioner Engineering
refrigeration
Co. Ltd.
equipment
Design,
Ningbo Bingshan
installation, test
Refrigeration Air
Ltd. Ningbo Installation RMB3,000,000 and repair of RMB1,530,000 51 Yes 1,944,300.32
9 Conditioner Engineering
refrigeration
Co. Ltd.
equipment
2. The changes of consolidated scope
No changes of consolidated scope happened during the current period.
35
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Ⅴ. Notes to the consolidated financial statements
1 Monetary fund
Item 30-06-2013 31-12-2012
Cash on hand 305,344.67 195,378.55
Cash in bank 480,913,342.23 523,052,983.91
Others 8,648,292.62
Total 481,218,686.90 531,896,655.08
Particular about foreign monetary funds included in the cash in bank:
30-06-2013 31-12-2012
Foreign
Original RMB Original RMB
currency Exchange rate Exchange rate
currency equivalent currency equivalent
USD 37,199.00 6.1787 229,841.46 4,064.02 6.2855 25,544.40
JPY 286,387.00 0.062607 17,929.84 368,460.00 0.073049 26,915.63
EUR 5.60 8.0536 45.10 5.60 8.3176 46.58
GP 1,234.63 9.4213 11,631.82 71,217.64 10.1611 723,649.57
Total 259,448.22 776,156.18
2 Notes receivable
Item 30-06-2013 31-12-2012
Bank acceptance 63,879,810.19 30,613,298.36
Trade acceptance 4,944,621.60 11,353,246.61
Total 68,824,431.79 41,966,544.97
(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
1 Shanxi BDO Chemical Co., Ltd. 2013.02.01 2013.08.01 2,300,000.00 Bank acceptance
2 Suzhou Hongxing Chemical Co., Ltd. 2013.01.28 2013.07.24 1,522,218.00 Bank acceptance
3 Tonghua Iron & Steel Co., Ltd. 2013.03.05 2013.09.05 1,400,000.00 Bank acceptance
4 Sichuan Chengyue Food Co., Ltd. 2013.03.27 2013.09.27 1,200,000.00 Bank acceptance
Guangzhou Chengxi Economic
5 2013.03.13 2013.09.13 1,200,000.00 Bank acceptance
Development Co., Ltd.
(3)The amount of notes receivable due from related companies are RMB 944,118.60, 1.37% of total notes receivable. Please
refer to the Ⅵ 6 of the notes.
3 Accounts receivable
(1) Classified by account nature
30-06-2013 31-12-2012
Balance Provision for doubtful debt Balance Provision for doubtful debt
Category
Proportion Proporti Proportion Proportion
Amount Amount Amount Amount
(%) on (%) (%) (%)
Receivables that are
individually
significant
Receivables not
individually
468,391,336.40 100 100,463,623.38 21.39 446,228,134.01 100 93,966,407.27 21.06
significant but with
high risk in groups
Other insignificant
items
Total 468,391,336.40 100 100,463,623.38 21.39 446,228,134.01 100 93,966,407.27 21.06
36
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
The aging of accounts receivable and related provisions for bad debts
30-06-2013 31-12-2012
Account ages Provision for bad Provision for bad
Amount Proportion (%) Amount Proportion (%)
debts debts
Within1 year 230,260,972.12 49.16 11,513,048.61 223,325,287.48 50.04 11,166,264.37
1 to 2 years 108,348,412.49 23.13 10,834,841.25 100,612,947.55 22.55 10,061,294.76
2 to 3 years 52,507,611.30 11.21 15,752,283.39 37,441,392.94 8.39 11,232,417.89
3 to 4 years 19,925,391.46 4.26 9,962,695.74 38,041,244.40 8.53 19,020,622.21
4 to 5 years 24,740,973.22 5.28 19,792,778.58 21,607,268.00 4.84 17,285,814.40
Over 5 years 32,607,975.81 6.96 32,607,975.81 25,199,993.64 5.65 25,199,993.64
Total 468,391,336.40 100 100,463,623.38 446,228,134.01 100 93,966,407.27
(2) The company had a sum of receivable account written off before this report period, but was recovered in this period:
Accumulated
Content of Reason for
Basis for determining the original bad debt amount of bad debt Amount
receivable write-back
provision provision drawn recovered
account or recovery
before recovery
Paid by
Payment for
opposite Long outstanding payment 16,250.00 16,250.00
goods
party
Recovery description: That sum of outstanding payment was the final sales payment owed by Changzhou Pangu Chemical Co.,
Ltd. Due to long outstanding period, it was written off in 2012 under the approval of the Board of Directors. In Jun. 2013, the
customer agreed to pay the final payment due to the product quality problem having been solved. At last, the above payment
was paid.
(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 (55) Sale of goods 3,993,235.46 ① No
①Description of writing off: The Company's receivables written-off in this reporting period were mainly those treated by the
company and subsidiary company— Wuhan New World Refrigeration Industries Co., Ltd for long-overdue receivables mainly
because 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 Proportion
Company Amount Age
the Company (%)
Less than 1 year; 1
COFCO Meat Food (Suqian) Co., Ltd. Non-affiliated 12,449,913.80 2.66
to 2 years
Dalian Xinghaiwan Development &
Non-affiliated 11,242,693.00 4 to 5 years 2.40
Construction Management Center
FAW Jiefang Automotive Co., Ltd. Non-affiliated 8,649,183.69 Less than 1 year 1.85
Beijing Orient Display Technology Co., Ltd. Non-affiliated 6,824,902.30 1 to 2 years 1.46
Yichang Sanxia Logistic Park Co., Ltd. Non-affiliated 6,018,375.00 Less than 1 year 1.28
Total 45,185,067.79 9.65
(7) The amount of accounts receivable due from related companies are RMB 15,751,161.67, 3.36% 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
30-06-2013 31-12-2012
Account ages
Amount Proportion (%) Amount Proportion (%)
Within1 year 41,939,854.06 84.32 28,244,256.51 90.38
1 to 2 years 7,490,704.57 15.06 2,736,226.73 8.76
2 to 3 years 179,665.01 0.36 241,520.26 0.77
3 to 4 years 127,094.08 0.26 27,973.00 0.09
Total 49,737,317.72 100 31,249,976.50 100
(2) The first five arrearage entities listed in the balance of accounts paid in advance
37
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
The relationship
Company Amount Age Reasons
with the Company
Hefei General Environmental Control Prepayment for goods
Non-affiliated 6,150,000.00 Less than 1 year
Technology Co., Ltd.
Zaozhuang Bingyuan Refrigerating Prepayment for goods
Non-affiliated 3,467,729.76 Less than 1 year
Equipment Installation Co., Ltd.
Less than 1 year ; 1 Prepayment for goods
Wuxi Xinan Casting Machinery Co., Ltd. Non-affiliated 2,632,000.00
to 2 years
Dalian Yida Construction Engineering Co., Prepayment for goods
Non-affiliated 2,455,106.40 Less than 1 year
Ltd. Development Zone Branch
Dalian Hengzhong Refrigerating Equipment Prepayment for goods
Non-affiliated 1,882,372.57 Less than 1 year
Engineering Co., Ltd.
Total 16,587,208.73
(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 130,559.55, 0.26% of total accounts paid in
advance. Please refer to the Ⅵ 6 of the notes.
5 Dividends receivable
Current year Current year
Any
Items 31-12-2012 disposal 30-06-2013 Reasons
addition impairment
Dividends receivable, within 1 year
Included:
39,025.00 39,025.00
Wuhan Steel and Electricity Co., Ltd.
Not due to
Dalian Sanyo Refrigeration Co., Ltd. 4,800,000.00 4,800,000.00 No
payment date
Not due to
Dalian Sanyo Cold-chain Co., Ltd. 8,000,000.00 8,000,000.00 No
payment date
Not due to
Dalian Sanyo Compressor Co., Ltd. 24,400,000.00 24,400,000.00 No
payment date
Total 39,025.00 37,200,000.00 39,025.00 37,200,000.00
6 Other accounts receivable
(1) Classified by account nature
30-06-2013 31-12-2012
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 27,464,765.59 100 7,231,555.72 26.33 24,977,648.93 100 6,013,679.40 24.08
with high risk in groups
Other insignificant items
Total 27,464,765.59 100 7,231,555.72 26.33 24,977,648.93 100 6,013,679.40 24.08
38
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
The aging of other accounts receivable and related provisions for bad debts
30-06-2013 31-12-2012
Account age Provision for bad Provision for bad
Amount Proportion (%) Amount Proportion (%)
debts debts
Within1year 14,169,711.88 51.59 708,485.59 12,246,892.71 49.03 612,344.64
1 to 2 years 3,660,163.12 13.33 36,6016.3 4,353,037.24 17.43 435,303.72
2 to 3 years 3,392,851.81 12.35 1,017,855.54 2,954,024.32 11.83 886,207.29
3 to 4 years 1,308,720.03 4.77 654,360.02 2,667,843.77 10.68 1,333,921.89
4 to 5 years 2,242,402.40 8.16 1,793,921.92 49,745.16 0.20 39,796.13
Over 5 years 2,690,916.35 9.80 2,690,916.35 2,706,105.73 10.83 2,706,105.73
Total 27,464,765.59 100 7,231,555.72 24,977,648.93 100 6,013,679.40
(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.
(4) There is no amount of other accounts receivable written-off during the report period.
(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
Xining Nongshang Investment Construction Development
Non-affiliated 1,432,000.00 2-3 years 5.22
Management Co., Ltd.
Tianjin Construction Team Exchange & Service Center Non-affiliated 1,000,000.00 4-5 years 3.64
Nanjing Qingjiang Cold Chain Logistics Co,. Ltd. Non-affiliated 900,000.00 Less than 1 year 3.28
CATIC International Economic & Trade Development Co.,
Non-affiliated 550,000.00 Less than 1 year 2.00
Ltd.
Nanjing Gangfeng Industrial Co., Ltd. Non-affiliated 393,121.24 3-4 years 1.43
Total 4,275,121.24 15.57
(7) There is no amount of other accounts receivable due from related companies during the report period.
(8) There is no other accounts receivable being ended reorganization or being negotiated during the report period.
7 Inventories
(1) Cost
30-06-2013 31-12-2012
Items
Provision for Provision for
Book balance impairment of Book value Book balance impairment of Book value
inventories inventories
Raw materials 63,024,721.38 9,392,188.03 53,632,533.35 62,256,263.09 9,392,188.03 52,864,075.06
Materials on Consignment
12,705,930.20 12,705,930.20 8,109,762.06 8,109,762.06
for further processing
Low-value consumptions 158,168.22 158,168.22 142,475.24 142,475.24
Work-in-progress 67,102,129.42 67,102,129.42 93,976,830.71 93,976,830.71
Self-manufactured semi-
48,418,175.19 48,418,175.19 29,285,449.92 29,285,449.92
finished products
Finished goods 146,262,319.51 2,167,851.55 144,094,467.96 156,633,159.08 2,167,851.55 154,465,307.53
Constructing projects 32,691,954.16 32,691,954.16 60,051,195.31 60,051,195.31
Total 370,363,398.08 11,560,039.58 358,803,358.50 410,455,135.41 11,560,039.58 398,895,095.83
(2) Provision for impairment of inventories
Current year Current year disposal
Item 31-12-2012 30-06-2013
addition Reversal Written-off
Finished goods 2,167,851.55 2,167,851.55
Raw materials 9,392,188.03 9,392,188.03
Total 11,560,039.58 11,560,039.58
39
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
(3) Details of provision for impairment of inventories
Proportion of reversal of provision
The bases of provision for
Item Reasons for reversal for impairment of inventories to
impairment of inventories
closing balance
The book balance is higher than
Finished goods
recoverable amount.
The book balance is higher than
Raw materials
recoverable amount.
8 Other current assets
Item 30-06-2013 31-12-2012
Prepaid income tax 4,286,714.85 6,026,385.86
Insurance premiums to be amortized 1,029,327.73
Total 5,316,042.58 6,026,385.86
9、Investment to Associates and Joint ventures
40
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Registe Legal Shareh Voting 30-06-2013
No Business Registered 30-06-2013 30-06-2013 Total Income of Net profit of
Name Categories red represent olding right Total net
. nature capital Total assets Total liabilities 2013.01-06 2013.01-06
address （%） （%）
person assets
ⅠAssociates
Dalian Bingshan –
Sino-
P&A Recreation
1 Development foreign joint Dalian Yang Bin Installation USD250,000 50% 50% 13,731,903.32 8,007,310.69 5,724,592.63 5,078,246.20 -733,556.13
Engineering Co.,
Ltd. venture
Sino-
Dalian Jiale
Asahi
2 Vending Machine foreign joint Dalian Trading JPY500,000,000 50% 50% 29,996,944.30 1,330,577.11 28,666,367.19 7,078,358.21 -669,835.65
Operation Co., Ltd. Hideehiko
venture
ⅡJoint venture
Dalian Bingshan
Xiao
1 Engineering & Ltd Dalian Trading RMB30,000,000 24% 24% 92,369,455.83 37,120,004.71 55,249,451.12 78,891,929.61 3,433,879.03
Trading Co., Ltd. Yongqin
Dalian Grand
Ocean Thermo Sino-
King Transport Manufacturi
2 foreign joint Dalian Zhang He ng USD850,000 40% 40% 11,763,996.98 6,377,666.98 5,386,330.00
Refrigeration
Engineering Co.,
venture
Ltd
Sino-
Dalian Sanyo
Watanabe Manufacturi JPY3,450,000,0
3 Refrigeration Co., foreign joint Dalian ng 40% 40% 674,840,020.83 307,687,797.13 367,152,223.70 421,220,767.96 437,238.19
Ltd. Yoshio 00
venture
Sino-
Dalian Honjo Honjo Manufacturi
4 foreign joint Dalian ng JPY260,000,000 30% 30% 34,840,637.02 5,776,682.81 29,063,954.21 13,867,656.63 1,727,781.46
Chemical Co., Ltd.
Yukinovi
venture
Sino-
Dalian Sanyo Cold- Watanabe Manufacturi JPY4,650,000,0
1,375,930,585.00 854,067,548.00 521,863,037.00 921,409,077.11 11,349,946.63
5 foreign joint Dalian ng 40% 40%
chain Co., Ltd
Yoshio 00
venture
Keinin-Grand Sino-
Ocean Thermal Takumi Manufacturi
6 foreign joint Dalian ng USD15,117,890 20% 20% 306,374,592.89 130,754,351.94 175,620,240.95 264,543,084.88 22,794,044.98
Technology
Ishii
(Dalian) Co., Ltd.
venture
Sino-
Dalian Sanyo
Watanabe Manufacturi JPY6,200,000,0 1,181,681,942.8
7 Compressor Co., foreign joint Dalian ng 40% 40% 1,801,980,306.59 906,699,790.46 895,280,516.13 84,913,138.34
2
Ltd. Yoshio 00
venture
Sino-
Dalian Sanyo
Manufacturi
Meica Electronics 132,471,756.91 41,467,752.32 91,004,004.59 85,399,178.58 -408,061.44
8 foreign joint Dalian Zhang He ng JPY400,000,000 30% 30%
Co., Ltd.
venture
Beijing Huashang
Bingshan Sino-
Refrigeration and
9,807,937.70 7,781,245.12 2,026,692.58 19,140,778.41 22,654.97
9 foreign joint Beijing Yang Bin Trading RMB1,000,000 49% 49%
Air-conditioning
Machinery Co.,
venture
Ltd.
Sino-
Dalian Fuji
Asahi Manufacturi JPY1,800,000,0
Bingshan Vending 222,563,749.69 73,901,516.54 148,662,233.15 103,860,194.30 5,698,941.94
10 foreign joint Dalian ng 49% 49%
Machine Co., Ltd. Hideehiko 00
venture
Dalian Sanyo Sino-
High-Efficient Manufacturi
109,896,103.05 22,466,327.01 87,429,776.04 64,529,150.52 394,304.42
11 foreign joint Dalian Zhang He ng RMB80,000,000 25% 25%
Refrigeration
System Co., Ltd.
venture
41
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
10、Long-term equity investments
Shareh Provision for
Calculation Voting right Provision for Cash dividend of the
No. Name Initial cost Beginning balance Changes Ending balance olding impairment of the
method （%） impairment current period
（%）
current period
Dalian Bingshan – P&A
Equity
1 Recreation Development 1,034,675.00 3,229,074.38 -330,100.26 2,898,974.12 50 50
method
Engineering Co., Ltd.
Dalian Jiale Vending
Equity
2 Machine Operation Co., 18,750,000.00 14,668,101.42 -334,917.83 14,333,183.59 50 50
method
Ltd.
Dalian Bingshan Equity
Engineering & Trading 7,200,000.00 12,435,737.30 824,130.97 13,259,868.27 24 24
3
Co., Ltd.
method
Dalian Grand Ocean
Thermo King Transport Equity
4 2,871,708.00 2,154,532.01 0.00 2,154,532.01 40 40
Refrigeration Engineering method
Co., Ltd
Dalian Sanyo Equity
5 85,416,929.20 151,488,491.18 -4,651,339.02 146,837,152.16 40 40 4,800,000.00
Refrigeration Co., Ltd. method
Dalian Honjo Chemical Equity
6 3,908,911.50 9,398,455.84 -710,369.65 8,688,086.19 30 30 1,197,604.02
Co., Ltd. method
Dalian Sanyo Cold-chain Equity
7 134,658,753.75 216,645,866.64 -3,823,219.64 212,822,647.00 40 40 8,000,000.00
Co., Ltd method
Keinin-Grand Ocean
Equity
8 Thermal Technology 24,402,234.58 41,365,239.20 -6,241,191.00 35,124,048.20 20 20 10,800,000.00
method
(Dalian) Co., Ltd.
Dalian Sanyo Compressor Equity
9 176,953,841.88 348,546,951.11 6,848,034.91 355,394,986.02 40 40 24,400,000.00
Co., Ltd method
Dalian Sanyo Meica Equity
10 9,649,590.00 27,308,958.46 -110,176.59 27,198,781.87 30 30
Electronics Co., Ltd. method
Dalian Sanyo Home Equity
11 19,666,212.00 11,694,400.00 0.00 11,694,400.00 10.91 10.91 11,694,400.00
Appliance Co., Ltd. method
Beijing Huashang
Bingshan Refrigeration Equity
12 490,000.00 905,958.67 11,100.94 917,059.61 49 49
and Air-conditioning method
Machinery Co., Ltd.
Dalian Fuji Bingshan
Equity
13 Vending Machine Co., 66,416,364.00 70,052,012.69 2,792,481.55 72,844,494.24 49 49
method
Ltd.
Daliian Sanyo High-
Equity
14 Efficient Refrigeration 20,000,000.00 21,758,867.90 98,576.11 21,857,444.01 25 25
method
System Co., Ltd.
Zibo Electric Traction Cost
15 849,000.00 849,000.00 849,000.00 1.52 1.52 849,000.00
Machine Group Co., Ltd. method
42
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Shareh Provision for
Calculation Voting right Provision for Cash dividend of the
No. Name Initial cost Beginning balance Changes Ending balance olding impairment of the
method （%） impairment current period
（%）
current period
Liaoning Mec Group Co., Cost
16 1,020,000.00 1,020,000.00 1,020,000.00 3.57 3.57 500,000.00
Ltd. method
Guotai Junan Securities Cost
17 30,098,895.00 30,098,895.00 30,098,895.00 0.49 0.49 1,582,164.89
Co., Ltd. method
Guotai Junan Investment Cost
18 3,057,316.00 3,057,316.00 3,057,316.00 0.22 0.22 2,688,605.91
Management Co., Ltd. method
Thermo King Container
Cost
19 Temperature Control 11,207,806.00 11,207,806.00 11,207,806.00 17.8 17.8
method
(Suzhou) Co., Ltd.
Liaoning Enterprises Cost
20 105,000.00 105,000.00 105,000.00 4.2 4.2 105,000.00
United Industry Company method
Dalian Bingshan Group
Cost
21 Materials Trading Co., 250,000.00 250,000.00 250,000.00 5 5
method
Ltd.
Wuhan Steel and Cost
22 1,315,142.50 1,315,142.50 1,315,142.50 0.056 0.056
Electricity Co., Ltd. method
Total 619,322,379.41 979,555,806.30 -5,626,989.51 973,928,816.79 16,919,170.80 49,697,604.02
On Apr. 18, 2013, the company held the 3rd meeting of the 6th Board of Director, agreeing to increase the capital of Dalian
Bingshan Import & Export Co., Ltd. with undistributed profits with the registered capital increasing from RMB 5 million yuan
to RMB 30 million yuan. After increasing capital, the investment proportion of the company remained unchanged. At the same
time, the name was changed to Dalian Bingshan Engineering & Trading Co., Ltd.
43
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
11 Fixed assets
(1) Fixed assets details
Current year Current year
31-12-2012 30-06-2013
Item
addition disposal
1. Original value 929,871,205.65 6,975,165.27 2,383,549.15 934,462,821.77
Including: Buildings 320,730,626.52 583,404.50 321,314,031.02
Machinery 565,190,187.64 3,984,475.00 882,800.00 568,291,862.64
Vehicles 26,651,528.44 2,041,251.00 1,238,122.31 27,454,657.13
Other equipments 17,298,863.05 366,034.77 262,626.84 17,402,270.98
2. Accumulated depreciation 517,972,335.98 17,664,156.21 2,005,124.31 533,631,367.88
Including: Buildings 108,798,387.26 3,924,491.48 112,722,878.74
Machinery 380,337,233.39 12,290,112.11 788,962.50 391,838,383.00
Vehicles 15,471,089.70 827,861.04 980,348.90 15,318,601.84
Other Equipments 13,365,625.63 621,691.58 235,812.91 13,751,504.30
3.Net book value 411,898,869.67 400,831,453.89
Including: Buildings 211,932,239.26 208,591,152.28
Machinery 184,852,954.25 176,453,479.64
Vehicles 11,180,438.74 12,136,055.29
Other Equipments 3,933,237.42 3,650,766.68
4.Provision for impairment 6,924,986.25 6,924,986.25
Including: Buildings
Machinery 6,924,986.25 6,924,986.25
Vehicles
Other Equipments
5.Fixed assets net 404,973,883.42 393,906,467.64
Including: Buildings 211,932,239.26 208,591,152.28
Machinery 177,927,968.00 169,528,493.39
Vehicles 11,180,438.74 12,136,055.29
Other Equipments 3,933,237.42 3,650,766.68
(2) All the accumulated depreciation increased during the current period was depreciation of the current period.
(3) The original value of fixed assets RMB 3,292,619.37 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 37,500,000 from bank and mortgaged with its building
and land use rights. Dalian Bingshan Metal Processing Co. Ltd. borrowed RMB 2,000,000 from bank and mortgaged with its
building and land use rights.
44
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
(7) Fixed assets without owner’s certificates
Items Reason Expected time
The casting workshop was moved to a new factory building and office. Handling 2013
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 Sources of Percentage of
Budget 31-12-2012 30-06-2013 completion
projects addition decrease funds
Buildings 7,113,634.78 7,113,634.78
Internally
Machinery 8,000,000.00 1,304,951.56 4,261,515.11 3,292,619.37 2,273,847.30 generated 28%
fund
Total 1,304,951.56 11,375,149.89 3,292,619.37 9,387,482.08
(1) No interests capitalized during the current period.
(2) The amount of construction in progress RMB 3,292,619.37 was transferred to fixed assets.
13 Intangible assets
(1) Intangible assets details
Current year Current year
Item 31-12-2012 30-06-2013
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 6,473,020.63 392,597.98 6,865,618.61
Total 193,612,932.42 392,597.98 194,005,530.40
2.Amortization
Land use rights 24,893,168.33 1,866,245.66 26,759,413.99
Non-patented technology 515,224.41 515,224.41
Others 2,410,498.53 233,036.77 2,643,535.30
Total 27,818,891.27 2,099,282.43 29,918,173.70
3. .Net book value
Land use rights 161,731,519.05 -1,866,245.66 159,865,273.39
Non-patented technology
Others 4,062,522.10 159,561.21 4,222,083.31
Total 165,794,041.15 -1,706684.45 164,087,356.70
4.Provision for impairment
Land use rights
Non-patented technology
Others
Total
5. .Net value
Land use rights 161,731,519.05 -1,866,245.66 159,865,273.39
Non-patented technology
Others 4,062,522.10 159,561.21 4,222,083.31
Total 165,794,041.15 -1,706,684.45 164,087,356.70
(2) The increase of intangible assets in this period was software purchased.
(3) RMB2,099,282.43 yuan of intangible assets was amortized in this period.
(4) 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.
45
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
(5) Please refer to the Ⅴ 11 of the notes for land use rights mortgaged.
14 Long-term prepayments
Item Current year Current year
31-12-2012 30-06-2013
addition disposal
1.Original cost
Employee dormitory use right
4,154,348.90 4,154,348.90
Decoration expenses 351,030.90 351,030.90
Total 4,154,348.90 351,030.90 4,505,379.80
2. Amortization
Employee dormitory use right 1,172,830.28 69,239.16 1,242,069.44
Decoration expenses 9,750.85 9,750.85
Total 1,172,830.28 78,990.01 1,251,820.29
3. .Net book value
Employee dormitory use right 2,981,518.62 2,912,279.46
Decoration expenses 341,280.05
Total 2,981,518.62 3,253,559.51
Employee dormitory use right is amortized during 30 years. RMB 69,239.16 yuan was amortized in this period.The decoration
expenses are to be amortized for three years. RMB 9,750.85 yuan was amortized in this period.
15 Deferred tax assets/Deferred tax liabilities
Item 30-06-2013 31-12-2012
Deferred tax assets
Provision for bad debts 15,510,490.85 13,301,546.04
Provision for obsolete inventory 2,890,009.89 2,890,009.89
Impairment provision of fixed assets 1,731,246.56 1,731,246.56
Total 20,131,747.30 17,922,802.49
Deferred tax liabilities
Fair value changes of financial assets
available for sale
Total
(2)Temporary differences
Items 30-06-2013 31-12-2012
Provision for bad debts 75,770,996.91 60,370,008.09
Provision for obsolete inventory 11,560,039.58 11,560,039.58
Impairment provision of fixed assets 6,924,986.25 6,924,986.25
Total 94,256,022.74 78,855,033.92
46
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
16、Provision for impairment
Current year
Current year
Items 31-12-2012 disposal 30-06-2013
addition
Reversal Written off
1.Bad debts provision 99,980,086.67 11,708,327.89 3,993,235.46 107,695,179.10
2.Provision for obsolete inventories 11,560,039.58 11,560,039.58
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
16,919,170.80 16,919,170.80
investments
6.Provision for the impairment of investing property
7.Provision for the impairment of fixed assets 6,924,986.25 6,924,986.25
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
135,384,283.30 11,708,327.89 3,993,235.46 143,099,375.73
17 Short-term loans
Terms of borrowing 30-06-2013 31-12-2012
Credit loan
Mortgage loan 39,500,000.00 29,500,000.00
Total 39,500,000.00 29,500,000.00
(1) Wuhan New World Refrigeration Industrial Co. Ltd. borrowed short-term loan RMB 37,500,000 from bank and mortgaged
with its building and land use rights. Dalian Bingshan Metal Processing Co. Ltd. borrowed RMB 2,000,000 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 30-06-2013 31-12-2012
Bank acceptance notes 60,180,876.29 75,452,028.38
Trade acceptance notes 3,675,095.82
Total 60,180,876.29 79,127,124.20
(1) The amount of notes payable due within the next report period is RMB 60,180,876.29.
(2) The amount of notes payable due to related companies is RMB 1,160,000.00, 1.93% of total notes payable. Please refer to
the Ⅵ 6 of the notes.
19 Accounts payable
30-06-2013 31-12-2012
Ages
Amount Proportion (%) Amount Proportion (%)
Within1 year 480,513,612.25 89.38 397,641,695.13 91.05
1 to 2 years 31,329,974.04 5.83 20,899,378.69 4.79
2 to 3 years 11,916,916.05 2.21 11,693,523.33 2.68
3 to 4 years 7,677,548.58 1.43 1,415,896.19 0.32
47
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
4 to 5 years 1,232,577.73 0.23 690,783.07 0.16
Over 5 years 4,942,748.31 0.92 4,379,062.79 1.00
Total 537,613,376.96 100 436,720,339.20 100
(1) No amount due to the shareholders holding over 5% (including 5%) of the equity of the Company existed in the balance of
accounts payable at the end of current period.
(2) There was no big amount among the accounts payable aged more than 1 year.
(3) The amount of accounts payable due to related companies is RMB 36,999,212.66, 6.88% of total accounts payable. Please
refer to the Ⅵ 6 of the notes.
20 Accounts received in advance
30-06-2013 31-12-2012
Ages
Amount Proportion(%) Amount Proportion(%)
Within1 year 156,736,659.73 72.08 207,173,680.69 71.93
1 to 2 years 34,009,524.16 15.64 48,059,518.74 16.68
2 to 3 years 19,661,657.96 9.04 8,520,448.19 2.96
3 to 4 years 4,209,130.94 1.93 23,137,733.83 8.03
4 to 5 years 1,694,964.25 0.78 1,038,356.88 0.36
Over 5 years 1,149,731.78 0.53 111,374.90 0.04
Total 217,461,668.82 100 288,041,113.23 100
(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 1,866,449.34, 0.86% 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 31-12-2012 30-06-2013
addition reduction
1.Wages and salaries, bonuses,
36,136,166.83 76,806,533.21 99,686,962.91 13,255,737.13
allowances and subsidies
2.Staff welfare 22,485,421.91 8,279,544.16 10,952,241.67 19,812,724.40
3.Social insurance 2,026,248.32 23,546,050.03 25,572,298.35
Including：①Medical insurance 83,383.81 5,452,747.64 5,536,131.45
②Retirement pension 208,241.44 13,795,002.28 14,003,243.72
③Unemployment insurance 138,073.65 1,207,190.84 1,345,264.49
④injury insurance premium 13,533.71 705,203.12 718,736.83
⑤Pregnancy insurance 8,328.46 475,188.54 483,517.00
⑥Housing subsidies 1,574,687.25 1,574,687.25
⑦Heating subsidies 1,910,717.61 1,910,717.61
⑧Total insurance
4. Housing fund 1,968,300.54 11,458,811.80 11,788,175.50 1,638,936.84
5.Labor union fee and employee
1,768,613.37 1,308,107.26 2,381,931.89 694,788.74
education fee
6.Non-currency welfare
7. Redemption for terminations of labor
contract
8.Other
Total 64,384,750.97 121,399,046.46 150,381,610.32 35,402,187.11
There was no amount delay paid at the end of the report period.
48
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
22 Taxes payable
Item 30-06-2013 31-12-2012
Value-added tax 3,967,233.80 -5,138,920.13
Business tax 1,366,661.98 1,335,280.85
City maintenance and construction tax 494,214.79 198,984.65
Enterprise income tax 2,197,102.34 3,269,786.14
Individual income tax 3,196,778.23 382,023.46
Stamp duty 36,367.56 33,096.69
Extra-charges for education 197,858.98 71,645.88
Extra-charges for local education 123,992.82 39,247.17
Water project fund/River route maintenance fee 596,211.98 427,516.11
Safeguard fund for disables 384.00 420.00
Embankment tax 1,098.84
Real estate tax 373,581.64
Land tax 434,549.74
Total 12,984,937.86 620,179.66
23 Dividend payable
Name of investors 30-06-2013 31-12-2012
Legal person shares 2,983,156.00 533,156.00
Total 2,983,156.00 533,156.00
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
30-06-2013 31-12-2012
Ages
Amount Proportion(%) Amount Proportion(%)
Within 1 year 18,236,919.56 43.91 28,634,478.69 53.59
1 to 2 years 2,108,469.79 5.08 5,340,619.53 9.99
2 to 3 years 2,348,499.70 5.66 3,322,905.85 6.22
3 to 4 years 2,850,746.64 6.86 2,563,202.17 4.80
4 to 5 years 2,448,310.17 5.89 1,845,733.04 3.45
Over 5 years 13,542,413.83 32.60 11,729,024.79 21.95
Total 41,535,359.69 100 53,435,964.07 100
(1) There were RMB 10,541,125.25 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 10,671,484.86, 25.69% of total other accounts
payable. Please refer to the Ⅵ 6 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 30-06-2013 31-12-2012
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 2013 as the schedule for transferring it into the profit statement.
49
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
26 Other non-current liabilities —Deferred income
Item 30-06-2013 31-12-2012
Subsidy fund for big screw refrigeration research project 3,108,039.31 6,688,918.19
Subsidy fund for highly effective heat pump and related system 4,874,495.00 4,874,495.00
Contribution to subsidiary company relocation 47,902,000.00 47,902,000.00
Big capacity of sea water pre-freeze project of Project 863 15,549,945.60 13,809,945.60
Total 71,434,479.91 73,275,358.79
The balance of above items didn’t meet the conditions being converted to income at the end of the report period.
27 Share capitals
Issuance of new Shares converted
Item 31-12-2012 Others 30-06-2013
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
28 Capital surpluses
Current year Current year
Item 31-12-2012 30-06-2013
addition reduction
Capital premium 513,645,432.79 513,645,432.79
Other capital surplus 71,206,850.42 12,000.00 71,218,850.42
Total 584,852,283.21 12,000.00 584,864,283.21
Other capital reserve fund increased in this report period was a car received by the company on free basis, which was
transferred by the Trade Union Commission of Dalian Bingshan Group Co., Ltd. and entered into account according to the fair
value when being settled by Dalian Second-hand Motor Vehicle Trading Market Co., Ltd.
29 Surplus reserves
Current year Current year
Item 31-12-2012 30-06-2013
addition reduction
Surplus reserves 469,665,883.33 21,334,339.53 491,000,222.86
Total 469,665,883.33 21,334,339.53 491,000,222.86
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 2012 according to the resolution of the Shareholders’ General Meeting of year 2012.
50
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
30 Retained earnings
Items Amount Extraction or allocation proportion
Retained earnings at the end of prior year 404,267,596.17
Add: Changes in accounting policies
At beginning of the year after retrospective adjustment 404,267,596.17
Add: Net profit 65,122,435.00
Less: Appropriation of statutory surplus reserves
20% of net profit of the Company of
Appropriation of other reserved capital 21,334,339.53
year 2012
Cash dividends 52,502,246.25 RMB 0.15 per share
Appropriation of employee’s welfare and bonus fund in
2,081,103.16
foreign invested company
Retained earnings at the end of the current year 393,472,342.23
31 Revenue and cost of sales
(1)Business income and cost
Items 2013.01-06 2012.01-06
Operating income 792,124,153.23 851,218,300.53
Key business income 781,945,848.39 837,302,305.15
Other business income 10,178,304.84 13,915,995.38
Operating cost 620,886,543.64 676,485,145.01
Key business cost 612,570,078.48 663,416,851.11
Other business cost 8,316,465.16 13,068,293.90
(2) Key business（type）：
2013.01-06 2012.01-06
Name of type
Revenue Cost Revenue Cost
Manufacturing 781,945,848.39 612,570,078.48 837,302,305.15 663,416,851.11
(3) Key business（product）：
2013.01-06 2012.01-06
Name of product
Revenue Cost Revenue Cost
Refrigeration
781,945,848.39 612,570,078.48 837,302,305.15 663,416,851.11
equipments
(4) Key business（region）：
2013.01-06 2012.01-06
Name of region
Revenue Cost Revenue Cost
North-east of China 590,919,291.04 471,649,196.95 627,232,098.55 504,624,152.61
East of China 10,554,770.03 8,699,608.75 8,175,753.92 6,601,965.43
Centre of China 180,471,787.32 132,221,272.78 201,894,452.68 152,190,733.07
Total 781,945,848.39 612,570,078.48 837,302,305.15 663,416,851.11
51
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
(5) Top five customers
Name Revenue Percentage of total business
income (%)
Dalian Bingshan Engineering & Trading Co., Ltd. 43,533,748.55 5.50
China PLA No. 63820 Troop 099 Project Command Office 23,931,623.93 3.02
Huanghai Ship-building Co., Ltd. Shandong Province 18,506,564.10 2.34
Beijing Huashang-Bingshan Refrigerating & Air-conditioning
12,913,205.37 1.63
Complete Equipment Co., Ltd.
Sichuan Tianlun Tanxiangluo Food Co., Ltd. 12,393,162.39 1.56
Total 111,278,304.34 14.05
32 Business taxes and surcharges
Item 2013.01-06 2012.01-06 Basis of taxes calculated
Business tax 693,802.89 1,065,033.92 3% or 5% of Revenue
City maintenance and
3,029,455.20 3,205,048.05 7% of Business tax and Value-added tax
construction tax
Additional education Fees 1,167,781.94 1,468,466.10 3% of Business tax and Value-added tax
Local educational fee 763,858.52 955,822.78 2% of Business tax and Value-added tax
Embankment expenses 110,327.65 111,143.15
Total 5,765,226.20 6,805,514.00
33 Selling and distribution expenses
Items 2013.01-06 2012.01-06
Handle official business expenses 2,117,556.59 2,400,317.89
Salaries and subsidies 20,829,431.85 21,683,526.31
Depreciation expenses 266,366.89 273,208.23
Transportations expenses 5,416,659.97 6,586,964.11
Entertainment expenses 4,121,601.35 4,302,663.49
Traveling expenses 8,393,449.44 6,443,032.41
Maintenance and repair expenses 3,773,656.52 3,620,302.38
Advertise and bids expenses 888,762.65 1,135,852.92
Others 573,858.09 749,032.49
Total 46,381,343.35 47,194,900.23
34 Administrative expenses
Items 2013.01-06 2012.01-06
Handle official business expenses 5,495,996.27 6,106,308.77
Salaries and subsidies 50,123,180.61 52,155,029.15
Depreciation expenses 3,353,905.34 3,587,274.79
Transportations expenses 684,763.80 834,648.81
Entertainment expenses 2,060,029.13 1,964,632.15
Traveling expenses 2,154,686.39 1,779,844.42
Maintenance and repair expenses 3,113,016.21 2,574,549.52
Advertise expenses 250,197.35 228,217.25
Other taxes 5,527,095.24 4,273,050.16
Insurance expenses 1,279,712.96 1,804,720.89
52
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Research and development expenses 7,608,134.32 742,8943.7
Amortization of long term assets 2,147,650.88 2,114,872.91
Design consultant and test service expenses 1,975,676.93 1,808,814.77
Others 1,210,104.29 1,464,456.05
Total 86,984,149.72 88,125,363.34
35 Financial expenses
Items 2013.01-06 2012.01-06
Interest expenses 1,367,645.83 691,458.36
Less: interest income 3,697,556.93 3,552,147.62
Losses on exchange 124,156.42 96,314.50
Less: gain on exchange 149,827.16 2,635.48
Other expenses 270,465.01 249,980.61
Total -2,085,116.83 -2,517,029.63
36 Impairment losses
Items 2013.01-06 2012.01-06
Bad debt provision 11,692,077.89 13,943,786.87
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 11,692,077.89 13,943,786.87
37、Gain/ (loss) from investments
(1) Categeries
Items 2013.01-06 2012.01-06
Calculated by cost method 500,000.00
Calculated by equity method 43,570,614.51 44,944,226.71
Investment income due to disposal of the equity of
26,001.99
associated company
Total 44,070,614.51 44,970,228.70
53
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
(2) Calculated by cost method（more than 5% of profit）
Name 2013.01-06 2012.01-06 Reason of changes
Liaoning Mec Group Co., Ltd. 500,000.00 Dividend distribution
Total 500,000.00
(3) Calculated by equity method（more than 5% of profit）
Name 2013.01-06 2012.01-06 Reason of changes
Dalian Sanyo Cold-chain Co., Ltd 4,176,780.36 10,957,088.27 Decrease of business profit
Keinin-Grand Ocean Thermal Technology
4,558,809.00 7,669,105.73 Decrease of business profit
(Dalian) Co., Ltd.
Dalian Sanyo Compressor Co., Ltd. 31,248,034.91 18,328,875.46 Increase of business profit
Dalian Fuji Bingshan Vending Machine Co., Ltd. 5,080,150.27
Total 39,983,624.27 42,035,219.73
(4)There was no severe constrict on the collection of the investment earnings.
38 Non-business incomes
(1)Details
Item 2013.01-06 2012.01-06
Gain on the disposal of non-current assets 240,775.86 23,500.00
Including: gain on the disposal of fixed assets 240,775.86 23,500.00
Penalty and fine income 46,798.83 124,212.00
Subsidy fund from government 865,155.39 1,092,997.66
Deferred income 4,137,878.88 4,545,142.86
Debts need not paid 773,202.01
Others 6,775.95
Total 5,290,608.96 6,565,830.48
(2) Subsidy fund from government
Items 2013.01-06 2012.01-06 Explanations
Medium and small enterprise development Hubei Province appropriated medium and small
10,500.00
fund subsidies enterprise development fund subsidies
Fund subsidies according to economic Fund subsidies for 2012 according to economic
20,300.00
support policies support policies
Others 844,855.39 1,082,497.66 Tax refund
Total 865,155.39 1,092,997.66
39 Non-business expenses
Item 2013.01-06 2012.01-06
Loss on the disposal of non-current assets 222,418.65 202,086.55
Including: loss on the disposal of fixed assets 222,418.65 202,086.55
Fines and penalties 41,651.81 2,569.00
Others 55,534.34
Total 264,070.46 260,189.89
40 Income tax expense
Item 2013.01-06 2012.01-06
Current income tax expense 6,721,007.66 6,182,954.68
Deferred income tax expense -2,208,944.81 -2,550,539.49
Total 4,512,062.85 3,632,415.19
54
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
41、Basic earnings per share and diluted earnings per share calculation process
(1)Calculation of basic earning per share
Item No. 2013.01-06 2012.01-06
Profit or loss attributable to the Company 1 65,122,435.00 66,392,427.44
Profit or loss after deducting extraordinary gain or loss
2 62,382,278.37 63,276,376.07
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 0.19
Basic earnings per share deducting extraordinary gain or loss 13=2/3 0.18 0.18
(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.
42、Other comprehensive income
Items 2013.01-06 2012.01-06
1、Gain/(loss) on financial assets available for sale
Less：Income tax infection on financial assets available for sale
Net amount transferred into profit and loss at current period that
reckon into other comprehensive income at former period
Subtotal
2、Net amount of comprehensive income of invested company
55
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Items 2013.01-06 2012.01-06
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 12,000.00
Less: Income tax infection 3,000.00
Net amount transferred into profit and loss at current period that
reckon into other comprehensive income at former period
Subtotal 9,000.00
Total 9,000.00
43. Relevant information about cash flow statement
(1) Other cash received relating to operating activities
Item 2013.01-06 2012.01-06
Financial appropriation 1,760,300.00 1,750,500.00
Returns travel expense receivable 1,010,218.99 2,004,720.76
Deposit received 7,213,863.00 5,845,512.00
Received the current payments from connected parties 3,891,341.04
Interest income 2,657,991.66 3,552,147.62
Others 1,101,089.09 2,910,245.05
Total 17,634,803.78 16,063,125.43
(2) Other cash paid relating to operating activities
Item 2013.01-06 2012.01-06
Travel expense 11,293,948.33 8,876,368.97
Deposit paid 5,453,148.00 6,119,700.00
Sales expenditure 24,399,925.23 17,174,325.89
Administrative expenditure 17,141,598.46 19,606,623.34
Bank fees 270,465.01 249,980.61
Others 798,023.29 2,012,239.68
Total 59,357,108.32 54,039,238.49
(3) Other cash received relating to financing activities
Item 2013.01-06 2012.01-06
Liquidation of Dalian Bingshan Water Environment Co., Ltd., an
579,183.60
allied company
Total 579,183.60
(4) Other cash paid relating to financing activities
Item 2013.01-06 2012.01-06
Discount interest for acceptance notes 70,927.69
Total 70,927.69
56
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
44 Complementary information for consolidated cash flow statement
(1) The relationship between the net profit and the net cash flows from operating activities
Item 2013.01-06 2012.01-06
1. Reconciliation from the net profit to the cash flows from operating activities
Net profit 67,085,019.42 68,824,074.81
Add: Provisions for assets impairment 11,692,077.89 13,943,786.87
Depreciation of fixed assets 17,663,856.21 16,274,896.88
Amortization of intangible assets 2,099,282.43 2,045,633.75
Amortization of long-term deferred expenses 78,990.01 69,239.16
Losses on disposal of fixed assets, intangible assets and other long-term
-18,357.21 169,656.32
assets (gains, -)
Losses on scrapping of fixed assets (gains, -) 8,930.23
Losses on variation of fair value (gains, -)
Finance expenses (income, -) 1,355,670.85 797,054.21
Investment losses (gains, -) -44,070,614.51 -44,998,103.70
Decrease in deferred tax assets (increase, -) -2,208,944.81 -2,550,539.49
Increase in deferred tax liabilities (decrease, -)
Decrease in inventory (increase, -) 40,091,737.33 85,803,474.29
Decrease in operating receivables (increase, -) -82,052,456.41 -87,893,219.92
Increase in operating payables (decrease, -) -7,973,003.13 -180,130,403.46
Others
Net cash flows from operating activities 3,743,258.07 -127,635,520.05
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 481,218,686.90 441,824,449.34
Less: Cash at the beginning of the period 525,818,735.46 681,077,489.30
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 -44,600,048.56 -239,253,039.96
(2) Cash and cash equivalents
Item 2013.01-06 2012.01-06
1.Cash 481,218,686.90 525,818,735.46
Including: cash on hand 305,344.67 195,378.55
Bank deposits that can be used for payment whenever necessary 480,913,342.23 523,052,983.91
Other monetary capital that can be used for payment whenever
2,570,373.00
necessary
2.cash equivalents
Including: Bonds mature within 3 months
3.Balance of cash and cash equivalents at the end of the year 481,218,686.90 525,818,735.46
57
Dalian Refrigeration Co., Ltd. 2013 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 Xiao Yongqin 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 Wang Dekun Manufacturing RMB30,000,000.00 51 51 61640057-1
company
Industrial Co., Ltd.
58
Dalian Refrigeration Co., Ltd. 2013 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 Engineering & Trading 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
Keinin-Grand Ocean Thermal Technology (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
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
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
59
Dalian Refrigeration Co., Ltd. 2013 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
2013.01-06 2012.01-06
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 1,395,275.86 0.44
Dalian Sanyo Cold-chain Co., Ltd Purchases Purchases of goods Market price 9,031,353.74 2.87 3,911,260.61 0.59
Dalian Sanyo Compressor Co., Ltd. Purchases Purchases of goods Market price 659,584.42 0.21 1,729,316.36 0.26
Dalian Bingshan Group Refrigeration
Purchases Purchases of goods Market price 16,727,522.52 5.32 25,093,366.27 3.78
Equipment Co., Ltd.
Dalian Third Refrigeration Equipment
Purchases Purchases of goods Market price 4,993,403.71 1.59 6,579,617.42 0.99
Factory
Dalian Spindle Cooling Towers Co., Ltd. Purchases Purchases of goods Market price 402,136.75 0.13 397,880.35 0.06
BAC Dalian Co., Ltd. Purchases Purchases of goods Market price 37,487,747.00 11.91 25,299,951.70 3.81
Dalian Bingshan Engineering & Trading Co.,
Purchases Purchases of goods Market price 8,276,816.51 2.63 10,672,874.76 1.61
Ltd.
Dalian Bingshan Group Materials Trading
Purchases Purchases of goods Market price 2,753,364.26 0.87 2,129,367.84 0.32
Co. , Ltd
Dalian Bingshan Metal Technology Co., Ltd. Purchases Purchases of goods Market price 597,511.58 0.19 1,128,500.39 0.17
Dalian Sanyo Refrigeration Co., Ltd. Sales Sales of goods Market price 6,355,878.88 0.80 18,472.05 0.002
Dalian Sanyo Cold-chain Co., Ltd Sales Sales of goods Market price 12,331,500.97 1.56 6,079,572.13 0.71
Dalian Sanyo Compressor Co., Ltd. Sales Sales of goods Market price 1,703,435.03 0.22 3,896,475.10 0.46
Dalian Bingshan Group Refrigeration
Sales Sales of goods Market price 887,564.56 0.11 1,827,758.11 0.21
Equipment Co., Ltd.
Dalian Third Refrigeration Equipment
Sales Sales of goods Market price 1,695,097.85 0.21 4,072,537.01 0.48
Factory
BAC Dalian Co., Ltd. Sales Sales of goods Market price 114,564.10 0.01
Dalian Bingshan Engineering & Trading Co.,
Sales Sales of goods Market price 43,533,748.55 5.50 61,826,093.68 7.26
Ltd.
Beijing Bingshan Serial Refrigeration
Sales Sales of goods Market price 5,747,454.71 0.73 235,854.70 0.03
Equipment Co., Ltd.
Beijing Huashang Bingshan Serial
Sales Sales of goods Market price 12,913,205.37 1.63 497,102.36 0.06
Refrigeration Equipment Co., Ltd.
Dalian Fuji Bingshan Vending Machine Co.,
Sales Sales of goods Market price 942,225.90 0.12 1,683,376.19 0.20
Ltd.
Dalian Bingshan Metal Technology Co., Ltd. Sales Sales of goods Market price 51,500.34 0.01 75,625.64 0.01
Daliian Sanyo High-Efficient Refrigeration
Sales Sales of goods Market price 262,339.21 0.03 547,259.10 0.06
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. The
income from lease for this year accounts for 0.94% of other business incomes.
The company signed an agreement with Dalian Bingshan – P&A Recreation Development Engineering Co., Ltd. to lease part of
vacant rooms on the 11th floor of the office building to that company for one year with an annual rental 50,000.00 yuan. The
income from lease for this year accounts for 0.49% of other business incomes.
(3)Guarantee with related companies
No.
60
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
6 Amounts due from/to related parties
(1) Notes receivable
Name of the related parties 30-06-2013 31-12-2012
Dalian Sanyo Compressor Co., Ltd. 1,210,373.56
Dalian Bingshan Engineering & Trading Co., Ltd. 11,283,246.61
Dalian Sanyo Refrigeration Co., Ltd. 753,828.37
Daliian Sanyo High-Efficient Refrigeration System Co., Ltd. 190,290.23
(2) Accounts paid in advance
Name of the related parties 30-06-2013 31-12-2012
Dalian Sanyo Compressor Co., Ltd. 117,097.50 117,097.50
Dalian Sanyo Cold-chain Co., Ltd. 3,462.05 555.05
BAC Dalian Co., Ltd. 10,000.00 19,768.00
(3) Accounts receivable
30-06-2013 31-12-2012
Name of the related parties Provision for Provision
Amount Amount
bad debts for bad debts
Dalian Sanyo Compressor Co., Ltd. 650,144.76 32,507.24 310,500.00 15,525.00
Dalian Sanyo Refrigeration Co., Ltd. 2,828,407.47 141,420.37 2,377,058.87 118,852.94
Dalian Sanyo Cold-chain Co., Ltd. 5,232,682.94 261,634.15 2,862,481.41 143,124.07
BAC Dalian Co., Ltd. 94,500.00 4,725.00 94,500.00 4,725.00
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 1,608,404.37 80,420.22 20,976.00 1,048.80
Dalian Bingshan – P&A Recreation Development
151,457.00 7,572.85 207,707.00 10,385.35
Engineering Ltd.
Beijing Huashang Bingshan Refrigeration and Air-
3,382,240.38 169,112.02 172,000.00 8,600.00
conditioning Machinery Co., Ltd.
Dalian Fuji Bingshan Vending Machine Co., Ltd. 929,536.76 46,476.84 453,578.72 22,678.94
Dalian Sanyo High-Efficient Refrigeration System Co., Ltd. 204,604.33 10,230.22 174,023.55 8,701.18
Dalian Bingshan Engineering & Trading Co., Ltd. 669,183.66 33,459.18
(4) Other accounts receivable
30-06-2013 31-12-2012
Name of the related parties Provision for bad
Amount Amount Provision for bad debts
debts
BAC Dalian Co., Ltd. 30,000.00 3,000.00
(5) Notes payable
Name of the related parties 30-06-2013 31-12-2012
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 6,500,000.00
BAC Dalian Co., Ltd. 200,000.00 300,000.00
Dalian Bingshan Group Materials Trading Co. , Ltd. 960,000.00 2,159,000.00
Dalian Bingshan Engineering & Trading Co., Ltd. 6,447.00
Dalian Bingshan Metal Technology Co., Ltd. 600,000.00
61
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
(6) Accounts payable
Name of the related parties 30-06-2013 31-12-2012
Dalian Third Refrigeration Equipment Factory 436,239.54
BAC Dalian Co., Ltd. 26,277,396.22 13,504,237.95
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 8,463,937.54 4,534,454.95
Dalian Sanyo Refrigeration Co., Ltd. 13,000.00 13,000.00
Dalian Sanyo Cold-chain Co., Ltd. 10,872.41 9,516.00
Dalian Sanyo Meica Electronics Co., Ltd. 25,822.69 152,738.82
Dalian Spindle Cooling Towers Co., Ltd. 453,403.00
Dalian Bingshan Engineering & Trading Co., Ltd. 337,777.93 844,109.45
Dalian Sanyo Compressor Co., Ltd. 551,066.00 106,102.09
Dalian Bingshan Group Materials Trading Co., Ltd 810,251.34 175,641.03
Dalian Bingshan Metal Technology Co., Ltd. 499,088.53 108,154.23
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 10,000.00
(7) Accounts received in advance
Name of the related parties 30-06-2013 31-12-2012
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 8,415.30 8,415.30
Dalian Sanyo Refrigeration Co., Ltd. 2,007,000.00
Dalian Bingshan Engineering & Trading Co. , Ltd. 1,858,034.04 755,530.40
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 1,332,928.48
Beijing Huashang Bingshan Refrigeration and Air-
2,710,239.92
conditioning Machinery Co., Ltd.
(8) Other Accounts payable
Name of the related parties 30-06-2013 31-12-2012
Dalian Bingshan Group Co., Ltd. 10,541,125.25 10,518,303.62
Dalian Third Refrigeration Equipment Factory 1,000.00 1,000.00
Dalian Bingshan Engineering & Trading Co. , Ltd. 129,359.61
(9) Dividend payable
Name of the related parties 30-06-2013 31-12-2012
Dalian Bingshan Group Co., Ltd. 950,000.00
Ⅶ.Contingency
No.
Ⅷ. Commitments
No.
Ⅸ.Unadjusted events after the Balance Sheet Date
No.
Ⅹ.Other significant events
No.
62
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Ⅺ.Notes to the financial statements of the parent company
1 Accounts receivable
(1) Classified by account nature
30-06-2013 31-12-2012
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 242,147,469.61 100 63,622,730.35 26.28 233,497,736.50 100 59,972,692.36 25.69
significant but with
high risk in groups
Other insignificant
items
Total 242,147,469.61 100 63,622,730.35 26.28 233,497,736.50 100 59,972,692.36 25.69
The aging of accounts receivable and related provisions for bad debts
30-06-2013 31-12-2012
Proportion Provision for bad Proportion Provision for bad
Ages Amount Amount
(%) debts (%) debts
Within1 year 92,884,227.98 38.36 4,644,211.39 93,951,629.41 40.23 4,697,581.47
1 to 2 years 66,415,995.15 27.43 6,641,599.52 59,935,567.98 25.67 5,993,556.80
2 to 3 years 30,661,596.67 12.66 9,198,479.00 22,646,684.27 9.70 6,794,005.28
3 to 4 years 12,860,255.25 5.31 6,430,127.63 23,644,344.77 10.13 11,822,172.39
4 to 5 years 13,085,408.77 5.40 10,468,327.02 13,270,668.25 5.68 10,616,534.60
Over 5 years 26,239,985.79 10.84 26,239,985.79 20,048,841.82 8.59 20,048,841.82
Total 242,147,469.61 100 63,622,730.35 233,497,736.50 100 59,972,692.36
(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)The write-off of accounts receivable
Name of company The nature of accounts receivable Written off Reason Related party transaction
Clients (43) Sale of goods 3,723,228.30 ① No
①Description of writing off: The Company's receivables written-off in this reporting period were mainly those treated by the
company for long-overdue receivables mainly because 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.
(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 Proportion
Company Amount Age
with the Company (%)
COFCO Meat Food (Suqian) Co., Ltd. Non-affiliated 12,449,913.80 Less than 1 year; 1-2 years 5.14
Dalian Xinghaiwan Development &
Non-affiliated 11,242,693.00 4-5 years 4.64
Construction Management Center
Yichang Sanxia Logistic Park Co., Ltd. Non-affiliated 6,018,375.00 Less than 1 year 2.49
Dalian Jinyu New Energy Scientific &
Non-affiliated 5,500,000.00 over 5 years 2.27
Technological Development Co., Ltd.
Zhengzhou Sinian Food Co., Ltd. Non-affiliated 4,464,748.00 Less than 1 year; 1-2 years 1.84
Total 39,675,729.80 16.38
63
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
(8) The amount of accounts receivable due from related companies are RMB 4,922,556.66, 2.03% of total accounts receivable.
The relationship
Proportion of total accounts
Name with the Amount
receivable (%)
Company
Beijing Huashang Bingshan Refrigeration and Associated
3,159,240.38 1.30
Air-conditioning Machinery Co., Ltd. company
Associated
Dalian Sanyo Compressor Co., Ltd. 509,644.76 0.21
company
Beijing Bingshan Serial Refrigeration Subsidiary of
1,253,671.52 0.52
Equipment Co., Ltd. Bingshan Group
Total 4,922,556.66 2.03
(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
30-06-2013 31-12-2012
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 8,317,595.55 100 1,010,742.43 12.16 7,139,241.12 100 1,046,519.70 14.66
with high risk in groups
Other insignificant items
Total 8,317,595.55 100 1,010,742.43 12.16 7,139,241.12 100 1,046,519.70 14.66
The ageing of other accounts receivable and related provisions for bad debts
30-06-2013 31-12-2012
Ages Proportion Provision for bad Proportion Provision for bad
Amount Amount
(%) debts (%) debts
Within1 year 5,686,144.93 68.36 284,307.25 3,581,828.76 50.17 179,091.44
1 to 2 years 615,000.00 7.39 61,500.00 1,512,886.77 21.19 151,288.68
2 to 3 years 1,716,450.62 20.64 514,935.18 1,535,506.07 21.51 460651.82
3 to 4 years 300,000.00 3.61 150,000.00 505,759.52 7.08 252,879.76
4 to 5 years 3,260.00 0.05 2,608.00
Over 5 years
Total 8,317,595.55 100 1,010,742.43 7,139,241.12 100 1,046,519.70
(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.
64
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
(7) The first five arrearage entities of other accounts receivable
The relationship with
Company Amount Age Proportion (%)
the Company
Xining Nongshang Investment
Construction Development 1,432,000.00 2-3 years 17.21
Management Co., Ltd. Non-affiliated
Nanjing Qingjiang Cold Chain
900,000.00 Less than 1 year 10.82
Logistics Co,. Ltd. Non-affiliated
CATIC International Economic &
550,000.00 Less than 1 year 6.61
Trade Development Co., Ltd. Non-affiliated
Jiangxi Alkaline Industry Co., Ltd. Non-affiliated 300,000.00 3-4 years 3.61
Dalian Economic & Technological
Development Zone Fund Accounting 265,950.62 2-3 years 3.20
Center for Organs and Institutions Non-affiliated
Total 3,447,950.62 41.45
(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
Calculation Shareholding Voting right Provision for impairment of
No. Name Initial cost Beginning balance Changes Ending balance the current
method （%） （%） impairment the current
period
period
Dalian Bingshan – P&A
Equity
1 Recreation Development 1,034,675.00 3,229,074.38 -330,100.26 2,898,974.12 50 50
method
Engineering Co., Ltd.
Dalian Jiale Vending
Equity
2 Machine Operation Co., 18,750,000.00 14,668,101.42 -334,917.83 14,333,183.59 50 50
method
Ltd.
Dalian Bingshan
Equity
3 Engineering & Trading 7,200,000.00 12,435,737.30 824,130.97 13,259,868.27 24 24
method
Co. , Ltd.
Dalian Grand Ocean
Thermo King Transport Equity
4 2,871,708.00 2,154,532.01 0.00 2,154,532.01 40 40
Refrigeration Engineering method
Co., Ltd
Dalian Sanyo Equity
5 85,416,929.20 151,488,491.18 -4,651,339.02 146,837,152.16 40 40 4,800,000.00
Refrigeration Co., Ltd. method
Dalian Honjo Chemical Equity
6 3,908,911.50 9,398,455.84 -710,369.65 8,688,086.19 30 30 1,197,604.02
Co., Ltd. method
Dalian Sanyo Cold-chain Equity
7 134,658,753.75 216,645,866.64 -3,823,219.64 212,822,647.00 40 40 8,000,000.00
Co., Ltd method
Keinin-Grand Ocean
Equity
8 Thermal Technology 24,402,234.58 41,365,239.20 -6,241,191.00 35,124,048.20 20 20 10,800,000.00
method
(Dalian) Co., Ltd.
65
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Provision for
Cash dividend of
Calculation Shareholding Voting right Provision for impairment of
No. Name Initial cost Beginning balance Changes Ending balance the current
method （%） （%） impairment the current
period
period
Dalian Sanyo Compressor Equity
9 176,953,841.88 348,546,951.11 6,848,034.91 355,394,986.02 40 40 24,400,000.00
Co., Ltd. method
Dalian Sanyo Meica Equity
10 9,649,590.00 27,308,958.46 -110,176.59 27,198,781.87 30 30
Electronics Co., Ltd. method
Dalian Sanyo Home Equity
11 19,666,212.00 11,694,400.00 0.00 11,694,400.00 10.91 10.91 11,694,400.00
Appliance Co., Ltd. method
Beijing Huashang
Bingshan Refrigeration Equity
12 490,000.00 905,958.67 11,100.94 917,059.61 49 49
and Air-conditioning method
Machinery Co., Ltd.
Dalian Fuji Bingshan
Equity
13 Vending Machine Co., 66,416,364.00 70,052,012.69 2,792,481.55 72,844,494.24 49 49
method
Ltd.
Daliian Sanyo High-
Equity
14 Efficient Refrigeration 20,000,000.00 21,758,867.90 98,576.11 21,857,444.01 25 25
method
System Co., Ltd.
Zibo Electric Traction Cost
15 420,000.00 420,000.00 420,000.00 0.76 0.76 420,000.00
Machine Co., Ltd. method
Liaoning Mec Group Co., Cost
16 1,020,000.00 1,020,000.00 1,020,000.00 3.57 3.57 500,000.00
Ltd. method
Guotai Junan Securities Cost
17 30,098,895.00 30,098,895.00 30,098,895.00 0.49 0.49 1,582,164.89
Co., Ltd. method
Guotai Junan Investment Cost
18 3,057,316.00 3,057,316.00 3,057,316.00 0.22 0.22 2,688,605.91
Management Co., Ltd. method
Thermo King Container
Cost
19 Temperature Control 11,207,806.00 11,207,806.00 11,207,806.00 17.8 17.8
method
(Suzhou) Co., Ltd.
Liaoning Enterprises Cost
20 105,000.00 105,000.00 105,000.00 4.2 4.2 105,000.00
UnitedIndustryCo.,Ltd. method
Dalian Bingshan Group
Cost
21 Materials Trading Co., 250,000.00 250,000.00 250,000.00 5 5
method
Ltd.
Dalian Bingshan Group
Cost
22 Refrigeration Installation 20,036,841.62 20,036,841.62 20,036,841.62 100 100
method
Co., Ltd.
Dalian Bingshan Group Cost
23 16,200,000.00 16,200,000.00 16,200,000.00 90 90
Sales Company method
Dalian Bingshan Metal Cost
24 12,501,344.60 12,501,344.60 12,501,344.60 64.25 64.25
Processing Co., Ltd. method
Dalian Bingshan Air- Cost
25 36,506,570.00 36,506,570.00 36,506,570.00 70 70
Conditioning Equipment method
66
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Provision for
Cash dividend of
Calculation Shareholding Voting right Provision for impairment of
No. Name Initial cost Beginning balance Changes Ending balance the current
method （%） （%） impairment the current
period
period
Co., Ltd.
Dalian Bingshan
Cost
26 Guardian Automation 1,522,117.80 1,522,117.80 1,522,117.80 60 60 2,263,205.11
method
Co., Ltd.
Dalian Bingshan
Cost
27 Ryosetsu Quick Freezing 5,745,097.40 5,745,097.40 5,745,097.40 70 70
method
Equipment Co., Ltd.
Wuhan New World
Cost
28 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
29 400,000.00 400,000.00 400,000.00 5 100
Conditioner Engineering method
Co., Ltd.
Total 728,470,608.33 1,088,704,035.22 -5,626,989.51 1,083,077,045.71 16,490,170.80 54,510,809.13
(2)Listed with kinds of long term investment：
Item 30-06-2013 31-12-2012
Subsidiaries 110,892,371.42 110,892,371.42
Associates 897,099,099.58 902,061,071.00
Joint venture 17,232,157.71 17,897,175.80
Other long-term equity investments 57,853,417.00 57,853,417.00
Total 1,083,077,045.71 1,088,704,035.22
Less: Provision for impairment of long-
16,490,170.80 16,490,170.80
term equity investments
Net 1,066,586,874.91 1,072,213,864.42
(3) Provision for impairment on long-term equity investment
Name of invested company 30-06-2013 31-12-2012
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
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 16,490,170.80 16,490,170.80
4 Revenue and cost of sales
(1)Business income and cost
Items 2013.01-06 2012.01-06
Operating income 485,112,570.51 505,055,917.77
Key business income 476,890,717.26 493,081,985.13
Other business income 8,221,853.25 11,973,932.64
Operating cost 389,637,758.36 410,724,964.56
Key business cost 382,481,578.43 398,810,722.34
Other business cost 7,156,179.93 11,914,242.22
67
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
(2) Key business（type）
2013.01-06 2012.01-06
Name of type
Revenue Cost Revenue Cost
Manufacturing 476,890,717.26 382,481,578.43 493,081,985.13 398,810,722.34
(3) Key business（product）
2013.01-06 2012.01-06
Name of product
Revenue Cost Revenue Cost
Refrigeration
476,890,717.26 382,481,578.43 493,081,985.13 398,810,722.34
equipments
(4) Key business (region)
2013.01-06 2012.01-06
Name of region
Revenue Cost Revenue Cost
North-east of China 476,890,717.26 382,481,578.43 493,081,985.13 398,810,722.34
(5) Top five customers
Percentage of total
Name Revenue
business income (%)
Dalian Bingshan Engineering & Trading Co., Ltd. 39,020,551.28 8.04
China PLA No. 63820 Troop 099 Project Command Office 23,931,623.93 4.93
Huanghai Ship-building Co., Ltd. Shandong Province 18,506,564.10 3.82
Sichuan Tianlun Tanxiangluo Food Co., Ltd. 12,393,162.39 2.56
Beijing Huashang Bingshan Refrigeration and Air-conditioning
12,041,410.50 2.48
Machinery Co., Ltd.
Total 105,893,312.20 21.83
5 Gain/ (loss) from investments
(1) Categery
Item 2013.01-06 2012.01-06
Gain arising from dividends of subsidiaries 5,313,205.11 6,537,220.05
Long-term equity investment income accounted for by using the equity method 43,570,614.51 44,944,226.71
Investment income due to disposal of the equity of associated company 26,001.99
Total 48,883,819.62 51,507,448.75
68
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
(2) Gain arising from dividends of subsidiaries
Name of invested company 2013.01-06 2012.01-06 Reason of changes
Liaoning Mec Group Co., Ltd. 500,000.00 Dividend distributed
Dalian Bingshan Air-Conditioning Equipment Co., Ltd. 2,450,000.00 Board of directors not held
Dalian Bingshan Guardian Automation Co., Ltd. 2,263,205.11 1,537,220.05 More distributed dividend
Wuhan New World Refrigeration Industrial Co., Ltd. 2,550,000.00 2,550,000.00
Total 5,313,205.11 6,537,220.05
(3) Long-term equity investment income accounted for by using the equity method
Name of invested company 2013.01-06 2012.01-06 Reason of changes
Dalian Sanyo Refrigeration Co., Ltd. 148,660.98 1,060,880.35 Decrease of business profit
Dalian Sanyo Cold-chain Co., Ltd 4,176,780.36 10,957,088.27 Decrease of business profit
Keinin-Grand Ocean Thermal Technology (Dalian) Co., Ltd. 4,558,809.00 7,669,105.73 Decrease of business profit
Dalian Sanyo Compressor Co., Ltd. 31,248,034.91 18,328,875.46 Increase of business profit
Dalian Bingshan Engineering & Trading Co., Ltd. 824,130.97 1,095,725.94 Decrease of business profit
Dalian Grand Ocean Thermo King Transport Refrigeration
-236,660.09 In liquidation
Engineering Co., Ltd
Dalian Honjo Chemical Co., Ltd. 487,234.37 704,305.89 Decrease of business profit
Dalian Sanyo Meica Electronics Co., Ltd. -110,176.59 1,250,275.22 Decrease of business profit
Beijing Huashang Bingshan Refrigeration and Air-conditioning
11,100.94 30,430.07 Decrease of business profit
Machinery Co., Ltd.
Dalian Fuji Bingshan Vending Machine Co., Ltd. 2,792,481.55 5,080,150.27 Decrease of business profit
Daliian Sanyo High-Efficient Refrigeration System Co., Ltd. 98,576.11 -608,048.93 Increase of business profit
Dalian Bingshan – P&A Recreation Development Engineering
-330,100.26 -236,957.37 Decrease of business profit
Co., Ltd.
Dalian Jiale Vending Machine Operation Co., Ltd. -334,917.83 -150,944.10 Decrease of business profit
Total 43,570,614.51 44,944,226.71
(4)There was no severe constrict on the collection of the investment earnings.
6、Supplementary information of cash flow statement
Supplementary information 2013.01-06 2012.01-06
1. Reconciliation from the net profit to the cash flows from operating activities
Net profit 63,288,641.95 65,100,553.12
Add: Provisions for assets impairment 7,337,489.02 7,563,076.64
Depreciation of fixed assets 11,301,660.09 10,113,983.87
Amortization of intangible assets 1,326,553.77 1,270,594.62
Amortization of long-term deferred expenses 70,224.67 60,473.82
Losses on disposal of fixed assets, intangible assets and other long-term
assets (gains, -)
Losses on scrapping of fixed assets (gains, -) 321.27
Losses on variation of fair value (gains, -)
Finance expenses (income, -) -119,335.70 92,165.31
Investment losses (gains, -) -48,883,819.62 -51,507,448.75
Decrease in deferred tax assets (increase, -) -1,834,372.26 -1,890,769.16
Increase in deferred tax liabilities (decrease, -)
Decrease in inventory (increase, -) 27,004,267.11 45,350,870.65
Decrease in operating receivables (increase, -) -48,593,335.99 -48,212,493.64
Increase in operating payables (decrease, -) -4,471,548.27 -128,596,217.47
Others
69
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Net cash flows from operating activities 6,426,424.77 -100,654,889.72
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 398,052,941.34 389,182,297.39
Less: Cash at the beginning of the period 437,725,268.74 585,557,597.61
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 -39,672,327.40 -196,375,300.22
Ⅻ. Other supplementary Information
1 Non-recurring profits and losses
Non-recurring gains and losses item 2013.01-06 2012.01-06
1. Gain/loss from disposal of non-current assets 18,357.21 -178,586.55
2.Tax return or exemption exceeding authority or without formal
authorization documents
3.Governmental subsidy written into current gains and losses 20,300.00 10,500.00
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 3,586,025.90 4,541,677.98
Total 3,624,683.11 4,373,591.43
Less：Affected amount of income tax from non-recurring gains and
915,792.50 1,038,778.19
losses
Non-recurring gains and losses, net 2,708,890.61 3,334,813.24
Included: Attributable to minority interest -31,266.02 218,761.87
Attributable to parent company 2,740,156.63 3,116,051.37
2 Earnings per share
The weighted EPS
Item average ROE
(%) Basic EPS Diluted EPS
Net profit attributable to the Company’s ordinary
3.61 0.19 0.19
shareholders
Net profit attributable to the Company’s ordinary
3.45 0.18 0.18
shareholders after deducting non-recurring gains and losses
70
Dalian Refrigeration Co., Ltd. 2013 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 2013.06.30 2012.12.31 Reasons
（%）
The payments for goods transferred and paid by
Notes receivable 68,824,431.79 41,966,544.97 64.00 endorsement on notes decreased in the report
period
The payments for projects, purchases prepaid in
Account paid in advance 49,737,317.72 31,249,976.50 59.16
the report period increased
The term deposits in the report period increased
Interest receivable 1,317,009.71 277,444.44 374.69
with more interests
The dividends announced for distribution by the
Dividend receivable 37,200,000.00 39,025.00 95,223.51 invested units did not arrive in the payment
period
The performance laboratory reconstruction of the
Project in construction 9,387,482.08 1,304,951.56 619.37
company was not completed in the report period
Short-term loans increased in subsidiaries in the
Short-term borrowings 39,500,000.00 29,500,000.00 33.90
report period
Subsidiaries paid the year-end bonus for the last
Employee’s compensation payable 35,402,187.11 64,384,750.97 -45.01
year in the report period
The unexpired payable dividends increased in the
Dividend payable 2,983,156.00 533,156.00 459.53
subsidiaries in the report period
The taxable income amount increased in the
Tax payable 12,984,937.86 620,179.66 1993.74
report period
71
Dalian Refrigeration Co., Ltd. 2013 Semiannual Report
Section 9 Contents of Reference Documents
1. The accounting statements bearing the signatures and seals of the legal representative, the financial
majordomo and the accountants in charge.
2. 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, 2013
72
