Stock Code: 000530; 200530 Short Form of the Stock: Daleng Gufen; Daleng B; No: 2017-016
Dalian Refrigeration Co., Ltd.
2016 Annual Report Summary
§1 Important Notes
This summary is extracted from the original of the annual report. For more information, the
investors are recommended to refer to the original.
Note to the “Non-standardized Opinion”
□Applicable √Inapplicable
The profit distribution proposal
√Applicable □Inapplicable
Transfer the capital reserve to increase capital stock
√Applicable □Inapplicable
The profit distribution proposal reviewed and adopted at this Board meeting of the Company is:
based on the total share capital of the Company of 611,776,558 shares, pay to all shareholders the
cash dividend of 1 yuan (inclusive the tax) and transfer to all shareholders the capital reserve to
increase capital stock, 4 shares for every 10 shares.
Company Profile
Short form of the stock DALENG GUFEN; DALENG-B
Stock code 000530; 200530
Listed stock exchange Shenzhen Stock Exchange
Authorized representative in charge of
Contact persons Secretary of the Board of Directors
securities affairs
Name Song Wenbao Du Yu
DALENG GUFEN Securities﹠ DALENG GUFEN Securities﹠Legal
Legal Affairs No.106, Liaohe East AffairsNo.106, Liaohe East Road,
Contact address
Road, Dalian Economic and Dalian Economic and Technological
Technological Development Zone Development Zone
Telephone 0411-87968130 0411-87968822
Fax 0411-87968125 0411-87968125
E-mail 000530@bingshan.com 000530@bingshan.com
§2 The Company’s Main business during the reporting period
The Company, as the largest industrial refrigeration equipment production enterprise in China, is
committed to developing the business of industrial refrigeration, food freezing and cold storage,
central and commercial air-conditioning, refrigeration components and engineering service, have
covered the key areas of the refrigeration industrial chain and forged the most complete cold and
hot industrial chain in China.
§3 Summary of Accounting Data and Financial Indexes
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3.1 Main accounting data (Unit: RMB Yuan)
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?
□Applicable √Inapplicable
Increase/decrease compared
2016 2015 2014
with previous year
Operating revenue 1,779,499,226.64 1,607,518,439.61 10.70% 1,425,715,596.96
Net profit attributable to shareholders of
178,632,660.24 129,947,307.39 37.47% 115,439,722.39
listed companies
Net profit attributable to the
shareholders of listed companies after
145,227,418.21 126,122,809.25 15.15% 105,435,245.61
the deduction of non-recurring profit
and loss
Net cash flow from operating activities -7,706,320.22 -50,568,474.38 84.75% 28,495,772.47
Basic earning per share 0.31 0.24 29.17% 0.22
Diluted earnings per share 0.31 0.24 29.17% 0.22
Weighted average return on net asset decrease 0.51 percentage
5.87% 6.38% 5.98%
yield point
Increase/decrease compared At the end of
At the end of 2016 At the end of 2015
with previous year 2014
Total assets 4,983,511,574.26 4,082,499,864.42 22.07% 3,053,930,248.25
Owner's equity attributable to
3,247,797,768.92 2,647,609,091.41 22.67% 1,967,027,256.13
shareholders of listed companies
3.2 The quarter main financial indicators (Unit: RMB Yuan)
The first quarter The second quarter The third quarter The fourth quarter
Operating revenue 400,592,922.66 379,326,941.37 471,165,234.36 528,414,128.25
Net profit attributable to shareholders of
25,527,518.21 41,959,768.63 64,264,334.88 46,881,038.52
listed companies
Net profit attributable to the shareholders
of listed companies after the deduction of 25,497,476.68 36,412,981.35 38,183,454.01 45,133,506.17
non-recurring profit and loss
Net cash flow from operating activities -89,736,770.51 46,524,738.11 -15,216,952.20 50,722,664.38
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§4 Share Capital and Shareholders' Information
4.1 Statement of shares held by the top ten shareholders
Total number of shareholders in the Total number of shareholders as of the 5th trading day
36,246 41,152
reporting period before disclosure of the annual report
Shareholding of top ten shareholders
Number of Number of
shares with pledged
Name Nature Proportion Total number
sale shares or
restriction shares frozen
Domestic
Dalian Bingshan Group Co., Ltd. non-state-owned legal 19.96% 122,083,524 0 0
person
Sanyo Electric Co., Ltd. Overseas legal person 8.58% 52,502,250 0 0
Industrial Securities Golden Kylin No. 2 Colle
Others 2.79% 17,063,257 7,280,081 0
ctive Asset Management Plan
Zheshang Juchao New thinking hybrid securities
Others 1.81% 11,044,457 0 0
investment fund
National Social Security Funds 104 Portfolio Others 1.32% 8,100,000 5,864,510 0
BCM-Changxin quantitative hybrid securities
Others 1.21% 7,416,235 0 0
investment fund
National Social Security Funds 503 Portfolio Others 0.96% 5,864,510 5,864,510 0
Caitong Capital Kunze No. 2 Securities
Others 0.96% 5,864,509 5,864,509 0
vInestment Fund
Shenzhen B & D Capital Fengnian Jinjia No. 1
Others 0.96% 5,864,509 5,864,509 0
Fund
Zheshang Juchao industry grow hybrid securities
Others 0.77% 4,701,826 0 0
investment fund
Dalian Bingshan Group Co., Ltd. had the association relationship with Sanyo
Notes to the associated relationship and uniform
Electric Co., Ltd. among the above shareholders. Sanyo Electric Co., Ltd. holds
actions of the above shareholders
26.6% of Dalian Bingshan Group Co., Ltd.'s equity.
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4.2 Particulars about controlling shareholders and actual controller of the Company
Commission of Dalian Municipality Government
State-owned Assets Supervision and Administration
Dalian State-owned Assets Management Co., Ltd.
Dalian Equipment Manufacture Investment
Dalan Zhonghuida Refrigeration
Sanyo Electric Co., Ltd.
Yida Group Co., Ltd.
Dayang Co., Ltd.
Technology Co., Ltd.
Co., Ltd.
100% 100%
22.2% 4.4% 13.3% 13.3% 20.2% 26.6%
Dalian Bingshan Group Co., Ltd.
19.96%
Dalian Refrigeration Co., Ltd.
§5 Management discussion and analysis
5.1 Business review for 2016
In 2016, based on operation policy of “leading innovation and creating value”, and theme as
“innovation, improvement and enhancement”, the Company kept a firm grasp on
innovation-driven and industry-finance combination, operation-oriented, under the help of capital
operation, created an industry development mode, accelerated research on technologies,
strengthen plans of removal and reconstructed, speed up capital resource integration and
foundational management improvement, enhanced competitive power and operation efficiency,
strived to achieve main operation target and made it growth on a favorable way in the future.
In 2016, the Company realized operating income of RMB 1,779.5 million, representing 98.86% of
the annual plan of RMB 1,800 million and a year-on-year increase of 10.70%; realized total profit
of RMB 188.18 million, representing 121.41% of the annual plan of RMB 155 million and a
year-on-year increase of 38.42%.
The Company positively advanced the application and promotion of new products and
technologies during reporting period. Petrochemical screw compressor, CO2 helical lobe
compressor, falling-film semi-closed water cooled screw chiller and CO2 evaporator condenser
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have been designed and commercialized. The R&D and application project of pressure
pre-cooling and ice-temperature fresh-keeping technology passed the sci-tech achievements
evaluation organized by Chinese Association of Refrigeration. 863 projects—high-capacity cold
water cooling, quick freezing and smart fish processing system through the review from technical
expert group of MOST(Ministry of Science and Technology). Marine screw compressor was
identified by prototype of new-products and new-technology.
In reporting period, the Company proceeded with the removal and reconstruct in an orderly
manner. The private placement was implemented successfully, which guaranteed the capital needs
of removal and reconstruct. The technical layout and plans in new plants had been optimized
pursuit to the intelligent manufacturing plan. The intelligent construction of new plant was
implemented smoothly.
Capital resource integration was performed actively in reporting period. Purchased 70% shares of
Sanyo Meica for improving the intelligent standards of the products by changed it to be a
wholly-owned subsidiary from associated enterprise; acquired 5% shares of Bingshan Ryosetsu
and capital increment for creating a manufacturing base of cryogenic quick freezers by changed it
to be a wholly-owned subsidiary from controlling subsidiary; setting up Panasonic Appliances
Refrigeration for clients in aspect of solving the fluorine cold-chain system with purpose of
meeting the rapidly growth needs of low-temperature logistics market in China; invested in Fuji
Bingshan for facing the market opportunity of growing vending machine in China by improved
capacity up to 100,000 sets per year from 50,000 sets per year so far.
On smooth unlock for the first stock incentive plan basis, the Company promoted the second
equity incentive plan, and the technical backbone and sales backbone were included in the
incentive plans, further to extend coverage for improving the growth incentive and favorable
potential development of the Company.
In reporting period, ORC screw expander units and reek screw expander units of the subsidiary
–Wuhan New World Refrigeration are in the series promotion stage; the first two-stage screw
pressure energy power of the natural gas pipeline network and cold energy recovery system had
started up successfully in Fushimen Station, Quzhou, Zhejiang, and successfully passed the
72-hour industrial commissioning acceptance; high-pressure screw compressor Ammonia
high-temperature heat pump units and low-pressure screw blower finished the prototype
production; the model points of new products have completed the area layout in China basically,
operation venue from new products are growth dramatically, the strategy transition was resolutely
implemented.
Subsidiary–Bingshan Engineering increased capital and upgrade the qualification in reporting
period, actively created new marketing business mode and focus on promoting the integrated
solutions, thus orders have a huge growth on a y-o-y basis. Solutions for the large-low-speed wind
tunnel, agricultural product’s cold chain, super-low temperature cold storage and air management
system of new energy are recognized by the market. Bingshan Engineering successfully wan the
bidding of largest frozen beer station project, the monomer cold storage refrigeration system
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project- the most cold chain logistic project, at the same time, the project promotes the new
products and new operational types of projects as centrifuge, CO2 cascade system, cast steel
compressor, electric heating reform and valley electricity energy-storage are being implemented.
Subsidiary–Bingshan Service’s ERP system has officially launched in reporting period, remote
monitoring users grew rapidly, service standards were improved efficiently, the service industry
exploit in a order way. Accessories income continued to growth, and the remote monitoring
on-line broke through 100.
Subsidiary–Bingshan Guardian optimized the internet of cloud management platform and
intelligent plant energy management system in reporting period, developed many new products of
intelligent controller of the internet, further to strength the leading position in technology within
the field.
Subsidiary–Bingshan Air-conditioner started with the clients of medical and auto industry AC, got
to the root of environmental needs, actively participated in relevant project with air treatment
concerned. The sales revenue from new field and new products of VOCs waste gas treatment and
new energy air management system were presenting more than 30%, which made a key role in
promoting the business targets.
The associated company–Panasonic Compressor successfully developed the market in rail transit
AC, the sales of horizontal scroll compressor for electric passenger cars use were enlarging
continually based on an advance technology. Accumulative sales of horizontal scroll compressor
have broken 100,000 sets, and became the new efficiency growth point. Aggressively expanded
into overseas market with a good achievements, India and North America in particular. Completed
R&D for E-scroll compressor, and put them into production, in field of household AC, officially
transformed and upgraded from B products to E products. Participated in national standards
setting of the AC compressor for electric vehicles, and honored the second prize of modern
management achievement for national enterprise management.
The associated company–Panasonic Cold Chain aggressively expanded into the Blue Ocean
market complying with the requirements change. Created high-end commercial merchandise of
new retail model with Charoen Pokphand Warehouse Club. Eyed on the growth development of
community fresh supermarket and convenience store, the company entered into new clients with
C-Store, CITIC Guoan and Shanxi Tang Jiu in a row. The bulk ultra-cold storage freezer
MDF-682 – independent research and development, has officially offline. Operating temperature
achieved -86℃, the core products in healing domain, the biological medicine entered into a
rapidly growth. Industrialization of the inherent market service has steady developed, and signed
the Qualify for Maintenance Agreement with Wal-Mart, Carrefour and Metro.
The single largest distributed energy project- CCHP in Harbin Airport was successfully landed by
the associated company- Panasonic Refrigeration in reporting period, made a better integrated
solutions for the clients. The performance test result for self-development direct combustion grade
1 unit of energy efficiency has reached the standard, with better cost performance, leading in
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industry and more strength competition in market. ‘Refrigeration technique of circulative
ammonia water-heat source”, which took the lead in research & development, honored the first
prize of S&T innovation and creation of the Second China’s Coking Industry S&T Conference.
Signed a strategic cooperation agreement with SBW and Beijing Gas and Heating Engineering
Design Institute , for expanding the distributed energy market vigorously.
The associated company-Panasonic Appliances Refrigeration integrated relevant resources from
Panasonic Cold Chain and Panasonic Compressor’s Fluorine cold-chain system effectively in
reporting period, improved sales channel, optimized design team, reinforced engineering
construction and after-sale services, offered a better integrated solutions of Fluorine cold-chain
system for the clients. Relying on technological superiority, Panasonic Appliances Refrigeration
succeeded in obtaining the order of Central China Cold Fresh Port—the biggest cold storage of
garden stuff forced-air pre-cooling apparatus so far.
In reporting period, the associated company–Fuji Bingshan upgraded intelligent products,
non-cash payment and remote controlling system becoming the norm, sales broke 30,000 sets and
revenue and net profit have a continued favorable growth. By customized solutions, exploited new
VIP client-Wahaha, the client base of drinks has expanded. The intelligent white spirit vending
machine has completed in development, and entered into the field of white spirit retail. Large food
machine and coffee machine started operation in a limited quantity. Body welding automatic line
came into use, and the efficiency higher up to 100%. Construction of second plant were
implemented in a order way, and double capacity has a steady progress.
The associated company-Keinin-Grand Ocean, depending on excellent quality and cost advantage,
sales performance created new high again. On base of the rectification completion on line 1 and 2,
started the reforming projects of fully automatic unmanned installed spares, stitching, welding and
assembly, continued to improve the quality of products.
5.2 Major change or adjustment in the Company's main business in the reporting period
□Applicable √Inapplicable
5.3 Main business structure
√Applicable □ Inapplicable
Increase/decrea Increase/decreas
Gross se of operating e of operating Increase/decrease of
Product name Operating revenue Operating profit revenues on a profit on a gross profit on a
profit year-on-year year-on-year year-on-year basis
basis basis
Refrigeration and Decrease 0.63
air-conditioning 1,759,247,556.50 1,448,130,516.25 17.68% 10.58% 11.44%
equipment percentage points
5.4 Is there a need to pay particular attention to the operation of seasonal or cyclical features?
□Applicable √Inapplicable
5.5 Major change in the Company's business revenue, business cost, or net profit attributable to
shareholders of listed companies in the reporting period
□Applicable √Inapplicable
5.6 Face suspension of listing and termination of the listing
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□Applicable √Inapplicable
§6 Matters related to financial report
6.1 Change in accounting policies, accounting estimates and accounting methods compared with
the financial statements of the previous year
√Applicable □Inapplicable
According to the Provisions of Treatments on Value-Added Tax (Cai Kuai [2016] No.22) issued
from Ministry of Finance, the property tax, land holding tax, stamp tax and vehicle & vessel usage
tax, which are reckoned under Administration Expense and operating cost, will list under the item
of Taxes and surcharge, for those occurred after 1 May 2016.
6.2 Correction of major accounting mistakes in the reporting period, which should be retroactively
restated
□Applicable √Inapplicable
6.3 Explanation on change of consolidation scope in the report period compared with the latest
annual report
√Applicable □Inapplicable
This year, there are 3 more entities were included in the scope of consolidation, they are Dalian
New Meica Electrical Technology Co., Ltd, Dalian Bingshan P&A Recreation Development
Engineering Co., Ltd., and Shanghai Bingshan Technical Service Co., Ltd, and one entity which is
Dalian Bingshan Metal Processing Co., Ltd is excluded at the year end.
The 3rd meeting of the 7th generation of board of directors approved to accept the 70% of
shareholding transfer from Dalian New Meica Electrical Technology Co., Ltd, a holding
subsidiary, hence, Dalian New Meica Electrical Technology Co., Ltd, has become the fully owned
subsidiary after transfer. The transaction stated above has been completed by 31st December 2016.
Hence, the Company holds 100% shareholding of Dalian New Meica Electrical Technology Co.,
Ltd when preparing the consolidated statements.
At the 5th meeting of the 7th generation of board of directors, the company and Hong Kong P&A
Water Project Co., Ltd both respectively transferred 50% shareholdings of Dalian Bingshan P&A
Recreation Development Engineering Co., Ltd. to the fully owned subsidiary, Dalian Bingshan
Group Engineering Co., Ltd. After that, the company would not hold any shares of Dalian
Bingshan Group Engineering Co., Ltd any longer, and the fully owned subsidiary, Dalian
Bingshan Group Engineering Co., Ltd would have 100% shareholdings of Dalian Bingshan P&A
Recreation Development Engineering Co., Ltd.. The transactions stated above have been
completed by 31st, December 2016.
The board meeting of Dalian Bingshan Group Engineering Co., Ltd, a subsidiary of the company,
approved Dalian Bingshan Group Engineering Co., Ltd and Shanghai QingNeng Cold Chain
Equipment Co., Ltd jointly invested and constructed Shanghai Bingshan Technical Service Co.,
Ltd. Dalian Bingshan Group Engineering Co., Ltd invested 5,100,000Yuan, and held 51%
shareholding. Shanghai Bingshan Technical Service Co., Ltd has been formally operated by 31st
December 2016.The 15th meeting of the 6th generation of board approved that Dalian Bingshan
Ryosetsu Quick Freezing Equipment Co.,Ltd., a holding subsidiary, acquired Dalian Bingshan
Metal Processing Co., Ltd which is a fully owned subsidiary. After the merger, Dalian Bingshan
Quick Freezing Equipment Co., Ltd would be the survival company, The transaction stated above
has completed by 31st December 2016.
6.4 Explanation of the Board of Directors to the “Non-standardized Opinion”
8
□Applicable √Inapplicable
Board of Directors of Dalian Refrigeration Co., Ltd.
April 22, 2017
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