Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. Quarterly Report For First Quarter, 2022 Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. QUARTERLY REPORT FOR FIRST QUARTER, 2022 April, 2022 1 Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. Quarterly Report For First Quarter, 2022 Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. QUARTERLY REPORT FOR FIRST QUARTER, 2022 Important Notes 1.1 The directors and the Board of Directors, the supervisors and the Supervisory Board, and Senior staff members of Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no 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. 1.2 Chairman of the Board of Directors of the Company, Financial Majordomo, and the head of Accounting Department hereby confirm that the financial report of the quarterly report is true and complete. 1.3 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. §1 Major accounting data 1.1 Major accounting data and financial indexes Increase/decrease compared January-March, 2022 January-March, 2021 with previous year Operating revenue 580,124,203.74 491,609,773.09 18.01% Net profit attributable to shareholders of -12,758,270.89 -28,904,736.89 55.86% listed companies Net profit belonging to the shareholders of listed companies after the deduction of 5,827,430.25 -16,049,142.03 136.31% non-recurring profit and loss Net cash flow from operating activities -106,839,308.54 17,535,066.89 -709.29% Basic earnings per share -0.015 -0.034 55.88% Diluted earnings per share -0.015 -0.034 55.88% Weighted average return on net asset yield -0.43% -0.86% Increase 0.43 percentage points Increase/decrease compared March 31, 2022 December 31, 2021 with year beginning Total assets 5,620,932,292.27 5,735,570,604.67 -2.00% Owner's equity attributable to shareholders of 2,989,748,394.58 3,002,842,837.47 -0.44% listed companies The net profit of the Company was in deficit (year-on-year loss reduction) , mainly due to: 1.During the reporting period, there are large amount of non-recurring losses, mainly due to that the negative change in fair value of Guotai Junan has made the Company loss about 20.22 million yuan in first quarter,2022. 2. During the reporting period, the Company focused on hot and cold industries, continued to cultivate advantageous market segments, solidly improved its core competitiveness, accelerated the improvement of its main business, and turned its net profit into profit after deducting non recurring profits and losses. 1.2 non-recurring gains and losses √ Applicable □ Inapplicable 2 Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. Quarterly Report For First Quarter, 2022 Item of non-recurring gains and losses Amount from beginning of year to the end of report period Disposal gains and losses of non-current asset 1,328.76 Government subsidies included in current profit or loss 1,330,265.28 Disposal gains from investments on other non-current financial assets, or gains from fair value change of other -23,861,817.44 non-current financial assets Other operating revenue or expense 899,935.71 Income tax effect -3,197,063.17 Minority shareholders’ gains and losses 152,476.62 Total -18,585,701.14 1.3 Major changes in main financial items and indexes, and description of the cause √ Applicable □ Inapplicable (1). Receivables financing decreased 60.53% compared with the beginning of the year, mainly due to the undue acceptance of high credit banks. (2). Accounts paid in advance increased 36.11% compared with the beginning of the year, mainly due to the increase of orders in this period, especially the increase of engineering projects, and the price of bulk raw materials continues to rise, which need to advance payment to suppliers. (3). Right of use assets decreased 32.15% compared with the beginning of the year, mainly due to the reduction of companies in the scope of merger (the transfer of Bingshan Service shares was completed). (4). Salary payable decreased 85.13% compared with the beginning of the year, mainly due to the payment of provision employee compensation of last period-end during the reporting period. (5). Other accounts payable decreased 43.42% compared with the beginning of the year, mainly due to the increase of current expenses such as the balance of reimbursement paid to individuals and the payment of freight. (6). Gain from change in fair value decreased 43.28% on a year-on-year basis, mainly due to the negative change of Goutai Junan share price. (7). Net cash flows arising from operating activities decreased 124.37 million yuan on a year-on-year basis, mainly due to the increase of product and engineering orders and the increase of cash paid for the purchase of raw materials and engineering construction. (8).Net cash flows arising from financing activities decreased 35.38 million yuan on a year-on-year basis, mainly due to the reduction of working capital loans, and the cash paid for debt repayment increased. §2 shareholders information 2.1 Total number and particulars of the shareholders by the end of the report period Total number of shareholders in the reporting period 82,592 Shareholding of top ten shareholders Number of Number of pledged shares Name Nature Proportion Total number shares or with sale shares restriction frozen Domestic non-state-owned Dalian Bingshan Group Co., Ltd. 20.27% 170,916,934 0 legal person Sanyo Electric Co., Ltd. Overseas legal person 8.72% 73,503,150 0 Lin Zhenming Foreign natural person 0.80% 6,730,000 0 Chen Yong Domestic natural person 0.54% 4,520,000 Wu An Domestic natural person 0.53% 4,500,000 0 Xue Hong Domestic natural person 0.43% 3,600,000 0 Dalian industrial development investment Co., Domestic non-state-owned 0.40% 3,406,725 0 Ltd. legal person Li Xiaohua Domestic natural person 0.37% 3,145,608 0 Zhan Changcheng Domestic natural person 0.35% 2,971,647 0 Chen Cirou Domestic natural person 0.31% 2,635,550 0 Shareholding of top ten shareholders without sale restriction Name Number of shares without sale Type of shares 3 Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. Quarterly Report For First Quarter, 2022 restriction Dalian Bingshan Group Co., Ltd. 170,916,934 RMB denominated ordinary shares Sanyo Electric Co., Ltd. 73,503,150 Domestically listed foreign shares Lin Zhenming 6,730,000 Domestically listed foreign shares Chen Yong 4,520,000 RMB denominated ordinary shares Wu An 4,500,000 Domestically listed foreign shares Xue Hong 3,600,000 Domestically listed foreign shares Dalian industrial development investment Co., Ltd. 3,406,725 RMB denominated ordinary shares Li Xiaohua 3,145,608 RMB denominated ordinary shares Zhan Changcheng 2,971,647 Domestically listed foreign shares Chen Cirou 2,635,550 Domestically listed foreign shares Dalian Bingshan Group Co., Ltd. had the association relationship with Notes to the associated relationship and uniform actions Sanyo Electric Co., Ltd. among the above shareholders. Sanyo Electric of the above shareholders Co., Ltd. holds 26.6% of Dalian Bingshan Group Co., Ltd.'s equity. Note: at the end of the reporting period, the total number of shareholders of the Company was 82,592, including 75,160 A-share shareholders and 7,432 B-share shareholders. 2.2 Total number of preferred shareholders and shareholding of top 10 preferred shareholders of the company □Applicable √Inapplicable §3 Other important matters √ Applicable □ Inapplicable During the reporting period, the Board of Directors of the Company reviewed and approved the report on the transfer of equity of Bingshan technology services (Dalian) Co., Ltd. and completed the equity transfer. By the end of March 2022, Bingshan technical services (Dalian) Co., Ltd. will no longer be included in the scope of the Company's consolidated statements. §4 Financial Report (attached) Not audited. Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.. April 23, 2022 4 Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. Quarterly Report For First Quarter, 2022 CONSOLIDATED BALANCE SHEET Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. March 31, 2022 Unit: RMB Yuan Items 31-Mar-2022 31-Dec-2021 Current assets: Monetary funds 395,020,872.40 522,658,505.79 Transaction financial assets Financial assets which are measured by fair value and which changes are recorded in current profit and loss Derivative financial assets Notes receivable 160,160,380.30 166,430,365.74 Accounts receivable 824,500,659.90 821,548,678.85 Receivables financing 17,246,416.09 43,704,310.38 Accounts in advance 248,663,838.92 182,701,403.55 Other receivables 67,901,951.85 60,340,096.45 Interest receivables Dividend receivable 25,923.75 1,003,568.75 Inventories 1,028,721,180.26 1,014,527,127.82 Contract assets 105,659,263.05 109,859,658.79 Assets held for sale Non-current asset due within one year 14,990,989.30 14,990,989.30 Other current assets 24,963,255.60 24,525,076.71 Total current assets 2,887,828,807.67 2,961,286,213.38 Non-current assets: Finance asset held available for sales Held-to-maturity investment Long-term account receivable Long-term equity investment 1,241,883,989.86 1,231,504,533.45 Other non-current financial assets 232,259,847.17 261,410,664.61 Investment property 118,858,115.62 120,752,809.61 Fixed assets 844,262,425.94 855,395,405.85 Construction in progress 39,807,454.38 38,974,478.45 Right-of-use asset 16,238,321.32 23,934,703.37 Productive biological asset Oil and gas asset Intangible assets 139,702,458.49 142,592,738.10 Expense on Research and Development Goodwill 1,750,799.49 1,750,799.49 Long-term expenses to be apportioned 7,181,522.95 8,088,684.23 Deferred income tax asset 91,158,549.38 89,879,574.13 Other non-current asset Total non-current asset 2,733,103,484.60 2,774,284,391.29 Total assets 5,620,932,292.27 5,735,570,604.67 Current liabilities: Short-term loans 196,203,916.72 245,937,091.72 Financial liabilities which are measured by fair value and which changes are recorded in current profit and loss Derivative financial liabilities 5 Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. Quarterly Report For First Quarter, 2022 Transaction financial liabilities Notes payable 371,424,658.75 380,033,039.56 Accounts payable 991,338,355.92 919,871,927.53 Accounts received in advance Contract liability 474,484,553.28 499,719,963.40 Wage payable 5,225,929.25 35,148,782.48 Taxes payable 10,123,843.67 13,514,847.82 Other accounts payable 31,279,424.33 55,284,140.21 Interest payable Dividend payable 533,156.00 3,008,156.00 Liabilities held for sale Non-current liabilities due within one year 20,450,927.09 24,175,388.12 Other current liabilities 169,544,831.46 195,213,206.91 Total current liabilities 2,270,076,440.47 2,368,898,387.75 Non-current liabilities: Long-term loans 150,000,000.00 150,000,000.00 Bonds payable Preferred stock Perpetual bond Lease liability 4,156,176.02 5,394,021.14 Long-term account payable 23,998,505.26 19,998,913.29 Long-term wage payable Special payable Anticipation liabilities Deferred income 104,228,578.12 106,185,323.82 Deferred income tax liabilities 31,268,727.09 35,596,349.70 Other non-current liabilities Total non-current liabilities 313,651,986.49 317,174,607.95 Total liabilities 2,583,728,426.96 2,686,072,995.70 Shareholders’ equity Share capital 843,212,507.00 843,212,507.00 Other equity instruments Preferred stock Perpetual bond Capital public reserve 719,879,694.78 720,215,866.78 Less:Treasury stock Other comprehensive income 2,178,681.73 2,178,681.73 Special preparation Surplus public reserve 809,471,199.64 809,471,199.64 Generic risk reserve Retained profit 615,006,311.43 627,764,582.32 Total owner’s equity attributable to parent company 2,989,748,394.58 3,002,842,837.47 Minority interests 47,455,470.73 46,654,771.50 Total owner’s equity 3,037,203,865.31 3,049,497,608.97 Total liabilities and shareholder’s equity 5,620,932,292.27 5,735,570,604.67 Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Li Sheng 6 Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. Quarterly Report For First Quarter, 2022 CONSOLIDATED INCOME STATEMENT Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. January-March,2022 Unit: RMB Yuan Items January-March, 2022 January-March, 2021 I. Total sales 580,124,203.74 491,609,773.09 II. Total operating cost 577,913,040.39 516,884,426.17 Including: Operating cost 498,267,124.81 436,518,281.93 Taxes and associate charges 3,902,568.08 4,447,799.12 Selling and distribution expenses 27,893,989.00 24,476,670.80 Administrative expenses 31,089,049.53 33,940,534.49 R&D expenses 13,871,052.81 14,447,195.16 Financial expense 2,889,256.16 3,053,944.68 Including: interest expense 3,488,895.03 4,333,295.72 interest income 1,293,302.61 785,952.58 Add: Other income 1,330,265.28 293,055.99 Gain/(loss) from investment 9,816,076.84 6,927,971.12 Including: income from investment on affiliated enterprise and jointly 10,379,456.43 6,927,971.12 enterprise Gain/(loss) from change in fair value -23,861,817.44 -16,653,910.32 Credit impairment loss (loss as “-“) -7,027,144.32 288,504.20 Assets impairment loss (loss as “-“) -559,933.94 -337,530.96 Gain/(loss) from asset disposal 1,328.76 -581.47 III. Operating profit -18,090,061.47 -34,757,144.52 Add: non-business income 939,431.78 1,713,891.63 Less: non-business expense 39,496.07 134,540.03 IV. Total profit -17,190,125.76 -33,177,792.92 Less: Income tax -5,232,554.10 -1,735,191.80 V. Net profit -11,957,571.66 -31,442,601.12 (I) Net profit from continuous operation -11,957,571.66 -31,442,601.12 (II)Net profit from discontinuing operation Net profit attributable to parent company -12,758,270.89 -28,904,736.89 Minority shareholders’ gains and losses 800,699.23 -2,537,864.23 VI. After-tax net amount of other comprehensive incomes After-tax net amount of other comprehensive 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 invests that cannot be reclassified into gains and losses under the equity method (II) Other comprehensive incomes that will be reclassified into gains and losses 1. Enjoyable shares in other comprehensive incomes in invests that will be reclassified into gains and losses under the equity method 2. Changes in the fair value of other debt investments 3. Gains and losses on fair value changes of available-for-sale financial assets 4. The amount of financial assets reclassified into other comprehensive income 5. Held-to-maturity investments are reclassified as saleable financial asset gains and losses 6.Others 7 Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. Quarterly Report For First Quarter, 2022 After-tax net amount of other comprehensive incomes attributable to minority shareholders VII Total comprehensive income -11,957,571.66 -31,442,601.12 Total comprehensive income attributable to parent company -12,758,270.89 -28,904,736.89 Total comprehensive income attributable to minority shareholders 800,699.23 -2,537,864.23 VIII. Earnings per share (I) basic earnings per share -0.015 -0.034 (II) diluted earnings per share -0.015 -0.034 Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Li Sheng 8 Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. Quarterly Report For First Quarter, 2022 CONSOLIDATED CASH FLOW STATEMENT Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. January-March,2022 Unit: RMB Yuan Items January-March, 2022 January-March, 2021 I. Cash flows arising from operating activities: Cash received from selling commodities and providing labor services 500,361,015.88 443,778,928.68 Write-back of tax received 3,578,931.71 5,865,413.95 Other cash received concerning operating activities 18,461,468.38 16,836,637.09 Subtotal of cash inflow arising from operating activities 522,401,415.97 466,480,979.72 Cash paid for purchasing commodities and receiving labor service 473,893,381.54 287,732,394.01 Cash paid to/for staff and workers 101,373,036.54 107,685,576.50 Taxes paid 13,478,309.63 18,796,664.89 Other cash paid concerning operating activities 40,495,996.80 34,731,277.43 Subtotal of cash outflow arising from operating activities 629,240,724.51 448,945,912.83 Net cash flows arising from operating activities -106,839,308.54 17,535,066.89 II. Cash flows arising from investing activities: Cash received from recovering investment 300,000.00 Cash received from investment income 27,612,431.60 Net cash received from disposal of fixed, intangible and other long-term assets 98,000.00 5,000.00 Net cash received from disposal of subsidiaries and other units 36,263,700.00 Other cash received concerning investing activities Subtotal of cash inflow from investing activities 28,010,431.60 36,268,700.00 Cash paid for purchasing fixed, intangible and other long-term assets 5,116,381.41 1,642,241.62 Cash paid for investment Net cash paid for achievement of subsidiaries and other business units Other cash paid concerning investing activities 10,428,455.96 Subtotal of cash outflow from investing activities 15,544,837.37 1,642,241.62 Net cash flows arising from investing activities 12,465,594.23 34,626,458.38 III. Cash flows arising from financing activities Cash received from absorbing investment Including: Cash received from absorbing minority shareholders' equity investment by subsidiaries Cash received from loans 147,000,000.00 136,330,000.00 Cash received from issuing bonds Other cash received concerning financing activities 96,864,996.29 78,196,961.15 Subtotal of cash inflow from financing activities 243,864,996.29 214,526,961.15 Cash paid for settling debts 187,633,750.00 154,668,693.39 Cash paid for dividend and profit distributing or interest paying 5,179,787.72 5,404,836.44 Including: dividends or profit paid by subsidiaries to minority shareholders Other cash paid concerning financing activities 82,872,922.79 59,364,339.93 Subtotal of cash outflow from financing activities 275,686,460.51 219,437,869.76 Net cash flows arising from financing activities -31,821,464.22 -4,910,908.61 IV. Influence on cash due to fluctuation in exchange rate 86,419.22 232,247.23 V. Net increase of cash and cash equivalents -126,108,759.31 47,482,863.89 Add: Balance of cash and cash equivalents at the period -begin 438,969,337.87 314,978,460.49 VI. Balance of cash and cash equivalents at the period–end 312,860,578.56 362,461,324.38 Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Li Sheng 9