DALIAN REFRIGERATION CO., LTD.
QUARTERLY REPORT FOR THIRD QUARTER, 2013
§1 Important Notes
1.1 The directors and the Board of Directors, the supervisors and the Supervisory Board, and Senior staff
members of Dalian Refrigeration Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are
no any important omissions, fictitious statements or serious misleading carried in this report, and shall take all
responsibilities, individual and/or joint, for the reality, accuracy and completeness of the whole contents.
1.2 The Company’s quarterly financial report has not been audited.
1.3 Chairman of the Board of Directors of the Company Mr. Xiao Yongqin, Financial Majordomo and the head of
Accounting Department Ms. Rong Yan hereby confirm that the financial report of the quarterly report is true and
complete.
1.4 This report is written respectively in Chinese and in English. In the event of any discrepancy between the two
above-mentioned versions, the Chinese version shall prevail.
§2 Major accounting data and changes of shareholders
2.1 Major accounting data and financial indexes
Is there any traceable adjustment to the financial statements for the previous report period?
□ Yes √ No
Increase/decrease over
2013.9.30 2012.12.31
2012.12.31(%)
Total assets 2,967,621,729.85 2,937,190,656.69 1.04%
Shareholder’s equity attributable to
1,849,180,962.53 1,808,800,737.71 2.23%
parent company
Increase/decrease Increase/decrease
2013.7-9 2013.1-9
over 2012.7-9(%) over 2012.1-9(%)
Total operating income 396,743,902.24 10.85% 1,188,868,055.47 -1.67%
Net profit attributable to parent
29,912,693.72 18.02% 95,035,128.72 3.59%
company
Net profit attributable to parent
company after deducting 29,677,866.18 17% 92,060,144.55 3.86%
non-recurring gains/losses
Net cash generated from operating
- - 8,605,664.10 117.02%
activities
Basic earnings per share 0.09 28.57% 0.27 3.85%
Diluted earnings per share 0.09 28.57% 0.27 3.85%
Increase 0.19 Decrease 0.01
Return on equity 1.61% 5.22%
percentage points percentage points
Amount from beginning of year
Item of non-recurring gains and losses to the end of report period
Profit and loss from disposal of non-current assets 310,790.22
Government subsidies which were included in the current profits and losses 20,300.00
Other non-operating incomes and expenses except the above mentioned 3,603,848.05
Income tax effects 994,725.78
Minority equity interests effects (after tax) -34,771.68
Total 2,974,984.17
1
2.2 Total number and particulars of the shareholders by the end of the report period
Total shareholders at the end of report period 41,105
Shareholding of top ten shareholders
Number of Number of
Name Nature Proportion Total number shares with sale pledged shares or
restriction shares frozen
Domestic non-state-owned
Dalian Bingshan Group Co., Ltd. 21.96% 76,855,683 19,213,921
legal person
SANYO ELECTRIC CO LTD Foreign legal person 10.00% 35,001,500
BOCI SECURITIES LIMITED Foreign legal person 0.75% 2,627,254
Domestic non-state-owned
Zhongtian Securities Co., Ltd. 0.67% 2,317,943
legal person
Guoyuan Securities Brokerage Hong
Foreign legal person 0.56% 1,940,155
Kong Limited
Jiang Youchang Domestic natural person 0.51% 1,756,075
Lin Zhenming Foreign natural person 0.47% 1,640,000
Dalian Industrial Development Domestic non-state-owned
0.47% 1,622,250
Investment Company legal person
Jiantou Zhongxin Assets Domestic non-state-owned
0.45% 1,575,000
Management Co., Ltd. legal person
Huafu Competitiveness Selected
Others 0.43% 1,499,910
Mixed Type Stock Fund
Particulars about shares held by the top ten negotiable shareholders not subject to conditional sales
Name of shareholder EORP (shares) Type
Dalian Bingshan Group Co., Ltd. 57,641,762 A
SANYO ELECTRIC CO LTD 35,001,500 B
BOCI SECURITIES LIMITED 2,627,254 B
Zhongtian Securities Co., Ltd. 2,317,943 A
Guoyuan Securities Brokerage Hong Kong Limited 1,940,155 B
Jiang Youchang 1,756,075 A
Lin Zhenming 1,640,000 B
Dalian Industrial Development Investment Company 1,622,250 A
Jiantou Zhongxin Assets Management Co., Ltd. 1,575,000 A
Huafu Competitiveness Selected Mixed Type Stock Fund 1,499,910 A
Dalian Bingshan Group Co., Ltd. had the association relationship with
Notes to the associated relationship and
Sanyo Electric Co., Ltd. among the above shareholders. Sanyo Electric
uniform actions of the above shareholders Co., Ltd. holds 30% of Dalian Bingshan Group Co., Ltd.'s equity.
Did the Company's shareholders conduct the agreed repurchase transactions in the reporting period?
□ Yes √ No
2
§3 Important Matters
3.1 Major changes in main financial items and indexes, and description of the cause
√ Applicable □ Inapplicable
1. The amount of advances was significantly more than that at the beginning of the year mainly due to the advances
for purchasing the equipment and for the project.
2. The dividend receivable was significantly more than that at the beginning of the year mainly due to increase of
the undue dividend receivable.
3. The interest receivable was significantly more than that at the beginning of the year mainly due to the interest
from new term-deposits.
4. Other current assets was significantly less than that at the beginning of the year mainly due to decrease of the
prepaid income tax changeover in.
5. The construction in progress was significantly more than that at the beginning of the year mainly due to the
production building reconstruction and equipment replacement.
6. The disposal of fixed assets was significantly more than that at the beginning of the year mainly due to the land
reserve for which the related fixed asset was in the state of disposal.
7. The short-term loan was significantly more than that at the beginning of the year mainly due to increase of the
short-term loan of the subsidiary companies.
8. The notes payable was significantly less than that at the beginning of the year mainly due to decrease of the paid
amount for due notes.
9. The taxes payable was significantly more than that at the beginning of the year mainly due to the VAT retained at
the end of 2012.
10. The dividend payable was significantly more than that at the beginning of the year mainly due to increase of the
undue dividend payable of the subsidiary companies.
11. Other payable was significantly more than that at the beginning of the year mainly due to the partly contract
price received for the land reserve.
12. Other current liabilities was significantly less than that at the beginning of the year mainly due amortization of
incomes in the reporting period.
13. The financial expenses was significantly less mainly due to increase of the term deposit with more interest
revenue.
3.2 Analytic description of major matters, their influence and solutions
√ Applicable □ Inapplicable
On Jul. 18, 2013, the Company convened the 4th meeting of the 6th Board of Directors, reviewed and adopted the
Report about Reserving Part of the Land Use Rights of the Company, and agreed that the use rights for two plots of
land owned by the Company for the purpose of storage having the total area of 40,376 sq. m. located at Houge
Village, Gezhenpu Community, Ganjingzi District, Dalian were reserved by Dalian Land Reserve Center with the
reserve compensation of 50 million yuan. For details of this matter and main content of the land reserve
compensation agreement to be signed, refer to the Announcement on the Resolutions of the Company (2013-018)
and the Announcement on Reserving Part of the Land Use Rights of the Company (2013-020) published on China
Securities Daily, Hong Kong Commercial Daily and the website www.cninfo.com.cn on Jul. 19, 2013.
Afterwards, the Company signed the Compensation Agreement for Reserving State-Owned Land Use Right with
Dalian Land Reserve Center and received the first installment of reserve compensation of 40 million yuan. For
details of this matter, refer to the Progress of Reserve for Part of the Land Use Right (2013-021) published on China
Securities Daily, Hong Kong Commercial Daily and the website www.cninfo.com.cn on Aug. 21, 2013.
At the end of the reporting period, the Company has not delivered to Dalian Land Reserve Center the land to be
reserved due to that the related plots of land failed meeting the handover requirement so that the procedure for
cancelling the registration of land use right had not be gone through. For the above condition, the income from
disposal of the above land use rights has not met the requirement for income confirmation according to the
Explanation of Accounting Standards for Business Enterprises and the Accounting Standards for Business
Enterprises No. 14 - Incomes and therefore was not confirmed in this reporting period.
Now the Company is actively going through the necessary procedures and tries to meet the handover requirement
and hand over the land as soon as possible.
3
3.3 Undertaking matters for trial sales of state shares and implementation
√ Applicable □Inapplicable
Except the immature condition of being implementation for management share incentive scheme,
Dalian Bingshan Group strictly perform the commitment in share reform.
3.4 Precautions on forecasting that by the beginning of year till the end of the next report period, the accumulated
net profit may be turned into loss or change greatly compared with that in the same period of the last year, and
description of the cause
□ Applicable √ Inapplicable
3.5 Other important events
3.5.1 Securities investment
□ Applicable √ Inapplicable
3.5.2 Derivatives investment
□ Applicable √ Inapplicable
3.5.3 Table of investigation, communication, interview received
Date of Way of Main content of
Place of reception Guest received
reception reception discussion
Field Research fellow of Shenyen Wanguo
July 24, 2013 Company’s office
investigation Securities
Research fellow of China Galaxy
Information about
Aug. 22, 2013 Company’s office By telephone Securities; Research fellow of Industrial
the fundamentals of
Securities
the Company
Aug. 26, 2013 Company’s office By telephone Research fellow of CITIC Securities
Field
Sep. 4, 2013 Company’s office Research fellow of Huatai Securities
investigation
§4 Financial Report (attached)
Not audited.
Board of Directors of Dalian Refrigeration Co., Ltd.
October 24, 2013
4
BALANCE SHEET
Prepared by Dalian Refrigeration Co., Ltd. September 30, 2013 Unit: RMB
September 30, 2013 December 31, 2012
Assets
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 520,587,561.79 434,692,531.50 531,896,655.08 443,299,858.36
Transaction finance asset
Notes receivable 32,685,240.38 13,128,033.49 41,966,544.97 27,500,254.79
Accounts receivable 396,016,202.36 171,778,007.87 352,261,726.74 173,525,044.14
Accounts in advance 62,988,895.71 26,906,863.61 31,249,976.50 12,919,740.55
Interest receivables 3,386,719.07 3,386,719.07 277,444.44 277,444.44
Dividend receivable 19,480,000.00 22,680,009.73 39,025.00
Other receivables 18,508,727.32 6,426,502.86 18,963,969.53 6,092,721.42
Inventories 328,069,445.38 163,936,688.33 398,895,095.83 201,422,670.07
Non-current asset due within
one year
Other current assets 1,326,087.45 1,326,087.45 6,026,385.86 5,956,559.82
Total current assets 1,383,048,879.46 844,261,443.91 1,381,576,823.95 870,994,293.59
Non-current assets:
Finance asset held available for
sales
Held-to-maturity securities
Long-term account receivable
Long-term equity investment 982,246,777.09 1,091,824,006.01 962,636,635.50 1,072,213,864.42
Investment property
Fixed assets 389,345,394.92 214,427,379.15 404,973,883.42 224,624,146.17
Construction in progress 24,456,530.35 19,958,784.16 1,304,951.56 554,009.14
Engineering material
Disposal of fixed asset 1,168,130.39 1,168,130.39
Productive biological asset
Oil and gas asset
Intangible assets 163,119,607.19 97,095,936.16 165,794,041.15 98,611,277.13
Expense on Research and
Development
Goodwill
Long-term expenses to be
3,873,305.37 3,515,387.69 2,981,518.62 2,610,452.93
apportioned
Deferred income tax asset 20,363,105.08 12,959,825.12 17,922,802.49 11,125,452.86
Other non-current asset
Total non-current asset 1,584,572,850.39 1,440,949,448.68 1,555,613,832.74 1,409,739,202.65
Total assets 2,967,621,729.85 2,285,210,892.59 2,937,190,656.69 2,280,733,496.24
5
BALANCE SHEET (CONTINUED)
Liabilities and shareholders’ September 30, 2013 December 31, 2012
equity Consolidation Parent Company Consolidation Parent Company
Current liabilities:
Short-term loans 39,500,000.00 29,500,000.00
Transaction financial liabilities
Notes payable 52,644,861.90 24,227,355.00 79,127,124.20 58,628,509.20
Accounts payable 500,258,466.00 297,932,937.98 436,720,339.20 267,244,798.64
Accounts received in advance 206,439,077.41 95,804,494.60 288,041,113.23 142,944,087.68
Wage payable 48,651,539.62 15,838,114.06 64,384,750.97 29,385,027.38
Taxes payable 11,357,897.39 2,035,601.95 620,179.66 -4,577,147.78
Dividend payable 2,540,782.25 533,156.00 533,156.00 533,156.00
Other accounts payable 84,093,027.82 67,360,278.96 53,435,964.07 41,680,362.14
Non-current liabilities due within
one year
Other current liabilities 805,062.58 526,559.58 1,699,101.00 585,101.00
Total current liabilities 946,290,714.97 504,258,498.13 954,061,728.33 536,423,894.26
Non-current liabilities:
Long-term loans
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities
Deferred income tax liabilities
Other non-current liabilities 71,288,204.66 23,386,204.66 73,275,358.79 25,373,358.79
Total non-current liabilities 71,288,204.66 23,386,204.66 73,275,358.79 25,373,358.79
Total liabilities 1,017,578,919.63 527,644,702.79 1,027,337,087.12 561,797,253.05
Shareholders’ equity
Share capital 350,014,975.00 350,014,975.00 350,014,975.00 350,014,975.00
Capital public reserve 584,864,283.21 583,635,355.59 584,852,283.21 583,623,355.59
Surplus public reserve 491,000,222.86 491,000,222.86 469,665,883.33 469,665,883.33
Retained profit 423,301,481.46 332,915,636.35 404,267,596.17 315,632,029.27
Total owner’s equity attributable to
1,849,180,962.53 1,757,566,189.80 1,808,800,737.71 1,718,936,243.19
parent company
Minority interests 100,861,847.69 101,052,831.86
Total owner’s equity 1,950,042,810.22 1,757,566,189.80 1,909,853,569.57 1,718,936,243.19
Total liabilities and shareholder’s equity 2,967,621,729.85 2,285,210,892.59 2,937,190,656.69 2,280,733,496.24
6
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. July-September, 2013 Unit: RMB
July-September, 2013 July-September, 2012
Items
Consolidation Parent Company Consolidation Parent Company
I. Total sales 396,743,902.24 223,097,655.41 357,894,945.23 203,979,829.30
Including: Operating income 396,743,902.24 223,097,655.41 357,894,945.23 203,979,829.30
II. Total operating cost 386,522,513.74 221,052,477.74 362,230,494.24 216,962,312.83
Including: Operating cost 303,337,930.43 174,300,590.29 287,117,546.89 175,666,417.65
Taxes and associate charges 4,461,475.98 1,743,729.10 1,939,990.77 820,907.38
Selling and distribution expenses 32,016,233.11 21,410,374.01 26,761,108.01 14,604,142.06
Administrative expenses 47,333,770.30 26,311,433.19 45,332,154.24 26,127,353.88
Financial expense -2,032,980.87 -2,713,648.85 -13,390.99 -256,508.14
Impairment loss 1,406,084.79 1,093,085.32
Add: gain from change in fair value
Gain/(loss) from investment 25,737,496.89 27,977,496.89 36,243,585.93 36,243,585.93
Including: income form investment on
25,737,496.89 25,737,496.89 36,243,585.93 36,243,585.93
affiliated enterprise and jointly enterprise
Foreign exchange difference
III. Operating profit 35,958,885.39 30,022,674.56 31,908,036.92 23,261,102.40
Add: non-business income 954,638.82 668,374.82 851,405.31 472,556.31
Less: non-business expense 39,981.22 28,858.22 144,504.68 103,465.15
Including: loss from non-current asset
49,253.12 28,858.22 133,608.39 103,465.15
disposal
IV. Total profit 36,873,542.99 30,662,191.16 32,614,937.55 23,630,193.56
Less: Income tax 4,195,614.45 2,830,640.25 3,767,578.65 2,776,684.59
V. Net profit 32,677,928.54 27,831,550.91 28,847,358.90 20,853,508.97
Net profit attributable to parent company 29,912,693.72 27,831,550.91 25,346,412.22 20,853,508.97
Minority shareholders’ gains and losses 2,765,234.82 3,500,946.68
VI. Earnings per share --
(I) basic earnings per share 0.09 0.07
(II) diluted earnings per share 0.09 0.07
Ⅶ. Other comprehensive income
Ⅷ. Total comprehensive income 32,677,928.54 27,831,550.91 28,847,358.90 20,853,508.97
Total comprehensive income attributable
29,912,693.72 27,831,550.91 25,346,412.22 20,853,508.97
to parent company
Total comprehensive income attributable
2,765,234.82 3,500,946.68
to minority shareholders
7
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January-September, 2013 Unit: RMB
January-September, 2013 January-September, 2012
Items
Consolidation Parent Company Consolidation Parent Company
I. Total sales 1,188,868,055.47 708,210,225.92 1,209,113,245.76 709,035,747.07
Including: Operating income 1,188,868,055.47 708,210,225.92 1,209,113,245.76 709,035,747.07
II. Total operating cost 1,156,146,737.71 693,919,583.96 1,192,268,174.06 711,657,511.97
Including: Operating cost 924,224,474.07 563,938,348.65 963,602,691.90 586,391,382.21
Taxes and associate charges 10,226,702.18 4,322,501.89 8,745,504.77 4,313,340.57
Selling and distribution expenses 78,397,576.46 47,055,067.16 73,956,008.24 38,249,943.73
Administrative expenses 134,317,920.02 77,451,911.80 133,457,517.58 78,479,482.27
Financial expense -4,118,097.70 -6,185,734.56 -2,530,420.62 -3,339,713.45
Impairment loss 13,098,162.68 7,337,489.02 15,036,872.19 7,563,076.64
Add: gain from change in fair value
Gain/(loss) from investment 69,808,111.40 76,861,316.51 81,213,814.63 87,751,034.68
Including: income form investment on
69,308,111.40 69,308,111.40 81,187,812.64 81,187,812.64
affiliated enterprise and jointly enterprise
Foreign exchange difference
III. Operating profit 102,529,429.16 91,151,958.47 98,058,886.33 85,129,269.78
Add: non-business income 6,245,247.78 5,183,510.63 7,417,235.79 5,715,272.56
Less: non-business expense 304,051.68 28,858.22 404,694.57 103,786.42
Including: loss from non-current asset
271,671.77 28,858.22 335,694.94 103,786.42
disposal
IV. Total profit 108,470,625.26 96,306,610.88 105,071,427.55 90,740,755.92
Less: Income tax 8,707,677.30 5,186,418.02 7,399,993.84 4,786,693.83
V. Net profit 99,762,947.96 91,120,192.86 97,671,433.71 85,954,062.09
Net profit attributable to parent company 95,035,128.72 91,120,192.86 91,738,839.66 85,954,062.09
Minority shareholders’ gains and losses 4,727,819.24 5,932,594.05
VI. Earnings per share --
(I) basic earnings per share 0.27 0.26
(II) diluted earnings per share 0.27 0.26
Ⅶ. Other comprehensive income 9,000.00 9,000.00
Ⅷ. Total comprehensive income 99,771,947.96 91,129,192.86 97,671,433.71 85,954,062.09
Total comprehensive income attributable
95,044,128.72 91,129,192.86 91,738,839.66 85,954,062.09
to parent company
Total comprehensive income attributable
4,727,819.24 5,932,594.05
to minority shareholders
8
CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January -September , 2013 Unit: RMB
January -September, 2013 January -September, 2012
Items
Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating activities:
Cash received from selling commodities and
921,464,764.13 573,065,703.41 950,425,594.15 573,133,771.78
providing labor services
Write-back of tax received 724,117.82
Other cash received concerning operating activities 32,470,255.62 22,096,753.34 35,107,845.59 25,173,372.80
Subtotal of cash inflow arising from operating
954,659,137.57 595,162,456.75 985,533,439.74 598,307,144.58
activities
Cash paid for purchasing commodities and
555,235,904.88 363,690,521.31 658,065,727.01 434,717,129.02
receiving labor service
Cash paid to/for staff and workers 204,922,365.59 128,447,335.28 184,845,223.95 112,074,358.61
Taxes paid 86,882,944.73 47,134,080.75 100,322,278.01 60,855,674.64
Other cash paid concerning operating activities 99,012,258.27 50,265,848.20 92,866,863.35 40,956,338.74
Subtotal of cash outflow arising from
946,053,473.47 589,537,785.54 1,036,100,092.32 648,603,501.01
operating activities
Net cash flows arising from operating
8,605,664.10 5,624,671.21 -50,566,652.58 -50,296,356.43
activities
II. Cash flows arising from investing activities:
Cash received from recovering investment 500,365.79 500,365.79 579,183.60 579,183.60
Cash received from investment income 30,256,629.02 34,070,799.40 37,526,793.58 42,894,251.13
Net cash received from disposal of fixed, intangible
40,266,830.00 40,000,000.00 47,186.00
and other long-term assets
Net cash received from disposal of subsidiaries and
other units
Other cash received concerning investing activities
Subtotal of cash inflow from investing activities 71,023,824.81 74,571,165.19 38,153,163.18 43,473,434.73
Cash paid for purchasing fixed, intangible and other
38,166,150.00 30,726,287.10 36,765,639.08 24,623,234.76
long-term assets
Cash paid for investment 44,810,220.00 44,810,220.00
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 38,166,150.00 30,726,287.10 81,575,859.08 69,433,454.76
Net cash flows arising from investing activities 32,857,674.81 43,844,878.09 -43,422,695.90 -25,960,020.03
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 37,000,000.00 4,000,000.00
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 37,000,000.00 4,000,000.00
Cash paid for settling debts 27,000,000.00 7,500,000.00
Cash paid for dividend and profit distributing or
56,662,639.55 52,502,246.25 61,742,138.78 52,502,246.25
interest paying
Other cash paid concerning financing activities 85,757.44
Subtotal of cash outflow from financing activities 83,662,639.55 52,502,246.25 69,327,896.22 52,502,246.25
Net cash flows arising from financing activities -46,662,639.55 -52,502,246.25 -65,327,896.22 -52,502,246.25
IV. Influence on cash due to fluctuation in exchange
-31,873.03 -40.29 4,300.83 70.81
rate
V. Net increase of cash and cash equivalents -5,231,173.67 -3,032,737.24 -159,312,943.87 -128,758,551.90
Add: Balance of cash and cash equivalents at the
525,818,735.46 437,725,268.74 681,077,489.30 585,557,597.61
period -begin
VI. Balance of cash and cash equivalents at the
520,587,561.79 434,692,531.50 521,764,545.43 456,799,045.71
period?end
9
