DALIAN REFRIGERATION CO., LTD.
QUARTERLY REPORT FOR THIRD QUARTER, 2014
§1 Important Notes
1.1 The directors and the Board of Directors, the supervisors and the Supervisory Board, and Senior staff
members of Dalian Refrigeration Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are
no any important omissions, fictitious statements or serious misleading carried in this report, and shall take all
responsibilities, individual and/or joint, for the reality, accuracy and completeness of the whole contents.
1.2 The Company’s quarterly financial report has not been audited.
1.3 Chairman of the Board of Directors of the Company Mr. Ji Zhijian, Financial Majordomo Ms. Rong Yan and
the head of Accounting Department Ms. Mao Chunhua hereby confirm that the financial report of the quarterly
report is true and complete.
1.4 This report is written respectively in Chinese and in English. In the event of any discrepancy between the two
above-mentioned versions, the Chinese version shall prevail.
§2 Major accounting data and changes of shareholders
2.1 Major accounting data and financial indexes
Is there any traceable adjustment to the financial statements for the previous report period?
√ Yes No
Increase/decrease
2013.12.31 over
2014.9.30
2013.12.31(%)
Before adjustment After adjustment After adjustment
Total assets 3,083,859,491.57 2,967,390,234.89 2,967,390,234.89 3.92%
Shareholder’s equity attributable to
1,947,922,478.70 1,907,018,190.46 1,907,018,190.46 2.14%
parent company
Increase/decrease Increase/decrease
2014.7-9 2014.1-9
over 2013.7-9(%) over 2013.1-9(%)
Total operating income 385,972,306.91 -2.71% 1,160,884,560.10 -2.35%
Net profit attributable to parent
29,752,319.43 -0.54% 96,229,952.71 1.26%
company
Net profit attributable to parent
company after deducting 29,325,061.69 -1.19% 93,119,621.60 1.15%
non-recurring gains/losses
Net cash generated from operating
-- -- -17,394,248.71 -302.13%
activities
Basic earnings per share 0.09 0.00％ 0.27 0.00％
Diluted earnings per share 0.09 0.00％ 0.27 0.00％
Decrease 0.21
Decrease 0.09
Return on equity 1.52％ 5.01% percentage
percentage points
points
Amount from beginning of
Item of non-recurring gains and losses year to the end of report
period
Profit and loss from disposal of non-current assets 557,965.61
Government subsidies which were included in the current profits and losses 3,511,809.82
Other non-operating incomes and expenses except the above mentioned 46,009.31
Income tax effects 1,035,869.06
Minority equity interests effects (after tax) -30,415.43
Total 3,110,331.11
1
2.2 Total number and particulars of the shareholders by the end of the report period
Total shareholders at the end of report
40,848
period
Shareholding of top ten shareholders
Number of pledged
Number of shares
Name Nature Proportion Total number
with sale restriction
shares or shares
frozen
Dalian Bingshan Group Co., Domestic non-state-owned legal
21.96% 76,855,683 19,213,921
Ltd. person
SANYO ELECTRIC CO
Foreign legal person 10.00% 35,001,500 0
LTD
Hunan Aier Eye Hospital Domestic non-state-owned legal
2.00% 7,003,469 0
Group Co., Ltd. person
BOCI SECURITIES
Foreign legal person 0.88% 3,090,654 0
LIMITED
Sun Huiming Domestic natural person 0.56% 1,959,911 0
Jiang Youchang Domestic natural person 0.55% 1,939,575 0
JOHCM INTERNATIONAL
SMALL CAP EQUITY Foreign legal person 0.48% 1,695,600 0
FUND
Lin Zhenming Foreign natural person 0.47% 1,640,000 0
Dalian Industrial
Domestic non-state-owned legal
Development Investment 0.46% 1,622,250 0
person
Company
Jiantou Zhongxin Assets Domestic non-state-owned legal
0.45% 1,575,000 0
Management Co., Ltd. person
Particulars about shares held by the top ten negotiable shareholders not subject to conditional sales
Name of shareholder EORP (shares) Type
Dalian Bingshan Group Co., Ltd. 57,641,762 A
SANYO ELECTRIC CO LTD 35,001,500 B
Hunan Aier Eye Hospital Group Co., Ltd. 7,003,469 A
BOCI SECURITIES LIMITED 3,090,654 B
Sun Huiming 1,959,911 B
Jiang Youchang 1,939,575 A
JOHCM INTERNATIONAL SMALL CAP EQUITY
1,695,600 B
FUND
Lin Zhenming 1,640,000 B
Dalian Industrial Development Investment Company 1,622,250 A
Jiantou Zhongxin Assets Management Co., Ltd. 1,575,000 A
Dalian Bingshan Group Co., Ltd. had the association
Notes to the associated relationship and uniform relationship with Sanyo Electric Co., Ltd. among the above
actions of the above shareholders shareholders. Sanyo Electric Co., Ltd. holds 30% of Dalian
Bingshan Group Co., Ltd.'s equity.
Did the Company's shareholders conduct the agreed repurchase transactions in the reporting period?
□ Yes √ No
Information on the total number of preferred shareholders and the shares held by top ten preferred shareholders as
of the end of the reporting period
□ Yes √ No
2
§3 Important Matters
3.1 Major changes in main financial items and indexes, and description of the cause
√ Applicable □ Inapplicable
1. Accounts receivable remarkably increased in comparison with the beginning of the year, mainly due to the
customer's financial strain, which prevented from its normal payback.
2. Accounts in advance remarkably increased in comparison with the beginning of the year, mainly due to the
advances for purchasing the equipment and for the project.
3. Dividend receivable remarkably increased in comparison with the beginning of the year, mainly due to increase
of undue dividend receivable.
4. Interest receivable remarkably increased in comparison with the beginning of the year, mainly due to the new
term-deposits in the reporting period.
5. Other receivables remarkably increased in comparison with the beginning of the year, mainly due to increase of
performance bonds.
6. Other current assets remarkably increased in comparison with the beginning of the year, mainly due to insurance
premium to be apportioned.
7. Accounts payable remarkably increased in comparison with the beginning of the year, mainly due to increase of
accounts payable for projects.
8. Taxes payable remarkably decreased in comparison with the beginning of the year, mainly due to payment of due
income tax in the reporting period.
9. Other current liabilities remarkably decreased in comparison with the beginning of the year, mainly due to
amortization of incomes in the reporting period.
10. Income tax expense remarkably decreased on a year-on-year basis from January to September, mainly due to
decrease of due income tax, leading to decrease of the corresponding income tax expense in the current period.
11. Minority shareholders' equity remarkably decreased on a year-on-year basis from January to September, mainly
due to decrease of the profit of subsidiary companies.
3.2 Analytic description of major matters, their influence and solutions
Applicable√ Inapplicable
3.3 Influence of new or revised Accounting Standards for Enterprises on the financial statements of the Company
1. According to the revised Accounting Standards for Enterprises No. 2 - Long-term Equity Investments, any
equity investment held by the Company, on which the Company had no control, joint control or significant
influence and which fair value could not be measured reliably, was recorded as financial assets available for sale
at its cost, not as long-term equity investments, and was adjusted by application of the retrospective adjustment
method. Change of the said accounting policies had influence on the monetary amounts of two statement items
only, i.e. financial assets available for sale and long-term equity investments, and no influence on the Company's
total assets, total amount of liabilities, net assets and net profits for the whole year of 2013 and the first half of
2014.For details of adjustment items, see the Announcement on Change of Accounting Policies of the Company.
2. According to the revised Accounting Standards for Enterprises No. 9 - Employee Compensation, the Company
re-evaluated the employee compensation arrangement and found no defined benefit plans.
3. According to the revised Accounting Standards for Enterprises No. 33 - Consolidated Financial Statements, the
Company re-evaluated the consolidation scope of consolidated financial statements and found no change in the
consolidation scope.
4. According to the new Accounting Standards for Enterprises No. 40 - Joint Venture Arrangements, the
Company re-evaluated the classification of joint venture arrangements and found no joint ventures re-classified as
joint operations.
5. Except for the above-mentioned items, the new or revised Accounting Standards for Enterprises had no other
significant influence on the financial statements of the Company.
3
3.4 Undertaking matters for trial sales of state shares and implementation
√ Applicable □Inapplicable
Except the immature condition of being implementation for management share incentive scheme,
Dalian Bingshan Group Co., Ltd. strictly perform the commitment in share reform.
During the report period, Dalian Bingshan Group Co., Ltd. re-regulated the commitments as
follow: “Authorized Board of Daleng Gufen formulates and implements equity incentive and
restriction mechanism for the management in line with relevant policy and regulations of the
State, before 30 June 2016.”
3.5 Precautions on forecasting that by the beginning of year till the end of the next report period, the accumulated
net profit may be turned into loss or change greatly compared with that in the same period of the last year, and
description of the cause
□ Applicable √ Inapplicable
3.6 Securities investment
□ Applicable √ Inapplicable
Shares holding of other listed companies
□ Applicable √ Inapplicable
3.7 Derivatives investment
□ Applicable √ Inapplicable
3.8 Table of investigation, communication, interview received
Date of Place of
Way of reception Guest received Main content of discussion
reception reception
Research fellow of
July 04, 2014 Company Field
Northeast Securities Information about the
Research fellow of Fortune fundamentals of the Company
July 15, 2014 Company Field
Securities
§4 Financial Report (attached)
Not audited.
Board of Directors of Dalian Refrigeration Co., Ltd.
October 21, 2014
4
BALANCE SHEET
Prepared by Dalian Refrigeration Co., Ltd. September 30, 2014 Unit: RMB
30-Sep-2014 31-Dec-2013
Assets
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 481,131,842.18 360,627,008.97 512,903,713.13 434,747,569.29
Financial assets which are measured
by fair value and which changes are
recorded in current profit and loss
Notes receivable 31,568,565.38 26,764,293.71 39,827,031.77 20,694,679.80
Accounts receivable 492,190,796.24 257,647,074.85 369,712,746.70 170,582,156.81
Accounts in advance 43,676,739.41 11,676,313.99 26,031,386.32 6,125,477.96
Interest receivables 5,212,509.09 5,212,509.09 3,603,594.85 3,603,594.85
Dividend receivable 9,600,000.00 12,922,918.53 33,450.00 2,550,000.00
Other receivables 44,404,567.39 27,858,224.25 24,514,740.07 12,822,775.66
Buying in resold financial assets
Inventories 272,138,390.49 144,923,812.35 325,531,007.41 173,198,452.67
Non-current asset due within one year
Other current assets 1,776,772.01 1,776,772.01 995,599.80 922,487.82
Total current assets 1,381,700,182.19 849,408,927.75 1,303,153,270.05 825,247,194.86
Non-current assets:
Finance asset held available for sales 42,428,388.70 41,113,246.20 42,678,388.70 41,363,246.20
Held-to-maturity securities
Long-term account receivable
Long-term equity investment 1,002,406,517.60 1,113,298,889.02 979,268,609.94 1,090,160,981.36
Investment property
Fixed assets 399,507,627.48 228,918,614.68 395,266,143.70 218,716,664.94
Construction in progress 77,425,757.61 73,567,222.42 68,462,823.08 65,051,019.19
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 154,915,313.21 90,470,854.36 155,190,230.51 89,590,975.25
Expense on R&D
Goodwill
Long-term expenses to be
3,854,643.58 3,514,256.58 3,901,749.71 3,548,214.70
apportioned
Deferred income tax asset 21,621,061.20 13,119,595.77 19,469,019.20 11,512,233.28
Other non-current asset
Total non-current asset 1,702,159,309.38 1,564,002,679.03 1,664,236,964.84 1,519,943,334.92
Total assets 3,083,859,491.57 2,413,411,606.78 2,967,390,234.89 2,345,190,529.78
5
BALANCE SHEET (CONTINUED)
30-Sep-2014 31-Dec-2013
Liabilities and shareholders’ equity
Consolidation Parent Company Consolidation Parent Company
Current liabilities:
Short-term loans 45,000,000.00 37,500,000.00
Financial liabilities which are measured by
fair value and which changes are recorded
in current profit and loss
Notes payable 68,489,563.42 48,653,519.67 80,293,515.17 55,821,881.28
Accounts payable 605,336,658.26 363,856,328.22 464,863,265.01 265,908,099.58
Accounts received in advance 152,762,910.17 88,896,668.69 177,238,388.99 107,267,861.73
Wage payable 38,065,097.86 1,345,344.26 53,580,031.02 19,207,236.71
Taxes payable 11,501,354.43 1,418,213.54 22,497,530.86 13,071,583.87
Interest payable
Dividend payable 2,441,814.54 533,156.00 2,053,911.36 533,156.00
Other accounts payable 48,540,469.58 40,668,104.84 51,929,364.03 51,184,849.13
Non-current liabilities due within one year
Other current liabilities 424,775.25 146,275.25 1,699,101.00 585,101.00
Total current liabilities 972,562,643.51 545,517,610.47 891,655,107.44 513,579,769.30
Non-current liabilities:
Long-term loans
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities
Deferred income tax liabilities
Other non-current liabilities 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 1,035,754,997.86 561,921,964.82 958,282,447.04 533,419,108.90
Shareholders’ equity
Share capital 350,014,975.00 350,014,975.00 350,014,975.00 350,014,975.00
Capital public reserve 582,263,299.25 582,263,299.25 582,077,996.49 582,077,996.49
Less: Treasury stock
Other comprehensive income 2,768,286.72 1,539,359.10 2,783,286.72 1,554,359.10
Specialized reserve
Surplus public reserve 534,598,750.04 534,598,750.04 505,533,065.25 505,533,065.25
Reserve for ordinary risk
Retained profit 478,277,167.69 383,073,258.57 466,608,867.00 372,591,025.04
Translation of foreign currency capital
Total owner’s equity attributable to parent
1,947,922,478.70 1,907,018,190.46
company
Minority interests 100,182,015.01 102,089,597.39
Total owner’s equity 2,048,104,493.71 1,851,489,641.96 2,009,107,787.85 1,811,771,420.88
Total liabilities and shareholder’s equity 3,083,859,491.57 2,413,411,606.78 2,967,390,234.89 2,345,190,529.78
6
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. July-September, 2014 Unit: RMB
July-September, 2014 July-September, 2013
Items
Consolidation Parent Company Consolidation Parent Company
I. Total sales 385,972,306.91 205,370,741.37 396,743,902.24 223,097,655.41
Including: Operating income 385,972,306.91 205,370,741.37 396,743,902.24 223,097,655.41
II. Total operating cost 381,515,521.43 203,036,458.99 386,522,513.74 221,052,477.74
Including: Operating cost 307,399,184.86 165,058,791.24 303,337,930.43 174,300,590.29
Taxes and associate charges 2,788,542.81 647,986.77 4,461,475.98 1,743,729.10
Selling and distribution expenses 32,878,647.58 14,909,344.46 32,016,233.11 21,410,374.01
Administrative expenses 39,634,020.28 24,873,565.82 47,333,770.30 26,311,433.19
Financial expense -1,559,843.08 -2,749,990.89 -2,032,980.87 -2,713,648.85
Impairment loss 374,968.98 296,761.59 1,406,084.79 0.00
Gain/(loss) from investment 23,744,327.82 25,779,440.29 25,737,496.89 27,977,496.89
Including: income form investment on
23,707,710.42 23,707,710.42 25,737,496.89 25,737,496.89
affiliated enterprise and jointly enterprise
III. Operating profit 28,201,113.30 28,113,722.67 35,958,885.39 30,022,674.56
Add: non-business income 965,010.50 646,821.73 954,638.82 668,374.82
Less: non-business expense 144,822.71 0.00 39,981.22 28,858.22
Including: loss from non-current asset
103,528.71 49,253.12 28,858.22
disposal
IV. Total profit 29,021,301.09 28,760,544.40 36,873,542.99 30,662,191.16
Less: Income tax 1,766,277.59 924,884.48 4,195,614.45 2,830,640.25
V. Net profit 27,255,023.50 27,835,659.92 32,677,928.54 27,831,550.91
Net profit attributable to parent company 29,752,319.43 27,835,659.92 29,912,693.72 27,831,550.91
Minority shareholders’ gains and losses -2,497,295.93 2,765,234.82
VI. Earnings per share --
(I) basic earnings per share 0.09 0.09
(II) diluted earnings per share 0.09 0.09
Ⅶ. Other comprehensive income 181,552.76 181,552.76
Including: Other consolidated income
items that could not be reclassified as
181,552.76 181,552.76
profit and loss in future accounting
periods
Other consolidated income
items that will be reclassified as profit and
loss in future accounting periods if the
required conditions are met
Ⅷ. Total comprehensive income 27,436,576.26 28,017,212.68 32,677,928.54 27,831,550.91
Total comprehensive income attributable
29,933,872.19 28,017,212.68 29,912,693.72 27,831,550.91
to parent company
Total comprehensive income attributable
-2,497,295.93 2,765,234.82
to minority shareholders
7
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January-September, 2014 Unit: RMB
January-September, 2014 January-September, 2013
Items
Consolidation Parent Company Consolidation Parent Company
I. Total sales 1,160,884,560.10 676,340,961.34 1,188,868,055.47 708,210,225.92
Including: Operating income 1,160,884,560.10 676,340,961.34 1,188,868,055.47 708,210,225.92
II. Total operating cost 1,144,529,486.07 663,366,315.46 1,156,146,737.71 693,919,583.96
Including: Operating cost 917,349,625.68 552,006,324.08 924,224,474.07 563,938,348.65
Taxes and associate charges 9,257,961.62 3,730,279.18 10,226,702.18 4,322,501.89
Selling and distribution expenses 81,780,048.09 40,100,568.05 78,397,576.46 47,055,067.16
Administrative expenses 129,396,802.64 75,455,195.37 134,317,920.02 77,451,911.80
Financial expense -5,357,527.91 -7,926,051.22 -4,118,097.70 -6,185,734.56
Impairment loss 12,102,575.95 6,950,043.24 13,098,162.68 7,337,489.02
Gain/(loss) from investment 80,078,586.56 84,213,699.03 69,808,111.40 76,861,316.51
Including: income form investment on
77,605,208.00 77,605,208.00 69,308,111.40 69,308,111.40
affiliated enterprise and jointly enterprise
III. Operating profit 96,433,660.59 90,238,301.67 102,529,429.16 91,151,958.47
Add: non-business income 6,015,005.67 4,941,172.05 6,245,247.78 5,183,510.63
Less: non-business expense 351,642.83 104,144.94 304,051.68 28,858.22
Including: loss from non-current asset
232,570.67 54,144.94 271,671.77 28,858.22
disposal
IV. Total profit 102,097,023.43 95,075,328.78 108,470,625.26 96,306,610.88
Less: Income tax 5,517,911.45 3,025,164.21 8,707,677.30 5,186,418.02
V. Net profit 96,579,111.98 92,050,164.57 99,762,947.96 91,120,192.86
Net profit attributable to parent company 96,229,952.71 92,050,164.57 95,035,128.72 91,120,192.86
Minority shareholders’ gains and losses 349,159.27 4,727,819.24
VI. Earnings per share --
(I) basic earnings per share 0.27 0.27
(II) diluted earnings per share 0.27 0.27
Ⅶ. Other comprehensive income 170,302.76 170,302.76 9,000.00 9,000.00
Including: Other consolidated income
items that could not be reclassified as
170,302.76 170,302.76 9,000.00 9,000.00
profit and loss in future accounting
periods
Other consolidated income
items that will be reclassified as profit and
loss in future accounting periods if the
required conditions are met
Ⅷ. Total comprehensive income 96,749,414.74 92,220,467.33 99,771,947.96 91,129,192.86
Total comprehensive income attributable
96,400,255.47 92,220,467.33 95,044,128.72 91,129,192.86
to parent company
Total comprehensive income attributable
349,159.27 4,727,819.24
to minority shareholders
8
CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January -September , 2014 Unit: RMB
January -September, 2014 January -September, 2013
Items
Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating
activities:
Cash received from selling commodities 851,537,934.57 474,792,566.98 921,464,764.13 573,065,703.41
and providing labor services
Write-back of tax received 310,429.35 724,117.82
Other cash received concerning operating 32,537,729.23 22,316,950.41 32,470,255.62 22,096,753.34
activities
Subtotal of cash inflow arising from 884,386,093.15 497,109,517.39 954,659,137.57 595,162,456.75
operating activities
Cash paid for purchasing commodities and 470,164,745.63 292,230,100.86 555,235,904.88 363,690,521.31
receiving labor service
Cash paid to/for staff and workers 215,417,674.47 132,645,347.80 204,922,365.59 128,447,335.28
Taxes paid 108,151,070.58 66,623,849.19 86,882,944.73 47,134,080.75
Other cash paid concerning operating 108,046,851.18 67,794,973.51 99,012,258.27 50,265,848.20
activities
Subtotal of cash outflow arising from 901,780,341.86 559,294,271.36 946,053,473.47 589,537,785.54
operating activities
Net cash flows arising from operating -17,394,248.71 -62,184,753.97 8,605,664.10 5,624,671.21
activities
II. Cash flows arising from investing
activities:
Cash received from recovering investment 15,286,617.40 15,286,617.40 500,365.79 500,365.79
Cash received from investment income 32,322,511.50 33,101,255.44 30,256,629.02 34,070,799.40
Net cash received from disposal of fixed, 10,138,930.00 10,000,000.00 40,266,830.00 40,000,000.00
intangible and other long-term assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning investing
activities
Subtotal of cash inflow from investing 57,748,058.90 58,387,872.84 71,023,824.81 74,571,165.19
activities
Cash paid for purchasing fixed, intangible 19,125,823.76 14,818,602.86 38,166,150.00 30,726,287.10
and other long-term assets
Cash paid for investment
Net cash received from payment of
subsidiaries and other business units
Other cash paid concerning investing
activities
Subtotal of cash outflow from 19,125,823.76 14,818,602.86 38,166,150.00 30,726,287.10
investing activities
Net cash flows arising from investing 38,622,235.14 43,569,269.98 32,857,674.81 43,844,878.09
activities
III. Cash flows arising from financing
activities
Cash received from absorbing investment
9
Including: Cash received from absorbing
minority shareholders' equity investment by
subsidiaries
Cash received from loans 47,100,000.00 37,000,000.00
Other cash received concerning financing 247,070.35 247,070.35
activities
Subtotal of cash inflow from financing 47,347,070.35 247,070.35 37,000,000.00
activities
Cash paid for settling debts 38,600,000.00 27,000,000.00
Cash paid for dividend and profit 56,601,962.48 52,502,246.10 56,662,639.55 52,502,246.25
distributing or interest paying
Including: Dividend and profit paid by 1,848,083.11 2,039,347.47
subsidiaries to minority shareholders
Other cash paid concerning financing 45,157.55
activities
Subtotal of cash outflow from 95,247,120.03 52,502,246.10 83,662,639.55 52,502,246.25
financing activities
Net cash flows arising from financing -47,900,049.68 -52,255,175.75 -46,662,639.55 -52,502,246.25
activities
IV. Influence on cash due to fluctuation in -361,135.12 3,019.52 -31,873.03 -40.29
exchange rate
V. Net increase of cash and cash -27,033,198.37 -70,867,640.22 -5,231,173.67 -3,032,737.24
equivalents
Add: Balance of cash and cash equivalents 502,339,160.35 431,494,649.19 525,818,735.46 437,725,268.74
at the period -begin
VI. Balance of cash and cash equivalents at 475,305,961.98 360,627,008.97 520,587,561.79 434,692,531.50
the period–end
10
