黄石东贝电器股份有限公司 2013 年年度报告
Huangshi Dongbei Electrical Appliance Co.,
Ltd.
900956
2013 Annual Report
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黄石东贝电器股份有限公司 2013 年年度报告
I. Important Notes
1.The Board of Directors ，Supervisory Committee，directors , supervisors and Senior Executives
of the Company hereby guarantees that there are no misstatement, misleading representation or
important omissions in this report and shall assume joint and several liability for the authenticity,
accuracy and completeness of the contents hereof.
2．The situation of the director who failed to attend
Position of the director Name of the director Reason for failure to
Name of proxy
who failed to attend who failed to attend attend
Director Zhu Jinming Business trip Yang Baichang
3. Daxin Certified Public Accountants Co., Ltd.( LLP)issued standard unqualified auditors' report
for the Company.
4. Mr.Yang Baichang, Person in charge of the Company, Ms. Lu Lihua, Chief financial officer and
the Ms. Ma Li, the person in charge of the accounting department (the person in charge of the
accounting )hereby confirm the authenticity and completeness of the financial report enclosed in
this Annual Report .
5. The profit allocation plan or the capitalization from capital public reserve during the report peri
od examined by the Board of Directors: considering the interests of shareholders and the long-ter
m development, the profit allocation plan of the company in 2013 was as belows. Based on the Co
mpany’s total share capital of RMB 235,000,000 as at December 31, 2013,the Company would dis
tribute cash dividend to all the shareholders at the rate of RMB 1.00 for every 10 shares (with tax
inclusive), the estimated allotting profit of RMB 23.500,000 and the balance of RMB 411,069,646
.73 are carried over to the next allocation. Also, the bonus shares allocation and the capitalization f
rom capital public reserve will not be conducted for the company this year.
6. Whether the controlling shareholder and its related parties did not occupy the funds of the
Company for operation.
No.
7. Whether the Company did not provide guarantee in violation of specified decision-making
procedure.
No.
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黄石东贝电器股份有限公司 2013 年年度报告
Table of Contents
I. Important Notes, Contents & Definition
II. Company profile
III. Summary of Accounting Data and Financial indexes
IV. Report of the Board of Directors
V. Important Events
VI. Particulars about Changes in Share Capital and Shareholders
VII.Particulars about Directors, Supervisors, Senior Executives and Employees
VIII. Company Administration Structure
IX. Internal Control
X. Financial Report
XI. List of Documents Available for Inspection
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黄石东贝电器股份有限公司 2013 年年度报告
I.Definition and Major Risk Warning
1.Definition
In this report, medium, the following words and expressions shall have the following meaning unless
otherwise defined:
Definition of frequently mentioned words and expressions
Company, The Company, We, Huangshi Dongbei Electrical
Refers to
Dongbei Electrical Appliance Appliance Co., Ltd.
Dongbei Group, Controlling Huangshi Dongbei
Refers to
shareholder Electromechanical Group Co., Ltd
Daxin, Daxin Certified Public Daxin Certified Public Accountants
Refers to
Accountants Co., Ltd. ( LLP)
Report period Refers to 2013
China Securities Regulatory
CSRC Refers to
Commission
The Securities Law of the
The Securities Law Refers to
People’s Republic of China
The Company Law of the
The Company Law Refers to
People’s Republic of China
The Articles of association of
Articles, The Articles of association Refers to Huangshi Dongbei Electrical
Appliance Co., Ltd.
RMB Yuan , RMB million
Yuan, Million Yuan, billion Yuan Refers to
Yuan,RMB billion Yuan
2. Reminder of Major Risks：
The Company has described the possible risks in this year’s report in order to attract attention from the
investors. For more refer to the ― Report of the future development discussion by Board of Directors‖.
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黄石东贝电器股份有限公司 2013 年年度报告
II.Company profile
1. Information of the Company
Chinese name of the Company 黄石东贝电器股份有限公司
Abbr. of the Chinese name of the Company 东贝 B 股
English name of the Company Huangshi Dongbei Electrical Appliance Co.,Ltd
Legal representative of the Company Yang Baichang
2. Contact person and contact manner
Board secretary Securities affairs Representative
Name Lu Lihua Huang Jie
No.6, Jinshan East Road, No.6, Jinshan East Road,
Economic & Technology Economic & Technology
Contact address
Development Zone, Huangshi Development Zone, Huangshi
City, Hubei Province. City, Hubei Province.
Tel 0714-5415858 0714-5415858
Fax 0714-5415858 0714-5415858
E-mail stock@donper.com stock@donper.com
3.Basic Information about the Company
No.6, Jinshan East Road, Economic & Technology
Registered Address:
Development Zone, Huangshi City, Hubei Province.
Postal code of Registered address 435000
No.6, Jinshan East Road, Economic & Technology
Business Address
Development Zone, Huangshi City, Hubei Province.
Postal code of Business address 435000
Website： http://www.donper.com
E-mail stock@donper.com
4.The Place for Placing the Annual Report and the Information Disclosure
Shanghai Securities Daily and Hong Kong
Newspapers for Information Disclosure
Commercial Daily
Internet Website for Publishing the Annual Report www.sse.com.cn
The Place for Placing the Annual Report Securities Dept. of the Company
5.Stock Profile
Stock Condition of the Company
Stock exchange for
Type Stock Abbreviation Stock Code
listing
Shanghai Stock
B share Dongbei B 900956
Exchange
6.The change of the registration in the report period
（1）Basic Information
The registration remained in the report period
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黄石东贝电器股份有限公司 2013 年年度报告
（2）Change of main operation of the Company since its listing
The Company was listed at Shanghai Stock Exchange in July 1999. Business Scope: Production and
sales of refrigerating compressors and electrical motors of compressors, development and consultation
of high-tech products.
（3）Change of controlling shareholder since the listing of the Company
After the completion of the issuance of B shares, the registered capital of the Company was RMB
235,000,000.00, which was divided into 235,000,000.00 shares with par value of RMB 1 per share.
117,600,000 shares are owned by the state. Huangshi State-owned Assets Administration entrusted
Dongbei Refrigerating Machine Group Company to hold these shares.
According to the Agreement for Conversion of Debts in Shares and the approval document issued by
State Economic and Trading Commission for approving the implementation of conversion of debts
into shares by Huangshi Dongbei Refrigerating Machine Group Co., Ltd., Huangshi Dongbei
Refrigerating Machine Group Co., Ltd., the original controlling shareholder of the Company,
contributed capital with its main operating assets (including 50.04% equity of the Company held by it)
and established Huangshi Dongbei Electromechanical Group Co., Ltd. jointly with three asset
management company, i.e., Orient, Xinda and Huarong on September 10, 2002. After the
establishment of Huangshi Dongbei Electromechanical Group Co., Ltd., the Company's controlling
shareholder changed from Huangshi Dongbei Refrigerating Machine Group Co., Ltd. to Huangshi
Dongbei Electromechanical Group Co., Ltd. As the 117.60 million shares held by Huangshi Dongbei
Refrigerating Machine Group Co., Ltd. are state-owned shares, the equity transfer is subject to the
approval of Ministry of Finance. Huangshi Dongbei Refrigerating Machine Group Co., Ltd. agreed to
entrust Huangshi Dongbei Electromechanical Group Co., Ltd. to manage the 117.60 million
state-owned shares held by it before obtaining the approval of Ministry of Finance.
On March 28, 2005, the State Council approved changing 117.60 million state-owned shares of
Huangshi Dongbei Electrical Appliance Co., Ltd. held by Huangshi Dongbei Refrigerating Machine
Industrial Co. (originally named as Huangshi Dongbei Refrigerating Machine Group Co., Ltd. and
later renamed as Huangshi Dongbei Refrigerating Machine Industrial Co.) into 117.60 state-owned
legal person shares held by Huangshi Dongbei Electromechanical Group Co., Ltd. with the Approval
of Change of Holder of State-owned Shares of Huangshi Dongbei Electrical Appliance Co., Ltd. (Guo
Zi Chan Quan (2005) No. 197 Document).
7.Other Relevant Information
Hubei Daxin Certified Public
Name Accountants Co., Ltd. ( Special
General Partnership)
16/F, Zhiyin Media Square,
Certified public accountants engaged by the Business Address
No.31, Zhongbei Road, Wuhan
Company（Domestic）
Names of the
Certified Public Zhang Ling
Accountants as the Jiang Yanhong
signatories
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黄石东贝电器股份有限公司 2013 年年度报告
III.Summary of Accounting Data and Financial indexes
I.Main accounting data and financial indicators of the Company in the last three years as of the end of
the report period
(1)Main accounting data
In RMB
Changed over
Main accounting data 2013 2012 2011
last year（％)
Operating income 4,264,031,820.89 4,115,881,689.22 3.60 4,001,367,095.40
Net profit attributable to the
shareholders of the listed 93,824,776.19 60,515,708.87 55.04 44,933,406.39
company
Net profit after deducting of
non-recurring gain/loss
54,216,908.08 58,325,054.43 -7.04 37,576,447.66
attributable to the shareholders
of listed company
Cash flow generated by
52,733,441.69 323,081,079.29 -83.68 26,244,601.54
business operation, net
End of End of Changed over End of
2013 2012 last year（％) 2011
Net assets attributable to the
shareholders of the listed 897,432,610.64 803,800,900.15 11.65 650,290,917.83
company
Gross assets 3,851,675,304.29 3,807,985,913.82 1.15 3,688,983,839.64
(2)Main Financial date
Changed over
Main Financial indexes 2013 2012 2011
last year（％)
Basic earning per
0.399 0.258 54.65 0.191
share(RMB/Share)
Diluted gains per
0.399 0.258 54.65 0.191
share(RMB/Share)
Basic earning per share after
deducting of non-recurring 0.231 0.248 -6.85 0.16
gains/losses(RMB/Share)
Weighted average net asset Increased by
11.03 8.89 6.97
earning ratio（%） 2.14%
Net income on asset, weighted
Decreased
and deducted non-recurring 6.37 8.57 5.83
by 2,2%
gain/loss(%)
II.Items and amount of non-operating gains and losses:
In RMB
Items of non-operating
Amount (2013) Amount (2012) Amount(2011)
gains and losses
Gain/loss form disposal of
31,109,041.33 -11,388,425.50 -6,795,070.26
non-current assets.
Governmental Subsidy 8,607,485.00 10,055,161 17,599,671.23
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黄石东贝电器股份有限公司 2013 年年度报告
accounted as current
gain/loss, except for those
subsidies at with amount
or quantity fixed by the
national government and
closely related to the
Company’s business
operation.
Capital occupation charges
on non-financial
enterprises that are 393,827.10
recorded into current gains
and losses
Net profit or loss from
beginning of the year to
acquisition date from
subsidiaries acquired 1,450,615.72
under category of business
combinations under
common control
Other non-business
income and expenditures 6,722,899.04 2,161,537.69 -1,682,340.42
other than the above
Influenced amount of
-200,396.48 235,652.07 -425,161.48
minor shareholders’ equity
Influenced amount of
-7,024,987.88 -323,885.54 -1,340,140.34
income tax
Total 39,607,868.11 2,190,655.44 7,356,958.73
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黄石东贝电器股份有限公司 2013 年年度报告
IV. Report of the Board of Directors
I.Discussion and analysis of the Company's operation in the report period by the board of directors
Under the condition of macroeconomic recession and increasingly drastic competition in industry, the
company has seized the market focused on the oriented product of efficient and ultra-efficient
compressor, firstly become the largest supplier of Haier, and is respectively granted ―Appliance Core
Award‖ of China Household Electrical Appliances Association (CHEAA), ―The Best Supplier‖ of
Turkey Arcelik, ―Strategic Core Supplier‖ in America and other honors in 2013. Over the past year, in
the situation of slow recovery of global economy and sluggish growth of domestic economy, the
company has still insisted on struggling, improving and striving to enhance its competitiveness.
Therefore, the growth in the disadvantage condition has been achieved for the core industry of
compressors of the company, and the production and sales of the oriented product of ―Donper‖
compressor have consecutively ranked in the first for nine years in the country.
(1) Production and operation
In the report period, the Company earned operating income of RMB 4.264 billion, which
increased by 3.60% year on year. Its operating profit was RMB 153.22 million. which increased by
33% year on year. The compressor output was 24.41 million. which increased by 20.57% year on year.
The compressor sales was 24.02 million , which increased by 20.02% year on year.
(2) In the year, the Company focused on the following work:
(1) Develop the main industry market and strive to achieve the rapid growth in China and abroad
In 2013, the company has paid close attention to international and domestic markets, and timely
adjusted the marketing strategy along the front of the market according to the changes in the market
demand. For the domestic market, the company has grasped the opportunity of energy saving and
benefiting policy, adjusted and optimized the product structure for all the users and made high
efficiency and large-sized sales having an increase of 38% and 32% compared with the last period. In
terms of the market segments, the company has further consolidated the strategic customers, actively
developed medium and small enterprises of household electrical appliances around Yangtze River
Delta and Pearl River Delta, implemented the differentiated marketing strategy, expanded the market
share gap, and developed 32 new customers. For the international market, the company has further
consolidated the strategic customers in Asia, Europe and America, mainly developed some large
customers with strong risk-resisting abilities and the market gap in Eastern Europe, built new R&D
center in Italy, set up the office in Egypt, laid the solid foundation for the development of international
market, and yearly exported the compressors of 4.35 million sets, with an increase of 13.1% compared
with the previous year.
(2) Focus on the technological innovation and strive to improve the core competitiveness of
enterprise.The company has relied on state-level enterprise technical centers, research and
development centers in Europe, academician workstations and post-doctoral workstations, and
strengthened the cooperation with universities and research institutions at home and abroad to focus
on the R&D of compressors of high-efficiency, frequency-convert, and new materials
manufactured.The Efficiency ratio of ultra-efficient compressors in L series have reached the
advanced level of the world, while the compressors of the energy conservation and material saving of
A series have been further perfected on the development of high-efficiency while small-sized model,
and have been realized the large-scale selling. In 2013, the identification for 32 samples and 22
product appraisement has been finished. Until now, the company owns 268 technical patents,
including 14 invention patents, 209 new utility patents and 45 appearance patents.
(3) Integrate various resources and improve the operational efficiency
In 2013, the company has implemented the strategy of ―Strengthening Enterprises through Talent‖,
introduced various technical experts, and cultivated the first Post-Doctor Fellow from the
Post-Doctoral Research Center. At the same time, the company has formulated the talent motivation
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黄石东贝电器股份有限公司 2013 年年度报告
policy, recognized the first skilled, professional and superior junior employees as the senior talent of
enterprise, improved and widen the pathway to promote for employees. In 2013, the company has
continuously developed the excellent performance management, continually implemented the perfect
production and various labor competitions, sustained to improve the motivation and creativity of
employee, and refined the management. To take full advantage of existing technology, personnel,
marketing, equipment and other resources, and improve the usage of resources and the efficiency of
management, the company has conducted the effective integration for all resources of bases, made the
production organization more scientific and rational, with an increase of 17% for the production
efficiency. Also, the occupation of funds has dramatically declined, and the inventory turnover has
been improved.
(I) Analysis on principal Business
1. Sheet of change analysis of relevant items of profit statement and cash flow statement
In RMB
Amount in this Amount in last
Subject Proportion（%）
period period
Business income 4,264,031,820.89 4,115,881,689.22 3.60
Business cost 3,722,178,577.67 3,601,140,046.86 3.36
Sales expenses 94,364,407.59 87,836,539.81 7.43
Administrative expenses 276,766,392.41 217,671,475.97 27.15
Financial expenses 45,573,451.97 72,505,144.46 -37.15
Cash flow generated by operation
52,733,441.69 323,081,079.29 -83.68
activities, net
Net cash flow generated by investment
-78,134,673.94 -10,807,708.60
activities
Net cash flow generated by financing
-4,242,484.74 -306,929,464.87
activities
R& D expenses 132,294,587.81 127,461,146.03 3.79
2. Earning
(1)Analysis of factors driving the change of business income
In 2013, The Company earned operating income of RMB 4,264,031,820.89. which increased by
3.60% year on year. The amount of income from domestic sales was RMB3,380,959,066.88 , which
increased by 0.85% year on year ,The amount of income from foreign sales was RMB 739,559,909.16.
which increased by 5.97% year on year ,The major factor driving the growth of business income is the
growth of product sales volume.
(2)Analysis of factors affecting product income of the Company mainly engaged in sales of physical
goods
In 2013, The business income of the Company from compressor was RMB3,676,136,257.13 , which
increased by 2.02% year on year. The business income of the company from cast of automobile parts
was RMB 414,903,259.01, which decreased by 1.15% year on year. The business income of the
company from solar water heaters was respectively RMB 29,479,459.90. which increased by 8.43%
year on year.
(3) Major customers
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黄石东贝电器股份有限公司 2013 年年度报告
Items Business income Proportion(%)
Customers1 803,723,943.43 18.85
Customers 2 190,109,699.49 4.46
Customers 3 173,424,852.53 4.07
Customers 4 129,784,097.44 3.04
Customers 5 110,637,834.02 2.59
Total 1,407,680,426.91 33.01
3.Cost
(1)Cost analysis sheet
In RMB
The Status of key business in terms of industry of business
Change of
key
Increase/d
business
ecrease of
On Amount in this Proportion Amount in last profit over
Items key
industry period (%) period the same
business
period of
cost（％）
last year
（％）
Manufactu Cost of key
3,607,966,188.71 96.93 3,548,626,543.62 98.54 1.67
ring business
The Status of key business in terms of production of business
Change of
key
Increase/d
business
ecrease of
On Amount in this Proportion Amount in last profit over
Items key
production period (%) period the same
business
period of
cost（％） last year
（％）
Compress Cost of key
3,221,468,219.29 86.55 3,159,440,503.90 87.73 1.96
ors business
Auto
casting
Cost of key
and 365,059,625.42 9.81 369,405,482.93 10.26 -1.18
business
Compress
ors casting
Solar
Cost of key
water 21,438,344.00 0.58 19,780,556.79 0.55 8.38
business
heater
4.Expenses
The selling expenses for current period were RMB 94,364,407.59, which increased by 7.43% year on
year.which increased mainly due to the increase of transportation expenses with the increase of sales
volume.
The administrative expenses for current period were RMB 276,766,392.41. which increased by
27.15% year on year, mainly due to the Company has increased investment in R&D in the period
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黄石东贝电器股份有限公司 2013 年年度报告
The financial expenses for current period were RMB 45,573,451.97, which decreased by 37.15% year
on year,
Mainly due to the acceleration of funds used to reduce the cash flow, as well as low-cost funding to fi
ght, reduced financing costs.
5.R&D expenditure
(1)R&D expenditure statement
In RMB
R&D expenditure in current period 132,294,587.81
Total R&D expenditure 132,294,587.81
Proportion of total R&D expenditure to net
12.50
assets (%)
Proportion of total R&D expenditure to
3.10
operating income (%)
6.Cash flow
Items 2013 2012 Proportion
Cash flow generated by operation
52,733,441.69 323,081,079.29 -83.68
activities, net
Net cash flow generated by investment
-78,134,673.94 -10,807,708.60
activities
Net cash flow generated by financing
-4,242,484.74 -306,929,464.87
activities
In current period, net cash flows from operating activities were RMB 52,733,441.69, which decreased
by 83.68% year on year, Mainly due to the increase in paying cash to buy merchandise stocking.
In current period, net cash flows from investing activities were RMB-78,134,673.94, which decreased
year on year，Mainly due to the increase of paying cash of purchasing fixed assets and other projects
In current period, net cash flows from financing activities were RMB-4,242,484.74, which increased
year on year ,Mainly due to the increase of loans during this period
(II)The Status of key business in terms of industry of business , production and Area
1.The Status of key business in terms of industry of business and production
In RMB
The Status of key business in terms of industry of business
Increase/de
Increase/de
crease of
crease of Change of
On Income from key Cost of key Gross key
key Gross
industry business business profit（％） business
business profit（%）
turnover
cost（％）
（％）
Manufactu Increased
4,120,518,976.04 3,607,966,188.71 12.44 1.73 1.67
ring by 0.06%
The Status of key business in terms of production of business
Increase/de Increase/de
Change of
On Income from key Cost of key Gross crease of crease of
Gross
production business business profit（％） key key
profit（%）
business business
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黄石东贝电器股份有限公司 2013 年年度报告
turnover cost（％）
（％）
Compresso Increased
3,676,136,257.13 3,221,468,219.29 12.37 2.02 1.96
rs by 0.05%
Auto
casting and Increased
414,903,259.01 365,059,625.42 12.01 -1.15 -1.18
Compresso by 0.02%
rs casting
Solar water Increased
29,479,459.90 21,438,344.00 27.28 8.43 8.38
heater by 0.04%
2.Table of the status of main operation in terms of Area
In RMB
Increase or decrease of rate of profit from
Area Income from operation
operation over the previous year（％）
Domestic sales 3,380,959,066.88 0.85
Foreign sales 739,559,909.16 5.97
(III)Analysis on Assets and liabilities
1.Assets and liabilities statement
In RMB
Changed
Year-end balance Proportion
Name Year-end balance Proportion（%） proportion
in last period （%）
（%）
Long term
share equity 5,579,199.37 0.15 85,938,693.12 2.26 -93.51
investment
Construction
14,031,259.01 0.36 2,704,170.88 0.07 418.87
in progress
Receipts in a
14,762,754.06 0.38 115,050,703.41 3.02 87.17
dvance
Long-term equity investment decrease,
Mainly due to the transfer of equity of Huangshi Dongbei Electromechanical Group Co., Ltd. from Co
ntrolling subsidiary of Wuhu Abaur .
Construction in progress increased,
Mainly due to the casting Luo bridge project
and gold Hill technology projects into infrastructure projects.
Decreased in receipts in advance,Mainly due to Controlling subsidiary Wuhu Abaur transfer RMB
69.30 million balance in advances from Yellowstone property spin-equity in the opening, the equity tr
ansfer of business change procedures were completed in October 2013.
(IV)Analysis of core competitiveness
In the report period, The company's core competitiveness has no significant changes
(V).The investment of the Company
1.Entrusted money management by non-finance companies and derivatives investment
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黄石东贝电器股份有限公司 2013 年年度报告
(1).Entrusted asset management
The Company did not entrust others with asset management in this report period.
(2)Entrusted Loans
The company did not entrust loans in the report period;
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黄石东贝电器股份有限公司 2013 年年度报告
2.Analysis on principal subsidiaries and Mutual shareholding companies
Registered Total assets
capital Shareholding （RMB’0000 Net assets Net profit
Company Name Business Scope (RMB’0000) ratio (%) ） （RMB’0000） （RMB’0000）
Huangshi Dongbei
Electromechanical GroupProduction and sales of solar water
Solar Energy Co., Ltd. heaters 2,486.12 83.03 9770.70 6201.65 530.59
Production and sales of refrigeration
compressor ,
Compressor and
Wuhu Abaur Mechanical &
Electrical Co.,Ltd Electrical Organ casting 5,000.00 75 195948.53 48081.87 8485.14
Casting of small and medium-sized
Huangshi Dongbeicast products, house renting and
Foundry Co., Ltd. parking service. 3,281.41 51.28 41746.69 8168.78 143.91
Sales of Refrigeration Compressor,
Huangshi DongbeiRefrigeration Equipment and Parts ,
International Trade Co.,Photoelectric products and solar water
Ltd. heater ,etc. USD 1 million 100% 1681.24 625.02 50.83
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黄石东贝电器股份有限公司 2013 年年度报告
3.Projects invested with the non-raised capital
In RMB
Amount
Amount
Total invested in
Name Project progress accumulatively Earnings
investment the reporting
invested
year
Because of the early Eg
The
yptian
Invested in Egypt
political crisis, the Egy
compressor
ptian investment acquis
project
ition project suspend
On January 10, 2011，The first provisional shareholders' general meeting of the Company in 2011
examined and adopted the Proposal for Investing Compressor Project in Egypt, The Company plans to
establish Dongbei (Egypt) Electromechanical Co., Ltd. in Egypt to acquire the operating assets of
Egypt MCMC Company (a compressor manufacturer in Egypt) and build it into a production base for
developing overseas market, Since 2011, because Egyptian domestic political instability, the project
has not been substantive input by the company
II.Explanation of the Board of Directions Concerning the ― non-standard audit report‖ issued by the
CPAs firm for the reporting period.
(1) Explanation of the Board of Directions and Supervisory Committee Concerning the ― non-standard
audit report‖ issued by the CPAs firm for the reporting period.
√Not applicable
(II) Explain and analyse the change and effects of the accounting policy, accounting estimate and
measurement methods.
√Not applicable
(III)Explain retrospective restatement due to correction of significant accounting errors in the
reporting period.
√Not applicable
III.The proposal of profit distribution or conversion of the capital reserve into share capital
(1)Formulation, implementation or adjustment of cash dividend policy
According to the Notice of Further Implementing the Matters Concerning Distribution of Cash
Dividends by Listed Companies (Zheng Jia Fa (2012) No. 37 Document) issued by CSRC on May 4,
2012 and the requirements of Hubei Securities Regulatory Bureau and Shanghai Stock Exchange, the
sixth meeting of the fifth board of directors of the Company held on October 26, 2012 examined and
adopted the proposal for implementing the dividend distribution document of CSRC and revising the
clauses of the Articles of Association of the Company in respect of profit distribution. The adoption of
this proposal perfected the Company's profit distribution policy, improved the transparency of profit
distribution, protected public investors' lawful rights and interests and enhanced the level of the
Company's overall standardized operation. This proposal was examined and adopted at the second
provisional shareholders' general meeting in 2012 held on November 23, 2012.
16
黄石东贝电器股份有限公司 2013 年年度报告
(II)If the Company makes profit in the report period and the undistributed profit for the parent
company is positive but the Company fails to make a preplan for cash dividend distribution, the
Company shall disclose the reasons for such failure and the use and use plan of undistributed profit in
detail.
√Not applicable
(III)The Company's plan for preplan for profit distribution or capitalization of capital surplus for the
recent three years (including the report period)
In RMB
Year Ratio of net
Number of Net profit
profit
shares for attributable to
attributable
Number of Amount of every 10 Amount of shareholders
to
bonus shares dividends shares after cash bonus of listed
shareholders
for every 10 for every 10 capital (Included company in
of listed
shares shares surplus tax) consolidated
company in
capitalizatio statement of
consolidated
n bonus year
statement
2013 0 1 0 23,500,000 93,824,776.19 25.05
2012 0 0 0 0 60,515,708.87
2011 0 0 0 0 44,933,406.39
17
黄石东贝电器股份有限公司 2013 年年度报告
V. Important Events
I Major lawsuits ,Arbitration affairs and Query form media
In the reporting year, the Company had never been involved in any material lawsuit ,arbitration and
Query form media.
.
II.Particulars of fund occupation and progress of debt repayment in the report period
√Not applicable
III. Matters concerning bankruptcy and reorganization
In the report year, the Company was not involved in matters concerning bankruptcy or reorganization.
IV.Asset transactions or enterprise merger
1. The Company's acquisition or disposal of assets or enterprise merger have been disclosed in
provisional announcements and there has been no change of subsequent implementation
Summary and type of matters Inquiry indexing
Refer to the website of Shanghai Stock Exchange：
1. April 24, 2013, Announcement of Resolutions of the 7th
meeting of the fifth board of directors of
Huangshi Dongbei Electrical Appliance Co., Ltd. No.:201
3-008.
2. August 13, 2013, Announcement of Resolutions of the
The proposal for the disposal of certain idle as first Provisional of the Meeting of the board of directors
sets of
Huangshi Dongbei Electrical Appliance Co., Ltd. No.:201
3-008.
3.August13,2013,The proposal for the disposal of certain i
dle assets as well as Announcement of Related
Transaction of
Huangshi Dongbei Electrical Appliance Co., Ltd. No.:201
3-009.
Refer to the website of Shanghai Stock Exchange：
The Announcement about the change of busin
ess controlling shareholder equity transfer is c October 31, 2013，The Announcement
ompleted of Huangshi Dongbei Electrical App about the change of business controlling shareholder equit
liance Co., Ltd. y transfer is completed of Huangshi Dongbei Electrical A
ppliance Co., Ltd.No.: 2013-011.
V.Implementation and its influence of equity incentive plan
√Not applicable
VI.Material related transactions
(I) Asset acquisition and disposal related transactions
1.Matters that have been disclosed in provisional announcements and there has been no change or dev
18
黄石东贝电器股份有限公司 2013 年年度报告
elop of subsequent implementation.
Summary of matters Inquiry indexing
Refer to the website of Shanghai Stock Exchange：
1. December 20, 2013 ， Announcement of
Resolutions of the third Provisional of the Meeting
of the board of directors of
The Huangshi Dongbei Electrical Appliance Co., Ltd. N
Proposal of the purchase of commercial housing. o.:2013-014.
2. December 20, 2013, The
Proposal of the purchase of commercial housing as
well as related Transactions of
Huangshi Dongbei Electrical Appliance Co., Ltd.No
.:2013-013.
VII. Significant contracts and the status of their performance
(1)The trust, contracting and renting matters
√Not applicable
19
黄石东贝电器股份有限公司 2013 年年度报告
(2). Particulars of guarantee
In RMB’0000
Particulars about the external guarantee of the Company(Barring the guarantee for the controlling subsidiaries)
Occurre
Name nce Guara
of Amo date Guara Wheth Whether
ntee Whether
ntee guarantee whether Relations
guarant warra unt of (date of the Type of er Guarantee provided
Relation the exceed the anti-guarantee exist hip
ee ntee guara agreem startin expirat guarantee termin delinquency demurrage
or not
to related
target ntee ent ion ated parties
g date date
date
signing
)
Huang
Huangsh shi
i Dongb
Dongbei ei Janua Janua Guarantee Controlli
Electrica The Electr with joint ng
l Company omech 1,000 ry 24, ry 24, responsibili No No No Yes sharehold
Applianc anical 2013 2014 ty ers
e Co., Group
Ltd. Co.,
Ltd.
Huang
Huangsh shi
i Dongb
Dongbei ei Marc Marc Guarantee Controlli
Electrica The Electr with joint ng
l Company omech 1,000 h 13, h 12, responsibili No No No Yes sharehold
Applianc anical 2013 2014 ty ers
e Co., Group
Ltd. Co.,
Ltd.
Huangsh Huang Contral
i shi subsidia
April April Guarantee
Dongbei Dongb
The with joint ry of
Electrica
Company
ei 1,000 26, 26, responsibili No No No Yes
l Electr the
2013 2014 ty
Applianc omech parent
e Co., anical compan
20
黄石东贝电器股份有限公司 2013 年年度报告
Ltd. Group y
Co.,
Ltd.
Huangsh Huang control
i shi subsidia
Dongbei Dongb June2 Guarantee
June2 ry of
Electrica The ei 0, with joint
l Company Refrig 1,000 0,20 responsibili No No No Yes the
201
Applianc erating 14 ty parent
3
e Co., Co., compan
Ltd. Ltd. y
Huangs
Huan
hi
gshi Control
Dongbe
Dong subsidia
i Septe Septe Guarantee
The bei ry of
Electric mber mber with joint
Compan Refri 1,000 No No No Yes the
al 4, 4, responsibi
y gerati parent
Applia 2013 2014 lity
ng compan
nce
Co., y
Co.,
Ltd.
Ltd.
Huangs
Huan
hi
gshi Control
Dongbe
Dong subsidia
i Dece Dece Guarantee
The bei ry of
Electric mber mber with joint
Compan Refri 1,000 No No No Yes the
al 3, 2, responsibi
y gerati parent
Applia 2013 2014 lity
ng compan
nce
Co., y
Co.,
Ltd.
Ltd.
Total amount of guarantee in the report (Barring the
6,000
guarantee for the controlling subsidiaries)
Total balance of guarantee in the report(A)(Barring the
6,000
guarantee for the controlling subsidiaries)
Guarantees provided by the Company to its controlled subsidiaries
21
黄石东贝电器股份有限公司 2013 年年度报告
Total amount of guarantees provided to subsidiaries in the
82,569
report period
Total balance of guarantees provided to subsidiaries at the
47,707
end of the report period(B)
Total amount of guarantees provided by the company (including the guarantees provided to controlled subsidiaries)
Total amount of guarantee（A+B） 53,707
Proportion of the total guarantee in the net assets of the
59.85
Company(%)
Of which ：
Guarantees provided to the shareholders, substantial
6,000
controllers and the related parties（C）
Guarantees provided to objects with over70%in
53,707
liability/capital rate, directly or indirectly（D）
Amount of guarantee over 50％ of the net asset（E） 8,835.4
Total of the above 3*（C+D+E） 53,707
22
黄石东贝电器股份有限公司 2013 年年度报告
(3)Other Significant of contracting
The Company was not involved in contracted business in this report period.
VIII. Performance of commitments
√Not applicable
IX. Engagement or dismissal of certified public accountants' firm
In RMB
Whether change certified public
No
accountants' firm:
Original appointed Now appointing
Domestic certified public
Daxin Certified Public Daxin Certified Public
accountants engaged by the
Accountants Co., Ltd.(LLP) Accountants Co., Ltd.(LLP)
Company
Remuneration for the domestic
certified public accountants 45 45
Recompense by the Company
Time for the domestic certified
public accountants serves by the 13 13
company
Name Recompense Name
Daxin Certified Public
CPAs firm for the internal control 15
Accountants Co., Ltd.(LLP)
X. Penalty to the Company and its directors, supervisors and senior executives, shareholders holding
over 5% of total shares, actual controller or buyer and particulars about rectification
In the report period, the Company and its directors, supervisors and senior executives, shareholders
holding over 5% of total shares, actual controller or buyer were not subject to investigation,
administrative penalty and public reprimand by CSRC or public condemnation by stock exchange.
XI.Other important events Notes.
The Company had no other important events in the report period.
23
黄石东贝电器股份有限公司 2013 年年度报告
VI. Particulars about Changes in Share Capital and Shareholders
I. The changes in share capital
(1) The changes in share capital
1.The changes in share capital
In shares’0000
Before the
Increase or decrease this time (+/-) After the change
change
Quanti proport Share Bon Capitaliz oth Quanti proport
ty ion allotme us ation of er Sub ty ion
nt shar common tota
es reserve l
fund
I. Share with conditional
12,000 51.06 12,000 51.06
subscription
1.State-owned shares
2.State-owned legal
11,760 50.04 11,760 50.04
person shares
3.Other domestic shares 240 1.02 240 1.02
Of which ： Non-state
owned domestic legal 240 1.02 240 1.02
person shares
Domestic natural person
shares
4.Foreign shareholding
Of which：Foreign legal
person shares
Foreign natural person
shares
II. Shares with
unconditional 11,500 48.94 11,500 48.94
subscription
1.Common shares in
RMB
2.Foreign shares in
11,500 48.94 11,500 48.94
domestic market
3.Foreign shares in
overseas market
4.Other
III. Total of capital
23,500 100 23,500 100
shares
（II）Change in conditional shares
The Company has not changed in conditional shares of the Report period .
II． Issue and listing of shares
(1) The issue of shares in the previous three years
In the latest three years, the Company issued neither new share nor derived securities.
(2) Change of total shares, shareholder structure and assets and liabilities structure of the Company
24
黄石东贝电器股份有限公司 2013 年年度报告
In the report period, there was no change of total shares or shareholder structure caused by distribution
of bonus shares, rights issue, etc.
(3) Existing staff shares
At the end of the report period, the Company did not have staff shares.
III．Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Shares
Total shareholders at the
end of the 5th day from the
Total shareholders in the reporting period 19,583 19,347
date of disclosing the
annual report
Particulars about the shareholding of the top ten shareholders
Increase
Share Total Quantity of Quantity of
Properties of or
Shareholder name propor quantity of Conditional Pledged or
shareholder decrease
tion % shares held shares held frozen shares
in the year
Huangshi Dongbei State-owned
Electromechanical legal 50.04 117,600,000 0 117,600,000 No
Group Co., Ltd. person
Domestic
Unkno
Sun Menglin natural 1.20 2,809,283 -51,678 未
wn
person
Domestic
Unkno
Hu Jiaying natural 0.44 1,025,136 1,025,136 未知
wn
person
Domestic
Changzhou Zhongke
Non-State-o
Electric manufacture 0.34 800,000 0 800,000 No
wned legal
Co., Ltd.
person
Domestic
Unkno
Chen Lei natural 0.26 609,358 413,778 未知
wn
person
Domestic
Unkno
Wang Yujie natural 0.21 484,000 27,000 未知
wn
person
SHENYIN WANGUO
Foreign Unkno
NOMINEES (H.K.) 0.18 428,000 138,000 未知
Legal person wn
LTD.
Domestic
Unkno
Zhang Zhiping natural 0.18 422,500 419,500 未知
wn
person
CORE
PACIFIC-YAMAICHI Foreign Unkno
0.18 412,000 412,000 未知
INTERNATIONAL(H Legal person wn
K) LIMITED-CLIENT
25
黄石东贝电器股份有限公司 2013 年年度报告
A/C
Domestic
Unkno
Jiang Zhongfa natural 0.17 400,000 0 未知
wn
person
Shareholding of top 10 shareholders of unrestricted shares
Quantity of
Name of the shareholder Type and Quantity of shares
unrestricted shares held
Foreign shares placed in domestic
Sun Menglin 2,809,283
exchange
Foreign shares placed in domestic
Hu Jiaying 1,025,136
exchange
Foreign shares placed in domestic
Chen Lei 609,358
exchange
Foreign shares placed in domestic
Wang Yujie 484,000
exchange
SHENYIN WANGUO NOMINEES (H.K.) Foreign shares placed in domestic
428,000
LTD. exchange
Foreign shares placed in domestic
Zhang Zhiping 422,500
exchange
CORE PACIFIC-YAMAICHI
Foreign shares placed in domestic
INTERNATIONAL(HK) 412,000
exchange
LIMITED-CLIENT A/C
Foreign shares placed in domestic
Jiang Zhongfa 400,000
exchange
Foreign shares placed in domestic
Ma Limei 320,656
exchange
Foreign shares placed in domestic
Qin Weiqi 311,100
exchange
IV.Brief introduction of the controlling shareholder and actual controller
(1) The controlling shareholder
1. Legal
In RMB’0000
Huangshi Dongbei Electromechanical Group Co.,
Name
Ltd
Legal representative Yang Baichang
Date of Establishment January 18,2002
Organization Code 73683763-9
Registered Capital 24,184.29
Production and sales of refrigerating compressors
Main business and electrical motors of compressors, development
and consultation of high-tech products.
(2) Actual controller
1.Legal
In RMB billion
Name China Orient Asset Management Company
26
黄石东贝电器股份有限公司 2013 年年度报告
Legal representative Zhang Zhiai
Registered Capital 10
Acquisition, Manage and disposal of Bad assets of
Main business
financial institution
2.The block diagram of the property right and control relationship between the Company and the
actual controller
V. Other corporate shareholders holding over 10% of total shares of the Company
As of the end of the report period, the Company did not have other shareholders who held above
10% shares.
VII.Particulars about Directors, Supervisors, Senior Executives and Employees
1.Change of shareholding and particulars about remuneration
27
黄石东贝电器股份有限公司 2013 年年度报告
(I) The change of shareholding of directors, supervisors and senior executives who currently hold their posts or left their posts in the report period and
particulars about their remuneration
In share
The total amount
Begin Share The total
Shares Increase or of remuneration
ning Expiratio s held received from the remuneration from
held at decrease in the
date n date of at the Reason of shareholder or other
Name Position Sex Age the amount of Company in the
of office year- the change related -parties in the
year-e shares for the report period
office term begin report period
nd year (RMB’0000)
term ning (RMB’0000)
（Before tax）
Chairman
Yang May
of the May 27,
Baicha Male 59 28, 0 0 0
board of 2014
ng 2011
directors
Zhu May
May 27,
Jinmi Director Male 51 28, 0 0 0
2014
ng 2011
May
Fang Director May 27,
Male 50 28, 0 0 0 45.35
Zeyun and GM 2014
2011
Liao May
May 27,
Hangan Director Male 51 28,
2014
0 0 0
g 2011
Director
May
Cao and May 27,
Male 59 28, 0 0 0 25.13
Lijian Deputy 2014
2011
GM
Ruan May
May 27,
Zhengy Director Male 44 28, 0 0 0
2014
a 2011
May
Yu Independe May 27,
Male 49 28, 0 0 0 5
Yumiao nt director 2014
2011
May
Zhao Independe May 27,
Male 60 28, 0 0 0 5
Dayou nt director 2014
2011
28
黄石东贝电器股份有限公司 2013 年年度报告
Lu May
Independe May 27,
Yanyin Female 55 28, 0 0 0 5
nt director 2014
g 2011
May
Jiang May 27,
Supervisor Male 46 28, 0 0 0
Min 2014
2011
Wang May
May 27,
Huashe Supervisor Male 35 28, 0 0 0 14.55
2014
ng 2011
May
Jiang May 27,
Supervisor Male 38 28, 0 0 0 14.55
Zhian 2014
2011
Deputy
GM and May
Lu May 27,
Secretary Female 44 28, 0 0 0 23.34
Lihua 2014
to the 2011
Board
May
Hu DeputyG May 27,
Male 42 28, 0 0 0 25.13
Bing M 2014
2011
Guo May
DeputyG May 27,
Shuiqu Male 62 28, 0 0 0 9.84
M 2014
an 2011
May
Huang DeputyG May 27,
Female 36 28, 0 0 0 24.56
Bo M 2014
2011
Total / / / / / 0 0 0 / 197.45
29
黄石东贝电器股份有限公司 2013 年年度报告
Yang Baichang: He served as board chairman and President of Huangshi Dongbei Electromechanical
Co., Ltd.From 2002 to May 2010, And he served as Board Chairman of Huangshi Dongbei
Electromechanical Group Co., Ltd.and board chairman of the Company since May 2010.
Zhu Jinming: He has served as director and Vice president Manager of Huangshi Dongbei
Electromechanical Co., Ltd.From 2002 to May 2010, and he served as Director and President of
Huangshi Dongbei Electromechanical Group Co., Ltd.and Director of the Company since May 2010.
Fang Zeyun: He served as Deputy General Manager of Huangshi Dongbei Electrical appliance Co.,
Ltd.and he served as general manager of Huangshi Dongbei Refrigeration Co., Ltd.. and now acts as
director and General Manger of the Company.
.Liao Hangang：He served as board secretary of the Company, He now served as Director of the
Company and Assistant President of Huangshi Dongbei Electromechanical Co., Ltd.
Cao Lijian：He served as Director of Technical innovation Dept , Director of Technical Development
Dept , Assistant general manager of Huangshi Dongbei Electrical Appliance Co., Ltd .and now served
as Director and Deputy General manager of the Company.
Ruan Zhengya: He served as general manager of Changzhou Luoke Electric Co., Ltd.since 2004, He
was served as director of the company since May 2008.
Yu Yumiao:He served as professor and Doctor tutor of the Economic and Management faculty
accounting department of Wu Han University since 2004, he was employed as independent director of
the Company since May 2008.
Zhao Dayou: He now serves as director of Tourism Planning, Research and Development Center of
Three Gorges University, deputy director of Three Gorges Culture, Economy and Social Development
Research Center of Hubei University Culture and Social Science Key Research Base, member of
Yichang City Planning Commission and Yichang CPPCC, technical consultant of People's
Government of Xiling District, part-time professor of Chongqing Three Gorges College and academic
pacesetter of Three Gorges University for regional economy. He now served as Independent director
of the Company.
Lu Yanying:：She served as Teacher of School of Management, Huazhong University Of Science &
Technology and School of Management, Wuhan University of Hydraulic and Electrical
Engineering,and now acts as professor of Economics and Management School of Wuhan University .
She served as Independent Director of the Company since May 2011.
Jiang Min：He served as Director of Financial Department of Huangshi Dongbei Electromechanical
Group Co., Ltd., and now acts as assistant president of Huangshi Dongbei Electromechanical Group
Co., Ltd，He served as Supervisor of the Company since May 2011.
Wang Huasheng：He served as Manager of Manager's Office from 2004 to March 2008, He served as
supervisor of the Company since June 2006.He now served as Manager of Manager’s Office of
Wuhu Abaur Mechanical & Electrical Co.,Ltd
Jiang Zhian: ： He served as director of process workshop of
Wuhu Abaur Mechanical & Electrical Co.,Ltd . He now served as director of workshop of Huangshi
Dongbei Electrical Appliance Co., Ltd., He served as supervisor of the Company since May 2011.
Lu Lihua : She served as Director of Financial Department of Huangshi Dongbei Electrical Appliance
30
黄石东贝电器股份有限公司 2013 年年度报告
Co., Ltd since 2005, She now served as Assistant General Manager and Secretary to the Board of the
Company.
Hu Bing：He served as assistant General manager of Wuhu Abaur Mechanical & Electrical Co.,Ltd
And Assistant General Manager of Huangshi Dongbei Electrical Appliance Co., Ltd ,He now served
Deputy general manager of the company.
Guo Shuiquan：He served as department Deputy manager and Manger of Wuhan Office of China
Orient Asset Management Company ,He was employed as Deputy general manager of the Company
since October 25, 2006.
Huang Bo：He served as director of Manager office, Manager of Purchasing Dept and Assistant
General Manager of Huangshi Refrigerating Co., Ltd from 2005 to March 2008, He worked of the
Company from 2005 to now, He served as director of Quality and Assistant General Manager ,He now
served as Deputy general manger of the Company.
II.Particulars about duty performance of directors, supervisors and senior executives who currently
hold their posts or left their posts in the report period
(1) Posts held at corporate shareholders
Name of corporate Starting date of term of Expiry date of term of
Name Position
shareholder office office
Yang
Dongbei Group Board chairman
Baichang
Zhu Jinming Dongbei Group President
Board secretary
Liao Hangang Dongbei Group and Assistant
president
Jiang Min Dongbei Group Assistant president
(2).Posts held at other units
Name of other Starting date of term Expiry date of term of
Name Position
units of office office
Changzhou
Ruan Zhengya Luoke Electric General Manager
Co., Ltd.
China Orient
Asset Manager of
Guo Shuiquan Management Department
Company
.Wuhan office
Accounting
Wuhan professor of
Yu Yumiao
University economics and
management
Angel Yeast Co., Independent
Ltd. Director
Huitian
Adhesive Independent
Industry Co., Director
Ltd.
Jingshan Light Independent
31
黄石东贝电器股份有限公司 2013 年年度报告
Industry Director
Machinery Co.,
Ltd
Three Gorges
Zhao Dayou Professor
University
Planning,
Research and
Development
Director
Center of Three
Gorges
University
Accounting
Wuhan professor of
Lu Yanying
University economics and
management
Jinglun Independent
Electronic Director
Wuhan
XinhuaYangsh Independent
eng Biology Director
Co., Ltd.
III. Remuneration of directors, supervisors and senior executives
The decision-making
procedure for remuneration
The shareholders' general meeting decided the remuneration .
of directors, supervisors
and senior executives:
The determine of According to the Dongbei B senior management compensation management
remuneration of the basis practices, the formation of a resolution submitted by the Remuneration Com
of directors, supervisors mittee of the Board, the final resolution was made by the shareholders' meeti
and senior executives ng
Total actual remuneration
of all directors, supervisors Refer to the chapter I,(1) The change of shareholding of directors, supervisors
and senior management in and senior executives who currently hold their posts or left their posts in the
the end of the report report period and particulars about their remuneration
period.
IV. Change in directors, supervisors and senior executives
Directors, supervisors and senior executives of the Company were in office and had on changes in
reporting period.
V. The structure of employees in the parent Company and the principal subsidiaries
(1)Particulars of Employees
The number of employees in the parent Company 2,987
The number of employees in the principal
980
subsidiaries
Total 3,967
Parent Company and subsidiaries are required to
242
bear the costs of retired employees.
Divided by function
32
黄石东贝电器股份有限公司 2013 年年度报告
Type Person
Production personnel 3,133
Sales personnel 60
Technical personnel 401
Financial personnel 31
Administrative personnel 342
Total 3,967
Education status
Type Total（Person）
Junior college and above 1,230
Technical secondary shool and Senior High School 2,737
Total 3,967
(2) Remuneration policy
According to business development of company status, developed a level of remuneration and benefits
policies that adapted to the development stage, is committed to create a happy life for the employees.
(3) Training plan
Staff training is divided into two blocks:
1. pre-job training: training new employees to achieve three level training
So that new employees are familiar with and agree with the corporate culture to adapt to work as soon
as possible.
2.job training: to carry out a variety of training in accordance with the annual training plan
Enhance staff skills and qualities to ensure that employees complete tasks.
(4)Staffs’ Professional Structure Chart：
(5)Staffs’ Education Background Structure Chart：
33
黄石东贝电器股份有限公司 2013 年年度报告
34
黄石东贝电器股份有限公司 2013 年年度报告
VIII. Company Administration Structure
1.Particulars about corporate governance and insider registration and management
During the report period, the company has strictly fulfilled the requirements of ―Corporate Law‖,
―Securities Law‖, ―Articles of Association‖, China Securities Regulatory Commission, Shanghai
Stock Exchange, the relevant laws and regulations and the regular documents, continuously improved
the corporate governance structure, strengthened the information disclosure, standardized the
company’s operation, and enhanced the governance level of the company. The shareholders meeting,
the Board of Directors, the Supervisor Committee and the management of the company shall have
clear rights and duties, and the corporate governance structure of the company has basically met the
modern enterprise system and the requirements of ―Governance Rules of Listed Companies‖. To
continually strengthen the relevant standard governance, the company has issued ―Annual Evaluation
Report of Internal Control for Dongbei B Shares in 2012‖, ―Audit Report of Internal Control for
Dongbei B Shares‖, ―Management Method of Foreign Investment for Dongbei B Shares‖ and other
series of standard governance system of the company according to the relevant laws and regulations of
China Securities Regulatory Commission and Shanghai Stock Exchange.
The company has abided by ―Registration and Filing System on Learners of Inside Information for
Dongbei B Shares‖, ―Confidential System of Inside Information for Dongbei B Shares‖ and
―Registration and Management System on Learners of Inside Information for Donper B Shares‖ to
conscientiously do the registration and record on learners of inside information well, and timely fill in
the registration form of inside information learners. Also, the company has arranged the relevant
personnel to systematically learn above documents to improve everyone’s sense of confidentiality.
2. Brief Introduction of Shareholders' General Meeting
Name and
Date of Description of layout of
Matter Resolution Disclosure date
Meeting proposals newspapers for
publishing
2012 The statement
Shareholders’ of Shareholder
May 24, 2013 Adoption www.sse.com.cn April 26, 2013
general s' General Mee
meeting ting
1.To examined the Proposal for the Work Report of the Board of Directors For 2012;
2. To examined the Proposal for the work Report of the Supervisory Committee for 2012;
3. To examined the Proposal for the annual report for 2012 and its summary;
4. To examined the Proposal for the Final Accounting Report for 2012;
5. To examined the Proposal for the Preplan for Profit Distribution for 2012;
6. To examined the Proposal for Renewing the Engagement of Certified Public Accountants and the
Proposal for Internal Audit Institution;
7. To examined the Proposal Concerning the Credit Line for the Company for 2013;
8. To examined the Proposal Concerning Guarantee Provided by the Company in 2013;
9.To examined the Proposal for The information of Daily Related Transactions of 2012 and Announcement of
Expected Daily related transactions in 2013;
10.Examination of the proposal of the 2012 Annual Report of the Independent Directors' Work
3. Routine work of the board of directors
(1). Board meetings and resolutions
Whether Attenda
Name the Attendance of board meetings nce of
independ the
35
黄石东贝电器股份有限公司 2013 年年度报告
ent sharehol
directors ders’
general
meeting
Whether
on the
reasons
Number why not The
The of personall attendanc
Attendan
supposed Attendan meetings y attend e record
ce of
times of ce in attendanc Absence the
through
attendanc person e by (times) meeting sharehold
agent
e this (times) means of of the ers’
(times)
year communi board of general
cation director meeting
for twice
successiv
ely.
YangBai
No 6 6 5 0 No 1
chang
Zhu
No 6 6 5 0 No 0
Jinming
Fang
No 6 6 5 0 No 1
Zeyun
Liao
No 6 6 5 0 No 1
Hangang
Cao
No 6 5 5 1 0 No 1
Lijian
Ruan
No 6 6 5 0 No 1
Zhengya
Yu
Yes 6 6 5 0 No 0
Yumiao
Lu
Yes 6 6 5 0 No 0
Yanying
Zhao
Yes 6 6 5 0 No 1
Dayou
The number of the meetings of the board of
6
directors within the year
Of which: Number of field meetings 1
Number of meetings held by means of
5
communication
(2). The information of the objection made by independent directors to relevant matters of the
Company
In the report period，independent directors of the Company did not make objection to the proposals
examined at board meetings and those not examined at board.
4. Statement of the supervisory committee on the risks faced by the Company
The supervisory committee has no objection to the supervised matters in the report period.
36
黄石东贝电器股份有限公司 2013 年年度报告
5. Particulars about mechanism of appraisal of senior executives and establishment and
implementation of stimulation mechanism in the report period
In the report period, based on sales revenue, profits and other indicators, and completed in accordance
with the actual situation, comprehensive evaluation on the company's senior management. At the same
time as the establishment of an effective incentive and restraint mechanisms to mobilize senior manag
ement enthusiasm for work, improve the management level of enterprises, encourage enterprises to ac
hieve organizational goals and sustainable development, according to the "People's Republic of China
Company Law", "Corporate Governance Guidelines "and other relevant provisions of international la
ws and regulations, combined with the actual situation of the company, developed a" Huangshi Dongb
ei Electrical Appliance Co., Ltd. senior management compensation management Salary Measures. "
The Company conducted comprehensive appraisal of its senior executives according to indicators
including sales income and profit and the actual result. In the future, the Company will unceasingly
improve appraisal and stimulation mechanism according to actual situation. The Company conducted
comprehensive appraisal of its senior executives according to indicators including sales income and
profit and the actual result.
In order to establish an effective incentive and restraint mechanism, mobilize the enthusiasm of the se
nior management, improve the enterprise management level, promote the enterprise to achieve the obj
ectives and sustainable development. According to "People's Republic of China Company Law", "Cor
porate Governance Guidelines" and other relevant international laws and regulations, combined with t
he actual situation of the company, "Huangshi Dongbei Electrical Appliance Co., Ltd. senior manage
ment compensation management approach." was developed.
IX. Internal Control
1. Statement on responsibilities for internal control and particulars about construction of internal
control system
The board of directors of the Company and all directors hereby guarantee that there are no false record,
misleading statement or material omissions in this report and shall assume joint and several liability
for the truthfulness, accuracy and completeness of its contents.
Establishing, improving and effectively implementing internal control system is the responsibility
of the board of directors of the Company. The supervisory committee shall supervise the establishment
and implementation of internal control system by the board of directors. The management shall be
responsible for organizing and leading the daily operation of internal control system of the Company.
The Company's internal control target: To reasonably ensure the lawfulness and conformance of the
Company's operation management, safety of assets, truthfulness and completeness of financial report
and relevant information, improve the Company's management efficiency and effect and help the
Company implement its development strategy.
The Board of Directors has authorized Department of Discipline Inspection, Auditing and Supervision
to be in charge of the specific implementation of evaluation of internal control. To ensure the smooth
progress of the relevant work, the company has set up the leading group and working group for the
evaluation of internal control, where, the leading group is composed of general manager and vice
general manager in charge of Finance, who are responsible for the arrangement, improvement,
communication and coordination of evaluation and the recognition and rectification decision of
defects. Also, the company has established the working group for the evaluation of internal control
composed of Department of Discipline Inspection, Auditing and Supervision, Securities Department
and other personnel of relevant departments, who are in charge of the special implementation of
37
黄石东贝电器股份有限公司 2013 年年度报告
supervision and evaluation of internal control.
The Company established a leading team and a work team for internal control evaluation.
According to the principles, contents, procedures and methods of evaluation and report form specified
in Management Standards of Internal Control Evaluation, the work team formulated work scheme for
internal control evaluation and was responsible for organizing the implementation of internal control
evaluation and evaluating main risk fields and units within the scope of evaluation.
Daxin Certified Public Accountants Co., Ltd.(LLP) audited the internal control of the Company and
issued Auditor's Report on Internal Control.
Refer to the appendix for details of the auditor's report on internal control.
2. Statement on auditor's report on internal control
The Company prepared and disclosed Report on Self-evaluation of Internal Control for 2013.
Hubei Daxin Certified Public Accountants Co., Ltd. audited the internal control of the Company and
issued Auditor's Report on Internal Control. The full text of the said report was published at the
website of Shanghai Stock Exchange (http: / / www.sse.com.cn).
Refer to the appendix for details of the auditor's report on internal control.
3. The system of ascertaining responsibilities for material errors in annual report and the status of its
implementation
In accordance with the relevant requirements stipulated in China Securities Regulatory Commission,
the company has formulated ―Responsibility Claim System on Significant Error of Information
Disclosure in Annual Report‖, and implemented the responsibility claim system for the charger of
information disclosure in annual report to perfect the management of information disclosure and
improve the quality and transparency of information disclosure.
In the report period, the Company did not make material errors of annual report information
disclosure.
X. Financial Report
The Company's annual financial report has been audited by Zhang Ling and Jiang Yanhong, the
certified public accountants of Daxin Certified Public Accountants Co., Ltd.( LLP) and they issued
standard unqualified auditor's report.
I.Auditor’s Report
Auditor’s Report
38
黄石东贝电器股份有限公司 2013 年年度报告
Da Xin Shen Zi (2014)No.: 2-00418
To all shareholders of Huangshi Dongbei Electrical Appliance Co., Ltd.
We audited accompanying financial statements of Huangshi Dongbei Electrical Appliance Co., Ltd.
(hereinafter referred to as "the Company"), including Consolidation and parent Company balance
sheet on December 31, 2013, Consolidation and parent Company profit statement, Consolidation and
parent Company cash flow statement for the year 2013 and Consolidation and parent Company
statement of change in shareholders' equity and the notes to financial statements.
I. Management’s responsibility for the financial statements
Preparation of financial statements in accordance with the Accounting Standards for Business
Enterprises is the responsibility of the management of the Company. Such responsibility
includes:
(1) Prepare the financial statements according to business enterprises regulation, so that making
reasonable accounting estimate;
(2) Design, implementation and maintenance of internal control related to the preparation of
financial statements so that financial statements are free from ma terial misstatement caused by
fraudulent practices or errors.
II. Auditor’s responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our
audit and to report our opinion solely to you, as a body, and for no other purpose. We conducted our
audit in accordance with International Standards on Auditing, Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the
consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the consolidated financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, In making those risk assessments, the auditor considers internal control
relevant to the Group’s preparation and fair presentation of the consolidated financial statements in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Group’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the consolidated
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
III. Opinion
In our opinion, the financial statements of the Company have been prepared in accordance with
the provisions of Accounting Standards for Business Enterprises and give a fair view, in all material
aspects, of the financial position of the Company as at December 31, 2013 and its operating results
and cash flow for 2013.
39
黄石东贝电器股份有限公司 2013 年年度报告
Daxin Certified Public Accountants Co., Ltd. ( LLP)
Chinese C.P.A.: Zhang Ling
Beijing China Chinese C.P.A.: Jiang Yanhong
April 22, 2014
2.Financial Statements (Attached hereinafter)
3..Notes to Financial Statements(Attached hereinafter)
XI. List of Documents Available for Inspection
1. Financial statements bearing the seal and signature of legal representative and financial controller;
2. The original of the auditor's report bearing the seal of the certified public accountants' firm and the
signature of C.P.A.;
3. The original of all the Company's documents and the original manuscripts of announcements
publicly disclosed on the newspapers designated by China Securities Regulatory Commission in the
report period.
Chairman of the board : Yang Baichang
Huangshi Dongbei Electrical Appliance Co., Ltd.
April 24, 2014
40
黄石东贝电器股份有限公司 2013 年年度报告
II.Financial statements
Consolidated Balance Sheet
December 31,2013
Prepared by: Huangshi Dongbei Electrical Appliance Co., Ltd.
In RMB
Items Notes Year-end balance Year-beginning balance
Current asset：
Monetary fund 528,112,035.59 521,359,521.85
Settlement provision
Outgoing call loan
Trading financial assets
Bill receivable 733,301,431.98 657,525,845.38
Account receivable 999,871,333.83 943,995,814.72
Prepayments 127,409,973.54 125,900,657.97
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Interest receivable
Dividend receivable
Other account receivable 10,294,402.66 12,339,013.33
Repurchasing of financial assets
Inventories 528,984,793.37 472,290,956.37
Non-current asset due in 1 year
Other current asset
Total of current assets 2,927,973,970.97 2,733,411,809.62
Non-current assets：
Loans and payment on other’s behalf
disbursed
Disposable financial asset
Expired investment in possess
Long-term receivable
Long term share equity investment 5,579,199.37 85,938,693.12
Property investment 3,876,879.92 4,041,924.08
Fixed assets 816,542,012.66 897,357,746.33
Construction in progress 14,031,259.01 2,704,170.88
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
Intangible assets 75,740,680.14 76,632,250.44
R & D petrol
Goodwill
Long-germ expenses to be amortized 1,031,854.03
Differed income tax asset 6,899,448.19 7,899,319.35
41
黄石东贝电器股份有限公司 2013 年年度报告
Other non-current asset
Total of non-current assets 923,701,333.32 1,074,574,104.20
Total of assets 3,851,675,304.29 3,807,985,913.82
Current liabilities
Short-term loans 682,506,600.00 624,687,160.00
Loan from Central Bank
Deposit received and hold for others
Call loan received
Trade off financial liabilities
Bill payable 736,273,961.21 851,268,224.15
Account payable 940,272,373.02 902,931,397.23
Advance payment 14,762,754.06 115,050,703.41
Selling of repurchased financial
assets
Fees and commissions receivable
Employees’ wage payable 42,108,898.55 38,280,810.34
Tax payable 29,510,041.41 34,494,893.12
Interest payable 960,328.49 1,075,348.55
Dividend payable 10,009,121.12 10,009,121.12
Other account payable 190,061,481.50 139,515,163.73
Reinsurance fee payable
Insurance contract provision
Entrusted trading of securities
Entrusted selling of securities
Non-current liability due in 1 year 122,520,360.00
Other current liability
Total of current liability 2,646,465,559.36 2,839,833,181.65
Non-current liabilities：
Long-term loan 121,440,000.00 1,440,000.00
Bond payable
Long-term payable 20,784,033.34 20,172,708.34
Special payable 5,000,000.00 5,000,000.00
Expected liabilities
Differed income tax liability
Other non-current liabilities
Total of non-current liabilities 147,224,033.34 26,612,708.34
Total of liability 2,793,689,592.70 2,866,445,889.99
Owners’ equity
Share capital 235,000,000.00 235,000,000.00
Capital reserves 190,111,836.26 190,111,836.26
Less：Shares in stock
Special reserves
Surplus reserves 37,944,193.35 36,008,607.48
Common risk provision
Undistributed profit 434,569,646.73 342,680,456.41
Different of foreign currency
-193,065.70
translation
Total of owner’s equity belong to the
897,432,610.64 803,800,900.15
parent company
Minority shareholders’ equity 160,553,100.95 137,739,123.68
42
黄石东贝电器股份有限公司 2013 年年度报告
Total of owners’ equity 1,057,985,711.59 941,540,023.83
Total of liabilities and owners’ equity 3,851,675,304.29 3,807,985,913.82
Legal representative ：Yang Baichang
Person-in-charge of the accounting work：Lu Lihua
Person-in -charge of the accounting organ：Ma Li
Balance sheet of Parent Company
December 31, 2013
Prepared by: Huangshi Dongbei Electrical Appliance Co., Ltd.
In RMB
Items Notes Year-end balance Year-beginning balance
Current asset：
Monetary fund 279,658,871.30 253,364,683.15
Trading financial assets
Bill receivable 258,130,401.42 345,600,983.38
Account receivable 706,933,185.41 689,028,356.67
Prepayments 187,524,627.07 215,084,693.74
Interest receivable
Dividend receivable
Other account receivable 8,403,825.26 9,868,968.85
Inventories 412,601,513.10 329,861,629.59
Non-current asset due in 1
year
Other current asset
Total of current assets 1,853,252,423.56 1,842,809,315.38
Non-current assets：
Disposable financial asset
Expired investment in
possess
Long-term receivable
Long term share equity
62,646,277.60 62,646,277.60
investment
Property investment
Fixed assets 459,862,876.50 512,501,644.76
Construction in progress 7,866,927.30 1,220,538.41
Engineering material
Fixed asset disposal
Production physical assets
Gas & petrol
43
黄石东贝电器股份有限公司 2013 年年度报告
Intangible assets 35,456,430.70 36,592,026.31
R & D petrol
Goodwill
Long-germ expenses to be
amortized
Differed income tax asset 5,958,099.04 6,733,933.94
Other non-current asset
Total of non-current assets 571,790,611.14 619,694,421.02
Total of assets 2,425,043,034.70 2,462,503,736.40
Current liabilities
Short-term loans 429,229,890.00 292,478,300.00
Trade off financial
liabilities
Bill payable 278,227,961.21 515,882,039.69
Account payable 470,193,678.60 453,072,135.26
Advance payment 464,648,456.39 416,427,513.73
Employees’ wage payable 17,205,724.65 18,181,724.65
Tax payable 22,588,647.68 28,874,995.74
Interest payable
Dividend payable
Other account payable 30,550,834.86 41,589,409.75
Non-current liability due in
122,520,360.00
1 year
Other current liability
Total of current liability 1,712,645,193.39 1,889,026,478.82
Non-current liabilities：
Long-term loan 120,000,000.00
Bond payable
Long-term payable 19,737,433.34 20,172,708.34
Special payable
Expected liabilities
Differed income tax
liability
Other non-current
liabilities
Total of Non-current
139,737,433.34 20,172,708.34
liabilities
Total of liability 1,852,382,626.73 1,909,199,187.16
Owners’ equity
Share capital 235,000,000.00 235,000,000.00
Capital reserves 90,801,937.51 90,801,937.51
Less：Shares in stock
Special reserves
Surplus reserves 37,944,193.35 36,008,607.48
Provision of general risk
Undistributed profit 208,914,277.11 191,494,004.25
Total of owners’ equity 572,660,407.97 553,304,549.24
Total of liabilities and
2,425,043,034.70 2,462,503,736.40
owners’ equity
44
黄石东贝电器股份有限公司 2013 年年度报告
Legal representative ：Yang Baichang
Person-in-charge of the accounting work：Lu Lihua
Person-in -charge of the accounting organ：Ma Li
Consolidated Profit Statement
January- December 2013
In RMB
Items Notes Amount in this period Amount in last period
I. Income from the key business 4,264,031,820.89 4,115,881,689.22
Incl：Business income 4,264,031,820.89 4,115,881,689.22
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 4,156,917,715.75 4,003,893,637.86
Incl：Business cost 3,722,178,577.67 3,601,140,046.86
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 16,338,806.29 20,079,175.07
Sales expense 94,364,407.59 87,836,539.81
Administrative expense 276,766,392.41 217,671,475.97
Financial expenses 45,573,451.97 72,505,144.46
Asset impairment loss 1,696,079.82 4,661,255.69
Add：Gains from change of their value
（―-‖for loss）
Investment gain（―-‖for loss） 53,619,106.25 -948,147.10
Incl: investment gains from affiliates
Gains from currency exchange（―-‖for loss）
III. Operational profit（―-‖for loss 160,733,211.39 111,039,904.26
Add：Non-business income 17,583,256.81 17,725,652.38
Less：Non business expenses 25,178,079.66 13,435,950.06
Incl：Loss from disposal of non-current
assets
IV.Total profit(―-‖for loss) 153,138,388.54 115,329,606.58
Less：Income tax expenses 36,499,635.08 11,926,562.60
V. Net profit（―-‖for net loss） 116,638,753.46 103,403,043.98
Net profit attributable to the owners of
93,824,776.19 60,515,708.87
parent company
45
黄石东贝电器股份有限公司 2013 年年度报告
Minority shareholders’ equity 22,813,977.27 42,887,335.11
VI. Earnings per share：
（I）Basic earnings per share 0.399 0.258
(II)Diluted earnings per share 0.399 0.258
VII. Other comprehensive income -193,065.70
VIII. Total comprehensive income 116,530,888.07 103,403,043.98
Total comprehensive income attributable to
93,631,710.49 60,515,708.87
the owner of the parent company
Total comprehensive income attributable
22,813,977.27 42,887,335.11
minority shareholders
Legal representative ：Yang Baichang
Person-in-charge of the accounting work：Lu Lihua
Person-in -charge of the accounting organ：Ma Li
Profit statement of the Parent Company
January-December 2013 In RMB
Items Notes Amount in this period Amount in last period
I. Income from the key business 3,442,662,929.72 3,063,408,638.18
Less：Business cost 3,186,542,998.43 2,794,147,941.04
Business tax and surcharge 4,378,444.73 10,459,890.73
Sales expense 46,570,311.77 48,352,128.95
Administrative expense 150,287,563.96 139,816,429.43
Financial expenses 18,992,150.64 40,217,872.87
Asset impairment loss 891,011.02 3,767,861.66
Add：Gains from change of for value
（―-‖for loss）
Investment gain（―-‖for loss）
Incl: investment gains from affiliates
II. Operational profit（―-‖for loss） 35,000,449.17 26,646,513.50
Add：Non-business income 8,205,664.89 10,766,755.26
Less：Non- business expenses 23,063,170.43 9,008,668.68
Incl：Loss from disposal of non-current
assets
III.Total profit(―-‖for loss) 20,142,943.63 28,404,600.08
Less：Income tax expenses 787,084.90 4,431,665.15
IV. Net profit（―-‖for net loss） 19,355,858.73 23,972,934.93
V. Earnings per share：
（I）Basic earnings per share
(II)Diluted earnings per share
VI. Other comprehensive income
46
黄石东贝电器股份有限公司 2013 年年度报告
VII. Total comprehensive income 19,355,858.73 23,972,934.93
Legal representative ：Yang Baichang
Person-in-charge of the accounting work：Lu Lihua
Person-in -charge of the accounting organ：Ma Li
Consolidated Cash flow statement
January –December 2013 In RMB
Amount in this Amount in last
Items Notes
period period
I.Cash flows from operating activities
Cash received from sales of goods or rending of
3,108,162,316.39 3,220,073,239.44
services
Net increase of customer deposits and capital kept
for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other
financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Tax returned 70,517,904.05 62,816,791.54
Other cash received from business operation 80,104,845.18 57,010,873.94
Sub-total of cash inflow 3,258,785,065.62 3,339,900,904.92
Cash paid for purchasing of merchandise and
2,574,609,794.76 2,530,576,134.01
services
Net increase of client trade and advance
Net increase of savings n central bank and brother
company
Cash paid for original contract claim
Cash paid for interest, processing fee and
commission
Cash paid for policy dividend
Cash paid to staffs or paid for staffs 320,588,279.25 290,071,402.54
Taxes paid 132,742,874.61 88,693,425.57
Other cash paid for business activities 178,110,675.31 107,478,863.51
Sub-total of cash outflow from business activities 3,206,051,623.93 3,016,819,825.63
Cash flow generated by business operation, net 52,733,441.69 323,081,079.29
47
黄石东贝电器股份有限公司 2013 年年度报告
II.Cash flow generated by investing
Cash received from investment retrieving 64,171,600.00
Cash received as investment gains
Net cash retrieved from disposal of fixed assets,
22,306,101.77 1,729,449.21
intangible assets, and other long-term assets
Net cash received from disposal of subsidiaries or
other operational units
Net cash received from disposal of subsidiaries or
69,300,000.00
other operational units
Sub-total of cash inflow due to investment
86,477,701.77 71,029,449.21
activities
Cash paid for construction of fixed assets,
164,612,375.71 48,864,957.81
intangible assets and other long-term assets
Cash paid as investment 32,972,200.00
Net increase of loan against pledge
Net cash received from subsidiaries and other
operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment
164,612,375.71 81,837,157.81
activities
Net cash flow generated by investment -78,134,673.94 -10,807,708.60
III.Cash flow generated by financing
Cash received as investment
Incl: Cash received as investment from minor
shareholders
Cash received as loans 1,807,005,294.00 1,504,776,351.60
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing activities 1,807,005,294.00 1,504,776,351.60
Cash to repay debts 1,751,706,214.00 1,751,840,051.60
Cash paid as dividend, profit, or interests 59,541,564.74 59,865,764.87
Incl: Dividend and profit paid by subsidiaries to
minor shareholders
Other cash paid for financing activities
Sub-total of cash outflow due to financing
1,811,247,778.74 1,811,705,816.47
activities
Net cash flow generated by financing -4,242,484.74 -306,929,464.87
IV. Influence of exchange rate alternation on cash
-193,065.70
and cash equivalents
V.Net increase of cash and cash equivalents -29,836,782.69 5,343,905.82
Add: balance of cash and cash equivalents at the
471,346,311.99 466,002,406.17
beginning of term
VI.Balance of cash and cash equivalents at the
441,509,529.30 471,346,311.99
end of term
Legal representative ：Yang Baichang
Person-in-charge of the accounting work：Lu Lihua
Person-in -charge of the accounting organ：Ma Li
48
黄石东贝电器股份有限公司 2013 年年度报告
Cash flow statement of the Parent Company
January-December 2013 In RMB
Amount in this Amount in last
Items Notes
period period
I.Cash flows from operating activities
Cash received from sales of goods or rending of
1,931,434,656.68 1,900,010,578.68
services
Tax returned 63,311,839.73 56,397,462.22
Other cash received from business operation 22,539,935.22 22,253,137.56
Sub-total of cash inflow 2,017,286,431.63 1,978,661,178.46
Cash paid for purchasing of merchandise and
1,683,951,811.21 1,471,504,813.20
services
Cash paid to staffs or paid for staffs 160,026,575.26 151,937,751.04
Taxes paid 17,952,370.49 19,984,705.07
Other cash paid for business activities 151,883,829.26 68,740,421.66
Sub-total of cash outflow from business activities 2,013,814,586.22 1,712,167,690.97
Cash flow generated by business operation, net 3,471,845.41 266,493,487.49
II.Cash flow generated by investing
Cash received from investment retrieving
Cash received as investment gains
Net cash retrieved from disposal of fixed assets,
22,295,139.06 1,310,045.41
intangible assets, and other long-term assets
Net cash received from disposal of subsidiaries or
other operational units
Other cash receivable for investment activities
Sub-total of cash inflow due to investment activities 22,295,139.06 1,310,045.41
Cash paid for construction of fixed assets,
119,386,737.81 21,886,390.70
intangible assets and other long-term assets
Cash paid as investment 29,972,200.00
Net cash received from subsidiaries and other
operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment
119,386,737.81 51,858,590.70
activities
Net cash flow generated by investment -97,091,598.75 -50,548,545.29
III.Cash flow generated by financing
Cash received from absorbing investment
Cash received as loans 1,378,830,876.00 996,225,975.00
Cash received from bond placing
Other financing –related ash received
Sub-total of cash inflow from financing activities 1,378,830,876.00 996,225,975.00
Cash to repay debts 1,244,599,646.00 1,202,824,125.00
Cash paid as dividend, profit, or interests 32,641,828.34 38,321,413.09
Other cash paid for financing activities
Sub-total of cash outflow due to financing activities 1,277,241,474.34 1,241,145,538.09
Net cash flow generated by financing 101,589,401.66 -244,919,563.09
49
黄石东贝电器股份有限公司 2013 年年度报告
IV. Influence of exchange rate alternation on cash
and cash equivalents
V.Net increase of cash and cash equivalents 7,969,648.32 -28,974,620.89
Add: balance of cash and cash equivalents at the
239,540,473.29 268,515,094.18
beginning of term
VI.Balance of cash and cash equivalents at the end
247,510,121.61 239,540,473.29
of term
Legal representative ：Yang Baichang
Person-in-charge of the accounting work：Lu Lihua
Person-in -charge of the accounting organ：Ma Li
50
黄石东贝电器股份有限公司 2013 年年度报告
Consolidated Statement on Change in Owners’ Equity
January-December 2013 In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Speci
Less: Comm Minor Total of
Items alize
Capital Share Surplus on risk Attributable shareholders owners’
Share Capital d Other
reserves s in reserves provisi profit ’ equity equity
reser
stock on
ve
I.Balance at the end 190,111,836.2 342,680,456.4 137,739,123 941,540,0
235,000,000.00 36,008,607.48
of last year 6 1 .68 23.83
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the
190,111,836.2 342,680,456.4 137,739,123 941,540,0
beginning of current 235,000,000.00 36,008,607.48
6 1 .68 23.83
year
III.Changed in the -193,065.7 22,813,977. 116,445,6
1,935,585.87 91,889,190.32
current year 0 27 87.76
22,813,977. 116,638,7
（I） Net profit 93,824,776.19
27 53.46
（ II ） Other -193,065.7 -193,065.
misc.income 0 70
-193,065.7 22,813,977. 116,445,6
Total of (I) and (II) 93,824,776.19
0 27 87.76
(III) Investment or
decreasing of capital
by owners
1. Capital inputted
by owners
2．Amount of shares
paid and accounted
as owners’ equity
（IV）Profit 1,935,585.87 -1,935,585.87
51
黄石东贝电器股份有限公司 2013 年年度报告
allotment
1.Providing of
1,935,585.87 -1,935,585.87
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to the
owners (or
shareholders)
(V) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves (or
to capital shares)
3．Making up
losses by surplus
reserves.
4. Other
(VI) Special
reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the 190,111,836.2 434,569,646.7 -193,065.7 160,553,100 1,057,985
235,000,000.00 37,944,193.35
end of this term 6 3 0 .95 ,711.59
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Speci Com Total
Less: Minor
Items alize mon of
Capital Shar Surplus Attributable shareholders’
Share Capital d risk Other owners
reserves es in reserves profit equity
reser provi ’ equity
stock
ve sion
52
黄石东贝电器股份有限公司 2013 年年度报告
868,10
I.Balance at the 235,000,000.0 33,710,743.9 284,462,611.0
97,117,562.81 217,818,262.02 9,179.8
end of last year 0 9 3
5
Add：
Retrospective
adjustment
caused by merger
of entities under
common control
Add: Change of
accounting
policy
Correcting of
previous errors
868,10
235,000,000.0 33,710,743.9 284,462,611.0
Other 97,117,562.81 217,818,262.02 9,179.8
0 9 3
5
II.Balance at the
73,430,
beginning of 92,994,273.45 2,297,863.49 58,217,845.38 -80,079,138.34
843.98
current year
103,40
\ III.Changed in
60,515,708.87 42,887,335.11 3,043.9
the current year
8
（I） Net profit
103,40
（ II ） Other
60,515,708.87 42,887,335.11 3,043.9
misc.income 8
-29,97
-122,966,473.4
Total of (I) and (II) 92,994,273.45 2,200.0
5
0
(III) Investment or -29,97
-122,966,473.4
decreasing of 92,994,273.45 2,200.0
5
capital by owners 0
1. Capital inputted
by owners
2 ． Amount of
shares paid and
accounted as
owners’ equity
53
黄石东贝电器股份有限公司 2013 年年度报告
（IV）Profit
2,297,863.49 -2,297,863.49
allotment
1.Providing of
2,297,863.49 -2,297,863.49
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to the
owners (or
shareholders)
4．Other
(V) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves
(or to capital
shares)
3．Making up
losses by surplus
reserves.
4. Other
(VI) Special
reserves
1. Provided this
year
2．Used this term
（VII）Other
941,54
IV. Balance at the 235,000,000.0 190,111,836.2 36,008,607.4 342,680,456.4
137,739,123.68 0,023.8
end of this term 0 6 8 1
3
Legal representative ：Yang Baichang
Person-in-charge of the accounting work：Lu Lihua
54
黄石东贝电器股份有限公司 2013 年年度报告
Person-in -charge of the accounting organ：Ma Li
Statement of change in owner’s Equity of the Parent Company
January-December 2013 In RMB
Amount in this period
Less: Specia Commo
Items Capital Shares lized Surplus n risk Attributable Total of owners’
Share Capital
reserves in reserv reserves provisio profit equity
stock es n
235,000,000.0 90,801,937.5 36,008,607.4 191,494,004.2
I.Balance at the end of last year 553,304,549.24
0 1 8 5
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 235,000,000.0 90,801,937.5 36,008,607.4 191,494,004.2
553,304,549.24
current year 0 1 8 5
III.Changed in the current year 1,935,585.87 17,420,272.86 19,355,858.73
（I） Net profit 19,355,858.73 19,355,858.73
（II）Other misc.income
Subtotal of (I) and (II) 19,355,858.73 19,355,858.73
(III) Investment or decreasing
of capital by owners
1. Capital inputted by owners
2．Amount of shares paid and
accounted as owners’ equity
3. Other
（IV）Profit allotment 1,935,585.87 -1,935,585.87
1.Providing of surplus reserves 1,935,585.87 -1,935,585.87
2.Providing of common risk
provisions
3．Allotment to the owners (or
shareholders)
55
黄石东贝电器股份有限公司 2013 年年度报告
4．Other
(V) Internal transferring of
owners’ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by
surplus reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end of this 235,000,000.0 90,801,937.5 37,944,193.3 208,914,277.1
572,660,407.97
term 0 1 5 1
In RMB
Amount in last year
Less: Specia Commo
Items Capital Shares lized Surplus n risk Attributable Total of owners’
Share Capital
reserves in reserv reserves provisio profit equity
stock e n
I.Balance at the end of last 235,000,000.0 90,613,062.8 33,710,743.9 169,818,932.8
529,142,739.61
year 0 1 9 1
Add: Change of accounting
policy
Correcting of previous errors
Other
II.Balance at the beginning of 235,000,000.0 90,613,062.8 33,710,743.9 169,818,932.8
529,142,739.61
current year 0 1 9 1
III.Changed in the current
188,874.70 2,297,863.49 21,675,071.44 24,161,809.63
year
（I） Net profit 23,972,934.93 23,972,934.93
（II）Other misc.income
Subtotal of (I) and (II) 23,972,934.93 23,972,934.93
(III) Investment or decreasing 188,874.70 188,874.70
56
黄石东贝电器股份有限公司 2013 年年度报告
of capital by owners
1. Capital inputted by owners 188,874.70 188,874.70
2．Amount of shares paid and
accounted as owners’ equity
3. Other
（IV）Profit allotment 2,297,863.49 -2,297,863.49
1.Providing of surplus
2,297,863.49 -2,297,863.49
reserves
2.Providing of common risk
provisions
3．Allotment to the owners (or
shareholders)
4．Other
(V) Internal transferring of
owners’ equity
1. Capitalizing of capital
reserves (or to capital shares)
2. Capitalizing of surplus
reserves (or to capital shares)
3．Making up losses by
surplus reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
（VII）Other
IV. Balance at the end of this 235,000,000.0 90,801,937.5 36,008,607.4 191,494,004.2
553,304,549.24
term 0 1 8 5
Legal representative ：Yang Baichang
Person-in-charge of the accounting work：Lu Lihua
Person-in -charge of the accounting organ：Ma Li
57
黄石东贝电器股份有限公司 2012 年年度报告
Huangshi Dongbei Electrical Appliance Co., Ltd.
Notes to Financial Statements
（January 1, 2013-December 31, 2013）
(Referring to notes to consolidated financial statements unless separately stated. Currency: RMB)
I. Company Profile
This Company is a joint stock company limited jointly promoted and established Huangshi Dongbei
Refrigerating Machine Group Co., Ltd. (The Company is now renamed as Huangshi Dongbei
Electromechanical Group Co., Ltd.), Changzhou Luoke Refrigerating Electrical Co., Ltd. (The
Company is now renamed as Changzhou Zhongke Electrical Manufacturing Co., Ltd..), Changshu
Bixi Radio Factory.( The Company is now renamed as Changshu Tianyin Electromechanical Co.,
Ltd.), Zhuji Electrical Machinery.( The Company is now renamed as Zhejiang Lisheng
Electromechanical Manufacturing Co., Ltd.), Shaoxing Pressing Factory(The Company is now
renamed as Shaoxing Xingbei Pressing Co., Ltd.),Wuhan Xinhua Hardware Factory (The Company
is now renamed as Wuhan Xinhua Pressing Co., Ltd.), which was registered at Industrial and
Commercial Administration of Hubei Province on March 10, 1999.
On May 28, 1999, the Company was approved by China Securities Regulatory Commission to
issue 100,000,000 domestically listed foreign investment shares (B shares). B shares were listed and
traded at Shanghai Stock Exchange on July 15, 1999. Over-allotment option for 15,000,000 shares
was fully exercised before August 13, 1999.
After the completion of the issuance of B shares, the registered capital of the Company was
RMB 235,000,000.00, which was divided into 235,000,000.00 shares with par value of RMB 1 per
share. 117,600,000 shares are state-owned shares, which are held by Dongbei Refrigerating Machine
Group Co. according to the entrustment by Huangshi State-owned Asset Administration. The other
five promoters hold 2,400,000 shares. 115,000,000 shares are negotiable B shares.
The Company obtained WJMZSZ (1999) No. 0098 approval certificate on October 21, 1999
and obtained QGEZZ No. 002678 business license on November 2, 1999, becoming a sign-foreign
joint venture company limited.
On September 10, 2002, Huangshi Dongbei Refrigerating Machine Group Co., Ltd. (now
renamed as Huangshi Dongbei Refrigerating Machine Industrial Co.), the original controlling
shareholder of the Company, established Huangshi Dongbei Electromechanical Group Co., Ltd.
(hereinafter referred to as "Dongbei Electromechanical Group") with three asset management
companies, i.e., Oriental, Huarong and Xinda with main operating assets (including 50.04% equity
of the Company held by it) according to the Agreement for Conversion of Creditor's Rights into
Shares and the approval document issued by State Economic and Trading Commission to approve
the conversion of creditor's rights into shares by Huangshi Dongbei Refrigerating Machine Group
Co., Ltd. After Huangshi Dongbei Electromechanical Group Co., Ltd. was founded, the controlling
shareholder of the company Refrigerating Machine Group Company was transferred to Huangshi
Dongbei Electromechanical Group Co., Ltd. Because the nature of the 117.6 million shares of equity
held by Refrigerating Machine Group Company was state shares, the equity transfer must be
appoved by the Ministry of Finance. Huangshi Dongbei Cooler Group Company agreed to
commission Huanshi Dongbei Electromechanical Group Co., Ltd. to manage the 117.6 million
shares of state equity.
On March 28, 2005, under GuoZiChanQuan [2005] No.197 Reply to Issues Related to Change of
Stated-Owned Holder for Huangshi Dongbei Electrical Appliance Co., Ltd, State Council agreed to
change the 117,600,000 state-owned shares of Huangshi Dongbei Electrical Appliance Co, Ltd held
by Huangshi Dongbei Refrigerating Machinery Industry Corp. (the name of former Huangshi
Dongbei Refrigerating Group Corp. was changed as Huangshi Dongbei Refrigerating Machinery
Industry Corp.) to be held by Huangshi Dongbei Electromachinery(Group) Co., Ltd., with the
- 58 -
黄石东贝电器股份有限公司 2012 年年度报告
changed nature of equity as state-owned legal-representative share.
Registered Address: No.6, Jinshan East Road, Economic & Technology Development Zone,
Huangshi City, Hubei Province.
Business licence registration number: 420000400004635
Registered Capital : RMB 235,000,000.00
Legal Representative：Yang Baichang
Business scope: Production and sales of refrigerating compressors and electrical motors of
compressors, development, production and consultation of high-tech products.
II.Significant accounting policies, accounting estimates and early errors
1. Basis for the preparation of financial statements
The preparation of financial statements of the company based on continuous operation.Base on
actual transactions and events occurring, according to the ministry of finance issued ―Accounting
Standards for Enterprises - Basic Standards‖ on 15th February 2006 and 38 items of specific
accounting standards, application guidelines of accounting standards which was promulgated after,
accounting standards interpretation and other requirements (hereafter named ―Enterprise Accounting
Standard‖), based on the significant accounting policies described below, and will have the
preparation to the accounting estimation.
2.Statement for complying with the accourting standard
The financial statements prepared by the Company comply with the requirements of corporate
accounting standards. They truly and completely reflect the financial situations in December 31,
2013, operating results, equity changes and cash flow, and other relevant information of the
company in 2013.
3.Accounting Period:
Fiscal year: The fiscal year of the Company starts on January 1 and ends on December 31 on the
Gregorian calendar.
4.Standard currency for bookkeeping:
If the account standard money is the other currency in addition to RMB
5.The accounting solution of business combinations under the same and different control
(1)Corporate merger under same control
For the corporate merger under same control, the method of equity should be adopted to do
accounting treatment. Except for the adjustments due to different accounting policies, the assets and
liabilities of the party being merged should be measured according to the original book value and
goodwill will not form. The difference between the book value of the merging price and the book
value of net assets obtained from merger should be adjusted in capital surplus. If the capital surplus
is not enough to be deducted, the retained income should be adjusted.The direct related occurring
costs of the conduct of business merger reckon in profit or loss.
(2)Corporate merger under different controls
With the merger under the different control, the merger cost is the assets to pay, liabilities
incurred or taken and the fair value of the issued equity securities which a buyer gains the control
from the acquiree on the purchase date.
The combination cost is the sum of each single transaction cost for the enterprise combination
achieved by multiple transactions step by step. All the relevant direct expense paid by the purchaser
for the conduct of business combination should be accounted into current profit and loss. In case of
any future events defined in merger contract whose predictable occurrence could influence the
merger cost and the related amount could be reliably calculated at merger date, such amount should
also be included in merger cost.
The acquiree acquired during the business merger not under same control met the conditions of
confirmation can be identified as assets, loans and contingent liabilities, which are measured with the
fair value at the date of purchase. The balance of the identifiable net assets’ fair value, which is the
merger cost from the buyer that is more than the acquiree confirmed, regarded as goodwill.
- 59 -
黄石东贝电器股份有限公司 2012 年年度报告
Contrarily, less than the acquiree confirmed, after reviewing the merger cost still less than the
acquiree confirmed in the balance of the identifiable net assets’ fair value, reckoned in the profit and
loss.
6. The method of drawing up the Consolidation financial statements
The company has real control to the subsidiary and special purpose entity which are included in
the scope of Consolidation financial statements.
The combining financial statements are in accordance with the ―No. 33 Accounting Standards
for Enterprises –Consolidation Financial Statements‖ and the related requirements for drawing up,
offsetting the context of all major transactions and exchanges when is in merger. The subsidiary
equity not belong the part of parent company, but is as minority interests presented separately in the
Consolidation financial statements.
Subsidiaries and the company adopted accounting policies or be inconsistent in the accounting
period, in preparing Consolidation financial statements, in accordance with the company accounting
policies or has the necessary adjustments to financial statements of the subsidiary during the
accounting period.
The business merger acquired subsidiaries under the different control, in preparing
Consolidation financial statements, based on the fair value of identifiable net assets on the
purchase date to adjust their individual financial statements; be under the same control, subsidiary
acquired by the enterprise merger, will be regard as the enterprise merger at the beginning of the
current period when the combination has already occurred, the current period from the beginning of
the merger, its assets, liabilities, operating results and cash flows would include in the Consolidation
financial statements.
7. The determination standard in cash and cash equivalents
The cash has been confirmed when the company drew up the cash flow sheet, it referred to the cash
can be used to pay the deposit at any time
The cash listed in the cash flow statement refers to the cash in store and the cash can be obtained at
any time. Cash equivalent means the holding period of the company is short, strong liquidity and low
risk of value fluctuation .
8.The foreign currency business and the translation of foreign currency financial statement
（1）The foreign currency translation services
The company with the foreign occurring currency transactions, which used the standard money
by the spot exchange rate on the transaction date to enter an item in an account.
The balance sheet date, For monetary items of foreign currency, the spot exchange rate at the date of
balance sheet shall be used in conversion. The exchange balance due to the difference between the
spot exchange rate at the date of balance sheet and the spot exchange rate at initial confirmation or at
the date of previous balance sheet shall be attributed to the profit and loss of current period, except
the exchange balance due to the special loans of foreign currency meeting the conditions of
capitalization shall be attributed to the cost of related assets based on capitalization during the
capitalization.
For the non-monetary items of foreign currency measured with historical cost, still the spot exchange
rate at the date of transaction shall be used, and the amount of recording currency shall not be
changed. For the non-monetary items of foreign currency measured with fair value, the spot
exchange rate at the date of the fair value confirmation shall be used in conversion, the difference
between the amount of recording currency after conversion and that of initial recording currency is
- 60 -
黄石东贝电器股份有限公司 2012 年年度报告
made as the change of fair value, which shall be attributed to the profit and loss of current period or
confirmed as other composite income and attributed to capital reserves.
（2）The foreign currency financial statements
The company with the subsidiaries, joint ventures and integrated enterprises and so on, will use
the different functional currency account after the conversion by the foreign currency financial
statements, and will have an accounting practice and an editing to the combined financial statements.
The assets in the balance sheet and liabilities items, by using the spot exchange rate on the
balance sheet date, all equity projects except the item of ―Undistributed Profits‖, other items were
calculated by the spot exchange rate. With the income and expense items, it was determined by a
systematic and rational approach, and calculated by the approximate exchange rate of the spot
exchange rate to convert on the transaction date. The converting differences generated by the foreign
currency financial statements, and all equity items in the balance sheet are listed separately.
The foreign currency cash flows are determined in accordance with systematical and reasonable
way, and calculated by the spot exchange rate on the approximate exchange rate. The impact of the
changing exchange rate to the cash amount, is shown separately in the cash flow statement
In disposal of overseas operation, the conversion difference of the foreign currency statements
related the overseas operation shall be transferred into the profit and loss of current period in whole
or as per the ratio in disposal of the overseas operation.
9.Financial instruments
（1）The classification of financial instruments, recognition and measurement
The financial instruments classified as financial assets or financial liabilities
The financial assets at the initial recognition are classified as: by measuring at the fair value and
its alternation are reckoned into the financial assets of the profit or loss (included trading financial
assets and the fair value and its alternation are designated into the financial assets of the profit or
loss), the held-to-maturity investment, receivables, and available-for-sale financial assets. Except the
receivables beyond the financial assets classification, which depend on the company and their
subsidiaries have the intention and ability to hold on.
The financial liabilities at the initial recognition are classified as: by measuring at the fair value
and its alternation are reckoned into the financial liabilities of the profit or loss (included trading
financial liabilities and the fair value and its alternation are designated into the financial liabilities of
the profit or loss) and other financial liabilities.
The company became a party in the financial instrument contract; it was recognized as the financial
asset or the financial liability.
The financial assets or financial liabilities are initially recognized as the fair value of the company.
The subsequent measurement shall be disposed by classification: the financial assets measured with
fair value and having its change attributed to the profit and loss of current period, the salable
financial assets and the financial liabilities measured with fair value and having its change attributed
to the profit and loss of current period, shall be measured with the fair value; the financial guarantee
contracts and the loan commitment with the loan below the interest rate in the market shall be
measured again according to the following amounts, whichever is bigger: one is in accordance with
the ―Accounting Standards for Enterprises No. 13 – Contingent Events‖ after the initial confirmation,
another is the balance of the initially recognized amount less the accumulative amortization amount
which is recognized in accordance with the principle of the ―Accounting Standards for Enterprises
- 61 -
黄石东贝电器股份有限公司 2012 年年度报告
No. 14 – Revenue‖; held-to-maturity investments, loan and receivables and other financial liabilities
shall be measured as per amortized cost.
The financial assets or financial liabilities are measured in the follow-up changes in the fair
value gains or losses, except the hedging, are processed in accordance with the following: 1. By
measuring at fair value through alteration to calculate the profit or loss of its financial assets or the
fair value gains or losses from the alteration in the financial liabilities, they will go into the profits or
losses of fair value; the interest or cash dividends acquired in the holding assets period, are
recognized as investment income; when it is in the disposition, the received actual amount and the
balance in the amount initially recorded, are identified as the investment income, simultaneously
adjusted the profit and loss from the fair value alteration. 2. The fair value alteration of
available-for-sale financial assets is included in capital surplus, the interest calculated by the
effective method in the holding period, and is reckoned in the investment income; when it is in the
disposition, the actual amount received and the balance from the book value by deducting the fair
value alternation which directly included in capital surplus, then are recognized as the investment
income.
（2）The confirmation of the transferring in financial assets and measurement
The company confirmed the transferring of financial assets based on: when the ownership of
financial assets is transferring almost all of the risks and rewards, neither transferring nor retaining
them, but give up the control of financial assets, and should terminate and recognize it as financial
capital .
The measurement in the transferring of financial assets: the financial assets satisfied the
termination conditions, it should be transferred by measuring; it meant the transferring of the book
value in financial assets and consideration received from the transferring, and the balance in the
changing amount of fair value which directly included in capital surplus, then reckoned in the profit
and loss.
The financial assets in transferring meets the termination and confirmation conditions, it will be
transferred the book value of the total financial assets between the part of termination and
recognition and the part not be terminated and confirmed, according to their relative fair value to
apportion, and put the book value of the confirmation and termination and the received recognition
and the balance in the changing amount of fair value which directly included in capital surplus, then
reckoned in the profit and loss.
（3）The termination and confirmation conditions of financial liabilities
The financial liabilities termination and confirmation conditions: when the existing obligations
of the financial liabilities have been fully or partly lifted, it should be terminated and confirmed the
financial liabilities or a part of it.
（4）The financial assets and financial liabilities are recognized at fair value method
The fair value recognition method in the financial assets and financial liabilities: if there is an
active market for financial instruments, the quote from the active market to determine the fair value;
if not, adopting valuation techniques to determine the fair value.
The valuation techniques include the prices in recent market which referring to be familiar with
the situation and voluntary parties to the recent transaction, also include the current fair value of
other same financial assets, and the cash flow. When using a valuation technique, maximum the
priority to use the market parameters, reduce the use in its related parameters of the company and
- 62 -
黄石东贝电器股份有限公司 2012 年年度报告
certain subsidiaries.
（5）The impairment of financial assets
The company will have the assets devaluating check to the book value on the balance date, and
measure at fair value through profit or loss. When the objective evidence showed the financial assets
devaluating, it should have the test on it, and have a preparation to the provision for asset losses in
accordance with the result.
For the financial assets with significant individual amount, a depreciation test shall be conducted
separately; for the financial assets with insignificant individual amount, the company shall make
separately for depreciation test, or the similar feature of credit risks included in the portfolio of
financial assets for loss test. Separate tests without depreciation of financial assets (including the
amount of major and non-major individual financial assets), shall be included in a similar credit risk
characteristics of financial assets in the portfolio to pay test again. The depreciation loss of financial
assets which has been confirmed individually shall not be included in a similar credit risk feature of
a portfolio of financial assets for depreciation test.
If the held-to-maturity investments, liabilities and receivables are depreciated, the company shall
write down the book value to the estimated current value of future cash flow, and the reduced
amount shall be made as depreciation loss, which shall be attributed to the profit and loss of current
period. When the salable financial asset is depreciated, the aggregate losses due to decrease of fair
value, originally attributed to the capital reserves, shall be transferred out and attributed to the profit
and loss of current period; the transferred cumulative losses is the balance of the initially attained
financial asset costs deducted the reclaimable principal and amortization amount, the current fair
value and the loss from depreciation initially attributed to profit and loss.
The objective evidences that the Company uses to determine the impairment are as follows:：
①Significant financial difficulty of the issuer or obligor;
②A breach of contract, such as a default or delinquency in interest or principal payments;
③The lender, for economic or legal reasons relating to the borrower's financial difficulty, grants to
the borrower a concession that the lender would not otherwise consider;
④It becomes probable that the borrower will enter bankruptcy or other financial re-organization;
⑤The disappearance of an active market for that financial asset because of financial difficulties;
⑥observable data indicates that there is a measurable decrease in the estimated future cash flows
from a group of financial assets
since the initial recognition of those assets, although the decrease cannot yet be identified with the
individual financial assets in the group, including: (i) Adverse changes in the payment status of
borrowers in the group or (ii) an increase in the unemployment rate in the geographical area of the
borrowers, a decrease in property prices for mortgages in the relevant area, or adverse changes in
industry conditions that affect the borrowers.
⑦Significant changes with an adverse effect that have taken place in the technological, market,
economic or legal environment in which the borrower operates, and indicates that the cost of the
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investment in the equity instrument may not be recovered;
⑧A significant or non-temporary decrease in fair value of equity investment instruments;
The criteria made by the company for the fair value of equity instrument investment available for
sale suffering serious drop is that: if there is significant decline in the fair value of individual
financial assets available for sale and beyond the holding cost of 50%. Thus, the depreciation
provision is required and the depreciation loss is confirmed for the serious depreciation that is
recognized for the financial assets available for sale.
The criteria made by the company for the fair value of equity instrument investment available for
sale suffering non-temporary drop is that: if there is significant decline in the fair value of individual
financial assets available for sale, the drop is expected to belong to the non-temporary one with over
one year of duration, and no fundamental change is in whole duration, the depreciation provision is
required and the depreciation loss is confirmed for the non-temporary depreciation that recognized
for the financial assets available for sale.
⑨Other objective evidences for the depreciation of financial assets.
（6）The reclassification of financial assets
The held-to-maturity investment is postdated and has been reclassified as available-for-sale financial
assets for the main judging:
1）There is no available financial resource which has the sustainable support to the financial
assets, and let its investments hold to maturity.
2）The management has no intention to hold to maturity
3） Be restricted by laws and administrative regulations or other reasons, the financial assets
difficult in hold to maturity
4）Other indicates the company does not have ability to hold to maturity
The held-to-maturity investment is important and postdated have reclassified as
available-for-sale financial assets which are require approval by the directorate’s decision.
10.Account receivables
The receivables of the company mainly include accounts receivable, long-term receivables and other
receivables. If there is an objective evidence in the date of balance sheet of assets and liabilities
indicating such financial assets depreciated, the company shall confirm the depreciation losses
according to the difference between the book value and the estimated current value of future cash
flow.
1.Account receivable belong t individual significance and individually assessed for impairment
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Judgment criteria or The receivable with single amount exceeding RMB 5million (including RMB5 million)
amount standard of shall be confirmed as the receivable with significant single amount. The receivable with
material specific amount single amount exceeding RMB3 million (including RMB3 million) shall be confirmed
or amount criterial as the receivable with significant single amount.
Provision method with
The depreciation loss test is conducted separately, and if an objective evidence indicates
material specific amount depreciation of the receivable, the company shall confirm the depreciation losses and
appropriate the depreciation provisions according to the difference by which the current
and provision of specific
value of future cash flow is lower than its book value.
bad debt preparation
2.Appropriation of receivables of provisions for doubtful accounts by groups
Determining the basis The receivables with significant single amount but not depreciated after separate testing, and
of groups the receivables with non-significant single amount but not depreciated after separate testing.
Appropriation method
for provisions for
Appropriate provisions for doubtful accounts according to aging analysis method
doubtful
accounts by groups
Appropriate provisions for doubtful accounts according to aging analysis method in a group, as follows:
Appropriation Ratio of Appropriation Ration of Other
Account Age
Receivables (%) Receivables (%)
Within 1 year(including 1 year) 2 2
1-2 years 5 5
2-3years 30 30
3-4 years 60 60
Over 4 years 100 100
3.Account receivable with non-material specific amount but specific bad debt preparation
Reason for bad debt provision Difficultly recoverable receivables estimated
The depreciation loss test is conducted separately, and if an objective evidence
Method of appropriation of indicates depreciation of the receivable, the company shall confirm the depreciation
losses and appropriate the depreciation provisions according to the difference by
bad debt provision which the current value of future cash flow is lower than its book value.
11.Inventories
（1）Category of inventories
Inventories refers to finished goods or merchandise the company holds for sale during its daily operation, work in
process, materials consumed during the process of production or services etc. It mainly include raw materials,
materials for cyclic use, materials for consigned processing, packaging materials, low-value consumables, work in
process, self-made unfinished goods, finished goods (merchandise inventories) etc.
（2）Accounting for outgoing inventories
Raw materials are accounted for at planned cost, which can be adjusted to be actual cost by reference to the difference
between the monthly actual cost carryforward of materials and the planned cost; work in process and merchandise
inventory are accounted for at actual cost while outgoing merchandise inventory are accounted for by use of the
weighted average method.
（3）Basis for determining net realizable value of inventory and method of appropriating provisions for inventories
write-down
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In the date of balance sheet of assets and liabilities, the provision for depreciation of inventories shall be valuated and
appropriated as per the lower between the cost and net realizable value of individual inventory; but for the inventories
big quantity and varieties and lower unit price, appropriated as per the type of the inventory.
The basis for deciding net realizable value: ① the net realizable value of the finished goods is the balance of estimated
selling price reducing by the related tax; ② for the material held for production, if the net realizable value of the
finished goods produced by such material is higher than cost, the material shall still be measured as per cost; if the
dropping of the price of material indicates the net realizable value of finished goods is below cost, the net realizable
value shall be decided by the balance of estimated selling price reducing by the estimated cost, estimated selling
expenses and related tax. ③ there is any material to be sold, the net realizable value is the price selling in the market.
（4）Inventories system
The company implements the perpetual inventories system.
(5) Amortization of low cost and short lived articles and packing
Packaging materials, low-value consumables and other materials for cyclic use are amortized by use of the one-off
amortization method.
12.Long-term equity investments
1.Determining initial investment cost
(1)The initial investment cost of a long-term equity investment acquired through business combination under common
control is determined at the book value of the acquired equity while in the case of business combination not under
common control the combination costs is taken as the initial investment cost;
(2)The initial investment cost of a long-term equity investment acquired by cash is the paid purchasing price;
(3)For long-term equity investments acquired by issuing equity securities, the initial investment cost is the fair value
of the issued equity securities;
(4)The initial investment cost of long-term equity investments contributed by investors is the value set by the relevant
contract or agreement;
(5)For investments acquired through exchange of non-monetary assets or debt restructuring, the initial investment cost
is determined in accordance with relevant rules and regulations.
2.Subsequent measurement and recognition of profit and loss
Long-term equity investments are subsequently measured by use of equity method or cost method. For long-term
equity investments accounted for by equity method, the company recognizes the investment income according to its
entitlement to the net realized profit or loss of the invested business and adjusts the investments. It calculates its share
when it is announced to distribute profits or cash dividends, and reduces the book value of the long-term equity
investments accordingly.
By cost method the book value of long-term equity investments remain unchanged except for additional commitments
or withdrawal of investments. The company recognizes the investment income by calculating its share of the
announced distributable profits or cash dividends.
The company uses the equity method to account for the long-term equity investments that are under common control
or over which the company has significant influence while using the cost method for the others.
3.Basis for determining common control or significant influence over invested business
①The basis for determining common control over an invested business is that there must be the two or more
co-operating parties jointly making decisions on the financial and operating policies of the invested business
according to the contract or agreement between or among them.
②When the company owns over 20% up to 50% of the voting capital of an invested business, its influence over the
invested business is significant. Or if the ownership is less 20% but one of the following conditions is satisfied, the
company still has significant influence:
①. There are representative(s) appointed in the board of directors or similar power organizations;
②. It is involved in the policy formulation of the invested business
③. There are managerial staff being sent to the invested business
④. It is dependent on the technologies or technical documents of the invested business
⑤. There are other conditions proved the company has significant influence over the invested business.
4.Impairment testing method and appropriation of impairment provisions
As of the balance sheet date, the company should review whether there are signs indicating impairment of long-term
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equity investments. If such impairing signs do exist, an impairment test should be conducted to recognize the
recoverable amount and impairment provisions should be set aside according to the book value or the recoverable
amount, whichever is lower. Subsequent reversal of an impairment loss is prohibited once it is appropriated.
The impairment testing method: a test should be conducted to measure the recoverable amount of the long-term equity
investments indicated of impairment.
The recoverable amount is the higher of the net fair value for sale of a long-term equity investment and the present
value of estimated prospective cash flows.
The net fair value for sale of a long-term equity investment is, if there is a price set by an agreement of fair transaction,
the agreement price less relevant taxes while if there is no such an agreement of fair transaction but active markets of
similar assets exist, its net fair value is the market price less relevant taxes. Or if it is impossible to reliably estimate
the net fair value for sale, the recoverable amount of such a long-term equity investment is its estimated prospective
cash flows during the held period and by the time of final disposal.
13.Investing real estate
（1）Types and measurement model of investing real estate
There are several types of the company’s investing real estate: land use rights for lease, buildings for lease and land
use rights held for transfer after value being added.
The investing real estate of the company is measured at cost initially and then by use of the cost model subsequently.
（2）Accounting by use of cost model
The lease-out buildings among the investing real estate of the company is depreciated by use of the life averaging
method. The detailed accounting policy is the same as that for fixed assets.
The land use rights and those held for transfer after value being added are amortized by use of the straight-line method.
The accounting policy is the same as that for intangible assets. Depreciation period follows：
Residual value rate Annual depreciation rate
Classification Lifetime（years）
（%） (%)
House and Building 40 5 2.375
The investing real estate of the company is measured at cost initially and then by use of the cost model subsequently.
As of the balance sheet date,The company checks the investment real estate if there exits the evidence of depreciation
occurring possibly; if there is evidence indicating the depreciation, the company shall conduct the depreciation test to
confirm the reclaimable amount, and the provision for depreciation shall be appropriated as per the lower between the
book value and the recoverable amount, also the loss from depreciation, once being appropriated, not be returned in
the accounting periods afterwards.
14.Fixed assets
（1）Recognition conditions of fixed assets
Fixed assets refer to as the tangible assets possessed for producing goods, providing labor, lease or management
with more than one fiscal year of service life. Fixed assets are recognized when satisfying the following conditions:
(1)The economic benefits related to such fixed assets can flow into the enterprise;
(2)The cost of such fixed assets can be measured reliably.
（2）Category and depreciation method of fixed assets
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The fixed assets of the company are divided into property, plant and equipment, electronic devices, vehicles etc,
which are depreciated by use of the life averaging method. According to the nature and use of different types of the
fixed assets, the company determines their useful life and estimated residual value. It reviews the useful life, residual
value and depreciation methods at the end of each year and makes adjustments accordingly if there are differences
from original estimated figures. Except for the fixed assets that have been terminated for depreciation but remained in
use and the lands that are separately priced and accounted for, the company appropriates depreciation for all fixed
assets.
Residual value rate Annual depreciation rate
Classification Lifetime（years）
（%） (%)
Houses and buildings 10-20 5 9.5-4.75
Machinery equipments 5-10 5 19-9.5
Transportation equipments 4-8 5 23.75-11.88
Other equipments 3-5 5 31.67－19.00
（3）Impairment testing method and provision appropriation method of fixed assets
As of the balance sheet date, the company reviews whether there are signs indicating impairment of fixed assets.
When such signs do exist, impairment tests should be conducted to recognize the recoverable amount of fixed assets,
and impairment provisions are set aside by reference to the lower of the book value and the recoverable amount. Once
an impairment loss is appropriated, it is prohibited for reversal in subsequent accounting periods.
The reclaimable amount of the fixed assets shall be decided based on the higher between the net amount of the fair
value of the assets deducted by the disposal expense and the current value of the assets in future cash flow. The net
amount of the fair value of the fixed assets deducted by the disposal expense, shall be decided based on the price in
sales agreement deducted by the disposal expense directly attributed to the assets if there is the price in sales
agreement for fair transaction. If there is no sales agreement for fair transaction but active market for the assets or
transaction price of similar assets of same industry, the company shall make the market price reduced by disposal
expense to decide the amount.
（4）Determining basis and valuation method for a fixed asset under a financing lease
The basis for determining a fixed asset under a financing lease is that all the risks and rewards related to the
ownership of the fixed asset have been transferred substantively in the lease. Specifically, it must satisfy one or more
of the following conditions: ① By expiration of the lease, the ownership of the asset under the lease has been
transferred to the lessee; ② the lessee has the option to purchase the asset under the lease and the purchasing price set
is far lower than the asset’s fair value at the time the option being exercised, which is why it needs to be reasonably
sure that the lessee would exercise such an option from the very commencement date of the lease; ③ even if the
ownership of the asset is not transferred, the lease term covers most of the asset’ useful life; ④ the present value of
the minimum payment the lessee makes on the lease commencement date is almost equal to the asset’s fair value of
the lease commencement date; ⑤ the asset under the lease is so special that only the lessee can use it without large
renovation being carried out.
A fixed asset under a financing lease is valued initially at the asset’s fair value or the present value of the minimum
lease payment as of the lease commencement date, whichever is lower. It is also the book entry value of the asset.
For subsequent valuation of a fixed asset under a financing lease, depreciation and impairment provisions are
appropriated in accordance with the depreciation policy the same as that for self-owned fixed assets.
15.Construction in progress
（1）Category of construction in progress
There are two categories of construction in progress in the company: self-operated construction and subcontracted-out
construction.
（2）Criteria and timing for conversion of construction in progress into fixed assets
The company converts its construction in progress into fixed assets when the construction is competed for the
intended use. To be eligible for the intended use, the construction in progress must satisfy one of the following
conditions:
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①. The physical construction (including installation) of the fixed asset has been completed or completed
substantially;
②. Trial production or operation has been run and proved that the asset can normally operate or steadily produce
qualified products, or the trial operation results show that the asset can normally work or be open for business;
③. Expenses on the constructed fixed asset seldom or almost no longer arise;
④. The purchased or constructed fixed asset has met or substantially matched the design or contract requirements.
（3）Impairment testing method and provision appropriation for construction in progress
On the balance sheet date the company reviews whether there are signs indicating impairment of its construction in
progress. If such signs do exist, it runs an impairment test to recognize the recoverable amount of fixed assets and set
aside impairment provisions by reference to the book value or the recoverable amount, whichever is lower. Reversal
of an impairment loss is prohibited in subsequent accounting periods once it is appropriated.
The construction in progress indicated of impairment should be tested to find out the recoverable amount.
The recoverable amount of construction in progress is determined by the asset’s fair value after deduction of its
disposing expenses or its estimated prospective cash flows, whichever is lower.
16.Borrowing costs
（1）Recognition criteria for borrowing costs capitalization
The borrowing costs of the company, which can be directly attributed to acquisition, construction or production of
capitalization eligible assets, are capitalized and counted in the cost of the relevant asset while other borrowing costs
are recognized as expenses when incurred and counted in the profit and loss of a current accounting period.
Capitalization eligible assets refer to fixed assets, investing real estate, inventory etc., which need to attain the
intended use or sale through acquisition, construction or production activities over a long period.
（2）Calculation of capitalized amount
A capitalization period refers to the period from the commencement to the termination of the capitalization of
borrowing costs, which excludes the suspension period of the borrowing costs capitalization.
A capitalization suspension period means that the acquisition, construction or production is abnormally interrupted for
consecutive three months so the capitalization of the borrowing costs should be suspended.
Calculation of a capitalized amount: ① for a special borrowing, it is determined at the interest expenses of the special
borrowing arising in a current period less the interest income from the credit line balance being deposited in a bank or
the income from temporary investment of the balance; ② for the assets using general borrowings, the capitalized
amount is determined by the weighted average excess of the assets’ accumulated expenses over their special
borrowings multiplying the capitalization rate of the used general borrowings while the capitalization rate is
determined by calculating the weighted average interest rate of general borrowings; ③ for a borrowing at a discount
or premium, the actual interest rate method is used to determine amortization for each accounting period and adjust
interest amount of each period.
The actual interest rate method is a method of calculating unextinguished discounts or premiums or interest expenses
at the actual interest rate. The actual interest rate is the rate used to derive the present book value of the borrowing
from discounting of the prospective cash flows arising throughout the expected duration of the borrowing.
17. .Intangible assets
（1）Measurement of intangible assets
The company measures its intangible assets initially at cost. A purchased intangible asset has the actual paid price and
relevant expenses as its actual cost. For the intangible assets contributed by the investors, the actual cost is the value
set by the investment contract or agreement but if the contract or agreement value is not fair, the actual cost is
determined at fair value. The cost of the intangible assets developed in house is the total expenses incurred to attain
the intended use.
Subsequent measurements are performed on intangible assets in the following ways: ① for an intangible asset with a
finite useful life, the company adopts the straight-line method for its amortization, and the useful life and the
amortization method are reviewed at the end of each fiscal year and will be adjusted accordingly if they are different
from the original estimates. ② Intangible assets with an indefinite useful life are not amortized but a review will be
conducted so if there are concrete evidences indicating that the useful life is finite, such assets will have an estimated
useful life and be amortized by use of the straight-line method.
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（2）Estimation of a finite useful life of intangible assets
For the intangible assets with limited service life, the company generally considers the following factors when
estimating the service life: ① the general life cycle of the products produced by use of the asset and the available
information of the service life of similar assets; ② the estimation of current situation of stage such as technology, craft,
and future development trend; ③ the market demands for the products or the services produced or offered by the asset;
④ an anticipative action taken by current or potential competitors; ⑤ the anticipative maintenance expenditure that is
in order to maintain the capacity of economic benefits produced by the asset, and the ability to pay for the related
expenses expected by the company; ⑥ the relevant regulations of laws or similar constraints in the period of the asset
control, such as the special privilege of use period and the lease term, etc.; ⑦ the associations with the service life of
other assets held by the company.
（3）Recognition of an indefinite useful life
The company is unable to foresee the period that an intangible asset can bring the company economic benefits, or the
useful life of the asset is uncertain. Such an asset can be recognized as an intangible asset with an indefinite useful
life.
Recognition of an indefinite useful life is based on: ① contractual rights or other legal rights but there are no
contractual or legal provisions limiting the service life; ② the fact that it is impossible to determine the economic life
of the intangible asset even when the conditions of the same industry or relevant experts’ opinions are taken into
account.
At the end of each year, the indefinite useful life of an intangible asset is reviewed upward from the level of the
department that uses the asset, which conducts a basic review, to assess whether there are changes in the basis for
recognizing an indefinite useful life.
（4）Impairment testing method and provision appropriation of intangible assets
On the balance sheet date the company reviews whether there are signs indicating impairment of an intangible asset. If
such signs do exist, it will conduct an impairment test to recognize the recoverable amount of the asset and
appropriate an impairment provision by reference to the book value or the recoverable amount, whichever is lower.
Once appropriated, an impairment loss is prohibited from reversal in following accounting periods.
An intangible asset that there are signs indicating impairment should be tested to find out its recoverable amount.
The recoverable amount of an intangible asset is the higher of the fair value after deduction of its disposing expenses
and the present value of its estimated prospective cash flows.
（5）Criteria for the research phase and the development phase of an in-house R & D project and capitalization criteria
for expenses incurred during the development phase
The expenses of an in-house R & D project during the research phase are counted in the profit and loss of a current
accounting period when incurred.
The expenses of such a project incurred during the development phase are recognized as an intangible asset when
satisfying the following conditions:
a. There is technical feasibility in the asset in question being completed for use or sale;
b. There is intention of completing and using or selling the asset.
c. The intangible asset is deemed economically profitable when it is proven that there is a market for the products
produced by such an asset or the asset itself, or that the asset is useful if it is utilized in-house;
d. There are sufficient technical, financial and other support for completion of the development of the intangible asset
and capability of using or selling it;
e. The expenses attributable to the development phase of the asset can be measured reliably.
The criteria for dividing the research phase and the development phase of an in-house R & D project are: the survey
phase for obtaining new technology and knowledge, which is planned and exploratory, is deemed the research phase;
and the phase that before commercial production or use, research results and other knowledge are applied to a specific
program or design to produce new or substantially improved materials, devices, products etc. is deemed the
development phase, which is purposeful and probable for achievements.
18. Long-term expenses to be amortized
The long-term expenses to be amortized of the company refer to all the expenses paid but the benefiting period of
which is over one year (not including one year). They are mainly parking fee, housing decoration expenses etc. The
long-term expenses to be amortized are amortized over the benefiting period of expense items. For the long-term
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expenses to be amortized that cannot be benefiting in future accounting periods, the amortized value of the expense
items are all counted in the profit and loss of a current accounting period.
19.Estimated liabilities
（1）Recognition criteria for estimated liabilities
Estimated liabilities refer to realistic, reliably measurable obligations undertaken by the company, the fulfillment of
which probably cause outflow of economic benefits.
（2）Methodology of measuring estimated liabilities
An estimated liability is measured initially at best estimate of the expenses necessary for fulfillment of a realistic
obligation. If there is a continuous range of the necessary expenses, whereby the likelihood of possible outcomes is
the same, the best estimate can be the median while if there are multiple items involved, the best estimate can be
calculated and determined by reference to all the possible outcomes and the relevant likelihood.
As of the balance sheet date the book value of the estimated liabilities should be reviewed so that if there are concrete
evidences indicating that the book value cannot genuinely reflect the present best estimate, the book value should be
adjusted by reference to the best estimate.
20.Share-based payments and equity instruments
1. Share-based payments refer to transactions in which the company grants equity instruments or assume the liabilities
that are determined based on equity instruments in order to obtain services by employees or other parties. The
payments are settled in two ways: by equity and by cash
2. Equity settled payments for services by employees are measured at the fair value of the equity instruments granted
to the employees. Those granted to obtain services by other parties are measured at the service fair value of the date
that the services are received, and if the fair value of the services by other parties cannot be measured reliably, the
payments will be measured at the equity instrument fair value of the service receiving date.
3. The fair value of equity instruments can be determined as below:
(1) If there are active markets, the fair value is determined based on the quoted price in active markets;
(2) If there are no active markets, reasonable valuation techniques can be adopted to determine the fair value, e.g., by
reference to the prices used by well-informed and willing parties in their recent market transactions, the present fair
value of other financial instruments substantially in the same nature, the discounted cash flows technique, option
pricing model etc.
4. For those settled by cash, the fair value is measured by reference to the fair value of the undertaken liabilities,
which is calculated and determined based on shares and other equity instruments.
5. The best estimate of exercisable equity instruments can be determined by reference to subsequent information, e.g.,
the latest information on change in the number of employees who can exercise their options.
21.Earning
（1） Sales of Goods
Goods sales revenues are recognized according to the contractual or agreement price received or receivable from the
purchasing party when the Goods the company sells satisfy the following conditions: ① the main risks and rewards of
the ownership of Goods have been transferred to the purchasing party; ② the company neither reserves the continuing
control right related to the ownership nor exert effective control over the sold merchandise; ③ the received amount
can be measured reliably; ④ the relevant economic benefits are probable to flow into the company; ⑤ and the
relevant costs incurred or to be incurred can be measured reliably.
If a contract or agreement adopts deferred payments, it actually has a financing nature. Therefore, the sales revenue is
determined according to the fair value of the receivable contractual or agreement payments.
（2）Labor services
If the result of the labor service provided can be estimated reliably in the date of balance sheet of assets and liabilities,
the company shall adopt the completion percentage method to confirm the income from rendering of service and
determine the completion progress at the percentage of the incurred costs in the estimated total costs.If the result of
the labor service provided cannot be estimated reliably in the date of balance sheet of assets and liabilities, the
company shall dispose separately according to the following situation: ① the service cost which has occurred is
expected to get compensation, the company shall confirm the income from rendering of service as per the service cost
which has already occurred, and carry forward the service cost as per the same amount; ②if the service cost which has
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黄石东贝电器股份有限公司 2012 年年度报告
already occurred is expected not to get compensation, the company shall attribute the service cost which has already
occurred into the profit and loss of current period, and not confirm the labor service.
（3）Alienation of asset use rights
The company recognizes the revenues from alienation of asset use rights when the economic benefits related to the
alienation can flow in and the received amount can be measured reliably.
22. Governmental subsidies
（1）Types of governmental subsidies
There are mainly two types of governmental subsidies: one related to assets and the other related to income
The government grants of long-term assets acquired by the company and used for purchase and construction or
formed by other methods are the government grants related to assets, and the government grants used to compensate
for the expenses or loss already occurred or appeared in the future period are the income-related government grants.
Also, the government grants that acquired by the company either used to purchase the equipment and other long-term
assets, or used to compensate for labor cost, purchasing service fee, management charge and other expenses, are
belong to the government grants related to assets and incomes, which should be divided into two parts of the
assets-related one and the income-related one, and should be accounted separately. If unable to distinguish, the whole
government grants shall be classed as the grants related to assets.
（2）Accounting treatment for governmental subsidies
Assets related governmental subsidies are recognized as deferred income and counted in the profit and loss of a
current period after being averagely allocated over the useful life of the related assets. Governmental subsidies
measured in a nominal amount are directly counted in a current period. Income related governmental subsidies are
treated as follows: ① The subsidies that are used to compensate relevant expenses or losses of subsequent periods are
recognized as deferred income and counted in the profit and loss of a current period when the company recognizing
the relevant expenses. ② Those used to compensate incurred relevant expenses or losses are counted in the profit and
loss of a current period.
23.Deferred income tax assets and deferred income tax liabilities
The company recognizes its deferred income tax assets and deferred income tax liabilities as below:
（1）Based on the difference between the book value of assets and liabilities and the taxable base (for items not
recognized as assets or liabilities while their taxable base can be determined in accordance with the provisions of the
tax law, the taxable base is the difference), the company calculates and recognizes deferred income tax assets or
liabilities at the tax rate applicable when it is time to recover the assets or liquidate the liabilities.
（2）Deferred income tax assets are recognized to the limit of taxable income, which can be achieved probably and be
utilized to offset deductible temporary differences. If there are concrete evidences indicating that sufficient taxable
income can be achieved probably in a future period to offset deductible temporary differences as of the balance sheet
date, then the company will recognize the deferred income tax asset that were not recognized in a previous period. If
not, the company will write down the book value of deferred income tax assets.
（3）For the deductible temporary differences related to the investments on the subsidiaries and associate enterprises,
deferred income tax liabilities are recognized unless the company can control the reversal time of the temporary
differences and such differences probably will not be reversed in the foreseeable future. Deferred income tax assets
will be recognized for the deductible temporary differences related to the investments on the subsidiaries and associate
enterprises when such differences can be reversed probably in the foreseeable future and it is probable to achieve
taxable income in the future, which can be utilized to offset the deductible temporary differences.
24.Lease
If all the risks and rewards related to the ownership of a leased asset are transferred to the lessee according to the
terms and conditions of the lease, such a lease is a finance lease while others are operating leases.
25. Held-for-sale assets
（1）Recognition criteria for held-for-sale assets
The following conditions must be satisfied simultaneously: resolution has been made by the company on disposal of
the asset in question; the company has signed an irrevocable transfer agreement with the transferee; and transfer of
such an asset will be completed in a year.
（2）Accounting treatment for held-for-sale assets
For a held-for-sale fixed asset, its estimated residual value should be adjusted to reflect the amount after the disposing
72
黄石东贝电器股份有限公司 2012 年年度报告
expenses being deducted from its fair value but the adjusted residual value should not exceed the original asset book
value at the time that the held-for-sale conditions are satisfied. The excess of the original book value over the
estimated residual value after adjustment will be recognized as asset impairment loss and counted in the profit and
loss of a current period.
Other held-for-sale noncurrent assets are treated as above, which include individual assets and disposed groups. A
disposed group refers to a group of assets as a whole sold or disposed in other ways.
26.Accounting policies, accounting estimates and early errors
(1) Description for main change of accounting policies
The company doesn’t have any change in accounting policies in this period.
(2) Description for main change of accounting estimates
Description for no change of accounting estimates
27.The earlier correction for accounting errors
The company doesn’t have any earlier correction for accounting errors in this period.
III. Taxes
(1) Tax type and Tax Ratio
Type Tax basis Tax Ratio
13% of sales amounts are belong to the domestic sales revenue
VAT and 17% is the VAT of total output, and the implementation of 13%、17%
―exemption, withholding and drawback‖ is for the export sales.
Should be accounted and paid according to 5% of 5%
Business tax
taxable income.
Tax for city maintenance Should be accounted and paid according to 7% of the 7%
and construction: payable current taxes.
Should be accounted and paid according to 3% of 3%
Fees for education:
payable current taxes.
Should be accounted and paid according of payable 15%、25%
Enterprise income tax
income tax.
(2) Tax incentives
1. In 2011, the company has been examined and recognized as the hi-tech enterprise by Hubei Provincial Hi-tech
Enterprise Recognition and Management Committee, with the validity of three years, and 15% of income tax
accounted for the enterprise in this period.
2. Huangshi Dongbei Electromechanical Group Solar Energy Co., Ltd. is subsidiary of the Company, is enterprise
engaged in civil welfare. According to the Circular of Tax Preference Policy for Promoting Employment of the
Disabled issued by Ministry of Finance and State Taxation Administration (Cai Shui (2007) No.92), the company
enjoyed the preferential policy of refund of value added tax within limit when levied and deduction of additional
corporate income tax. In 2011, the company has been examined and recognized as the hi-tech enterprise by Hubei
73
黄石东贝电器股份有限公司 2012 年年度报告
Provincial Hi-tech Enterprise Recognition and Management Committee, with the validity of three years, and 15% of
income tax accounted for the enterprise in this period.
3. In 2011, the Controllding Subsidiary Wuhu Abaur Mechanical & Electrical Co.,Ltd has been examined and
recognized as the hi-tech enterprise by Hubei Provincial Hi-tech Enterprise Recognition and Management Committee,
with the validity of three years, and 15% of income tax accounted for the enterprise in this period.
4. In 2013, the Controllding Subsidiary Huangshi Dongbei Founding Co., Ltd. has been examined and recognized as
the hi-tech enterprise by Hubei Provincial Hi-tech Enterprise Recognition and Management Committee, with the
validity of three years, and 15% of income tax accounted for the enterprise in this period.
IV. Enterprises Consolidated and Consolidated Financial statement
The company includes the subsidiaries that it has actual control over and the entities of special purposes in its
consolidated financial statements.
The consolidated financial statements of the company are complied in accordance with the requirements of The
Enterprise Accounting Principle No. 33 – Consolidated Financial Statements and the relevant provisions, and
significant internal transactions within the consolidation scope have been eliminated in consolidation. The
shareholders’ equity of the subsidiaries, which are not attributable to the parent company, is listed separately as
minority shareholders’ equity under the shareholders’ equity in the consolidated financial statement.
If a subsidiary adopts different accounting policies or periods, necessary adjustment should be made on the financial
statements of the subsidiary according to the company’s accounting policies or periods when consolidated financial
statements are compiled.
For a subsidiary acquired through business combination not under common control, when consolidated
financial statements are compiled, adjustment should be made on one individual financial statement
based on the fair value of its net identifiable assets at the purchase date . As to a subsidiary acquired
through business combination under common control, it is deemed that the combination has occurred at
the beginning of the combination year so that its assets, liabilities, operating results and cash flows
should be included in consolidated financial statements from the beginning of the combination year.
1.Subsidiaries
(1)Subsidiaries acquired through establishment or investment
74
黄石东贝电器股份有限公司 2012 年年度报告
Balance
Wheth
Re of other
Voting er Equity
gist projects Share
Type of Natu Registe Closing power merge of
Full name of ere Scope of for net holdin
subsidia re of red actual ratio the minority
subsidiary d business investment g ratio
ry busi capital investment (%) statem sharehol
pla of (%)
ness ents or der
ce subsidiary
not
essentially
Wuhu Ab W Ma Production
aur Mech Limi uh nuf and sales of
50,00 110,25
anical ted u actu Compressor 33,339,80
0,000. 75.00 75.00 Yes 5,096.1
& Com ring and 0.00
00 7
Electrical pany Compressor
Co.,Ltd Machine
(2)Subsidiaries acquired through business combination under common control
Wh
eth
Balance
er
of other Votin
Share mer
Type Closing projects g Equity of
Natur holdi ge
Full name of of Register Registered Scope of actual for net powe minority
e of ng the
subsidiary subsid ed place capital business investmen investmen r ratio sharehold
busin ratio stat
iary t t of (%) er
ess (%) em
subsidiary
ent
essentially
s or
not
Huangshi Li
Huang Man
mit
Dongbei Production
ed shi ufact
Electromec Co and sales
uring
mp 24,861,1 22,485,2 83.0 83.0 Ye 10,524,2
hanical of solar
any 62.85 02.90 3 3 s 08.10
Group Solar water
Energy Co., heaters
Ltd.
Huangshi Li Casting of
Huang Man
mit
Dongbei small and
ed shi ufact 32,814,0 20,000,0 51.2 51.2 Ye 39,773,7
Foundry Co 78.23 medium 00.00 8 8 s 96.68
uring
mp
Co., Ltd. casts
any
Dongbei Li BVI Com Sales of
Internationa mit merc Refrigerati
l Trade Co., ed e on
USD
Ltd. Co Compresso 6,632,40 100. 100. Ye
1,000,00
mp r, 0.00 00 00 s
0.00
any Refrigerati
on
Equipment
75
黄石东贝电器股份有限公司 2012 年年度报告
Full name of Type Register Scope of
Registered Closing Balance Share Votin Wh Equity of
subsidiary of ed place Natur business
capital actual of other holdi g eth minority
subsid e of and Parts , investmen projects ng powe er sharehold
iary busin Photoelect t for net ratio r ratio mer er
ess ric investmen (%) (%) ge
products t of the
and solar subsidiary stat
water essentially em
heater ,etc. ent
1.The explanation of the changes of combination scope s or
There is no changes of the combination scope at this reporting period. not
V．Notes to items of consolidated financial statements
1. Monetary capital
(1)Classification of Monetary capital
Balance at period end Balance at period beginning
Items Exchan Amount equivalent Exchange Amount equivalent
Foreign amount to RMB Foreign amount to RMB
ge rates rates
Cash： —— —— 2,194.95 —— —— 35,211.46
Including：RMB —— —— 2,168.09 —— —— 2,749.70
Euro 3.19 8.4189 26.86 3,902.78 8.3176 32,461.76
Bank deposit —— —— 257,966,904.97 —— —— 297,336,788.95
Including：RMB —— —— 225,715,533.03 —— —— 237,932,518.85
USD 3,747,815.81 6.0969 22,850,058.21 8,444,575.38 6.2855 53,078,378.56
Euro 1,116,691.46 8.4189 9,401,313.73 760,542.89 8.3176 6,325,891.54
Other monetary
—— —— 270,142,935.67 —— —— 223,987,521.44
capital
Including：RMB —— —— 270,142,834.03 —— —— 223,987,521.44
USD 16.67 6.0969 101.64 —— —— ——
Total —— —— 528,112,035.59 —— —— 521,359,521.85
(2)Other Monetary capital
Items Balance at period end Balance at period beginning
Paper margin 201,126,415.67 203,987,521.44
Domestic Margin credit 7,000,000.00 20,000,000.00
Loan Margin 62,016,520.00
Total 270,142,935.67 223,987,521.44
2. Bills receivables
(1) Classification of Bills receivables
76
黄石东贝电器股份有限公司 2012 年年度报告
Items Balance at period end Balance at period beginning
Bank acceptance 670,346,572.09 652,879,845.38
Trade acceptance 39,734,859.89 4,646,000.00
Letter of credit 23,220,000.00
Total 733,301,431.98 657,525,845.38
Notes ： The third subsidiary of Huangshi Dongbei Founding Co., Ltd. has acquired RMB 8.305 million of domestic
L/C by pledging the book value of RMB 8.305 million of commercial acceptance bills to China Everbright Bank Co.,
Ltd.
(2) As of December 31, 2013,Top 5 notes receivable of largest pledged amounts as follows
Issuing Unit Issuing Date Maturity Date Amount Notes
1.Qingdao Haidayuan Procurement Services Co., Ltd. 2013/9/24 2014/3/24 9,857,273.50
2. Qingdao Haidayuan Procurement Services Co., Ltd. 2013/10/23 2014/4/23 9,837,263.55
3. Qingdao Haidayuan Procurement Services Co., Ltd. 2013/7/23 2014/1/23 9,498,756.19
4. Qingdao Haidayuan Procurement Services Co., Ltd. 2013/7/23 2014/1/23 9,428,725.23
5. Qingdao Haidayuan Procurement Services Co., Ltd. 2013/9/24 2014/3/24 9,356,187.62
(3) As of December 31, 2013, Top 5 of largest amounts of notes receivable with endorsement but not matured as
follows
Issuing Unit Issuing Date Maturity Date Amount Notes
1.Guangdong Homa Electric Appliance Co., Ltd. 2013/7/19 2014/1/19 21,498,360.00
2.Guangdong Homa Electric Appliance Co., Ltd. 2013/7/21 2014/1/21 21,405,097.60
3.Suning Yunnan Group Co., Ltd. Suning
2013/7/18 2014/1/18 10,000,000.00
Procurement Center
4.Shanghai Suning Yunshang Sell Co., Ltd. 2013/7/5 2014/1/5 10,000,000.00
5.Suning Yunnan Group Co., Ltd. Suning
2013/7/5 2014/1/5 10,000,000.00
Procurement Center
3.Account receivables
(1) Classification of account receivables
Balance at period end
Bad debt reserve
Book balance
Type
Proport
Amount Proportio
Amount ion
n(%)
(%)
1. Receivables with major individual amount and bad debt
provision provided individually
1,032,996,621.9 33,125,288.0
2. Receivables provided bad debt provision in groups 100.00 3.21
1 8
1,032,996,621.9 33,125,288.0
Group 1（Account age Analysis ） 100.00 3.21
1 8
1,032,996,621.9 33,125,288.0
Subtotal of group 100.00 3.21
1 8
77
黄石东贝电器股份有限公司 2012 年年度报告
Balance at period end
Bad debt reserve
Book balance
Type
Proport
Amount Proportio
Amount ion
n(%)
(%)
3. Account receivable with minor individual amount but bad
debt provision is provided
1,032,996,621.9 33,125,288.0
Total 100.00 3.21
1 8
Balance at period beginning
Bad debt reserve
Book balance
Type
Proporti
Amount Proportio
Amount on
n(%)
(%)
1. Receivables with major individual amount and bad debt
provision provided individually
975,340,703.1 31,344,888.4
2. Receivables provided bad debt provision in groups 100.00 3.21
7 5
975,340,703.1 31,344,888.4
Group 1（Account age Analysis ） 100.00 3.21
7 5
975,340,703.1 31,344,888.4
Subtotal of group 100.00 3.21
7 5
3. Account receivable with minor individual amount but bad
debt provision is provided
975,340,703.1 31,344,888.4
Total 100.00 3.21
7 5
Notes：The accounts receivable with significant individual amount and appropriation of provisions for doubtful
accounts individually, refers to the receivables of single amount beyond RMB5 million (including RMB5 million), if
there is no depreciation after depreciation test made, the company shall appropriate provisions for doubtful accounts
according to account age.
In groups, the receivables status of provisions for doubtful accounts shall be appropriated according to aging analysis
method.
Amount at period end Amount at period beginning
Account Bad debt Bad debt
age Proportio Proportio
Book balance reserve Book balance reserve
n(%) n(%)
Within 1 year 1,012,887,093.47 98.05 20,041,789.07 958,705,378.98 98.30 19,085,271.88
1-2 years 5,389,936.74 0.53 269,496.83 4,240,442.09 0.43 212,022.11
2-3 years 2,577,709.32 0.25 773,312.80 482,982.50 0.05 144,894.75
3-4 years 252,982.50 0.02 151,789.50 22,999.72 0.00 13,799.83
4-5 years
Over 5 years 11,888,899.88 1.15 11,888,899.88 11,888,899.88 1.22 11,888,899.88
78
黄石东贝电器股份有限公司 2012 年年度报告
Amount at period end Amount at period beginning
Account Bad debt Bad debt
age Proportio Proportio
Book balance reserve Book balance reserve
n(%) n(%)
Total 1,032,996,621.91 100.00 33,125,288.08 975,340,703.17 100.00 31,344,888.45
Notes 1：For the accounts of shareholder unit holding the company of 5% (including 5%) or more of voting power
shares in the accounts receivable, the details please see the notes ―6. The affiliated party and the related transaction,
6. The accounts receivable and payable of the affiliated party‖;
Notes2：The details of receivables from affiliated party please see the notes ―6. The affiliated party and the related
transaction, 6. The accounts receivable and payable of the affiliated party‖.
Notes 3：The details of receivables from Pledge at the end of the period please see the Note 5 of the notes of the
important items in consolidated Financial Statements, note 16 Short-term loan.
(2)The top 5 debtors of accounts receivable
Name Relationship with the Proportion to total
Amount Aging
Company accounts receivalbe(%)
Client 1 Non-related parties 185,849,807.27 Within 1 year 17.99
Client 2 Non-related parties 85,673,757.00 Within 1 year 8.29
Client 3 Non-related parties 76,143,838.79 Within 1 year 7.37
Client 4 Non-related parties 54,870,564.36 Within 1 year 5.31
Client 5 Non-related parties 35,788,722.75 Within 1 year 3.46
Total —— 438,326,690.17 —— 42.42
(3)Account receivable include the following foreign currency balances
Year-end balance Year-beginning balance
Foreign
Currency of Name Exchange Original
Original currency rate RMB equivalent currency Exchange rate RMB equivalent
120,987,958.3 20,132,461.1 126,542,584.3
USD 19,844,176.28 6.0969 6.2855
6 1 1
Euro 3,185,679.81 8.4189 26,819,919.75 1,919,845.48 8.3176 15,968,506.76
147,807,878.1 142,511,091.0
Total —— —— —— ——
1 7
4.Prepayments
(1) Analysis of Aging
Amount at period end Amount at period beginning
Age Amount Amount
Proportion(%) Proportion(%)
Within 1 year 110,027,505.50 86.36 106,448,034.86 84.55
1-2 years 8,257,489.69 6.48 13,354,042.28 10.61
79
黄石东贝电器股份有限公司 2012 年年度报告
Amount at period end Amount at period beginning
Age Amount Amount
Proportion(%) Proportion(%)
2-3 years 3,496,665.00 2.74
Over 3 years 5,628,313.35 4.42 6,098,580.83 4.84
Total 127,409,973.54 100.00 125,900,657.97 100.00
(2) As of December 31, 2013, The top five companies according to the Prepayment
Name Relationship with Amount Proportion% Time Reasons for pending
the Company account
Under
Client 1 Related parties 15,860,270.00 12.45 Within 1 year
implementation
Under
Client 2 Non-related parties 12,758,283.45 10.01 Within 1 year
implementation
Under
Client 3 Non-related parties 11,788,423.25 9.25 Within 1 year
implementation
Under
Client 4 Non-related parties 9,643,200.00 7.57 Within 1 year
implementation
Under
Client 5 Related parties 7,573,626.46 5.94 Within 1 year
implementation
Total —— 57,623,803.16 45.22 ——- ——
Notes 1：For the accounts of shareholder unit holding the company of 5% (including 5%) or more of voting power
shares in the Prepayment, the details please see the notes ―6. The affiliated party and the related transaction, 6. The
accounts receivable and payable of the affiliated party‖;
Notes 2：The details of receivables from affiliated party please see the notes ―6. The affiliated party and the related
transaction, 6. The accounts receivable and payable of the affiliated party‖.
5.Other receivables
(1) Classification of other receivables
Amount at period end
Bad debt reserve
Book balance
Type Proporti
Amount on of
Proportion(%
) Amount provisio
n
(%)
1. Receivables with major individual amount and bad debt provision
provided individually
2. Receivables provided bad debt provision in groups 11,488,095.30 100.00 1,193,692.64 10.39
Group 1（Account age Analysis ） 11,488,095.30 100.00 1,193,692.64 10.39
Subtotal of group 11,488,095.30 100.00 1,193,692.64 10.39
80
黄石东贝电器股份有限公司 2012 年年度报告
Amount at period end
Bad debt reserve
Book balance
Type Proporti
Amount on of
Proportion(%
) Amount provisio
n
(%)
3. Account receivable with minor individual amount but bad debt
provision is provided
Total 11,488,095.30 100.00 1,193,692.64 10.39
Balance at period beginning
Bad debt reserve
Book balance
Type
Proportio
Amount n of
Proportion(%) Amount
provision
(%)
1. Receivables with major individual amount and bad debt
provision provided individually
2. Receivables provided bad debt provision in groups 13,617,025.78 100.00 1,278,012.45 9.39
Group 1（Account age Analysis ） 13,617,025.78 100.00 1,278,012.45 9.39
Subtotal of group 13,617,025.78 100.00 1,278,012.45 9.39
3. Account receivable with minor individual amount but bad
debt provision is provided
Total 13,617,025.78 100.00 1,278,012.45 9.39
Notes1：The Other receivable with significant individual amount and appropriation of provisions for doubtful accounts
individually, refers to the receivables of single amount beyond RMB3 million (including RMB3 million), if there is no
depreciation after depreciation test made, the company shall appropriate provisions for doubtful accounts according to
account age.
Notes 2: There is no amount due from shareholders with more than 5%(including 5%) of the voting shares of the
Company in prepayment.
In groups, other receivables status of provisions for doubtful accounts shall be appropriated according to aging
analysis method.
Amount at period end Amount at period beginning
Account age Bad debt reserve Proportion( Bad debt reserve
Book balance Proportion(%) Book balance %)
Within 1 year 9,173,615.52 79.85 182,503.98 9,687,005.52 71.14 193,373.13
1-2 years 728,286.55 6.34 36,414.33 2,242,496.06 16.47 112,124.80
2-3 years 777,455.57 6.77 233,236.67 168,000.00 1.23 50,400.00
3-4 years 168,000.00 1.46 100,800.00 1,493,524.20 10.97 896,114.52
4-5 years 614,737.66 5.35 614,737.66 26,000.00 0.19 26,000.00
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黄石东贝电器股份有限公司 2012 年年度报告
Amount at period end Amount at period beginning
Account age Bad debt reserve Proportion( Bad debt reserve
Book balance Proportion(%) Book balance %)
Over 5 years 26,000.00 0.23 26,000.00
Total 11,488,095.30 100.00 1,193,692.64 13,617,025.78 100.00 1,278,012.45
(2) The nature or contents for bigger amounts of other receivables
Unit Name Amount The nature or contents of other receivables
Export Drawback 6,997,530.47 Export Drawback Receivable
Total 6,997,530.47 ——
(3) The top five companies according to the other receivable
Name Relationship with the Amount Proportion%
Time
Company
Client 1 Non-related parties 6,997,530.47 Within 1 year 60.91
Client 2 Related parties 971,843.60 Within 1 year 8.46
Client 3 Non-related parties 398,000.00 Within 1 year 3.46
Client 4 Related parties 393,827.10 Within 1 year 3.43
Client 5 Non-related parties 168,000.00 3- 4 years 1.46
Total —— 8,929,201.17 —— 77.72
6.Inventories
1. Classification of inventories
Balance in year-end Balance in year-begin
Items Bad debt Book Value Bad debt Book Value
Book balance Book balance
provision provision
Raw materials 111,035,587.47 111,035,587.47 82,970,353.13 82,970,353.13
Work-in-proces
150,807,221.14 150,807,221.14 160,178,616.19 160,178,616.19
s
Merchandise
267,141,984.76 267,141,984.76 229,141,987.05 229,141,987.05
inventory
Total 528,984,793.37 528,984,793.37 472,290,956.37 472,290,956.37
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黄石东贝电器股份有限公司 2012 年年度报告
7. Investment to the affiliated enterprise
Lega Proporti
Regis Nature Total Total business
l Registe on of Proportion Net profits of the
tratio of Amount at closing Total closing net
Name Type repre red sharehol of voting income amounts of
n busine year-end liabilities assets amounts current period
senta capital ding power(%)
place ss amounts the current period
tive (%)
Huangshi Limite
Zhu
Aibo d Huan Real 10 215,323,763.6 209,023,
Jinmi 30.00 30.00 6,300,543.03 -1,639,845.95
Property Compa gshi estate million 7 220.64
ng
Co.,Ltd. ny
Hubei
Limite Liu
Jinling
d Huan Chua Agricu 20 49,043,6
Precision 30.00 30.00 66,720,779.93 17,677,169.50 19,570,015.27 256,039.40
Compa gshi nson lture million 10.43
Agricultur
ny g
e Co., Ltd.
8.Long-term Equity investment
Propor
tion of Proportio
Accou shares n of
nting Investmen Amount at Increase or Amount at held in voting Depreciation Cash dividend
Invested unit
metho t cost year-begin decrease year-end invest power in reserve for this period
d ment invested
units( units (%)
%)
Huangshi Dongbei Cost
Refrigerating Co., metho 10,000.00 10,000.00 10,000.00 0.48 0.48
Ltd. d
Huangshi Dongbei Cost
79,944,35 79,944,35 -79,944,3
Electromechanical Metho 41.42 41.42
1.78 1.78 51.78
Group Co., Ltd. d
Equity
Huangshi Aibo Property 3,000,000 2,054,841 -491,953. 1,562,888
metho 30.00 30.00
.00 .79 79 .00
Co.,Ltd. d
Equity
Hubei Jinling Precision 6,000,000 3,929,499 4,006,311
metho 76,811.82 30.00 30.00
.00 .55 .37
Agriculture Co., Ltd. d
83
黄石东贝电器股份有限公司 2012 年年度报告
Propor
tion of Proportio
Accou shares n of
nting Investmen Amount at Increase or Amount at held in voting Depreciation Cash dividend
Invested unit
metho t cost year-begin decrease year-end invest power in reserve for this period
d ment invested
units( units (%)
%)
85,938,69 -80,359,4 5,579,199
Total —— —— —— ——
3.12 93.75 .37
Notes : In this period, Wuhu Abaur Mechanical & Electrical Co.,Ltd., the holding subsidiary of the company, has transferred all the holding equity of
41.42% of Huangshi Donper Mechanical and Electrical Group Co., Ltd. to Jiangsu Luoke Mechanical & Electrical Co., Ltd.
84
黄石东贝电器股份有限公司 2012 年年度报告
9.Investment real estate
Balance in Increase at this Decrease at Balance in
Items year-begin period this period year-end
I.Total of original value 6,934,630.00 6,934,630.00
Houses and buildings 6,934,630.00 6,934,630.00
II.Total of Accumulative depreciation and
2,892,705.92 165,044.16 3,057,750.08
Accumulative amortization
Houses and buildings 2,892,705.92 165,044.16 3,057,750.08
III.Reserve for impairment of investment
real estate
Houses and buildings
IV.Book value of investment real estate 4,041,924.08 3,876,879.92
Houses and buildings 4,041,924.08 3,876,879.92
Notes：The depreciation of this period was RMB165,044.16.
10.Fixed assets
Balance in Increase at this Decrease at this Balance in
Items year-begin period period year-end
I.Total of Original price 1,425,113,278.28 59,645,014.01 138,384,958.27 1,346,373,334.02
Houses and buildings 417,516,590.21 5,103,037.62 422,619,627.83
Machinery and equipment 963,454,292.23 48,519,927.27 136,793,659.20 875,180,560.30
Transportation equipment 21,649,251.14 3,174,486.58 649,737.50 24,174,000.22
Other 22,493,144.70 2,847,562.54 941,561.57 24,399,145.67
II. Total of accumulated
527,755,531.95 97,398,436.76 95,322,647.35 529,831,321.36
depreciation
Houses and buildings 84,122,509.94 17,924,846.34 102,047,356.28
Machinery and equipment 414,983,255.20 69,465,246.29 93,849,907.69 390,598,593.80
Transportation equipment 14,697,489.87 4,228,728.01 617,250.63 18,308,967.25
Other 13,952,276.94 5,779,616.12 855,489.03 18,876,404.03
III.Total Net book value of
897,357,746.33 816,542,012.66
Fixed assets
Houses and buildings 333,394,080.27 320,572,271.55
Machinery and equipment 548,471,037.03 484,581,966.50
Transportation equipment 6,951,761.27 5,865,032.97
Other 8,540,867.76 5,522,741.64
IV. Total of Reserve for
85
黄石东贝电器股份有限公司 2012 年年度报告
Balance in Increase at this Decrease at this Balance in
Items year-begin period period year-end
impairment
Houses and buildings
Machinery and equipment
Transportation equipment
Other
V. Total book value of fixed
897,357,746.33 816,542,012.66
assets
Houses and buildings 333,394,080.27 320,572,271.55
Machinery and equipment 548,471,037.03 484,581,966.50
Transportation equipment 6,951,761.27 5,865,032.97
Other 8,540,867.76 5,522,741.64
Notes 1：In this period was there RMB 97,398,436.76 set aside as depreciations, and the original price of the fixed
assets converted from a construction in process was RMB 2,840,470.59.
Notes 2:This period of fixed assets mortgage please see the notes V,Consolidated financial statements of important
notes 25, Long-term loan .
Notes 3：In this period, the machine devices of subsidiary workshop with the original value of RMB 108,924,624.63
yuan and the net value of RMB 31,896,150.42 are disposed, which has been sold to Huangshi Aibo Technology Co.,
Ltd. after the public auction by the Huangshi Jiacheng Property Transaction Co., Ltd., with the sale price of RMB
22,047,275.88 .
11.Construction in progress
Balance in year-end Balance in year-begin
Items Bad debt Book Value Bad debt Book Value
Book balance Book balance
provision provision
Equipment installation 1,508,012.75 1,508,012.75 1,934,690.56 1,934,690.56
The Phase III project of
6,904,171.58 6,904,171.58 769,480.32 769,480.32
Huangjianshan
Construction funds of Da
5,065,000.00 5,065,000.00
zhi Luoqiao new plant
ERP software installatio
n project 554,074.68 554,074.68
Total 14,031,259.01 14,031,259.01 2,704,170.88 2,704,170.88
Notes : In this period the constructions in process worth RMB 2,840,470.59 were converted into fixed assets.
12..Intangible assets
86
黄石东贝电器股份有限公司 2012 年年度报告
Amount at period Increase in current Decrease in Amount at period
Items beginning period current period end
I.Total of original value 84,948,511.35 1,312,875.20 - 86,261,386.55
Land use right 81,058,310.92 1,249,200.00 82,307,510.92
Software 2,090,200.43 63,675.20 2,153,875.63
Non Patent technology 1,800,000.00 1,800,000.00
II.Total accumulative
8,316,260.91 2,204,445.50 - 10,520,706.41
amortized
Land use right 7,428,215.21 1,798,367.06 9,226,582.27
Software 708,045.70 226,078.44 934,124.14
Non Patent technology 180,000.00 180,000.00 360,000.00
III.Total book value of
76,632,250.44 75,740,680.14
intangible assets
Land use right 73,630,095.71 73,080,928.65
Software 1,382,154.73 1,219,751.49
Non Patent technology 1,620,000.00 1,440,000.00
IV. Total impairment provision
Land use right
Software
Non Patent technology
V. Book value Total of
76,632,250.44 75,740,680.14
intangible assets
Land use right 73,630,095.71 73,080,928.65
Software 1,382,154.73 1,219,751.49
Non Patent technology 1,620,000.00 1,440,000.00
Notes 1：The amortization of this period was RMB 2,204,445.50.
Notes 2. This period of intangible assets mortgage please see the notes V,Consolidated financial statements of
important notes 25, Long-term loan .
13. Deferred income tax assets
(1)Recognized deferred income tax assets
Items Amount at period end Amount at period beginning
Deferred income tax assets
Provision for bad debt 5,096,726.92 5,187,111.53
Estimated losses on warranty (refund, repair and 1,802,721.27 2,712,207.82
87
黄石东贝电器股份有限公司 2012 年年度报告
Items Amount at period end Amount at period beginning
replace)
Total 6,899,448.19 7,899,319.35
(2) Temporary Differences Corresponding to the Assets or Liabilities that incurred such Differences
Items Amount
Bad debt provision for accounts receivable 32,787,237.97
Bad debt provision for other receivables 1,190,941.50
Estimated losses on warranty (refund, repair and replace) 12,018,141.81
Subtotal 45,996,321.28
14. Reserve for impairment of assets
Decrease for the current
Balance at period Provision at period Amount at
Items
beginning this period Switch period end
Switch back
cancellation
I.Provision for bad debts 32,622,900.90 1,696,079.82 34,318,980.72
Total 32,622,900.90 1,696,079.82 34,318,980.72
15. Assets under Restriction
Ending balance of the
Item Restriction reason
period (RMB’0000)
I.Assets in use for guarantee
Buildings, land and plant and machinery 18,043.25 Loan pledges
II.Other assets under restriction
Due to issued bank acceptance and loan p
Bills receivables 15,581.02
ledges
Account receivables 14,098.75 Loan pledges
Total 47,723.02
Notes ： Bill receivables , account receivables , please see ―Notes on Items of Consolidated Financial Statements 16
Short-term Borrowings‖ and 25.Long-term Borrowings.
16.Short-term loan
Condition Amount at period end Amount at period beginning
Impawn loan 244,041,070.00 105,853,700.00
Mortgage loan 31,427,500.00
Guaranteed loan 390,787,230.00 408,208,660.00
Credit loan 47,678,300.00 79,197,300.00
Total 682,506,600.00 624,687,160.00
Notes 1:The company offered RMB 30 million deposit in current period to the Bank of Communications Co., Ltd.
88
黄石东贝电器股份有限公司 2012 年年度报告
Huangshi Tieshan Branch to get USD 4.8 million short-term borrowings.
Notes 2:The company offered RMB 32.0165 million deposit in current period to the Xingye Bank .Wuhan Branch to
get USD 5 million short-term borrowings.
Notes 3:The company offered USD 16.0343 million and Euro 5.1346 million posit in current period to the
ICBC .Huangshi Tieshan Branch to get USD 20.50 million short-term borrowing.
Notes 4：As Huangshi Dongbei Electromechanical Group Co., Ltd. offered guarantee, the company obtained the USD
3 million short-term loan from China Construction Bank , Huangshi Tieshan Branch; the company obtained the USD
17.80 million and RMB 25 million short-term loan from Bank of Communications ,Tieshan Branch; the company
obtained the RMB 50 million short-term loan from Agricultural Bank of China, Shihuiyao Branch.
Notes 5：As the Company offered guarantee to the second-tier subsidiary of Wuhu Abaur Mechanical & Electrical
Co.,Ltd., obtained USD 1.9 million and RMB 20 million short-term loan from Xingye Bank, Wuhu Branch; obtained
USD 2 million short-term loan from China Merchants Bank, Wuhu Branch; obtained USD 2 million and RMB 20 mill
ion short-term loan from CITIC Bank, Wuhu Branch; obtained RMB 30 million short-term loan from the Export-Impo
rt Bank of China, Anhui Branch; obtained RMB 30 million short-term loan from Wuhu Yangzi Rural Commercial Ba
nk; obtained RMB 20 million short-term loan from Huishang Bank, Wuhu Economy Development Zone Branch.
Notes6:As the Company offered guarantee to the second-tier subsidiary of Huangshi Dongbei Electromechanical Gr
oup Solar Energy Co., Ltd., obtained RMB 3 million short-term loan from SPD Bank, Wuhan Lingjiaohu Branch,
obtained RMB 5 million short-term loan from China Merchants Bank, Huangshi Jinghua Road Branch.
Note 7: The company offered guarantee to third-tier subsidiary of Huangshi Dongbei and offered RMB 8.305 million
commercial acceptance bills as pledge to obtain RMB 39.305 million short-term loans from China Everbright Bank,
Wuhan Development Zone Branch.
Notes8:
As the Company offered guarantee the third-tier subsidiary of Huangshi Dongbei Founry Co., Ltd., it obtained RMB 2
0 million short-term loan from Hubei Bank, Huangshi Xinxialu Branch, it obtained RMB 10 million short-term loan
from SPD Bank , Wuhan Branch Lingjiaohu Sub-Branch,
obtained RMB 20 million short-term loan from Bank of Communications, Huangshi Tieshan Branch.
17.Bill payable
Amount at period end Amount at period beginning
Items
Bank acceptance 736,273,961.21 851,268,224.15
Total 736,273,961.21 851,268,224.15
Notes ：The ending balance of Bill payable for this period included RMB 736,273,961.21 due next accounting period.
18.Account payable
Amount at period end Amount at period beginning
Items Amount(RMB) Proportion( Amount(RMB)
Proportion(%)
%)
89
黄石东贝电器股份有限公司 2012 年年度报告
Amount at period end Amount at period beginning
Items Amount(RMB) Proportion( Amount(RMB)
Proportion(%)
%)
Within 1 year 864,202,989.66 91.91 646,739,853.16 71.64
1-2 years 28,509,025.77 3.03 252,492,333.07 27.96
2-3 years 43,933,561.41 4.67 135,353.84 0.01
Over 3 years 3,626,796.18 0.39 3,563,857.16 0.39
Total 940,272,373.02 100.00 902,931,397.23 100.00
Notes 1：For the accounts of shareholder unit holding the company of 5% (including 5%) or more of voting power
shares in the accounts receivable, the details please see the notes ―6. The affiliated party and the related transaction,
6. The accounts receivable and payable of the affiliated party‖;
Notes2：The closing balance of account payable is more than the beginning balance, the details please see the notes
―VI. The affiliated party and the related transaction,6. The accounts receivable and payable of the affiliated party‖;
Note 3: the situation of significant account payable aged over one year at the end of period
19.Received in advance
Amount at period end Amount at period beginning
Items Amount(RMB) Proportion( Amount(RMB)
Proportion(%)
%)
Within 1 year 13,814,294.02 93.58 110,987,713.93 96.47
1-2 years 372,962.09 2.53 3,905,422.44 3.39
2-3 years 422,902.06 2.86 9.15 0.00
Over 3 years 152,595.89 1.03 157,557.89 0.14
Total 14,762,754.06 100.00 115,050,703.41 100.00
Notes1：There were no debts payable to the shareholders of the Company holding more than 5% (including 5%) of the
total shares of the Company.
Notes2:Wuhu Abaur Mechanical & Electrical Co.,Ltd., a controlled subsidiary, received RMB 69.30 million for equit
y assignment from Huangshi Property Exchange in advance at the beginning period. The procedures of change of indu
strial and commercial registration of this equity assignment were finished on October 2013..
Notes 3:The situation of significant Received in advance aged over one year at the end of period
20.Employee salary payable
Increase in Decrease in current
Amount at period
Amount at period
current period period
Items beginning end
1.Wage,bonus,subsidy 20,262,398.81 247,309,622.59 243,908,360.26 23,663,661.14
2.Employee welfare 2,115,475.50 26,847,336.73 25,711,133.28 3,251,678.95
3.Security insurance 37,014,789.52 37,014,789.52
10,831,568.12 10,831,568.12 -
Of Which: medical insurance
90
黄石东贝电器股份有限公司 2012 年年度报告
Increase in Decrease in current
Amount at period
Amount at period
current period period
Items beginning end
Basic old-age insurance
22,057,240.95 22,057,240.95 -
premiums
Unemployment insurance 1,855,589.95 1,855,589.95 -
Work injury insurance 1,683,562.12 1,683,562.12 -
Maternity insurance 586,828.38 586,828.38 -
1,022,692.27 8,532,741.68 9,555,433.95 -
4. Public reserves for housing
5. Union funds and staff
14,880,243.76 3,003,417.15 2,690,102.45 15,193,558.46
education fee
6. Compensation paid for
306,552.00 306,552.00 -
termination of labor relationship
7.Other 1,401,907.79 1,401,907.79 -
Total 38,280,810.34 324,416,367.46 320,588,279.25 42,108,898.55
Notes：Temporarily, the company hasn’t made the payment of RMB 22.7285 million of annual performance funds in
2013, which is expected to be paid at the end of June, 2014.
21. Taxes payable
Amount at period end Amount at period beginning
Type
VAT -14,510,513.93 -3,000,090.88
Business tax 149,557.24 92,695.36
Urban maintenance and construction
2,399,055.14 4,744,264.26
tax
Enterprise income tax 33,126,241.98 22,877,903.83
House tax 2,887,832.00 1,931,041.00
Land use tax 679,208.62 430,046.68
Individual income tax 579,628.91 1,590,189.77
Educational surtax 917,270.83 2,022,328.79
Local education development fund 162,188.52 1,377,682.53
168,434.46 1,464,922.20
Embankment expenses
Stamp tax 2,861,854.40 854,052.38
Water construction Fund 89,283.24 109,857.20
Total 29,510,041.41 34,494,893.12
91
黄石东贝电器股份有限公司 2012 年年度报告
Notes ：.The standards for main taxes and tax rates are described in "Note III of Financial Statements. Taxes"
22.Dividend payable
Balance in year-end Balance in year-begin
Name
Hongkang Changxin Group Co., Ltd. 10,009,121.12 10,009,121.12
Total 10,009,121.12 10,009,121.12
23.Other payable
Balance in year-end Balance in year-begin
Items Amount(RMB) Proportion( Amount(RMB) Proportio
%) n(%)
Within 1 year 181,466,985.11 95.48 61,669,574.97 44.20
1-2 years 2,885,550.67 1.52 56,763,799.34 40.69
2-3 years 673,629.16 0.35 12,697,758.16 9.10
Over 3 years 5,035,316.56 2.65 8,384,031.26 6.01
Total 190,061,481.50 100.00 139,515,163.73 100.00
Notes 1：As of December 31, 2013, there is no other payable to an shareholder with 5% (include 5%) of total voting
shares of the company.
Notes 2：The situation of significant other payable aged over one year at the end of period
24.Non-current liability due in 1 year
(1)Type
Balance in year-end Balance in year-begin
Type
122,520,360.00
Long-term borrowings due within one year
Total 122,520,360.00
(2) Long-term borrowings due within one year
Balance in year-end Balance in year-begin
Condition
120,000,000.00
Mortgage loan
Guaranteed loan 2,520,360.00
Total 122,520,360.00
25. Long-term loan
Balance in year-end Balance in year-begin
Condition
1,440,000.00 1,440,000.00
Entrusted loan
120,000,000.00
Mortgage loan
92
黄石东贝电器股份有限公司 2012 年年度报告
Balance in year-end Balance in year-begin
Condition
Total 121,440,000.00 1,440,000.00
Notes 1. Wuhu Abaur Mechanical & Electrical Co.,Ltd., the holding subsidiary of the company, has made the
mortgage of land and buildings for the company, at the price of RMB 180.4325 million to gain the long-term loans of
RMB 120 million from Wuhan branch of China Import and Export Bank.
Notes 2：The commissioned loan RMB 1.44 million was the financial working fund allocated by Huangshi Financial
Bureau to Huangshi Dongbei Foundry Co., Ltd..
26..Long-term payable
Cost
Increase Decrease
Items for the current for the current
Balance in Balance in
year-begin period period year-end
The Special Technological
Renovation Fund for
5,350,000.00 4,837,291.67 267,500.00 4,569,791.67
Refrigeration Compressor
Industrialization
Importance Special funds 4,500,000.00 4,068,750.00 225,000.00 3,843,750.00
Compressor industrialization
12,000,000.00 11,266,666.67 600,000.00 10,666,666.67
project
Guarantee housing construction
funds in Huangshi City 690,000.00 690,000.00 32,775.00 657,225.00
Construction funds of Daye
1,046,600.00 1,046,600.00 1,046,600.00
Luoqiao new plant
Total 23,586,600.00 20,172,708.34 1,736,600.00 1,125,275.00 20,784,033.34
27.Share capital
Before this change Increase/decrease this time (+ , - ) After this change
Bo
Issuing Transferr
Propo nus Othe Subt Propo
Amount of new ed from Amount
rtion shar r otal rtion
share reserves
es
1. Shares with
conditional 120,000,000.00 51.06 120,000,000.00 51.06
subscription
1.State-owned share
2.State-owned legal
117,600,000.00 50.04 117,600,000.00 50.04
person shares
3.Other domestic
2,400,000.00 1.02 2,400,000.00 1.02
shares
Including ：
Non-state owned
domestic legal 2,400,000.00 1.02 2,400,000.00 1.02
person shares
Domestic nature
person shares
93
黄石东贝电器股份有限公司 2012 年年度报告
Before this change Increase/decrease this time (+ , - ) After this change
Bo
Issuing Transferr
Propo nus Othe Subt Propo
Amount of new ed from Amount
rtion shar r otal rtion
share reserves
es
4.Foreign
shareholding
Including ：
Overseas legal
person shares
Foreign nature
person shares
5. Executive shares
II Shares with
unconditional 115,000,000.00 48.94 115,000,000.00 48.94
subscription
1.Common shares in
RMB
2.Foreign shares in
115,000,000.00 48.94 115,000,000.00 48.94
domestic market
3.Foreign shares in
overseas market
4.Other
III.Total of shares 235,000,000.00 100.00 235,000,000.00 100.00
28. Capital reserve
Amount at period Increase in current Decrease in current Amount at period
Items beginning period period end
Share capital
180,001,555.45 180,001,555.45
premium
Other capital surplus 10,110,280.81 10,110,280.81
Total 190,111,836.26 190,111,836.26
29. Surplus reserve
Amount at period Increase in current Decrease in current Amount at period
Items beginning period period end
36,008,607.48 1,935,585.87 37,944,193.35
Statutory surplus reserve
36,008,607.48 1,935,585.87 37,944,193.35
Total
30. Retained profits
Items Amount Extraction or
distribution of the ratio
Before adjustment: Retained profit at the end of last year 342,680,456.41 ——
94
黄石东贝电器股份有限公司 2012 年年度报告
Items Amount Extraction or
distribution of the ratio
Adjustment: Retained profit at the beginning of current year ——
After Adjustment: Retained profit at the beginning of
342,680,456.41 ——
current year
Add ： Net profit attributable to the owners of parent
93,824,776.19 ——
company
Less：Withdrawing statutory surplus public reserve 1,935,585.87 10.00%
Distribution of common shares dividend
Retained profit at the end of current year 434,569,646.73
31.Operating income and operating cost
(1)Operating income
Same period of the
Items
Report period previous year
Main business income 4,120,518,976.04 4,050,249,579.83
Other business income 143,512,844.85 65,632,109.39
Total 4,264,031,820.89 4,115,881,689.22
(2)Operating cost
Same period of the
Items
Report period previous year
Main business cost 3,607,966,188.71 3,548,626,543.62
Other business cost 114,212,388.96 52,513,503.24
Total 3,722,178,577.67 3,601,140,046.86
(3) Main operating （Industry）
Report period Same period of the previous year
Name Income of Main Cost of Main
Income of Main operation Cost of Main operation
operation operation
Manufacturing 4,120,518,976.04 3,607,966,188.71 4,050,249,579.83 3,548,626,543.62
Total 4,120,518,976.04 3,607,966,188.71 4,050,249,579.83 3,548,626,543.62
(4) Main operating （Product）
Report period Same period of the previous year
Name Income of Main Cost of Main Income of Main Cost of Main
operation operation operation operation
Compressor 3,676,136,257.13 3,221,468,219.29 3,603,331,566.27 3,159,440,503.90
Auto casting 414,903,259.01 365,059,625.42 419,731,255.85 369,405,482.93
Solar water heater 29,479,459.90 21,438,344.00 27,186,757.71 19,780,556.79
Total 4,120,518,976.04 3,607,966,188.71 4,050,249,579.83 3,548,626,543.62
95
黄石东贝电器股份有限公司 2012 年年度报告
(5) Main operating （Area）
Report period Same period of the previous year
Name Income of Main Cost of Main Income of Main Cost of Main
operation operation operation operation
Domestic sales 3,380,959,066.88 2,929,738,111.27 3,352,346,813.64 2,919,651,025.27
Foreign sales 739,559,909.16 678,228,077.44 697,902,766.19 628,975,518.35
Total 4,120,518,976.04 3,607,966,188.71 4,050,249,579.83 3,548,626,543.62
(6) The top five companies in the amount
Items business income Proportion(%)
Client 1 803,723,943.43 18.85
Client 2 190,109,699.49 4.46
Client 3 173,424,852.53 4.07
Client 4 129,784,097.44 3.04
Client 5 110,637,834.02 2.59
Total 1,407,680,426.91 33.01
32.Business tax and subjoin
Same period of the previous
Items Standard
Report period year
Business tax 5% 579,713.10
Urban construction tax 7% 7,838,519.25 9,559,920.77
Education surcharge 3% 3,356,007.38 3,769,941.35
2% 1,047,997.08 1,938,563.15
Embankment expenses
Local education surcharge 2% 2,237,338.24 3,721,304.33
Water Construction Fund 0.08% 1,279,231.24 1,089,445.47
Total —— 16,338,806.29 20,079,175.07
33.Sales expenses
Items Accumulative total of current Accumulative total of same
period period of the previous year
Total 94,364,407.59 87,836,539.81
The main details are as follows：
Transport costs 58,156,293.09 52,091,962.65
Travel expenses 3,962,057.60 3,386,133.43
34..Administrative expenses
Items Accumulative total of current Accumulative total of same
period period of the previous year
Total 276,766,392.41 217,671,475.97
96
黄石东贝电器股份有限公司 2012 年年度报告
Items Accumulative total of current Accumulative total of same
period period of the previous year
The main details are as follows：
Wage 64,031,070.29 68,332,383.71
Travel expenses 24,064,266.61 19,367,981.23
Depreciation 13,072,324.56 13,034,919.32
Repair fees 2,625,082.52 2,802,166.58
Taxes 15,046,920.76 10,040,308.77
Amortization 4,892,712.02 3,978,591.38
R& D expenses 132,294,587.81 86,372,308.48
35. Financial expenses
Items Accumulative total of current Accumulative total of same
period period of the previous year
Interest expenses 42,566,324.11 60,941,113.42
Less：Interest income 11,088,937.39 9,494,445.45
Less：Exchange gains 1,300,431.54 -227,155.66
Bills discounted rate 12,764,708.96 16,561,978.17
2,631,787.83 4,269,342.66
Handling charges
Total 45,573,451.97 72,505,144.46
36. Investment income
（1） Investment income
Items Accumulative total of
Accumulative total of
same period of the
current period
previous year
Long-term equity investment income under equity
-415,141.97 -948,147.10
method
Investment loss through disposal of long-term equity
54,034,248.22
investment
Total 53,619,106.25 -948,147.10
Notes . In this period, Wuhu Abaur Mechanical & Electrical Co.,Ltd., the holding subsidiary of the company, has
transferred all the holding equity of 41.42% of Huangshi Donper Mechanical and Electrical Group Co., Ltd. to
Jiangsu Luoke Mechanical and Electrical Co., Ltd., with the transferred price of RMB 133.4716 million and the
investment cost of RMB 79.9444 million.
（2） Long term equity investment calculated via equity method：
Accumulative total of
Accumulative total of
Name same period of the Changed
current period
previous year
Huangshi Aibo Property Co., Ltd. -491,953.79 -415,373.50 The income accounted
97
黄石东贝电器股份有限公司 2012 年年度报告
Accumulative total of
Accumulative total of
Name same period of the Changed
current period
previous year
by equity method
Hubei Jinling Precision Agriculture The income accounted
76,811.82 -532,773.60
Co., Ltd. by equity method
Total -415,141.97 -948,147.10
37.Asset impairment losses
Accumulative total of same period of
Items Accumulative total of current period
the previous year
1．Loss for bad debts 1,696,079.82 4,661,255.69
Total 1,696,079.82 4,661,255.69
38. Non-operating income
(1)Details of Non-operating income
Amount of current period Amount of previous period
Included in the Included in the
Items current amount of current amount of
Amount Amount
non-operating non-operating
gains & losses gains & losses
Total profits of non-current
215,251.38 215,251.38 442,499.81 442,499.81
assets disposal
Including ： Fixed asset
215,251.38 215,251.38 442,499.81 442,499.81
disposal profits
Government subsidy 11,536,728.62 8,607,485.00 10,055,161.00 10,055,161.00
Quality of compensation 5,543,296.17 5,543,296.17 7,227,991.57 4,412,962.44
Profit of debt restructuring 287,980.64 287,980.64
Total 17,583,256.81 14,654,013.19 17,725,652.38 14,910,623.25
(2) Details of Governmental subsidies
Items
Amount of current Amount of previous
Related to asset and profit
period period
Brake Hub innovation award 400,000.00 Related to profit
VAT export rebates 2,929,243.62 Related to profit
Imported Equipment discount payment 1,410,000.00 Related to profit
Government Technology Award 1,655,500.00 618,000.00 Related to profit
Financial subsidies revenue 1,261,250.00 1,206,541.00 Related to profit
98
黄石东贝电器股份有限公司 2012 年年度报告
Items
Amount of current Amount of previous
Related to asset and profit
period period
Subsidy for patent application by
8,650.00 25,120.00
Huangshi Intellectual Property Office Related to profit
Changjiang Quality Award 1,000,000.00 Related to profit
Huangshi Economic & Technological De
velopment Zone Finance Bureau Award 2,090,500.00
Fund Related to profit
Hubei Department of Finance Treasury
2,400,000.00
Bureau Award Fund Related to profit
Compressor production project amortizati
1,092,500.00 905,000.00 Related to asset
on
Science and Technology Award 20,000.00 Related to asset
Amortization of Huangshi construction of
32,775.00 Related to asset
affordable housing funds
Export base service platform project fund
1,000,000.00
ing Related to profit
Land use tax return 2,664,300.00 Related to profit
Subsidies from social security center 796,510.00 Related to profit
Patent grants from Trade Development
70,000.00
Bureau Related to profit
Welder Skills Competition Awards from
6,000.00
Jingkai Zone Association Related to profit
Total 11,536,728.62 10,055,161.00
39. Non-operating expenses
Amount of current period Amount of previous period
Included in the Included in the
Items current amount of current amount of
Amount Amount
non-operating non-operating
gains & losses gains & losses
Losses total from disposal of
23,140,458.27 23,140,458.27 11,830,925.31 11,830,925.31
Non-current assets
Incl: loss of fixed assets
23,140,458.27 23,140,458.27 11,830,925.31 11,830,925.31
disposition
Other 2,037,621.39 2,037,621.39 1,605,024.75 1,605,024.75
Total 25,178,079.66 25,178,079.66 13,435,950.06 13,435,950.06
40. Income tax expenses
Items Accumulated amount in Accumulated amount in
current period previous year
(RMB) (RMB)
99
黄石东贝电器股份有限公司 2012 年年度报告
Items Accumulated amount in Accumulated amount in
current period previous year
(RMB) (RMB)
Income tax calculated according to tax law and
35,499,763.92 12,425,389.48
relevant provisions in a current period
Deferred income tax 999,871.16 -498,826.88
Total 36,499,635.08 11,926,562.60
41. Calculation of Basic earnings per share and Diluted earnings per share
Items Code Amount for this year Amount for last year
Net profit attributable to the Company’s
P0 93,824,776.19 60,515,708.87
ordinary shareholders (Ⅰ)
Net profit attributable to the Company’s
ordinary shareholders after deducting P0 54,216,908.08 58,325,053.43
non-recuring gains and losses(Ⅱ)
Amount of stock at the year-beginning S0 235,000,000.00 235,000,000.00
Increase of amount of stock owing to capital
reserve transferred to share capital or S1
distribution of stock dividend.
Increase of amount of stock owing to issue to
bonds newly or bonds issued to be transfer to Si
stock.
Decrease of amount stock due to
Sj
purchase-back stock. Etc.
Decrease of amount of stock in the reporting
Sk
period
Amount of months in the reporting period. M0 12 12
Accumulated months since the sec9ond month
Mi
when increase of amount of stock
Accumulated months since the second month
Mj
when decrease of amount of stock.
Average weighted amount of stock
S 235,000,000.00 235,000,000.00
outstanding
Basic eamings per share(Ⅰ) 0.399 0.258
Basic eamings per share(Ⅱ) 0.231 0.248
Net profit attributable to ordinary shareholders
P1 93,824,776.19 60,515,708.87
of parent company after adjustment(Ⅰ)
Net profit attributable to the company’s
ordinary shareholders after deducting
P1 54,216,908.08 58,325,053.43
non-recuring gains and losses after
adjustment(Ⅱ)
Increase amount of average weighted of stock
owing to realization of warrants, stock options
and convertible bonds
Average weighted amount of stock
outstanding after consideration of diluted 235,000,000.00 235,000,000.00
affect
100
黄石东贝电器股份有限公司 2012 年年度报告
Items Code Amount for this year Amount for last year
Diluted earnings per share(Ⅰ) 0.399 0.258
Diluted earning per share(Ⅱ) 0.231 0.248
（1） Basic earnings per share
Basic earnings per share= P0÷S
S= S0＋S1＋Si×Mi÷M0– Sj×Mj÷M0-Sk
Including：P0 Means net profit attributable to ordinary shareholders of parent company or net profit attributable
to the company’s ordinary shareholders after deducting non-recurring gains and losses; S means average weighted
amount of common stock outstanding; S0 Means amount of common stock at the year-beginning; S1Means increase
of amount of common stock owing to capital reserve transferred to share capital or distribution of stock dividend Si
Means increase of amount of common stock owing to issue of bonds newly or bonds issued to be transfer to common
stock； Sj Means decrease of amount of common stock due to purchase-back common stock , etc; Sk Means decrease
of amount of common stock in the reporting period；Mi Means accumulated months since the second month when
increase of amount of common stock；Mj means accumulated months since the second month when decrease of
amount of common stock.Diluted earnings per share
(2)Diluted earnings per share
Diluted earnings per share=P1/(S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ Increase amount of average wighted of
common stock owing to realization of warrants, stock options and convertible bonds.
Including，P1 Means net profit attributable to ordinary shareholders of the company or net profit attributable to
the company’s ordinary shareholders after deducting non-recurring gains and losses after adjustment in
consideration of the effect of dilutive potential ordinary share, regulated by accounting criteria for enterprises in
china or other related regulations.when calculation of diluted earnings per share , all effects of net profit
attributable to the company’s ordinary shareholders after deducting non-recurring gains and losses after
adjustment and average weighted amount of common stock outstanding, associated with dilutive potential
ordinary share, calculating of diluted earnings per share to the degree that in minimum of EPS, According to their
degree of descending order of diluted earnings per share referred.
42. Note Cash flow statement
1. Other cash received from business operation
Same period of the
Items Report period previous year
Correlation between units 54,546,966.10 39,464,253.67
Fine and the quality of compensation 4,536,833.96 461,206.49
Interest income 11,088,937.39 9,494,445.45
Disburse payment of water & electricity fees 1,324,622.73 293,307.14
Government Subsidy 8,607,485.00 7,297,661.19
101
黄石东贝电器股份有限公司 2012 年年度报告
Same period of the
Items Report period previous year
Total 80,104,845.18 57,010,873.94
2.Other cash payable related to operating activities
Same period of the
Items Report period previous year
Office and other expenses 92,127,714.00 71,906,295.19
Water & electricity 3,789,830.44 3,379,673.20
Technology Development expenses 45,922,279.33 5,099,076.63
Other unit between 36,270,750.88 25,949,038.37
Fine and the quality of compensation 100.66 1,144,780.12
Total 178,110,675.31 107,478,863.51
43. Supplement Information of Cash flow statement
(1)Supplement Information of Cash flow statement
Same period of the
Items Report period previous year
1. Net profit adjusted to cash flow from business operation
Net profit 116,638,753.46 103,403,043.98
Add：Provision from assets impairment 1,696,079.82 4,661,255.69
Fixed assets depreciation,Oil and gas depreciation, Produce
97,563,480.92 99,502,506.71
matter depreciation
Amortization of intangible assets 2,204,445.50 2,187,387.11
Amortization of long-term expenses to be amortized 161,601.69
The loss from the disposal of fixed assets, intangible assets
22,723,033.31 11,388,425.50
and other long-term assets
Loss from scrapping of fixed assets 202,173.58
Loss from fair change
Financial expenses 55,861,477.51 60,941,113.42
Investment loss -53,619,106.25 948,147.10
Decrease of deferred tax assets 999,871.16 -498,826.88
Increase of deferred tax Liabilities
Decrease of inventories -56,693,837.00 -23,456,041.23
Decrease of operating accounts receivable -132,811,890.43 -223,051,385.28
Increase of operating accounts payable -2,192,641.58 287,055,453.17
Other
102
黄石东贝电器股份有限公司 2012 年年度报告
Same period of the
Items Report period previous year
Net cash flow generated from operating activities 52,733,441.69 323,081,079.29
II.Investment and financing activities not involving cash receipts
and expenditure
Transferring debts to capital
Convertible corporate bond to mature within one year
Leasing fixed assets through financing
III．The information of net increase of cash and cash equivalent
Balance of cash at the End of the period 441,509,529.30 471,346,311.99
Less: Balance of cash at the beginning of the period 471,346,311.99 466,002,406.17
Add: Balance of cash equivalent at the end of the period
Less: Balance of cash equivalent at the beginning of the period
Net increase of cash and cash equivalent -29,836,782.69 5,343,905.82
(2)Cash and cash equivalents
Same period of the
Items Report period previous year
441,509,529.30 471,346,311.99
I. Cash
2,194.95 35,211.46
Of which: Cash in stock
Bank savings could be used at any time 257,966,904.97 297,336,788.95
Other monetary capital could be used at any time 183,540,429.38 173,974,311.58
Usable money in Central Bank
Money saved in associated financial bodies
Money from associated financial bodies
II. Cash equivalents
Of which: bond investment which will due in three months
441,509,529.30 471,346,311.99
III. Balance of cash and cash equivalents at the period end
Notes ：In the ending balance of monetary capital, the amount of security deposit for the bills with a term of more than
three months is RMB 86,602,506.29.
VI.Related parties and Related transactions
1.Parent Company of the Company
103
黄石东贝电器股份有限公司 2012 年年度报告
The
Parent The
Registe compan Parent
Relat Regis red The ultimate Organizat
Legal y of the compan
Name
ed
Type
tered
represe Nature capital compan y of the
controlling ion
partie addre party of the Code
ntative （RMB y’s compan
s ss company
’0000） sharehol y’s vote
ding ratio(%)
ratio(%)
Production Huangshi
Paren Limit Yang
Huangshi Dongbei and sales of Dongbei
t ed Huan 24,184.
Electromechanical Baicha refrigeratio 50.04 50.04 Electromecha 73683763-9
Com Com 00
Group Co., Ltd. gshi n compress nical Group
pany pany
ng ors Co., Ltd.
1. Subsidiary of the Company
The
The
Parent
Parent
compa
Register compa
Type ny of Organiza
Type of ed ny of
Registe Legal the tion
of capital the
Full name of subsidiary subsidi red represe Nature compa Code
Enter compa
ary address ntative （RMB ny’s
prise ny’s
’0000） shareh
vote
olding
ratio(
ratio(
%)
%)
Huangshi Dongbei
Control Limit
Yang Production and sales
Electromechanical ling ed Huangs 2,486.12 83.03 83.03 70681674-9
Baicha of solar energy water
subsidi Com
Group Solar Energy Co., hi ng heater
ary pany
Ltd.
Production and sales
of refrigeration
Wuhu Abaur Control Limit
Yang
ling ed compressor , 5,000.00 75.00 75.00 78653614-7
Mechanical & subsidi Com Wuhu Baicha
Electrical Co., Ltd.. ng Compressor and
ary pany
Electrical Organ
casting
Casting of small and
Control Limit medium-sized cast
Huangshi Dongbei ling ed Huangs Chen
3,281.41 51.28 51.28 17841625-7
Founry Co., Ltd. subsidi Com Baoping products, house
ary pany hi
renting and parking
service.
Sales of Refrigeration
Compressor,
Control Limit
Huangshi Dongbei Refrigeration
ling ed Wang USD
International Trade Co., BVI Guhua Equipment and Parts , 100.00
100.00 100.00
subsidi Com
Ltd. Photoelectric products
ary pany
and solar water
heater ,etc.
3.Affiliated enterprise
104
黄石东贝电器股份有限公司 2012 年年度报告
Organization
Code
Name Relationship with the Company
Affiliated enterprise
Huangshi Aibo Property Co., Ltd. 55392272-6
Affiliated enterprise
Hubei Jinling Precision Agriculture Co., Ltd. 55392325-1
Notes ：The details of affiliated enterprise please see the Note 5 of the notes of the important items in
Consolidated Financial Statements, Note 7 Investment in Affiliated enterprise.
4. Other related parties of the Company
Organization
Code
Name Relationship with the Company
Also controlled by Huangshi
Dongbei Electromechanical 73911098-8
Huangshi Dongbei Refrigerating Co., Ltd. Group Co., Ltd.
One of the shareholders of the
parent Company Huangshi
Huangshi Aibo Technology Co., Ltd. 79327755-1
Dongbei Electromechanical
Group Co., Ltd.
Wuhu Farici Investment Co., Ltd. Other related party 69896511-0
Hubei Xingdong Investment Co., Ltd. Other related party 58548062-7
One of the shareholders of the
parent Company Huangshi
Jiangsu Luoke Electrical Co., Ltd. 13730779-1
Dongbei Electromechanical
Group Co., Ltd.
Related party controlled
Huangshi Chenxin Photoelectric Co., Ltd. 72578089-2
subsidiary Company
Related party controlled
Huangshi Dongbei New Energy Co., Ltd 58249444-1
subsidiary Company
Related party controlled
Huangshi Jinling Property Services Co., Ltd. 56831677-X
subsidiary Company
Related party controlled
Wuhu Abaur Real estate Co., Ltd. 55781543-4
subsidiary Company
Hubei Jinling Fine agricultural Linyang Co., Related party controlled
55971853-1
Ltd. subsidiary Company
Related party controlled
Huangshi Jinbei Dairy Co., Ltd. 05002047-2
subsidiary Company
5.Related transactions
(1) Purchase goods and receiving services
Type of related Accumulated amount in current period
Name of related party Method
transactions
105
黄石东贝电器股份有限公司 2012 年年度报告
Pricing policy
Proportion and decision
Amount
% making
procedures
Huangshi Dongbei Refrigerating Compressor Market
Purchase 4.09
Co., Ltd. parts 131,634,812.37 price
Huangshi Dongbei Refrigerating Market
Sales Compressor 0.48
Co., Ltd. 17,571,654.49 price
Huangshi Dongbei Compressor Market
Purchase 1.36
Electromechanical Group Co., Ltd. parts 43,860,119.32 price
Huangshi Dongbei Compressor Market
Sales 0.0051
Electromechanical Group Co., Ltd. parts 186,196.62 price
Compressor Market
Huangshi Aibo Technology Co., Ltd. Purchase 12.93
parts 416,507,931.10 price
Market
Huangshi Aibo Technology Co., Ltd. Sales Material 1.27
46,793,861.78 price
Machine Market
Huangshi Aibo Technology Co., Ltd. Sales 98.40
Equipment 22,047,275.88 price
Compressor Market
Jiangsu Luoke Electric Co., Ltd. Purchase 14.09
parts 453,969,540.76 price
Compressor Market
Jiangsu Luoke Electric Co., Ltd. Sales 0.0036
parts 132,144.32 price
Market
Jiangsu Luoke Electric Co., Ltd. Sales share transfer 100.00
133,471,600.00 price
Commodity Market
Huangshi Aibo Property Co., Ltd. Purchase 15,860,270.00 100.00
House price
Agricultural Market
Huangshi Jinbei Dairy Co., Ltd. Purchase 2,683,549.00 14.73
products price
Hubei Jinling Fine Agriculture Co., Agricultural Market
Purchase 1,834,454.00 10.07
Ltd. products price
(2) Related Leasing
Lease Basis for
Lease Lease revenue
Type of commen determining
Lesson Lessee terminati Lease income impact on the
asset lease cement lease
on date company
date income
Market
Huangshi Dongbei Huangshi Dongbei price when
October October smaller
Electromechanical Electrical Land lease 36,000.00 contract
2002 2052
Group Co., Ltd. Appliance Co., Ltd. being
signed
Market
Huangshi Dongbei Huangshi Dongbei price when
July Non-fixe Smaller
Electrical Appliance Refrigerating Co., House lease 2,387,074.16 contract
2011 d term
Co., Ltd. Ltd. being
signed
Market
Huangshi Dongbei price when
Huangshi Jinbei June June Smaller
Electrical Appliance House lease 93,024.00 contract
Dairy Co., Ltd. 2012 2015
Co., Ltd. being
signed
106
黄石东贝电器股份有限公司 2012 年年度报告
Lease Basis for
Lease Lease revenue
Type of commen determining
Lesson Lessee terminati Lease income impact on the
asset lease cement lease
on date company
date income
Market
Huangshi Dongbei Huangshi Dongbei price when
January January Smaller
Electrical Appliance New Energy Co., House lease 102,600.00 contract
2013 2014
Co., Ltd. Ltd being
signed
Market
Huangshi Dongbei
Huangshi Dongbei price when
Electromechanical January Non-fixe Smaller
Refrigerating Co., House lease 1,944,000.00 contract
Group Solar Energy 2009 d term
Ltd. being
Co., Ltd.
signed
Market
Wuhu Abaur Mechani price when
Jiangsu Luoke February February Smaller
cal & Electrical Co.,L House lease 306,540.00 contract
Electric Co., Ltd. 2011 2014
td. being
signed
Market
Wuhu Abaur Mechani price when
Wuhu Abaur Proper July June Smaller
cal & Electrical Co.,L House lease 3,000.00 contract
ty Co., Ltd. 2013 2015
td. being
signed
Market
Wuhu Abaur Mechani Wuhu Farici price when
July June Smaller
cal & Electrical Co.,L Investment Co., House lease 7,200.00 contract
2013 2015
td. Ltd. being
signed
Notes 1: In October 2002, the Company signed Land Use Right Lease Agreement with Dongbei Electromechanical
Group. Dongbei Electromechanical Group agreed to lease the land covering area of 15,963.04 square metres located
at 5 Wuhuang Road, Tieshan District, Huangshi City to the Company for its use. The term of lease is 50 years.
Notes 2: In July 2011, the Company leased the factory buildings in Huangshi Huangjinshan Industrial Park with
floorage of 11976.48 square meters to Huangshi Dongbei Refrigeration Co., Ltd. for use. The contract does not
specify the expiration date of lease. As agreed, this contract will be automatically extended upon its expiration in case
both parties have no objection.
Notes 3: In January 2009, Huangshi Dongbei Electromechanical Group Solar Energy Co., Ltd. leased the factory
buildings in Dongbei Industrial Park (located at 5 Wuhuang Road, Tieshan District, Huangshi City, Hubei Province)
with floorage of 18000 square meters to Huangshi Dongbei Refrigeration Co., Ltd. for use. The lease term specified in
the contract is one year. As agreed, this contract will be automatically extended upon its expiration in case both parties
have no objection.
(4)Related Guarantee
The details of affiliates guarantees please see Note 5 of the notes of the important items in consolidated financial
107
黄石东贝电器股份有限公司 2012 年年度报告
statements, Note16, short-term loans and Note 25, long-term loans.
6. Bewtween funds of related parties
Ⅰ. Bewtween funds of related parties
Balance at period
Name Related parties Balance at period end
beginning
Account receivable Huangshi Dongbei Refrigerating Co., Ltd. 10,794,555.97 4,434,797.28
Account receivable Huangshi Aibo Technology Co., Ltd. 4,639,814.95
Huangshi Dongbei Electromechanical
Prepayments 11,570,725.53 5,819,937.40
Group Co., Ltd.
Prepayments Huangshi Dongbei Refrigerating Co., Ltd. 3,854,076.14 5,984,023.45
Prepayments Huangshi Dongbei New Energy Co., Ltd 3,971,000.00
Ⅱ. Spreadsheet of Accounts Receivable from related parties
Balance at period
Name Related parties Balance at period end
beginning
Huangshi Dongbei Refrigerating Co.,
Account payable 1,254,393.15
Ltd.
Account payable Huangshi Aibo Technology Co., Ltd. 46,512,989.29 46,857,105.03
Account payable Jiangsu Luoke Electric Co., Ltd. 59,240,544.89 52,832,770.71
VII. Contingent events
As of December 31, 2013, the Company did not have material contingent events to be disclosed.
VIII.Commitments event
As of December 31, 2013, no any significant commitment was made.
IX. Events Occurring After the Balance Sheet Date.
As of the report date, the Company did not have Future items balance sheet items to be disclosed.
X. Other significant events
On November 22, 2013, the second provisional Board of Directors of the company has examined and approved
―Proposal on Establishment of Subsidiary Invested in Wuhan Jiangxia District‖, and decided to set up a wholly owned
subsidiary in Wuhan, with the registered capital of RMB 8 million. The relevant procedure is being conducted.
XI. Notes to Main items of financial statements of parent company
1.Account receivables
108
黄石东贝电器股份有限公司 2012 年年度报告
(1)Classification of Accounts receivables
Amount in year-end
Book Balance Bad debt provision
Type
Amount Proportio Amount Proportio
n(%) n(%)
1. Receivables with major individual amount and bad debt
provision provided individually
733,533,031.0 26,599,845.5
2. Receivables provided bad debt provision in groups 100.00 3.63
0 9
733,533,031.0 26,599,845.5
Group 1（Account age Analysis ） 100.00 3.63
0 9
733,533,031.0 26,599,845.5
Subtotal of group 100.00 3.63
0 9
3. Account receivable with minor individual amount but bad
debtprovision is provided
733,533,031.0 26,599,845.5
Total 100.00 3.63
0 9
Balance at period beginning
Bad debt reserve
Book balance
Type
Proporti
Amount Proportio
Amount on
n(%)
(%)
1. Receivables with major individual amount and bad debt
provision provided individually
714,850,688.9 25,822,332.2
2. Receivables provided bad debt provision in groups 100.00 3.61
6 9
714,850,688.9 25,822,332.2
Group 1（Account age Analysis ） 100.00 3.61
6 9
714,850,688.9 25,822,332.2
Subtotal of group 100.00 3.61
6 9
3. Account receivable with minor individual amount but bad debt
provision is provided
Total 714,850,688.96 100.00 25,822,332.29 3.61
Notes 1: The accounts receivable with significant individual amount and appropriation of provisions for doubtful
accounts individually, refers to the receivables of single amount beyond RMB5 million (including RMB5 million), if
there is no depreciation after depreciation test made, the company shall appropriate provisions for doubtful accounts
according to account age.
Notes 2: The top five account receivables of the end of period added up to RMB438,326,690.17, 59.76 % of the total
account
In groups, the receivables status of provisions for doubtful accounts shall be appropriated according to aging analysis
method.
Account Amount at period end Amount at period beginning
109
黄石东贝电器股份有限公司 2012 年年度报告
age Bad debt Bad debt
Proportion( Proportio
Book balance reserve Book balance reserve
%) n(%)
Within 1 year 719,245,389.20 98.05 13,958,575.18 700,326,944.50 97.97 13,703,499.77
1-2 years 68,824.89 0.01 3,441.24 2,165,920.32 0.30 108,296.02
2-3 years 2,113,992.49 0.29 634,197.75 482,982.50 0.07 144,894.75
3-4 years 252,982.50 0.03 151,789.50 22,999.72 0.00 13,799.83
4-5 years
Over 5 years 11,851,841.92 1.62 11,851,841.92 11,851,841.92 1.66 11,851,841.92
Total 733,533,031.00 100.00 26,599,845.59 714,850,688.96 100.00 25,822,332.29
（2）There are no receivables from any shareholders held over 5% (inclusive5%) voting shares of the Company.
(3) Account receivable include the following foreign currency balances
Foreign Year-end balance Year-beginning balance
Currency of
Exchange Original
Name Original currency rate RMB equivalent currency Exchange rate RMB equivalent
USD 11,884,756.66 6.0969 72,460,172.88 10,777,096.35 6.2855 67,739,439.12
Euro 3,185,679.81 8.4189 26,819,919.75 1,919,845.48 8.3176 15,968,506.77
Total —— —— 99,280,092.63 —— —— 83,707,945.89
2. Other receivables
（1）Other Other receivables presented by types
Amount at period end
Bad debt reserve
Book balance
Type Proporti
on of
Amount Proportio
Amount provisio
n(%)
n
(%)
1. Receivables with major individual amount and bad debt
provision provided individually
2. Receivables provided bad debt provision in groups 9,506,498.15 100.00 1,102,672.89 11.60
Group 1（Account age Analysis ） 9,506,498.15 100.00 1,102,672.89 11.60
Subtotal of group 9,506,498.15 100.00 1,102,672.89 11.60
3. Account receivable with minor individual amount but bad
debt provision is provided
Total 9,506,498.15 100.00 1,102,672.89 11.60
Type Balance at period beginning
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黄石东贝电器股份有限公司 2012 年年度报告
Bad debt reserve
Book balance
Proporti
on of
Amount Proportio
Amount provisio
n(%)
n
(%)
1. Receivables with major individual amount and bad debt
provision provided individually
2. Receivables provided bad debt provision in groups 10,858,144.02 100.00 989,175.17 9.11
Group 1（Account age Analysis ） 10,858,144.02 100.00 989,175.17 9.11
Subtotal of group 10,858,144.02 100.00 989,175.17 9.11
3. Account receivable with minor individual amount but bad
debt provision is provided
Total 10,858,144.02 100.00 989,175.17 9.11
Notes：The Other receivable with significant individual amount and appropriation of provisions for doubtful accounts
individually, refers to the receivables of single amount beyond RMB3 million (including RMB3 million), if there is no
depreciation after depreciation test made, the company shall appropriate provisions for doubtful accounts according to
account age.
In groups, other receivables status of provisions for doubtful accounts shall be appropriated according to aging
analysis method.
Amount at period end Amount at period beginning
Account Bad debt Bad debt
age Proportion(
Book balance Proportion(%) reserve Book balance reserve
%)
Within 1 year 7,958,724.56 83.71 159,174.49 8,405,677.96 77.41 168,113.56
1-2 years 6,200.15 0.07 310.01 1,090,941.86 10.05 54,547.09
2-3 years 758,835.78 7.98 227,650.73 168,000.00 1.55 50,400.00
3-4 years 168,000.00 1.77 100,800.00 1,193,524.20 10.99 716,114.52
4-5 years 614,737.66 6.47 614,737.66
Total 9,506,498.15 100.00 1,102,672.89 10,858,144.02 100.00 989,175.17
（2）There are no other receivables from any shareholders held over 5%(includive5%) voting shares of the
company.
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黄石东贝电器股份有限公司 2012 年年度报告
3.Long-term Equity investment
Percentage
Percentage of
Beginnin of the
Accoun Ending the owned Impairme Cash
Investme g balance voting
Invested business ting Changes balance of shares of the nt dividends
nt cost of the shares of
method the period invested provision this period
year the invested
business (%)
business(%)
Huangshi Dongbei
Cost 22,485,20 22,485,20 22,485,20
Electromechanical Group 83.03 83.03
method 2.90 2.90 2.90
Co., Ltd.
Wuhu Abaur Mechanical & Cost 33,339,80 33,339,80 33,339,80
75.00 75.00
Electrical Co.,Ltd. Method 0.00 0.00 0.00
Dongbei International Trade Cost 6,821,274 6,821,274 6,821,274
100.00 100.00
Co.,Ltd. Method .70 .70 .70
—— 62,646,27 62,646,27
Total —— —— ——
7.60 7.60
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黄石东贝电器股份有限公司 2012 年年度报告
4.Operating income and operating cost
(1)Operating income
Same period of the previous
Items
Report period year
Main business income 3,297,066,497.91 2,977,443,528.39
Other business income 145,596,431.81 85,965,109.79
Total 3,442,662,929.72 3,063,408,638.18
(2)Operating cost
Same period of the previous
Items
Report period year
Main business cost 3,051,614,529.62 2,711,030,915.13
Other business cost 134,928,468.81 83,117,025.91
Total 3,186,542,998.43 2,794,147,941.04
(3) Main operating （Industry）
Report period Same period of the previous year
Name Income of Main Cost of Main Income of Main Cost of Main
operation operation operation operation
3,297,066,497.9 3,051,614,529.6 2,977,443,528.3 2,711,030,915.1
Manufacturing
1 2 9 3
3,297,066,497.9 3,051,614,529.6 2,977,443,528.3 2,711,030,915.1
Total
1 2 9 3
(4) Main operating （Product）
Report period Same period of the previous year
Name Income of Main Cost of Main Income of Main Cost of Main
operation operation operation operation
Compressor 3,297,066,497.91 3,051,614,529.62 2,977,443,528.39 2,711,030,915.13
Total 3,297,066,497.91 3,051,614,529.62 2,977,443,528.39 2,711,030,915.13
(5) Main operating （Area）
Report period Same period of the previous year
Name Income of Main Cost of Main Income of Main Cost of Main
operation operation operation operation
2,688,862,039.3 2,486,515,646.5 2,473,429,629.4 2,254,117,878.8
Domestic sales
1 0 7 2
Foreign sales 608,204,458.60 565,098,883.12 504,013,898.92 456,913,036.31
3,297,066,497.9 3,051,614,529.6 2,977,443,528.3 2,711,030,915.1
Total
1 2 9 3
Notes：The top five sales revenues of this period added up to RMB 1,662,061,761.19, 48.28% of the total sales
revenues.
5. Supplement Information of Cash flow statement
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黄石东贝电器股份有限公司 2012 年年度报告
Same period of the
Items
Report period previous year
I.Adjusting net profit to net cash flow in operating activities
Net profit 19,355,858.73 23,972,934.93
Add: Asset devaluation reserve provided 891,011.02 3,767,861.66
Fixed assets depreciation,Oil and gas depreciation, Produce
57,929,382.25 61,003,532.44
matter depreciation
Amortization of intangible assets 1,135,595.61 1,054,610.05
Amortization of long-term expenses to be amortized
The loss from the disposal of fixed assets, intangible assets
21,162,783.91 8,107,124.85
and other long-term assets
Loss from scrapping of fixed assets
Loss from fair change
Financial expenses 28,431,296.67 38,321,413.09
Investment loss
Decrease of deferred tax assets 775,834.90 -137,587.67
Increase of deferred tax Liabilities
Decrease of inventories -82,739,883.51 -53,657,729.75
Decrease of operating accounts receivable 97,699,952.46 -56,965,965.16
Increase of operating accounts payable -141,169,986.63 241,027,293.05
Other
Net cash flow generated from operating activities 3,471,845.41 266,493,487.49
II.Investment and financing activities not involving cash receipts
and expenditure
Transferring debts to capital
Convertible corporate bond to mature within one year
Leasing fixed assets through financing
III、Net increase of cash and cash equivalent
Balance of cash at the end of the period 247,510,121.61 239,540,473.29
Less: Balance of cash at the beginning of the period 239,540,473.29 268,515,094.18
Add: Balance of cash equivalent at the end of the period
Less: Balance of cash equivalent at the beginning of the period
Net increase of cash and cash equivalent 7,969,648.32 -28,974,620.89
Notes : In the ending balance of monetary capital, the amount of security deposit for the bills with a term of more than
three months is RMB32,148,749.69.
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黄石东贝电器股份有限公司 2012 年年度报告
XII. Supplement Information
1. Non-recurring gains and losses of current year
（1）Calculation of non-recurring gains and losses below, in accordance with No.1, Information Disclosure
interpretative Bulletin for public offering of securities of enterprises , namely non-recurring gains and losses (Version
of 2008), China securities Regulatory Commission Announcement {2008} No.43 } Issued by China securities
regulatory commission.
Items Amount Notes
1．Gain/loss form disposal of non-current assets and Provision for impairment of
31,109,041.33
assets including the preparation of the write-off part .
2．Tax refund, deduction and exemption that is examined and approved by authority
exceeding or has no official approval document.
3．Governmental Subsidy accounted as current gain/loss, except for those subsidies
at with amount or quantity fixed by the national government and closely related to 8,607,485.00
the Company’s business operation.
4．Capital occupation fee collected from non-financial organizations and accounted
393,827.10
as current gain/loss.
5．Income from the exceeding part between investment cost of the Company paid for
obtaining subsidiaries, associates and joint-ventures and recognizable net assets fair
value attributable to the Company when acquiring the investment
6．Gains and losses from exchange of non-non-monetary assets
7．Gains and losses from assets under trusted investment or Management
8．Asset impairment provisions for force major such as natural disasters
9．Gain/loss from debt reorganization
10.Enterprise reorganization expenses, such as payment to stuff placement and
consolidation expenses
11．Gain/loss from trades obviously departed from fair value
12．Net gain/loss of current term from consolidation of subsidiaries under common
control from beginning of term to the consolidation date
13．Gain/loss from debt forecasting without connection to the main business
operation
14．In addition to normal business with the company effective hedging related
business, holders of tradable financial assets, transactions and financial liabilities
arising from changes in fair value gains and losses, as well as the disposal of trading
of financial assets, trading financial liabilities and available-for-sale financial assets
gains return on investment;
15．Single impairment test for impairment of receivables transferred back to
preparation
16．Gains and losses obtained from external trusted loans
17．The use of fair value measurement model of follow-up to the fair value of real
estate investment gains and losses arising from changes
18．According to tax, accounting and other laws, regulations, the requirements of the
current Gain/loss for a one-time adjustment of the impact of the current Gain/loss;
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黄石东贝电器股份有限公司 2012 年年度报告
Items Amount Notes
19．Entrusted with the operating of the trust to obtain fee income
20．Other non-operating income and expenditure except for the aforementioned
6,722,899.04
items
21．Other non-recurring Gains/loss items
22.Amount of influence of minority interests -200,396.48
23.Amount of influence of income tax -7,024,987.88
Total 39,607,868.11
(2) The item and reason of recurrent profit and loss in the government grants accounted in current profit and loss:
Items Amount Reason
As per the relevant laws and
Levy-refund VAT 2,929,243.62
regulations of taxes
2.Return on equity and earnings per share
(1)For this year
Earnings per share
Weighted average
Profit of the reporting period return on equity Diluted
Basic earnings
（%） earnings per
per share
share
Net profit attributable to shareholders of parent company 11.03 0.399 0.399
Net profit attributable to shareholders of parent company
6.37 0.231 0.231
after deduction of non-current gains and losses
(2)For last year
Earnings per share
Weighted average
Profit of the reporting period return on equity Diluted
Basic earnings
（%） earnings per
per share
share
Net profit attributable to shareholders of parent company 8.89 0.258 0.258
Net profit attributable to shareholders of parent company
8.57 0.248 0.248
after deduction of non-current gains and losses
3.Abnormal items of main financial statements and reasons for abnormality.
(1)Balance sheet
At the balance sheet, no significant contingencies need to be disclosed.
(2)Profit Statement
Amount at
Amount at Amount of Magnitude of
Items period Notes
period end change change%
beginning
Investment income 53,619,106.25 -948,147.10 54,567,253.35 -5755.15 Notes 1
116
黄石东贝电器股份有限公司 2012 年年度报告
Financial expenses 45,573,451.97 72,505,144.46 -26,931,692.49 -37.14 Notes 2
Income tax expenses 36,499,635.08 11,926,562.60 24,573,072.48 206.04 Notes 1
Note 1: The main reason of the investment incomes and the income tax expenses greatly increasing in this period is
that an increase of disposal income produced by the second subsidiary of
Wuhu Abaur Mechanical & Electrical Co.,Ltd. selling the equity, and accounted into the corresponding payable
income tax of enterprise.
Note 2: The main reason of the financial expenses significantly reducing in this period is that the company has greatly
used the lower interest of foreign loans after the analysis of international change in exchange rate in this period, to
result in the significant decrease of bill discounted and interest expenses.
XIII. Approval of the financial statement
The financial statement have been approved by the board of directors of the Company in April 24, 2014.Based on the
articles of association , the financial statements would be submitted to General Shareholders meeting .
Huangshi Dongbei Electrical Appliance Co., Ltd.
April 24, 2014
117
