Stock Code: 000530; 200530 Short Form of the Stock: Daleng Gufen; Daleng B; No: 2018-012
Dalian Refrigeration Co., Ltd.
2017Annual Report Summary
§1 Important Notes
This summary is extracted from the original of the annual report. For more information, the
investors are recommended to refer to the original.
Note to the “Non-standardized Opinion”
□Applicable √Inapplicable
The profit distribution proposal
√Applicable □Inapplicable
Transfer the capital reserve to increase capital stock
□Applicable √Inapplicable
The profit distribution proposal reviewed and adopted at this Board meeting of the Company is:
based on the total share capital of the Company of 855,908,981 shares, pay to all shareholders the
cash dividend of 0.5 yuan (inclusive the tax) for every 10 shares .The Company will not transfer
the capital reserve to increase capital stock.
Company Profile
Short form of the stock DALENG GUFEN; DALENG-B
Stock code 000530; 200530
Listed stock exchange Shenzhen Stock Exchange
Contact
Secretary of the Board of Directors Authorized representative in charge of securities affairs
persons
Name Song Wenbao Du Yu
DALENG GUFEN Securities﹠
DALENG GUFEN Securities﹠Legal AffairsNo.106,
Legal Affairs No.106, Liaohe East
Contact address Liaohe East Road, Dalian Economic and Technological
Road, Dalian Economic and
Development Zone
Technological Development Zone
Telephone 0411-87968130 0411-87968822
Fax 0411-87968125 0411-87968125
E-mail 000530@bingshan.com 000530@bingshan.com
§2 The Company’s Main business during the reporting period
The Company, as the largest industrial refrigeration equipment production enterprise in China, is
committed to developing Industrial refrigeration and heating business field, commercial
refrigeration and refrigeration business field, air-conditioning and environment business field, core
parts business field, engineering and service business field have covered the key areas of the
refrigeration industrial chain and forged the most complete cold and hot industrial chain in China.
§3 Summary of Accounting Data and Financial Indexes
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3.1 Main accounting data (Unit: RMB Yuan)
Did the Company retroactively adjust or restate the accounting data of previous years due to
change in the accounting policy and correction of accounting mistakes?
√Applicable □Inapplicable
Increase/decrease
2016 compared with 2015
2017 previous year
Before After
After adjustment After adjustment Before adjustment
adjustment adjustment
Operating revenue 2,079,715,105.37 1,779,499,226.64 1,893,200,939.64 9.85% 1,607,518,439.61 1,721,064,308.11
Net profit attributable to shareholders of
200,759,820.17 178,632,660.24 182,234,151.73 10.17% 129,947,307.39 134,174,674.88
listed companies
Net profit belonging to the shareholders of
listed companies after the deduction of 165,044,724.44 145,227,418.21 148,598,436.25 11.07% 126,122,809.25 129,659,412.87
non-recurring profit and loss
Net cash flow from operating activities -207,225,851.22 -7,706,320.22 -6,607,069.97 -3,036.00% -50,568,474.38 -39,799,347.27
Basic earning per share 0.23 0.31 0.22 4.55% 0.36 0.17
Diluted earnings per share 0.23 0.31 0.22 4.55% 0.36 0.17
Decrease 0.01
Weighted average return on net asset yield 5.97% 5.87% 5.98% 6.38% 6.58%
percentage points
Increase/decrease
2016.12.31 compared with 2015.12.31
2017.12.31 previous year
Before Before
After adjustment After adjustment After adjustment
adjustment adjustment
Total assets 5,619,621,500.67 4,983,511,574.26 5,095,986,440.32 10.28% 4,082,499,864.42 4,146,479,416.99
Owner's equity attributable to shareholders
3,416,531,064.91 3,247,797,768.92 3,301,087,748.86 3.50% 2,647,609,091.41 2,697,297,579.86
of listed companies
3.2 The quarter main financial indicators (Unit: RMB Yuan)
The first quarter The second quarter The third quarter The fourth quarter
Operating revenue 504,654,807.75 497,723,909.75 461,323,140.51 616,013,247.36
Net profit attributable to shareholders of
34,979,790.84 63,280,372.25 47,073,348.70 55,426,308.38
listed companies
Net profit attributable to the shareholders
of listed companies after the deduction of 34,254,953.33 35,705,910.16 47,499,687.40 47,584,173.55
non-recurring profit and loss
Net cash flow from operating activities -157,927,050.15 9,349,508.25 -55,016,219.36 -3,632,089.96
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§4 Share Capital and Shareholders' Information
4.1 Statement of shares held by the top ten shareholders
Total number of shareholders in the Total number of shareholders as of the last month before
44,696 51,354
reporting period disclosure of the annual report
Shareholding of top ten shareholders
Number of Number of
shares with pledged
Name Nature Proportion Total number
sale shares or
restriction shares frozen
Domestic non-state-owned
Dalian Bingshan Group Co., Ltd. 19.96% 170,916,934 0 0
legal person
Sanyo Electric Co., Ltd. Overseas legal person 8.58% 73,503,150 0 0
Domestic non-state-owned
Huatai securities Co. LTD. 1.32% 11,346,659 0 0
legal person
National Social Security Funds 104 Portfolio Others 1.17% 10,000,000 0 0
National Social Security Funds 503 Portfolio Others 0.96% 8,210,314 0 0
Tian an property insurance co., LTD. - win No 1. Others 0.85% 7,247,571 0 0
Lin Zhenming Foreign natural person 0.73% 6,280,000 0 0
JOHCM INTERNATIONAL
Overseas legal person 0.63% 5,396,942 0 0
SMALL CAP EQUITY FUND
Industrial Securities Golden Kylin No. 2 Colle
Others 0.60% 5,101,286 0 0
ctive Asset Management Plan
Wu An Domestic natural person 0.56% 4,760,000 0 0
Dalian Bingshan Group Co., Ltd. had the association relationship with Sanyo Electric
Notes to the associated relationship and uniform
Co., Ltd. among the above shareholders. Sanyo Electric Co., Ltd. holds 26.6% of
actions of the above shareholders
Dalian Bingshan Group Co., Ltd.'s equity.
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4.2 Particulars about controlling shareholders and actual controller of the Company
Commission of Dalian Municipality Government
State-owned Assets Supervision and Administration
Dalian State-owned Assets Management Co., Ltd.
Dalian Equipment Manufacture Investment
Dalan Zhonghuida Refrigeration
Sanyo Electric Co., Ltd.
Yida Group Co., Ltd.
Dayang Co., Ltd.
Technology Co., Ltd.
Co., Ltd.
100% 100%
22.2% 4.4% 13.3% 13.3% 20.2% 26.6%
Dalian Bingshan Group Co., Ltd.
19.96%
Dalian Refrigeration Co., Ltd.
§5 Management discussion and analysis
5.1 Business review for 2017
In 2017, by adherence to the theme of "activation, integration and upgrading", the Company
managed to accomplish the major operating indicators through maintaining strategic commitment,
activating endogenous driving force, integrating system resources, gathering competitive forces
and improving operating quality. In 2017, the Company recorded operating income of RMB
2,079,720 million yuan with a year-on-year increase of 9.85%, and recorded total profit of RMB
21,847 million yuan with a year-on-year increase of 12.90%.
During the reporting period, the overall relocation and transformation of the Company was
successfully completed, and the intelligent, environmental, efficient and safe new factory was put
into use. It has been identified by the Ministry of Industry and Information Technology as one of
the first batch of service-based manufacturing model enterprises, the national technological
innovation demonstration enterprise, and it has been awarded with the gold medal of quality by
the governor of Liaoning Province in 2017.
During the reporting period, Wuxin Refrigeration, one of our subsidiaries, achieved significant
progress in the strategic transformation from traditional refrigeration and air conditioner to energy
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saving, emission reduction, comprehensive energy utilization as well as process gas compressor.
The company has almost completed layout of the new products demonstration outlets across the
whole nation and recorded a year-on-year increase of over 50% in sales revenue from the new
products. Through technical marketing and government marketing, our symbolic new products,
such as natural gas pipe network pressure power generation and cold energy recovery system,
have become available for commercial use for multiple projects in various regions.
During the reporting period, the Company's subsidiary Bingshan Engineering Company continued
to deepen the market segmentation, and achieved satisfying growth in ordering in various fields in
which the company enjoyed advantages, such as cold chain logistics and fishing. In particular, the
company succeeded to execute over 20 contracts with subject transaction under any of them
amounting to RMB 10 million or above. New achievements have been made by the company in
the segment of marine engineering since it has successfully entered into the market of high-end
ultra-low temperature ocean carriage ships when it realized successful shipping of refrigeration
station. The amount of orders placed was nearly RMB 100 million, up by 50% over the same
period. Great progress has been made in the development of new energy industry, and distributed
energy projects have come to the ground successively. The segment of ice and snow experienced a
new breakthrough as it won the bid in the high-end indoor snow field project developed by
Guangzhou Wanda Mall, for which, the total contract value amounted to approximately RMB 40
million.
During the reporting period, the Company's subsidiary Bingshan Service Company has flexibly
applied Bingshan Internet of things Cloud Platform, the all-in-one button repair mobile APP as
firstly developed in the industry and large refrigeration system hosting service model, enabling the
company to record a year-on-year increase of over 50% in repair and maintenance income.
During the reporting period, the Company's subsidiary Bingshan Ryosetsu experienced rapid
growth in its quick freezing business, recording revenue of over RMB 50 million from quick
freezing equipment with an increase of more than 50% as compared to the corresponding period
of last year. It has successfully entered the crayfish processing industry which is prospering,
enabling it to further strengthen the future development potential.
During the reporting period, the horizontal scroll compressors applicable for rail transit air
conditioning systems newly developed by Panasonic Compressor, an associated company of the
Company has made obvious progress in market expansion in metro, light rail and other fields. The
"coal to electricity" heat pump compressor for commercial use in north areas has been
successfully developed and put into use in batches, which has occupied the market opportunities.
Overseas market expansion has achieved new results. In particular, the European market
contributed income of RMB 100 million, and the South Korean market also achieved significant
increase in income contribution. Impacted by the state's rectification in electric bus market and the
reduction of subsidy, the sales volume of the horizontal scroll compressor applicable for electric
bus has shrunk in stages, and the net profit has dropped considerably as compared to the
corresponding period of previous year.
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During the reporting period, Panasonic Cold Chain, an associated company of the Company,
conformed to the new trend of consumption and actively expanded the subdivision of the blue sea
market. With respect to convenience store business, based on the Internet of things technology and
by applying the energy management and store intelligent system to boost the intelligent upgrading
of the cold chain equipment applicable for convenience store, the revenue increased by about 30%
over the same period. With respect to commercial kitchen business, revenue from Hong Kong
market increased by about 40% year on year. With respect to biomedical business, application of
medical cryogenic refrigerators, blood refrigerators, thermostat incubators and other new products
have achieved breakthroughs in hospitals, blood stations, scientific research and other fields, with
revenue increased by over 50% over the corresponding period of previous year.
During the reporting period, Fuji Bingshan, an associated company of the Company, vigorously
promoted product development oriented for intelligence, modular and diversification, and formed
six major product series, including beverage machine, food machine, liquor machine, dairy
machine, coffee machine and box lunch machine, so as to make rapid response to customers’
demands. The world's leading intelligent manufacturing plant newly established for manufacturing
automatic vending machines has been put into operation and realized double increase of
production capacity, which enables the company to better capture business opportunities in new
retail market.
During the reporting period, based on the overall positioning of the cold and heat industry
investment platform, the Company further intensified capital operation. The acquisition of the first
batch of high-quality assets from the controlling shareholder has been completed by the end of
April 2017. The Company currently holds the entire equity interest of Bingshan International
Trade, and 49% equity interest of Bingshan Metal Technology. The non-public issuance of
exchangeable corporate bonds has been launched to seek low-cost bond financing and reduction of
holding in high price stock.
During the reporting period, the Company actively promoted incubation of new undertakings
while focusing on transformation and upgrading of the original causes. Through the investment
platform company, the Company and Tokyo Century Corporation jointly invested in establishment
of Dalian Bingshan Group Hua Huida Financial Leasing Co. Ltd to carry out cold and heat
industry-chain-based financing. It is surprising that the company recorded profit for the first year
in which it was established. Besides, the Company and a subsidiary of Zhejiang Southern
Architecture Design Co., Ltd made joint investment in establishing Dalian Bingshan Wisdom Park
Co., Ltd to take charge of the comprehensive utilization of the land parcel of the original plant
after relocation and manage to build an industry ecosystem within Bingshan Group. At the current
stage, the investment attraction is going well with significant progress and the alteration is
processed in an orderly manner. Besides, the Company and a subsidiary of K2DATA Technology
(Beijing) Co., Ltd made joint investment in establishing Dalian Kelvins Technology Co., Ltd to
actively promote innovation of big data application by Bingshan in its cold and heat industries,
construction of the Internet of things and further development of intelligent manufacturing, so as
to assist Bingshan to realize smart growth in its core business segments.
5.2 Major change or adjustment in the Company's main business in the reporting period
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□Applicable √Inapplicable
5.3 Main business structure
√Applicable □ Inapplicable
Increase/decrea Increase/decreas
Gross se of operating e of operating Increase/decrease of
Product name Operating revenue Operating profit revenues on a profit on a gross profit on a
profit year-on-year year-on-year year-on-year basis
basis basis
Refrigeration and Increase 1.60
2,043,986,956.70 1,625,595,014.87 20.47% 9.13% 6.52%
air-conditioning equipment percentage points
5.4 Is there a need to pay particular attention to the operation of seasonal or cyclical features?
□Applicable √Inapplicable
5.5 Major change in the Company's business revenue, business cost, or net profit attributable to
shareholders of listed companies in the reporting period
□Applicable √Inapplicable
5.6 Face suspension of listing and termination of the listing
□Applicable √Inapplicable
§6 Matters related to financial report
6.1 Change in accounting policies, accounting estimates and accounting methods compared with
the financial statements of the previous year
√Applicable □Inapplicable
In 2017, the Ministry of Finance announced or amended and implemented “Accounting Standards
for Business Enterprises No.42-Held for Sale non-current assets, disposal group and discontinued
operation". Since May 28th, 2017, any held for sale non-current assets, disposal group and
discontinued operation existing on the implementation date shall be applied to prospective
application. When preparing the financial statements for 2017FY, the policy has been adopted and
the accounting has been done in accordance with this standard.
Updated standard shall be applied since June 12th,2017. Any government existing on January
1at,2017 shall be applied to prospective application. Any new government grant obtained between
January 1at,2017 and implementation date shall be adjusted in line with this standard too. When
preparing the financial statements for 2017FY, the policy has been adopted and the accounting has
been done in accordance with this standard.
In 2017, the Ministry of Finance announced or amended and implemented “Financial Statements
Format ”(Caikuai[2017]No.30)
Gain/loss on non-current assets disposal and on non-monetary assets exchange presented under
“non-operating income/expense”is changed to “Gain on asset disposal”. This accounting policy
change shall be retrospectively adjusted. Non-operating income in 2016shall be decreased by
1,186,397.77Yuan, and expense shall be decreased by 22,751,748.20Yuan respectively. Gain on
asset disposal shall be adjusted by -21,565,350.43Yuan. No effect on sum of asset and net profit.
6.2 Correction of major accounting mistakes in the reporting period, which should be retroactively
restated
□Applicable √Inapplicable
6.3 Explanation on change of consolidation scope in the report period compared with the latest
annual report
7
√Applicable □Inapplicable
The range of consolidated statements of the Company changed in the reporting period, and two
companies were added, including Dalian Bingshan Engineering &Trading Co., Ltd., and Chengdu
Bingshan Refrigeration Engineering Co., Ltd.
6.4 Explanation of the Board of Directors to the “Non-standardized Opinion”
□Applicable √Inapplicable
Board of Directors of Dalian Refrigeration Co., Ltd.
April 21, 2018
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