DALIAN REFRIGERATION CO., LTD.
QUARTERLY REPORT FOR FIRST QUARTER, 2014
§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. Ji Zhijian, Financial Majordomo Mrs.
Rong Yan, and the head of Accounting Department Mrs. Mao Chunhua hereby confirm that the
financial report of the quarterly report is true and complete.
1.4 This report is written respectively in Chinese and in English. In the event of any discrepancy
between the two above-mentioned versions, the Chinese version shall prevail.
§2 Company Profile
2.1 Major accounting data and financial indexes
Increase/decrease over
January-March, January-March,
the same period of last
2014 2013
year(%)
Total operating income 374,282,883.67 398,118,579.67 -5.99%
Net profit attributable to
20,642,828.05 21,179,181.50 -2.53%
shareholders of listed companies
Net profit attributable to
shareholders of listed companies
20,709,697.13 21,197,035.46 -2.30%
after deducting non-recurring
gains/losses
Net cash generated from operating
-52,200,052.13 -34,794,401.97 -50.03%
activities
Basic earnings per share 0.06 0.06 0.00%
Diluted earnings per share 0.06 0.06 0.00%
Decrease 0.08 percen
Return on equity 1.08% 1.16%
tage points
December 31, Increase/decrease over
March 31, 2014
2013 the end of last year(%)
Total assets 2,986,686,134.60 2,967,390,234.89 0.65%
Owner’s equity attributable to
1,927,646,018.51 1,907,018,190.46 1.08%
shareholders of listed companies
1
Amount from beginning of year to the end of
Item of non-recurring gains and losses
report period
Disposal gains and losses of non-current asset -38,560.94
Non-operating income and expense, net -49,294.23
Income tax effect -22,926.20
Minority shareholders’ gains and losses 1,940.11
Total -66,869.08
2.2 Total number and particulars of the shareholders by the end of the report period
Total shareholders at the end of report period 36,675
Particulars about shares held by the top ten negotiable shareholders not subject to conditional sales
Name of shareholder EOY (shares) Type
Dalian Bingshan Group Co., Ltd. 57,641,762 A
Sanyo Electric Co., Ltd. 35,001,500 B
Penghua Chinese 50 Open-end Securities Investment
6,799,927 A
Fund
Zhongrong International Trust Co., Ltd.－Huixin No. 1 5,975,811 A
National Social Security Fund Combination 404 4,599,985 A
Penghua Dynamic Growth Hybrid Securities Investment
4,143,401 A
Fund
Zhongrong International Trust Co., Ltd.－Huixin No. 2 3,830,430 A
BOCI SECURITIES LIMITED 3,270,654 B
Northeast Securities Co., Ltd. 2,280,000 A
Jiang Youchang 1,999,575 A
§3 Important Matters
3.1 Major changes in main financial items and indexes, and description of the cause
√ Applicable □ Inapplicable
1. The notes receivable remarkably increased in comparison with the beginning of the year, mainly
due to increase of the cargo account with notes receivable from customers.
2. The amount of advances remarkably increased in comparison with the beginning of the year,
mainly due to the advances for purchase of the equipment and for the project.
3. The interest receivable remarkably increased in comparison with the beginning of the year,
mainly due to the interest of new term-deposit in the reporting period.
4. Other current assets remarkably increased in comparison with the beginning of the year, mainly
due to the amortization of premium.
5. The wages & welfarism payable to employees remarkably decreased in comparison with the
beginning of year, mainly due to that the provision for wages & welfarism payable to employees
allotted at the end of the previous period was paid in this period.
6. Sales expenses remarkably increased, mainly due to the growth of remuneration and freight.
7. The financial expenses remarkably decreased, mainly due to increase of the term deposit with
2
more interest revenue.
8. The assets impairment loss remarkably increased, mainly due to increase of the receivable
accounts and increase of the provision for bad debits in the same period.
9. Income tax remarkably declined, mainly due to taxable income tax decreased and
corresponding current taxes down.
3.2 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.
3.3 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
3.4 Table of investigation, communication, interview received
Topic in
Type of
Reception Reception discussion and
Reception time received Received persons
location form provided
persons
information
Company’s Field Researcher of China Merchant
Jan. 3, 2014 Institution
office investigation Fund Management
Company’s Field
Jan. 15, 2014 Institution Researcher of Penghua Fund
office investigation
Company’s Field Researcher of Guotai Junan
Feb. 13, 2014 Institution
office investigation Securities
Researcher of Fuhua Securities
Company’s
Feb. 18, 2014 By telephone Institution Investment Trust Co., Ltd.;
office
researcher of China Securities Information
Researcher from BOCI Securities, about the
China Galaxy Securities, Guodu fundamentals of
Securities, China Life Insurance the Company
Company’s Field
Feb. 20, 2014 Institution Assets, Rongtong Fund, Lord
office investigation
Abbett China Assets Management
and China Post & Capital Fund
Management
Company’s Field
Feb. 28, 2014 Institution Researcher of Bohai Securities
office investigation
Company’s Field
Mar. 20, 2014 Institution Researcher of CICC
office investigation
§4 Financial Report (attached)
Not audited.
Board of Directors of Dalian Refrigeration Co., Ltd.
April 22, 2014
3
BALANCE SHEET
Prepared by Dalian Refrigeration Co., Ltd. March 31, 2014 Unit: RMB
March 31, 2014 Dec.31, 2013
Assets Consolidation Parent Company Consolidation Parent Company
Current Assets:
Monetary funds 463,925,778.94 381,652,840.13 512,903,713.13 434,747,569.29
Transaction financial asset
Notes receivable 62,092,172.10 39,201,307.94 39,827,031.77 20,694,679.80
Account receivable 430,413,421.39 207,078,284.10 369,712,746.70 170,582,156.81
Account paid in advance 41,246,158.19 14,457,665.88 26,031,386.32 6,125,477.96
Interest receivable 5,464,593.67 5,464,593.67 3,603,594.85 3,603,594.85
Dividend receivable 33,450.00 2,550,000.00
Other account receivable 29,787,643.51 15,672,245.26 24,514,740.07 12,822,775.66
Inventories 288,214,246.58 160,426,361.44 325,531,007.41 173,198,452.67
Non-current assets due within 1
year
Other current assets 1,828,237.44 1,828,237.44 995,599.80 922,487.82
Total current assets 1,322,972,251.82 825,781,535.86 1,303,153,270.05 825,247,194.86
Non-current assets:
Available for sale financial assets
Long-term equity investment 1,022,647,187.82 1,132,224,416.74 1,021,946,998.64 1,131,524,227.56
Investing property
Fixed asset 387,591,868.15 213,640,556.17 395,266,143.70 218,716,664.94
Project in construction 73,710,946.53 69,077,530.00 68,462,823.08 65,051,019.19
Engineering material
Fixed asset disposal
Intangible assets 155,988,401.88 90,776,686.17 155,190,230.51 89,590,975.25
Development expense
Goodwill
Long-term expense to be
4,214,358.70 3,865,206.36 3,901,749.71 3,548,214.70
apportioned
Deferred tax assets 19,561,119.70 11,382,084.96 19,469,019.20 11,512,233.28
Other non-current assets
Total non-current assets 1,663,713,882.78 1,520,966,480.40 1,664,236,964.84 1,519,943,334.92
Total assets 2,986,686,134.60 2,346,748,016.26 2,967,390,234.89 2,345,190,529.78
4
BALANCE SHEET (CONTINUED)
March 31, 2014 Dec.31, 2013
Liabilities and shareholders’ equity
Consolidation Parent Company Consolidation Parent Company
Current liabilities:
Short-term borrowings 40,000,000.00 37,500,000.00
Notes payable 89,002,835.59 54,633,169.31 80,293,515.17 55,821,881.28
Account payable 501,440,912.45 292,071,155.34 464,863,265.01 265,908,099.58
Account received in advance 161,186,886.36 92,149,650.97 177,238,388.99 107,267,861.73
Employee’s compensation payable 30,889,237.42 2,514,910.64 53,580,031.02 19,207,236.71
Tax payable 23,459,817.60 12,750,214.05 22,497,530.86 13,071,583.87
Dividend payable 1,483,156.00 533,156.00 2,053,911.36 533,156.00
Other account payable 39,776,896.60 41,446,875.53 51,929,364.03 51,184,849.13
Non-current liabilities due within 1
year
Other current liabilities 1,274,325.75 438,825.75 1,699,101.00 585,101.00
Total current liabilities 888,514,067.77 496,537,957.59 891,655,107.44 513,579,769.30
Non-current liabilities:
Long-term borrowings
Provisions for contingent liabilities
Deferred tax liabilities
Other non-current liabilities 66,627,339.60 19,839,339.60 66,627,339.60 19,839,339.60
Total non-current liabilities 66,627,339.60 19,839,339.60 66,627,339.60 19,839,339.60
Total liabilities 955,141,407.37 516,377,297.19 958,282,447.04 533,419,108.90
Owner’s equity
Share capital 350,014,975.00 350,014,975.00 350,014,975.00 350,014,975.00
Capital surplus 584,846,283.21 583,617,355.59 584,861,283.21 583,632,355.59
Less: Treasury Stock
Reserved fund 505,533,065.25 505,533,065.25 505,533,065.25 505,533,065.25
General risk provision
Retained earnings 487,251,695.05 391,205,323.23 466,608,867.00 372,591,025.04
Foreign exchange difference
Total owners' equity attributable to
1,927,646,018.51 1,830,370,719.07 1,907,018,190.46 1,811,771,420.88
holding company
Minority interest 103,898,708.72 102,089,597.39
Total owner’s equity 2,031,544,727.23 1,830,370,719.07 2,009,107,787.85 1,811,771,420.88
Total liabilities and owner’s equity 2,986,686,134.60 2,346,748,016.26 2,967,390,234.89 2,345,190,529.78
5
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January-March, 2014 Unit: RMB
January-March, 2014 January-March, 2013
Items
Consolidation Parent Company Consolidation Parent Company
I. Total sales 374,282,883.67 217,115,363.87 398,118,579.67 239,570,471.25
Including: Operating income 374,282,883.67 217,115,363.87 398,118,579.67 239,570,471.25
II. Total operating cost 366,352,721.55 213,451,817.74 385,527,670.24 230,710,083.95
Including: Operating cost 298,175,021.24 179,986,409.09 326,177,119.51 200,659,900.31
Taxes and associate charges 2,769,660.58 881,268.98 2,614,394.04 1,173,118.05
Selling and distribution expenses 18,790,788.18 9,028,567.46 14,354,008.94 4,934,168.47
Administrative expenses 47,081,482.83 26,315,173.50 42,113,334.77 25,224,485.73
Financial expense -2,022,694.73 -2,759,601.29 -602,206.75 -1,281,588.61
Impairment loss 1,558,463.45 871,019.73
Add: gain from change in fair value
Gain/(loss) from investment 15,965,189.18 15,965,189.18 12,406,247.37 12,406,247.37
Including: income form investment on
affiliated enterprise and jointly 15,033,372.77 15,033,372.77 11,906,247.37 11,906,247.37
enterprise
Foreign exchange difference
III. Operating profit 23,895,351.30 19,628,735.31 24,997,156.80 21,266,634.67
Add: non-business income 436,805.42 146,275.25 773,115.70 555,619.28
Less: non-business expense 114,885.34 104,144.94 81,808.22
Including: loss from non-current asset
54,520.94 54,144.94 55,855.11
disposal
IV. Total profit 24,217,271.38 19,670,865.62 25,688,464.28 21,822,253.95
Less: Income tax 1,765,332.00 1,056,567.43 2,893,416.37 2,354,001.65
V. Net profit 22,451,939.38 18,614,298.19 22,795,047.91 19,468,252.30
Net profit attributable to parent
20,642,828.05 18,614,298.19 21,179,181.50 19,468,252.30
company
Minority shareholders’ gains and losses 1,809,111.33 1,615,866.41
VI. Earnings per share -- --
(I) basic earnings per share 0.06 0.06
(II) diluted earnings per share 0.06 0.06
Ⅶ. Other comprehensive income -11,250.00 -11,250.00 0.00
Ⅷ. Total comprehensive income 22,440,689.38 18,603,048.19 22,795,047.91 19,468,252.30
Total comprehensive income
20,631,578.05 18,603,048.19 21,179,181.50 19,468,252.30
attributable to parent company
Total comprehensive income
1,809,111.33 1,615,866.41
attributable to minority shareholders
6
CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January-March, 2014 Unit: RMB
January-March, 2014 January-March, 2013
Items Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating activities:
Cash received from selling commodities and
258,168,491.59 129,517,068.78 272,914,240.85 153,484,997.42
providing labor services
Write-back of tax received
Other cash received concerning operating
10,317,082.95 7,064,206.98 10,078,066.15 6,168,726.30
activities
Subtotal of cash inflow arising from
268,485,574.54 136,581,275.76 282,992,307.00 159,653,723.72
operating activities
Cash paid for purchasing commodities and
166,004,472.76 105,195,308.57 174,906,276.30 96,807,140.01
receiving labor service
Cash paid to/for staff and workers 95,676,251.19 61,112,064.90 92,190,406.19 60,478,790.78
Taxes paid 25,901,701.92 10,673,352.23 18,754,977.97 9,616,590.45
Other cash paid concerning operating activities 33,103,200.80 18,348,465.16 31,935,048.51 14,531,686.15
Subtotal of cash outflow arising from
320,685,626.67 195,329,190.86 317,786,708.97 181,434,207.39
operating activities
Net cash flows arising from operating
-52,200,052.13 -58,747,915.10 -34,794,401.97 -21,780,483.67
activities
II. Cash flows arising from investing activities:
Cash received from recovering investment 15,000,000.00 15,000,000.00
Cash received from investment income 283,450.00 250,000.00 500,000.00 500,000.00
Net cash received from disposal of fixed,
330.00
intangible and other long-term assets
Other cash received concerning investing
activities
Subtotal of cash inflow from investing
15,283,450.00 15,250,000.00 500,330.00 500,000.00
activities
Cash paid for purchasing fixed, intangible and
8,032,238.93 6,814,611.62 3,859,100.28 787,507.00
other long-term assets
Cash paid for investment
Other cash paid concerning investing activities
Subtotal of cash outflow from investing
8,032,238.93 6,814,611.62 3,859,100.28 787,507.00
activities
Net cash flows arising from investing
7,251,211.07 8,435,388.38 -3,358,770.28 -287,507.00
activities
III. Cash flows arising from financing
activities
Cash received from absorbing investment
Cash received from loans 7,400,000.00 12,300,000.00
7
Other cash received concerning financing
activities
Subtotal of cash inflow from financing
7,400,000.00 0.00 12,300,000.00 0.00
activities
Cash paid for settling debts 2,800,000.00 4,500,000.00
Cash paid for dividend and profit distributing
2,356,211.54 662,416.67
or interest paying
Other cash paid concerning financing activities
Subtotal of cash outflow from financing
5,156,211.54 0.00 5,162,416.67 0.00
activities
Net cash flows arising from financing
2,243,788.46 0.00 7,137,583.33 0.00
activities
IV. Influence on cash due to fluctuation in
4,381.10 97.56 -49,023.80 -29.33
exchange rate
V. Net increase of cash and cash equivalents -42,700,671.50 -50,312,429.16 -31,064,612.72 -22,068,020.00
Add: Balance of cash and cash equivalents at
502,339,160.35 431,494,649.19 525,818,735.46 437,725,268.74
the period -begin
VI. Balance of cash and cash equivalents at the
459,638,488.85 381,182,220.03 494,754,122.74 415,657,248.74
period–end
8
