Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Dalian Refrigeration Co., Ltd.
2017 Semiannual Report
August, 2017
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Dalian Refrigeration Co., Ltd. 2017 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 directors have attended this Board meeting of the Company.
There is no significant risk having adverse influence on attainment
of the Company's future development strategy and business
targets.The paragraph "Discussion and Analysis of the Business
situation" in Section 4 of this Annual Report describes major risks
the Company may be confronted with, the risk of the market
promotion for new product. See the related sections for the
countermeasures to be taken by 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 Mr. Ma Yun, 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. 2017 Semiannual Report
CONTENTS
2017 Semiannual Report..............................................................................1
Section 1 Important Notice, Table of Contents, and Definitions.................2
Section 2 About the Company ………………………………………….... 5
Section 3 Tthe Company's business profile……..........................................7
Section 4 Discussion and Analysis of the Business situation.......................8
Section 5 Important Issues..........................................................................12
Section 6 Change in Share Capital and Shareholders' Information............15
Section 7 Information on Preferred Stock..................................................17
Section 8 Information on the Company’s Directors, Supervisors, Senior
Management...............................................................................................18
Section 9 Financial Report.........................................................................19
Section 10 Contents of Reference Documents...........................................97
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Definitions
Defined item Meaning
Reporting period Stands for From Jan. 1, 2017 to Jun. 30, 2017
The Company, this Company Stands for Dalian Refrigeration Co., Ltd.
Wuhan New World Refrigeration Industries Co., Ltd., one of the
Wuxin Refrigeration Stands for subsidiary of the Company where the Company holds 100% of its
shares.
Dalian Bingshan Group Engineering Co., Ltd ， one of the
Bingshan Engineering
Stands for subsidiary of the Company where the Company holds 100% of its
Company
shares.
Bingshan technical service (dalian) Co., Ltd.one of the subsidiary of
Bingshan service Company Stands for
the Company where the Company holds 100% of its shares.
Dalian Bingshan Engineering & Trading Co., Ltd. one of the
subsidiary of this Company, where the controlling shareholder of the
Bingshan Engineering &
Stands for Company holds 76% of its shares before,one of the subsidiary of the
Trading
Company where the Company holds 100% of its shares since April
2017.
Changzhou Jingxue Freezing Equipment Co., Ltd. Now renamed as
Jiangsu JingXue Insulation Technology Co., Ltd. one of the mutual
Jiangsu Jingxue Stands for
shareholding companies with this Company, where the Company
holds 29.212% of its shares
Panasonic Compressor (Dalian) Co., Ltd., one of the mutual
Panasonic Compressor Stands for shareholding companies of the Company, where the Company holds
40% of its shares.
Panasonic Cold-Chain (Dalian) Co., Ltd., one of the mutual
Panasonic Cold-Chain Stands for shareholding 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.
Dalian Bingshan Metal Technology Co., Ltd.,one of the mutual
shareholding companies of the Company ,the Company holds 49%
Bingshan Metal Technology Stands for
of its shares since April 2017, where the controlling shareholder of
the Company holds 49% of its shares before.
Dalian Bingshan Wisdom Park Co., Ltd ， one of the mutual
Bingshan Wisdom Park Stands for shareholding companies with this Company, where the Company
indirect holds 19.6% of its shares.
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Dalian Refrigeration Co., Ltd. 2017 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 Du Yu
DALENG GUFEN Securities﹠Legal Affairs DALENG GUFEN Securities﹠Legal
Address No.106, Liaohe East Road, Dalian Economic and AffairsNo.106, Liaohe East Road, Dalian
Technological Development Zone Economic and Technological Development Zone
Tel. 0411-87968130 0411-87968822
Fax 0411-87968125 0411-87968125
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
DALENG GUFEN Securities﹠Legal Affairs No.106, Liaohe East
Registered address
Road, Dalian Economic and Technological Development Zone
Postcode of the Registered address 116630
DALENG GUFEN Securities﹠Legal Affairs No.106, Liaohe East
Office address
Road, Dalian Economic and Technological Development Zone
Postcode of the Office address 116630
Internet web site of the Company www.daleng.cn
E-mail of the Company 000530@bingshan.com
Date of disclosure March 25,2017
Query indexes http://www.cninfo.com.cn
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 2016 for details.
IV. 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?
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
√ Yes □ No
Increase/decrease compared
2016.1-6
item 2017.1-6 with previous year (%)
Before adjustment After adjustment After adjustment
Operating revenue 1,002,378,717.50 779,919,864.03 830,873,999.65 20.64%
Net profit attributable to shareholders of
98,260,163.09 67,487,286.84 70,632,718.91 39.11%
listed companies
Net profit belonging to the shareholders of
listed companies after the deduction of 69,960,863.49 61,910,458.03 65,055,890.10 7.54%
non-recurring profit and loss
Net cash flow from operating activities -148,577,541.90 -43,212,032.40 -51,268,538.89 -189.80%
Basic earning per share 0.115 0.120 0.089 29.21%
Diluted earnings per share 0.115 0.120 0.089 29.21%
Weighted average return on net asset yield 2.95% 2.52% 2.64% Increase 0.31 percentage points
Increase/decrease compared
At the end of At the end of 2016
with previous year（％）
2017.6.30
Before adjustment After adjustment After adjustment
Total assets 5,372,939,781.32 4,983,511,574.26 5,095,986,440.32 5.43%
Owner's equity attributable to shareholders
3,309,730,421.64 3,247,797,768.92 3,301,087,748.86 0.26%
of listed companies
V.1.Difference of accounting data between as per Chinese accounting standards
and as per International Accounting Standards
□ Applicable √ Not applicable
2. Difference of accounting data between as per Chinese accounting standards and
as per Foreign Accounting Standards
The difference of accounting data between as per Chinese Accounting Standards and as per
International Accounting Standards was 0.
VI. Non-recurring profits and losses and their amounts
item Amount
Disposal gains and losses of non-current asset 127,853.00
Tax returned/reduced by chance 1,115.75
Government subsidies included in current profit or loss 5,521,986.23
Earnings from the Company get subsidiaries, associated companies and joint
venture investment cost less than get investment should enjoy the invested entity 27,467,019.93
produced by the fair value of the identifiable net assets yield
Other non-operating revenue or expense 279,299.90
Influence on income tax 5,079,406.26
Influence on minority shareholders 18,568.95
Total 28,299,299.60
During the reporting period,the Company sold 1.5 million shares of guotai junan, the income from
investment is 27,467,019.93 yuan.
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Section 3 The Company's Business profile
I. 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.
II. Major changes in main assets
1. Major changes in main assets
Main assets Explain for major changes
Significantly increased compared to the same period, mainly due to the increase in fixed assets changing from new
Fixed assets
factory buildings
Construction in Significantly decreased compared to the same period, mainly due to the increase in fixed assets changing from the new
progress factory investment.
Significantly decreased compared to the same period, mainly due to the increase in foreign investment of the company
Monetary funds
during the reporting period, and the the investment in raised funds after non-public offering of shares in the same period.
2. The main overseas assets
□ Applicable √ Not applicable
III. 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, interacts positively between the
integration of internal resources and business model innovation, and has formed a unique
development pattern appropriate to itself and the industry.
In the reporting period, the Company's core competence above-mentioned was improved further.
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Section4 Management discussion and analysis
I. Summary
In the first half of 2017, the Company focused on "activating, integrating and promoting",
maintained strategic strength, activated endogenous power, integrated system resources, brought
together competencies, promoted operational quality and efficiency, and strived to achieve key
business targets. In the first half of 2017, the Company achieved operating income of 1,002.38
million Yuan, with a year-on-year growth of 20.64%; achieved a total profit of 104.9 million Yuan,
with a year-on-year growth of 36.95%.
During the reporting period, the Company succeeded in completing the overall removal and
reconstruction, the intelligent, environmental, efficient and safe new plant was put into use. On May
7, 2017, the Company's new plant – Bingshan Double D Port Industrial Park officially opened. On
June 26, 2017, Premier Li Keqiang went to the Company's new factory for field research and gave
positive evaluation.
During the reporting period, the Company's subsidiary Wuxin Refrigeration basically completed the
nationwide regional distribution for the demonstration of its new products, the income of new
products increased by more than 50% on a year-on-year basis, the strategic transformation results
are obvious. Based on the successful launch of China's first set of natural gas pipeline pressure
energy for generating electricity and cold energy recovery system, multiple application projects in
many places were proceeding orderly by technology marketing and government marketing.
During the reporting period, the Company's subsidiary Bingshan Engineering Company continued
to deepen the market segmentation, and the orders in cold chain logistics, fishing industry, beer
dairy products, fine chemicals and other fields achieved great growth. Signed natural gas distributed
energy sources electromechanical general contract with Jiangsu Runchang, the total contract amount
was about 160 million Yuan. And signed the first high-end indoor snow field project with
Guangzhou Wanda, snow and ice business achieved a new breakthrough.
During the reporting period, the Company’s subsidiary Bingshan Service Company flexibly used
Bingshan internet of things cloud platform, actively expanded new service business fields, and
signed the first machine room hosting contract with Tianjin Ershang which initiated the machine
room hosting of large-scale ammonia system in the refrigeration industry, the maintenance income
had a year-on-year growth of more than 50%.
During the reporting period, the horizontal scroll compressor for rail transit air conditioning newly
developed by the Company's related Company Panasonic Compressor has been well expanded in
subway, light rail and other fields. It also achieved new results in the expansion of overseas market,
the income in European market increased by about 50% on a year-on-year basis. Impact by the
state’s policies of reorganizing the electric bus market and cutting down the subsidies, the sales
volume of horizontal scroll compressor for electric bus sharply reduced, coupled with the rapid rise
in the price of bulk raw materials, the net profit greatly declined on a year-on-year basis.
During the reporting period, the Company's related Company, Panasonic Cold Chain, conformed to
the new trend of consumption and actively expanded and subdivided the blue ocean market. The
convenience store business, new developed SF and Beijing 7-11 and other customers, and the
income achieved a year-on-year growth of 28%. Biomedical care, medical ultra-low temperature
refrigerator, blood refrigerator, incubator and other new products in the hospitals, blood stations,
and scientific research and other fields have achieved application breakthroughs, and the income
achieved a year-on-year growth of more than 50%.
During the reporting period, the Company's related Company Fushi Bingshan fully realized the
intelligent upgrading of products, and the product diversification has taken a solid step. In addition
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
to beverage machine, the large food machine, coffee machine, liquor machine, box lunch machine
and other new models have completed development and began mass production. The world-leading
intelligent manufacturing new plant for vending machine has been constructed and put into
operation; the production capacity has been doubled and can better respond to the rapid growth of
unmanned vending machine.
During the reporting period, based on the overall positioning of cold and hot industrial investment
platform, the Company increased the capital operation, and implemented the first batch of
acquisition to high-quality assets of controlling shareholders. The acquisition has been completed by
the end of April 2017, and the Company currently holds 100% stake in BSET and 49% stake in
Bingshan Metal Technology.
During the reporting period, the Company has rented out both land and housing of old factory to
Bingshan Wisdom Park Company for its construction and development. Bingshan Wisdom Park
shall center on the intelligent science and technology, focus on breaking through the internet of
things, big data applications, wisdom recuperation, wisdom education and other fields, strive to
build Bingshan industrial ecosphere, and create new engine for business growth.
II. Analysis of main business
Main financial data variations as compared to the same period of last year
Monetary unit: RMB Yuan
Increase or decrease
Same period of
Report period from the same period Reason for variation
last year
of last year
Operating revenue 1,002,378,717.50 830,873,999.65 20.64%
Operating cost 817,281,905.05 668,264,784.49 22.30%
Selling and distribution expenses 43,854,411.28 42,351,876.57 3.55%
Administrative expenses 109,566,823.88 108,150,791.47 1.31%
The exchange gains of the
company’s subsidiary
Financial expenses 2,994,727.94 1,531,833.61 95.50% Bingshan Engineering &
Trading in the same period of
last year is larger
Income tax 6,161,546.29 5,537,970.33 11.26%
The cash paid for purchasing
Net cash flow coming from
-148,577,541.90 -51,268,538.89 -189.80% commodities and receiving
operating activities
labor service increased
Net cash flow coming from Cash paid for investment
-207,575,313.90 -41,156,797.85 -404.35%
investment activities increased
the raised funds 560 million
Net cash flow coming from
108,033,298.11 771,474,292.38 -86.00% after non-public offering of
fund-raising activities
shares in the same period.
Net increase in cash and cash
-248,795,325.48 679,769,831.26 -136.60%
equivalents
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.
Main business structure
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Monetary unit: RMB yuan
Increase/decrease of Increase/decrease Increase/decrease of
operating revenues of operating costs gross profit from the
Operating revenue Operating costs Gross profit
from the same period from the same same period of last
of last year period of last year year
By industry
Refrigeration and Decrease1.39 perce
987,663,610.92 810,698,503.30 17.92% 19.99% 22.07%
air-conditioning ntage points
Increase 8.35 perce
Others 14,715,106.58 6,583,401.75 55.26% 89.16% 59.41%
ntage points
By product
Refrigeration and
Decrease1.39 perce
air-conditioning 987,663,610.92 810,698,503.30 17.92% 19.99% 22.07%
ntage points
equipment
Increase 8.35 perce
Others 14,715,106.58 6,583,401.75 55.26% 89.16% 59.41%
ntage points
By region
Decrease1.10percent
Northeast China 787,815,543.06 638,069,794.27 19.01% 10.65% 12.17%
age points
Decrease12.73
East China 33,257,952.38 30,168,028.13 9.29% 525.27% 627.37%
percentage points
Increase 2.56
Central China 88,132,066.23 71,445,667.04 18.93% 91.88% 86.00%
percentage points
Increase 0.78
Overseas 93,173,155.83 77,598,415.61 16.72% 37.73% 36.45%
percentage points
III. Analysis of the non-main business
□ Applicable √ Not applicable
IV. Analysis of assets & liabilities
1. Remarkable change in assets
Monetary unit: RMB yuan
30-6-2017 30-6-16
Proportion
Proportion to Proportion increase/decrease
Amount to the total Amount
the total assets
assets
Monetary funds 469,049,698.39 8.73% 921,341,559.47 19.12% Decrease 10.39 percentage points
Accounts receivable 903,229,293.38 16.81% 800,671,319.79 16.62% Increase 0.19percentage points
Inventories 413,011,874.26 7.69% 293,140,904.67 6.08% Increase 1.61 percentage points
Investment property 88,435,542.39 1.65% 24,191,921.50 0.50% Increase 1.15 percentage points
Long-term equity
1,507,902,442.59 28.06% 1,216,177,395.25 25.24% Increase2.82 percentage points
investment
Fixed assets 742,865,721.32 13.83% 431,589,357.99 8.96% Increase4.87percentage points
Construction in
107,488,807.06 2.00% 179,319,154.71 3.72% Decrease 1.72percentage points
progress
Short-term loans 215,319,700.00 4.01% 162,600,000.00 3.37% Increase 0.64 percentage points
Long-term loans 160,000,000.00 2.98% 160,000,000.00 3.32% Decrease 0.34 percentage points
2. assets & liabilities which are measured by fair value
√ Applicable □ Not applicable
Finance asset held available for sales in fair value Changes in fair value included in the rights and
interests of the cumulative of the current period is 531,653,458.05 yuan，the final number is
555,798,336.45 yuan.
V. Analysis of investments
1. External equity investments
(1) External investments
External investments
Investment in the report period (yuan) Investment in the same period of last year (yuan) Amount of variation
1,507,902,442.59 1,216,177,395.25 23.99%
2.The significant equity investment during the reporting period
√ Applicable □ Not applicable
During the reporting period ,49 percent equity of Bingshan Metal Technology held by Bingshan
Group was transferred to the Company. The details see the announcement on China Securities, HK
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Commercial Daily and Cninfo website on February 16,2017
3 The significant non-equity investment during the reporting period
□Applicable √Not applicable
4.The financial asset investment
(1) the securities investment
□Applicable √Not applicable
(2) Derivative investment
□Applicable √Not applicable
During the reporting period, the Company does not exist derivative investment.
5. The use of funds raised
√ Applicable □Not applicable
During the reporting period, the use of funds raised of the Company please see< the special report
of 2017 semi-annual use and deposit of funds raised>which published on http//www.cninfo.com.cn
on August 26,2017.
VI. The material assets and equity sale
1. The material assets sale
□Applicable √Not applicable
2. The material equity sale
□Applicable √Not applicable
VII. Analysis of major subsidiary companies and mutual shareholding companies
√ Applicable □ Not applicable
Operating Operating
registered total assets net Profit Net profit
Company name Type The main business income
capital ( yuan) assets( yuan) ( yuan)
( yuan) （yuan）
participating JPY 4,000
Fuji Bingshan Vending Machine 462,114,429.55 363,486,181.90 281,314,832.40 42,126,232.55 35,811,680.85
company million
Panasonic participating Refrigeration and JPY 6,200
1,868,938,586.80 1,165,876,208.10 740,643,397.50 59,793,229.44 50,867,695.06
Compressor company air-conditioning million
Subsidiary companies obtained or disposed in the reporting period
√Applicable □ Not applicable
the way of obtained or disposed
Name Subsidiary companies in the reporting The impact on overall production and performance
period
Through this equity integration, the company will have independent export
Dalian Bingshan Engineering Business combination under the sales channels, further increase the overseas market sales and service system
& Trading Co., Ltd same control construction, and combine the commercialization with professionalization to
achieve the sustainable development of international market.
VIII. The structured corporate bodies which the Company controlled
□Applicable √Not applicable
IX.Estimation of the business performance for Jan.-Sept., 2017
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
X. Main risks the company faces and response measures
Risk of slightly high accounts receivable.
Response measures: place extra emphasis on controlling increment and reducing stock, further
strengthen the management of accounts receivable. Control the amount of new accounts receivable
by full payment for picking up goods, reducing or canceling quality guarantee deposit, and taking
bank credit tool as a guarantee, etc. Establish special creditor's rights management agencies, develop
special solutions, and strengthen the debt-cleaning for accounts receivable with a long period.
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Section 5 Important Issues
I. Shareholders’ general meeting convened in the reporting period
1. Shareholders’ general meeting within this reporting period
The proportion of
Session number of meeting The type of the meeting date Disclosing date Disclosing index
participate investors
st
The 1 Extraordinary Shareholders’ General extraordinary Shareholders’ March http://www.cnin
30.31% March 8,2017
Meeting of 2017 general meeting 7,2017 fo.com.cn
2016 Annual Shareholders’ May http://www.cnin
30.75% May 20,2017
Annual Shareholders’ General Meeting General Meeting 19,2017 fo.com.cn
II. Profit distribution and dividend payment
□ Applicable √ Not applicable
III. Commitments of the Company or its shareholders holding 5% or higher of the shares in
the reporting period or carried to the reporting period
□ Applicable √ Not applicable
IV. Engagement and dismissal of the accounting firm
□ Applicable √ Not applicable
V. Explain to the “non standard audit report” of this reporting period
from the board of directors, board of supervisors of the Company
□Applicable √Not applicable
VI. Explain to the “non standard audit report” last year from the board of
directors of the Company
□Applicable √Not applicable
VII.Bankruptcy restructuring related matters
□ Applicable √ Not applicable
There were no bankruptcy restructuring related matters to the Company in the reporting period.
VIII. Major lawsuit issues
□ Applicable √ Not applicable
The Company had no major lawsuit issues in the reporting period.
IX. Punishment and rectification
□ Applicable √ Not applicable
X. the credibility of companies and its controlling shareholder, actual controller
□ Applicable √ Not applicable
XI. The implementation and effect of equity incentive
√Applicable □ Not applicable
The 2015 restricted stock incentive plan has been implemented and completed granting the
restricted stock on March 2015. The 2016 restricted stock incentive plan has been implemented and
completed granting the restricted stock on September 2016. 12, 884 thousand shares restricted stock
has been granted to the118 incentive objects. The details see the series announcement on China
Securities, HK Commercial Daily and Cninfo website.
XII. Important associated transactions
1. Important associated transactions
In the reporting period, the total amount of normal associated transactions between the Company
and associated parties was 287,790 thousand yuan, accounting for32.70% of the budgeted amount
for the year 2017. This included 124,380 thousand yuan, accounting for 31.10% of the budgeted
amount for the year 2017, for purchasing supporting products for package projects from associated
parties, and 163,410 thousand yuan, accounting for34.04% of the budgeted amount for the year
2017, from selling supporting parts and components to associated parties.
2. Associated transactions related to purchases or sales of assets
The 12th meeting of the 7th Board of Directors of the company and the 1st extraordinary general
meeting of 2017 examined and approved the company to accept the transfer of 76% equity stake of
Dalian Bingshan Engineering and Trading Co., Ltd. held by Bingshan Group, and accept the
transfer of 49% equity stake of Dalian Bingshan Metal Technology Co., Ltd. held by Bingshan
Group, above-mentioned transactions have been completed in the reporting period.
3. Important associated transactions with joint external investments
□ Applicable √ Not applicable
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
4.Current associated rights of credit and liabilities
□ Applicable √ Not applicable
5. Other associated transactions
□ Applicable √ Not applicable
XIII.Non-operation capital occupation by holding shareholders and their related
parties in the listed company
The company had no capital occupation by the holding shareholders and their related parties in the
listed company within this reporting period.
XIV. Major contract and its performance
1. Hosting, contracting and leasing status
(1) the hosting status
□ Applicable √ Not applicable
(2)the contracting status
□ Applicable √ Not applicable
(3) the leasing status
√ Applicable □ Not applicable
The company signed rental contract with MHI Bingshan Refrigeration (Dalian) Co.,Ltd., and rent #
6 workshop building located on No. 106 Liaohe East Rd, Dalian Economic and Technology
Development Zone to MHI Bingshan Refrigeration (Dalian) Co., Ltd. The rental area is 15,259.04
square meters, and the rental term till 16th July, 2029. The annual rent fee is RMB 4.2 million after
considering the time value of money.
On June 22, 2017, the company has signed a land and house lease contract with Dalian Bingshan
Wisdom Park Co., Ltd to rent out the whole land and house of the company’s old plant locating at
No. 888, Southwest Road, Shahekou District, Dalian to Dalian Bingshan Wisdom Park Co., Ltd.,
with rental land area of 167,165.61 square meters and housing area of 105,652.43 square meters, the
lease term is from April 1, 2017 to December 31, 2036. The total rent for the previous three years is
RMB 20.34 million, of which the rent in 2017 is RMB 4.62 million, the rent in 2018 is RMB 7.86
million, and the rent in 2019 is RMB 7.86 million. From January 2020, the two parties will
negotiate and determine the rent of the next three years according to the local market changes.
2. Guaranteeing status
√ Applicable □ Not applicable
Resolution of 2nd meeting of 7th session of the Board of directors agreed to provide guarantee to
Dalian Bingshan Group Co., Ltd. for obtaining Development Fund of National Development Bank.
Total amount of the loan was RMB120 million with interest rate 1.2%, and the loan period was 10
years. The fund can only be used for cold chain green intelligent equipment and the development of
service industry. When Dalian Bingshan Group Co., Ltd. receives the fund, it will transfer all the
fund to the Company with the same conditions. The above guarantee to Dalian Bingshan Group Co.,
Ltd. is to the Company itself actually.
3.Other important contracts
□ Applicable √ Not applicable
XV Social responsibilities
1. Performance of precise poverty alleviation social responsibility
(1) Overview of the Semiannual targeted poverty alleviation
In the first half of 2017, the company joined hands with the controlling shareholders and continued
to implement the targeted poverty alleviation to the targeted poverty alleviation unit – Songlin
Village, Guangmingshan Town, Zhuanghe City. The main measures and practices are as follows:
First is to attach great importance, the company has made the overall planning for poverty
alleviation in early 2017, aiming to give prominence to the key points and earmark funds for
specified purposes only.
Second is to make field research and solve the living difficulties. In order to better understand the
situation of poverty alleviation, the company has organized the responsible person in grass-roots
units to Songlin Village for visiting and condoling, getting to know its production and development
situation so as to shoot the arrow at the target and offer practical aids.
(2) Follow-up targeted poverty alleviation plan
In the second half of 2017, the company will continue to promote the targeted poverty alleviation
work, combine with the government's policy on poverty alleviation, and solve the site, road and
traffic problems in poverty alleviation and the reemployment of surplus labors.
13
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
2.The listed company and its subsidiaries whether belong to heavy pollution industry
formulated by the state environmental protection department
□ Applicable √ Not applicable
XVI. Other important matters
□ Applicable √ Not applicable
XVII. Other important matters of subsidiary company
□ Applicable √ Not applicable
14
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Section 6 Change in Share Capital and Shareholders'
Information
I. Change in share capital
1. Change in share capital
Shares Shares
（before change） （after change）
items Changes
number proportion number proportion
I. Non-circulating share capital with restricted
trade conditions 82,340,713 13.46% -55,246,643 27,094,070 3.16%
Executive lock stock 154,117 031% +2,507,853 2,661,970 0.31%
Restricted stock after starting 58,645,096 9.59% -58,645,096 0 0
Equity incentive restricted stock 23,541,500 2.85% +881,600 24,432,100 2.85%
II. Circulating share capital 529,435,845 86.54% +299,957,266 829,393,111 96.84%
1. Domestically listed
ordinary shares 356,935,845 58.34% +230,957,266 587,893,111 68.64%
2. Domestically listed foreign shares 172,500,000 28.20% +69,000,000 241,500,000 28.20%
III. Total shares 611,776,558 100% 244,710,623 856,487,181 100%
2. The reason for the Change in share capital
On March 16, 2017, Yu Fuchun, the chairman of the Board of Supervisors of the company, left
office, the company's shares held by him should be locked within six months after his resignation;
on May 23, 2017, the company's restricted stock incentive phase II of 2015 was unlocked; in June
2017, the company implemented the 2016 annual equity apportion, which increased 4 shares by
every 10 shares of capital reserve; on June 20, the company relieved the restrictions on non-public
offering of shares. During the reporting period, the above matters caused changes in the company’s
total number of shares and the share structure.
3. The approval of the Change in share capital
The company's 2016 annual profit distribution plans was approved by 2016 Shareholders’ General
Meeting.
4. transfer of ownership of the Change in share capital
□ Applicable √ Not applicable
5. the influence of change in share capital on the a recent year and recent issue for basic earnings
per share ,diluted earnings per share and net assets per share.
(1)The basic per share of 2016 is 0.31yuan; According to the latest equity is adjusted for 0.22 yuan;
(2)The diluted per share of 2016 is 0.31 yuan; According to the latest equity is adjusted for 0.22
yuan;
(3)The net assets per share of 2016 is 5.30yuan; According to the latest equity is adjusted for 3.79
yuan
(4)The basic per share of the first quarter of 2017 is 0.05yuan; According to the latest equity is
adjusted for 0.036 yuan;
(5)The diluted per share of the first quarter of 2017 is 0.05yuan; According to the latest equity is
adjusted for 0.036yuan;
(6)The net assets per share of the first quarter of 2017 is 5.35 yuan; According to the latest equity is
adjusted for3.82yuan.
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Number of shareholders and their shareholding
15
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Total number of shareholders in the reporting period 41,442
Shareholding of top ten shareholders
Number of Number of pledged
Name Nature Proportion Total number shares with sale shares or shares
restriction frozen
Dalian Bingshan Group Co., Ltd. Domestic non-state-owned legal person 19.96% 170,916,934 0 0
Sanyo Electric Co., Ltd. Overseas legal person 8.58% 73,503,150 0 0
Zheshang Juchao industry grow
Others 2.56% 21,896,286 0 0
hybrid securities investment fund
Zheshang Juchao New thinking
Others 1.58% 13,503,638 0 0
hybrid securities investment fund
National Social Security Funds 104
Others 1.31% 11,199,297 0 0
Portfolio
Industrial Securities Golden Kylin
No. 2 Collective Asset Management Others 1.07% 9,163,753 0 0
Plan
National Social Security Funds 503
Others 0.96% 8,210,314 0 0
Portfolio
Caitong Capital Kunze No. 2
Others 0.96% 8,210,313 0 0
Securities vInestment Fund
Shenzhen B & D Capital Fengnian
Others 0.96% 8,210,313 0 0
Jinjia No. 1 Fund
Lin Zhenming Overseas natural person 0.73% 6,230,000 0 0
Shareholding of top ten shareholders without sale restriction
Number of shares without
Name Type of shares
sale restriction
Dalian Bingshan Group Co., Ltd. 170,916,934 RMB denominated ordinary shares
Sanyo Electric Co., Ltd. 73,503,150 Domestically listed foreign shares
Zheshang Juchao industry grow hybrid securities investment fund 21,896,286 RMB denominated ordinary shares
Zheshang Juchao New thinking hybrid securities investment fund 13,503,638 RMB denominated ordinary shares
National Social Security Funds 104 Portfolio 11,199,297 RMB denominated ordinary shares
Industrial Securities Golden Kylin No. 2 Collective Asset Management Plan 9,163,753 RMB denominated ordinary shares
National Social Security Funds 503 Portfolio 8,210,314 RMB denominated ordinary shares
Caitong Capital Kunze No. 2 Securities vInestment Fund 8,210,313 RMB denominated ordinary shares
Shenzhen B & D Capital Fengnian Jinjia No. 1 Fund 8,210,313 RMB denominated ordinary shares
Lin Zhenming 6,230,000 Domestically listed foreign shares
Dalian Bingshan Group Co., Ltd. had the association relationship
Notes to the associated relationship and uniform actions of the above with Sanyo Electric Co., Ltd. among the above shareholders. Sanyo
Electric Co., Ltd. holds 26.6% of Dalian Bingshan Group Co., Ltd.'s
shareholders
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
16
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Section 7 Information on Preferred Stock
□ Applicable √ Not applicable
In the reporting period, the Company didn’t own preferred stock.
17
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Section 8 Information on the Company’s Directors,
Supervisors, and Senior Management officers
I. Changes in shareholding by directors, supervisors and senior managers
√Applicable □ Not applicable
Increase on holding Decrease in Shares held at
Shares held at
Office-holding of shares in this holding of shares the end of
Name Position beginning of period
state period in this period period
(shares)
(shares) (share) (shares)
Ji Zhijian Chairman Incumbent 1,413,450 565,380 0 1,978,830
Xu Junrao Director Incumbent 925,249 370,100 0 1,295,349
Liu Kai Vice Chairman Incumbent 989,400 395,760 1,385,160
Ding Jie Director, GM Incumbent 725,000 290,000 0 1,015,000
Fan Yuekun DGM Incumbent 500,000 200,000 700,000
Chief Financial
Ma Yun Incumbent 500,000 200,000 0 700,000
Officer
Song Wenbao Board secretary Incumbent 424,200 169,680 0 593,880
Chairman of Board
Yu Fuchun Leaving office 15,211 6,084 0 21,295
of Supervisors
Wang Zhiqiang DGM Leaving office 515,349 206,140 0 721,489
Total -- -- 6,007,859 0 8,411,003
Changes in shareholding by directors, supervisors and senior managers within the period is due to
the implementation of the company's transfer the capital reserve to increase capital stock of 2016
II. Resignation, dismissal and election, engagement of company directors,
supervisors, senior management officers
Name Position assumed Type Date Reason
Yu Fuchun Supervisor Leaving the post Mar.14,2017 Resign from the Company
Kijima Tadatoshi Director Leaving the post Feb.6,2017 Resign from the Company due to retirement
Wang Zhiqiang DGM Leaving the post Jun.29,2017 Resign from the Company
Mao Chunhua Chairman of Board of Supervisors Be employed Mar.20,2017 Be employed
Cao Lili Worker Supervisor Be employed Mar.13,2017 Be employed
Takagi Toshiyuki Director Be employed Mar.8,2017 Be employed
18
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Section 9 Financial report
I. The Company's semiannual financial report has not been audited.
II. Accounting statement
BALANCE SHEET
Prepared by Dalian Refrigeration Co., Ltd. June 30, 2017 Unit: RMB Yuan
30-June-2017 31-Dec-2016
Assets
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 469,049,698.39 332,267,178.95 715,215,638.54 496,417,106.54
Financial assets which are measured by fair value and
which changes are recorded in current profit and loss
Derivative financial assets
Notes receivable 134,782,598.58 60,811,908.85 126,408,249.59 90,509,540.07
Accounts receivable 903,229,293.38 146,161,403.30 807,109,959.54 117,575,405.74
Accounts in advance 136,203,278.69 80,925,475.30 108,033,313.10 96,269,883.15
Interest receivables 723,955.56 723,955.56
Dividend receivable 38,800,000.00 38,800,000.00 39,025.00
Other receivables 63,715,968.69 6,014,786.24 57,257,456.57 4,368,505.07
Inventories 413,011,874.26 172,918,505.26 349,538,424.06 151,230,744.47
Assets held for sale
Non-current asset due within one year
Other current assets 21,770,677.86 13,826,495.20 43,254,044.92 30,563,139.06
Total current assets 2,180,563,389.85 851,725,753.10 2,207,580,066.88 987,658,279.66
Non-current assets:
Finance asset held available for sales 569,709,995.04 568,394,852.54 545,565,116.64 544,249,974.14
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 1,507,902,442.59 1,985,253,706.97 1,292,912,901.49 1,713,412,501.09
Investment property 88,435,542.39 88,435,542.39 28,605,652.94 28,605,652.94
Fixed assets 742,865,721.32 503,193,466.85 511,008,545.87 274,262,264.28
Construction in progress 107,488,807.06 101,144,912.42 321,646,676.78 320,329,247.78
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 138,524,025.75 72,911,635.80 154,714,212.52 88,113,279.88
Expense on Research and Development
Goodwill 1,750,799.49 1,750,799.49
Long-term expenses to be apportioned 5,790,104.14 4,938,060.17 4,448,719.77 3,658,276.80
Deferred income tax asset 29,908,953.69 6,406,297.52 27,753,747.94 6,751,619.50
Other non-current asset
Total non-current asset 3,192,376,391.47 3,330,678,474.66 2,888,406,373.44 2,979,382,816.41
Total assets 5,372,939,781.32 4,182,404,227.76 5,095,986,440.32 3,967,041,096.07
Legal Representative: Ji Zhijian Chief Financial Official: Ma Yun Person in Charge of Accounting Organization: Mao Chunhua
19
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
BALANCE SHEET (CONTINUED)
Prepared by Dalian Refrigeration Co., Ltd. June 30, 2017 Unit: RMB Yuan
30-June-2017 31-Dec-2016
Liabilities and shareholders’ equity
Consolidation Parent Company Consolidation Parent Company
Current liabilities:
Short-term loans 215,319,700.00 160,000,000.00 45,000,000.00
Derivative financial liabilities
Notes payable 181,421,206.76 78,225,093.74 194,562,734.79 85,834,371.87
Accounts payable 881,939,767.63 250,428,330.64 857,725,428.48 340,987,669.38
Accounts received in advance 143,969,111.21 38,241,742.21 150,098,892.29 74,949,113.25
Wage payable 27,193,989.51 1,453,268.58 50,256,392.86 9,796,460.53
Taxes payable 16,608,505.28 1,869,666.68 18,405,089.48 1,234,137.19
Interest payable
Dividend payable 863,516.60 533,156.00 863,516.60 533,156.00
Other accounts payable 198,334,369.48 165,568,837.96 115,320,734.80 74,954,775.74
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,665,650,166.47 696,320,095.81 1,432,232,789.30 588,289,683.96
Non-current liabilities:
Long-term loans 160,000,000.00 160,000,000.00 160,000,000.00 160,000,000.00
Bonds payable
Long-term account payable
Long-term wage payable
Special accounts payable
Projected liabilities
Deferred income 83,073,834.77 39,070,834.77 57,396,619.00 12,836,619.00
Deferred income tax liabilities 79,518,586.46 79,518,586.46 75,683,681.95 75,683,681.95
Other non-current liabilities
Total non-current liabilities 322,592,421.23 278,589,421.23 293,080,300.95 248,520,300.95
Total liabilities 1,988,242,587.70 974,909,517.04 1,725,313,090.25 836,809,984.91
Shareholders’ equity
Share capital 856,487,181.00 856,487,181.00 611,776,558.00 611,776,558.00
Other equity instruments
Capital public reserve 758,068,857.25 797,647,244.54 1,052,686,774.25 1,036,115,161.54
Specialized reserve 67,615,856.00 67,615,856.00 67,615,856.00 67,615,856.00
Other comprehensive income 453,106,783.01 452,144,682.34 431,639,323.52 430,413,556.77
Special preparation
Surplus public reserve 649,787,077.21 649,787,077.21 620,578,847.52 620,578,847.52
Retained profit 659,896,379.17 519,044,381.63 652,022,101.57 498,962,843.33
Translation of foreign currency capital
Total owner’s equity attributable to parent company 3,309,730,421.64 3,207,494,710.72 3,301,087,748.86 3,130,231,111.16
Minority interests 74,966,771.98 69,585,601.21
Total owner’s equity 3,384,697,193.62 3,207,494,710.72 3,370,673,350.07 3,130,231,111.16
Total liabilities and shareholder’s equity 5,372,939,781.32 4,182,404,227.76 5,095,986,440.32 3,967,041,096.07
Legal Representative: Ji Zhijian Chief Financial Official: Ma Yun Person in Charge of Accounting Organization: Mao Chunhua
20
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January-June, 2017 Unit: RMB Yuan
January-June, 2017 January-June, 2016
Items
Consolidation Parent Company Consolidation Parent Company
I. Total sales 1,002,378,717.50 349,829,026.25 830,873,999.65 320,569,072.88
Including: Operating income 1,002,378,717.50 349,829,026.25 830,873,999.65 320,569,072.88
II. Total operating cost 992,114,223.92 349,824,353.81 837,666,113.26 326,095,453.00
Including: Operating cost 817,281,905.05 295,995,983.48 668,264,784.49 268,472,467.44
Taxes and associate charges 8,177,166.95 3,703,168.02 6,357,716.42 989,231.06
Selling and distribution expenses 43,854,411.28 674,115.60 42,351,876.57 1,157,365.43
Administrative expenses 109,566,823.88 52,988,925.98 108,150,791.47 54,874,915.91
Financial expense 2,994,727.94 1,050,468.36 1,531,833.61 180,568.43
Impairment loss 10,239,188.82 -4,588,307.63 11,009,110.70 420,904.73
Add: Gain/(loss) from change in fair value
Gain/(loss) from investment 87,875,295.69 105,942,061.06 75,949,019.25 76,688,140.71
Including: income form investment on affiliated
48,681,040.63 49,382,705.41 59,987,593.85 60,980,888.19
enterprise and jointly enterprise
III. Operating profit 98,139,789.27 105,946,733.50 69,156,905.64 71,161,760.59
Add: non-business income 6,830,966.75 4,866,012.27 7,728,227.93 6,541,575.73
Including: profit from non-current asset disposal 143,329.77 78,112.29 64,284.56 18,634.56
Less: non-business expense 67,875.87 284,024.49 65,248.12
Including: loss from non-current asset disposal 15,476.77 189,436.67 5,248.12
IV. Total profit 104,902,880.15 110,812,745.77 76,601,109.08 77,638,088.20
Less: Income tax 6,161,546.29 345,321.98 5,537,970.33 989,657.21
V. Net profit 98,741,333.86 110,467,423.79 71,063,138.75 76,648,430.99
Net profit attributable to parent company 98,260,163.09 110,467,423.79 70,632,718.91 76,648,430.99
Minority shareholders’ gains and losses 481,170.77 430,419.84
VI. After-tax net amount of other comprehensive
21,467,459.49 21,731,125.57 -156,318,611.18 -156,318,611.18
incomes
After-tax net amount of other comprehensive
21,467,459.49 21,731,125.57 -156,318,611.18 -156,318,611.18
incomes attributable to owners of the Company
(I) Other comprehensive incomes that will not be
reclassified into gains and losses
1. Changes in net liabilities or assets with a
defined benefit plan upon re-measurement
2. Enjoyable shares in other comprehensive
incomes in investees that cannot be reclassified
into gains and losses under the equity method
……
(II) Other comprehensive incomes that will be
21,467,459.49 21,731,125.57 -156,318,611.18 -156,318,611.18
reclassified into gains and losses
1. Enjoyable shares in other comprehensive
incomes in investees that will be reclassified into -263,666.08
gains and losses under the equity method
2. Gains and losses on fair value changes of
21,731,125.57 21,731,125.57 -156,318,611.18 -156,318,611.18
available-for-sale financial assets
3. Gains and losses on reclassifying
held-to-maturity investments into
available-for-sale financial assets
4. Effective hedging gains and losses on cash
flows
5. Foreign-currency financial statement
translation difference
6. Other
21
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
……
After-tax net amount of other comprehensive
incomes attributable to minority shareholders
VII Total comprehensive income 120,208,793.35 132,198,549.36 -85,255,472.43 -79,670,180.19
Total comprehensive income attributable to
119,727,622.58 132,198,549.36 -85,685,892.27 -79,670,180.19
parent company
Total comprehensive income attributable to
481,170.77 430,419.84
minority shareholders
VIII. Earnings per share
(I) basic earnings per share 0.115 0.089
(II) diluted earnings per share 0.115 0.089
Legal Representative: Ji Zhijian Chief Financial Official: Ma Yun Person in Charge of Accounting Organization: Mao Chunhua
22
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January -June, 2017 Unit: RMB Yuan
January -June, 2017 January -June, 2016
Items
Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating
activities:
Cash received from selling commodities
723,102,679.71 261,996,773.84 646,904,092.73 259,220,476.51
and providing labor services
Write-back of tax received 8,747,344.02 1,115.75 8,501,285.87
Other cash received concerning operating
47,641,383.74 33,440,766.76 22,163,876.94 15,102,431.77
activities
Subtotal of cash inflow arising from
779,491,407.47 295,438,656.35 677,569,255.54 274,322,908.28
operating activities
Cash paid for purchasing commodities and
631,160,168.61 281,659,408.50 443,227,516.70 195,922,929.14
receiving labor service
Cash paid to/for staff and workers 177,808,786.10 70,029,214.82 166,852,204.03 67,168,303.41
Taxes paid 40,531,325.05 4,393,809.59 48,505,792.69 6,772,361.54
Other cash paid concerning operating
78,568,669.61 10,122,365.06 70,252,281.01 23,317,407.77
activities
Subtotal of cash outflow arising from
928,068,949.37 366,204,797.97 728,837,794.43 293,181,001.86
operating activities
Net cash flows arising from operating
-148,577,541.90 -70,766,141.62 -51,268,538.89 -18,858,093.58
activities
II. Cash flows arising from investing
activities:
Cash received from recovering investment 1,500,000.00 1,500,000.00 145,827.12
Cash received from investment income 44,490,765.66 54,451,740.66 47,177,286.07 47,132,686.07
Net cash received from disposal of fixed,
200,520.00 89,140.00 43,000.00
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
46,191,285.66 55,951,740.66 47,266,426.07 47,321,513.19
activities
Cash paid for purchasing fixed, intangible
77,106,599.56 70,648,520.68 81,871,897.67 74,864,341.64
and other long-term assets
Cash paid for investment 176,660,000.00 176,660,000.00 6,551,326.25 13,135,728.15
Net cash received from payment of
subsidiaries and other business units
Other cash paid concerning investing
activities
Subtotal of cash outflow from
253,766,599.56 247,308,520.68 88,423,223.92 88,000,069.79
investing activities
Net cash flows arising from investing
-207,575,313.90 -191,356,780.02 -41,156,797.85 -40,678,556.60
activities
III. Cash flows arising from financing
activities
Cash received from absorbing investment 4,900,000.00 561,931,354.34 561,931,354.34
Including: Cash received from absorbing
minority shareholders' equity investment by 4,900,000.00
subsidiaries
Cash received from loans 221,269,700.00 160,000,000.00 291,400,000.00 240,000,000.00
Other cash received concerning financing
21,576,815.56 0.00 20,710,827.68 720,332.73
activities
Subtotal of cash inflow from financing
247,746,515.56 160,000,000.00 874,042,182.02 802,651,687.07
activities
Cash paid for settling debts 52,010,000.00 52,600,000.00
Cash paid for dividend and profit 63,497,016.56 62,191,592.93 39,846,628.47 36,997,965.58
23
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
distributing or interest paying
Including: dividends or profit paid by
subsidiaries to minority shareholders
Other cash paid concerning financing
24,206,200.89 10,121,261.17 3,430,000.00
activities
Subtotal of cash outflow from
139,713,217.45 62,191,592.93 102,567,889.64 40,427,965.58
financing activities
Net cash flows arising from financing
108,033,298.11 97,808,407.07 771,474,292.38 762,223,721.49
activities
IV. Influence on cash due to fluctuation in
-675,767.79 164,586.98 720,875.62 -24,068.33
exchange rate
V. Net increase of cash and cash
-248,795,325.48 -164,149,927.59 679,769,831.26 702,663,002.98
equivalents
Add: Balance of cash and cash equivalents
691,238,822.98 495,217,106.54 255,381,841.47 147,439,134.15
at the period -begin
VI. Balance of cash and cash equivalents at
442,443,497.50 331,067,178.95 935,151,672.73 850,102,137.13
the period–end
Legal Representative: Ji Zhijian Chief Financial Official: Ma Yun Person in Charge of Accounting Organization: Mao Chunhua
24
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’
EQUITY
Prepared by Dalian Refrigeration Company Limited 2017.01-06 Unit: RMB Yuan
2017.01-06
Owners’ equity attributable to parent company
Items Lessen: Other Retained Total of
Special Minority equity
share capital Capital suplus treasury comprehensi Surplus reserve profits owners’ equity
preparation
stock ve income
I. balance at the end of last
611,776,558.00 1,052,686,774.25 67,615,856.00 431,639,323.52 620,578,847.52 652,022,101.57 69,585,601.21 3,370,673,350.07
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
611,776,558.00 1,052,686,774.25 67,615,856.00 431,639,323.52 620,578,847.52 652,022,101.57 69,585,601.21 3,370,673,350.07
this year
III. Increase/ decrease of
amount in this year (“-” 244,710,623.00 -294,617,917.00 21,467,459.49 29,208,229.69 7,874,277.60 5,381,170.77 14,023,843.55
means decrease)
(I) Total comprehensive
21,467,459.49 98,260,163.09 481,170.77 120,208,793.35
incomes
(II) Capital increased and
-49,907,294.00 4,900,000.00 -45,007,294.00
reduced by owners
1. Common shares increased
-56,150,000.00 4,900,000.00 -51,250,000.00
by shareholders
2. Capital increased by
holders of other equity
instruments
3. Amounts of share-based
payments recognized in 6,242,706.00 6,242,706.00
owners’ equity
4. Other
(III) Profit distribution 29,208,229.69 -90,385,885.49 -61,177,655.80
1. Withdrawing surplus
29,208,229.69 -29,208,229.69
public reserve
2. Distribution to all owners
-61,177,655.80 -61,177,655.80
(shareholders)
3. Others
(IV) Internal carrying
244,710,623.00 -244,710,623.00
forward of owners’ equity
1. New increase of share
244,710,623.00 -244,710,623.00
capital from capital reserves
2. Convert surplus reserves
to share capital
3. Surplus reserves make up
losses
4. Others
(V) Specific reserve
1. Withdrawn for the period 1,008,404.87 1,008,404.87
2. Used in the period -1,008,404.87 -1,008,404.87
(VI) Other
IV. Balance at the end of this
856,487,181.00 758,068,857.25 67,615,856.00 453,106,783.01 649,787,077.21 659,896,379.17 74,966,771.98 3,384,697,193.62
period
Legal Representative: Ji Zhijian Chief Financial Official: Ma Yun Person in Charge of Accounting Organization: Mao Chunhua
25
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
2016.01-12
Owners’ equity attributable to parent company
Items Other Retained Minority Total of owners’
Lessen: Special Surplus equity equity
share capital Capital suplus comprehensive profits
treasury stock preparation reserve
income
I. balance at the end of last
360,164,975.00 630,264,991.95 39,503,800.00 589,988,118.05 580,769,740.16 525,925,066.25 66,257,548.71 2,713,866,640.12
year
1. Change of accounting
policy
2. Correction of errors in
previous period
3.Business combination
30,000,000.00 19,688,488.45 49,688,488.45
under the same control
II. Balance at the beginning
360,164,975.00 660,264,991.95 39,503,800.00 589,988,118.05 580,769,740.16 545,613,554.70 66,257,548.71 2,763,555,128.57
of this year
III. Increase/ decrease of
amount in this year (“-” 251,611,583.00 392,421,782.30 28,112,056.00 -158,348,794.53 39,809,107.36 106,408,546.87 3,328,052.50 607,118,221.50
means decrease)
(I) Total comprehensive
-158,348,794.53 182,234,151.73 3,297,165.48 27,182,522.68
incomes
(II) Capital increased and
71,529,096.00 572,504,269.30 28,112,056.00 1,108,887.02 617,030,196.32
reduced by owners
1. Common shares
71,529,096.00 560,231,963.55 28,112,056.00 1,108,887.02 604,757,890.57
increased by shareholders
2. Capital increased by
holders of other equity
instruments
3. Amounts of share-based
payments recognized in 12,227,168.00 12,227,168.00
owners’ equity
4. Other 45,137.75 45,137.75
(III) Profit distribution 39,809,107.36 -75,825,604.86 -1,078,000.00 -37,094,497.50
1. Withdrawing surplus
39,809,107.36 -39,809,107.36
public reserve
2. Distribution to all owners
-36,016,497.50 -1,078,000.00 -37,094,497.50
(shareholders)
3. Others
(IV) Internal carrying
180,082,487.00 -180,082,487.00
forward of owners’ equity
1. New increase of share
180,082,487.00 -180,082,487.00
capital from capital reserves
2. Convert surplus reserves
to share capital
3. Surplus reserves make up
losses
4. Others
(V) Specific reserve
1. Withdrawn for the period 1,982,950.50 1,982,950.50
2. Used in the period -1,982,950.50 -1,982,950.50
(VI) Other
IV. Balance at the end of
611,776,558.00 1,052,686,774.25 67,615,856.00 431,639,323.52 620,578,847.52 652,022,101.57 69,585,601.21 3,370,673,350.07
this period
Legal Representative: Ji Zhijian Chief Financial Official:Ma Yun Person in Charge of Accounting Organization: Mao Chunhua
26
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Dalian Refrigeration Company Limited 2017.01-06 Unit: RMB Yuan
2017.01-06
Owners’ equity attributable to parent company
Items Other Lessen: Other Total of owners’
Capital Special Surplus Retained equity
share capital equity treasury comprehensive
suplus preparation reserve profits
instrument stock income
I. balance at the end of last
611,776,558.00 1,036,115,161.54 67,615,856.00 430,413,556.77 620,578,847.52 498,962,843.33 3,130,231,111.16
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
611,776,558.00 1,036,115,161.54 67,615,856.00 430,413,556.77 620,578,847.52 498,962,843.33 3,130,231,111.16
this year
III. Increase/ decrease of
amount in this year (“-” 244,710,623.00 -238,467,917.00 21,731,125.57 29,208,229.69 20,081,538.30 77,263,599.56
means decrease)
(I) Total comprehensive
21,731,125.57 110,467,423.79 132,198,549.36
incomes
(II) Capital increased and
6,242,706.00 6,242,706.00
reduced by owners
1. Common shares increased
by shareholders
2. Capital increased by
holders of other equity
instruments
3. Amounts of share-based
payments recognized in 6,242,706.00 6,242,706.00
owners’ equity
4. Other
(III) Profit distribution 29,208,229.69 -90,385,885.49 -61,177,655.80
1. Withdrawing surplus
29,208,229.69 -29,208,229.69
public reserve
2. Distribution to all owners
-61,177,655.80 -61,177,655.80
(shareholders)
3. Others
(IV) Internal carrying
244,710,623.00 -244,710,623.00
forward of owners’ equity
1. New increase of share
244,710,623.00 -244,710,623.00
capital from capital reserves
2. Convert surplus reserves
to share capital
3. Surplus reserves make up
losses
4. Others
(V) Specific reserve
1. Withdrawn for the period 1,008,404.87 1,008,404.87
2. Used in the period -1,008,404.87 -1,008,404.87
(VI) Other
IV. Balance at the end of this
856,487,181.00 797,647,244.54 67,615,856.00 452,144,682.34 649,787,077.21 519,044,381.63 3,207,494,710.72
period
Legal Representative: Ji Zhijian Chief Financial Official: Ma Yun Person in Charge of Accounting Organization: Mao Chunhua
27
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
2016.01-12
Owners’ equity attributable to parent company
Items Other Lessen: Other Total of owners’
Special Surplus Retained equity
share capital equity Capital suplus treasury comprehensive
preparation reserve profits
instrument stock income
I. balance at the end of last
360,164,975.00 640,764,783.03 39,503,800.00 588,759,190.43 580,769,740.16 428,747,299.72 2,559,702,188.34
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
360,164,975.00 640,764,783.03 39,503,800.00 588,759,190.43 580,769,740.16 428,747,299.72 2,559,702,188.34
this year
III. Increase/ decrease of
amount in this year (“-” 251,611,583.00 395,350,378.51 28,112,056.00 -158,345,633.66 39,809,107.36 70,215,543.61 570,528,922.82
means decrease)
(I) Total comprehensive
-158,345,633.66 146,041,148.47 -12,304,485.19
incomes
(II) Capital increased and
71,529,096.00 575,432,865.51 28,112,056.00 618,849,905.51
reduced by owners
1. Common shares increased
71,529,096.00 563,160,559.76 28,112,056.00 606,577,599.76
by shareholders
2. Capital increased by
holders of other equity
instruments
3. Amounts of share-based
payments recognized in 12,227,168.00 12,227,168.00
owners’ equity
4. Other 45,137.75 45,137.75
(III) Profit distribution 39,809,107.36 -75,825,604.86 -36,016,497.50
1. Withdrawing surplus
39,809,107.36 -39,809,107.36
public reserve
2. Distribution to all owners
-36,016,497.50 -36,016,497.50
(shareholders)
3. Others
(IV) Internal carrying
180,082,487.00 -180,082,487.00
forward of owners’ equity
1. New increase of share
180,082,487.00 -180,082,487.00
capital from capital reserves
2. Convert surplus reserves
to share capital
3. Surplus reserves make up
losses
4. Others
(V) Specific reserve
1. Withdrawn for the period 1,982,950.50 1,982,950.50
2. Used in the period -1,982,950.50 -1,982,950.50
(VI) Other
IV. Balance at the end of this
611,776,558.00 1,036,115,161.54 67,615,856.00 430,413,556.77 620,578,847.52 498,962,843.33 3,130,231,111.16
period
Legal Representative: Ji Zhijian Chief Financial Official: Ma Yun Person in Charge of Accounting Organization: Mao Chunhua
III. Notes to the accounting statement
(All amounts in RMB Yuan unless otherwise stated)
1. General information
Dalian Refrigeration Company Limited (the “Company”) was reorganized and reformed from main
part of former Dalian Refrigeration Factory. On December 8, 1993, the company went to the public
as a listed company at Shenzhen Stock Exchange Market. On March 20, 1998, the company
successfully went to the public at B share market and listed at Shenzhen Stock Exchange Market.
The general meeting for 2016 fiscal year held on19st May 2017 approved the profit distribution
policy for the year of 2016, which agrees the profit distribution is based on the total 611,776,558
number of shares as share capital, paid out cash dividend of 1Yuan for every 10 shares (before tax)
and share dividend of 4 common shares for every 10 shares through capital reserve.
The address of the Company’s registered office as same as head office is No.106, Liaohe East Road,
Dalian Economic and Technological Development Zone, China. The parent company of the
Company is Dalian Bingshan Group Co., Ltd., and there is no ultimate controller regulated by the
relev The company falls into industrial manufacturing sector, mainly engaged in industrial
28
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
refrigeration, refrigerated and frozen food storage, and manufacture and installation of central
air-conditioning and refrigeration equipment. The scope of business includes refrigeration
equipment, valve, fixings refrigeration equipment, supported products processing and system design
of air-conditioning. The company also offers technical consultation, technical services, commercial
trade and material supply and marketing.ant law, regulations and rules.
2. The scope of consolidation
There are 15 entities included in the current consolidated financial statements, including:
Proportion of Proportion of
Names of subsidiaries Types Level
shareholding（%） votes（%）
Dalian Bingshan Group Engineering Subsidiary 1
Co., Ltd. 100 100
Dalian Bingshan Group Sales Co., Ltd. Subsidiary 1
100 100
Dalian Bingshan Air-conditioning Subsidiary 1
Equipment Co., Ltd. 70 70
Dalian Bingshan Guardian Automation Subsidiary 1
Co., Ltd. 100 100
Dalian Bingshan Ryosetsu Quick Freezing Subsidiary 1
Equipment Co., Ltd. 100 100
Wuhan New World Refrigeration Subsidiary 1
Industrial Co., Ltd. 100 100
Bingshan Technology Service （Dalian） Subsidiary 1
Co.,Ltd. 100 100
Dalian Universe Thermal Technology Co., Subsidiary 1
Ltd. 55 55
Dalian Xinminghua Electrical Technology Subsidiary 1
Co., Ltd 100 100
Dalian Bingshan Engineering & Trading Subsidiary 1 51 51
Co., Ltd.
Chengdu Bingshan Refrigeration Sub-subsi 2 100 100
Engineering Co., Ltd. diary
Wuhan New World Air-conditioning Sub-subsi 2 100 100
Refrigeration Engineering Co., Ltd diary
Dalian Bingshan -P&A Recreation Sub-subsi 2 51 51
Development Engineering Co., Ltd diary
Ningbo Bingshan Air-conditioning Sub-subsi 2 51 51
Refrigeration Engineering Co., Ltd diary
Shanghai Bingshan Technology Service Sub-subsi 2 51 51
Co., Ltd diary
This year, there are 2 more entities were included in the scope of consolidation, Dalian
Bingshan Engineering & Trading Co., Ltd.and Chengdu Bingshan Refrigeration
Engineering Co., Ltd.
On February 15, 2017, the company’ board of directors decided to accept the transfer of 76% equity
stake of Dalian Bingshan Engineering and Trading Co., Ltd., the company’s former associated
company, after the acceptance of this transfer, Dalian Bingshan Engineering and Trading Co., Ltd\.
became a wholly-owned subsidiary of the company. As of June 30, 2017, the above equity
transaction has been completed. Therefore, the company held 100% equity stake of Dalian Bingshan
Engineering and Trading Co., Ltd. when establishing the consolidated statements of current period.
As Dalian Bingshan Engineering and Trading Co., Ltd. is also a subsidiary of the parent company
Dalian Bingshan Group Co., Ltd., the company has merged the subsidiary Dalian Bingshan
Engineering and Trading Co., Ltd. by the same control in current period, when establishing the
consolidated balance sheet, adjusted the beginning data of relevant projects of consolidated balance
sheet, and also adjusted the comparable data of the corresponding period when establishing the
income statements and cash flow statements.
29
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
The Board of Directors of the company’s subsidiary Dalian Bingshan Group Engineering Co., Ltd.
decided Dalian Bingshan Group Engineering Co., Ltd. and Chengdu New World Refrigeration
Equipment Engineering Co., Ltd. jointly invest and build a joint venture Chengdu Bingshan
Refrigeration Engineering Co., Ltd., Dalian Bingshan Group Engineering Co., Ltd. invested RMB
5.1 million in cash, holding 51% stake. As of June 30, 2017, Chengdu Bingshan Refrigeration
Engineering Co., Ltd. has officially started operating.
For the specific information of entity change in the consolidation scope, see the notes of VII. The
Change of Scope of Consolidation and VIII. The Equity in Other Entities.
IV Financial Statements Preparation Basis
1. Basic of preparation of financial statements
（1） Preparing basis
The Company’s financial statements are prepared on the basis of going concern assumption,
according to the actual occurred transactions and events and in accordance with ‘Accounting
Standards for Business Enterprises’ and relevant regulations, and also based on the note IV
“Significant Accounting Policies, Accounting Estimates”.
（2） Going concern
The company has the capacity to continually operate within 12 months at least since the end of
report period, and hasn‘t the major issues impacting on the sustainable operation ability.
V. Significant Accounting Policies and Accounting Estimates
1. Declaration for compliance with accounting standards for business enterprises
The financial statements are prepared by the Group according to the requirements of Accounting
Standard for Business Enterprise, and reflect the relative information for the financial position,
operating performance, cash flow of the Group truly and fully.
2. Accounting period
The Group adopts the Gregorian calendar year as accounting period, i.e. from Jan 1 to Dec 31.
3.Operating cycle
Normal operating cycle refers to the duration starting from purchasing the assets for manufactuing
up to cash or cash equivelant realisation. The group sets twelve months for one operating cycle
and as the liquidity criterion for assets and liability.
4. Funcitonal currency
The Group adopts RMB as functional currency.
5. Accounting for business combination under same control and not under same control
As an acquirer, the assets and liabilities that The Group obtained in a business combination under
the same control should be measured on the basis of their carrying amount in the consolidated
financial statements on the combining date. As for the balance between the carrying amount of the
net assets obtained by the combining party and the carrying amount of the consideration paid by it,
the capital surplus shall be adjusted. If the capital surplus is not sufficient to be offset, the retained
earnings shall be adjusted.
For a business combination not under same control, the asset, liability and contingent liability
obtained from the acquirer shall be measured at the fair value on the acquisition date. The
combination cost shall be the fair value, on the acquisition date, of the assets paid, the liabilities
incurred or assumed and equity securities issued by the acquirer in exchange for the control of the
acquire, and sum of all direct expenses(if the combination is achieved in stages, the combination
30
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
cost shall be the sum of individual transaction). The difference when combination cost exceeds
proportionate share of the fair value of identifiable net assets of acquiree should be recognized as
goodwill. If the combination cost is less than proportionate share of the fair value of identifiable net
assets of acquiree, firstly, fair value of identifiable asset, liability or contingent liability shall be
reviewed, and so the fair value of non-monetary assets or equity instruments issued in the
combination consideration , after review, still the combination cost is less than proportionate share
of the fair value of identifiable net assets of acquire, the difference should be recognized as
non-operating income.
6. Method of preparation of consolidated financial statements
All subsidiaries controlled by the Group and structured entities are within the consolidation scope.
If subsidiaries adopt different accounting policy or have different accounting period from the parent
company, appropriated adjustments shall be made in accordance with the Group policy in
preparation of the consolidated financial statements.
All significant intragroup transactions, outstanding balances and unrealized profit shall be
eliminated in full when preparing the consolidated financial statements. Portion of the subsidiary’s
equity not belonging to the parent, profit, loss for the current period, portion of other comprehensive
income and total comprehensive belonging to minority interest, shall be presented separately in
the consolidated financial statements under “minority interest of equity”, ”minority interest of profit
and loss”, “other comprehensive income attributed to minority interest” and “total comprehensive
income attributed to minority interest” title.
If a subsidiary is acquired under common control, its operation results and cash flow shall be
consolidated since the beginning of the consolidation period. When preparing the comparative
consolidated financial statements, adjustments shall be made to relevant items of comparative
figures as regarded that reporting entity established through consolidation has been always there
since the point when the ultimate controlling party starts to have the control.
If a business consolidation under common control is finally achieved in stages, consolidation
accounting method shall be disclosed additionally for the period in which the control is obtained.
For example, if a business consolidation under common control is finally achieved in stages, when
preparing the consolidated financial statements, adjustments shall be made for the current
consolidation status as if consolidation has always been there since the point when the ultimate
controlling party starts to control. In preparation of comparative figures, asset and liability of the
acquiree shall be consolidated into the Group’s comparative financial statements, but to the extent
no earlier than the point when the Group and acquiree are both under ultimate control and relevant
items under equity in comparative financial statements shall be adjusted for net asset increased in
combination. To avoid the duplicated computation of net asset of acquiree, for long-term equity
investment held by the Group before the consolidation, relevant profit and loss, other
comprehensive income and movement in other net asset, recognized for the period between the
combination date and later date when original shareholding is obtained and when the Group and the
acquiree are under common control of same ultimate controlling party, shall be respectively used for
writing down the opening balance of retained earnings of comparative financial statements and
profit and loss for the current period.
If a subsidiary is acquired not under common control, its operation results and cash flow shall be
consolidated since the beginning of the consolidation period. In preparation of the consolidated
financial statements, adjustments shall be made to subsidiary’s financial statements based on the fair
value of its all identifiable assets, liability or contingent liability on the acquisition date.
If a business consolidation under non-common control is finally achieved in stages, consolidation
accounting method shall be disclosed additionally for the period in which the control is obtained.
For example, if a business consolidation not under common control is finally achieved in stages,
when preparing the consolidated financial statements, the acquirer shall remeasure its previously
held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain
or loss as investment income for the current period. Other comprehensive income, under equity
method accounting rising from the interest held in acquiree in relation to the period before the
acquisition, and changes in the value of its other equity other than net profit or loss, other
comprehensive income and profit appropriation shall be transferred to investment gain or loss for
the period in which the acquisition incurs, excluding the other comprehensive income from the
31
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
movement on the remeasurement of ne asset or liability of defined benefit plan.
When the Group partially disposes of the long –term equity investment in subsidiary without losing
the control over it, in the consolidated financial statements, the difference, between disposals price
and respective disposed value of share of net assets in the subsidiary since the acquisition date or
combination date, shall be adjusted for capital surplus or share premium, no enough capital surplus,
then adjusted for retained earnings.
When the Group partially disposes of the long –term equity investment in subsidiary and lose the
control over it, in preparation of consolidated financial statements, remaining share of interest in the
subsidiary shall be remeasured on the date of losing control. Sum of the share disposal consideration
and fair value of remaining portion of shareholding minus the share of the net assets in the
subsidiary held based on the previous shareholding percentage since the acquisition date or
combination date, the balance of above is recognized as investment gain/loss for the period and
goodwill shall be written off accordingly. Other comprehensive income relevant to share investment
in subsidiary shall be transferred to investment gain /loss for the period on the date of losing control.
When the Group partially disposes of the long –term equity investment in subsidiary and lose the
control over it by stages, if all disposing transactions are bundled, each individual transaction shall
be seen as a transaction of disposal of a subsidiary by losing control. The difference between the
disposal price and the share of the net assets in the subsidiary held before the date of losing
control, shall be recognize as other comprehensive income until the date of losing control where it is
transferred into investment gain/ loss for the current period.
7. Joint arrangement classification and joint operation accounting
The Group’s joint arrangement includes joint operation and joint venture. For joint operation, the
Group as a joint operator shall recognize its own assets and its share of any assets held jointly, its
liabilities and its share of any liabilities incurred jointly, its revenue from the sale of its share of the
output arising from the joint operation, its share of the revenue from the sale of the output by the
joint operation; and its expenses, including its share of any expenses incurred jointly. When an
entity enters into a transaction with a joint operation in which it is a joint operator, such as a sale or
contribution of assets, it is conducting the transaction with the other parties to the joint operation
and, as such, the joint operator shall recognize gains and losses resulting from such a transaction
only to the extent of the other parties’ interests in the joint operation.
8. Cash and cash equivalent
The cash listed on the cash flow statements of the Group refers to cash on hand and bank deposit.
The cash equivalents refer to short-term (normally with original maturities of three months or less)
and liquid investments which are readily convertible to known amounts of cash and subject to an
insignificant risk of changes in value.
9. Translation of foreign currency
(1) Foreign currency transaction
Foreign currency transactions are translated at the spot exchange rate issued by People’s Bank of
China (“PBOC”) on the 1st day of the month when the transactions incurred. Monetary assets and
liabilities in foreign currencies are translated into RMB at the exchange rate prevailing at the
balance sheet day. Exchange differences arising from the settlement of monetary items are charged
as in profit or loss for the period. Exchange differences of specific borrowings related to the
acquisition or construction of a fixed asset should be capitalized as occurred, before the relevant
fixed asset being acquired or constructed is ready for its intended uses.
(2) Translation of foreign currency financial statements
The asset and liability items in the foreign currency balance sheet should be translated at a spot
exchange rate at the balance sheet date. Among the ower’s equity items except “undistributed
profit”, others should be translated at the spot exchange rate when they are incurred. The income
and expense should be translated at spot exchange rate when the transaction incurs. Translation
difference of foreign currency financial statements should be presented separately under the other
comprehensive income title. Foreign currency cash flows are translated at the spot exchange rate on
the day when the cash flows incur. The amounts resulted from change of exchange rate are
presented separately in the cash flow statement.
32
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
10. Financial assets and financial liabilities
A financial asset or liability shall be recognised when the entity becomes a party to the contractual
provisions of a financial instrument.
(1) Financial assets
1)Classification, recognition and measurement
The Group classifies its financial assets in the following categories: at fair value through profit or
loss, loans and receivables, held-to-maturity financial assets and available-for-sale. The
classification depends on the purpose for which the financial assets were acquired. Management
determines the classification of its financial assets at initial recognition.
Financial assets at fair value through profit and loss include trading financial assets and those
financial assets initially designated as fair value through profit and loss. When meeting one of the
following conditions, the company shall classify the assets into trading financial asset: it is
acquired principally for the purpose of selling in the near term and is part of a portfolio of identified
financial instruments that are managed together and for which there is evidence of a recent actual
pattern of short-term profit-taking; it is a derivative(except for a derivative that is a designated and
effective hedging instrument or a financial guarantee contract, or linked to the investments in equity
instruments that do not have a quoted price in an active market,no fair value can be reliably
measured and must be settled by delivery of such an equity instrument. When meeting one of the
following conditions, the financial assets can be classified as the assets initially designated as fair
value through profit and loss: it eliminates or significantly reduces a measurement or recognition
inconsistency that would otherwise arise from measuring assets or liabilities or recognising the
gains and losses on them on different bases; or the financial instrument portfolio is managed and
its performance is evaluated and provided internally on that basis to the entity’s key management
personnel on a fair value basis, in accordance with a documented risk management or investment
strategy; or it is a hybrid instrument embedded by one or more instruments except for a embedded
derivate that does not significantly modify the cash flows or it is clear that separation of the
embedded derivative(s) is prohibited; it is a hybrid instrument that is required to be separated but
unable to be measured separately either at acquisition or at the end of a subsequent financial
reporting period. They are measured at fair value subsequently. Change on fair value shall be
recognized in the profit and loss. Interest or cash dividends received during the period in which such
financial assets are held, are recognised as ‘Investment income’. On disposal, the difference
between fair value of disposal and initial recorded amount are recognised as ‘Gain or loss on
Investment’ and adjust the gain or loss from changes in fair value accordingly.
Receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. Receivables are subsequently measured at amortised cost using the
effective interest method.The amortisation, impairment and any gain or loss from derecognition
shall be recognized in the profit and loss for the current year.
Available-for-sale financial assets are non-derivative financial assets that are either designated in
this category or not classified as financial assets of any other class at initial recognition. This
category includes the derivative financial assets that linked to the investments in equity instruments
without a quoted price in an active market, no fair value can be reliably measured and must be
settled by delivery of such an equity instrument, and shall be measured at cost subsequently. Others
have a quoted price in an active market or fair value can be measured reliably although no quoted
price available, they shall be measured at fair value. Any change on fair value shall be recognized in
other comprehensive income and subsequently be measured at fair value. Except impairment loss
and exchange gain or loss arising from foreign currency monetary financial assets, changes in fair
value of available-for-sale financial assets are directly recorded in shareholders’ equity until such
financial assets is derecognized and the accumulated fair value adjustments previously recorded in
equity are charged to profit or loss for the period. Interests for the period in which the assets are
held as investment in debt instrument is calculated using the effective interest method and is
charged to profit or loss for the period as ‘Investment income’. Cash dividends declared by the
investee company relating to available-for-sale equity instruments are charged to profit or loss for
the period as ‘Investment income’. Equity instruments that a quoted price is not applicable in an
active market and no fair value can be reliably measured, shall be measured at cost.
2)Recognition and measurement of transfer of financial assets
33
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
A financial asset is derecognised when any one of the following conditions is satisfied: i) the rights
to receive cash flows from the asset expire, ii) the financial asset has been transferred and the entity
transfers substantially all risks and rewards relating to the financial assets to the transferee, iii) the
financial asset has been transferred to the transferee, the entity has given up its control of the
financial asset although the entity neither transfers nor retains all risks and rewards of the financial
asset.
Where an entity neither transfers nor retains substantially all risks and rewards of financial asset and
does not give up the control over such financial asset, then the entity recognises such financial asset
to the extent of its continuous involvement and recognises the corresponding liabilities.
In the case where the financial asset as a whole qualifies for the derecognition conditions, the
difference between the carrying value of transferred financial asset and the sum of the consideration
received for transfer and the accumulated amount of changes in fair value that was previously
recorded under other comprehensive income is charged into profit or loss for the period.
In the case where only part of the financial asset qualifies for derecognition, the carrying amount of
financial asset being transferred is allocated between the portions that to be derecognised and the
portion that continued to be recognised according to their relative fair value. The difference between
the amount of consideration received for the transfer and the accumulated amount of changes in fair
value that was previously recorded in other comprehensive income of the part qualifies for
derecognition and the above-mentioned allocated carrying amount is charged to profit or loss for
the period.
3) Impairment of financial assets
The Group assesses the carrying amount of financial assets other than financial assets at fair value
through profit or loss at each balance sheet date. If there is objective evidence that the financial
asset is impaired, the Group shall determine the amount of any impairment loss accounts.
The specific impairment provision methods of financial assets were as follows:
1) Provision for impairment of available-for-sale financial assets:
On balance sheet date, the Company executes individually inspection on each available-for-sale
financial statement, if the fair value of the equity instruments which is invested on the balance sheet
date is lower than its initial investment cost for more than 50% (including 50%) or lower than its
initial investment cost for the duration time for more than 1 year (including 1 year), which indicates
that it had occurred impairment; if the fair value of the equity instruments which invests on the
balance sheet date is lower than its initial investment cost for more than 20% (including 20%) but
not reaches at 50%, the Company will comprehensively considerate the other relevant factors such
as the price volatility etc. and will judge the equity investment whether had occurred impairment.
The aforesaid "cost" recognized in line with the initial investment cost of available for sale financial
instrument deducting principal recovered, amount amortized and the impairment losses recorded
into profits or losses. “fair value" recognized through the closing price of Securities Exchange at
period end unless the investment of available for sale equity instrument was in the restricted stock
trade period. For investment of available for sale equity instrument was in the restricted stock trade
period, recognized in line with the closing price of Securities Exchange at period end deducting the
risk of market player cannot sell the equity instrument, thus, require compensation.
If objective evidence shows that impairment for available-for-sale financial assets will occur,the
cumulative loss arising from the decline in fair value that had been recognized directly in equity is
removed from equity and recognized as impairment loss, although the financial assets are not
derecognized. The accumulative losses that are transferred out shall be the balance obtained from
the initially obtained costs of the financial asset after deducting the principals taken back and
amortised amount, the current fair value and the impairment losses originally recorded into the
profits and losses account.
For an available for sale debt instrument, if there is objective evidence that the value of the financial
asset recovered and the recovery can be related objectively to an event occurring after the
impairment was recognized, the previously recognized impairment loss is reversed and the amount
of reversal is recognized in income statement. For an available for sale equity instrument, if there is
objective evidence that the value recovered and the recovery can be objectively related to an event
occurring after the impairment loss recognized, the previously recognized impairment loss is
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
reversed and directly recognized in equity. However, the impairment losses incurred to an equity
instrument investment for which there is no quoted price in the active market and whose fair value
cannot be reliably measured, or incurred to a derivative financial asset which is linked to the equity
instrument and which shall be settled throguh the equity instrument, can not be reversed.
2) Provision for impairment of held-to-maturity financial assets
If there is objective evidence that the value of a financial asset carried at amortized cost has
impaired, the amount of loss is measured at the difference between the asset’s carrying amount and
the present value of estimated future cash flows. If there is objective evidence that the value of the
financial asset recovered and the recovery can be related objectively to an event occurring after the
impairment was recognized, the previously recognized impairment loss is reversed and the amount
of reversal is recognized in income statement, but to the extent where the reversed amount can not
exceed the amortised cost on the reversing day if no impaiment provided before.
(2) Financial liabilities
Classification, basis for recognition and measurement
Financial liabilities of an entity are classified at initial recognition as “financial liabilities at fair
value through profit or loss” and “other financial liabilities” on initial recognition
Financial liabilities at fair value through profit or loss include financial liabilities held for trading
and those designated as fair value through profit or loss on initial recognition（relevant basis for
classification shall be disclosed by reference to financial assets） They are subsequently measured at
fair value. The net gain or loss arising from changes in fair value, dividends and interest paid related
to such financial liabilities are recorded in profit or loss for the period in which they are incurred.
Other financial liability is measured at amortized cost by adopting the effective rate method.
Financial liability derecognition
A financial liability is derecognized when the underlying present obligations or part of it are
discharged. Existing financial liability shall be derecognized and new financial liability shall be
recognized when the entity sign the agreement with creditor to undertake the new financial liability
in replacement of existing financial liability, and the terms of agreement are different in substance.
Any significant amendment to the agreement as a whole or part o it is made, then the existing
liabilities or part of it shall be derecognized and financial liability after terms amendment shall be
recognized as a new financial liability. The difference between the carrying amount of the financial
liability derecognized and the consideration paid is recognized in profit or loss for the period.
Fair value measurement of financial asset and financial liability
If there is an acitve market for the financial assets and liability measured at fair value, the fair value
is measured at the quoted price in the active market; originally obtained or derived financial assets
or liability is measured at market trade price. If no active market exists for the financial asset or
liability, applicable valuation techniques is used for fair value measurement. When valuating, the
price in the most advantageous market shall be used for fair value measurement and applicable
valuation techniques which enough data is available for and supported by other information shall be
adopted, and the group chooses the input with same characters of asset or liability as considered by
market participant and try to give priority in use of observable input. Unobservable input shall be
used when observable input can not be obtained or it is infeasible to be obtained.
11. Provision for bad debts of receivables
The Group shall review the carrying amount of receivables fully at the balance sheet date. The
Group shall calculate the full provision for bad debts for the following receivables: debtor has been
log-out, bankruptcy, minus net asset, significant poor cash flow and significant nature disaster leads
to discontinue production and the debtors could not pay for the debts within the foreseeable time .
Other solid evidences indicates that the receivables cound not be paid or be of a slim chance.
The allowance method is applied to the potential loss of bad debt. The Group should make the
impairment test individually or grouply and accure the bad debt provisions which shall be
recorded into current profit or loss at the end of the period. If there is defined evidence for the
receivables not to or not likely to be received, which shall be recognized as the loss of bad debt and
write off the accrued bad debts provisions after going through the approval procedure of the Group.
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
(1) Individually significant amounts of accounts receivable accrued bad debt provision as per
portfolio
Judgment basis or amount standards of individually significant amounts Top 5 of account
receivables at year end
The accruing method of the receivables with individually significant amounts The bad debt
provisions shall be accrued based on the difference between current value of future cash flow and
the carrying amounts.
(2) Accounts receivable accrued bad debt provision by credit risk portfolio
The basis of portfolio
Inter-company Accounts receivable due from subsidiaries included in consolidated scope
Accounting aging Other than accounts receivable due from subsidiaries included in consolidated
scope and individual receivable with significant amount without impariment, use the accounting
aging of the receivables
The basis of bad debt provision
Inter-company Individual identified method
Accounting aging Age analysis method
1) The percentage of provision for bad debts based on the age of receivables as followings:
Accounting aging Accrual percentage of the receivables (%) Accrual percentage of other receivables (%)
Within 1 year 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
2) The other methods is applied to accrualing of bad debts provision
Related partiesNo bad debt provision is needed, unless the related party is unable to pay back
Risk-free No bad debt provision is needed
(3) Individually insignificant amount accounts receivable but accrued bad debt provision as per
portfolio
Accrual reason The individual amount is not significant, but the accrued bad debt provision on
the basis of portfolio can not reflect its risk characteristic
Accrual method The bad debt provisions should be accrued based on the difference between
current value of future cash flow and the carrying amount.
12. Inventories
Inventories are materials purchasing, raw material, variance of cost materials, low-valuable
consumable, materials processed on commission,working-in-progress, semi-finished goods,
variance of semi-finished goods ,and finished goods, engineering construction etc.
The inventories are processed on perpetual inventory system, and are measured at their actual cost
on acquistion. Weighted average cost method is taken for measuring the inventory dispatched or
used. Low value consumables and packaging materials is recognized in the income statement by
one-off method.
After year end thorough inventory check, at the balance sheet date inventory impairment should be
provided or adjusted according to invenotry category. For the finished goods, raw material held for
sale etc which shall be sold directly, the net realizable value should be confirmed at the estimated
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
selling price less estimated selling expenses and related tax and expenses. The raw material held for
production, its realizable value should be confirmed at the estimated selling price of finished goods
less estimated cost of completion, estimated selling expenses and related tax. The net realizable
value of inventories held for execution of sale contracts or labor contracts shall be calculated based
on the contract price. If the quantities of inventories in the Group are more than quantities if
inventories subscribed in the sales contracts, the net realizable value of the excessive part of the
inventories should be calculated based on the general selling price. When the impariment indicators
disappear, impairment provision shall be reversed and
13. Long-term equity investment
Long term equity investments are the investment in subsidiary, in associated company and in joint
venture.
Joint control is the contractual agreement sharing of control over an economic activity by all
participants or participants’ combination and decisions or policies relating to the operating activity
of the entity require the unanimous consent of the parties sharing the control.
Significant influence exists when the entity directly or indirectly owned 20% or more but less than
50% shares with voting rights in the investee company.If holding less than 20% voting rights, the
entity shall also take other facts or circumstances into accounts when judging any significant
influences. Factors and circumstances include: representation on the board of directors or equivalent
governing body ofthe investee, participation in financial or operating activities policy-making
processes,material transactions between the investor and the investee, interchange of managerial
personnel or provision of essential technical information.
When control exists over an investee, the investee is a subsidiary of an entity. The initial investment
cost for long-term equity investment acquired through business combination under common control,
is the carrying amount presented in the consolidated financial statements of the share of net assets at
the combination date in the acquired company. If the carrying amount of net assets at the
combination date in the acquired company is negative, investment shall be recognized at zero.
If the equity of investee under common control is acquired by stages and business combination
incursin the end, an entity shall disclose the accounting method for long-term equity investment in
the parent financial statement as a supplemental. For example, if the equity of investee under
common control is acquired by stages and business combination incursin the end, and it’s a bundled
transaction, the entity shall regard all transactions as a one for accounting. If it’s not a bundled
transaction, the carrying amount presented in the consolidated financial statements of the share of
net assets at the combination date in the acquired company since acquisition is determined as for the
initial cost of long-term equity investment. The difference between the cost initially recognized and
carrying amount of long-term equity investment prior to the business combination plus the newly
paid consideration for further share acquired, and capital reserve shall be adjusted accordingly. If no
enough capital reserve is available for adjustment, retain earnings shall be adjusted.
If long-term equity investment is acquired through business combination not under common control,
initial investment cost shall be the combination cost.
If the equity of investee not under common control is acquired by stages and business combination
incursin the end, an entity shall disclose the accounting method for long-term equity investment in
the parent financial statement as a supplemental. If the equity investment of investee not under
common control is acquired by stages and business combination incursin the end, and it’s a bundled
transaction, the entity shall regard all transactions as a one for accounting. If it’s not a bundled
transaction, the carrying amount of the equity investment held previously plus newly increased
investment cost are taken as the initial investment cost under cost model. If equity investment is
held under equity method before the acquisition date, other comprehensive income under equity
method previously shall not be adjusted accordingly. When disposing of the investment, the entity
shall adopt the same basis as the investee directly disposing of related assets or liability for
accounting treatment. Equity held prior to acquisition date as available for sale financial assets
under fair value model, accumulated change on fair value previously recorded in other
comprehensive shall be transferred into investment gain/loss for the period.
Apart from the long-term equity investments acquired through business combination mentioned
above, the cost of investment for the long-term equity investments acquired by cash payment is the
amount of cash paid. For long-term equity investment acquired by issuing equity instruments, the
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
cost of investment is the fair value of the equity instrument issued. For long-term equity investment
injected to the entity by the investor, the investment cost is the consideration as specified in the
relevant contract or agreement.
The Group adopts cost method to account for investment in subsidiary and equity method for
investment in joint venture and affiliate.
Long-term equity investment subsequently measured under cost model shall increase the carrying
amount of investment by adjusting the fair value of additional investment and relevant transaction
expenses. Cash dividend or profit declared by investee shall be recognized as investment gain/loss
for the period based on the proportion share in the investee.
Long-term equity investment subsequently measured under equity method shall be adjusted for its
carrying amount according to the share of equity increase or decrease in the investee. The entity
shall recognize its share of the investee’s net profits or losses based on the fair value of the
investee’s individual identifiable assets at the acquisition date, after making appropriate adjustments
thereto in conformity with the accounting policies and accounting period, and offsetting the
unrealized profit or loss from internal transactions entered into between the entity and its associates
and joint ventures according to the shareholding attributable to the entity and accounted for as
investment income and loss based on such basis.
On disposal of a long-term equity investment, the difference between the carrying value and the
consideration actually received is recognised as investment income for the period. For long-term
investments accounted for under equity method, the movements of shareholder’s equity, other than
the net profit or loss, of the investee company, previously recorded in the shareholder’s equity of the
Company are recycled to investment income for the period on disposal.
Where the entity has no longer joint control or significant influence in the investee company as a
result of partially disposal of the investment, the remaining investment will be changed to be
accounted for as available for sale financial assets, and the difference between the fair value of
remaining investment at the date of losing joint control or significant influence and its carrying
amount shall be recognized in the profit or loss for the year. Other comprehensive income
recognized from previous equity investment under equity model shall be accounted for on the same
basis as the investee directly disposing of related assets or liability when stopping using under
equity model.
Where the entity has no longer control over the investee company as a result of partially disposal of
the investment, the remaining investment will be changed to be accounted for using equity method
providing remaining joint control or significant influence over the investee company. The difference
between carrying amount of disposed investment and consideration received actually shall be
recognised in the profit and loss for the period as investment gain or loss, and investment shall be
adjusted accordingly as if it was accounted for under equity model since acquisition. Where the
entity has on longer joint control or significant influence in the investee as a result of disposal, the
investment shall be changed to be accounted for as available for sale financial assets, and difference
between the carrying amount and disposal consideration shall be recognized in profit and loss for
the period, and the difference between the fair value of remaining investment at the date of losing
control and its carrying amount shall be recognized in the profit or loss for the year as investment
gain or loss.
If the entity loses its control through partially disposal of investment by stages and it’s not a bundled
transaction, the entity shall account for all transactions separately. If it’s a bundled transaction, the
entity shall regard all transactions as one disposal of subsidiary by losing control, but the difference
between disposal consideration and carrying amount of the equity investment disposed prior to
losing control, which arises from each individual transaction shall be recognized as other
comprehensive income until being transferred into profit and loss for the period by the time of
losing control.
14. Investment property
The investment property includes property and building and measured at cost model
Category Useful life(years) Estimated net residual value rate Annual depreciation rate
Housing and Buildings 40 3% 2.43%
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
15. Fixed assets
Recognition criteria of fixed assets: defined as the tangible assets which are held for the purpose of
producing goods, rendering services, leasing or for operation & management, and have more than
one year of useful life.
Fixed assets shall be recognized when the economic benefit probably flows into the Group and its
cost can be measured reliably. Fixed assets include: building, machinery, transportation equipment,
electronic equipment and others.
All fixed assets shall be depreciated unless the fixed assets had been fully depreciated and are still
being used and land is separately measuered. Straight-line depreciation method is adopted by the
Group. Estimated net residual value rate, useful life, depreciation rate as follows:
Useful life (years) Estimated net residual value Annual depreciation rate
Category
rate
Housing and
20-40 3%、5%、10% 2.25-4.85%
Buildings
Machinery equipment 10-22 3%、5%、10% 4.09-9.7%
Transportation
4-15 3%、5%、10% 6-24.25%
equipment
Electronic equipment 5 3%、5%、10% 18-19.4%
Others equipment 10-15 3%、5%、10% 6-9.7%
The Group should review the estimated useful life, estimated net residual value and depreciation
method at the end of each year. If any change has occurred, it shall be regarded as a change in the
accounting estimates.
16. Construction in progress
The criteria and time spot of constructions in progress’s being transferred to fixed assets:
Constructions in progress are carried down to fixed assets on their actual costs when completing and
achieving estimated usable status. The fixed assets that have been completed and reached estimated
usable status but have not yet been through completion and settlement procedures are charged to an
account according to their estimate values; adjustment will be conducted upon confirmation of their
actual values. The Group should withdraw depreciation in the next month after completion.
17. Borrowing costs
The borrowing cost includes the interest expenses of the borrowing, amortization of underflow or
overflow from borrowings, additional expenses and the foreign exchange profit and loss because of
foreign currency borrowings. The borrowing costs incurred which can be directly attribute to the
fixed assets, investments properties, inventories requesting over 1 year purchasing or manufacturing
so to come into the expected condition of use or available for sale shall start to be capitalized when
expenditure for the assets is being occurred, borrowing cost has occurred, necessary construction for
bringing the assets into expected condition for use is in progress. The borrowing costs shall stop to
be capitalized when the assets come into the expected condition of use or available for sale. The
borrowing costs subsequently incurred should be recorded into profit and loss when occurred. The
borrowing costs should temporarily stop being capitalized when there is an unusual stoppage of
over consecutive 3 months during the purchase or produce of the capitalized assets, until the
purchase or produce of the asset restart.
The borrowing costs of special borrowings, deducting the interest revenue of unused borrowings
kept in the bank or the investment income from transient investment should be capitalized. The
capitalized amount of common borrowings should be calculated as follows: average assets
expenditure of the accumulated assets expenditure excess the special borrowing, multiplied by the
capital rate. The capital rate is the weighted average rate of the common borrowings.
18. Intangible assets
The intangible assets of the Group refer to land use right and software. For acquired intangible
assets, the actual cost are measured at actual price paid and relevant other expenses. The cost
invested into intangible assets by investors shall be determined according to the stated value in the
investment contract or agreement, except for those of unfair value in the contract or agreement.
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Land use right shall be amortized evenly within the amortization period since the remised date.ERP
system softwareand other intangible assets are amortized over the shortest of their estimated useful
life, contractual beneficial period and useful life specified in the law. Amortization charge is
included in the cost of assets or expenses, as appropriate, for the period according to the usage of
the assets. At the end of the year, for definite life of intangible assets, their estimated useful life and
amortization method shall be assessed. Any change shall be treated as change on accounting
estimate.
19. Impairment of non-current assets
The Group assesses at each balance sheet date whether there is any indication that long-term equity
investments, investment property, fixed assets, construction in progress and intangible assets with
definite useful life may be impaired. If there is any indication that an asset may be impaired, the
asset will be tested for impairment. Goodwill arising in a business combination and intangible
asset with infinite useful life are tested for impairment annually no matter there is any indication of
impairment or not.
Estimate of recoverable amount is the higher of its fair value less costs to sell and the present value
of the future cash flows expected to be derived from the asset.
If the recoverable amount of an asset is less than its carrying amount, the carrying amount shall be
impaired and the difference is recognised as an impairment loss and charged to profit or loss for the
period. Once an impairment loss on the assets is recognised, it is not reversed in a subsequent
period.
After assets impairment loss is recognized, depreciation and amortisation of the impaired asset shall
be adjusted in the following period so that the adjusted carrying amount(less expected residual value)
can be depreciated and amortised systematically within the remaining life.
When assessing goodwill for impairment, the carrying amount of goodwill shall be allocated evenly
to the assets group or assets portfolio. When testing the assets group or assets portfolio including
goodwill, if there is any indication of impairment , ignoring the goodwill and testing the assets
group or assets portfolio alone so to work out the recoverable amount and comparing to its carrying
amount and recognize the impairment loss. After that, testing the assets group or assets portfolio
with goodwill together, comparing the carrying amount of the assets group or assets
portfolio(including goodwill allocation) with recoverable amount , goodwill impairment shall be
recognized when the recoverable amount is lower than its carrying amount.
20. Long-term deferred expenses
Long-term deferred expenses of the Group refer to leasing expenses, redecoration expense and
others. The expenses should be amortized evenly over the beneficial period. If the deferred expense
cannot take benefit for the future accounting period, the unamortized balance of the deferred
expenses should be transferred into the current profit or loss. Leasing expenses will be amortized
within 10 years and 30years; redecoration expense and others will be amortized within 3 years.
21. Employee benefits
Employee’s benefit comprises short-term benefit, post-employment benefit, termination benefit and
other long-term employee’s benefit.
Short-term benefit includes salary, bonus, allowance, welfare, social insurance, housing funds,
labour union expense, staff training expense, during the period in which the service rendered by the
employees, the actually incurred short term employee benefits shall be recognized as liability and
shall be recognized in P&L or related cost of assets based on benefit objective allocated from the
service rendered by employees.
Post-employment benefits include the basic pension scheme and unemployment insurance etc.
Based on the risk and obligation borne by the Group, post-employment benefits are classified into
defined contribution plan and defined benefit plan. For defined contribution plan, liability shall be
recognized based on the contributed amount made by the Group to separate entity at the balance
sheet date in exchange of employee service for the period and it shall be recorded into current profit
and loss account or relevant cost of assets in accordance with beneficial objective.
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Termination benefits are employee’s benefit payable as a result of either an entity’s decision to
terminate an employee’s employment before the contract due date or an employee’s decision to
accept voluntary redundancy in exchange for those benefits. An entity shall recognize the
termination benefits as a liability and an expense at the earlier date when the entity cannot unilateral
withdraw the termination benefits due to employment termination plan or due to redundancy
suggestion, or when the entity can recognize the restructuring cost or expense arising from paying
termination benefits.
Other long-term employee’s benefit refers to all other employee benefits other than short-term
benefit, post-employment benefit and termination benefit.
If other long-term employee’s benefit is qualified as defined contribution plan, contribution made
shall be recognized as liabilities accordingly for the period in which the service are rendered by the
employee and recognized in the profit or loss for the current period or relevant cost of assets. Except
other long-term employee’s benefit mentioned above, obligation arising from defined benefit plan
shall be recognized in the profit or loss for the current period or relevant cost of assets in accordance
with the period when the service are rendered by the employee.
22. Contingent liabilities
When the company has transactions such as commitment to externals, discounting the trade
acceptance, unsettled litigation or arbitration which meets the following criterion, provision should
be recognized: It is the Company's present obligation; carrying out the obligation will probably
cause the Company's economic benefit outflow; the obligation can be reliably measured.
Provision is originally measured on the best estimate of outflow for paying off the present
obligations, and to consider the risk, uncertainty, time value of monetary relevant to contingent
items. If the time value of monetary is significant, the best estimate will be determined by
discounted cash outflow in the future. At each balance sheet date, the book value of provision is
reviewed and adjustment will be made on the book value if there is any change, in order to reflect
the current best estimate.
When compensation from the 3rd party is expected for full or partial contingent liability settlement,
the compensation shall be recognized as an asset separately and measured at no more than the book
value of contingent liability.
23. Share based payment
An equity-settled share-based payment in exchange for the employee’s services is measured at the
fair value at the date when the equity instruments are granted to the employee. Such fair value
during the vesting period of service or before the prescribed exercisable conditions are achieved is
recognised as relevant cost or expense on a straight-line during the vesting period based on the best
estimated quantity of exercisable equity instruments, accordingly increase capital reserve.
A cash-settled share-based payment is measured at the fair value at the date at which the Group
incurred liabilities that are determined based on the price of the shares or other equity instruments.
If it is immediately vested, the fair value of the liabilities at the date of grant is recognised as
relevant cost or expense, and corresponding liabilities. If it is exercisable only when the vesting
period of service is expired or the prescribed conditions are achieve, the fair value of liabilities
undertaken by the Group are re-measured at each balance sheet date based on the best estimate of
exercisable situation.
The fair value of the liabilities is re-measured at each balance sheet date. Any changes are
recognised in the profit or loss for the year.
If the granted equity instruments are cancelled within the vesting period, the equity instrument shall
be treated as accelerated vesting and the balance linked to the remaining vesting period shall be
recognized in the profit or loss account, accordingly be recognized in the capital reserve. If
employees or other parties can choose but fail to satisfy non-vesting conditions during the vesting
period, the Company sees this as cancellation of granted equity instruments.
24. Principle of recognition of revenue
The revenue of the Group is mainly from selling goods, providing labour services and abalienating
the right of use assets and construction contracts. Recognition standards for revenue are as below:
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
The revenue from selling goods: Company has transferred all the significant risks and rewards of
the ownership of the goods to the buyers, and retains neither continuing managerial involvement to
the degree usually associated with ownership nor effective control over the goods sold. The relative
sale proceeds have been reliably measured, respective economic benefit probably inflow to the
company, and the incurred or incurring cost can be reliably measured, and then the revenue can be
recognized.
In the reporting period, revenue recognition point and principle: goods is dispatched from
warehouse, client has no dispute on the quantity and quality of the goods, client collected or
authorized the agent to collect the good and sales amount is confirmed, have collected or expected
to collect the payment, cost of goods can be reliably measured, risk and reward is transferred so the
revenue is recognized.
Complete sets of engineering projects, if selling products and building installation part can be
separated and can be measured separately, selling products will be treated as sales of products.
Selling products and building installation will not be able to be distinguished, or can be
distinguished but can't be separately measured, selling products and building installation will be all
treated as building installation.
Income from abalienating the right of use assets is recognized when satisfying requirements related
economic benefit flows in very possibly, income can be measured reliably.
Amount of interest income is calculated according to the time and actual interest rate of the
monetary capital used by other party.
Income of using fee is calculated upon the charge period and calculation provided by the related
contract or agreement.
The service revenue should be recognized when the outcome of the services can be estimated
reliably.
The outcome of the services can be estimated reliably means the following conditions must be
satisfied at the same time:
Amount can be measured reliably
Relevant economic benefit probably flow into the company
The stage of completion of the service can be estimated reliably
Cost incurred or expect to incur in the transaction can be measured reliably
Total service income shall be recognized according to the price agreed in the contract or agreement
which has been settled or to be settled unless the price is not fair. Service revenue for the current
period shall be recognized based on the figure worked out on the total income multiply by the
percentage of completion of the service after deducting the service revenue recognized in the prior
period at the balance sheet and accordingly recognized the cost based on the figure worked out on
the total cost multiply by the percentage of completion of the service after deducting the service cost
recognized in the prior period.
At the balance sheet date, if outcome of the service can not be estimated reliably, the treatment shall
apply respectively
Costs incurred may be probably recovered, revenue is recognized only to the extent of costs
incurred that are expected to be recoverable, and costs shall be recognized as an expense in the
period in which they are incurred
Costs incurred are not probable of being recovered, then these cost incurred are recognized as an
expense immediately, no revenue shall be recognized.
In the case that selling goods and rendering service are both included in the agreements or contracts,
when selling products and rendering service part can be separated and can be measured separately,
selling products will be treated as sales of products. Selling products and rendering service will not
be able to be distinguished, or can be distinguished but can't be separately measured; selling
products and rendering service will be all treated as rendering service.
Revenue from construction contract
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
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.
The result of the fixed price of construction contract can be estimated reliably means the following
conditions must be satisfied at the same time:
Amount can be measured reliably
Relevant economic benefit probably flow into the company
Cost actually incurred can be well distinguished and measured reliably
The stage of completion and the cost expected to incur for the completion of the contract can be
estimated reliably
The result of the cost plus of construction contract can be estimated reliably means the following
conditions must be satisfied at the same time:
Relevant economic benefit probably flow into the company
Cost actually incurred can be well distinguished and measured reliably
Total construction contract income shall be recognized according to the price agreed in the contract
or agreement which has been settled or to be settled unless the price is not fair. Construction
contract income for the current period shall be recognized based on the figure worked out on the
total contracted income multiply by the percentage of completion of the construction after deducting
the revenue recognized in the prior period at the balance sheet and accordingly recognized the cost
based on the figure worked out on the total expected cost multiply by the percentage of completion
of the construction after deducting the construction e cost recognized in the prior period.
Construction contract income is recognized to the extend where the change of the contract, claim for
compensation and bonus can bring the income and can be measured reliably.
If the result of the construction contract is not able to be evaluated reliably, the treatment shall apply
respectively
If contract cost may be 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.
If contract cost may not be recovered, the cost of the contract shall be recognized as contract
expenses when incurred, and no contract revenue shall be recognized.
In case the expected total cost is greater than the total income, the expected loss will be recognized
as expense of the current period immediately.
.25. Government grants
A government grant is a monetary asset or non-monetary asset granted by government without
consideration. It shall be recognized when the company complies with the conditions attaching to
the grant and when the company is able to receive the grant.
Where a government grant is in the form of a transfer of monetary asset, it is measured at the
amount received. Where a government grant is made on the basis of fixed amount or conclusive
evidence indicates relevant conditions for financial support are met and expect to probably receive
the fund, it is measured at the amount receivable. Where a government grant is in the form of a
transfer of non-monetary asset, it is measured at fair value. If fair value cannot be determined
reliably, it is measured at a nominal amount of RMB1 Yuan.
Assets-related government grants are recognized as deferred income, and evenly amortized to profit
or loss over the useful life of the related asset. Income-related government grants that is a
compensation for related expenses or losses to be incurred in subsequent periods are recognized as
deferred income and credited to the relevant period when the related expense are incurred.
Government grants relating to compensation for related expenses or losses already incurred are
charged directly to the profit or loss for the period.
26. Deferred tax assets and deferred tax liabilities
The deferred income tax assets or the deferred income tax liabilities should be recognized according
to the differences (temporary difference) between the carrying amount of the assets or liabilities and
its tax base. Deferred tax assets shall be respectively recognised for deductible tax losses that can be
43
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
carried forward in accordance with tax law requirements for deduction of taxable income in
subsequent years. No deferred tax liabilities shall be recognized forany temporary difference arising
from goodwill initially recognition. No deferred tax assets or liabilities shall be recognized for any
difference arising from assets or liabilities initial recognition on non-business combination with no
effect on either accounting profit or taxable profit (or deductible tax loss). At the balance sheet date,
deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply
to the period when the asset is realised or liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be
available to offset the deductible temporary difference, deductible loss and tax reduction.
27.Lease
The leases of the Group refer to operating lease.
The rents paid for operating leases shall be recorded into the relevant asset costs or the profits and
losses for the current period by using the straight-line method over each period of the lease
term.Rents received, if the Group as a leaser shall be recognised as income under straight line
method.
28.Other significant accounting policy and estimate
Safety production cost
The company accrued the safety production cost in accordance with state regulation and recognized
in the cost of product or profit or loss for the current period as well as “special reserve’. When using
the accrued safety production cost, if it is expense, special reserve shall be offset directly and any
excessive proportion shall be directly recorded into profit and loss account; if it is related to asset,
“construction in progress” account shall be used for collecting expense and then fixe asset will be
recognized when the safety project is completed and reach the condition available for use.
Meanwhile, special reserve shall be offset based on the cost of fixed asset and depreciation shall be
recognized at the same amount. No depreciation shall be made any longer in the following period.
29.Changes in Accounting Policies, Accounting Estimates
Change in significant accounting policies None
Changes in accounting estimate None
VI.Taxation
1. The main applicable tax and rate to the Group as follows:
Tax Tax base Tax rate
Value-added tax (VAT) Sales revenue or Purchase 17%,13%,11%,6%,5%
Business tax Revenue from property lease, examination fee, 3%,5%
surcharge
City construction tax Value-added tax payables, business tax 7%
Education surcharge Value-added tax payables, business tax 3%
Local education surcharge Value-added tax payables, business tax 2%, 1.5%
Enterprise income tax(EIT) Current period taxable profit 15%,25%
70% of cost of own property or revenue from
Real estate tax 1.2% or 12%
leasing property
Land use tax Land using right area RMB 6 per square meter
Notes for tax entities with different EIT rate
(1)The parent company’s income tax was measured at 15%.
44
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
(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 are as follows:
Tax entities EIT rate
The Company 15%
Dalian Bingshan Group Engineering Co., Ltd. 15%
Dalian Bingshan Group Sales Co., Ltd. 25%
Dalian Bingshan Air-conditioning Equipment Co., Ltd. 25%
Dalian Bingshan Guardian Automation Co., Ltd. 15%
Dalian Bingshan Ryosetsu Quick Freezing Equipment Co., Ltd. 25%
Wuhan New World Refrigeration Industrial Co., Ltd. 15%
Bingshan Technology Service （Dalian） Co.,Ltd. 25%
Dalian Bingshan Engineering & Trading Co., Ltd. 25%
Dalian Universe Thermal Technology Co., Ltd. 25%
Dalian New Meica Electronics Technology Co., Ltd 25%
The company obtained the qualification of high and new technology enterprises on 29th September,
2014 approved by Dalian Science Technology Bureau, Dalian Finance Bureau, Dalian State Tax
Bureau and Local tax Bureau. The Certificate No is GF201421200004, and the validity duration is
three years. According to the tax law, the company can be granted for the preferential tax policy of
enterprise income tax rate of 15% in three years.
The company’s subsidiary, Dalian Bingshan JiaDe Automation Co., Ltd. obtained the qualification
of high and new technology enterprises on 21st September, 2015 approved by Dalian Science
Technology Bureau, Dalian Finance Bureau, Dalian State Tax Bureau and Local tax Bureau. The
Certificate No is GR201521200115, and the validity duration is three years. According to the tax
law, the company can be granted for the preferential tax policy of enterprise income tax rate of 15%
in three years.
The company’s subsidiary, Wuhan New World Refrigeration Industrial Co., Ltd obtained the
qualification of high and new technology enterprises on 28th October, 2015 approved by Hubei
Science Technology Bureau, Hubei Finance Bureau, Hubei State Tax Bureau and Hubei Local tax
Bureau. The Certificate No is GR201542000772, and the validity duration is three years. According
to the tax law, the company can be granted for the preferential tax policy of enterprise income tax
rate of 15% in three years
VII. Notes to the consolidated financial statements
1. Monetary fund
Items 30-06-2017 31-12-2016
Cash on hand 49,426.13 83,511.72
Cash in bank 442,394,071.37 691,155,311.26
Other monetary fund 26,606,200.89 23,976,815.56
Total 469,049,698.39 715,215,638.54
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
The restrained amount of monetary fund is shown as below.
Items 30-06-2017 31-12-2016
Deposit for bank acceptances 16,879,359.54 18,512,681.41
Deposit for letter of credit
Deposit for letter of guarantee 7,326,841.35 3,064,134.15
Deposit for Migrant workers 2,400,000.00 2,400,000.00
Total 26,606,200.89 23,976,815.56
The reason of the ending balance of Monetary fund decreased 34.42% compared with the beginning
balance was the raise fund from issuing of A-shares privately .
2. Notes receivable
(1) Classification
Items 30-06-2017 31-12-2016
Bank acceptance 56,952,756.05 38,332,233.37
Trade acceptance 77,829,842.53 88,076,016.22
Total 134,782,598.58 126,408,249.59
(2) pledged notes receivable at the end of the reporting period.
Items Pledged notes
Bank acceptance 13,147,517.83
Total 13,147,517.83
(3) The notes receivable endorsed but not matured at the end of the reporting period.
Items The derecognization amount Not derecognization amount
Bank acceptance 194,498,651.07
Trade acceptance
Total 194,498,651.07
3. Accounts receivable
(1) Classification
30-06-2017
Categories Balance Provision for doubtful debts
Book value
Amount Proportion Amount Proportion
Bad debt provided on group basis 1,058,487,500.01 100.00% 155,258,206.63 14.67% 903,229,293.38
Total 1,058,487,500.01 100.00% 155,258,206.63 14.67% 903,229,293.38
Continued:
31-12-2016
Categories Balance Provision for doubtful debts
Book value
Amount Proportion Amount Proportion
Bad debt provided on group
958,174,419.26 100.00% 151,064,459.72 15.77% 807,109,959.54
basis
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Total 958,174,419.26 100.00% 151,064,459.72 15.77% 807,109,959.54
Accounts receivable which bad debt provisions are provided on age basis in the group
30-06-2017
Account ages
Amount Provision for bad debts Proportion rates
Within 1 year 662,887,730.79 33,144,386.53 5.00%
1 to 2 years 220,610,699.98 22,061,070.00 10.00%
2 to 3 years 71,771,723.09 21,531,516.93 30.00%
3 to 4 years 40,488,812.22 20,244,406.11 50.00%
4 to 5 years 22,258,534.36 17,806,827.49 80.00%
Over 5 years 40,469,999.57 40,469,999.57 100.00%
Total 1,058,487,500.01 155,258,206.63
(2) Provision for bad debts accrued, regain or switch back in the period
In the current period, RMB 8,150,291.78were accrued provision for bad debts
(3) In the current period, RMB3,956,544.87 were receivable being written-off
(4) Top 5 on amount of accounts receivable
Companies Amount Proportion (%) Provision for bad debts
Panasonic Cold-Chain (Dalian) Co. , Ltd. 55,909,764.67 5.28 2,795,488.23
Xin Yi Yuan Da Construction installation engineering Co., Ltd. 38,167,774.72 3.61 2,251,777.47
Beijing Huashang Bingshan Refrigeration Equipment Co., Ltd. 35,645,856.35 3.37 1,846,092.82
Yi Du(Shen Yang) cold-chain logistics development Co., Ltd. 34,315,636.60 3.24 1,715,781.83
Anheuser-busch inbev beer (China) investment Co., Ltd.
18,102,240.01 1.71 905,112.00
Total 182,141,272.35 17.21 9,514,252.35
4. Advances to suppliers
(1) The aging of advances to suppliers
30-06-2017 31-12-2016
Account ages
Amount Proportion Amount Proportion
Within 1 year 124,609,893.58 91.49% 91,708,963.35 84.89%
1 to 2 years 9,215,028.81 6.77% 15,856,969.05 14.68%
2 to 3 years 1,910,975.60 1.40% 467,380.70 0.43%
Over 3 years 467,380.70 0.34%
Total 68,420,154.43 -- 108,033,313.10 --
(2)Top 5 on amount of advances to suppliers
% of the total advances to
Companies Amount Ages
suppliers
Shenyang Debao Hongtai Agricultural Development Co., Ltd. 13,206,355.64 Within 1 year 9.70
Dalian Hua Li coating equipment Co. , Ltd. 12,000,000.00 Within 1 year 8.81
47
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Ao LItong Crane (Liao Ning) Co., Ltd. 9,600,000.00 Within 1 year 7.05
Shenyang Debao Jia Hong Agricultural Technology Co., Ltd. 6,395,198.00 Within 1 year 4.69
Shanghai industrial automation equipment Co., Ltd. 6,125,000.00 Within 1 year 4.50
Total 47,326,553.64 34.75
5. Interest receivable
(1) Interest receivable
Items Closing Balance Opening Balance
Interest on Term Deposits 0.00 723,955.56
Total 0.00 723,955.56
6. Dividends receivable
Names 30-06-2017 31-12-2016
Wu Han steel electric ) Co. , Ltd. 39,025.00
Panasonic Compressor (Dalian) Co. , Ltd. 38,000,000.00
Panasonic Refrigeration (Dalian) Co. , Ltd. 800,000.00
Total 38,800,000.00 39,025.00
The ending balance of dividend receivable increased 99323.45% compared with the period-begin,
mainly due to the undue dividend receivable increased.
7. Other accounts receivable
(1) Classification
30-06-2017
Items Balance Provision for doubtful debts
Book value
Amount Proportion Amount Proportion
Bad debt provided on group basis 73,453,183.67 100.00% 9,737,214.98 13.26% 63,715,968.69
Total 73,453,183.67 100.00% 9,737,214.98 13.26% 63,715,968.69
Continued：
31-12-2016
Items Balance Provision for doubtful debts
Book value
Amount Proportion Amount Proportion
Bad debt provided on group basis 64,905,774.51 100.00% 7,648,317.94 11.78% 57,257,456.57
Total 64,905,774.51 100.00% 7,648,317.94 11.78% 57,257,456.57
There is no major single amount and bad debt provision provided individually.
Other accounts receivable which bad debt provisions are provided on age basis in the group:
48
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
30-06-2017
Account ages
Amount Provision for bad debts Proportion rates
Within 1year 50,710,555.19 2,535,527.75 5.00%
1 to 2 years 12,411,446.22 1,241,144.62 10.00%
2 to 3 years 2,893,148.67 867,944.60 30.00%
3 to 4 years 4,232,918.39 2,116,459.20 50.00%
4 to 5 years 1,144,881.94 915,905.55 80.00%
Over 5 years 2,060,233.26 2,060,233.26 100.00%
Total 73,453,183.67 9,737,214.98
(2) Provision for bad debts accrued, regain or switch back in the period
The bad debt provision has been accrued at the amount of 2,088,897.04 Yuan during the report
period
(3) There was no write-off of other accounts receivable during the current year
(4) The nature of other accounts receivable
Items 30-06-2017 31-12-2016
Guarantee deposits 46,417,396.58 34,372,184.48
Petty cash 17,116,449.09 9,061,619.39
To or fro accounts 8,924,032.46 16,038,288.24
Others 995,305.54 5,433,682.40
Total 73,453,183.67 64,905,774.51
(5) Top 5 on amount of other accounts receivable
Companies Contents Amount Ages Proportion Provision for bad debts
Shenyang Debao Hongtai Agricultural
Performance bonds 12,000,000.00 Less than 1 year 16.34% 600,000.00
Development Co., Ltd.
Shenyang Debao Jia Hong Agricultural
Performance bonds 10,000,000.00 Less than 1 year 13.61% 500,000.00
Technology Co., Ltd.
Debtor transferred to be
Nanjing Yurun Food Co., Ltd. 3,261,654.23 3-4years 4.44% 1,630,827.12
collected
Less than 1 year,2-3
Dalian Delta HK& China Gas Co., Ltd. deposit 2,730,000.00
years
3.72% 211,500.00
Jinzhou Dalian New District Building en 1-2years,2-3years,3-4ye
ergy efficiency management office deposit 1,586,623.95
ars
2.16% 215,838.58
Total 29,578,278.18 40.27% 3,158,165.70
8. Inventories
(1) Costs
30-06-2017 31-12-2016
Items Provision for Provision for
Book balance impairment of Book value Book balance impairment of Book value
inventories inventories
Raw materials 131,956,143.02 990,009.06 130,966,133.96 94,663,862.81 1,070,944.56 93,592,918.25
Work-in-progress 87,001,304.70 87,001,304.70 88,255,287.69 88,255,287.69
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Finished goods 113,514,766.93 320,000.00 113,194,766.93 92,718,030.69 320,000.00 92,398,030.69
Materials on
consignment for further 4,583,972.92 4,583,972.92 2,353,515.43 2,353,515.43
processing
Low-value
170,206.24 170,206.24 209,949.86 209,949.86
consumptions
Self-manufactured
35,801,069.44 35,801,069.44 31,999,705.01 31,999,705.01
semi-finished products
Constructing projects 41,294,420.07 41,294,420.07 40,729,017.13 40,729,017.13
Total 414,321,883.32 1,310,009.06 413,011,874.26 350,929,368.62 1,390,944.56 349,538,424.06
(2) Provision for impairment of inventories
Current year addition Current year disposal
Items 31-12-2016 30-06-2017
Provision Others Reversal Written-off Others
Raw materials 1,070,944.56 80,935.50 990,009.06
Finished goods 320,000.00 320,000.00
Total 1,390,944.56 80,935.50 1,310,009.06
The Company carried out impairment test for the inventory at period-end, accrued inventory falling
price reserves in the Period.
(3) Accrual for provision for decline in the value of inventories
Basis for net realizable value
Item Reasons for reverse/write-off
recognition
Raw materials Lower of cost and NRV Sold within the year
Finished goods Lower of cost and NRV
9. Other current assets
Items 30-06-2017 31-12-2016
Enterprise income tax prepaid 3,092.45 734,482.13
the pending VAT input tax 21,350,545.27 42,164,041.41
Prepaid expenses 417,040.14 355,521.38
Total 21,770,677.86 43,254,044.92
The closing balance of the Company’s other current assets has reduced by 49.67% compared with the opening
balance, mainly due to the pending VAT input tax has been transferred to accounts payable taxes from this account in
current period.
10.Available for sale financial assets
30-06-2017 31-12-2016
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Equity instruments
574,777,069.20 5,067,074.16 569,709,995.04 550,711,039.12 5,145,922.48 545,565,116.64
available for sale
Measured by fair
557,222,804.70 1,424,468.25 555,798,336.45 533,156,774.62 1,503,316.57 531,653,458.05
value
Measured by cost 17,554,264.50 3,642,605.91 13,911,658.59 17,554,264.50 3,642,605.91 13,911,658.59
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
30-06-2017 31-12-2016
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Total 574,777,069.20 5,067,074.16 569,709,995.04 550,711,039.12 5,145,922.48 545,565,116.64
(1) Available-for-sale financial assets measured at fair value method
Equity t instruments Debt instruments
Items Total
available for sale available for sale
Cost of Equity instrument/ amortized cost of debt instrument 27,098,895.00 27,098,895.00
The total amount of fair value change in other
530,123,909.70 530,123,909.70
comprehensive income
Fair value 557,222,804.70 557,222,804.70
Provision for impairment 1,424,468.25 1,424,468.25
(2) Available-for-sale financial assets measured at cost method
Book balance
Names Increased Decreased
Beginning Ending
during current during current Shareholding(%)
balance balance
period period
Zibo Traction Motor Co., Ltd. 849,000.00 849,000.00 0.76%
Liaoning Mike Group Co., Ltd. 1,020,000.00 1,020,000.00 3.57%
Guotai Junan Investment Management 3,057,316.00 3,057,316.00 0.22%
Co., Ltd.
Thermo King Container Temperature 11,207,806.00 11,207,806.00 17.80%
Control (Suzhou) Co., Ltd.
Liaoning Enterprises United Industry 105,000.00 105,000.00 4.20%
Company
Wuhan Steel and Electric Co., Ltd. 1,315,142.50 1,315,142.50 0.06%
Total 17,554,264.50 17,554,264.50
Continued：
Provision for impairment
Decreased Cash dividends
Names Increased during the
Beginning during Ending
during current current period
balance current balance
period
period
Zibo Traction Motor Co., Ltd. 849,000.00 849,000.00
Liaoning Mike Group Co., Ltd. 310,000.00
Guotai Junan Investment Management Co., Ltd. 2,688,605.91 2,688,605.91
Thermo King Container Temperature Control
(Suzhou) Co., Ltd.
Liaoning Enterprises United Industry Company 105,000.00 105,000.00
Total 3,642,605.91 3,642,605.91 310,000.00
On 26 June 2015, Guotai Junan Securities Co., Ltd. (“Guotai Junan” for short) listed on Shanghai Stock Exchange,
stock code 601211; as for the 27,098,895 shares of Guotai Junan, the Company measured the shares on fair
51
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
value.The company received cash dividend11,153,569.05 yuan within the period.
(3) Change of value of the equity instruments available for sale measured by cost within the
period.
Equity instruments Debt instruments
Categories others Total
available for sale available for sale
The impairment at the beginning of current year 5,145,922.48 5,145,922.48
Decreased during current year 78,848.32 78,848.32
The impairment at the end of the year 5,067,074.16 5,067,074.16
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
11. Long-term equity investments
Increase/Decrease
Provision
Beginning Gains and losses Adjustment Cash bonus or Provision for for
Name Changes Ending balance
balance recognized of other profits impairment of impairme
Increased Decreased of other Others
under the equity comprehensiv announced to the current nt
equity
method e income issue period
I Associates
Panasonic Refrigeration
157,425,641.15 -5,926,187.84 1,600,000.00 149,899,453.31
(Dalian) Co., Ltd.
Dalian Honjo Chemical Co.,
9,642,351.34 437,965.38 1,441,499.53 8,638,817.19
Ltd.
Panasonic Cold-Chain (Dalian)
217,687,237.26 3,593,423.52 4,800,000.00 216,480,660.78
Co., Ltd.
Keinin-Grand Ocean Thermal
Technology (Dalian) Co., 52,952,413.79 7,216,616.73 60,169,030.52
Ltd.
Panasonic Compressor (Dalian)
484,003,393.99 18,719,311.78 38,000,000.00 464,722,705.77
Co., Ltd.
Dalian Bingshan Metal
172,950,000.00 4,019,745.35 176,969,745.35
Technology Co., Ltd.
Dalian Bingshan Group
Management Consulting Co., 39,200,000.00 -390,808.03 38,809,191.97
Ltd.
MHI Bingshan Refrigeration
13,018,792.05 -1,201,596.65 11,817,195.40
(Dalian) Co.,Ltd.
Beijing Huashang Bingshan
Refrigeration and
769,463.27 -241,707.36 527,755.91
Air-conditioning Machinery
Co., Ltd.
Dalian Fuji Bingshan Vending
160,787,194.81 17,547,723.62 178,334,918.43
Machine Co., Ltd.
Jiangsu JingXue Insulation
151,527,707.42 3,878,101.09 155,405,808.51
Technology Co.,Ltd
Dalian Fuji Bingshan Vending
9,410,006.56 661,471.84 10,071,478.40
Machine Sales Co., Ltd.
53
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Increase/Decrease
Provision
Beginning Gains and losses Adjustment Cash bonus or Provision for for
Name Changes Ending balance
balance recognized of other profits impairment of impairme
Increased Decreased of other Others
under the equity comprehensiv announced to the current nt
equity
method e income issue period
Wuhan Lan Ning Energy
6,132,033.33 211,819.69 6,343,853.02
Technology Co., Ltd.
Wuhan Skaff Power Control
6,156,369.01 -913,484.47 5,242,884.54
Equipment Co., Ltd
Panasonic cold machine system
23,400,297.51 1,068,645.98 24,468,943.49
(Dalian) co., LTD
subtotal 1,292,912,901.49 212,150,000.00 48,681,040.63 45,841,499.53 1,507,902,442.59
Total 1,292,912,901.49 212,150,000.00 48,681,040.63 45,841,499.53 1,507,902,442.59
1.The resolution of the 11th meeting of the 7th Board of Directors of the company agreed the company and Dalian Bingshan Group Co., Ltd. to jointly invest in
the construction of the joint venture Dalian Bingshan Group Management Consulting Co., Ltd., the company invested RMB 49 million in cash, holding 49% stake. As
of June 30, 2017, the company actually invested RMB 39.2 million in cash, holding 49% stake, Dalian Bingshan Group Management Consulting Co., Ltd. has
officially started operating.
2.The resolution of the 12th meeting of the 7th Board of Directors of the company agreed the company to accept the transfer of 49% stake of Dalian Bingshan Metal
Technology Co., Ltd. (“Bingshan Metal Technology”) held by Dalian Bingshan Group Co., Ltd. The price of this equity stake assigning was based on the assessed value
of net assets of Bingshan Metal Technology issued by the third-party evaluation agency by taking December 31, 2016 as the base date, the price was determined to be
RMB 172,950,000 after negotiated by both parties. As of June 30, 2017, the above equity transaction has been completed and the company hold 49% equity stake of
Bingshan Metal Technology.
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
12. Investment property
(1)Investment property details
Construction
Items Buildings Land-use-rights Total
in progress
1. Original value
(1)Beginning balance 30,031,254.35 30,031,254.35
(2)Current year addition 144,777,219.55 24,391,511.82 169,168,731.37
Outsourcing
Transferred from Inventories\Fixed
asset-original cost\Construction in
progress
Enterprise merger increase
Shareholders invest
Transferred from other 144,777,219.55 24,391,511.82 169,168,731.37
(3)Current year disposal
disposal
Transferred to other
(4)Ending balance 174,808,473.90 24,391,511.82 199,199,985.72
2.Accumulated depreciation
(1)Beginning balance 1,425,601.41 1,425,601.41
(2)Current year addition 99,704,194.74 9,634,647.18 109,338,841.92
provision or amortization 1,046,304.82 121,957.56 1,168,262.38
Enterprise merger increase
Transferred from other 98,657,889.92 9,512,689.62 108,170,579.54
(3)Current year disposal
disposal
Transferred to other
(4)Ending balance
3..Provision for impairment
(1)Beginning balance
(2)Current year addition
provision or amortization
Enterprise merger increase
Transferred from other
(3)Current year disposal
disposal
Transferred to other
(4)Ending balance 101,129,796.15 9,634,647.18 110,764,443.33
4.Book value
(1)Ending book value 73,678,677.75 14,756,864.64 88,435,542.39
55
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Construction
Items Buildings Land-use-rights Total
in progress
(2)Beginning book value 28,605,652.94 28,605,652.94
(2) Investment property without owner’s certificates
Items Book value Reasons
# 6 workshop building on No. 106 Liaohe East Rd, Dalian
28,239,511.34 Final accounts uncompleted
Economic and Technology Development Zone
Total 28,239,511.34
(3) Explanation of investment property
The company signed rental contract with MHI Bingshan Refrigeration (Dalian) Co.,Ltd., and rent #
6 workshop building located on No. 106 Liaohe East Rd, Dalian Economic and Technology
Development Zone to MHI Bingshan Refrigeration (Dalian) Co., Ltd. The rental area is 15,259.04
square meters, and the rent term till 16th July, 2029. The annual rent fee is RMB 4.2 million after
considering the time value of money.
On June 22, 2017, the company has signed a land and house lease contract with Dalian Bingshan
Wisdom Park Co., Ltd. to rent out the whole land and house of the company’s old plant locating at
No. 888, Southwest Road, Shahekou District, Dalian City to Dalian Bingshan Wisdom Park Co.,
Ltd., with rental land area of 167,165.61 square meters and housing area of 105,652.43 square
meters, the lease term is from April 1, 2017 to December 31, 2036. The total rent for the previous
three years is RMB 20.34 million, of which the rent in 2017 is RMB 4.62 million, the rent in 2018 is
RMB 7.86 million, and the rent in 2019 is RMB 7.86 million. From January 2020, the two parties
will negotiate and determine the rent of the next three years according to the local market changes.
The closing balance of the company's investment real estate increased by 209.15% compared with
the opening balance, mainly due to the transferred-in leased fixed assets and intangible assets in the
current period.
13. Fixed assets
(1) Fixed assets details
Other
Items Buildings Machinery Vehicles Total
equipments
1. Original value
(1)Beginning balance 451,766,766.84 515,351,153.65 23,073,454.57 48,512,512.27 1,038,703,887.33
(2)Current year addition 263,825,468.53 33,795,270.38 1,053,512.86 862,590.72 299,536,842.49
Purchased 1,761,538.22 1,053,512.86 708,121.09 3,523,172.17
Transferred from
263,825,468.53 32,033,732.16 154,469.63 296,013,670.32
Construction in progress
Enterprises merger
Shareholders investment
Leased in from financing
Other transferred in
(3)Current year reduction 144,777,219.55 10,206,010.56 2,338,456.00 759,471.26 158,081,157.37
Disposal 10,206,010.56 2,338,456.00 759,471.26 13,303,937.82
Leased out from
financing
Other transferred out 144,777,219.55 144,777,219.55
(4)Ending balance 570,815,015.82 538,940,413.47 21,788,511.43 48,615,631.73 1,180,159,572.45
2.Accumulated depreciation
56
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Other
Items Buildings Machinery Vehicles Total
equipments
(1)Beginning balance 155,865,048.40 320,193,873.95 14,385,210.12 36,696,181.24 527,140,313.71
(2)Current year addition 5,422,525.25 12,989,084.75 899,090.56 1,368,881.01 20,679,581.57
Provision 5,422,525.25 12,989,084.75 899,090.56 1,368,881.01 20,679,581.57
Enterprises merger
increased
Other transferred in
(3)Current year disposal 98,657,889.92 9,834,024.33 1,903,661.01 685,496.64 111,081,071.90
Disposal 9,834,024.33 1,903,661.01 685,496.64 12,423,181.98
Leased out from
financing
Other transferred out 98,657,889.92 98,657,889.92
(4)Ending balance 62,629,683.73 323,348,934.37 13,380,639.67 37,379,565.61 436,738,823.38
3..Provision for impairment
(1)Beginning balance 555,027.75 555,027.75
(2)Current year addition
Withdrew
Enterprises merger
increase
Other transferred in
(3)Current year disposal
Disposal
Leased out from
financing
Other transferred out
(4)Ending balance 555,027.75 555,027.75
4.Net Book value
(1)Ending book value 508,185,332.09 215,036,451.35 8,407,871.76 11,236,066.12 742,865,721.32
(2)Beginning book value 295,901,718.44 194,602,251.95 8,688,244.45 11,816,331.03 511,008,545.87
(2)There were no idle fixed assets during the current period.
(3) Fixed assets without owner’s certificates
Items Book value Reasons
Buildings 106,604,362.94 Final accounts uncompleted
Total 106,604,362.94
(4) Wuhan New World Refrigeration Industrial Co., Ltd. borrowed RMB45,000,000 from bank and
mortgaged with its buildings, machinery and land-use-rights . Please refer to the note V.18.
The closing balance of the company's fixed assets increased by 45.37% compared with the opening
balance, mainly due to the construction of some new plants in the current period shifting from the
construction in progress to the fixed assets.
14. Project in construction
(1) Details
57
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Transferred Other
Increased Percenta
into fixed decrease
Balance of during Balance of Sources of ge of
Items Budget assets during d during
31-12-2016 current 30-06-2017 funds complet
current current
period ion
period period
Internally
Buildings 95.15%
351,685,931.96 250,913,095.82 46,929,387.56 263,825,468.53 34,017,014.85 generated
renovation
funds
Internally
Machinery 128,974,211.93 70,072,395.96 34,861,151.10 32,033,732.16 72,899,814.90 generated 87.68%
funds
Internally
Other 1,104,701.13 661,185.00 65,261.94 154,469.63 571,977.31 generated 65.76%
Equipments
funds
Total 481,764,845.02 321,646,676.78 81,855,800.60 296,013,670.32 107,488,807.06
(2) There was no provision for impairment needed withdrawn.
(3) Construction in process decreased 66.58% over that of last Period, mainly due to the
construction of some new plants in the current period shifting from the construction in progress to
the fixed assets.
15. Intangible assets
(1) Intangible assets details
Items Land-use-rights Non-Patents Others Total
1. Original value
(1)Beginning balance 183,963,902.62 515,224.41 15,180,450.31 199,659,577.34
(2)Current year addition
Purchase 1,486,182.97 1,486,182.97
Internal research and
1,486,182.97 1,486,182.97
development
Enterprises merger increase
Shareholders invest
Other transferred in
(3)Current year disposal 24,391,511.82 625,000.00 25,016,511.82
Disposal 625,000.00 625,000.00
Other transferred out 24,391,511.82 24,391,511.82
(4)Ending balance 159,572,390.80 515,224.41 16,041,633.28 176,129,248.49
2. Amortization
(1)Beginning balance 37,791,708.77 515,224.41 6,638,431.64 44,945,364.82
(2)Current year addition 1,702,920.02 720,442.52 2,423,362.54
Provision 1,702,920.02 720,442.52 2,423,362.54
Enterprises merger increase
Other transferred in
(3)Current year disposal 9,512,689.62 250,815.00 9,763,504.62
Disposal 250,815.00 250,815.00
58
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Items Land-use-rights Non-Patents Others Total
Other transferred out 9,512,689.62 9,512,689.62
(4)Ending balance 29,981,939.17 515,224.41 7,108,059.16 37,605,222.74
3..Provision for impairment
(1)Beginning balance
(2)Current year addition
Withdraw
Enterprises merger increase
Other transferred in
(3)Current year disposal
Disposal
Other transferred out
(4)Ending balance
4.Net book value
(1)Ending book value 129,590,451.63 8,933,574.12 138,524,025.75
(2)Beginning book value 146,172,193.85 8,542,018.67 154,714,212.52
(2) There were no intangible assets increased by internal research and development.
16. Goodwill
(1) The original value of the book
Increased during Decreased during
Items 31-12-2016 30-06-2017
current period current period
Dalian Universe Thermal Technology
1,440,347.92 1,440,347.92
Co., Ltd.
Dalian Bingshan Security Leisure
310,451.57 310,451.57
Industrial Engineering Co., Ltd
Total 1,750,799.49 1,750,799.49
(2) Preparation for the impairment of Goodwill
In the year 2015, the book value of equity investment of Dalian Niweisi LengNuan Technology Co., Ltd exceeds the
fair value of the proportion of the acquired company’s identifiable net asset. The difference between the book value
of equity investment of 48, 287,589.78 Yuan and the identifiable net asset’s fair value of Dalian Sanyo High-efficient
Refrigeration System Co., Ltd of 46,847,241.86 Yuan on the acquisition date of July 31st 2015 is recognized as
goodwill of 1,440,347.92 Yuan on the group consolidated financial report at the end of the year.
In the year 2016, the company purchases shares of Dalian Security Leisure Industry Co., Ltd and gains control. The
transferred price is based on the net asset of Dalian Security Leisure Industry Co., Ltd on June 30th 2016. Negotiated
with Dalian Security Leisure Industry Co., Ltd’s shareholder Security Water Project (China) Limited Company, the
transfer price is the combination cost on the purchasing date which is 5,359,548.42 Yuan, the fair value of proportion
of Dalian Security Leisure Industry Company’s identifiable net asset is 5,049,096.85 Yuan on the purchasing day,
therefore, goodwill is 310,451.57Yuan on the purchasing date.
The book value of goodwill from business combination of Dalian Niweisi LengNuan Technology Co., Ltd and
Dalian Security Leisure Industry Co., Ltd which are not under same control shall be allocated into the relevant asset
group using the reasonable method since acquisition date and taken impairment test on relevant asset group where
the goodwill is included. The obvious impairment indication of the goodwill hasn’t been found. Thus no goodwill
impairment provision has been made.
17. Long-term deferred expenses
59
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Increased Amortized
Other
Items 31-12-2016 during current during current 30-06-2017
decrease
period period
Employee’s dormitory use right 2,427,605.34 69,239.16 2,358,366.18
Renovation and rebuilding 681,294.43 94,339.62 396,089.84 379,544.21
royalty 1,867,125.00 93,356.25 1,773,768.75
House Rental 850,320.00 53,145.00 797,175.00
The Membership fee 489,500.00 8,250.00 481,250.00
Total 4,448,719.77 1,961,464.62 620,080.25 5,790,104.14
The closing balance of the company's long-term unamortized expenses increased by 30.15%
compared with the opening balance, mainly due to the newly increased unamortized royalties in the
current period.
18. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
30-06-2017 31-12-2016
Items Deductible Deductible
temporary Deferred tax assets temporary Deferred tax assets
difference difference
Provision for assets impairment 126,080,465.79 26,407,039.59 124,545,784.82 25,188,239.74
Equity incentive expenses 23,346,094.00 3,501,914.10 17,103,388.00 2,565,508.20
Total 149,426,559.79 29,908,953.69 141,649,172.82 27,753,747.94
(2) Deferred liabilities tax assets had not been off-set
30-06-2017 31-12-2016
Items Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Changes in fair value of
530,123,909.70 79,518,586.46 504,557,879.67 75,683,681.95
available for sale financial assets
Total 530,123,909.70 79,518,586.46 504,557,879.67 75,683,681.95
(3) Shown to offset the net after the deferred income tax assets and liabilities
Items 30-06-2017 31-12-2016
Deferred liabilities tax assets 29,908,953.69 27,753,747.94
Deferred income tax liabilities 79,518,586.46 75,683,681.95
(4) Unconfirmed deferred income tax assets report
Items 30-06-2017 31-12-2016
Deductable temporary difference 48,871,511.03 44,617,762.47
60
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Items 30-06-2017 31-12-2016
Deductable losses 48,935,108.44 48,249,177.63
Total 97,806,619.47 92,866,940.10
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Items 30-06-2017 31-12-2016 Notes
2018 2,044,154.14 2,044,154.14
2019 1,843,026.73 1,843,026.73
2020 11,863,347.41 11,863,347.41
2021 31,570,033.14 32,498,649.35
2022 1,614,547.02
Total 48,935,108.44 48,249,177.63 --
19. Short-term loans
Terms of loans 30-06-2017 31-12-2016
Mortgage loan 45,000,000.00 45,000,000.00
Credit loan 170,319,700.00
Total 215,319,700.00 45,000,000.00
(1) Wuhan New World Refrigeration Industrial Co., Ltd. borrowed short-term loan RMB45,000,000
from bank and mortgaged with its buildings, machinery and land-use-rights. (2)Short-term loans
increased 378.49% over that of last Period, refers to investment for the Credit loan.
20. Notes payable
Items 30-06-2017 31-12-2016
Trade acceptance notes 13,413,061.15 7,834,155.50
Bank acceptance notes 168,008,145.61 186,728,579.29
Total 181,421,206.76 194,562,734.79
21. Accounts payable
Items 30-06-2017 31-12-2016
Payable for materials 770,312,387.48 654,656,986.02
Payable for projects 106,332,889.74 199,503,352.11
Payable for equipments 5,294,490.41 3,565,090.35
Total 881,939,767.63 857,725,428.48
(2) Accounts payable with age over 1 year
61
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Name of company Closing Balance Reason of unpaid or not carried forward
Project is uncompleted contract is not
Wuhan Kaixing Development Co., LTD 10,940,816.75
finished
Project is uncompleted contract is not
Heilongjiang Longleng Technology Co., LTD 9,413,290.00
finished
Project is uncompleted contract is not
Binzhou Shanfu Refrigeration Engineering Co., LTD 6,566,526.22
finished
Project is uncompleted contract is not
Wuhan Zhongwei explosive control system Co.,Ltd 5,791,095.00
finished
Project is uncompleted contract is not
BAC（Dalian）Co.,Ltd 5,250,040.00
finished
Project is uncompleted contract is not
Total 37,961,767.97 finished
22. Accounts received in advance
(1) Details
Items 30-06-2017 31-12-2016
Advances on sales 143,969,111.21 150,098,892.29
Total 143,969,111.21 150,098,892.29
(2) Accounts received in advance aged over 1 year
Items 30-06-2017 Reasons
Jiangsu Ruixiang Chemical Co., Ltd. 2,023,581.40 Unsettled contract payments on sets projects
Total 2,023,581.40
23.Payroll payable
(1) Details
Increased during Decreased during
Items 31-12-2016 30-06-2017
current period current period
Short-term salary 50,256,392.86 142,125,397.17 165,187,800.52 27,193,989.51
Departure welfare-defined
18,822,599.61 18,822,599.61
contribution plans
Termination benefits 41,091.97 41,091.97
Total 50,256,392.86 160,989,088.75 184,051,492.10 27,193,989.51
(2)Short-term salary
Increased during Decreased during
Items 31-12-2016 30-06-2017
current period current period
1.Wages and salaries, bonuses, allowances and
33,496,485.39 112,058,251.53 133,214,933.87 12,339,803.05
subsidies
2.Staff welfare 14,173,682.87 4,769,939.82 6,411,289.76 12,532,332.93
3.Social insurance 8,963,398.63 8,963,398.63
Including： ①Medical insurance 7,069,743.07 7,069,743.07
② Work-related injury insurance 985,144.14 985,144.14
③Materiel insurance 908,511.42 908,511.42
62
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
④Housing subsidies
4. Housing funds 1,575,760.60 14,340,461.54 14,415,946.26 1,500,275.88
5.Labor union fund and employee education fee 1,010,464.00 1,993,345.65 2,182,232.00 821,577.65
6. Non-currency welfare
Total 50,256,392.86 142,125,397.17 165,187,800.52 27,193,989.51
(3) Defined contribution plans
Increased during Decreased during
Items 31-12-2016 30-06-2017
current period current period
Basic retirement pension 17,198,807.22 17,198,807.22
Unemployment
574,821.01 574,821.01
insurance
Enterprise annuity 1,048,971.38 1,048,971.38
Total 18,822,599.61 18,822,599.61
The company took part in the government’s basic retirement pension and unemployment insurance
according to the related legislation, and paid the insurance expenses every month and recorded as
expenses or costs of assets. There was no other obligation of payment.
There was no amount delay paid at the end of the current year.The ending balance of wages payable
decreased 45.89% over that of period-begin, mainly because the year-end bonus for year of 2016 are
paid in the Period.
24. Taxes payable
Items 30-06-2017 31-12-2016
Value-added tax 6,358,777.78 7,478,219.16
Business tax
Enterprise income tax 6,589,699.75 7,007,154.72
Individual income tax 578,359.76 494,374.71
City maintenance and construction tax 485,819.98 520,432.62
Property tax 893,491.20 542,956.99
Land use tax 553,224.98 553,224.98
Education surtax 337,439.59 371,260.24
Local education surtax
Water project fund/River route maintenance fee 323.58 1,131,727.59
Safeguard fund for disables 460.00 580.00
Non-resident enterprise income tax 707,030.62
Stamp duty 103,878.04 305,158.47
Total 16,608,505.28 18,405,089.48
25. Dividend payable
Name of investors 30-06-2017 31-12-2016 Reasons
Ordinary share dividend 863,516.60 863,516.60
63
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Total 863,516.60 863,516.60
26. Other accounts payable
(1) Details
Items 30-06-2017 31-12-2016
Obligation of restricted shares buy-back 67,615,856.00 67,615,856.00
Loan from non-financial institutes 5,640,000.00 6,700,000.00
Cash pledge and security deposit 9,455,099.21 8,601,269.21
Apply for reimbursement and unpaid 14,250,164.16 17,087,595.92
Cash from related parties 92,261,255.10 791,951.65
Receipts under custody 8,738,214.01 12,237,893.26
Others 373,781.00 2,286,168.76
Total 198,334,369.48 115,320,734.80
(2) Major amount aging over 1 year
Name of investors 30-06-2017 Unpaid reason
Restricted share buy back 16,930,200.00 Not reach the return condition of contract
Total 16,930,200.00
The closing balance of the company’s other payables increased by 71.99% compared with the
opening balance, mainly because the equity transferred money that the company should pay to the
related parties in the current period has not reached the payment period.
27. Long-term loans
(1)Details
Items 30-06-2017 31-12-2016
Guarantee loan 160,000,000.00
Total 160,000,000.00
Guokaifazhan fund give support to the company’s intelligent and green equipment of cold
chain and service industry base project and provide special fund to the company’s holding
shareholder, Bingshan Group. The fund is 0.16 billion Yuan with 10year’s expiration at 1.2% rate.
Once the fund arrives, Bingshan Group will give it to the company at the same rate of 1.2% in lump
sum. The above fund needed to be warranted by the company. The guarantee seems to be given
for the holding shareholder in the form, but it is for the company itself in nature.
28.Deferred revenue
Increased
Decreased during
Items 31-12-2016 during current 30-06-2017 Reasons
current period
period
Associated with assets 52,906,670.77 31,000,000.00 832,836.00 83,073,834.77
Associated with earnings 4,489,948.23 4,489,948.23
Total 57,396,619.00 31,000,000.00 5,322,784.23 83,073,834.77 --
Subsidy from government
64
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Converted to
Increased
non-business Other
Liabilities 31-12-2016 during current 30-06-2017 Notes
incomes during decrease
period
current period
Subsidy fund for Associated
highly effective
3,152,624.00 275,836.00 2,876,788.00 with the
heat pump and
related system asset
Contribution to Associated
subsidiary
44,560,000.00 557,000.00 44,003,000.00 with the
company
relocation asset
Environmental
saving energy
efficient Associated
refrigeration
31,000,000.00 31,000,000.00 with the
compressor
technology asset
industrialization
project
Application of
NH3 and CO2
instead of R22 Associated
screw
5,194,046.77 5,194,046.77 with the
refrigerating
machine asset
combined
condensing unit
Application of
NH3 and CO2
instead of R22
screw Associated
4,489,948.23 4,489,948.23
refrigerating with earning
machine
combined
condensing uni
Total 57,396,619.00 31,000,000.00 5,322,784.23 83,073,834.77
The closing balance of the Deferred revenue increased by 44.74% compared with the opening
balance, mainly because the Subsidy from government increased.
29.Share capitals
Shares Shares
（before change） （after change）
items Changes
number proportion number proportion
I. Non-circulating share capital with restricted
trade conditions 82,340,713 13.46% -55,246,643 27,094,070 3.16%
Executive lock stock 154,117 0.02% +2,507,853 2,661,970 0.31%
Restricted stock after starting 58,645,096 9.59% -58,645,096 0 0
Equity incentive restricted stock 23,541,500 3.85% +890,600 24,432,100 2.85%
II. Circulating share capital 529,435,845 86.54% +299,957,266 829,393,111 96.84%
1. Domestically listed
ordinary shares 356,935,845 58.34% +230,957,266 587,893,111 68.64%
2. Domestically listed foreign shares 172,500,000 28.20% +69,000,000 241,500,000 28.20%
III. Total shares 611,776,558 100% 244,710,623 856,487,181 100%
30 .Capital surpluses
Increased during current Decreased during current
Items 31-12-2016 30-06-2017
period period
65
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Capital premium 968,436,962.45 300,860,623.00 667,576,339.45
Other capital
84,249,811.80 6,242,706.00 90,492,517.80
surplus
Total 1,052,686,774.25 6,242,706.00 300,860,623.00 758,068,857.25
Share premium decreased because the company 2016 annual equity apportion, which increased 4
shares by every 10 shares of capital reserve RMB 244,710,623.00，refer to note VI.29 share capital
for details, others is the adjustment of Business combination under the same control.
Other capital reserve is the expense for share incentive plan.
31.Treasury stock
Increased during Decreased during
Items 31-12-2016 30-06-2017
current period current period
Implementation of equity
67,615,856.00 67,615,856.00
incentive to buy back
Total 67,615,856.00 67,615,856.00
The company implements restricted share incentive plan and recognizes buy-back obligation as liability.
At the year end, treasure stock is recognized based on the numbers of restricted share in the vesting
period and buy back price agreed in the share incentive plan.
32. Other comprehensive income
2017.01-06
Amount for After-tax
Items 31-12-2016 the period Less：income attribute to 30-06-2016
* **
before income tax the parent
tax company
I.Later can’t
reclassified into
profit and loss of
other
comprehensive
income
II. Later reclassified
into profit and loss
of other 431,639,323.52 45,079,646.64 23,612,187.15 21,467,459.49 453,106,783.01
comprehensive
income
1. Later reclassified
into profit and loss of
other comprehensive
income of long term 2,765,125.85 263,666.08 -263,666.08 2,501,459.77
investments
accounting by equity
method
2. Changes in fair
value recognized in
gains and losses of 428,874,197.67 45,079,646.64 23,348,521.07 21,731,125.57 450,605,323.24
the available-for-sale
financial assets
3. Foreign currency
translation
differences of
financial statements
Total 431,639,323.52 45,079,646.64 23,612,187.15 21,467,459.49 453,106,783.01
*Less：Previously recognized in profit or loss in other comprehensive income
**After-tax attribute to minority shareholder
33. Special reserve
66
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Increased Decreased
Items 31-12-2016 during current during current 30-06-2017
year year
Safety production expenses 1,008,404.87 1,008,404.87
Total 1,008,404.87 1,008,404.87
34. Surplus reserves
Increased during Decreased during
Items 31-12-2016 30-06-2017
current period current period
Statutory surplus reserves 299,882,056.06 299,882,056.06
Discretionary surplus reserve 320,696,791.46 29,208,229.69 349,905,021.15
Total 620,578,847.52 29,208,229.69 649,787,077.21
The increase of the surplus reserves were because the other reserved capital RMB29.208
million-yuan was withdrawn on the basis of 20% of the company’s net profit of 2016 according to
the resolution of the General Meeting of Shareholders of year 2016.
35. Retained earnings
Items 30-06-2017 30-06-2016
Retained earnings at the end of prior year 652,022,101.57 525,925,066.25
Add: Changes in accounting policies 19,688,488.45
At beginning of the year after retrospective adjustment 652,022,101.57 545,613,554.70
Add: Net profit of the current period 98,260,163.09 70,632,718.91
Less: Appropriation of statutory surplus reserves 29,208,229.69 25,204,992.51
Appropriation of discretionary surplus reserve
Appropriation of employee’s welfare and bonus fund in foreign invested company
Cash dividends
Dividends payable for common shares 61,177,655.80 36,016,497.50
Retained earnings at the end of the current period 659,896,379.17 555,024,783.60
36. Total operating income and operating cost
(1) Total operating income and cost
2017-01-06 2016-01-06
Items
Income Cost Income Cost
Key business 987,663,610.92 810,698,503.30 823,094,880.95 664,134,841.00
Other business 14,715,106.58 6,583,401.75 7,779,118.70 4,129,943.49
Total 1,002,378,717.50 817,281,905.05 830,873,999.65 668,264,784.49
37. Taxes and surcharges
Items 2017.01-06 2016.01-06
Business tax 1,586,176.90
67
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
City maintenance and construction tax 1,351,623.47 2,750,214.17
Education surtax 935,946.75 1,956,366.97
Dike maintenance fee 356.44
Property tax 2,730,790.28
Land use tax 2,450,463.10
Stamp duty 694,759.27
Vehicle and vessel tax 13,227.64
Others 64,958.38
Total 8,177,166.95 6,357,716.42
38. Selling and distribution expenses
Items 2017.01-06 2016.01-06
Handle official business expenses 5,090,769.03 8,471,788.53
Salaries and subsidies 14,995,121.09 12,327,952.20
Depreciation expenses 171,586.90 209,599.16
Transportations expenses 8,587,934.72 5,813,487.27
Entertainment expenses 3,460,760.50 2,191,836.31
Traveling expenses 5,842,912.55 9,026,118.33
Maintenance and repair expenses 4,104,855.06 3,160,120.03
Advertisement and bids expenses 974,753.15 479,824.80
Others 625,718.28 671,149.94
Total 43,854,411.28 42,351,876.57
39. Administrative expenses
Items 2017.01-06 2016.01-06
Handle official business expenses 8,006,866.58 7,146,899.08
Salaries and subsidies 65,086,729.83 60,828,792.46
Depreciation expenses 4,057,494.71 4,619,430.91
Transportations expenses 0.00 149,474.47
Entertainment expenses 1,596,655.13 1,618,368.71
Traveling expenses 4,429,526.62 5,052,846.07
Maintenance and repair expenses 3,083,226.59 2,436,829.51
Advertisement expenses 270,057.65 97,363.40
Other taxes and fees 165,543.62 6,302,663.17
Insurance expenses 520,621.31 529,161.15
Research and development expenses 13,622,171.89 12,447,488.02
Amortization of long term assets 2,446,577.27 2,460,670.57
Design consultant and test service expenses 3,321,476.03 2,599,058.70
Safety production fees 1,613,203.82 1,218,456.35
Others 1,346,672.83 643,288.90
Total 109,566,823.88 108,150,791.47
40. Financial expenses
Items 2017.01-06 2016.01-06
Interest expenses 3,373,803.53 3,530,211.72
Less:Interest income 1,290,291.01 1,491,672.49
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Losses on exchange(Less: Gain on exchange) -164,598.81 -1,344,743.50
Other expenses 1,075,814.23 838,037.88
Total 2,994,727.94 1,531,833.61
The company's current financial expenses increased by 95.50% compared with the previous period,
mainly due to the increase in exchange losses in the current period.
41. Impairment losses
Items 2017.01-06 2016.01-06
Provision for bad debts 10,239,188.82 11,009,110.70
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
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 10,239,188.82 11,009,110.70
The Company's asset impairment loss in current period has an increase over the previous period,
mainly due to an increase in provision for bad debts of receivables in current period.
42. Gain/ (loss) from investment
(1) Details
Items 2017.01-06 2016.01-06
Calculated by equity method 48,681,040.63 59,987,593.85
Calculated by cost method
Gain from disposal long-term equity investment 263,666.08
Gain from holding of financial assets available for sale 11,463,569.05 15,961,425.40
Gain from disposal financial assets available for sale 27,467,019.93
Total 87,875,295.69 75,949,019.25
43. Non-business incomes
(1)Details
The amount recorded in
Items 2017.01-06 2016.01-06 non-recurring gains and losses of
current period
Gain on the disposal of non-current
143,329.77 64,284.56 143,329.77
assets
Penalty and fine income 329,371.34 188,975.90 329,371.34
Subsidy fund from government
Deferred income
Government grants 6,355,937.98 7,459,757.74 5,523,101.98
Debts need not paid
Others 2,327.66 14,409.73 2,327.66
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Total 6,830,966.75 7,728,227.93 5,998,130.75
(2) Subsidy fund from government
Items 2017.01-06 2016.01-06 Explanations
Small and medium enterprises international market
development funds 300,000.00 Related to gain
Allowance for exporting from new &high technology zone
of Dalian 22,000.00 Related to gain
Dalian science and technology bureau 20,000.00 Related to gain
Subsidy of economic support policy 52,000.00 30,000.00 Related to gain
R22 replacement subsidy 4,489,948.23 5,533,711.00 Related to gain
Taxes refund 1,115.75 1,063,210.74 Related to gain
subsidy of a new type of wall material for the west lake
305,038.00 Related to gain
district
Stabilization subsidy 333,000.00 Related to gain
Subsidy fund for highly effective heat pump and related
275,836.00 275,836.00 Related to Asset
system
Contribution to subsidiary company relocation 557,000.00 557,000.00 Related to Asset
Total 6,355,937.98 7,459,757.74
44. Non-business expenses
The amount recorded in
Items 2017.01-06 2016.01-06 non-recurring gains and losses of
current period
Loss on the disposal of non-current assets 15,476.77 189,436.67 15,476.77
Fines and penalties 50.00
Outward donation 10,000.00 60,000.00 10,000.00
Others 42,399.10 34,537.82 42,399.10
Total 67,875.87 284,024.49 67,875.87
The non-operation expenditure decreased76.10% over that of last period, mainly due to the decrease
in losses of the Company's non-current assets disposal in current period.
45. Income tax expenses
(1) Details:
Items 2017.01-06 2016.01-06
Current income tax expense 8,316,752.04 6,987,420.74
Deferred income tax expense -2,155,205.75 -1,449,450.41
Total 6,161,546.29 5,537,970.33
(2) Adjustment process of accounting profit and income tax expense
Items 2017.01-06
Total profits 104,902,880.15
Current income tax expense accounted by tax and relevant
15,735,432.02
regulations
Influence of different tax rate suitable to subsidiary 3,289,822.49
Influence of income tax before adjustment -227,549.47
Influence of non taxable income -13,076,044.64
Influence of not deductable costs, expenses and losses -516,760.09
Influence of deductable losses of deferred income tax assets
70
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Items 2017.01-06
derecognized used in previous period
Influence of deductible temporary difference or deductible losses
956,645.98
of deferred income tax assets derecognized in reporting period.
Income tax expenses 6,161,546.29
46.Other comprehensive income
Refer to the note VI.32 other comprehensive income for details.
47. Relevant information about cash flow statement
(1) Other cash received relating to operating activities
Items 2017.01-06 2016.01-06
Government grants 32,111,189.00 6,221,088.91
Received travel expense receivable 1,184,760.87 1,414,024.35
Deposit received 9,873,997.27 5,013,079.16
Received amount paid on behalf of related companies 142,350.94 1,060,540.84
interest income 2,035,021.82 918,887.36
Others 2,294,063.84 7,536,256.32
Total 47,641,383.74 22,163,876.94
(2) Other cash paid relating to operating activities
Items 2017.01-06 2016.01-06
Borrowing of travel expense 6,984,829.71 5,315,059.64
Deposit paid 13,346,261.60 16,553,871.66
Expenditure 55,759,234.64 44,419,343.39
Bank handling charges 1,075,814.23 838,037.88
Others 1,402,529.43 3,125,968.44
Total 78,568,669.61 70,252,281.01
(3) Cash receipts related to other financing activities
Items 2017.01-06 2016.01-06
Guarantee money took back 21,576,815.56 20,665,689.93
The dividend of odd lots 45,137.75
Total 21,576,815.56 20,710,827.68
(4) Other cash paid relating to financing activities
Items 2017.01-06 2016.01-06
Interests on discount of bill acceptance
Guarantee money paid 24,206,200.89 10,121,261.17
Total 24,206,200.89 10,121,261.17
48. Complementary information for consolidated cash flow statement
(1) The relationship between the net profit and the net cash flows from operating activities
71
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Items 2017.01-06 2016.01-06
1. Reconciliation from the net profit to the cash flows from operating
activities
Net profit 98,741,333.86 71,063,138.75
Add: Provisions for assets impairment 10,239,188.82 11,009,110.70
Depreciation of fixed assets 21,725,886.39 20,111,817.57
Amortization of intangible assets 2,545,320.10 2,481,329.09
Amortization of long-term deferred expenses 620,080.25 773,999.86
Losses on disposal of fixed assets, intangible assets and other long-term
-143,329.77 -64,284.56
assets
Losses on scrapping of fixed assets 15,476.77 189,436.67
Losses on variation of fair value
Finance expenses 4,049,571.32 2,809,336.10
Investment losses -87,875,295.69 -75,949,019.25
Decrease in deferred tax assets -2,155,205.75 -1,451,002.74
Increase in deferred tax liabilities
Decrease in inventory -63,392,514.70 -15,688,451.44
Decrease in operating receivables 74,646,238.82 12,219,096.24
Increase in operating payables -213,836,998.32 -83,039,729.88
Others 6,242,706.00 4,266,684.00
Net cash flows from operating activities -148,577,541.90 -51,268,538.89
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 691,238,822.98 255,381,841.47
Less: Cash at the beginning of the period
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 -248,795,325.48 679,769,831.26
(2) Cash and cash equivalents
Items 2017.01-06 2016.01-06
1.Cash 442,443,497.50 691,238,822.98
Including: cash on hand 49,426.13 83,511.72
Bank deposits that can be used for payment whenever necessary 442,394,071.37 935,068,161.01
Other monetary capital that can be used for payment whenever
necessary
2.Cash equivalents
Including: Bonds mature within 3 months
3.Balance of cash and cash equivalents at the end of the current period 442,443,497.50 691,238,822.98
Including: Cash or cash equivalents which was restricted in use of the
Company and subsidiaries in the group
72
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
49. The assets with the ownership or use right restricted
Items 30-06-2017 Reasons
Monetary fund 26,606,200.89 Guarantee money
Notes Receivable 13,147,517.83 Pledge
Fixed assets 72,766,981.60 Mortgage Loan
Intangible assets 51,878,902.00 Mortgage Loan
Total 164,399,602.32
50. Foreign currency monetary items
Ending balance of Original Ending balance of RMB
Items Exchange rate
currency equivalent
Monetary fund 19,765,862.99
Included: USD 2,625,475.57 6.7744 17,786,021.70
JPY 30,719,929.00 0.060485 1,858,094.91
EUR 3,752.54 7.7496 29,080.68
GBP 10,512.99 8.8144 92,665.70
Accounts receivable 910,698.17
Included: GBP 103,319.36 8.8144 910,698.17
Accounts payable 320,837.81
Included: GBP 36,399.28 8.8144 320,837.81
VIII. Changes of consolidation scope
This year, there are 2 more entities were included in the scope of consolidation, Dalian
Bingshan Engineering & Trading Co., Ltd.and Chengdu Bingshan Refrigeration
Engineering Co., Ltd.
On February 15, 2017, the company’ board of directors decided to accept the transfer of 76% equity
stake of Dalian Bingshan Engineering and Trading Co., Ltd., the company’s former associated
company, after the acceptance of this transfer, Dalian Bingshan Engineering and Trading Co., Ltd\.
became a wholly-owned subsidiary of the company. As of June 30, 2017, the above equity
transaction has been completed. Therefore, the company held 100% equity stake of Dalian Bingshan
Engineering and Trading Co., Ltd. when establishing the consolidated statements of current period.
As Dalian Bingshan Engineering and Trading Co., Ltd. is also a subsidiary of the parent company
Dalian Bingshan Group Co., Ltd., the company has merged the subsidiary Dalian Bingshan
Engineering and Trading Co., Ltd. by the same control in current period, when establishing the
consolidated balance sheet, adjusted the beginning data of relevant projects of consolidated balance
sheet, and also adjusted the comparable data of the corresponding period when establishing the
income statements and cash flow statements.
The Board of Directors of the company’s subsidiary Dalian Bingshan Group Engineering Co., Ltd.
decided Dalian Bingshan Group Engineering Co., Ltd. and Chengdu New World Refrigeration
Equipment Engineering Co., Ltd. jointly invest and build a joint venture Chengdu Bingshan
Refrigeration Engineering Co., Ltd., Dalian Bingshan Group Engineering Co., Ltd. invested RMB
5.1 million in cash, holding 51% stake. As of June 30, 2017, Chengdu Bingshan Refrigeration
Engineering Co., Ltd. has officially started operating.
For the specific information of entity change in the consolidation scope, see the notes of VII. The
Change of Scope of Consolidation and VIII. The Equity in Other Entities.
IX. Equity in other entities
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
1. Equity in subsidiary
(1) The structure of the enterprise group
Shareholding
Main
Registered Business (%) Obtaining
Name of subsidiaries business
address nature Direc Indire method
address
t ct
Dalian Bingshan Group Engineering Co., Ltd. Dalian Dalian Installation 100 Establish
Dalian Bingshan Group Sales Co., Ltd. Dalian Dalian Trading 100 Establish
Dalian Bingshan Air-Conditioning Equipment
Dalian Dalian Manufacturing 70 Establish
Co., Ltd.
Dalian Bingshan Guardian Automation Co.,
Dalian Dalian Manufacturing 100 Establish
Ltd.
Dalian Bingshan Ryosetsu Quick Freezing
Dalian Dalian Manufacturing 100 Establish
Equipment Co., Ltd.
Wuhan New World Refrigeration Industrial
Wuhan Wuhan Manufacturing 100 Establish
Co., Ltd.
Bingshan Technical Service (Dalian ) Co., Ltd. Dalian Dalian Services 100 Establish
Dalian Xinminghua Electrical Technology
Dalian Dalian Electronic 100 Merger
Co., Ltd
Dalian Universe Thermal Technology Co., Ltd Dalian Dalian Manufacturing 55 Merger
Business
Dalian Bingshan Engineering & Trading Co., combination
Dalian Dalian Trading 100 under the
Ltd.
same control
Chengdu Bingshan Refrigeration Engineering
Chengdu Chengdu Installation 51 Establish
Co., Ltd.
Wuhan New World Refrigeration
Wuhan Wuhan Installation 100 Establish
Air-Conditioning Engineering l Co., Ltd.
Ningbo Bingshan Refrigeration Air Establish
Ningbo Ningbo Installation 51
Conditioner Engineering Co., Ltd
Dalian Bingshan Security Leisure Industrial
Dalian Dalian Installation 100 Merger
Engineering Co., Ltd
Shanghai Bingshan Technical Service Co., Ltd Shanghai Shanghai Services 51 Establish
①All the holding proportion in subsidiaries were the same with voting proportion；
②The company held over 50% voting proportion in subsidiaries；
③ The company could control these subsidiaries；
(2) The company do not have Important Non-wholly-owned Subsidiary
2. The transaction of the company with its owner’s equity share changed but still controlling
the subsidiary None
3. Equity in joint venture arrangement or associated enterprise
(1)The important of joint ventures or affiliated companies
Main Shareholding
Registered Business Accountin
Name of joint ventures or affiliated companies business Indir
address nature Direct g methods
address ect
Affiliated companies:
Equity
Jiangsu Jingxue Freezing Equipment Co., Ltd. Changzhou Changzhou Manufacturing 29.21
method
Dalian Fuji Bingshan Vending Machine Co., Equity
Dalian Dalian Manufacturing 49
Ltd. method
74
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Name of joint ventures or affiliated companies Main Registered Business Shareholding Accountin
business address nature g methods
Keinin-Grand Ocean Thermal Technology Equity
Dalian Dalian Manufacturing 20
(Dalian) Co., Ltd method
(2) The main financial information of affiliated companies
30-06-2017/2017.01-06
Items Dalian Fuji Bingshan Vending Panasonic Compressor (Dalian) Co.,
Machine Co., Ltd. Ltd
Current assets 284,226,106.45 1,528,671,190.72
Non-current assets 177,888,323.10 340,267,396.08
Total assets 462,114,429.55 1,868,938,586.80
Current liabilities 91,173,704.99 703,062,378.70
Non-current liabilities 7,454,542.66
Total liabilities 98,628,247.65 703,062,378.70
Minority interests
Equity to the parent company 363,486,181.90 1,165,876,208.10
Net assets calculated according to the
178,108,229.13 466,350,483.24
shareholding proportions
Goodwill
Others 226,689.30 -1,627,777.47
Adjusting events
\
—Unrealized profits of insider
tradings
—Employee’s welfare and bonus fund
in foreign invested company
Book value of equity investment of
affiliated companies
Fair value of equity investment with
178,334,918.43 464,722,705.77
public offer
Operating income 281,314,832.40 740,643,397.50
Net profit 35,811,680.85 50,867,695.06
Net profit of discontinuing operation
Other comprehensive income
Total comprehensive income 35,811,680.85 50,867,695.06
The current dividends received from
joint ventures
Continued：
31-12-2016/2016.01-06
Items Jiangsu JingXue Dalian Fuji Bingshan Keinin-Grand Ocean Panasonic
Insulation Vending Machine Co., Thermal Technology Compressor (Dalian)
Technology Co.,Ltd Ltd. (Dalian) Co., Ltd Co., Ltd
Current assets 544,766,000.08 280,972,490.97 324,274,111.23 1,368,463,901.88
Non-current assets 190,982,542.93 151,754,975.82 86,150,062.42 350,108,180.41
Total assets 735,748,543.01 432,727,466.79 410,424,173.65 1,718,572,082.29
Current liabilities 349,389,866.24 101,199,564.85 145,662,104.80 495,843,809.25
75
Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
31-12-2016/2016.01-06
Items Jiangsu JingXue Dalian Fuji Bingshan Keinin-Grand Ocean Panasonic
Insulation Vending Machine Co., Thermal Technology Compressor (Dalian)
Technology Co.,Ltd Ltd. (Dalian) Co., Ltd Co., Ltd
Non-current liabilities 3,963,050.80 3,853,400.89
Total liabilities 353,352,917.04 105,052,965.74 145,662,104.80 495,843,809.25
Minority interests 432,553.72
Equity to the parent company 381,963,072.25 327,674,501.05 264,762,068.85 1,222,728,273.04
Net assets calculated according to
111,579,052.67 160,560,505.51 52,952,413.79 489,091,309.22
the shareholding proportions
Goodwill 39,948,654.75
Others 226,689.30 -5,087,915.23
Adjusting events
—Unrealized profits of insider
tradings
—Employee’s welfare and bonus
fund in foreign invested company
Book value of equity investment of
151,527,707.42 160,787,194.81 52,952,413.79 484,003,393.99
affiliated companies
Fair value of equity investment with
177,659,054.68 285,818,272.42 396,083,571.29 835,196,599.56
public offer
Operating income 12,099,008.34 37,816,382.72 48,536,947.22 83,524,856.04
Net profit
Net profit of discontinuing
operation
Other comprehensive income
Total comprehensive income 12,099,008.34 37,816,382.72 48,536,947.22 83,524,856.04
The current dividends received
5,842,400.00 14,200,000.00
from joint ventures
(4) Summary financial information of insignificant affiliated companies
Items 30-06-2017/2017.01-06 31-12-2016/2016.01-06
Total book value of investment of
864,844,818.39 443,642,191.48
affiliated companies
The total of following items according to
-- --
the shareholding proportions
Net profit 53,747,796.11 -6,506,223.17
Other comprehensive income
Total comprehensive income 53,747,796.11 -6,506,223.17
(5) No significant restrictions of the ability of joint venture or associated enterprise transfer funds
to the company.
(6)No excess loss of joint venture or associated enterprise.
(7)No commitment related to joint venture or affiliated company needed disclose.
(8)No Contingent liabilities related to joint venture or affiliated company needed disclose.
X. The risk related financial instruments
The main financial instruments held by the group company are cash and cash in bank, accounts
receivable, accounts payable, available-for-sale financial asset and short term loan. The detailed
explanation is referred to this notes No.VI. The related risks of these financial instruments and the
risk management policy conducted to reduce these risks by the group company are introduced as
below. The Group management conducts to manage and monitor these risks exposure and control
these risks under certain risk level.
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Objectives and policies of each risk management
The objectives of risk management conducted by the group company are to reach the balance
between risk and profit return by reducing the negative influence to operating performance to the
minimum level as well as maximising the shareholders’ and other investors’ profits. Based on
these objectives, the basic risk management policy is to recognize and analyse all sorts of risk that
the group company faced with, to set up the proper risk tolerance bottom line conducting risk
management, as well as to monitor these risks in a timely and effective manner, and to ensure these
risks under the limit level.
(1) Market risk
1) Exchange rate risk
Most of the company’s business is located in China, and settled with RMB. But the company
defined exchange rate risk of assets, liabilities dominated in foreign currency and future transaction
dominated in foreign currency (mainly including USD,JPY,HKD and GBP). The financial
department of the company monitors the company’s foreign currency transaction and the scale of
foreign assets and liabilities, and decreases exchange rate risk. During the current year the company
didn’t agree any forward foreign exchange contract or currency swap contract .As at 30 June 2017,
the company’s assets and liabilities dominated in foreign currency are listed in RMB as
following：
30-06-2017
Items
USD JPY EUR GBP Total
Foreign currency
financial assets,
Monetary fund 17,786,021.70 1,858,094.91 29,080.68 92,665.70 19,765,862.99
accounts
910,698.17 910,698.17
receivable
Subtotal 17,786,021.70 1,858,094.91 29,080.68 1,003,363.87 20,676,561.16
Foreign currency
financial liability
Accounts payable 320,837.81 320,837.81
Subtotal 320,837.81 320,837.81
The sensitive analysis：
As at June 30, 2017, because the company’s foreign currency assets or liabilities were small, the
change of foreign exchange rate had little impact to the company’s net profit or shareholders' equity.
2) Interest rate risk
The interest risk of the Group incurred from bank loan, risk of a floating interest rate of
financial liabilities that lead to the company facing cash flow interest rate risk, financial liabilities
with a fixed interest rate lead to the company facing cash flow interest rate risk. The company
determined the proportion of fixed interest rate and floating interest rate according the current
market circumstance. The company and Dalian Bingshan Group Co.,Ltd borrowed long term loan
RMB 160,000,000.00 with fixed interest rate. The subsidiary of the company Wuhan New World
Refrigeration Industrial Co., Ltd. borrowed short term loan RMB 45,000,000.00 with fixed interest
rate. the subsidiaries of the Company Dalian Bingshan Engineering & Trading Co., Ltd has Short-term
loans 1.5 million USD, exchange RMB 10.3197 million, loan with fixed exchange rate and intrest
rate.
The financial department of the company continuously monitors the interest rates level, and the
management would make some adjustment to lower the interest rate risk according to the latest
market situation. Climbing interest rate will increase the cost of newly increased interest-bearing
liability and interest expense for unsettled interest-bearing liability at floating rate and have adverse
effect on the business performance.
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
The sensitive analysis：
As at June 30, 2017, base on the assumption of interest rate change of 50 BP, the company’s net
profit will increase or decrease RMB 1,193.1thousand Yuan
(2)Credit risk
The credit risk of the company comes from monetary fund, notes receivable, accounts receivable,
and other accounts receivable etc. The management made credit policies and monitored changes of
these credit exposure.
The company's working capital was in bank with higher credit rating, so there was no significant
credit risk, nor significant losses due to the default of other entity. Upper limit policy is adopted to
avoid any credit risk from financial institution.
The company made relevant policy to control credit risk exposure from receivable, other receivable
and notes receivable. The company assess the client’s credit background according to the client’s
financial performance, possibility of obtaining guarantee from the 3rd party, credit record and other
factors such as current market. The company will periodically monitor the credit situation of the
client and will take measures such as prompt letter, shorten credit period or cancel the credit to
ensure the overall credit risk within the controllable scope.
As at 30 June 2017, the top five customers of receivable accounts represent 17.21% of total
accounts receivable, and as at 31st December 2016 that was 19.15%.
Maximum risk exposure assumed by the company is the book value of each individual financial
assets (including derivative instruments) on the balance sheet. Except the financial guarantee stated
in the note XIII, there is no any other guarantee which can put the company into credit risk. The
maximum credit risk exposure coming from above financial guarantee has been disclosed in the
note IX on the balance sheet date.
2. Liquidity risk
Liquidity risk was referred to the risk of shortage of funds incurred when the enterprise perform the
obligation of settlement by cash or other financial assets.
The financial department of the company continued to monitors the short term or long term capital
needs to ensure maintain plenty of cash flow. And the same time they also monitor the condition of
bank loan agreements and obtain commitments from banks to provide plenty of fund.
As at June 30, 2017, the company’s financial assets and financial liabilities in line with non discount
cash flow of the contracts as following：
Closing balance
Items Within 1 year 1-2 years 2-5 years Over 5 years Total
Financial Assets
Cash and cash in bank 469,049,698.39 469,049,698.39
Notes receivable 134,782,598.58 134,782,598.58
Accounts receivable 903,229,293.38 903,229,293.38
Other Receivable 63,715,968.69 63,715,968.69
Available for sale financial
569,709,995.04 569,709,995.04
asset
Financial Liabilities
Short-term loan 215,319,700.00 215,319,700.00
Notes Payable 181,421,206.76 181,421,206.76
Accounts payable 881,939,767.63 881,939,767.63
Other payable 198,334,369.48 198,334,369.48
Employee’s payable 27,193,989.51 27,193,989.51
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Closing balance
Items Within 1 year 1-2 years 2-5 years Over 5 years Total
Long-term loan 160,000,000.00 160,000,000.00
Tax payable 16,608,505.28 16,608,505.28
Dividend payable 863,516.60 863,516.60
(Continued)
Opening balance
Items Within 1 year 1-2 years 2-5 years Over 5 years Total
Financial Assets
Cash and cash in bank 715,215,638.54 715,215,638.54
Notes receivable 126,408,249.59 126,408,249.59
Accounts receivable 807,109,959.54 807,109,959.54
Other Receivable 57,257,456.57 57,257,456.57
Available for sale financial
545,565,116.64 545,565,116.64
asset
Financial Liabilities
45,000,000.00 45,000,000.00
Short-term loan
194,562,734.79 194,562,734.79
Notes Payable
857,725,428.48 857,725,428.48
Accounts payable
115,320,734.80 115,320,734.80
Other payable
50,256,392.86 50,256,392.86
Employee’s payable
160,000,000.00 160,000,000.00
Long-term loan
18,405,089.48 18,405,089.48
Tax payable
863,516.60 863,516.60
Dividend payable
XI.Fair value
1.Items measured at fair value
As at 30 June,2017,some equity investments of available-for-sale financial assets were measured at
the fair value.
Fair value level can be classified according to the input value of the lowest level that is significant
to whole measurement of fair value:
First level: quote of same assets or liabilities in an active market (unadjusted).
Second level: directly (price) or indirectly (derive from price) use observable input value other than
market quote of assets or liabilities in the first level.
Third level: use any input value not based on observable market data in assets or liabilities
(unobservable input value).
2.Item measured at fair value at the end of current year
Fair value at the end of current year
Items
First level Second level Third level Total
Sub-total of available for sale
555,798,336.45 555,798,336.45
financial assets
Debt instrument investment
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Fair value at the end of current year
Items
First level Second level Third level Total
Equity instrument investment 555,798,336.45 555,798,336.45
Other investment
Total assets 555,798,336.45 555,798,336.45
3.Determined on the basis of continuous first level for fair value measurement according to the
closed price of stock market as at 30 June,2017.
4.The above fair value of the company did not changed in different levels.
5.Financial assets and financial liabilities not measured at fair value mainly include: Cash and
bank balances, notes receivable,accounts receivable, other receivables, short-term loans, notes
payable, accounts payable, other payables, long-term payables, etc.The difference between the book
value of financial assets and financial liabilities that are not measured at fair value and fair value is
small.
XII. Related Parties Relationships and Transactions
1. Information of the company’s parent company
Registered Nature of Registered The parent The parent
Name of enterprise company's company's
address business capital shareholding voting right
Dalian Bingshan
Dalian Manufacture 158,580,000.00 19.96% 19.96%
Group Co., Ltd.
(1) Information of the company’s parent company
Dalian Bingshan Group Co., Ltd. is a sino –foreign joint venture located No.106, Liaohe East Road,
Dalian Economic and Technological Development Zone The legal representive of Dalian Bingshan
Group Co., Ltd. is Ji Zhijian, and the registered capital is RMB158.58 million. The registered
business operation period is from 3rd July 1985 to 2nd July 2035. The business scope include
research, development, manufacture, sales, service and instalment of refrigeration equipment,
cooling and freezing equipement, different size of air-conditioners, petrochemical equipment,
electronic and electronic- control products, home electronic appliance, environment protect
equipment and etc. (unless the licenses needed)
(2) There is no ultimate controller of the Company.
2. The information of the subsidiaries please refers to IX.1 of this note.
3. The information of the affiliated company and joint venture please refers to IX.3 of this
note.
The companies had related party transaction with the company during the current period or had
transaction balance at the end of last period, including:
Names of the joint ventures or affiliated companies Relationships with the Company
Panasonic Refrigeration (Dalian) Co., Ltd Affiliated company of the Company
Panasonic Cold-chain (Dalian) Co., Ltd Affiliated company of the Company
Panasonic compressor (Dalian) Co., Ltd Affiliated company of the Company
Dalian Honjo Chemical Co., Ltd Affiliated company of the Company
Keinin-Grand Ocean Thermal Technology (Dalian) Co., Ltd Affiliated company of the Company
Dalian Bingshan Metal Technology Co., Ltd. Affiliated company of the Company
Dalian Bingshan Group Management Consulting Co., Ltd. Affiliated company of the Company
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Names of the joint ventures or affiliated companies Relationships with the Company
Beijing Huashang Bingshan Refrigeration and Air-conditioning Machinery Co., Ltd Affiliated company of the Company
Dalian Fuji Bingshan Vending Machine Co., Ltd Affiliated company of the Company
MHI Bingshan Refrigeration (Dalian) Co., Ltd. Affiliated company of the Company
Dalian Fuji Bingshan Vending Machine Sales Co., Ltd Affiliated company of the Company
Jiangsu JingXue Insulation Technology Co.,Ltd Affiliated company of the Company
Panasonic Cooling Machine system (Dalian) co., LTD Affiliated company of the Company
Affiliated company of the Company’s
Wuhan Lanning Science and Technology Co., Ltd.
wholly owned subsidiary
Affiliated company of the Company’s
Wuhan Skaff Technology Co., Ltd.
wholly owned subsidiary
4. Other type of the related parties
Names of the related parties Relationships with the Company
Dalian Bingshan Group Refrigeration Equipment Co., Ltd Affiliated company of Dalian Bingshan Group
Dalian Third Refrigeration Equipment Factory Subsidiary of Dalian Bingshan Group
Affiliated company of the Bingshan Group’s
Dalian Bingshan Group Hua Hui Da Financial Leasing Co., Ltd.
subsidiary
Affiliated company of the Bingshan Group’s
Dalian Bingshan Wisdom Park Co., Ltd.
subsidiary
Dalian Spindle Cooling Towers Co., Ltd Affiliated company of Dalian Bingshan Group
BAC Dalian Co., Ltd Affiliated company of Dalian Bingshan Group
5. The transactions between the Company and the related parties
(1) The transactions between the Company and the related parties, whose balance sheet has been
included in the consolidated statement and between the parties themselves have been offset.
(2) Purchases of goods from related parties
Details of
Names of the related parties 2017.01-06 2016.01-06
transaction
Panasonic Refrigeration (Dalian) Co., Ltd. Purchases of goods 20,283,928.38 16,360,358.86
Panasonic Cold-chain (Dalian) Co., Ltd. Purchases of goods 21,060,420.38 50,006,901.04
Panasonic Compressor (Dalian) Co., Ltd. Purchases of goods 1,772,307.69 492,916.24
Panasonic Cooling Machine system (Dalian) co., Ltd. Purchases of goods 33,681,412.84
Dalian Fuji Bingshan Vending Machine Co., Ltd Purchases of goods 252,850.67
Dalian Spindle Cooling Towers Co., Ltd Purchases of goods 1,830,673.50 2,395,299.17
BAC Dalian Co., Ltd Purchases of goods 14,369,238.45 14,214,924.03
Dalian Bingshan Metal Technology Co., Ltd. Purchases of goods 106,572.72 135,866.73
Beijing Huashang Bingshan Refrigeration and
Purchases of goods 735,876.07
Air-conditioning Machinery Co., Ltd
Dalian Bingshan Group Refrigeration Equipment Co., Ltd Purchases of goods 6,161,340.61 3,841,789.36
Jiangsu JingXue Insulation Technology Co.,Ltd Purchases of goods 13,055,394.04 4,760,451.36
Wuhan Lanning Science and Technology Co., Ltd. Purchases of goods 9,362,494.13
Dalian Third Refrigeration Equipment Factory Purchases of goods 2,702,324.21 2,110,864.07
Total 124,386,106.95 95,308,097.60
Sales of goods to related parties
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Details of
Names of the related parties transaction 2017.01-06 2016.01-06
Panasonic Refrigeration (Dalian) Co., Ltd. Sales of goods 49,668,501.13 21,582,100.94
Panasonic Cold-chain (Dalian) Co., Ltd. Sales of goods 70,986,986.56 69,912,571.09
Panasonic Compressor (Dalian) Co., Ltd. Sales of goods 3,320,214.18 2,213,385.76
Panasonic Cooling Machine system (Dalian) co., Ltd. Sales of goods 4,853,342.63
Dalian Fuji Bingshan Vending Machine Co., Ltd Sales of goods 11,115,873.41 17,124,023.00
Dalian Fuji Bingshan Vending Machine Sales Co., Ltd Sales of goods 504,871.11
MHI Bingshan Refrigeration (Dalian) Co.,Ltd Sales of goods 10,465,123.02 4,310,615.52
Dalian Spindle Cooling Towers Co., Ltd Sales of goods 149,135.10 1,767,403.68
Keinin-Grand Ocean Thermal Technology (Dalian) Co., Ltd Sales of goods 383,202.00 383,428.42
Dalian Bingshan Metal Technology Co., Ltd. Sales of goods 40,617.44
Beijing Huashang Bingshan Serial Refrigeration Equipment Co., Ltd Sales of goods 2,774,658.11 24,132,951.49
Dalian Bingshan Group Refrigeration Equipment Co., Ltd Sales of goods 100,974.44 333,368.74
Jiangsu JingXue Insulation Technology Co.,Ltd Sales of goods 315,847.39 214,510.03
Wuhan Lanning Science and Technology Co., Ltd. Sales of goods 6,243,108.55
Wuhan Skaff Technology Co., Ltd. Sales of goods 8,961.48
Dalian Bingshan Group Hua Hui Da Financial Leasing Co., Ltd. Sales of goods 86,622.40
Dalian Bingshan Wisdom Park Co., Ltd Sales of goods 1,560,340.63
Dalian Third Refrigeration Equipment Factory Sales of goods 870,526.88 1,271,146.60
Total 163,408,289.02 143,286,122.71
(3) Leasing fee from related party
Rental income of Rental income of
Lessee Leasing assets current period previous period
MHI Bingshan Refrigeration (Dalian) Co.,Ltd. Workshops 2,000,000.00 2,100,000.00
Dalian Bingshan Wisdom Park Co., Ltd Land Offices 1,466,666.67
Leasing fee to related party
Rental fees of Rental fees of
Leaser Leasing assets current period previous period
Dalian Bingshan Group Co., Ltd. Land
Total
The company signed rental contract with MHI Bingshan Refrigeration (Dalian) Co.,Ltd., and rent #
6 workshop building located on No. 106 Liaohe East Rd, Dalian Economic and Technology
Development Zone to MHI Bingshan Refrigeration (Dalian) Co., Ltd. The rental area is 15,259.04
square meters, and the rental term till 16th July, 2029. The annual rent fee is RMB 4.2 million after
considering the time value of money.
On June 22, 2017, the company has signed a land and house lease contract with Dalian Bingshan
Wisdom Park Co., Ltd to rent out the whole land and house of the company’s old plant locating at
No. 888, Southwest Road, Shahekou District, Dalian to Dalian Bingshan Wisdom Park Co., Ltd.,
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
with rental land area of 167,165.61 square meters and housing area of 105,652.43 square meters, the
lease term is from April 1, 2017 to December 31, 2036. The total rent for the previous three years is
RMB 20.34 million, of which the rent in 2017 is RMB 4.62 million, the rent in 2018 is RMB 7.86
million, and the rent in 2019 is RMB 7.86 million. From January 2020, the two parties will
negotiate and determine the rent of the next three years according to the local market changes.
The company signed an agreement with Dalian Bingshan Group Co., Ltd. to rent out the office with
1,200 square meters in the office building to Dalian Bingshan Group Co., Ltd., the lease term is
from April 1, 2017 to March 31, 2019, with annual rent of RMB 144,000.00.
The company leased the land of Dalian Bingshan Group Co., Ltd., the lease term is from January 1,
2015 to July 31, 2018, with annual rent of RMB 230,230.60.
(4) Guarantee with related companies.
The national development fund planned to support the company’s intelligent and green equipment
of cold chain and service industry base project, and provide the special fund to the controlling
shareholder of the company, Bingshan Group.
(5) The borrowing of funds from related party
Name of the related party Amount Starting date Ending date Explanation
Dalian Bingshan Group Co., Ltd. 160,000,000.00 2016.03.14 2026.03.13 Project fund investment
Total 160,000,000.00
(6)Related party asset transfer and debt restructuring
Not applicable.
6. Amounts due from/to related parties
(1) Accounts receivable
30-06-2017 31-12-2016
Names of the related parties
Provision for Provision for
Amount bad debts Amount bad debts
Panasonic Refrigeration (Dalian) Co., Ltd. 10,848,331.69 542,416.58 10,132,966.54 506,648.32
Panasonic Cold-chain (Dalian) Co., Ltd. 55,909,764.67 2,795,488.23 49,852,547.51 2,492,627.38
Panasonic Compressor (Dalian) Co., Ltd. 144,616.83 7,230.84 285,612.28 17,405.61
Panasonic Cooling Machine system (Dalian) co., Ltd. 2,993,933.72 149,696.69 988,213.08 49,410.65
Dalian Fuji Bingshan Vending Machine Co., Ltd. 2,922,990.04 146,149.50 1,520,221.58 76,011.08
Dalian Fuji Bingshan Vending Machine Sales Co.,
4,452.90 222.65
Ltd.
MHI Bingshan Refrigeration (Dalian) Co., Ltd. 10,125,773.32 506,288.67 215,889.22 10,794.46
Dalian Spindle Cooling Towers Co., Ltd. 174,488.10 8,724.41 46,659.20 2,332.96
Keinin-Grand Ocean Thermal Technology (Dalian)
6,117.31 305.87
Co., Ltd
Beijing Huashang Bingshan Refrigeration and
35,645,856.35 1,846,092.82 38,284,385.35 3,543,453.34
Air-conditioning Machinery Co., Ltd.
Dalian Bingshan Group Refrigeration Equipment Co.,
3,461.40 173.07
Ltd.
Wuhan Lanning Science and Technology Co., Ltd. 6,687,522.40 334,376.12 14,466,855.00 723,342.75
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Wuhan Skaff Technology Co., Ltd. 226,045.93 11,302.30 655,561.00 32,778.05
Dalian Third Refrigeration Equipment Factory 5,642.60 282.13 5,642.60 564.26
Dalian Bingshan Wisdom Park Co., Ltd 1,540,000.00 77,000.00
(2) Notes receivable
Names of the related parties 30-06-2017 31-12-2016
Panasonic Refrigeration (Dalian) Co., Ltd 736,345.42 200,000.00
Panasonic Cold Chain (Dalian) Co., Ltd 13,347,517.83 15,532,736.64
Panasonic Cooling Machine system (Dalian) co., Ltd. 523,844.81 1,778.45
MHI Bingshan Refrigeration (Dalian) Co., Ltd. 2,100,000.00 19,805,806.72
Dalian Honjo Chemical Co.,Ltd. 1,441,499.53
Jiangsu JingXue Insulation Technology Co.,Ltd 4,277,035.00
Wuhan Lanning Science and Technology Co., Ltd. 1,000,000.00
(3) Accounts paid in advance
Names of the related parties 30-06-2017 31-12-2016
Panasonic Refrigeration (Dalian) Co., Ltd 353,675.00
Panasonic Cold Chain (Dalian) Co., Ltd 782,000.00 90,000.00
Panasonic Compressor (Dalian) Co., Ltd 324.00
Panasonic Cooling Machine system (Dalian) co., Ltd. 337,800.00
Dalian Spindle Cooling Towers Co., Ltd. 26,800.00
BAC Dalian Co., Ltd. 70,500.00 318,220.00
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 330,000.00
Jiangsu JingXue Insulation Technology Co.,Ltd 5,469.00
(4) Other accounts receivable
30-06-2017 31-12-2016
Name of the related party Provision
Provision for bad
Amount Amount for bad
debts
debts
Beijing Huashang Bingshan Refrigeration
34,972.74 1,748.64
and Air-conditioning Machinery Co., Ltd.
Wuhan Lanning Science and Technology
18,311.21 915.56 3,814.37 190.72
Co., Ltd.
Wuhan Skaff Technology Co., Ltd. 341,439.18 17,071.96 320,000.00 16,000.00
(5) Accounts payable
Names of the related parties 30-06-2017 31-12-2016
Panasonic Refrigeration (Dalian) Co., Ltd. 15,380.00 50,667.31
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Panasonic Cold-chain (Dalian) Co., Ltd. 28,029,781.70 28,245,301.70
Panasonic Compressor (Dalian) Co., Ltd. 2,001,924.00 1,766,420.00
Panasonic Cooling Machine system (Dalian) co., Ltd. 26,171,116.81 3,680,482.86
Dalian Spindle Cooling Towers Co., Ltd. 5,420,760.00 5,339,188.00
BAC Dalian Co., Ltd. 39,896,539.00 29,658,022.00
Dalian Bingshan Metal Technology Co., Ltd. 795,855.70 798,283.30
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 5,877,440.52 9,520,335.93
Jiangsu JingXue Insulation Technology Co.,Ltd 13,410,090.17 8,505,375.05
Wuhan Lanning Science and Technology Co., Ltd. 4,228,397.20 15,300,000.00
Dalian Third Refrigeration Equipment Factory 1,751,349.60 2,022,156.94
(6) Notes payable
Names of the related parties 30-06-2017 31-12-2016
Panasonic Cold-chain (Dalian) Co., Ltd. 3,939,286.50
Panasonic Cooling Machine system (Dalian) co., Ltd. 2,575,319.76
BAC Dalian Co., Ltd. 16,269,991.00 30,121,670.00
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 2,970,086.00 1,312,540.00
Jiangsu JingXue Insulation Technology Co.,Ltd 361,932.00 4,903,405.00
Wuhan Skaff Technology Co., Ltd. 620,000.00
Dalian Third Refrigeration Equipment Factory 2,000,000.00 450,000.00
(7) Accounts received in advance
Names of the related parties 30-06-2017 31-12-2016
Panasonic Cold-chain (Dalian) Co., Ltd. 428,961.00
Panasonic Cooling Machine system (Dalian) co., Ltd. 171,000.00
MHI Bingshan Refrigeration (Dalian) Co., Ltd. 450,000.00
Keinin-Grand Ocean Thermal Technology (Dalian) Co., Ltd 125,268.27
Beijing Huashang Bingshan Refrigeration and Air-conditioning Machinery Co., Ltd. 2,992,689.61 459,609.61
(8) Other accounts payable
Names of the related parties 30-06-2017 31-12-2016
Dalian Bingshan Group Co., Ltd. 91,987,136.92 294,956.06
Panasonic Cold-chain (Dalian) Co., Ltd. 216,570.00
Panasonic Compressor (Dalian) Co., Ltd. 3,118.18 9,425.59
MHI Bingshan Refrigeration (Dalian) Co., Ltd. 270,000.00 270,000.00
Dalian Third Refrigeration Equipment Factory 1,000.00 1,000.00
XIII Share-based payment
1. Overall situation
Total equity instrument awarded by the Company in the Period 0
Total equity instrument exercised in the Period 6,090,000.00
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
Total equity instrument that out of operation in the Period 0
2015:5.56 Yuan per share，divide into
3 period, remaining contract period
Range of the outstanding exercise price for stock option at period-end
and remaining period of the contract are 36 months
2016:5.62 Yuan per share，divide into
3 period, remaining contract period
are12, 24 and 36 months.
Range of the outstanding exercise price for other equity instrument at
period-end and remaining period of the contract
1) The Situation of Granted Restricted Share in 2015
According to the 13th meeting of the 6th generation of board, the 1st interim shareholders’ meeting
and the rules of ‘Restricted Share Incentive Plan (draft)’, the Company granted 10,150,000 numbers
of restricted shares to 41 incentive targets by offering incentive targets ‘A’ original shares. The
granted price is 5.56yuan per share, and the total capital raised is 56,434,000.00Yuan. The
Company’s incentive targets include the directors, middle and senior management personnel and
other key personnel supposed to be incented who held office when the ‘Share Incentive Plan’ was
announced, but excluding the supervisors, the independent directors, foreign directors and foreign
management personnel. The 15th meeting of board of 6th generation held on 4th March 2015
approved the ‘The Report Regarding Granting Incentive Targets Restricted Shares’, which agrees to
grant 10,150,000 numbers of restricted shares to 41 incentive targets, and set 4th March 2015 as
share granted date.
2) The Situation of Granted Restricted Share in 2016
According to the 9th meeting of 7th generation of directors, the 3rd interim shareholders’ meeting and
the rules of ‘Restricted Share Incentive Plan (draft)’, the Company granted 12,884,000 numbers of
restricted shares to 118 incentive targets by offering incentive targets ‘A’ original shares. The
granted price is 5.62yuan per share, and the total capital raised is 72,480,080.00Yuan. The
Company’s incentive targets include the directors, middle and senior management personnel and
other key personnel supposed to be incented who held office when the ‘Share Incentive Plan’ was
announced, but excluding the supervisors, the independent directors, foreign directors and foreign
management personnel. The 9th meeting of board of 7th generation held on 20th September 2016
approved the ‘The Report Regarding Granting Incentive Targets Restricted Shares’, which agrees to
grant 12,884,000 numbers of restricted shares to 118 incentive targets, and set 20th September 2016
as share granted date.
3) Unlock restricted stock in 2017
On May 12, 2017, the company held the 14th meeting of the 7th Board of Directors which considered
and approved the Proposal on Unlocking of the Restricted Stock Incentive Plan of the Second
Unlocking Period in 2015. The incentive objects conforming to the unlocking conditions this time
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
were 41 people, the amount of restricted stock that could apply for unlocking and be listed was
6,090,000 shares, accounting for 0.995% of the total share capital of the company at the end of the
period.
2. Share-based payment settled by equity
In line with the fair value of the restricted shares at
Determination method for the fair value of equity
grant date (not determining the fair value change after
instrument at grant date
grant date)
Determination basis for the number of exercising equity
Determined by actual exercising numbers
instrument
Reason of major difference between the estimation in
N/A
the Period and last period
The aggregate amount of share-based payment that
30,660,394.00
reckoned into capital reserve with equity settlement
Total expenses recognized by share-based payment that
6,242,706.00
settle by equity in the Period
XIV Commitments and Contingency
1. No major commitments to be disclosed till June 30, 2017.
2. No other contingency needed disclosed till June 30, 2017.
XV Events after the Balance Sheet Date
1. Significant events had not adjusted
(1) Issue shares
Not applicable.
(2) Information about profit distribution
Not applicable.
(3) Sales Return
Not applicable.
(4) Except the subsequent event disclosed above, the Company has no other significant
subsequent event
2. Significant sales return after balance sheet day
Not applicable.
3. There was no other post balance sheet significant events except above mentioned.
XVI. Other important things needed disclosed.
1. There was no corrections of prior period accounting errors during the current period.
2. There was no debt restructuring during the current period.
3. There was no assets exchange during the current period.
4. The Company didn’t design employer pension plan.
5. There was no discontinuing operation during the current period.
6. Segments information
(1) Standards and accounting policies of reporting segment
The company determines operating segment according to its organization structure, management
rules, inside reporting system. The operating segment should satisfy following conditions:
① The operating segment could generate income and incure expenses from normal operating
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
activities；
②The management could evaluate its operating effect, and then decide resources assignment and its
operating performance；
③The segment’s information of financial position and results of operations and cash flow could be
obtained.
The company determines reporting segment based on operating segments. The reporting segment
should satisfy one of the following conditions:：
① The operating segment’s income should be over 10% of total income；
② The number of the operating segment’s profit(or loss) should be over 10% of the number of total
profit and the number of total losses.
The transfer prices between segments were decided according to the market prices. The expenses of
common assets used by segments and other common expenses should be divided among the
segments according to the income.
(2) Elements of determining reporting segment and types of reporting segments’ products and
services
The company determined three reporting segments according to the geographic area, including
Northeast China, Central China East China and overseas. The Northeast China segment included the
company’s head office and subsidiaries located in Dalian. The Central China segment included
subsidiary company Wuhan New World Refrigeration Industrial Co., Ltd. and Chengdu Bingshan
Refrigeration Engineering Co., Ltd.,The East China segment included subsidiary’s subsidiary
company Ningbo Bingshan Refrigeration Air Conditioner Engineering Co., Ltd and Shanghai
Bingshan Technology Service Co., Ltd,The overseas segment included subsidiary company Dalian
Bingshan Engineering & Trading Co., Ltd.。
(3) The financial information of reporting segments
30-06-2016/2016.01-06
Items Northeast
Central China East China Overseas Offset Total
China
1 Operating income 117,721.06 14,012.50 3,499.88 12,820.66 47,816.23 100,237.87
Including: Income from
78,781.55 8,813.21 3,325.80 9,317.31 100,237.87
external transaction
Income from internal
38,939.51 5,199.29 174.08 3,503.35 47,816.23
transaction
2 Selling expenses 109,420.12 14,849.86 3,531.51 12,227.87 49,605.47 90,423.89
Including: Investment income
from associates and joint 4,938.27 -70.17 4,868.10
ventures
Impairment on assets 747.64 145.29 -1.25 132.24 1,023.92
Depreciation and
1,909.30 553.60 7.85 18.38 2,489.13
amortization
3 Operating profits(loss) 8,824.97 -720.00 -26.51 622.59 -1,789.24 10,490.29
4 Income tax 451.35 -0.45 2.42 162.83 616.15
5 Net profit(loss) 8,373.63 -719.55 -28.96 459.77 -1,789.24 9,874.13
6 Total assets 494,641.34 56,003.00 2,441.84 56,003.00 71,795.20 537,293.98
7 Total liabilities 133,109.45 43,879.90 969.41 43,879.90 23,014.40 198,824.26
8 Other significant non cash
25,231.92 140.81 2.02 1.91 25,376.66
items
Capital expenditure 25,231.92 140.81 2.02 1.91 25,376.66
7. There was no significant event which would affect the decision of investor during the
current period.
XVII. Notes to the financial statements of the parent company
1. Accounts receivable
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
(1) Classified by accounts nature
30-06-2017
Categories Balance Provision for doubtful debt
Book value
Amount Proportion Amount Proportion
Major single amount and
bad debt provision
provided individually
Bad debt provided on 198,054,771.09 100.00% 51,893,367.79 26.20% 146,161,403.30
group basis
Minor single amount but
bad debt provision
provided individually
Total 198,054,771.09 100.00% 51,893,367.79 26.20% 146,161,403.30
Continued:
31-12-2016
Categories Balance Provision for doubtful debt
Book value
Amount Proportion Amount Proportion
Major single amount and bad debt provision
provided individually
Bad debt provided on group basis 178,100,272.41 100.00% 60,524,866.67 33.98% 117,575,405.74
Minor single amount but bad debt provision
provided individually
Total 178,100,272.41 100.00% 60,524,866.67 33.98% 117,575,405.74
Accounts receivable which bad debt provisions are provided on age basis in the group.
30-06-2017
Account ages
Amount Provision for bad debts Proportion rates
Within 1 year 88,771,127.60 3,303,428.29 5.00%
1 to 2 years 29,620,133.26 2,962,013.33 10.00%
2 to 3 years 34,813,010.15 10,443,903.04 30.00%
3 to 4 years 16,221,938.59 8,110,969.29 50.00%
4 to 5 years 7,777,538.27 6,222,030.62 80.00%
Over 5 years 20,851,023.22 20,851,023.22 100.00%
Total 198,054,771.09 51,893,367.79
(2) Provision for bad debts accrued, regain or switch back in the period
In the current period, RMB -4,674,954.01 provision for bad debts
(3) In the current period, RMB 3,956,544.87 was written off in current period.
(4) Accounts receivable top 5 on amount
Provision for bad
Companies Amount Proportion (%)
debts
Xi Yi Yuan Da Construction and Installation Engineerring
38,167,774.72 19.27 2,251,777.47
Co., Ltd.
Bei Dahuang Tai Hua Organic Food Co., Ltd. 9,844,000.00 4.97 2,953,200.00
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MHI Bingshan Refrigeration (Dalian) Co., Ltd. 9,453,367.30 4.77 472,668.37
Zhejiang Wan Kai New Material Co., Ltd 7,800,000.00 3.94 390,000.00
Dalian Jinyu New Energy Technology Development Co., Ltd 5,500,000.00 2.78 5,500,000.00
Total 70,765,142.02 35.73 11,567,645.84
2. Other accounts receivable
(1) Classified by account nature
30-06-2017
Items Balance Provision for doubtful debt
Book value
Amount Proportion(%) Amount Proportion
Major single amount and bad debt
provision provided individually
Bad debt provided on group basis 7,328,599.97 100.00% 1,313,813.73 17.93% 6,014,786.24
Minor single amount but bad debt
provision provided individually
Total 7,328,599.97 100.00% 1,313,813.73 17.93% 6,014,786.24
Continued：
31-12-2016
Items Balance Provision for doubtful debt
Book value
Amount Proportion(%) Amount Proportion(%)
Major single amount and bad debt
provision provided individually
Bad debt provided on group basis 5,595,672.42 100.00% 1,227,167.35 21.93% 4,368,505.07
Minor single amount but bad debt
provision provided individually
Total 5,595,672.42 100.00% 1,227,167.35 21.93% 4,368,505.07
Other accounts receivable which bad debt provisions are provided on age basis in the group
30-06-2017
Account ages
Amount Provision for bad debts Proportion rates
Within 1year 4,264,820.40 213,241.02 5.00%
1 to 2 years 1,372,430.48 137,243.05 10.00%
2 to 3 years 497,850.99 149,355.30 30.00%
3 to 4 years 659,047.48 329,523.74 50.00%
4 to 5 years 250,000.00 200,000.00 80.00%
Over 5 years 284,450.62 284,450.62 100.00%
Total 7,328,599.97 1,313,813.73
(2) Provision for bad debts accrued, regain or switch back in the period
In the current period, RMB 86,646.38 was accrued provision for bad debts, and no amount was
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Dalian Refrigeration Co., Ltd. 2017 Semiannual Report
switched back or regained.
(3) The nature of other accounts receivable
Items 30-06-2017 31-12-2016
Guarantee deposits 6,652,139.57 5,502,139.57
Petty cash 461,156.88 80,892.85
To or fro accounts 180,323.52
Prepayments over settlement periods
Others 34,980.00 12,640.00
Total 7,328,599.97 5,595,672.42
(5) Top 5 on amount of other accounts receivable
Ending
balance of
Companies Nature Amount Age Proportion(%)
provision for
bad debts
Less than 1
Dalian Delta HK China gas co., ltd Security deposit 2,730,000.00 year, 2 to 3 37.25 211,500.00
years
1 to 2 years,
Dalian Jinzhou New district Funding
2 to 3
agencies and institutions accounting Security deposit 1,586,623.95 21.65 215,838.59
years,3 to 4
center
years
Dalian Municipal Construction
engineering labor insurance Security deposit 500,000.00 3 to 4 years 6.82 250,000.00
management center
Dalian economic and technological
development zone funding agencies Security deposit 265,950.62 Over 5 years 3.63 265,950.62
and institutions accounting center
Shandong Noel food co., ltd Security deposit 200,000.00 4 to 5 years 2.73 160,000.00
Total 5,282,574.57 72.08 1,103,289.21
3. Long-term equity investments
30-06-2017 31-12-2016
Nature Provision
Provision for
Book balance for Book value Book balance Book value
impairment
impairment
Subsidiaries 488,938,001.94 488,938,001.94 432,788,001.94 432,788,001.94
Joint ventures& affiliated
1,496,315,705.03 1,496,315,705.03 1,280,624,499.15 1,280,624,499.15
companies
Total 1,985,253,706.97 1,985,253,706.97 1,713,412,501.09 1,713,412,501.09
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(1) Subsidiaries
Provision for
Decreased Provision for
Beginning Increased during impairment of
Names during current Ending balance
balance current period the current
period impairment
period
Dalian Bingshan Group Engineering Co., Ltd 93,749,675.77 93,749,675.77
Dalian Bingshan Group Sales Company 20,722,428.15 20,722,428.15
Dalian Bingshan Air-Conditioning Equipment Co., Ltd 36,506,570.00 36,506,570.00
Dalian Bingshan Guardian Automation Co., Ltd 6,872,117.80 6,872,117.80
Dalian Bingshan Ryosetsu Quick Freezing Equipment Co., Ltd 59,356,051.19 59,356,051.19
Dalian Universe Thermal Technology Co., Ltd 48,287,589.78 48,287,589.78
Wuhan New World Refrigeration Industrial Co., Ltd 84,674,910.81 84,674,910.81
Bingshan Technology Service (Dalian) Co., Ltd. 22,024,000.00 22,024,000.00
Dalian Xinminghua Electronics Co., Ltd. 43,766,243.72 43,766,243.72
Dalian Bingshan Engineering & Trading Co., Ltd. 16,828,414.72 56,150,000.00 72,978,414.72
Total 432,788,001.94 56,150,000.00 488,938,001.94
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(2) Joint ventures& affiliated companies
Increase/Decrease
Provision
Gains and losses Adjustment Chang Cash bonus or for Provision
Beginning
Names Decrease recognized of other es of profits impairment Ending balance for
balance Increased Others
d under the equity comprehens other announced to of the impairment
method ive income equity issue current
period
2. Affiliated companies
Panasonic Refrigeration
157,425,641.15 -5,926,187.84 1,600,000.00 149,899,453.31
(Dalian) Co., Ltd.
Panasonic Cold-chain
217,687,237.26 3,593,423.52 4,800,000.00 216,480,660.78
(Dalian) Co., Ltd
Panasonic Compressor
484,003,393.99 18,719,311.78 38,000,000.00 464,722,705.77
(Dalian) Co., Ltd
Dalian Honjo Chemical Co.,
9,642,351.34 437,965.38 1,441,499.53 8,638,817.19
Ltd
Keinin-Grand Ocean
Thermal Technology 52,952,413.79 7,216,616.73 60,169,030.52
(Dalian) Co., Ltd
Dalian Bingshan Metal
172,950,000.00 4,019,745.35 176,969,745.35
Technology Co., Ltd
Dalian Bingshan Group
Management Consulting 39,200,000.00 -390,808.03 38,809,191.97
Co., Ltd.
Beijing Huashang Bingshan
Refrigeration and
769,463.27 -241,707.36 527,755.91
Air-conditioning Machinery
Co., Ltd
Dalian Fuji Bingshan
160,787,194.81 17,547,723.62 178,334,918.43
Vending Machine Co., Ltd
MHI Bingshan Refrigeration
13,018,792.05 -1,201,596.65 11,817,195.40
(Dalian) Co.,Ltd.
Dalian Fuji Bingshan
Vending Machine Sales Co., 9,410,006.56 661,471.84 10,071,478.40
Ltd
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Increase/Decrease
Provision
Gains and losses Adjustment Chang Cash bonus or for Provision
Beginning
Names Decrease recognized of other es of profits impairment Ending balance for
balance Increased Others
d under the equity comprehens other announced to of the impairment
method ive income equity issue current
period
Jiangsu JingXue Insulation
151,527,707.42 3,878,101.09 155,405,808.51
Technology Co.,Ltd
Panasonic cold machine
23,400,297.51 1,068,645.98 24,468,943.49
system (dalian) Co., Ltd
Total 1,280,624,499.15 212,150,000.00 49,382,705.41 45,841,499.53 1,496,315,705.03
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4. Total operating income and operating cost
(1)Business income and cost
2017.01-06 2016.01-06
Items
Income Cost Income Cost
Key business 342,083,629.25 292,041,251.33 315,122,914.65 265,496,038.46
Other business 7,745,397.00 3,954,732.15 5,446,158.23 2,976,428.98
Total 349,829,026.25 295,995,983.48 320,569,072.88 268,472,467.44
5. Gain/ (loss) from investments
Category
Items 2017.01-06 2016.01-06
Long-term equity investment income accounted for by using the cost method 17,628,766.67
Long-term equity investment income accounted for by using the equity method 49,382,705.41 60,980,888.19
Gain on disposing long-term share equity investments -254,172.88
Gain on holding of financial assets available for sale 11,463,569.05 15,961,425.40
Gain on disposing of financial assets available for sale 27,467,019.93
Total 105,942,061.06 76,688,140.71
XVIII. Other supplementary Information
1. Non-recurring profits and losses
Non-recurring gains and losses items Amount Notes
1. Gain/loss from disposal of non-current assets 127,853.00
2.Tax return or exemption exceeding authority or without formal authorization documents 1,115.75
3.Governmental subsidy written into current gains and losses 5,521,986.23
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. Gain/loss from change of fair value of transactional asset and liabilities, and investment
gains from disposal of transactional financial assets and liabilities and sellable financial
assets, other than valid period value instruments related to the Company’s common 27,467,019.93
businesses.
8.Other net income and expense from non-operation 279,299.90
5,079,406.26
Effect on income tax
18,568.95
Attributable to minority shareholders’ equity (after tax)
Total 28,299,299.60
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Dalian Refrigeration Co., Ltd. 2016 Semiannual Report
2. Earnings per share
The weighted EPS
Items
average ROE Basic EPS Diluted EPS
Net profit attributable to the Company’s ordinary shareholders 2.95% 0.115 0.115
Net profit attributable to the Company’s ordinary shareholders
after deducting non-recurring gains and losses
2.10% 0.082 0.082
3. The differences between domestic and international accounting standards
There were no significant differences between domestic and international accounting standards among the
Company’s financial statements of the current period.
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Section 10 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.
3. Time for reference: from Monday to Friday 8:00 - 11:30 (am) 1:00 - 4:30 (pm)
Liaison persons: Mr. Song Wenbao,Miss Du Yu
Tel: 0086-411-87968130
Fax: 0086-411-87968125
Board of Directors of Dalian Refrigeration Co., Ltd.
August 26, 2017
97
