Stock Code: 000530; 200530 Short Form of the Stock: Daleng Gufen; Daleng B; No: 2019-017
Dalian Refrigeration Co., Ltd.
2018 Annual Report Summary
§1 Important Notes
This summary is extracted from the original of the annual report. For more information, the
investors are recommended to refer to the original.
Note to the “Non-standardized Opinion”
□Applicable √Inapplicable
The profit distribution proposal
√Applicable □Inapplicable
Transfer the capital reserve to increase capital stock
□Applicable √Inapplicable
The profit distribution proposal reviewed and adopted at this Board meeting of the Company is:
based on the total share capital of the Company of 843,212,507 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 revolves around hot and cold businesses, 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 cold and hot industrial chain and forged the
complete cold and hot industrial chain in China.
§3 Summary of Accounting Data and Financial Indexes
1
3.1 Main accounting data (Unit: RMB Yuan)
Did the Company retroactively adjust or restate the accounting data of previous years due to
change in the accounting policy and correction of accounting mistakes?
□Applicable √Inapplicable
Increase/decrease compared
2018 2017 2016
with previous year
Operating revenue 1,966,064,612.44 2,079,715,105.37 -5.46% 1,893,200,939.64
Net profit attributable to shareholders of listed
110,503,175.90 200,759,820.17 -44.96% 182,234,151.73
companies
Net profit belonging to the shareholders of
listed companies after the deduction of 45,862,588.97 165,044,724.44 -72.21% 148,598,436.25
non-recurring profit and loss
Net cash flow from operating activities -119,657,885.64 -207,225,851.22 42.26% -6,607,069.97
Basic earnings per share 0.13 0.23 -43.48% 0.22
Diluted earnings per share 0.13 0.23 -43.48% 0.22
Weighted average return on net asset yield 3.21% 5.97% Decrease 2.76 percentage points 5.98%
Increase/decrease compared
2018.12.31 2017.12.31 2016.12.31
with previous year
Total assets 5,568,279,452.26 5,619,621,500.67 -0.91% 5,095,986,440.32
Owner's equity attributable to shareholders of
3,377,633,617.02 3,416,531,064.91 -1.14% 3,301,087,748.86
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 515,183,744.97 513,894,791.82 482,267,734.29 454,718,341.36
Net profit attributable to shareholders of
25,593,358.53 33,424,183.75 14,417,569.50 37,068,064.12
listed companies
Net profit attributable to the shareholders
of listed companies after the deduction of 24,307,838.37 32,877,338.94 13,143,470.72 -24,466,059.06
non-recurring profit and loss
Net cash flow from operating activities -117,217,303.00 1,888,545.83 -29,149,291.90 24,820,163.40
2
§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
51,061 60,697
reporting period disclosure of the annual report
Shareholding of top ten shareholders
Number of Number of
Proporti shares with pledged
Name Nature Total number
on sale shares or
restriction shares frozen
Domestic non-state-owned
Dalian Bingshan Group Co., Ltd. 19.98% 170,916,934 0 0
legal person
Sanyo Electric Co., Ltd. Overseas legal person 8.59% 73,503,150 0 0
Lin Zhenming Foreign natural person 0.74% 6,369,740 0 0
Wu An Domestic natural person 0.53% 4,500,000 0 0
Sun Huiming Domestic natural person 0.51% 4,384,079 0 0
BOCI SECURITIES LIMITED Overseas legal person 0.41% 3,471,602 0 0
Domestic non-state-owned
Dalian industrial development investment Co., Ltd. 0.40% 3,406,725 0 0
legal person
Liu Zonghui Domestic natural person 0.39% 3,356,650 0 0
Xue Hong Domestic natural person 0.35% 2,980,000 0 0
Chen Naisheng Domestic natural person 0.27% 2,311,330 0 0
Dalian Bingshan Group Co., Ltd. had the association relationship with Sanyo
Notes to the associated relationship and uniform
Electric Co., Ltd. among the above shareholders. Sanyo Electric Co., Ltd. holds
actions of the above shareholders
26.6% of Dalian Bingshan Group Co., Ltd.'s equity.
3
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.
19.98%
Dalian Refrigeration Co., Ltd.
§5 Management discussion and analysis
5.1 Business review for 2018
In 2018, the Company adhered to the theme of “Committing to Innovation, Focusing on
Transformation, and Sharing”, insisted on developing industry-leading new products and
technologies that meet market demand, innovated and developed new markets, and cultivated
market segments, took the development and utilization of energy, especially the secondary energy,
as the continuous development point of transformation and upgrading strategy. By leveraging the
three creations platform, we made concerted efforts, assumed and shared together, and endeavored
to achieve the key business indicators. In 2018, the Company achieved operating income of
1,966,060 thousand Yuan, with a year-on-year decrease of 5.46%; achieved a total profit of
118,877 thousand Yuan, with a year-on-year decrease of 45.59%, mainly due to the intensification
of market competition during the reporting period and the shortage of customers' funds, based on
operational risk prevention, the Company voluntarily abandoned orders with poor contract quality;
after the Company relocated the new factory area, fixed expenses increased more, but the
Company's capacity has not yet been fully released; implementing the strategy of transformation
and upgrading, the project investment in the early stage is relatively large, and the effect needs to
be gradually reflected in the following years.
During the reporting period, the Company’s subsidiary, Wuhan New World Refrigeration
4
accelerated the strategic transformation, completed the development of new products such as
ultra-high temperature steam heat pump units and large-scale water vapor compressor units. The
natural gas pipeline network pressure energy generation and cold energy recovery system, mine
return air waste heat direct utilization system and other landmark new products realized
commercial use in multiple projects in many places. It has won the AAA credit enterprise of
enterprise credit assessment in China's refrigeration and air-conditioning industry.
During the reporting period, the Company’s subsidiary Bingshan Engineering Company continued
to deepen the hot and cold market segment by virtue of its high value-added deep enthalpy energy
solutions. The company achieved new breakthroughs in the ice and snow industry and won the bid
for the toboggan run simulation test section project in the Olympic Winter Games, which laid the
foundation for the official toboggan project of the Olympic Winter Games; won the bid for the Ice
and Snow Park project of Shenzhen Kaisa Jinshawan International Park; successfully completed
the construction of Guangzhou Wanda Mall Indoor Ski Resort project; and was awarded the Grade
A Qualification for the general contracting of electromechanical engineering.
During the reporting period, Bingshan Technology Service, the Company’s subsidiary, quickly
expanded its producer services. The machine room hosting and transportation new service was
actively promoted and has covered more than 30 high-quality customers. The 4S service model of
ammonia-related refrigeration enterprises began to be promoted to cities in the province except
Dalian. Bingshan sharing service platform was built orderly, and began to provide services for
Bingshan-funded enterprises such as Fuji Bingshan, Spindle, and so on. The refrigeration and
air-conditioning equipment maintenance and transportation service was selected into the 2018
national-level service industry standardization pilot project.
During the reporting period, Panasonic Compressor, the Company’s associated company, actively
promoted the transformation and focused on developing high-margin customers and markets. The
sales volume of horizontal scroll compressors for electric buses has recovered significantly. The
horizontal scroll compressor for rail transit air conditioning has achieved good results in the
expansion in subway, light rail and other fields, and successfully entered the German metro. The
horizontal DC inverter fully enclosed electric scroll compressor was selected into the “2018
Energy Conservation and Environmental Protection Product Catalogue of Chinese Association of
Refrigeration”.
During the reporting period, Panasonic Cold Chain, an associated company of the Company,
conformed to the new trend of consumption and further expanded and subdivided the blue ocean
market. It created the all-fields cold chain solution for different retail formats by virtue of the big
data and the technological advantages of artificial intelligence field. It made effective cooperation
with key customers such as Hema Fresh, Jingdong, Lawson, Ito Yokado, Luckin Coffee, and so on.
And it was awarded the First Batch of Green Factories in Liaoning Province.
During the reporting period, the Company's associated company, Panasonic Appliances
Refrigeration System effectively improved its core competitiveness, successfully realized the
commercial use of CO2 transcritical piston refrigeration compressor unit in the domestic
5
supermarket retail field. It also won the bid for Jingdong Beijing Daxing Pharmaceutical Storage
Project and Wuhan Cold Storage Project, and the total contract amount is over 60 million yuan.
The application-oriented container products can achieve full temperature control to meet the high
quality requirements of new retail food.
During the reporting period, the Company’s associated company, Fuji Bingshan, further promoted
the development of product intelligence, modularization, and diversification, and newly added
platform machine product line based on the six product lines of beverage machine, food machine,
liquor machine, dairy machine, coffee machine, and lunch box machine so as to rapidly respond to
the custom-made products and effectively respond to the demand of new retail platform. It
introduced the R1234yf new refrigerant production line, leading the industry’s safety and green
environmental development trend.
During the reporting period, the Company actively promoted the cultivation and incubation of new
businesses while the original business was undergoing transformation and upgrading. Kelvin, an
indirect joint venture company, focused on the unmanned retail field, its self-developed “Billions
self-service retail platform” and “DingDangKuaiXiu platform” were fully launched, and the new
retail model was rapidly promoted. The Company’s indirect joint venture, Bingshan Huahuida,
effectively expanded the financial leasing business around high-quality customers in Bingshan
cold and hot business, not only boosted the sales and payment collection of the various funded
enterprises of Bingshan, but also achieved good business performance. Bingshan Wisdom Park
Company, the Company’s indirect joint venture company, cooperated in the comprehensive
utilization of the old factory area, gathered and searched new kinetic energy for Bingshan, and
currently has more than 50 contracted customers. The Company's indirect joint venture company,
Fuji Bingshan Control Systems deeply explored the energy-saving potential, provided customers
with integrated energy management and control solutions to help the smart energy management of
Bingshan.
5.2 Major change or adjustment in the Company's main business in the reporting period
□Applicable √Inapplicable
5.3 Main business structure
□Applicable √Inapplicable
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
“The Notice of amendment to the standard enterprise’s financial statements format”
(Caikuai[2018]No.15 File announced by the Ministry of Finance on 15th June, 2018(hereinafter
6
referred to as Caikuai No. 15 File). Due to the No.15 File, some of asset items and liability items
have been merged and some of income statements items have been separated, and “interpretation
of financial statement format for the company in 2018” was announced on 7th September, 2018.
Handling charge of personal income tax shall be clearly presented under “other income”, the
actual subsidy received from government shall be presented under operating cash flow column
when preparing the cash flow statement regardless of asset related or income related.
The Company has prepared the financial statements in accordance with new statements format and
retrospectively made adjustment to the changes mentioned and respectively adjusted the
comparing figures in accordance with financial statements presentation, No. 30, accounting
standards applicable in China.
6.2 Correction of major accounting mistakes in the reporting period, which should be retroactively
restated
□Applicable √Inapplicable
6.3 Explanation on change of consolidation scope in the report period compared with the latest
annual report
√Applicable □Inapplicable
Compared with the previous year, the main body included in the consolidated financial statements
in this year increased the share of Wuhan Lanning Energy Technology Co., Ltd. due to the share
purchase by subsidiary, and reduced the share of Shanghai Bingshan Technology Services Co., Ltd.
due to the share sale by subsidiary.
6.4 Explanation of the Board of Directors to the “Non-standardized Opinion”
□Applicable √Inapplicable
Board of Directors of Dalian Refrigeration Co., Ltd.
April 20, 2019
7
