Stock Code: 000530; 200530 Short Form of the Stock: Bingshan; Bingshan B; No: 2021-009
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
2020 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 0.1 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 Bingshan; Bingshan 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
Securities﹠Legal Affairs No.106,
Liaohe East Road, Dalian Securities﹠Legal AffairsNo.106, Liaohe East Road,
Contact address
Economic and Technological Dalian Economic and Technological Development Zone
Development Zone
Telephone 0411-87968130 0411-87968822
Fax 0411-87968125 0411-87968125
E-mail 000530@bingshan.com 000530@bingshan.com
§2 The Company’s Main business during the reporting period
The Company 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.
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§3 Summary of Accounting Data and Financial Indexes
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
2020 2019 2018
with previous year
Operating revenue 1,727,267,935.15 1,831,851,280.70 -5.71% 1,966,064,612.44
Net profit attributable to shareholders of listed companies 21,341,133.39 89,112,113.43 -76.05% 110,503,175.90
Net profit belonging to the shareholders of listed
companies after the deduction of non-recurring profit and 6,128,351.99 21,406,535.65 -71.37% 45,862,588.97
loss
Net cash flow from operating activities -13,142,427.45 12,695,071.81 -203.52% -119,657,885.64
Basic earnings per share 0.025 0.106 -76.42% 0.13
Diluted earnings per share 0.025 0.106 -76.42% 0.13
Weighted average return on net asset yield 0.64% 2.63% Decrease 1.99 percentage points 3.21%
Increase/decrease compared
2020.12.31 2019.12.31 2018.12.31
with previous year
Total assets 5,681,568,328.36 5,525,503,256.26 2.82% 5,568,279,452.26
Owner's equity attributable to shareholders of listed
3,375,609,788.07 3,379,565,029.89 -0.12% 3,377,633,617.02
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 463,218,112.74 410,185,301.72 462,998,187.84 390,866,332.85
Net profit attributable to shareholders of listed companies -58,673,476.79 35,069,131.27 27,947,259.43 16,998,219.48
Net profit belonging to the shareholders of listed companies
-29,177,871.92 20,920,876.93 10,312,723.62 4,072,623.36
after the deduction of non-recurring profit and loss
Net cash flow from operating activities -81,344,046.60 2,993,357.85 -18,397,809.85 83,606,071.15
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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
54,931 45,887
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. 20.27% 170,916,934 0 0
legal person
Sanyo Electric Co., Ltd. Overseas legal person 8.72% 73,503,150 0 0
Lin Zhenming Foreign natural person 0.80% 6,740,000
Zhang Sufen Domestic natural person 0.60% 5,100,000
Wu An Domestic natural person 0.53% 4,500,000
Sun Huiming Domestic natural person 0.52% 4,384,079
Xue Hong Domestic natural person 0.42% 3,550,000
Domestic non-state-owned
Dalian industrial development investment Co., Ltd. 0.40% 3,406,725
legal person
Kong Guiyan Domestic natural person 0.37% 3,108,054
Li Xiaohua Domestic natural person 0.36% 3,062,908
Dalian Bingshan Group Co., Ltd. had the association
Notes to the associated relationship and uniform actions of the above relationship with Sanyo Electric Co., Ltd. among the above
shareholders shareholders. Sanyo Electric Co., Ltd. holds 26.6% of Dalian
Bingshan Group Co., Ltd.'s equity.
4.2 Particulars about controlling shareholders and actual controller of the Company
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§5 Corporate Bonds
The Company’s non-public issuance of exchangeable corporate bonds was listed at the Shanghai
Stock Exchange on August 6, 2018. As of August 1, 2018, according to the using plan disclosed in
the prospectus, the raised funds of the Company’s non-public issuance of exchangeable corporate
bonds have been used to repay bank loans. The special account for the Company's 2018
exchangeable corporate bonds fund raising was cancelled in March 2019. Till the reporting period,
the Company's exchangeable corporate bondholders exchanged a total of 8.3889 million shares.
§6 Management discussion and analysis
6.1 Business review for 2020
In 2020, the Company continued to focus on "exploitation, pragmatism, collaboration and action"
to maintain strategic momentum, strengthen development confidence, focus on hot and cold main
businesses, deepen market segmentation, continuously improve and innovate, and strive to achieve
main business objectives. In 2020, the company achieved operating income of 1,727,267,935.15
yuan, a decrease of 5.71% on a year-on-year basis; net profit attributable to shareholders of listed
companies was 21,341,133.39 yuan, a significant decrease on a year-on-year basis. The substantial
change in net profit was mainly due to the large amount of non-recurring income in the same
period last year, the large amount of non-recurring losses during the reporting period, and the
decrease in operating income of associates, which resulted in a corresponding decrease in the
Company's investment income.
During the reporting period, the Company made steady progress and operated prudently. The
prevention and control of the epidemic situation was carried out pragmatically, the production and
operation were stable and orderly, and the sales and orders steadily rebounded, and the
improvement of main business achieved initial results. Optimized the business and coordination
system, and more closely integrated technology and market. Renamed the Company, unified the
trade name and trademark, enhanced the brand value of Bingshan, and highlighted the Company's
hot and cold main business.
During the reporting period, Wuhan New World Refrigeration, a subsidiary of the Company,
faced the impact of the epidemic and made efforts to reduce expenditure and increase revenue.
Implemented flexible working system to improve the efficiency of employees' on-the-job
operations and reduce labor costs. Strengthened the recovery of long-term debt and reduced asset
impairment losses. Implemented product optimization to improve operational stability. Set up a
special team to strengthen the market expansion of standard products and energy products.
During the reporting period, Bingshan Engineering Company, a subsidiary of the Company,
established a professional work department to further develop its superior market segment. Taking
advantage of the first class qualifications, we won the bid for many representative projects such as
carbon dioxide project, corn deep processing project, central kitchen project, and ammonia system
improvement project. The natural gas liquefaction market achieved new developments, and LNG
general contracting projects got new orders.
The installation of the freezing station for large air-cooled cold-storage transport boats that broke
the monopoly of foreign ships was completed.
During the reporting period, Bingshan Service Company, a subsidiary of the Company,
accelerated digital applications through online and offline two-wheel drives. Bingshan
Industrial Refrigeration Technology Service Cloud Platform was awarded as the "Service-oriented
Manufacturing Demonstration Platform in Liaoning Province" and has provided services for many
Bingshan-funded enterprises. The machine room custody and transportation business was steadily
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promoted, the layout of national service outlets was optimized in an orderly manner, and the
service capacity and management capabilities continued to be improved.
During the reporting period, Panasonic Appliances Compressor, the Company's associated
company, continued to promote its transformation. Through the reform of the marketing system
and the optimization of the product structure, the focus of sales has shifted from large customers
to small and medium-sized customers, from the light commercial air-conditioning field to the
multi-field coordinated development of refrigeration, rail transit and other fields. The CO2
two-stage rolling rotor compressor for rail transit air-conditioning was selected as the "Innovative
Product of China Refrigeration Expo 2020". It was awarded as the "Enterprise Technology Center
in Liaoning Province". As the scroll compressor continuously being replaced by the rotor
compressor in the light commercial air-conditioning field and affected by the decline in overseas
sales, the net profit realized in 2020 decreased on a year-on-year basis.
During the reporting period, Panasonic Appliances Cold Chain, an associate company of the
Company, focused on the new retail and new catering markets. On the basis of strengthening sales
in the supermarket, focused on core products such as refrigerating smart self pick-up cabinets,
heating smart dining cabinets, and refrigerating smart vending cabinets, and optimized contactless
distribution/sales solutions. Due to the decline in overseas sales and the existence of large equity
transfer income in the same period last year, the net profit realized in 2020 had a dramatic decline
on a year-on-year basis.
During the reporting period, Panasonic Appliances Refrigeration, an associate company of the
Company, continued to improve its core competitiveness. Engineering orders increased
significantly, and it signed 4 Olympic skating rink projects, and undertook several EPC projects.
The optimization of the product structure was accelerated, and the CO2 trans-critical piston
compressor unit was sold. The full life cycle cold chain engineering network cloud platform with
integrated solutions as the core was built in an orderly manner, and digital applications were
firmly advanced. It was awarded as the "Gazelle Enterprise in Liaoning Province".
During the reporting period, Fuji Bingshan, an associate company of the Company, continued to
adjust its marketing model and strengthen its leading products. Reduced the traditional marketing
model based on operators, expanded the development of brand marketing, and promoted special
marketing. Focused on leading products such as beverage machines, coffee machines, and
integrated machines to better utilize comparative advantages. Affected by the financial strain of
operators and the slowdown in market expansion, the net profit realized in 2020 had a dramatic
decline on a year-on-year basis.
During the reporting period, Jingxue Company, an associate company of the Company, as an
enterprise under review for the initial public offering on the ChiNext of the China Securities
Regulatory Commission, submitted relevant applications to the ChiNext that started the pilot
registration system, and was officially accepted by the Shenzhen Stock Exchange on July 1, 2020,
and passed the deliberation of the ChiNext Listing Committee on December 29, 2020, it also
needs to obtain a decision from the China Securities Regulatory Commission approving the
registration
During the reporting period, in order to further focus on the hot and cold main business and
strengthen the improvement of main business, the Company transferred all its 49% equity of
Dalian Bingshan Group Management Consulting Co., Ltd.
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6.2 Major change or adjustment in the Company's main business in the reporting period
□Applicable √Inapplicable
6.3 Main business structure
□Applicable √Inapplicable
Increase/decrease
Increase/decrease of
of operating costs Increase/decrease of gross profit
product Operating revenue Operating profit Gross profit Operating profit on
on a year-on-year on a year-on-year basis
a year-on-year basis
basis
Refrigeration and
1,680,314,480.42 278,939,529.38 16.60% -5.93% -7.78% Decrease 0.33 percentage points
air-conditioning equipment
6.4 Is there a need to pay particular attention to the operation of seasonal or cyclical features?
□Applicable √Inapplicable
6.5 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
6.6 Face suspension of listing and termination of the listing
□Applicable √Inapplicable
6.7 Matters related to financial report
6.7.1 Change in accounting policies, accounting estimates and accounting methods compared with
the financial statements of the previous year
√Applicable □Inapplicable
On July 5th, 2017, the Ministry of Finance announced amendment to “Accounting Standards for
Business Enterprises No.14-income "(No22 Caikuai[2017]) (hereinafter referred to as “updated
income standard”). Since January 1, 2018, the updated income standard took effect for either the
company both listed in overseas and domestic or IFRS or Accounting Standards for Business
Enterprises adoption of the company listed overseas. The rest of domestic listed companies shall
adopt the standard since January 1, 2020. When preparing the financial statements for 2020FY, the
policy has been adopted and the accounting has been done in accordance with this standard.
New revenue standard took effect since January 1, 2020 and introduced 5 steps for revenue
recognition and gave more instruction to special transactions (or matters). The new revenue
accounting policy is referred to the note IV. 28. The new revenue standard requests the
cumulative effects shall be adjusted in the opening accounts (on January 1, 2020) of retained
earnings and other items in the financial statements for the first adoption and no adjustments are
requested for the comparative figures. When adopting the new revenue standard, the company
only adjusted the cumulative effects for incomplete contract on the first adoption date. Any
changes of contract prior to the beginning period of the first adoption year, shall be simplified by
the company. New revenue standard adoption and effect on the comparison figure as follows:
Consolidated balance sheet
Effect on new
Effected Items December 31st,2019 January 1st,2020
standard adoption
Accounts receivable 1,030,342,541.88 -73,210,394.19 957,132,147.69
Contract asset 73,210,394.19 73,210,394.19
Received in advance 160,571,622.53 -160,571,622.53
Contract liability 142,098,781.00 142,098,781.00
Other current liability 18,472,841.53 18,472,841.53
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Balance sheet of parent company
Effect on new
Effected Items December 31st,2019 January 1st,2020
standard adoption
Accounts receivable 526,554,114.61 -17,803,062.64 508,751,051.97
Contract asset 17,803,062.64 17,803,062.64
Received in advance 47,114,426.48 -47,114,426.48
Contract liability 41,694,182.73 41,694,182.73
Other current liability 5,420,243.75 5,420,243.75
6.7.2 Correction of major accounting mistakes in the reporting period, which should be
retroactively restated
□Applicable √Inapplicable
6.7.3 Explanation on change of consolidation scope in the report period compared with the latest
annual report
□Applicable √Inapplicable
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
April 24, 2021
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