Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
Dalian Refrigeration Co., Ltd.
2014 Semiannual Report
August, 2014
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Dalian Refrigeration Co., Ltd. 2014 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. Ji Zhijian,
Financial Majordomo Mrs. Rong Yan, and the head of Accounting
Department Mrs. Mao Chunhua 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.
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Dalian Refrigeration Co., Ltd. 2014 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 ............................... 6
Section 4 Board of Directors' Report.................................................................................... 8
Section 5 Important Issues ................................................................................................. 14
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...................................................................... 68
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Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
Definitions
Defined item Stands for Meaning
Reporting period Stands for From Jan. 1, 2014 to Jun. 30, 2014
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, that was renamed as Panasonic Cold Chain (Dalian) Co., Ltd.
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.
Dalian Fuji-Bingshan Vending Machine Co., Ltd., one of the mutual
Dalian Fuji-Bingshan Stands for shareholding companies of this Company, where the Company holds
49% of its shares.
Keihin Grand-Ocean Cooling & Heating Industry (Dalian) Co., Ltd.,
Keihin Grand-Ocean Stands for one of the mutual shareholding companies with this Company, where
the Company holds 20% of its shares.
A high-efficiency and energy-saving full-hermetic compressor using
Scroll compressor Stands for
advanced technology.
The Product Data Management system, a technology managing all
information and processes relating to products to provide information
PDM Stands for management in the whole life of product and establish a parallel
collaborative environment for product design and manufacture within
the enterprise.
The Enterprise Resource Planning system, a enterprise information
management system oriented to manufacturing industries for the
ERP Stands for
integration management of material resources, financial resources and
information resources.
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Dalian Refrigeration Co., Ltd. 2014 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 Ji Zhijian
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 2013 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 2013 for
detail.
3. Registration variation
If registration varied in the report period
√ Applicable □ Not applicable
On Mar. 31, 2014, under examination and ratification of Dalian Industrial & Commercial Administration Bureau,
the legal representative of the company was changed from Xiao Yongqin to Ji Zhijian.
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Dalian Refrigeration Co., Ltd. 2014 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 774,912,253.19 792,124,153.23 -2.17%
Net profit attributable to shareholders of
66,477,633.28 65,122,435.00 2.08%
listed companies
Net profit belonging to the shareholders of
listed companies after the deduction of 63,794,559.91 62,382,278.37 2.26%
non-recurring profit and loss
Net cash flow from operating activities -2,594,386.46 3,743,258.07 -169.31%
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 yield 3.49% 3.61% Decrease 0.12 percentage points
End of this report Increase/decrease compared with
End of last year
period the end of last year
Total assets 3,013,042,235.25 2,967,390,234.89 1.54%
Owner's equity attributable to shareholders
1,920,859,529.62 1,907,018,190.46 0.73%
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.
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Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
III. Non-recurring profits and losses and their amounts
Item Amount
Disposal gains and losses of non-current asset 34,225.82
Government subsidies included in current profit or loss 3,511,809.67
Other non-operating revenue or expense 47,605.87
Influence on income tax 895,927.94
Influence on minority shareholders 14,640.05
Influence on net profit 2,683,073.37
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Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
Section 4 Board of Directors' Report
I. Summary
In the first half of 2014, based on the business philosophy “Leading Innovation, Creating Value”,
although being confronted with many challenges, the Company kept up its spirits, did real work, and laid
stress on integration of internal resources and innovation of business modes to strive for attainment of
the business targets, create value for customers and provide employees with more benefits.
In the report period, the Company made the sales income of 774.91 million yuan, accounting for 45.86%
of 1,690 million yuan of the Company’s annual business indicator for 2014, down by 2.17% from the
same period of last year; and the total amount of profit of 73.08 million yuan, accounting for 52.20% of
140 million yuan of the Company’s annual business indicator for 2014, up by 2.07% from the same
period of last year.
In the report period, with paying adequate attention to the conventional markets such as chemicals, beer,
dairy and further food processing, the Company focused on the cold chain logistics project to improve
the comprehensive solution for cold chain logistics, enhance the packaged technical supports to the
market, and actively adapt itself to market changes.
In the report period, the Company simplified the organizational structure and increased the operation
efficiency through the measures such as organizational restructuring and application of the new
operating mechanism. With optimization through the monthly operation promotion meeting and the
monthly performance assessment meeting, the Company's operation was digitized and transparentized
further, the work planning and predictability were improved, and the performance assessment was more
refined and strengthened.
In the report period, the Company actively promoted the informationization construction projects such as
PDM and ERP, and developed construction of the new performance lab orderly.
In the report period, Dalian Sanyo Compressor, as the leading scroll compressor manufacturer in China,
accelerated research and development of high-efficiency and low-cost models, and actively expanded
the sales area through building up the cost-related competence. Both the sales income and the net profit
were increased steadily on a year-on-year basis, and the ordered volume of refrigeration projects was
increased by about 30% on a year-on-year basis.
In the report period, Dalian Sanyo Cold Chain was renamed as Panasonic Cold Chain (Dalian) Co., Ltd.
It learnt and absorbed advanced technologies in the world through the platforms such as the 2014 Global
Retail Trade Fair in Germany. The production lines for supermarket showcases and beverage showcases
have been reconstructed and upgraded gradually from manual operation to automatic operation to ensure
delivering the best product to customers in the shortest lead time.
In the report period, Dalian Sanyo Refrigeration further optimized allocation of the resources for large-
size air conditioner business, and made great effort to marketing the two mainstay products of central air
conditioners and commercial air conditioners closely around the current hot topics, i. e. energy saving
and emission reduction, waste heat energy utilization and clean energy utilization.
In the report period, Dalian Fuji-Bingshan actively expanded the beverage producer market while
ensuring stable development of the service provider market. In addition to the market of Coco Cola and
Master Kong, the company successfully opened up the market of Nongfu spring and both the sales
income and the net profit were increased greatly on a year-on-year basis with the delivered vending
machines exceeding 50,000 sets accumulatively.
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Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
II. Analysis of main business
Main financial data variations as compared to the same period last year
Monetary unit : RMB Yuan
Increase or decrease
Same period of
Report period from the same Reason for variation
last year
period of last year
Operating revenue 774,912,253.19 792,124,153.23 -2.17%
Operating cost 609,950,440.82 620,886,543.64 -1.76%
Selling and distribution
48,901,400.51 46,381,343.35 5.43%
expenses
Administrative expenses 89,762,782.36 86,984,149.72 3.19%
Mainly due to increase of the
term deposit of the parent
Financial expenses -3,797,684.83 -2,085,116.83 -82.13% company and increase of the
interest revenue in the report
period.
Income tax 3,751,633.86 4,512,062.85 -16.85%
Research and development
38,870,289.68 40,025,740.11 -2.89%
investment
Mainly due to decrease of cash
received from sales of goods,
Net cash flow coming from and payment by the parent
-2,594,386.46 3,743,258.07 -169.31%
operating activities company for the tax of land
resource collection and
storage in the report period.
Mainly due to the receipt of 15
million yuan as the 50%
Net cash flow coming from equity transfer from Dalian
19,644,529.66 -2,697,502.61 828.25%
investment activities Jiale Vending Machine
Operation Co., Ltd. in the
report period.
Net cash flow coming from
-49,481,272.95 -45,600,783.85 -8.51%
fund-raising activities
Net increase in cash and cash
-32,417,927.28 -44,600,048.56 27.31%
equivalents
Increase or decrease
End of this
End of last year from the end of last Reason for variation
report period
year
Mainly due to increase of the
advances for equipment
Account paid in advance 35,233,321.64 26,031,386.32 35.35%
purchase and for projects in
the report period.
Mainly due to increase of the
Other account receivable 32,994,118.28 24,514,740.07 34.59% performance bond for bids in
the report period.
Mainly due to payment of the
Employee’s compensation payroll drawn having been
36,807,288.20 53,580,031.02 -31.30%
payable drawn at the end of previous
period in the report period.
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.
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Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
□ 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 774.91 million yuan, accounting for 45.86%
of 1,690 million yuan of the Company’s annual business indicator for 2014; and the total amount of
profit of 73.08 million yuan, accounting for 52.20% of 140 million yuan of the Company’s annual
business indicator for 2014.
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 operating
Gross profit 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
Decrease 0.13 per
and air- 762,976,180.18 598,638,940.68 21.53% -2.42% -2.27%
centage points
conditioning
By product
Refrigeration
and air- Decrease 0.13 per
762,976,180.18 598,638,940.68 21.53% -2.42% -2.27%
conditioning centage points
equipment
By region
Decrease1.41 per
Northeast China 591,705,529.73 480,596,639.82 18.77% 0.14% 1.90%
centage points
Decrease 1.56
East China 12,034,083.18 10,107,026.32 16.01% 14.02% 16.18%
percentage points
Increase 5.48
Central China 159,236,567.27 107,935,274.54 32.21% -11.76% -18.36%
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 report period, the Company's core competence above-mentioned was improved further.
V. Analysis of investments
1. External equity investments
(1) External investments
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Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
External investments
Investment in the report period (yuan) Investment in the same period of last year (yuan) Amount of variation
1,023,539,191.23 957,009,645.99 6.96%
Invested companies
Equity proportion of listed companies
Name of company Main business
to invested companies (%)
For details of the invested companies, see VII-10, 11 in the Explanatory Notes to Accounting Statements.
(2) Held financial companies' equity
Amount of Proportion of
Name of object Quantity Book value at Profit and loss
primary share equity in
held (Shares) held the end of period within period
investment that company
Guotai Junan
Secunities Co., 30,098,895.00 30,098,895 0.49% 30,098,895.00 1,504,944.75
Ltd
Total 30,098,895.00 30,098,895 - 30,098,895.00 1,504,944.75
2. Consigned financing, derivative investments and entrusted loans
□ Applicable √ Not applicable
The Company had no consigned financing, derivative investments, and entrusted loans in the report
period.
3. Analysis of major subsidiary companies and mutual shareholding companies
Monetary unit: thousand yuan
Registered Operating Net
Name Type Main product Total assets Net assets
capital revenue profit
Wuhan New World
Refrigeration Industries subsidiary Screw compressor RMB100,000 455,680 143,020 159,660 3,190
Co., Ltd.
Dalian Sanyo Compressor mutual Semi-hermetic, and
JPY6,200,000 2,079,595 1,015,744 1,255,326 92,040
Co., Ltd. shareholding scroll compressor
Commerial
Panasonic Cold-chain mutual
refrigeration JPY4,650,000 1,494,005 516,353 939,929 8,175
(Dalian) Co., Ltd. shareholding
equipment
Producing and
selling lithium
Dalian Sanyo Refrigeration mutual
bromide absorption JPY3,450,000 719,635 374,661 452,599 5,318
Co., Ltd. shareholding
type refrigerators and
multi-couple units
Keinin-Grand Ocean
mutual Air-conditioner for
Thermal Technology USD15,117.89 314,228 178,818 286,307 20,800
shareholding cars
(Dalian) Co., Ltd.
Producing and
Dalian Fuji-Bingshan Mutual
selling vending JPY1,800,000 297,178 177,679 194,187 20,008
Vending Machine Co., Ltd. shareholding
machines
VI. Estimation of the business performance for Jan.-Sept., 2014
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
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Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
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 2013
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 2014.
Special explanation of the cash dividend distribution policy
Did it comply with the Company's Articles of Association or
Yes
the resolutions at the general meeting?
Were the dividend distribution standard and proportion
Yes
defined and clear?
Were the decision-making procedure and system complete? Yes
Did the independent directors play their role conscientiously? Yes
Did the minority shareholders have opportunities to fully
express their opinions and appeals? Were their legal rights Yes
and interests protected fully?
Were the condition and procedure for adjustment or change
of the cash dividend distribution policy compliant and Yes
transparent?
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Dalian Refrigeration Co., Ltd. 2014 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
Company's Field
Jan. 3, 2014 Institution Wu Hao from China Merchants Fund.
office investigation
Company's Field Ji Hongtao, Huangxin, and Huang Weiqiao from Penghua Fund
Jan. 15, 2014 Institution
office investigation Management Co., Ltd.
Company's Field
Feb. 13, 2014 Institution Huang Kun from Guotai Junan Securities Research Institute
office investigation
Company's Shao Qihan from Fuh Hwa Securities Investment Trust Co. Ltd.;
Feb. 18, 2014 By telephone Institution
office Xu Bo from China Securities Co., Ltd.
Zhang Junping from BOC International (China) Limited; Lu Miao
from China Galaxy Investment Management Co., Ltd.; Cao
Yuning from Guodu Securities Co., Ltd.; Yu Li from China Life
Company's Field
Feb. 20, 2014 Institution Insurance Asset Management Co., Ltd.; Min Wenqiang from
office investigation
Rongtong Fund Management Co., Ltd.; Zhu Hong from Lord
Abbett China Asset Management Co., Ltd.; Luan Chao from
China Post & Capital Fund Management Co., Ltd.
Company's Field
Feb. 28, 2014 Institution Wang Xueying from Bohai Securities Co., Ltd.
office investigation
Company's Field Fan Haitao, and Li Mengyao from China International Capital
Mar. 20, 2014 Institution
office investigation Corporation Limited.
Xie Jiale, and Xiao Qunxi from Huatai Securities Co., Ltd.; Wang
Kai, Geng Dafeng, Dai Qunzhong, and Wu Yan from Northeast
Securities Co., Ltd.; Du Minjie from Xinhua Asset Management Company
Co., Ltd.; Gong Yuce from Wanlian Securities Brokerage Co., fundamentals
Ltd.; Huang Dong from China International Fund Management
having been
Co., Ltd.; Chen Zhaohong from Zhongshan Securities Co., Ltd.; publicly
Wang Youhong from Everbright Securities Co., Ltd.; Huang Ying disclosed
from Beijing Hi-tech Wealth Investment and Developing Co.,
Ltd.; Shu Hao, and Wu Fengshu from Hua An Fund Management
Company's Co., Ltd.; Wu Linan from Nanjing Securities Co., Ltd.; Zhou
Apr. 24, 2014 By telephone Institution
office Qiwei from China Southern Fund Management Co., Ltd.; Cheng
Jidong, and Zhang Jilong from Guosen Securities Co., Ltd.; Liu
Fan from Guotai Junan Securities Co., Ltd.; Liu Xiao from
Franklin Templeton Sealand Fund Management Co., Ltd.; Zhou
Zhipeng from Sinolink Securities Co., Ltd.; Zhao Jie from
Tianzhun Investment Co., Ltd; Wang Dong from Tianfeng
Securities Co., Ltd.; Yi Zhenxing from Jianghai Securities Co.,
Ltd.; Yang Lanchun from Pegasus Investment Management
(Shanghai) Co., Ltd.; Huang Guoliang from Pubang Investment
Co., Ltd.
Cai Peifen from Cathay Securities Investment Trust Co., Ltd.;
Company's
Apr. 29, 2014 By telephone Institution Yang Ailin from Bank of Communications International Trust
office
Co., Ltd.
Company's Field Hu Shen, and Zhong Hui from Cinda Securities Co., Ltd.; Zhang
May 13, 2014 Institution
office investigation Lei from Dongxing Securities Co., Ltd.
Company's Field
May 28, 2014 Institution Wan Fangfang from China Asset Management Co., Ltd.
office investigation
Company's Field
Jun. 20, 2014 Institution Li Jianxing from UG Investment Advisers Limited
office investigation
Company's Field Xu Jianhua from Orient Securities Co., Ltd.; Chen Wen from
Jun. 24, 2014 Institution
office investigation Industrial Securities Co., Ltd.
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Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
Section 5 Important Issues
I. Company governing
On Mar. 27, 2014, the Company convened its 1st extraordinary shareholders’ general meeting in 2014
and the 9th meeting of the 6th Board of Directors for by-election of the vacant director and chairman
positions.
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 184,380 thousand yuan, accounting for 40.98% of the budgeted amount for the
year 2014. This included 71,910 thousand yuan, accounting for 31.27% of the budgeted amount for the
year 2014, for purchasing supporting products for package projects from associated parties, and 112,470
thousand yuan, accounting for 51.13% of the budgeted amount for the year 2014, from selling
supporting parts and components to associated parties.
V. Important contracts and their performance
1. Trusting, contracting and leasing status
(1) Trusting status
□ Applicable √ Not applicable
There was no trusting status with the Company in the reporting period.
(2) Contracting status
□ Applicable √ Not applicable
There was no contracting status with the Company in the reporting period.
(3) Leasing status
□ Applicable √ Not applicable
There was no leasing status with the Company in the reporting period.
2. Guaranteeing status
□ Applicable √ Not applicable
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Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
There was no guaranteeing status with the Company in the reporting period.
3. Other important contracts
□ Applicable √ Not applicable
The Company had no other important contracts in the reporting period.
4. Other important transactions
□ Applicable √ Not applicable
The Company had no other important transactions in the reporting period.
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.
The management equity incentive of Dalian Refrigeration Co., Ltd. has not been implemented due to
immature objective conditions. In consideration of implementation of the above-mentioned
commitments of equity division reform, and in order to ensure that the management equity incentive of
Dalian Refrigeration Co., Ltd. is implemented finally, the Company will keep on locking 25% of the
shares (19,213,921 shares) held by Dalian Bingshan Group Co., Ltd. until the management equity
incentive of Dalian Refrigeration Co., Ltd. is implemented finally, and then apply for the relief from
trading limited conditions.
In May 2014, Dalian Bingshan Group Co., Ltd. re-regulated the above-mentioned commitments that
have not been fulfilled. After being re-regulated, the commitment stated: "the company will authorize
the Board of Directors of Dalian Refrigeration Co., Ltd. to develop and implement the management
equity incentive and restriction system according to the state's policies, laws and regulations before Jun.
30, 2016."
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Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
VII. Index to the information announcements for major matters in the report period
Announcement Newspaper name and page for Publishing Website and path
Item
No. publishing date for publishing
Special announcement of the
China Securities Daily A17, Hong
2014-001 commitments that have not been Feb. 14, 2014 http://www.cninfo.com.cn
Kong Commercial Daily A17
fulfilled
Announcement of the director's China Securities Daily B020, Hong
2014-002 Mar. 6, 2014 http://www.cninfo.com.cn
resignation Kong Commercial Daily A30
Announcement of the China Securities Daily B020, Hong
2014-003 Mar. 6, 2014 http://www.cninfo.com.cn
chairman's resignation Kong Commercial Daily A30
Announcement of the
China Securities Daily B027, Hong
2014-004 resolutions at the 8th meeting of Mar. 11, 2014 http://www.cninfo.com.cn
Kong Commercial Daily A21
the 6th Board of Directors
Notice on convening the 1st
China Securities Daily B027, Hong
2014-005 extraordinary general meeting in Mar. 11, 2014 http://www.cninfo.com.cn
Kong Commercial Daily A21
2014
Announcement of the
resolutions at the 1st China Securities Daily B016, Hong
2014-006 Mar. 28, 2014 http://www.cninfo.com.cn
extraordinary general meeting in Kong Commercial Daily A14
2014
Announcement of the
China Securities Daily B016, Hong
2014-007 resolutions at the 9th meeting of Mar. 28, 2014 http://www.cninfo.com.cn
Kong Commercial Daily A14
the 6th Board of Directors
Announcement of the monthly
China Securities Daily B016, Hong
2014-008 progress of the commitments Mar. 28, 2014 http://www.cninfo.com.cn
Kong Commercial Daily A14
that have not been fulfilled
China Securities Daily B057, Hong
2014-009 2013 Annual Report Summary Apr. 24, 2014 http://www.cninfo.com.cn
Kong Commercial Daily A22
Announcement of the
China Securities Daily B057, Hong
2014-010 resolutions at the 10th meeting Apr. 24, 2014 http://www.cninfo.com.cn
Kong Commercial Daily A22
of the 6th Board of Directors
Announcement of the
China Securities Daily B057, Hong
2014-011 resolutions at the 5th meeting of Apr. 24, 2014 http://www.cninfo.com.cn
Kong Commercial Daily A22
the 6th Board of Supervisors
Notice on convening the 2013 China Securities Daily B057, Hong
2014-012 Apr. 24, 2014 http://www.cninfo.com.cn
annual general meeting Kong Commercial Daily A22
Announcement of the 2014
China Securities Daily B057, Hong
2014-013 annual estimation of routine Apr. 24, 2014 http://www.cninfo.com.cn
Kong Commercial Daily A22
associated transactions
Quarterly Report for the First China Securities Daily B057, Hong
2014-014 Apr. 24, 2014 http://www.cninfo.com.cn
Quarter, 2014 Kong Commercial Daily A22
Announcement of the monthly
China Securities Daily B185, Hong
2014-015 progress of the commitments Apr. 29, 2014 http://www.cninfo.com.cn
Kong Commercial Daily A11
that have not been fulfilled
Announcement of the
China Securities Daily B039, Hong
2014-016 resolutions at the 2014 annual May 21, 2014 http://www.cninfo.com.cn
Kong Commercial Daily A20
general meeting
Announcement of the monthly
China Securities Daily B007, Hong
2014-017 progress of the commitments May 30, 2014 http://www.cninfo.com.cn
Kong Commercial Daily A10
that have not been fulfilled
Announcement of the 2013 China Securities Daily B022, Hong
2014-018 Jun. 18, 2014 http://www.cninfo.com.cn
annual dividend distribution Kong Commercial Daily A10
16
Dalian Refrigeration Co., Ltd. 2014 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 38,737
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
Penghua China 50 Open-End Securities Investment Fund Others 1.95% 6,799,927 0
Zhong Chuan Finance Co., Ltd. State-owned legal person 1.43% 5,000,084 0
SSF Portfolio 404 Others 1.32% 4,599,985 0
Penghua Motivity Growth Mixed Securities Investment Fund Others 1.19% 4,143,401 0
BOCI Securities Limited Overseas legal person 0.94% 3,270,654 0
Zhongrong International Trust Co., Ltd. - Huixin Securities
Others 0.74% 2,577,311 0
Investment Sheet 1 - Fund Trust
Jiang Youchang Domestic natural person 0.62% 2,139,575 0
Morgan Stanley Huaxin Advantage Growth Stock Fund Others 0.59% 2,066,300 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
Penghua China 50 Open-End Securities Investment Fund 6,799,927 RMB denominated ordinary shares
Zhong Chuan Finance Co., Ltd. 5,000,084 RMB denominated ordinary shares
SSF Portfolio 404 4,599,985 RMB denominated ordinary shares
Penghua Motivity Growth Mixed Securities Investment Fund 4,143,401 RMB denominated ordinary shares
BOCI Securities Limited 3,270,654 Domestically listed foreign shares
Zhongrong International Trust Co., Ltd. - Huixin Securities Investment Sheet 1 - Fund
2,577,311 RMB denominated ordinary shares
Trust
Jiang Youchang 2,139,575 RMB denominated ordinary shares
Morgan Stanley Huaxin Advantage Growth Stock Fund 2,066,300 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 shareholders Co., Ltd. among the above shareholders. Sanyo Electric Co., Ltd. holds 30% of Dalian
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
There were no changes in the controlling shareholder in the reporting period.
Variation in actual controllers in the report period
□ Applicable √ Not applicable
There were no changes in the actual controller in the reporting period.
17
Dalian Refrigeration Co., Ltd. 2014 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 2013 for detail.
II. Resignation, dismissal and election, engagement of company directors, supervisors,
senior management officers
Position
Name Type Date Reason
assumed
Resigned the position of chairman and director because of
Xiao Yongqin Chairman Resignation Mar. 27, 2014
job transfer.
Resigned the position of vice chairman and director because
Wang Jian Vice chairman Resignation Mar. 4, 2014
of job transfer.
Nagasawa Hideharu Director Resignation Mar. 4, 2014 Resigned the position of director because of job transfer.
Resigned the position of director but continued holding the
Rong Yan Director Resignation Mar. 4, 2014
position of financial majordomo because of job need.
Ji Zhijian Chairman Elected Mar. 27, 2014 Elected to fill the vacant position of chairman.
Xu Junrao Director Elected Mar. 27, 2014 Elected to fill the vacant position of director.
Kobayashi Noriaki Vice chairman Elected Mar. 27, 2014 Elected to fill the vacant position of vice chairman.
Kijima Tadatoshi Director Elected Mar. 27, 2014 Elected to fill the vacant position of director.
18
Dalian Refrigeration Co., Ltd. 2014 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 2014 Unit: RMB Yuan
Ending balance Beginning Balance
Items
Consolidation Parent company Consolidation Parent company
Current Assets:
Monetary funds 474,869,516.22 373,188,133.53 512,903,713.13 434,747,569.29
Transaction financial asset
Notes receivable 49,422,722.56 43,676,722.56 39,827,031.77 20,694,679.80
Account receivable 454,693,962.55 238,275,265.79 369,712,746.70 170,582,156.81
Account paid in advance 35,233,321.64 8,847,180.43 26,031,386.32 6,125,477.96
Dividend receivable 19,104,944.75 21,204,944.75 33,450.00 2,550,000.00
Interest receivable 5,197,899.97 5,197,899.97 3,603,594.85 3,603,594.85
Other account receivable 32,994,118.28 18,843,204.46 24,514,740.07 12,822,775.66
Financial assets purchased under
agreements to resell
Inventories 271,664,326.82 143,229,406.15 325,531,007.41 173,198,452.67
Non-current assets due within 1
year
Other current assets 2,080,367.89 2,080,367.89 995,599.80 922,487.82
Total current assets 1,345,261,180.68 854,543,125.53 1,303,153,270.05 825,247,194.86
Non-current assets:
Available for sale financial assets
Held to maturity investments
Long-term account receivable
Long-term equity investment 1,023,539,191.23 1,133,116,420.15 1,021,946,998.64 1,131,524,227.56
Investing property 0 0
Fixed asset 380,046,966.20 208,229,946.18 395,266,143.70 218,716,664.94
Project in construction 83,566,674.05 78,427,096.63 68,462,823.08 65,051,019.19
Engineering material
Fixed asset disposal
Bearer biological asset
Oil assets
Intangible assets 154,940,128.67 90,107,396.95 155,190,230.51 89,590,975.25
Development expense
Goodwill
Long-term expense to be
4,034,501.14 3,689,731.47 3,901,749.71 3,548,214.70
apportioned
Deferred tax assets 21,653,593.28 13,045,405.37 19,469,019.20 11,512,233.28
Other non-current assets
Total non-current assets 1,667,781,054.57 1,526,615,996.75 1,664,236,964.84 1,519,943,334.92
Total assets 3,013,042,235.25 2,381,159,122.28 2,967,390,234.89 2,345,190,529.78
19
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
CONSOLIDATED BALANCE SHEET (CONTINUED)
Prepared by Dalian Refrigeration Company Limited 30 June 2014 Unit: RMB Yuan
Ending balance Beginning Balance
Items
Consolidation Parent company Consolidation Parent company
Current liabilities:
Short-term borrowings 40,000,000.00 37,500,000.00
Transaction financial liabilities
Notes payable 89,961,947.63 59,303,921.26 80,293,515.17 55,821,881.28
Account payable 546,518,250.42 327,006,785.99 464,863,265.01 265,908,099.58
Account received in advance 138,358,628.94 81,755,978.94 177,238,388.99 107,267,861.73
Employee’s compensation payable 36,807,288.20 5,722,508.11 53,580,031.02 19,207,236.71
Tax payable 25,422,829.15 16,239,664.91 22,497,530.86 13,071,583.87
Interest payable
Dividend payable 1,433,156.00 533,156.00 2,053,911.36 533,156.00
Other account payable 45,602,647.85 50,431,522.94 51,929,364.03 51,184,849.13
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 924,954,298.69 541,286,088.65 891,655,107.44 513,579,769.30
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 63,192,354.35 16,404,354.35 66,627,339.60 19,839,339.60
Total non-current liabilities 63,192,354.35 16,404,354.35 66,627,339.60 19,839,339.60
Total liabilities 988,146,653.04 557,690,443.00 958,282,447.04 533,419,108.90
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 534,598,750.04 534,598,750.04 505,533,065.25 505,533,065.25
Retained earnings 451,399,521.37 355,237,598.65 466,608,867.00 372,591,025.04
Foreign exchange difference
Total owners' equity attributable to
1,920,859,529.62 1,823,468,679.28 1,907,018,190.46 1,811,771,420.88
holding company
Minority interest 104,036,052.59 102,089,597.39
Total owner’s equity 2,024,895,582.21 1,823,468,679.28 2,009,107,787.85 1,811,771,420.88
Total liabilities and owner’s equity 3,013,042,235.25 2,381,159,122.28 2,967,390,234.89 2,345,190,529.78
20
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
CONSOLIDATED INCOME STATEMENT
Prepared by Dalian Refrigeration Company Limited 2014.01-06 Unit: RMB Yuan
2014.01-06 2013.01-06
Items
Consolidation Parent company Consolidation Parent company
I. Total sales 774,912,253.19 470,970,219.97 792,124,153.23 485,112,570.51
Including: Operating income 774,912,253.19 470,970,219.97 792,124,153.23 485,112,570.51
II. Total operating cost 763,013,964.64 467,279,899.71 769,624,223.97 472,867,106.22
Including: Operating cost 609,950,440.82 386,947,532.84 620,886,543.64 389,637,758.36
Taxes and associate charges 6,469,418.81 3,082,292.41 5,765,226.20 2,578,772.79
Selling and distribution expenses 48,901,400.51 25,191,223.59 46,381,343.35 25,644,693.15
Administrative expenses 89,762,782.36 50,581,629.55 86,984,149.72 51,140,478.61
Financial expense -3,797,684.83 -5,176,060.33 -2,085,116.83 -3,472,085.71
Impairment loss 11,727,606.97 6,653,281.65 11,692,077.89 7,337,489.02
Add: gain from change in fair value
Gain/(loss) from investment 56,334,258.74 58,434,258.74 44,070,614.51 48,883,819.62
Including: income form investment
on affiliated enterprise and jointly 53,897,497.58 53,897,497.58 43,570,614.51 43,570,614.51
enterprise
Foreign exchange difference
III. Operating profit 68,232,547.29 62,124,579.00 66,570,543.77 61,129,283.91
Add: non-business income 5,049,995.17 4,294,350.32 5,290,608.96 4,515,135.81
Less: non-business expense 206,820.12 104,144.94 264,070.46
Including: loss from non-current
129,041.96 54,144.94 222,418.65
asset disposal
IV. Total profit 73,075,722.34 66,314,784.38 71,597,082.27 65,644,419.72
Less: Income tax 3,751,633.86 2,100,279.73 4,512,062.85 2,355,777.77
V. Net profit 69,324,088.48 64,214,504.65 67,085,019.42 63,288,641.95
Net profit attributable to parent
66,477,633.28 64,214,504.65 65,122,435.00 63,288,641.95
company
Minority shareholders’ gains and
2,846,455.20 1,962,584.42
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 -11,250.00 -11,250.00 9,000.00 9,000.00
Ⅷ. Total comprehensive income 69,312,838.48 64,203,254.65 67,094,019.42 63,297,641.95
Total comprehensive income
66,466,383.28 64,203,254.65 65,131,435.00 63,297,641.95
attributable to parent company
Total comprehensive income
2,846,455.20 1,962,584.42
attributable to minority shareholders
21
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
CONSOLIDATED CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Company Limited 2014.01-06 Unit: RMB Yuan
2014.01-06 2013.01-06
Items
Consolidation Parent company Consolidation Parent company
1. Cash flows arising from operating activities:
Cash received from sales of goods or rending of services 526,979,719.10 298,992,839.09 594,558,071.63 370,468,226.76
Refund of tax and fare received 38,095.13
Other cash received relating to operating activities 23,780,067.97 17,828,305.25 17,634,803.78 12,015,353.11
Sub-total of cash inflows 550,797,882.20 316,821,144.34 612,192,875.41 382,483,579.87
Cash paid for goods and services 281,731,145.25 189,500,108.92 345,476,050.50 224,399,653.37
Cash paid to and on behalf of employees 154,450,749.32 90,376,223.25 150,381,610.32 93,910,336.05
Tax and fare paid 64,623,975.30 34,997,096.61 53,234,848.20 27,441,204.38
Other cash paid relating to operating activities 52,586,398.79 35,942,188.52 59,357,108.32 30,305,961.30
Sub-total of cash outflows 553,392,268.66 350,815,617.30 608,449,617.34 376,057,155.10
Net cash flow from operating activities -2,594,386.46 -33,994,472.96 3,743,258.07 6,426,424.77
2. Cash Flows arising from Investment Activities:
Cash received from return of investments 15,000,000.00 15,000,000.00
Cash received from investment income 20,655,571.40 20,622,121.40 12,536,629.02 14,760,809.13
Net cash received from disposal of fixed assets,
93,105.00 266,830.00
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 35,748,676.40 35,622,121.40 12,803,459.02 14,760,809.13
Cash paid for acquiring fixed assets, intangible assets
16,104,146.74 9,309,283.62 15,500,961.63 10,335,038.00
and other long-term assets
Cash paid for acquiring investments
Other cash paid relating to investment activities
Sub-total of cash outflows 16,104,146.74 9,309,283.62 15,500,961.63 10,335,038.00
Net cash flow from investing activities 19,644,529.66 26,312,837.78 -2,697,502.61 4,425,771.13
3. Cash Flows arising from Financing Activities:
Cash received from absorbing investment
Cash received from borrowings 7,400,000.00 24,800,000.00
Other proceeds relating to financing activities
Sub-total of cash inflows 7,400,000.00 24,800,000.00
Cash paid for settling debt 3,900,000.00 17,000,000.00
Cash paid for distribution of dividends or profit or
52,941,288.95 50,624,979.28 53,400,783.85 50,524,334.61
reimbursing interest
Including: Cash paid for distribution of dividends or
profit to minority shareholders by shareholding 1,500,000.00 1,508,803.41
companies
Other cash payments relating to financing activities 39,984.00
Sub-total of cash outflows 56,881,272.95 50,624,979.28 70,400,783.85 50,524,334.61
Net cash flow from financing activities -49,481,272.95 -50,624,979.28 -45,600,783.85 -50,524,334.61
4. Influence on cash due to fluctuation in exchange rate 13,202.47 98.8 -45,020.17 -188.69
5. Increase in cash and cash equivalents -32,417,927.28 -58,306,515.66 -44,600,048.56 -39,672,327.40
Add : Cash and cash equivalents at year-begin 502,339,160.35 431,494,649.19 525,818,735.46 437,725,268.74
6.Cash and cash equivalents at the end of the year 469,921,233.07 373,188,133.53 481,218,686.90 398,052,941.34
22
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Dalian Refrigeration Company Limited 2014.01-06 Unit: RMB Yuan
2014.01-06
Owners’ equity attributable to parent company
Items Lessen: General Minority Total of
share capital Capital suplus treasury Surplus reserve risk Retained profits Others equity owners’ equity
stock reserve
I. balance at the end of last
350,014,975.00 584,861,283.21 505,533,065.25 466,608,867.00 102,089,597.39 2,009,107,787.85
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
350,014,975.00 584,861,283.21 505,533,065.25 466,608,867.00 102,089,597.39 2,009,107,787.85
this year
III. Increase/ decrease of
amount in this year (“-” -15,000.00 29,065,684.79 -15,209,345.63 1,946,455.20 15,787,794.36
means decrease)
(I) Net profit 66,477,633.28 2,846,455.20 69,324,088.48
(II) Other comprehensive
-15,000.00 -15,000.00
income
Subtotal of (I)and (II) -15,000.00 66,477,633.28 2,846,455.20 69,309,088.48
(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 29,065,684.79 -81,686,978.91 -900,000.00 -53,521,294.12
1. Withdrawing surplus
29,065,684.79 -29,065,684.79
public reserve
2. Withdrawing general risk
reserve
3. Distribution to all owners
-52,502,246.25 -900,000.00 -53,402,246.25
(shareholders)
4. Others -119,047.87 -119,047.87
(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
350,014,975.00 584,846,283.21 534,598,750.04 451,399,521.37 104,036,052.59 2,024,895,582.21
period
23
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
2013.01-12
Owners’ equity attributable to parent company
Items Lessen: General Minority Total of
share capital Capital surplus treasury Surplus reserve risk Retained profits Others equity owners’ equity
stock reserve
I. balance at the end of last 350,014,975.00 584,852,283.21 469,665,883.33 404,267,596.17 101,052,831.86 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 (“-” 9,000.00 35,867,181.92 62,341,270.83 1,036,765.53 99,254,218.28
means decrease)
(I) Net profit 153,006,057.13 5,955,568.94 158,961,626.07
(II) Other comprehensive
9,000.00 9,000.00
income
Subtotal of (I)and (II) 9,000.00 153,006,057.13 5,955,568.94 158,970,626.07
(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 35,867,181.92 -90,664,786.30 -4,918,803.41 -59,716,407.79
1. Withdrawing surplus 35,867,181.92 -35,867,181.92
public reserve
2. Withdrawing general risk
reserve
3. Distribution to all owners
-52,502,246.25 -4,918,803.41 -57,421,049.66
(shareholders)
4. Others -2,295,358.13 -2,295,358.13
(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
350,014,975.00 584,861,283.21 505,533,065.25 466,608,867.00 102,089,597.39 2,009,107,787.85
period
24
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Dalian Refrigeration Company Limited 2014.01-06 Unit: RMB Yuan
2014.01-06
Items Total of owners’
Lessen: treasury equity
share capital Capital surplus Surplus reserve Retained profits
stock
I. balance at the end of last
350,014,975.00 583,632,355.59 505,533,065.25 372,591,025.04 1,811,771,420.88
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. balance at the beginning of
350,014,975.00 583,632,355.59 505,533,065.25 372,591,025.04 1,811,771,420.88
this year
III. Increase/ decrease of
amount in this year (“-” -15,000.00 29,065,684.79 -17,353,426.39 11,697,258.40
means decrease)
(I) Net profit 64,214,504.65 64,214,504.65
(II) Other comprehensive
-15,000.00 -15,000.00
income
Subtotal of (I)and (II) -15,000.00 64,214,504.65 64,199,504.65
(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 29,065,684.79 -81,567,931.04 -52,502,246.25
1. Withdrawing surplus
29,065,684.79 -29,065,684.79
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
350,014,975.00 583,617,355.59 534,598,750.04 355,237,598.65 1,823,468,679.28
period
25
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
2013.01-12
Items Total of owners’
Lessen: treasury equity
share capital Capital surplus Surplus reserve Retained profits
stock
I. balance at the end of last
350,014,975.00 583,623,355.59 469,665,883.33 315,632,029.27 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 (“-” 9,000.00 35,867,181.92 56,958,995.77 92,835,177.69
means decrease)
(I) Net profit 145,328,423.94 145,328,423.94
(II) Other comprehensive
9,000.00 9,000.00
income
Subtotal of (I)and (II) 9,000.00 145,328,423.94 145,337,423.94
(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 35,867,181.92 -88,369,428.17 -52,502,246.25
1. Withdrawing surplus
35,867,181.92 -35,867,181.92
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
350,014,975.00 583,632,355.59 505,533,065.25 372,591,025.04 1,811,771,420.88
period
26
Dalian Refrigeration Co., Ltd. 2014 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, China.
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
A. 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, and 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.
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B. The Company adopts acquisition method for business combination not under same control. The acquirer shall recognize the
initial cost of combination under the following principles: a) When business combination is achieved through a single exchange
transaction, the cost of a business combination is the aggregate of the fair values, at the date of exchange, of assets given,
liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for control of the acquiree; b) For the
business combination involved more than one exchange transaction, the cost of the combination is the aggregate cost of the
individual transactions; c) The costs directly attributed to business combination are included in the cost of combination; d)
Where a business combination contract or agreement provides for a future event which may adjust the cost of combination, the
Company shall include the amount of the adjustment in the cost of the combination at the acquisition date if the future event
leading to the adjustment is probable and the amount of the adjustment can be measured reliably.
The acquirer shall, on the acquisition date, measure the assets given and liabilities incurred or assumed by an 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. a. 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;
b. 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, cash flow 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, cash flow 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,
cash flow 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
intra-group 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).
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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:
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:
①Where 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:
①The 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.
②The 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.
③The 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.
④Financial 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
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Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
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.
⑤Other 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
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. Receivable accounts
(1) Recognition and providing of bad debt provision on individual receivable account with large amount
Basis of recognition or standard
amount of individual account Top 5 of account receivables at year end
with large amount
Impairment test performed individually, bad debt provision will be
provided at the difference of expected cash flow lower than the book
Basis of bad debt provision
value. Without bad debt provision needed provided through individually
test, bad debt provision will be provided at age analysis method.
(2) Recognition and providing basis of bad debt reserves for group of receivable accounts with similar characteristics of credit
risks
①Basis of recognition and providing of bad debt provision
Basis of recognition for groups
Group of inner units Accounts receivable due from subsidiaries included in consolidated scope
Group by age analysis With similar characteristics of credit risks
Basis of bad debt provision
Group of inner units Individual identified method
Group by age analysis Age analysis method
②Age analysis
Ages Provision rates for Provision rates for
account receivables (%) other receivables (%)
Within 1 year, (included, same for the followings) 5% 5%
1-2 years 10% 10%
2-3 years 30% 30%
3-4 years 50% 50%
4-5 years 80% 80%
Over 5 years 100% 100%
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Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
(3)Other minor amount
For the receivables which are not individually significant, and which individually significant but are not provided provision
individually, in accordance with credit risk characteristics, the method of provision for bad debts is aging analysis method. The
assessment is made collectively where receivables share similar credit risk characteristics (including those having not been
individually assessed as impaired), based on their historical loss experiences, and adjusted by the observable figures reflecting
present economic conditions.
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:
①The 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.
②The long-term equity investment acquired by issuing equity securities, should take fair value of the issued equity securities as
initial investment cost.
③The 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 Company hasn’t joint control or material influence on invested party, or the long-term investment 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
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Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
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
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
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Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
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.
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;
33
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
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
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) Giving of asset using rights: Income from giving of assets is recognized when satisfying requirements: related economic
benefit flows in very possibly, income can be measured reliably.
1) Amount of interest income is calculated according to the time and actual interest rate of the monetary capital is used by other
party.
2) Income of using fee is calculated upon the charge period and calculation provided by the related contract or agreement.
(3)Construction contracts
When the result of the construction contract is able to be evaluated reliably at the balance sheet date, the income and cost of the
contract are recognized on completion percentage basis.
If the result of the construction contract is not able to be evaluated reliably, but the contract cost maybe recovered, the income is
recognized at the cost actually recovered, and the cost of the contract is recognized as contract expenses of the current period
when it is occurred.
1) Contract progress is recognized at the ratio of accumulative actual cost on the predicted complete cost.
2) In case the expected total cost is greater than the total income, the expected loss will be recognized as expense of the
current period. If the construction is in process, the balance is accounted as inventory impairment provision; if the contract is
not executed, the balance is accounted as expected liability.
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.
34
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
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 (EPS)
(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. Local education surtax is 2% of turnover tax payable.
6. 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 2014 are as follows:
35
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
Relationship with Applicable income
Names of the entities the Company tax rate
Dalian Bingshan Group Refrigeration Installation Co., Ltd. Subsidiary 25%
Dalian Bingshan Air-Conditioning Equipment Co. Ltd. Subsidiary 25%
Dalian Bingshan Ryosetsu Quick Freezing Equipment Co., Ltd. Subsidiary 25%
Dalian Bingshan Group Sales Co., Ltd. Subsidiary 25%
Dalian Bingshan Metal Processing Co. Ltd. Subsidiary 25%
Dalian Bingshan Guardian Automation Co., Ltd. Subsidiary 15%
Wuhan New World Refrigeration Industrial Co., Ltd.
Subsidiary 15%
(“WNWRI”)
Ⅳ. Business combination and consolidated financial statements
1. The principal activities of its subsidiaries are shown as below.
As of 30 June 2014 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’.
Subsidiaries acquired by establishment or investment
Shareh Voting
Catego Registere Business Registered Consoli Minority
No. Names Business scope Investment A olding right B
ries d address nature capital dated interest
（%） （%）
Dalian Bingshan Group Installation and
Refrigeration Installation RMB testing of RMB
1 Ltd. Dalian Installation 100 100 Yes
Co., Ltd. (“Installation 20,040,000 refrigeration 20,040,000
Company”) equipment
Dalian Bingshan Group Sale of
RMB RMB
2 Sales Co., Ltd. (“Sales Ltd. Dalian Trading refrigeration 90 90 Yes 4,386,890.00 28,174.83
18,000,000 16,200,000
Company”) equipment
Dalian Bingshan Air- Manufacture and
Conditioning Equipment JPY sale of accessories JPY
3 Ltd. Dalian Manufacturing 70 70 Yes 21,255,221.59
Co., Ltd. (“Bingshan 700,000,000 of refrigeration 490,000,000
Air-Conditioning”) equipment
Dalian Bingshan Metal Process and sale
USD USD
4 Processing Co., Ltd. Ltd. Dalian Manufacturing of metal punching 64.25 64.25 Yes 9,228,909.76
2,350,000 1,509,875
(“Metal Processing”) parts
Dalian Bingshan Research, design
Guardian Automation GBP and develop GBP
5 Ltd. Dalian Manufacturing 60 60 Yes 5,897,186.39
Co., Ltd. 210,000 refrigerator 126,000
automation parts
Manufacture and
Dalian Bingshan
USD sale of deep- USD
6 Ryosetsu Quick Freezing Ltd. Dalian Manufacturing 70 70 Yes 1,874,475.19 151,929.86
1,000,000 freezing 700,000
Equipment Co., Ltd.
equipment
Design,
manufacture, sale,
installation and
Wuhan New World
RMB test of screw type RMB
7 Refrigeration Industrial Ltd. Wuhan Manufacturing 51 51 Yes 61,393,369.66 1,010,356.62
100,000,000 refrigeration 17,980,400
Co., Ltd. (“WNWRI”)
compressor and
refrigeration
equipment
36
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
2. The principal activities of its subsidiaries’ subsidiaries are shown as below.
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’ subsidiaries during the period exceeding the proportion of minority shareholders from equity of parent company’.
Subsidiaries’ subsidiaries acquired by establishment or investment
Shareh Voting
Catego Registere Business Registered Consolidat Minority
No. Names Business scope Investment A olding right B
ries d address nature capital ed interest
（%） （%）
Wuhan New World Design, installation,
Refrigeration Air RMB test and repair of RMB
1 Ltd. Wuhan Installation 5 100 Yes
Conditioner Engineering 8,000,000 refrigeration 400,000
Co., Ltd. equipment
Ningbo Bingshan Installation and repair
Refrigeration Air RMB of refrigeration RMB
2 Ltd. Ningbo Installation 51 Yes 2,108,753.51 61,933.25
Conditioner Engineering 3,000,000 equipment 1,530,000
Co., Ltd.
37
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
Ⅴ. Notes to the consolidated financial statements
1 Monetary fund
Item 30-06-2014 31-12-2013
Cash on hand 27,536.49 99,455.92
Cash in bank 456,538,401.34 493,056,269.04
Others 18,303,578.39 19,747,988.17
Total 474,869,516.22 512,903,713.13
Particular about foreign monetary funds included in the cash in bank:
30-06-2014 31-12-2013
Foreign
Original RMB Original RMB
currency Exchange rate Exchange rate
currency equivalent currency equivalent
USD 1,970.01 6.1528 12,121.09 13,288.25 6.0969 81,017.14
JPY 320,506.00 0.060815 19,491.57 1,039,091.00 0.057771 60,029.33
EUR 5.60 8.3946 47.01 5.60 8.4189 47.15
GP 75,462.57 10.4978 792,190.97 27,396.57 10.0556 275,488.95
Total 823,850.64 416,582.57
As of Dec. 31, 2013, Dalian Bingshan Ryosetsu Quick Freezing Equipment Co., Ltd., one of the subsidiary companies of
the Company, had 1 million yuan of bank deposit frozen. Except it, there were no accounts having pledge, freezing or potential
recovery risks.
2 Notes receivable
Item 30-06-2014 31-12-2013
Bank acceptance 37,190,766.80 30,403,946.87
Trade acceptance 12,231,955.76 9,423,084.90
Total 49,422,722.56 39,827,031.77
(1)There is no pledged notes receivable at the end of report period.
(2)The amount of notes receivable due from related companies are RMB 12,331,955.76, 24.95% of total notes receivable. Please
refer to the Ⅵ 7 of the notes.
(3) The top five notes receivable endorsed but not matured:
Expiration
No. Company Issued date Amount Notes
date
1 COFCO Meat (Suqian) Co., Ltd. 2014.01.24 2014.07.21 2,313,337.95 Bank acceptance
2 Shandong Zhongxing Carbon Co., Ltd. 2014.04.02 2014.10.02 2,000,000.00 Bank acceptance
3 Tangshan Ganglu Iron & Steel Co., Ltd. 2014.05.05 2014.11.05 2,000,000.00 Bank acceptance
4 Hejian Yingzhou Chemical Co., Ltd. 2014.03.13 2014.09.12 1,748,500.00 Bank acceptance
5 Liaoning Huafeng Chemical Co., Ltd. 2014.04.24 2014.10.23 1,638,000.00 Bank acceptance
3 Dividends receivable
Current year Current year Any
Items 31-12-2013 30-06-2014 Reasons
addition disposal impairment
Dividends receivable, within 1 year
Included:
33,450.00 33,450.00
Wuhan Steel and Electricity Co., Ltd.
Not due to
Dalian Sanyo Refrigeration Co., Ltd. 3,200,000.00 1,600,000.00 1,600,000.00 No
payment date
Not due to
Dalian Sanyo Compressor Co., Ltd. 16,000,000.00 16,000,000.00 No
payment date
Not due to
Guotai Junan Securities Co., Ltd. 1,504,944.75 1,504,944.75 No
payment date
Total 33,450.00 20,704,944.75 1,633,450.00 19,104,944.75
38
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
4 Interest receivable
Items 31-12-2013 Current year addition Current year disposal 30-06-2014
Interest receivable, within 1 year
Included:
3,603,594.85 5,038,021.15 3,443,716.03 5,197,899.97
Term deposit interest
Total 3,603,594.85 5,038,021.15 3,443,716.03 5,197,899.97
5 Accounts receivable
(1) Classified by account nature
30-06-2014 31-12-2013
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
561,283,037.19 100 106,589,074.64 18.99 468,499,323.02 100 98,786,576.32 21.09
significant but with
high risk in groups
Other insignificant
items
Total 561,283,037.19 100 106,589,074.64 18.99 468,499,323.02 100 98,786,576.32 21.09
The aging of accounts receivable and related provisions for bad debts
30-06-2014 31-12-2013
Account ages Provision for bad Provision for bad
Amount Proportion (%) Amount Proportion (%)
debts debts
Within1 year 322,948,111.47 57.54 16,147,405.57 243,385,821.76 51.95 12,169,291.10
1 to 2 years 105,468,259.92 18.79 10,546,825.99 98,061,850.41 20.93 9,806,185.04
2 to 3 years 57,071,615.19 10.17 17,121,484.55 50,264,089.07 10.73 15,079,226.72
3 to 4 years 16,008,375.37 2.85 8,004,187.69 19,255,750.93 4.11 9,627,875.48
4 to 5 years 25,087,522.01 4.47 20,070,017.61 27,139,064.37 5.79 21,711,251.50
Over 5 years 34,699,153.23 6.18 34,699,153.23 30,392,746.48 6.49 30,392,746.48
Total 561,283,037.19 100 106,589,074.64 468,499,323.02 100 98,786,576.32
(2) The company had no receivable account written off before this report period, but was recovered in this period.
(3) During the report period, there is no receivable being recovered by debts reconstruction.
(4)The write-off of accounts receivable
Name of company The nature of accounts receivable Written off Reason Related party transaction
Clients (36) Sale of goods 3,063,426.02 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.
(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 (%)
Beijing Huashang Bingshan Serial
Affiliated 19,969,094.38 Less than 1 year 3.56
Refrigeration Equipment Co., Ltd.
Dalian Xinghai Bay Development &
Non-affiliated 11,242,693.00 4 to 5 years 2.00
Construction Management Center
Shenyang Yurun Agricultural Products
Non-affiliated 11,213,000.00 Less than 1 year 2.00
Global Purchasing Center
COFCO Meat (Suqian) Co., Ltd. Non-affiliated 10,136,575.85 1 to 2 years 1.81
FAW Foundry Co., Ltd. Non-affiliated 8,390,284.31 Less than 1 year 1.49
39
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
(7) The amount of accounts receivable due from related companies are RMB 34,015,659.89, 6.06% of total accounts receivable.
Please refer to the Ⅵ 7 of the notes.
(8) There is no accounts receivable being ended reorganization or being negotiated during the report period.
6 Other accounts receivable
(1) Classified by account nature
30-06-2014 31-12-2013
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 41,134,037.52 100 8,139,919.24 19.79 31,792,976.68 100 7,278,236.61 22.89
with high risk in groups
Other insignificant items
Total 41,134,037.52 100 8,139,919.24 19.79 31,792,976.68 100 7,278,236.61 22.89
The aging of other accounts receivable and related provisions for bad debts
30-06-2014 31-12-2013
Account age Provision for bad Provision for bad
Amount Proportion (%) Amount Proportion (%)
debts debts
Within1year 27,574,373.25 67.04 1,378,718.67 18,000,224.64 56.62 900,011.22
1 to 2 years 4,322,288.36 10.51 432,228.84 4,431,452.84 13.94 443,145.28
2 to 3 years 2,975,028.18 7.23 892,508.45 2,834,825.78 8.92 850,447.74
3 to 4 years 1,228,394.93 2.99 614,197.47 2,032,201.80 6.39 1,016,100.91
4 to 5 years 1,058,434.90 2.57 846,747.91 2,128,700.82 6.70 1,702,960.66
Over 5 years 3,975,517.90 9.66 3,975,517.90 2,365,570.80 7.43 2,365,570.80
Total 41,134,037.52 100 8,139,919.24 31,792,976.68 100 7,278,236.61
(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
Dalian Land Reserve Center Non-affiliated 10,000,000.00 Less than 1 year 24.31
Baicheng Longdan Dairy Co., Ltd. Non-affiliated 1,004,519.00 2-3 years 2.44
Tianjin Construction Team Communication Service Center Non-affiliated 1,000,000.00 Over 5 years 2.43
Wuhan Jinqun Refrigeration Equipment Installation Co., Ltd. Non-affiliated 736,110.00 1-2 years 1.79
Hebei Jinwei New Building Materials Co., Ltd. Hubei Branch Non-affiliated 653,800.00 2-3 years 1.59
(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 Accounts paid in advance
(1) The aging of accounts paid in advance
30-06-2014 31-12-2013
Account ages
Amount Proportion (%) Amount Proportion (%)
Within1 year 25,116,718.23 71.29 24,786,019.32 95.21
1 to 2 years 8,927,972.41 25.34 64,112.00 0.25
2 to 3 years 107,863.00 0.30 1,178,768.00 4.53
Over 3 years 1,080,768.00 3.07 2,487.00 0.01
Total 35,233,321.64 100 26,031,386.32 100
(2) The first five arrearage entities listed in the balance of accounts paid in advance
40
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
The relationship
Company Amount Age Reasons
with the Company
Binzhou Shanfu Refrigeration Engineering Prepayment for goods
Non-affiliated 3,918,000.00 Less than 1 year
Co., Ltd.
Dalian Tony Info. & Tech. Co., Ltd. Non-affiliated 2,499,000.00 Less than 1 year Prepayment for goods
Wuhan Jinqun Refrigeration Equipment Prepayment for goods
Non-affiliated 1,798,500.00 Less than 1 year
Installation Co., Ltd.
Dalian Mingxin Refrigerating & Heat Prepayment for goods
Non-affiliated 1,491,774.15 Less than 1 year
Preserving Materials Co., Ltd.
Liaoning Electric Power Supply Co., Ltd. Prepayment for goods
Non-affiliated 1,489,584.73 Less than 1 year
Dalian Branch
Total 11,196,858.88
(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) There is no amount of accounts paid in advance due from related companies during the report period.
8 Inventories
(1) Cost
30-06-2014 31-12-2013
Items
Provision for Provision for
Book balance impairment of Book value Book balance impairment of Book value
inventories inventories
Raw materials 51,756,874.40 8,125,074.35 43,631,800.05 47,474,131.66 8,311,074.35 39,163,057.31
Materials on Consignment
6,695,410.48 6,695,410.48 8,211,392.69 8,211,392.69
for further processing
Low-value consumptions 134,070.69 134,070.69 128,405.67 128,405.67
Work-in-progress 54,968,148.77 2,148,729.50 52,819,419.27 91,806,242.88 2,148,729.50 89,657,513.38
Self-manufactured semi-
38,497,502.24 4,024,041.73 34,473,460.51 33,279,512.91 4,024,041.73 29,255,471.18
finished products
Finished goods 114,919,257.38 3,291,858.85 111,627,398.53 135,195,482.98 3,291,858.85 131,903,624.13
Constructing projects 22,282,767.29 22,282,767.29 27,211,543.05 27,211,543.05
Total 289,254,031.25 17,589,704.43 271,664,326.82 343,306,711.84 17,775,704.43 325,531,007.41
(2) Provision for impairment of inventories
Current year
Current year disposal
Item 31-12-2013 30-06-2014
addition
Reversal Written-off
Finished goods 3,291,858.85 3,291,858.85
Raw materials 8,311,074.35 186,000.00 8,125,074.35
Work-in-progress 2,148,729.50 2,148,729.50
Self-manufactured semi-
finished products 4,024,041.73 4,024,041.73
Total 17,775,704.43 186,000.00 17,589,704.43
(3) Details of provision for impairment of inventories
Proportion of reversal of
Reasons for
Item The bases of provision for impairment of inventories provision for impairment of
reversal
inventories to closing balance
Finished goods The book balance is higher than recoverable amount.
Work-in-progress The book balance is higher than recoverable amount.
Self-manufactured semi-
finished products The book balance is higher than recoverable amount.
Raw materials The book balance is higher than recoverable amount.
41
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
9 Other current assets
Item 30-06-2014 31-12-2013
Prepaid income tax 73,111.98
Insurance premiums to be amortized 2,080,367.89 922,487.82
Total 2,080,367.89 995,599.80
10、Investment to Associates and Joint ventures
Registe Legal Shareh Voting 30-06-2014
Business Registered 30-06-2014 30-06-2014 Total Income of Net profit of
Name Categories red represent olding right Total net
No. nature capital Total assets Total liabilities 2014.01-06 2014.01-06
address person （%） （%） assets
ⅠAssociates
Dalian Bingshan
– P&A
Recreation Sino-foreign USD
16,491,413.67 9,064,910.33 7,426,503.34 7,446,769.63 478,196.58
1 Development joint venture Dalian Yang Bin Installation 250,000 50% 50%
Engineering Co.,
Ltd.
ⅡJoint venture
Dalian Bingshan
RMB
Engineering & Ltd 108,586,712.49 52,792,551.98 55,794,160.51 94,905,583.27 4,052,156.68
1 Dalian Fan Wen Trading 30,000,000 24% 24%
Trading Co., Ltd.
Dalian Sanyo
Sino-foreign Manufactu JPY
Refrigeration 719,635,460.19 344,974,230.56 374,661,229.63 452,599,249.63 5,318,421.82
2 joint venture Dalian Ji Zhijian ring 3,450,000,000 40% 40%
Co., Ltd.
Dalian Honjo
Sino-foreign Honjo Manufactu JPY
Chemical Co., 35,994,992.03 6,123,980.08 29,871,011.95 14,364,949.72 2,534,839.18
3 joint venture Dalian Yukinovi ring 260,000,000 30% 30%
Ltd.
Panasonic Cold-
Sino-foreign Manufactu JPY
chain (Dalian) 1,494,004,793.57 977,651,698.55 516,353,095.02 939,928,952.97 8,174,652.15
4 joint venture Dalian Ji Zhijian ring 4,650,000,000 40% 40%
Co., Ltd
Keinin-Grand
Ocean Thermal
Sino-foreign Manufactu USD
Technology 314,228,047.51 135,410,472.01 178,817,575.50 286,306,907.58 20,800,431.70
5 joint venture Dalian Takumi Ishii ring 15,117,890 20% 20%
(Dalian) Co.,
Ltd.
Dalian Sanyo
Sino-foreign Manufactu JPY 1,063,851,292. 1,015,744,019. 1,255,325,747.
Compressor Co., 2,079,595,311.25 92,039,692.56
6 joint venture Dalian Zhao Zihai ring 6,200,000,000 40% 40% 09 16 10
Ltd.
Dalian Sanyo
Meica Sino-foreign Manufactu JPY
101,488,951.55 21,562,782.47 79,926,169.08 64,105,520.36 2,069,021.09
7 Electronics Co., joint venture Dalian Wang Jian ring 400,000,000 30% 30%
Ltd.
Beijing
Huashang
Bingshan
Sino-foreign RMB
Refrigeration and 21,022,915.56 18,393,938.49 2,628,977.07 13,523,452.83 72,802.11
8 joint venture Beijing Yang Bin Trading 1,000,000 49% 49%
Air-conditioning
Machinery Co.,
Ltd.
Dalian Fuji
Bingshan
Sino-foreign Asahi Manufactu JPY
Vending 297,178,125.40 119,499,256.11 177,678,869.29 194,187,243.81 20,008,126.71
9 joint venture Dalian Hideehiko ring 1,800,000,000 49% 49%
Machine Co.,
Ltd.
Dalian Sanyo
High-Efficient Sino-foreign Manufactu RMB
116,511,857.32 27,369,600.10 89,142,257.22 62,793,770.84 1,026,999.17
10 Refrigeration joint venture Dalian Wang Jian ring 80,000,000 25% 25%
System Co., Ltd.
MHI Bingshan
Refrigeration Sino-foreign Manufactu RMB
46,944,942.96 248,859.31 46,696,083.65 -3,303,916.35
11 (Dalian) Co., joint venture Dalian Ji Zhijian ring 80,000,000 45% 45%
Ltd.
42
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
11、Long-term equity investments
Provision
for Cash
Shareh Voting
Calculatio Beginning olding right Provision for impairmen dividend of
Initial cost Changes Ending balance
No. Name n method balance impairment t of the the current
（%） （%） current period
period
Dalian Bingshan –
P&A Recreation
Equity
Development 1,034,675.00 3,474,153.38 215,188.46 3,689,341.84 50 50
1 method
Engineering Co.,
Ltd.
Dalian Jiale
Equity
Vending Machine 18,750,000.00 14,333,183.59 -14,333,183.59 50 50
2 method
Operation Co., Ltd.
Dalian Bingshan
Equity
Engineering & 1,200,000.00 13,138,080.92 252,517.60 13,390,598.52 24 24 720,000.00
3 method
Trading Co., Ltd.
Dalian Sanyo
Equity
Refrigeration Co., 85,416,929.20 150,937,123.13 -1,391,736.58 149,545,386.55 40 40 3,200,000.00
4 method
Ltd.
Dalian Honjo Equity
3,908,911.50 9,452,973.22 -537,296.75 8,915,676.47 30 30 1,252,121.40
5 Chemical Co., Ltd. method
Panasonic Cold-
Equity
chain (Dalian) 134,658,753.75 215,712,008.04 -4,991,728.01 210,720,280.03 40 40 8,000,000.00
6 method
Co., Ltd
Keinin-Grand
Ocean Thermal Equity
24,402,234.58 40,403,428.77 -4,639,913.66 35,763,515.11 20 20 8,800,000.00
7 Technology method
(Dalian) Co., Ltd.
Dalian Sanyo
Equity
Compressor Co., 176,953,841.88 385,481,730.63 17,870,606.86 403,352,337.49 40 40 16,000,000.00
8 method
Ltd
Dalian Sanyo
Equity
Meica Electronics 9,649,590.00 23,373,393.16 558,635.69 23,932,028.85 30 30
9 method
Co., Ltd.
MHI Bingshan
Equity
Refrigeration 22,500,000.00 22,500,000.00 -1,486,762.36 21,013,237.64 45 45
10 method
(Dalian) Co., Ltd.
Beijing Huashang
Bingshan
Refrigeration and Equity
490,000.00 1,175,056.73 35,673.03 1,210,729.76 49 49
11 Air-conditioning method
Machinery Co.,
Ltd.
Dalian Fuji
Equity
Bingshan Vending 66,416,364.00 77,258,663.86 9,803,982.09 87,062,645.95 49 49
12 method
Machine Co., Ltd.
Daliian Sanyo
High-Efficient Equity
20,000,000.00 22,028,814.51 236,209.81 22,265,024.32 25 25
13 Refrigeration method
System Co., Ltd.
Dalian Sanyo
Equity
Home Appliance 19,666,212.00 11,694,400.00 11,694,400.00 10.91 10.91 11,694,400.00
14 method
Co., Ltd.
Zibo Electric
Cost
Traction Machine 849,000.00 849,000.00 849,000.00 1.52 1.52 849,000.00
15 method
Group Co., Ltd.
Liaoning Mec Cost
1,020,000.00 1,020,000.00 1,020,000.00 3.57 3.57 250,000.00
16 Group Co., Ltd. method
Guotai Junan Cost
30,098,895.00 30,098,895.00 30,098,895.00 0.49 0.49 1,582,164.89 1,504,944.75
17 Securities Co., Ltd. method
Guotai Junan
Investment Cost
3,057,316.00 3,057,316.00 3,057,316.00 0.22 0.22 2,688,605.91
18 Management Co., method
Ltd.
Thermo King
Container
Cost
Temperature 11,207,806.00 11,207,806.00 11,207,806.00 17.8 17.8
19 method
Control (Suzhou)
Co., Ltd.
Liaoning
Cost
Enterprises United 105,000.00 105,000.00 105,000.00 4.2 4.2 105,000.00
20 method
Industry Company
Dalian Bingshan
Cost
Group Materials 250,000.00 250,000.00 250,000.00 5 5
21 method
Trading Co., Ltd.
Wuhan Steel and
Cost
Electricity Co., 1,315,142.50 1,315,142.50 1,315,142.50 0.056 0.056
22 method
Ltd.
632,950,671.41 1,038,866,169.44 1,592,192.59 1,040,458,362.03
Total 16,919,170.80 39,727,066.15
Note 1: On Oct. 22, 2013, the 6th meeting of the 6th Board of Directors of the Company adopted the resolution that the
Company and Fuji Motor Co., Ltd. transferred 50% of their respective shareholding in Dalian Jiale Vending Machine Operation
Co., Ltd. to the independent third party -- Shanghai Miyuan Beverage Co., Ltd., the base date for transfer was Jun. 30, 2013,
and the amount for the Company's transfer was 15 million yuan. In Jan. 2014, the Company received the said transfer amount
paid by Shanghai Miyuan Beverage Co., Ltd. and the transfer was completed.
43
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
12 Fixed assets
(1) Fixed assets details
Current year Current year
31-12-2013 30-06-2014
Item
addition disposal
1. Original value 913,961,088.84 3,271,705.69 4,837,322.31 912,395,472.22
Including: Buildings 324,921,042.20 303,500.00 325,224,542.20
Machinery 546,287,932.41 1,563,269.30 2,280,708.75 545,570,492.96
Vehicles 26,339,639.82 789,017.33 873,106.70 26,255,550.45
Other equipments 16,412,474.41 615,919.06 1,683,506.86 15,344,886.61
2. Accumulated depreciation 515,881,978.89 18,243,165.48 4,069,011.34 530,056,133.03
Including: Buildings 114,110,616.94 3,894,461.94 118,005,078.88
Machinery 374,910,428.66 12,702,173.32 2,144,789.83 385,467,812.15
Vehicles 14,176,230.80 1,109,798.65 732,970.67 14,553,058.780
Other Equipments 12,684,702.49 536,731.57 1,191,250.84 12,030,183.22
3.Net book value 398,079,109.95 382,339,339.19
Including: Buildings 210,810,425.26 207,219,463.32
Machinery 171,377,503.75 160,102,680.81
Vehicles 12,163,409.02 11,702,491.67
Other Equipments 3,727,771.92 3,314,703.39
4.Provision for impairment 2,812,966.25 2,292,372.99
Including: Buildings
Machinery 2,812,966.25 2,292,372.99
Vehicles
Other Equipments
5.Fixed assets net 395,266,143.70 380,046,966.20
Including: Buildings 210,810,425.26 207,219,463.32
Machinery 168,564,537.50 157,810,307.82
Vehicles 12,163,409.02 11,702,491.67
Other Equipments 3,727,771.92 3,314,703.39
(2) All the accumulated depreciation increased during the current period was depreciation of the current period.
(3) The original value of fixed assets RMB 1,470,867.17 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 40,000,000 from bank and mortgaged with its building
and land use rights.
(7) Fixed assets without owner’s certificates
Items Reason Expected time
The casting workshop was moved to a new factory building and office. Handling
Workshop of Dalian Bingshan Air-Conditioning Equipment Co. Ltd. Less some documents
Departments from debts reconstruction Less some documents
44
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
13 Construction in progress
Name of Current year Current year Percentage of
Budget 31-12-2013 30-06-2014 Sources of funds completion
projects addition decrease
Buildings 90,000,000.00 66,977,556.15 16,043,238.14 83,020,794.29 others 92%
Machinery 1,485,266.93 531,480.00 1,470,867.17 545,879.76 others
Total 68,462,823.08 16,574,718.14 1,470,867.17 83,566,674.05
(1) No interests capitalized during the current period.
(2) The amount of construction in progress RMB 1,470,867.17 was transferred to fixed assets.
14 Intangible assets
(1) Intangible assets details
Current year Current year
Item 31-12-2013 30-06-2014
addition disposal
1.Original cost 183,991,724.45 1,853,800.00 185,845,524.45
Land use rights 176,504,398.53 176,504,398.53
Non-patented technology 515,224.41 515,224.41
Others 6,972,101.51 1,853,800.00 8,825,901.51
2.Amortization 28,801,493.94 2,103,901.84 30,905,395.78
Land use rights 25,336,568.19 1,765,042.92 27,101,611.11
Non-patented technology 515,224.41 515,224.41
Others 2,949,701.34 338,858.92 3,288,560.26
3. Net book value 155,190,230.51 154,940,128.67
Land use rights 151,167,830.34 149,402,787.42
Non-patented technology
Others 4,022,400.17 5,537,341.25
4.Provision for impairment
Land use rights
Non-patented technology
Others
5.Net value 155,190,230.51 154,940,128.67
Land use rights 151,167,830.34 149,402,787.42
Non-patented technology
Others 4,022,400.17 5,537,341.25
(2) RMB 2,103,901.84 yuan of intangible assets was amortized in this period.
(3) Wuhan New World Refrigeration Industrial Co. Ltd. borrowed RMB 40,000,000 from bank and mortgaged with its building
and land use rights.
15 Long-term expense to be apportioned
Item Current year Current year
31-12-2013 30-06-2014
addition disposal
Employee dormitory use right 2,843,040.30 69,239.16 2,773,801.14
Decoration expenses 927,007.46 491,637.09 265,392.84 1,153,251.71
Inspection & Service expense 131,701.95 24,253.66 107,448.29
Total 3,901,749.71 491,637.09 358,885.66 4,034,501.14
16 Deferred tax assets
(1) Deferred tax assets conformed
Item 30-06-2014 31-12-2013
Provision for bad debts 16,711,801.35 14,350,578.95
Provision for obsolete inventory 4,368,698.69 4,415,198.69
Impairment provision of fixed assets 573,093.24 703,241.56
Total 21,653,593.28 19,469,019.20
45
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
(2) Deferred tax assets not conformed
Item 30-06-2014 31-12-2013
Provision for the impairment of long-
16,919,170.80 16,919,170.80
term equity investments
Provision for bad debts 40,813,556.82 39,739,180.37
Total 57,732,727.62 56,658,351.17
(3)Temporary differences
Items Temporary differences
Provision for impairment 96,860,940.50
Total 96,860,940.50
17 Provision for impairment
Current year
Current year
Items 31-12-2013 disposal 30-06-2014
addition
Reversal Written off
1.Bad debts provision 106,064,812.93 11,727,606.97 3,063,426.02 114,728,993.88
2.Provision for obsolete inventories 17,775,704.43 186,000.00 17,589,704.43
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 2,812,966.25 520,593.26 2,292,372.99
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
143,572,654.41 11,727,606.97 3,770,019.28 151,530,242.10
18 Short-term loans
Terms of borrowing 30-06-2014 31-12-2013
Credit loan
Mortgage loan 40,000,000.00 37,500,000.00
Total 40,000,000.00 37,500,000.00
(1) Wuhan New World Refrigeration Industrial Co. Ltd. borrowed short-term loan RMB 40,000,000 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.
19 Notes payable
Item 30-06-2014 31-12-2013
Bank acceptance notes 76,464,146.94 47,070,444.13
Trade acceptance notes 13,497,800.69 33,223,071.04
Total 89,961,947.63 80,293,515.17
(1) The amount of notes payable due within the next report period is RMB 89,961,947.63.
(2) The amount of notes payable due to related companies is RMB 19,635,005.39, 21.83% of total notes payable. Please refer to
the Ⅵ 7 of the notes.
46
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
20 Accounts payable
30-06-2014 31-12-2013
Ages
Amount Amount
Within1 year 484,263,733.67 413,250,580.87
1 to 2 years 36,815,897.35 25,101,084.59
2 to 3 years 8,642,632.89 10,862,165.41
3 to 4 years 6,498,145.38 10,007,609.12
4 to 5 years 5,329,763.93 1,145,059.67
Over 5 years 4,968,077.20 4,496,765.35
Total 546,518,250.42 464,863,265.01
(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) The amount of accounts payable due to related companies is RMB 30,979,340.39, 5.67% of total accounts payable. Please
refer to the Ⅵ 7 of the notes.
21 Accounts received in advance
30-06-2014 31-12-2013
Ages
Amount Amount
Within1 year 79,977,214.39 147,136,295.71
1 to 2 years 36,043,194.68 16,796,570.29
2 to 3 years 11,085,108.88 5,369,183.13
3 to 4 years 3,846,041.98 4,955,873.83
4 to 5 years 4,606,544.18 1,815,734.25
Over 5 years 2,800,524.83 1,164,731.78
Total 138,358,628.94 177,238,388.99
(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) The amount of accounts received in advance due to related companies is RMB 304,483.00, 0.22% of total accounts
received in advance. Please refer to the Ⅵ 7 of the notes.
(3) Most of the amount of accounts received in advance aged more than one year was unsettled contract payments on
construction in progress.
22 Employee’s compensation payable
Current year Current year
Item 31-12-2013 30-06-2014
addition reduction
1.Wages and salaries, bonuses,
24,272,411.57 95,296,688.79 111,698,973.44 7,870,126.92
allowances and subsidies
2.Staff welfare 24,712,862.37 3,605,446.65 3,445,778.78 24,872,530.24
3.Social insurance 1,639,866.75 22,994,845.08 23,782,179.43 852,532.40
Including：①Medical insurance 5,710,521.25 5,710,521.25
②Retirement pension 13,805,176.60 13,805,176.60
③Unemployment insurance 953,910.79 953,910.79
④injury insurance premium 429,296.63 429,296.63
⑤Pregnancy insurance 173,758.15 173,758.15
⑥Housing subsidies 1,639,866.75 787,334.35 852,532.40
⑦Heating subsidies 1,922,181.66 1,922,181.66
4. Housing fund 2,044,853.42 13,501,429.37 13,336,111.25 2,210,171.54
5.Labor union fee and employee
910,036.91 2,279,596.61 2,187,706.42 1,001,927.10
education fee
6.Non-currency welfare 211,281.00 211,281.00
7. Redemption for terminations of labor
contract
8.Other
Total 53,580,031.02 137,889,287.50 154,662,030.32 36,807,288.20
There was no amount delay paid at the end of the report period.
47
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
23 Taxes payable
Item 30-06-2014 31-12-2013
Value-added tax 12,913,539.54 2,725,964.48
Business tax 1,775,498.10 1,890,363.25
City maintenance and construction tax 1,081,325.99 531,714.02
Enterprise income tax 4,232,256.68 14,915,676.15
Individual income tax 4,388,372.34 717,852.43
Stamp duty 46,292.66 44,629.25
Extra-charges for education 449,445.82 175,079.78
Extra-charges for local education 293,817.40 110,906.70
Water project fund/River route maintenance fee 24,477.74 547,873.15
Safeguard fund for disables 528.00 420.00
Embankment tax 28,920.27
Land tax 217,274.88 434,549.74
Real estate tax 373,581.64
Total 25,422,829.15 22,497,530.86
24 Dividend payable
Name of investors 30-06-2014 31-12-2013
Legal person shares 1,433,156.00 2,053,911.36
Total 1,433,156.00 2,053,911.36
The amount of dividend payable at the end of the report period didn’t include dividend payable to shareholders which hold over
5% (including 5%) of the equity of the Company.
25 Other accounts payable
30-06-2014 31-12-2013
Ages
Amount Amount
Within1 year 22,908,342.92 29,586,977.60
1 to 2 years 2,428,714.54 3,640,918.43
2 to 3 years 1,607,092.39 2,003,306.90
3 to 4 years 2,000,464.90 2,981,861.66
4 to 5 years 2,974,240.66 2,416,554.17
Over 5 years 13,683,792.44 11,299,745.27
Total 45,602,647.85 51,929,364.03
(1) There were RMB 11,102,457.52 due to the shareholders holding over 5% (including 5%) of the equity of the Company—
Dalian Bingshan Group Co., Ltd., and mainly because subsidiary company borrowed for moving to new location.
(2) The amount of other accounts payable due to related companies is RMB 11,251,811.07, 24.67% of total other accounts
payable. Please refer to the Ⅵ 7 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.
26 Other non-current liabilities —Deferred income
Item 30-06-2014 31-12-2013
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 2014 as the schedule for transferring it into the profit statement.
48
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
27 Other non-current liabilities —Deferred income
Item 30-06-2014 31-12-2013
Subsidy fund for highly effective heat pump and related system 4,289,394.00 4,289,394.00
Contribution to subsidiary company relocation 46,788,000.00 46,788,000.00
Big capacity of sea water pre-freeze project of Project 863 12,114,960.35 15,549,945.60
Total 63,192,354.35 66,627,339.60
The balance of above items didn’t meet the conditions being converted to income at the end of the report period.
28 Share capitals
Issuance of new Shares converted
Item 31-12-2013 Others 30-06-2014
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 19,221,526.00 19,221,526.00
Including: Shares held by
19,213,921.00 19,213,921.00
domestic legal persons
Including: Shares held by
7,605.00 7,605.00
domestic natural person
II. Circulating share capital
1. Domestically listed ordinary
215,793,449.00 215,793,449.00
shares (A-share)
2. Domestically listed ordinary
115,000,000.00 115,000,000.00
shares (B-share)
III. Total 350,014,975.00 350,014,975.00
29 Capital surpluses
Current year Current year
Item 31-12-2013 30-06-2014
addition reduction
Capital premium 515,188,976.98 515,188,976.98
Other capital surplus 69,672,306.23 15,000.00 69,657,306.23
Total 584,861,283.21 15,000.00 584,846,283.21
30 Surplus reserves
Current year Current year
Item 31-12-2013 30-06-2014
addition reduction
statutory surplus reserves 261,485,947.00 261,485,947.00
free surplus reserves 244,047,118.25 29,065,684.79 273,112,803.04
Total 505,533,065.25 29,065,684.79 534,598,750.04
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 2013 according to the resolution of the Shareholders’ General Meeting of year 2013.
49
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
31 Retained earnings
Items Amount Extraction or allocation proportion
Retained earnings at the end of prior year 466,608,867.00
Add: Changes in accounting policies
At beginning of the year after retrospective adjustment 466,608,867.00
Add: Net profit 66,477,633.28
Less: Appropriation of statutory surplus reserves
20% of net profit of the Company of
Appropriation of free surplus reserves 29,065,684.79
year 2013
Appropriation of employee’s welfare and bonus fund in
119,047.87
foreign invested company
Cash dividends 52,502,246.25 RMB 0.15 per share
Retained earnings at the end of the current year 451,399,521.37
32 Revenue and cost of sales
(1)Business income and cost
Items 2014.01-06 2013.01-06
Operating income 774,912,253.19 792,124,153.23
Key business income 762,976,180.18 781,945,848.39
Other business income 11,936,073.01 10,178,304.84
Operating cost 609,950,440.82 620,886,543.64
Key business cost 598,638,940.68 612,570,078.48
Other business cost 11,311,500.14 8,316,465.16
(2) Key business（type）：
2014.01-06 2013.01-06
Name of type
Revenue Cost Revenue Cost
Manufacturing 762,976,180.18 598,638,940.68 781,945,848.39 612,570,078.48
(3) Key business（product）：
2014.01-06 2013.01-06
Name of product
Revenue Cost Revenue Cost
Refrigeration
762,976,180.18 598,638,940.68 781,945,848.39 612,570,078.48
equipments
(4) Key business（region）：
2014.01-06 2013.01-06
Name of region
Revenue Cost Revenue Cost
North-east of China 591,705,529.73 480,596,639.82 590,919,291.04 471,649,196.95
East of China 12,034,083.18 10,107,026.32 10,554,770.03 8,699,608.75
Centre of China 159,236,567.27 107,935,274.54 180,471,787.32 132,221,272.78
Total 762,976,180.18 598,638,940.68 781,945,848.39 612,570,078.48
50
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
(5) Top five customers
Percentage of total business
Name Revenue
income (%)
Dalian Bingshan Engineering & Trading Co., Ltd. 51,801,413.84 6.68
Beijing Huashang-Bingshan Refrigerating & Air-conditioning Complete
33,544,521.62 4.33
Equipment Co., Ltd.
Shenyang Yurun Agricultural Products Global Purchasing Center 14,327,350.44 1.85
Ili Chuanning Biotechnology Co., Ltd. 13,829,059.82 1.78
Huafon Chongqing Spandex Co., Ltd. 13,761,538.46 1.78
Total 127,263,884.18 16.42
33 Business taxes and surcharges
Item 2014.01-06 2013.01-06 Basis of taxes calculated
Business tax 836,183.52 693,802.89 3% or 5% of Revenue
City maintenance and
3,211,160.39 3,029,455.20 7% of Business tax and Value-added tax
construction tax
Additional education Fees 1,377,841.69 1,167,781.94 3% of Business tax and Value-added tax
Local educational fee 918,538.25 763,858.52 2% of Business tax and Value-added tax
Embankment expenses 125,694.96 110,327.65
Total 6,469,418.81 5,765,226.20
34 Selling and distribution expenses
Items 2014.01-06 2013.01-06
Handle official business expenses 2,479,958.80 2,117,556.59
Salaries and subsidies 25,847,629.40 20,829,431.85
Depreciation expenses 250,494.54 266,366.89
Transportations expenses 6,609,873.54 5,416,659.97
Entertainment expenses 3,170,406.48 4,121,601.35
Traveling expenses 6,261,527.19 8,393,449.44
Maintenance and repair expenses 3,040,090.24 3,773,656.52
Advertise and bids expenses 804,797.22 888,762.65
Others 436,623.10 573,858.09
Total 48,901,400.51 46,381,343.35
35 Administrative expenses
Items 2014.01-06 2013.01-06
Handle official business expenses 6,261,525.85 5,495,996.27
Salaries and subsidies 51,370,661.40 50,123,180.61
Depreciation expenses 3,573,094.77 3,353,905.34
Transportations expenses 745,869.70 684,763.80
Entertainment expenses 2,230,602.65 2,060,029.13
Traveling expenses 1,987,252.27 2,154,686.39
Maintenance and repair expenses 2,988,658.33 3,113,016.21
Advertise expenses 430,705.79 250,197.35
Other taxes 4,232,710.57 5,527,095.24
Insurance expenses 1,586,520.05 1,279,712.96
Research and development expenses 8,959,019.18 7,608,134.32
Amortization of long term assets 2,166,811.00 2,147,650.88
51
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
Design consultant and test service expenses 2,723,594.26 1,975,676.93
Others 505,756.54 1,210,104.29
Total 89,762,782.36 86,984,149.72
36 Financial expenses
Items 2014.01-06 2013.01-06
Interest expenses 1,578,018.01 1,367,645.83
Less: interest income 5,861,187.92 3,697,556.93
Losses/gain on exchange 106,537.45 -25,670.74
Other expenses 378,947.63 270,465.01
Total -3,797,684.83 -2,085,116.83
37 Gain/ (loss) from investments
(1) Categeries
Items 2014.01-06 2013.01-06
Calculated by cost method 1,754,944.75 500,000.00
Calculated by equity method 53,897,497.58 43,570,614.51
Investment income due to disposal of the equity of
681,816.41
associated company
Total 56,334,258.74 44,070,614.51
(2) Calculated by cost method
Name 2014.01-06 2013.01-06 Reason of changes
Guotai Junan Securities Co., Ltd. 1,504,944.75 Dividend distribution
Liaoning Mec Group Co., Ltd. 250,000.00 500,000.00 Decrease of dividend distribution
Total 1,754,944.75 500,000.00
(3) Calculated by equity method（more than 5% of profit）
Name 2014.01-06 2013.01-06 Reason of changes
Panasonic Cold-chain (Dalian) Co., Ltd 4,176,780.36
Keinin-Grand Ocean Thermal Technology
4,160,086.34 4,558,809.00 Decrease of business profit
(Dalian) Co., Ltd.
Dalian Sanyo Compressor Co., Ltd. 33,870,606.86 31,248,034.91 Increase of business profit
Dalian Fuji Bingshan Vending Machine Co., Ltd. 9,803,982.09
Total 47,834,675.29 39,983,624.27
(4)There was no severe constrict on the collection of the investment earnings.
38 Impairment losses
Items 2014.01-06 2013.01-06
Bad debt provision 11,727,606.97 11,692,077.89
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
52
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
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 11,727,606.97 11,692,077.89
39 Non-business incomes
(1)Details
Amount recorded into
Item 2014.01-06 2013.01-06 extraordinary profit and loss in
the current period
Gain on the disposal of non-current assets 2,044.63 240,775.86 2,044.63
Including: gain on the disposal of fixed assets 2,044.63 240,775.86 2,044.63
gain on disposal of intangible assets
Penalty and fine income 122,360.26 46,798.83 122,360.26
Subsidy fund from government 638,030.76 865,155.39 76,824.42
Deferred income 4,284,535.75 4,137,878.88 3,434,985.25
Debts need not paid
Others 3,023.77 3,023.77
Total 5,049,995.17 5,290,608.96 3,639,238.33
(2) Subsidy fund from government
Items 2014.01-06 2013.01-06 Explanations
Fund subsidies according to economic
76,300.00 20,300.00 Related to Gain/ loss
support policies
Tax refund 561,730.76 844,855.39 Related to Gain/ loss
Total 638,030.76 865,155.39
40 Non-business expenses
Amount recorded into
Item 2014.01-06 2013.01-06 extraordinary profit and loss in
the current period
Loss on the disposal of non-current assets 129,041.96 222,418.65 129,041.96
Including: loss on the disposal of fixed assets 129,041.96 222,418.65 129,041.96
Fines and penalties 11,514.40 41,651.81 11,514.40
Others 66,263.76 66,263.76
Total 206,820.12 264,070.46 206,820.12
41 Income tax expense
Item 2014.01-06 2013.01-06
Current income tax expense 5,937,957.94 6,721,007.66
Deferred income tax expense -2,186,324.08 -2,208,944.81
Total 3,751,633.86 4,512,062.85
42、Basic earnings per share and diluted earnings per share calculation process
(1)Calculation result
2014.01-06 2013.01-06
Net profit of the reporting period Basic earnings per Diluted earnings Basic earnings Diluted earnings per
share per share per share share
Profit attributable to the Company(Ⅰ) 0.19 0.19 0.19 0.19
Profit after deducting extraordinary gain
0.18 0.18 0.18 0.18
or loss attributable to the Company(Ⅱ)
53
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
(2)Calculation process of earning per share
Item No. 2014.01-06 2013.01-06
Profit or loss attributable to the Company 1 66,477,633.28 65,122,435.00
Profit or loss after deducting extraordinary gain or loss
2 63,794,559.91 62,382,278.37
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
(3) For the diluted potential ordinary shares, the net profits attributed to ordinary shareholders during the reporting term and the
weighted average number of outstanding ordinary shares should be adjusted separately, and it shall be used to calculate the
diluted earnings per share. Under the circumstances to issue the diluted potential ordinary shares such as convertible bonds,
stock options, stock warrants, the diluted earnings per share shall be calculated in the light of the formula as follow: Diluted
Earnings Per Share =P1/(S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ The weighted average number of incremental ordinary shares
on warrants, options, convertible debt and so on）P1represents the amounts attributable to ordinary equity holders of the
Company in respect of: (a) Profit or loss attributable to the Company; and (b) Profit or loss after deducting extraordinary gain or
loss attributable to the Company, adjust according to the accounting standards for enterprises and other relevant provisions. The
Company considered in sequence from dilutive potential ordinary shares to get the lowest earnings per share.
43 Other comprehensive income
Items 2014.01-06 2013.01-06
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
belonging to the company
Less: Income tax infection
Net amount transferred into profit and loss at current period that 11,250.00
54
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
Items 2014.01-06 2013.01-06
reckon into other comprehensive income at former period
Subtotal -11,250.00
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 -11,250.00 9,000.00
44. Relevant information about cash flow statement
(1) Other cash received relating to operating activities
Item 2014.01-06
Financial appropriation 76,300.00
Returns travel expense receivable 14,137,606.36
Received the current payments from associated parties 3,665,453.62
Interest income 4,279,561.80
Others 1,621,146.19
Total 23,780,067.97
(2) Other cash paid relating to operating activities
Item 2014.01-06
Travel expense 7,920,321.99
Deposit paid 3,911,850.00
Sales expenditure 39,706,895.07
Bank fees 338,963.63
Others 708,368.10
Total 52,586,398.79
(3) Other cash paid relating to financing activities
Item 2014.01-06
Discount interest for acceptance notes 39,984.00
Total 39,984.00
55
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
45 Complementary information for consolidated cash flow statement
(1) The relationship between the net profit and the net cash flows from operating activities
Item 2014.01-06 2013.01-06
1. Reconciliation from the net profit to the cash flows from operating activities
Net profit 69,324,088.48 67,085,019.42
Add: Provisions for assets impairment 11,727,606.97 11,692,077.89
Depreciation of fixed assets 18,243,165.48 17,663,856.21
Amortization of intangible assets 2,103,901.84 2,099,282.43
Amortization of long-term deferred expenses 358,885.66 78,990.01
Losses on disposal of fixed assets, intangible assets and other long-term
-611,114.76 -18,357.21
assets (gains, -)
Losses on scrapping of fixed assets (gains, -) 56,295.68
Losses on variation of fair value (gains, -)
Finance expenses (income, -) 1,684,555.46 1,355,670.85
Investment losses (gains, -) -55,652,442.33 -44,070,614.51
Decrease in deferred tax assets (increase, -) -2,184,574.08 -2,208,944.81
Increase in deferred tax liabilities (decrease, -)
Decrease in inventory (increase, -) 54,052,680.59 40,091,737.33
Decrease in operating receivables (increase, -) -126,192,171.87 -82,052,456.41
Increase in operating payables (decrease, -) 24,494,736.42 -7,973,003.13
Others
Net cash flows from operating activities -2,594,386.46 3,743,258.07
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 469,921,233.07 481,218,686.90
Less: Cash at the beginning of the period 502,339,160.35 525,818,735.46
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 -32,417,927.28 -44,600,048.56
(2) Cash and cash equivalents
Item 2014.01-06 2013.01-06
1.Cash 469,921,233.07 502,339,160.35
Including: cash on hand 27,536.49 99,455.92
Bank deposits that can be used for payment whenever necessary 455,538,401.34 492,056,269.04
Other monetary capital that can be used for payment whenever
necessary 14,355,295.24 10,183,435.39
2.cash equivalents
Including: Bonds mature within 3 months
3.Balance of cash and cash equivalents at the end of the year 469,921,233.07 502,339,160.35
56
Dalian Refrigeration Co., Ltd. 2014 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 Motoma Zhero RMB140,600,000.00 21.96% 21.96% 24129179-3
Group Co., of joint venture ure of Dalian
Ltd. refrigeration
equipment
2、Subsidiaries
For details, please refer to the Ⅳ(一) of the notes.
3、Joint venture and associate companies
For details, please refer to the Ⅴ.10 of the notes.
4、Other type of the related parties
Name of the related parties Relationship with the Company Organization Code
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
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
5、The transactions between the Company and the related parties
(1) Purchases of goods from related parties/ Sales of goods to related parties
Details of Rule of 2014.01-06 2013.01-06
Name of the related parties Item transaction price setting Proportion of the same type Proportion of the same type
Amount transaction amount ( %) Amount transaction amount ( %)
Dalian Sanyo Refrigeration Co., Ltd. Purchases Purchases of goods Market price 884,503.24 0.32 1,395,275.86 0.44
Panasonic Cold-chain (Dalian) Co., Ltd Purchases Purchases of goods Market price 7,433,527.78 2.65 9,031,353.74 2.87
Dalian Sanyo Compressor Co., Ltd. Purchases Purchases of goods Market price 32,239.21 0.01 659,584.42 0.21
Dalian Sanyo Meica Electronics Co., Ltd. Purchases Purchases of goods Market price 195,764.27 0.07
Dalian Bingshan Group Refrigeration
Purchases Purchases of goods Market price 22,424,166.91 8.00 16,727,522.52 5.32
Equipment Co., Ltd.
Dalian Third Refrigeration Equipment
Purchases Purchases of goods Market price 3,807,851.00 1.36 4,993,403.71 1.59
Factory
Dalian Spindle Cooling Towers Co., Ltd. Purchases Purchases of goods Market price 133,333.33 0.05 402,136.75 0.13
BAC Dalian Co., Ltd. Purchases Purchases of goods Market price 25,317,502.60 9.03 37,487,747.00 11.91
Dalian Bingshan Engineering & Trading Co.,
Purchases Purchases of goods Market price 8,482,546.92 3.03 8,276,816.51 2.63
Ltd.
57
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
Details of Rule of 2014.01-06 2013.01-06
Name of the related parties Item transaction price setting Proportion of the same type Proportion of the same type
Amount transaction amount ( %) Amount transaction amount ( %)
Dalian Bingshan Group Materials Trading
Purchases Purchases of goods Market price 1,599,625.64 0.57 2,753,364.26 0.87
Co. , Ltd
Dalian Bingshan Metal Technology Co., Ltd. Purchases Purchases of goods Market price 534,598.40 0.19 597,511.58 0.19
Daliian Sanyo High-Efficient Refrigeration
Purchases Purchases of goods Market price 1,068,325.94 0.38
System Co., Ltd.
Dalian Sanyo Refrigeration Co., Ltd. Sales Sales of goods Market price 4,947,472.34 0.64 6,355,878.88 0.80
Panasonic Cold-chain (Dalian) Co., Ltd Sales Sales of goods Market price 10,599,811.03 1.37 12,331,500.97 1.56
Dalian Sanyo Compressor Co., Ltd. Sales Sales of goods Market price 3,637,584.26 0.47 1,703,435.03 0.22
Dalian Bingshan Group Refrigeration
Sales Sales of goods Market price 919,806.39 0.12 887,564.56 0.11
Equipment Co., Ltd.
Dalian Third Refrigeration Equipment
Sales Sales of goods Market price 3,179,698.09 0.41 1,695,097.85 0.21
Factory
BAC Dalian Co., Ltd. Sales Sales of goods Market price 1,090,316.25 0.14 114,564.10 0.01
Dalian Bingshan Engineering & Trading Co.,
Sales Sales of goods Market price 51,801,413.84 6.68 43,533,748.55 5.50
Ltd.
Dalian Bingshan – P&A Recreation
Sales Sales of goods Market price 84,999.99 0.01
Development Engineering Co., Ltd.
Beijing Bingshan Serial Refrigeration
Sales Sales of goods Market price 173,671.79 0.02 5,747,454.71 0.73
Equipment Co., Ltd.
Beijing Huashang Bingshan Serial
Sales Sales of goods Market price 33,544,521.62 4.33 12,913,205.37 1.63
Refrigeration Equipment Co., Ltd.
Dalian Fuji Bingshan Vending Machine Co.,
Sales Sales of goods Market price 1,367,412.63 0.18 942,225.90 0.12
Ltd.
Dalian Bingshan Metal Technology Co., Ltd. Sales Sales of goods Market price 69,888.46 0.01 51,500.34 0.01
Daliian Sanyo High-Efficient Refrigeration
Sales Sales of goods Market price 255,563.57 0.03 262,339.21 0.03
System Co., Ltd.
MHI Bingshan Refrigeration (Dalian) Co.,
Sales Sales of goods Market price 795,707.71 0.10
Ltd.
(2) Leasing fees from related party
The Company signed an agreement with Dalian Bingshan Group Co., Ltd. to lease the research building and garage space from
Dalian Bingshan Group Co., Ltd. with a lease term of 3 years at the annual rent of RMB 142,572.00 yuan.
(3)Guarantee with related companies
No.
(4) Fund borrowing from associates
Explanation of fund borrowing form associates: For relocation of Dalian Bingshan Ryosetsu Quick Freezing Equipment Co.,
Ltd., one of its subsidiary companies, the Company borrowed 10 million yuan from Dalian Bingshan Group Co., Ltd. at the
bank loan interest rate in the same period.
6 Amounts due from/to related parties
(1) Accounts receivable
30-06-2014 31-12-2013
Name of the related parties
Provision for Provision for
Amount Amount
bad debts bad debts
Dalian Sanyo Compressor Co., Ltd. 1,994,501.82 99,725.09 89,378.90 4,468.94
Dalian Sanyo Refrigeration Co., Ltd. 2,655,647.71 132,782.39 2,419,164.85 120,958.24
Panasonic Cold-chain (Dalian) Co., Ltd 5,103,099.38 255,154.97 2,365,278.44 118,263.92
Dalian Bingshan Engineering & Trading Co., Ltd. 667,043.20 33,352.16 2,617,143.93 130,857.20
BAC Dalian Co., Ltd. 5,600.00 280.00
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 2,398,974.37 119,948.72 1,737,774.37 86,888.72
Dalian Bingshan – P&A Recreation Development Engineering
79,457.00 3,972.85
Co., Ltd.
Beijing Huashang Bingshan Serial Refrigeration Equipment
Co., Ltd. 19,969,094.38 998,454.72 223,000.00 19,750.00
58
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
Dalian Fuji Bingshan Vending Machine Co., Ltd. 1,221,699.03 61,084.95 148,940.03 7,447.00
(2) Notes receivable
30-06-2014 31-12-2013
Name of the related parties Provision for Provision
Amount Amount
bad debts for bad debts
Dalian Sanyo Compressor Co., Ltd. 617,136.87 426,959.02
Dalian Bingshan Engineering & Trading Co., Ltd. 11,614,818.89 8,529,233.58
BAC Dalian Co., Ltd. 300,000.00
Panasonic Cold-chain (Dalian) Co., Ltd 839,091.27
Dalian Sanyo Refrigeration Co., Ltd. 100,000.00 521,694.49
(3) Accounts paid in advance
Name of the related parties 30-06-2014 31-12-2013
Dalian Sanyo Compressor Co., Ltd. 2,487.00
Panasonic Cold-chain (Dalian) Co., Ltd 13,642.05
BAC Dalian Co., Ltd. 10,000.00
(4) Notes payable
Name of the related parties 30-06-2014 31-12-2013
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 16,000,000.00 5,072,848.40
BAC Dalian Co., Ltd. 1,970,398.05 1,000,000.00
Dalian Bingshan Group Materials Trading Co. , Ltd. 380,000.00 5,208,750.00
Dalian Third Refrigeration Equipment Factory 1,500,000.00
Dalian Bingshan Engineering & Trading Co., Ltd. 541,287.53
Daliian Sanyo High-Efficient Refrigeration System Co., Ltd. 743,319.81 289,813.77
(5) Accounts payable
Name of the related parties 30-06-2014 31-12-2013
Dalian Third Refrigeration Equipment Factory 95,523.74 1,355,621.34
BAC Dalian Co., Ltd. 23,861,880.00 16,862,867.00
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 3,555,611.79 98,364.00
Panasonic Cold-chain (Dalian) Co., Ltd 9,526.00 9,526.00
Dalian Sanyo Meica Electronics Co., Ltd. 229,044.20 172,568.79
Dalian Spindle Cooling Towers Co., Ltd. 373,499.00 269,499.00
Dalian Bingshan Engineering & Trading Co., Ltd. 1,938,746.26 688,542.77
Dalian Sanyo Compressor Co., Ltd. 45,516.95 909,828.95
Dalian Bingshan Group Materials Trading Co., Ltd 341,965.80
Dalian Bingshan Metal Technology Co., Ltd. 216,514.08 383,288.96
Daliian Sanyo High-Efficient Refrigeration System Co., Ltd. 653,478.37 1,374,353.15
(6) Accounts received in advance
Name of the related parties 30-06-2014 31-12-2013
Dalian Third Refrigeration Equipment Factory 111,300.00
Dalian Sanyo Refrigeration Co., Ltd. 2,978.85
Dalian Bingshan Engineering & Trading Co. , Ltd. 2,272,607.85
Beijing Huashang Bingshan Refrigeration and Air-
1,936,650.06
conditioning Machinery Co., Ltd.
Dalian Bingshan – P&A Recreation Development
20,683.00 3,000.00
Engineering Co., Ltd.
MHI Bingshan Refrigeration (Dalian) Co., Ltd. 172,500.00
59
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
(7) Other Accounts payable
Name of the related parties 30-06-2014 31-12-2013
Dalian Bingshan Group Co., Ltd. 11,102,457.52 10,332,829.67
Dalian Third Refrigeration Equipment Factory 1,000.00 1,000.00
Dalian Bingshan Engineering & Trading Co. , Ltd. 148,353.55 231,499.82
Ⅶ.Contingency
1. Effect of unsettled lawsuit to the financial statements
Target
Accuser Defendant Reason Court Development
amount
Dalian Bingshan
Tonghua Yijia Jilin Province
Ryosetsu Quick Contract RMB1.94m RMB1 million of the defendant’s
Biotechnology Food Co., Tonghua County
Freezing Equipment Co., dispute illion bank deposit were frozen.
Ltd. people’s Court
Ltd.
The lawsuit happened during 2013 and was still in the process of trying when the financial statements disclosed.
2. No guarantee to other company as at the end of the report period.
3. No other contingency needed disclosed.
Ⅷ. Commitments
No.
Ⅸ.Unadjusted events after the Balance Sheet Date
No.
Ⅹ.Other significant events
No.
60
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
Ⅺ.Notes to the financial statements of the parent company
1 Accounts receivable
(1) Classified by account nature
30-06-2014 31-12-2013
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
302,326,662.54 100 64,051,396.75 21.19 231,390,326.16 100 60,808,169.35 26.28
significant but with
high risk in groups
Other insignificant
items
Total 302,326,662.54 100 64,051,396.75 21.19 231,390,326.16 100 60,808,169.35 26.28
The aging of accounts receivable and related provisions for bad debts
30-06-2014 31-12-2013
Proportion Provision for bad Proportion Provision for bad
Ages Amount Amount
(%) debts (%) debts
Within1 year 166,062,045.76 54.99 8,303,102.29 98,401,447.62 42.53 4,920,072.38
1 to 2 years 56,810,684.59 18.81 5,681,068.46 54,129,047.71 23.39 5,412,904.77
2 to 3 years 30,091,150.96 9.97 9,027,345.29 27,897,517.68 12.06 8,369,255.30
3 to 4 years 8,654,790.50 2.87 4,327,395.25 10,718,514.51 4.63 5,359,257.26
4 to 5 years 18,167,051.33 6.02 14,533,641.06 17,485,595.02 7.56 13,988,476.02
Over 5 years 22,178,844.40 7.34 22,178,844.40 22,758,203.62 9.83 22,758,203.62
Total 301,964,567.54 100 64,051,396.75 231,390,326.16 100 60,808,169.35
(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 (36) Sale of goods 3,063,426.02 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 (%)
Beijing Huashang Bingshan
Refrigeration and Air-conditioning affiliated 19,875,094.38 Less than 1 year 6.57
Machinery Co., Ltd.
Dalian Xinghaiwan Development &
Non-affiliated 11,242,693.00 4-5 years 3.72
Construction Management Center
Shenyang Yurun Agricultural Products
Non-affiliated 11,213,000.00 Less than 1 year 3.71
Global Purchasing Center
COFCO Meat (Suqian) Co., Ltd. Non-affiliated 10,136,575.85 1-2 years 3.35
Shijiazhuang Yurun Agricultural
Non-affiliated 6,870,000.00 Less than 1 year 2.27
Products Global Purchasing Center
61
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
(8) The amount of accounts receivable due from related companies are RMB 22,968,984.70, 7.60% of total accounts receivable.
The relationship
Proportion of total accounts
Name with the Amount
receivable (%)
Company
Beijing Huashang Bingshan Refrigeration and Associated
19,875,094.38 6.57
Air-conditioning Machinery Co., Ltd. company
Beijing Bingshan Serial Refrigeration Subsidiary of
2,045,683.52 0.68
Equipment Co., Ltd. Bingshan Group
Associated
Dalian Sanyo Compressor Co., Ltd. 1,048,206.80 0.35
company
Total 22,968,984.70 7.60
2 Other accounts receivable
(1) Classified by account nature
30-06-2014 31-12-2013
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
20,522,626.41 100 1,679,421.95 8.18 14,155,569.38 100 1,332,793.72 9.42
individually significant but
with high risk in groups
Other insignificant items
Total 20,522,626.41 100 1,679,421.95 8.18 14,155,569.38 100 1,332,793.72 9.42
The ageing of other accounts receivable and related provisions for bad debts
30-06-2014 31-12-2013
Ages Proportion Provision for bad Proportion Provision for bad
Amount Amount
(%) debts (%) debts
Within1 year 18,633,744.71 90.80 931,687.24 12,408,490.33 87.66 620,424.51
1 to 2 years 750,160.00 3.65 75,016.00 418,763.14 2.96 41,876.31
2 to 3 years 250,000.00 1.22 75,000.00 285,114.62 2.01 85,534.39
3 to 4 years 379,702.18 1.85 189,851.10 834,181.77 5.89 417,090.89
4 to 5 years 505,759.52 2.46 404,607.61 205,759.52 1.46 164,607.62
Over 5 years 3,260.00 0.02 3,260.00 3,260.00 0.02 3,260.00
Total 20,522,626.41 100 1,679,421.95 14,155,569.38 100 1,332,793.72
(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.
62
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
(7) The first five arrearage entities of other accounts receivable
The relationship with
Company Amount Age Proportion (%)
the Company
Dalian Land Reserve Center Non-affiliated 10,000,000.00 Less than 1 year 48.73
Dalian Construction Project Labor
Insurance Premium Management Non-affiliated 500,000.00 1-2 years 2.44
Office
Jiangsu Xinyou Construction Group
Non-affiliated 320,000.00 Less than 1 year 1.56
Co., Ltd. Xuzhou Branch
Jiangxi Soda Industry Co., Ltd. Non-affiliated 300,000.00 4-5 years 1.46
Dalian Economic & Technological
Development Zone Fund Accounting Non-affiliated 265,950.62 3-4 years 1.30
Center for Organs and Institutions
(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
Voting Cash dividend
Calculation Sharehold Provision for impairment
Initial cost Beginning balance Changes Ending balance right of the current
No. Name method ing（%） impairment of the
（%） period
current
period
Dalian Bingshan – P&A
Equity
1 Recreation Development 1,034,675.00 3,474,153.38 215,188.46 3,689,341.84 50 50
method
Engineering Co., Ltd.
Dalian Jiale Vending
Equity
2 Machine Operation Co., 18,750,000.00 14,333,183.59 -14,333,183.59 50 50
method
Ltd.
Dalian Bingshan
Equity
3 Engineering & Trading 1,200,000.00 13,138,080.92 252,517.60 13,390,598.52 24 24 720,000.00
method
Co. , Ltd.
Dalian Sanyo Equity
4 85,416,929.20 150,937,123.13 -1,391,736.58 149,545,386.55 40 40 3,200,000.00
Refrigeration Co., Ltd. method
Dalian Honjo Chemical Equity
5 3,908,911.50 9,452,973.22 -537,296.75 8,915,676.47 30 30 1,252,121.40
Co., Ltd. method
Panasonic Cold-chain Equity
6 134,658,753.75 215,712,008.04 -4,991,728.01 210,720,280.03 40 40 8,000,000.00
(Dalian) Co., Ltd method
Keinin-Grand Ocean
Equity
7 Thermal Technology 24,402,234.58 40,403,428.77 -4,639,913.66 35,763,515.11 20 20 8,800,000.00
method
(Dalian) Co., Ltd.
Dalian Sanyo Compressor Equity
8 176,953,841.88 385,481,730.63 17,870,606.86 403,352,337.49 40 40 16,000,000.00
Co., Ltd. method
Dalian Sanyo Meica Equity
9 9,649,590.00 23,373,393.16 558,635.69 23,932,028.85 30 30
Electronics Co., Ltd. method
MHI Bingshan
Equity
10 Refrigeration (Dalian) 22,500,000.00 22,500,000.00 -1,486,762.36 21,013,237.64 45 45
method
Co., Ltd.
Beijing Huashang
Bingshan Refrigeration Equity
11 490,000.00 1,175,056.73 35,673.03 1,210,729.76 49 49
and Air-conditioning method
Machinery Co., Ltd.
Dalian Fuji Bingshan
Equity
12 Vending Machine Co., 66,416,364.00 77,258,663.86 9,803,982.09 87,062,645.95 49 49
method
Ltd.
Daliian Sanyo High-
Equity
13 Efficient Refrigeration 20,000,000.00 22,028,814.51 236,209.81 22,265,024.32 25 25
method
System Co., Ltd.
Dalian Sanyo Home Equity
14 19,666,212.00 11,694,400.00 11,694,400.00 10.91 10.91 11,694,400.00
Appliance Co., Ltd. method
Zibo Electric Traction
15 Cost method 420,000.00 420,000.00 420,000.00 0.76 0.76 420,000.00
Machine Co., Ltd.
Liaoning Mec Group Co.,
16 Cost method 1,020,000.00 1,020,000.00 1,020,000.00 3.57 3.57 250,000.00
Ltd.
Guotai Junan Securities
17 Cost method 30,098,895.00 30,098,895.00 30,098,895.00 0.49 0.49 1,582,164.89 1,504,944.75
Co., Ltd.
Guotai Junan Investment
18 Cost method 3,057,316.00 3,057,316.00 3,057,316.00 0.22 0.22 2,688,605.91
Management Co., Ltd.
Thermo King Container
19 Temperature Control Cost method 11,207,806.00 11,207,806.00 11,207,806.00 17.8 17.8
(Suzhou) Co., Ltd.
Liaoning Enterprises
20 Cost method 105,000.00 105,000.00 105,000.00 4.2 4.2 105,000.00
UnitedIndustryCo.,Ltd.
Dalian Bingshan Group
21 Materials Trading Co., Cost method 250,000.00 250,000.00 250,000.00 5 5
Ltd.
Dalian Bingshan Group
22 Refrigeration Installation Cost method 20,036,841.62 20,036,841.62 20,036,841.62 100 100
Co., Ltd.
Dalian Bingshan Group
23 Sales Company
Cost method 16,200,000.00 16,200,000.00 16,200,000.00 90 90
Dalian Bingshan Metal
24 Processing Co., Ltd.
Cost method 12,501,344.60 12,501,344.60 12,501,344.60 64.25 64.25
Dalian Bingshan Air-
25 Conditioning Equipment Cost method 36,506,570.00 36,506,570.00 36,506,570.00 70 70 2,100,000.00
Co., Ltd.
26 Dalian Bingshan Cost method 1,522,117.80 1,522,117.80 1,522,117.80 60 60
63
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
Provision
for
Voting Cash dividend
Calculation Sharehold Provision for impairment
Initial cost Beginning balance Changes Ending balance right of the current
No. Name method ing（%） impairment of the
（%） period
current
period
Guardian Automation
Co., Ltd.
Dalian Bingshan
27 Ryosetsu Quick Freezing Cost method 5,745,097.40 5,745,097.40 5,745,097.40 70 70
Equipment Co., Ltd.
Wuhan New World
28 Refrigeration Industrial Cost method 17,980,400.00 17,980,400.00 17,980,400.00 51 51
Co., Ltd.
Wuhan New World
Refrigeration Air
29 Conditioner Engineering
Cost method 400,000.00 400,000.00 400,000.00 5 100
Co., Ltd.
Total 742,098,900.33 1,148,014,398.36 1,592,192.59 1,149,606,590.95 16,490,170.80 41,827,066.15
Note 1: On Oct. 22, 2013, the 6th meeting of the 6th Board of Directors of the Company adopted the resolution that the
Company and Fuji Motor Co., Ltd. transferred 50% of their respective shareholding in Dalian Jiale Vending Machine Operation
Co., Ltd. to the independent third party -- Shanghai Miyuan Beverage Co., Ltd., the base date for transfer was Jun. 30, 2013,
and the amount for the Company's transfer was 15 million yuan. In Jan. 2014, the Company received the said transfer amount
paid by Shanghai Miyuan Beverage Co., Ltd. and the transfer was completed.
4 Revenue and cost of sales
(1)Business income and cost
Items 2014.01-06 2013.01-06
Operating income 470,970,219.97 485,112,570.51
Key business income 460,374,451.87 476,890,717.26
Other business income 10,595,768.10 8,221,853.25
Operating cost 386,947,532.84 389,637,758.36
Key business cost 377,487,851.62 382,481,578.43
Other business cost 9,459,681.22 7,156,179.93
(2) Key business（type）
2014.01-06 2013.01-06
Name of type
Revenue Cost Revenue Cost
Manufacturing 460,374,451.87 377,487,851.62 476,890,717.26 382,481,578.43
(3) Key business（product）
2014.01-06 2013.01-06
Name of product
Revenue Cost Revenue Cost
Refrigeration
460,374,451.87 377,487,851.62 476,890,717.26 382,481,578.43
equipments
(4) Key business (region)
2014.01-06 2013.01-06
Name of region
Revenue Cost Revenue Cost
North-east of China 460,374,451.87 377,487,851.62 476,890,717.26 382,481,578.43
64
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
(5) Top five customers
Percentage of total
Name Revenue
business income (%)
Dalian Bingshan Engineering & Trading Co., Ltd. 48,002,943.23 10.19
Beijing Huashang Bingshan Refrigeration and Air-conditioning
Machinery Co., Ltd. 33,544,521.62 7.12
Shenyang Yurun Agricultural Products Global Purchasing Center 14,327,350.44 3.04
Ili Chuanning Biotechnology Co., Ltd. 13,829,059.82 2.94
Huafon Chongqing Spandex Co., Ltd. 13,761,538.46 2.92
Total 123,465,413.57 26.21
5 Gain/ (loss) from investments
(1) Categery
Item 2014.01-06 2013.01-06
Long-term equity investment income accounted for by using the cost method 3,854,944.75 5,313,205.11
Long-term equity investment income accounted for by using the equity method 53,897,497.58 43,570,614.51
Investment income due to disposal of the equity of associated company 681,816.41
Total 58,434,258.74 48,883,819.62
(2) Long-term equity investment income accounted for by using the cost method
Name of invested company 2014.01-06 2013.01-06 Reason of changes
Liaoning Mec Group Co., Ltd. 250,000.00 500,000.00 Less distributed dividend
Board of directors not held during
Dalian Bingshan Air-Conditioning Equipment Co., Ltd. 2,100,000.00 the same period of last year
Board of directors not held during
Dalian Bingshan Guardian Automation Co., Ltd. 2,263,205.11
the reporting period
Board of directors not held during
Wuhan New World Refrigeration Industrial Co., Ltd. 2,550,000.00
the reporting period
Gutai Junan Securities Co., Ltd. Dividend distributed
1,504,944.75
Total 3,854,944.75 5,313,205.11
(3) Long-term equity investment income accounted for by using the equity method
Name of invested company 2014.01-06 2013.01-06 Reason of changes
Dalian Sanyo Refrigeration Co., Ltd. 1,808,263.42 148,660.98 Increase of business profit
Panasonic Cold-chain (Dalian) Co., Ltd 3,008,271.99 4,176,780.36 Decrease of business profit
Keinin-Grand Ocean Thermal Technology (Dalian)
4,160,086.34 4,558,809.00 Decrease of business profit
Co., Ltd.
Dalian Sanyo Compressor Co., Ltd. 33,870,606.86 31,248,034.91 Increase of business profit
Dalian Bingshan Engineering & Trading Co., Ltd. 972,517.60 824,130.97 Increase of business profit
Dalian Honjo Chemical Co., Ltd. 714,824.65 487,234.37 Increase of business profit
Dalian Sanyo Meica Electronics Co., Ltd. 558,635.69 -110,176.59 Increase of business profit
Beijing Huashang Bingshan Refrigeration and Air-
35,673.03 11,100.94 Increase of business profit
conditioning Machinery Co., Ltd.
Dalian Fuji Bingshan Vending Machine Co., Ltd. 9,803,982.09 2,792,481.55 Increase of business profit
Daliian Sanyo High-Efficient Refrigeration System
236,209.81 98,576.11 Increase of business profit
Co., Ltd.
Dalian Bingshan – P&A Recreation Development
215,188.46 -330,100.26 Increase of business profit
Engineering Co., Ltd.
65
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
Name of invested company 2014.01-06 2013.01-06 Reason of changes
Dalian Jiale Vending Machine Operation Co., Ltd. -334,917.83 Transferred
MHI Bingshan Refrigeration (Dalian) Co., Ltd. -1,486,762.36 Put into operation in this period
Total 53,897,497.58 43,570,614.51
(4)There was no severe constrict on the collection of the investment earnings.
6、Supplementary information of cash flow statement
Supplementary information 2014.01-06 2013.01-06
1. Reconciliation from the net profit to the cash flows from operating activities
Net profit 64,214,504.65 63,288,641.95
Add: Provisions for assets impairment 6,653,281.65 7,337,489.02
Depreciation of fixed assets 11,763,233.68 11,301,660.09
Amortization of intangible assets 1,328,578.30 1,326,553.77
Amortization of long-term deferred expenses 350,120.32 70,224.67
Losses on disposal of fixed assets, intangible assets and other long-term
-682,901.04
assets (gains, -)
Losses on scrapping of fixed assets (gains, -) 54,144.94
Losses on variation of fair value (gains, -)
Finance expenses (income, -) 205,718.11 -119,335.70
Investment losses (gains, -) -57,752,442.33 -48,883,819.62
Decrease in deferred tax assets (increase, -) -1,533,172.09 -1,834,372.26
Increase in deferred tax liabilities (decrease, -)
Decrease in inventory (increase, -) 29,969,046.52 27,004,267.11
Decrease in operating receivables (increase, -) -103,007,138.64 -48,593,335.99
Increase in operating payables (decrease, -) 14,442,552.97 -4,471,548.27
Others
Net cash flows from operating activities -33,994,472.96 6,426,424.77
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 373,188,133.53 398,052,941.34
Less: Cash at the beginning of the period 431,494,649.19 437,725,268.74
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 -58,306,515.66 -39,672,327.40
66
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
Ⅻ. Other supplementary Information
1 Non-recurring gains and losses
Non-recurring gains and losses item 2014.01-06
1. Gain/loss from disposal of non-current assets 34,225.82
2.Tax return or exemption exceeding authority or without formal authorization
documents
3.Governmental subsidy written into current gains and losses 3,511,809.67
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 47,605.87
Less：Affected amount of income tax from non-recurring gains and losses -895,927.94
Less: Affected amount of minority interest -14,640.05
Non-recurring gains and losses attributable to parent company 2,683,073.37
2 Earnings per share
The weighted EPS
Item average ROE
(%) Basic EPS Diluted EPS
Net profit attributable to the Company’s ordinary
3.49 0.19 0.19
shareholders
Net profit attributable to the Company’s ordinary
3.35 0.18 0.18
shareholders after deducting non-recurring gains and losses
3 The special change items of balance sheet and income statement
Items of balance sheet
and income statement 2014.06.30 2013.12.31 Change Ratio Reasons
The payments for projects, purchases prepaid in
Account paid in advance 35,233,321.64 26,031,386.32 35.35%
the report period increased
The dividends announced for distribution by the
Dividend receivable 19,104,944.75 33,450.00 57014.93% invested units did not arrive in the payment
period
The term deposits in the report period increased
Interest receivable 5,197,899.97 3,603,594.85 44.24%
with more interests
Increase of the performance bond for bids in the
Other account receivable 32,994,118.28 24,514,740.07 34.59%
reporting period.
The expense to be apportioned in the report
Other current assets 2,080,367.89 995,599.80 108.96%
period increased
The Company paid the year-end bonus for the last
Employee’s compensation payable 36,807,288.20 53,580,031.02 -31.30%
year in the report period
The dividends did not arrive in the payment
Dividend payable 1,433,156.00 2,053,911.36 -30.22%
period
2014.01-06 2013.01-06
The term deposits in the report period increased
Financial expense -3,797,684.83 -2,085,116.83 -82.13%
with more interests
67
Dalian Refrigeration Co., Ltd. 2014 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 19, 2014
68
