DALIAN REFRIGERATION CO., LTD.
QUARTERLY REPORT FOR THIRD QUARTER, 2009
§1 Important Notes
1.1 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 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 The Company’s quarterly financial report has not been audited.
1.3 Chairman of the Board of Directors of the Company Mr. Zhang He, Financial Majordomo and
the head of Accounting Department Ms. Xu Junrao hereby confirm that the financial report of the
quarterly report is true and complete.
1.4 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.
§2 Company Profile
2.1 Major accounting data and financial indexes
2009.9.30 2008.12.31
Increase/decrease
over 2008.12.31(%)
Total assets 2,701,669,428.72 2,719,626,555.64 -0.66%
Shareholder’s equity 1,702,162,871.67 1,656,813,415.66 2.74%
Net assets per share 4.86 4.73 2.75%
2009.7-9 2009.1-9
Increase/decrease
over 2008.1-9(%)
Total operating income 362,926,575.98 958,336,722.44 -18.64%
Net profit 30,334,809.93 92,908,709.60 -1.03%
Net cash generated from
operating activities
- 59,994,857.83 233.33%
Net cash per share generated
from operating activities
- 0.17 230.77%
Basic earnings per share 0.09 0.27 0.00%
Diluted earnings per share 0.09 0.27 0.00%
Return on equity 1.78% 5.46%
Decrease 0.32
percentage points
ROE after deducting
non-recurring gains/losses
1.70% 5.26%
Decrease 0.27
percentage points2
Item of non-recurring gains and losses
Amount from beginning of year to the end of
report period
Net of Non-operating income and expense 5,273,094.89
Minority shareholders’ gains and losses -849,765.89
Income tax effect -1,071,698.69
Total 3,351,630.31
2.2 Total number and particulars of the shareholders by the end of the report period
Total shareholders at the end of report period 42,667
Particulars about shares held by the top ten negotiable shareholders not subject to conditional sales
Name of shareholder EOY (shares) Type
SANYO ELECTRIC CO LTD 35,001,500 B
DREYFUS GREATER CHINA FD 16,033,167 B
Huaxia Fuxing Stock-type Security Investment Fund 4,586,508 A
Dongfeng No. 3 Collective Assets Management Plan 4,243,427 A
Huaxia Dividend Mixed Type Open Security Investment Fund 3,643,429 A
Jiuzhou Development Co., Jilin Province 3,150,000 A
Di Rong 1,931,600 A
Dalian State-owned Assets Management Co., Ltd. 1,650,000 A
Dalian Industrial Development Investment Corp. 1,622,250 A
Huaxia Securities Co., Ltd. 1,575,000 A
§3 Important Matters
3.1 Major changes in main financial items and indexes, and description of the cause
√ Applicable □ Inapplicable
1. There is a marked increase in prepayment item as compared to that early this year, mainly due
to purchasing machine equipment.
2. There is a marked increase in dividends receivable, mainly because the time of payment for
dividing the dividends in the combined company has not come.
3. There is a marked increase in the financial assets available for sale as compared to that early
this year, because the 2.34 million floating stock of Dalian Rubber & Plastic Machinery Co., Ltd.
held by Company fluctuate in market value.
4. There is a marked increase in the work under progress as compared to that early this year,
mainly because the factory buildings under way for some sub-company have not been completed.
5. There is a marked decrease in short-term loans as compared to that early this year, mainly due
to loan repayment.
6. There is a marked decrease in the remuneration payable to the employees as compared to that
early this year, mainly because the remuneration payable due to drawing in the end of last period
was paid in this period.
7. There is a marked decrease in the financial expenses, mainly because the amount of loans is less
than that in the same period last year.3
8. There is a marked increase in non-business income, mainly because more related deferred
income has been confirmed for this period.
9. There is a marked decrease in the income tax expenses, mainly because no makeup tax payment
is necessary for the investment income to which the uniform income tax rate applies.
3.2 Analytic description of major matters, their influence and solutions
□ Applicable √ Inapplicable
3.3 Undertaking matters for trial sales of state shares and implementation
√ Applicable □Inapplicable
Bingshan Group undertook that the Dalian Refrigeration Co., Ltd.’s state shares held by it would
not be listed for trading or assigned within 12 months from the date when their being allowed to
be listed for trading in the A-share market; that the shares would not be listed for trading within 48
months after expiry of the aforementioned undertaking.
Bingshan Group well fulfilled the above undertaking.
3.4 Precautions on forecasting that by the beginning of year till the end of the next report period,
the accumulated net profit may be turned into loss or change greatly compared with that in the
same period of the last year, and description of the cause
□ Applicable √ Inapplicable
3.5 Other important events
The Company has neither provided fund to its controlling shareholders and its related parties, nor
provided external guarantee out of regulation.
3.5.1 Table of investigation, communication, interview received
Date of reception Place of
reception Way of reception Guest received
Main content of
discussion and
information
provided
July 13, 2009 In company By telephone Research fellow of Haitong Securities
July 21, 2009 In company By telephone Research fellow of East Securities
Fundemental
information of
company
§4 Financial Report (attached)
Not audited.
Board of Directors of Dalian Refrigeration Co., Ltd.
October 28, 20094
BALANCE SHEET
Prepared by Dalian Refrigeration Co., Ltd. September 30, 2009 Unit: RMB
September 30, 2009 Dec.31, 2008
Assets Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 310,759,100.82 224,379,864.32 312,337,783.75 228,316,557.10
Transaction finance asset
Notes receivable 42,811,866.12 26,203,560.00 45,482,748.85 43,487,353.38
Accounts receivable 451,266,197.38 244,071,376.74 437,078,053.74 240,792,212.32
Accounts in advance 32,734,111.86 12,016,927.29 24,099,268.38 4,009,891.07
Dividend receivable 14,600,000.00 25,657,569.72 3,244,600.00 11,235,833.74
Other receivables 22,300,038.45 40,943,921.17 23,628,868.03 23,980,858.98
Inventories 283,659,220.42 195,234,089.66 337,713,032.95 218,598,315.29
Non-current asset due within
one year
Other current assets
Total current assets 1,158,130,535.05 768,507,308.90 1,183,584,355.70 770,421,021.88
Non-current assets:
Finance asset held available
for sales
14,274,000.00 14,274,000.00 6,633,900.00 6,633,900.00
Held-to-maturity securities
Long-term account receivable
Long-term equity investment 1,031,099,282.33 1,161,147,511.25 1,014,652,040.81 1,144,700,269.73
Investment property
Fixed assets 362,823,978.90 213,644,542.14 384,129,544.11 228,202,302.25
Construction in progress 9,696,202.80 4,334,753.68 4,775,695.11 3,159,913.69
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 102,209,449.03 29,950,994.71 103,849,972.78 30,499,281.97
Expense on R&D
Goodwill
Long-term expenses to be
apportioned
3,431,573.16 3,003,532.76 3,535,431.90 3,094,243.49
Deferred income tax asset 20,004,407.45 14,431,811.36 18,465,615.23 13,038,422.19
Other non-current asset
Total non-current asset 1,543,538,893.67 1,440,787,145.90 1,536,042,199.94 1,429,328,333.32
Total assets 2,701,669,428.72 2,209,294,454.80 2,719,626,555.64 2,199,749,355.20
Legal representative: Zhang He Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao5
BALANCE SHEET (CONTINUED)
September 30, 2009 Dec.31, 2008
Liabilities and shareholders’ equity
Consolidation Parent Company Consolidation Parent Company
Current liabilities:
Short-term loans 60,000,000.00 50,000,000.00 110,000,000.00 100,000,000.00
Transaction financial liabilities
Notes payable 98,923,092.95 84,096,413.21 76,889,017.30 58,483,522.81
Accounts payable 385,119,196.66 242,765,540.35 397,286,738.10 232,111,721.35
Accounts received in advance 158,768,703.10 88,626,082.93 168,263,502.28 92,541,212.02
Wage payable 27,727,168.32 6,309,254.50 42,014,613.41 16,850,545.94
Taxes payable 8,794,623.63 5,066,843.96 10,306,291.74 5,621,080.62
Dividend payable 6,409,614.46 533,156.00 6,724,584.76 533,156.00
Other accounts payable 38,062,110.79 7,382,330.68 41,694,655.74 13,165,466.39
Non-current liabilities due within
one year
50,000,000.00 50,000,000.00 50,000,000.00 50,000,000.00
Other current liabilities
Total current liabilities 833,804,509.91 534,779,621.63 903,179,403.33 569,306,705.13
Non-current liabilities:
Long-term loans
Bonds payable
Long-term account payable
Special accounts payable
Projected liabilities
Deferred income tax liabilities 2,991,576.92 2,991,576.92 1,081,551.92 1,081,551.92
Other non-current liabilities 74,700,707.97 22,064,201.97 76,426,173.00 22,954,170.00
Total non-current liabilities 77,692,284.89 25,055,778.89 77,507,724.92 24,035,721.92
Total liabilities 911,496,794.80 559,835,400.52 980,687,128.25 593,342,427.05
Shareholders’ equity
Share capital 350,014,975.00 350,014,975.00 350,014,975.00 350,014,975.00
Capital public reserve 595,847,228.00 594,618,300.38 590,111,053.00 588,882,125.38
Surplus public reserve 392,661,101.92 392,661,101.92 368,103,745.84 368,103,745.84
Retained profit 363,639,566.75 312,164,676.98 348,583,641.82 299,406,081.93
Total owner’s equity attributable to
parent company
1,702,162,871.67 1,649,459,054.28 1,656,813,415.66 1,606,406,928.15
Minority interests 88,009,762.25 82,126,011.73
Total owner’s equity 1,790,172,633.92 1,649,459,054.28 1,738,939,427.39 1,606,406,928.15
Total liabilities and shareholder’s
equity
2,701,669,428.72 2,209,294,454.80 2,719,626,555.64 2,199,749,355.20
Legal representative: Zhang He Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao6
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. July-September, 2009 Unit: RMB
Items July-September, 2009 July-September, 2008
Consolidation Parent Company Consolidation Parent Company
I. Total operating income 362,926,575.98 232,782,946.07 428,137,924.67 251,596,606.57
Less: Operating cost 300,593,173.31 196,216,043.10 360,274,342.76 216,911,611.36
Operating tax and extras 1,783,473.90 1,221,391.52 2,861,627.27 998,835.94
Sales expenses 23,210,252.36 14,292,516.03 23,099,740.97 12,864,136.90
Administration expenses 34,724,911.28 21,078,625.74 34,701,304.74 20,934,524.67
Financial expenses 1,890,628.03 1,340,253.59 2,830,448.63 2,452,477.94
Losses of devaluation of asset -214,235.020 0.00 -2,109,132.310 0.00
Add: Changing income of fair value 0.00 0.00
Investment income 29,648,278.41 31,062,344.13 29,073,707.38 37,998,707.38
Including: Investment income on
affiliated company and joint venture
29,648,278.41 29,648,278.41 29,015,207.38 29,015,207.38
II. Operating profit 30,586,650.53 29,696,460.22 35,553,299.99 35,433,727.14
Add: Non-operating income 4,471,210.46 2,101,396.11 2,106,074.81 1,604,412.57
Less: Non-operating expense 125,503.25 55,245.81 487,717.02 200,321.20
Including: Disposal loss of
non-current asset
51,927.16 51,927.16 444,379.82 199,862.56
Ⅲ. Total Profit 34,932,357.74 31,742,610.52 37,171,657.78 36,837,818.51
Less: Income tax 1,126,177.48 1,873,510.60 3,551,204.15 2,108,047.61
Ⅳ. Net profit 33,806,180.26 29,869,099.92 33,620,453.63 34,729,770.90
Net profit attributable to owner’s
equity of parent company
30,334,809.93 29,869,099.92 29,114,984.95 34,729,770.90
Minority shareholders’ gains and
losses
3,471,370.33 0.00 4,505,468.68 0.00
Ⅴ. Earnings per share
i. Basic earnings per share 0.09 0.08
ii. Diluted earnings per share 0.09 0.08
Legal representative: Zhang He Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao7
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January-September, 2009 Unit: RMB
Items January-September, 2009 January-September, 2008
Consolidation Parent Company Consolidation Parent Company
I. Total operating income 958,336,722.44 579,808,768.29 1,177,940,057.34 748,891,483.27
Less: Operating cost 774,875,258.89 477,432,526.81 962,935,663.46 636,750,774.19
Operating tax and extras 4,015,465.78 2,481,671.66 5,471,830.76 2,397,532.22
Sales expenses 52,440,679.97 27,646,243.70 58,999,494.27 28,412,456.05
Administration expenses 94,150,856.76 58,698,173.99 106,079,778.41 65,823,066.33
Financial expenses 7,308,542.40 6,355,500.83 6,596,377.40 5,668,976.09
Losses of devaluation of asset 11,175,384.53 6,813,776.03 16,950,990.50 9,582,429.31
Add: Changing income of fair value
Investment income 81,709,709.82 86,145,511.52 86,482,215.80 100,742,243.68
Including: Investment income on
affiliated company and joint venture
57,460,041.32 57,460,041.32 71,374,268.30 71,374,268.30
II. Operating profit 96,080,243.93 86,526,386.79 107,388,138.34 100,998,492.76
Add: Non-operating income 8,318,751.54 5,010,080.35 7,308,767.14 4,152,605.17
Less: Non-operating expense 249,288.48 80,634.69 894,731.74 405,925.42
Including: Disposal loss of
non-current asset
102,782.04 77,316.04 600,187.94 325,466.78
Ⅲ. Total Profit 104,149,706.99 91,455,832.45 113,802,173.74 104,745,172.51
Less: Income tax 2,885,816.61 1,637,635.07 8,868,592.12 4,516,932.21
Ⅳ. Net profit 101,263,890.38 89,818,197.38 104,933,581.62 100,228,240.30
Net profit attributable to owner’s
equity of parent company
92,908,709.60 89,818,197.38 93,875,115.32
Minority shareholders’ gains and
losses
8,355,180.78 11,058,466.30
Ⅴ. Earnings per share
i. Basic earnings per share 0.27 0.27
ii. Diluted earnings per share 0.27 0.27
Legal representative: Zhang He Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao8
CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January -September , 2009 Unit: RMB
January -September, 2009 January -September, 2008
Items Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating activities:
Cash received from selling commodities and
providing labor services
810,585,711.26 512,483,884.10 1,060,122,169.91 618,791,284.89
Write-back of tax received 573,640.04 3,591,558.31
Other cash received concerning operating
activities
29,784,739.62 17,991,135.24 27,430,383.05 14,511,468.02
Subtotal of cash inflow arising from
operating activities
840,944,090.92 530,475,019.34 1,091,144,111.27 633,302,752.91
Cash paid for purchasing commodities and
receiving labor service
510,172,769.32 329,916,536.99 857,079,074.93 531,922,496.13
Cash paid to/for staff and workers 121,202,958.07 75,734,622.14 133,165,897.58 81,344,295.70
Taxes paid 69,907,636.50 40,203,519.07 60,767,320.39 37,065,334.15
Other cash paid concerning operating activities 79,665,869.20 36,512,508.81 85,127,775.60 46,494,904.43
Subtotal of cash outflow arising from
operating activities
780,949,233.09 482,367,187.01 1,136,140,068.50 696,827,030.41
Net cash flows arising from operating
activities
59,994,857.83 48,107,832.33 -44,995,957.23 -63,524,277.50
II. Cash flows arising from investing activities:
Cash received from recovering investment
Cash received from investment income 55,325,134.02 55,280,534.02 59,188,622.40 59,975,382.28
Net cash received from disposal of fixed,
intangible and other long-term assets
77,755.00 63,655.00 5,218,633.00 2,281,663.00
Net cash received from disposal of subsidiaries
and other units
Other cash received concerning investing
activities
4,537,620.00 4,537,620.00 14,916,581.60 9,290,000.00
Subtotal of cash inflow from investing
activities
59,940,509.02 59,881,809.02 79,323,837.00 71,547,045.28
Cash paid for purchasing fixed, intangible and
other long-term assets
7,837,827.59 2,618,952.85 30,038,008.02 3,209,220.25
Cash paid for investment 24,478,593.00 24,478,593.00
Other cash paid concerning investing activities 3,358,916.29
Subtotal of cash outflow from investing
activities
7,837,827.59 2,618,952.85 57,875,517.31 27,687,813.25
Net cash flows arising from investing
activities
52,102,681.43 57,262,856.17 21,448,319.69 43,859,232.03
III. Cash flows arising from financing
activities9
Cash received from absorbing investment
Cash received from loans 54,269,500.00 50,000,000.00 105,000,000.00 100,000,000.00
Other cash received concerning financing
activities
Subtotal of cash inflow from financing
activities
54,269,500.00 50,000,000.00 105,000,000.00 100,000,000.00
Cash paid for settling debts 103,660,000.00 100,000,000.00 75,000,000.00 50,000,000.00
Cash paid for dividend and profit distributing
or interest paying
64,162,039.18 59,307,371.25 70,142,726.22 68,806,479.69
Other cash paid concerning financing activities 124,000.00
Subtotal of cash outflow from financing
activities
167,946,039.18 159,307,371.25 145,142,726.22 118,806,479.69
Net cash flows arising from financing
activities
-113,676,539.18 -109,307,371.25 -40,142,726.22 -18,806,479.69
IV. Influence on cash due to fluctuation in
exchange rate
316.99 -10.03 98,415.61 -860.97
V. Net increase of cash and cash equivalents -1,578,682.93 -3,936,692.78 -63,591,948.15 -38,472,386.13
Add: Balance of cash and cash equivalents at
the period -begin
312,337,783.75 228,316,557.10 244,799,726.11 145,162,895.61
VI. Balance of cash and cash equivalents at the
period–end
310,759,100.82 224,379,864.32 181,207,777.96 106,690,509.48
Legal representative: Zhang He Person in charge of accounting organ: Xu Junrao
Principal of accounting organ: Xu Junrao
