Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
BINGSHAN REFRIGERATION & HEAT TRANSFER TECHNOLOGIES CO., LTD.
CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2024
(NOT AUDITED)
1
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
BALANCE SHEET
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. June 30, 2024 Unit: RMB Yuan
30-June-2024 1-Jan-2024
Items
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 779,683,254.82 66,606,428.27 951,039,570.11 177,430,880.63
Financial assets which are measured by fair value and
which changes are recorded in current profit and loss
Derivative financial assets
Transaction financial assets
Notes receivable 252,970,529.69 39,845,134.12 353,428,922.42 64,984,113.98
Accounts receivable 1,822,615,451.67 643,587,099.41 1,576,433,924.16 612,933,182.91
Receivables financing 233,756,806.93 8,195,563.11 303,585,218.53 13,562,917.97
Accounts paid in advance 138,528,922.61 59,064,338.78 153,388,660.48 62,988,427.81
Other receivables 48,582,815.99 37,547,310.48 41,396,223.27 138,883,665.74
Interest receivables
Dividend receivable 3,856,753.95 9,919,648.18 14,495.00 110,000,000.00
Inventories 1,444,472,018.25 342,546,991.86 1,638,139,479.14 394,763,078.40
Contract assets 234,649,990.35 112,017,902.53 237,076,878.71 106,401,142.42
Assets held for sale
Non-current asset due within one year
Other current assets 18,375,813.80 4,219,681.80 26,074,342.33 3,046,484.01
Total current assets 4,973,635,604.11 1,313,630,450.36 5,280,563,219.15 1,574,993,893.87
Non-current assets:
Finance asset held available for sales
Held-to-maturity investment
Long-term account receivable
Long-term equity investment 534,636,892.01 2,959,504,194.27 521,274,947.50 2,930,381,144.87
Other Non-current financial assets 149,514,460.99 148,199,318.49 164,024,771.63 162,709,629.13
Investment property 120,704,807.72 85,819,185.00 123,589,681.50 86,587,170.43
Fixed assets 1,253,644,762.42 607,126,963.25 1,291,851,402.46 632,491,373.17
Construction in progress 95,741,358.83 43,838,871.81 114,801,351.21 42,867,809.00
Right of use assets 25,726,346.96 12,704,287.08 30,548,057.08 13,360,039.29
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 204,523,392.65 66,464,362.37 210,554,161.22 68,437,853.58
Expense on Research and Development
Goodwill 286,402,171.93 286,402,171.93
Long-term expenses to be apportioned 6,669,816.32 3,874,703.37 5,346,321.60 4,434,379.95
Deferred income tax asset 117,187,047.63 28,797,141.79 113,648,859.53 27,809,290.39
Other non-current asset 20,243,349.44 20,243,349.44
2
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Total non-current asset 2,814,994,406.90 3,956,329,027.43 2,882,285,075.10 3,969,078,689.81
Total assets 7,788,630,011.01 5,269,959,477.79 8,162,848,294.25 5,544,072,583.68
Current liabilities:
Short-term loans 288,761,386.17 239,000,000.00 262,287,784.38 219,000,000.00
Financial liabilities which are measured by fair value
and which changes are recorded in current profit and
loss
Derivative financial liabilities
Transaction financial liabilities
Notes payable 473,387,058.60 108,188,273.53 670,720,999.48 172,920,936.32
Accounts payable 1,713,399,811.85 401,732,354.17 1,655,835,363.01 418,383,161.14
Accounts received in advance
Contract liabilities 659,709,451.48 67,521,215.43 787,685,294.53 108,021,877.17
Wage payable 77,299,270.67 96,755.62 149,497,113.46 12,109,637.82
Taxes payable 24,473,962.16 2,862,935.83 22,216,492.26 3,523,630.66
Other accounts payable 273,853,346.24 169,072,808.41 278,804,152.17 174,010,076.60
Interest payable
Dividend payable 28,169,531.21 25,829,531.21 533,156.00 533,156.00
Liabilities held for sale
Non-current liabilities due within one year 167,387,808.69 150,823,737.30 150,645,347.64 134,539,973.21
Other current liabilities 178,406,947.50 27,727,729.65 203,315,864.43 69,349,185.65
Total current liabilities 3,856,679,043.36 1,167,025,809.94 4,181,008,411.36 1,311,858,478.57
Non-current liabilities:
Long-term loans 595,200,000.00 595,200,000.00 679,700,000.00 679,700,000.00
Bonds payable
Preferred stock
Perpetual bond
Lease liability 21,771,928.91 10,207,189.04 24,134,986.97 10,878,947.77
Long-term account payable 3,114,213.58 10,331,937.30
Long-term wage payable
Special Payable
Anticipation liabilities 5,260,925.79 4,544,802.88
Deferred income 95,585,957.96 59,253,457.96 98,274,267.80 61,369,767.80
Deferred income tax liabilities 54,586,516.13 20,538,090.09 60,811,462.07 22,714,636.67
Other non-current liabilities
Total non-current liabilities 775,519,542.37 685,198,737.09 877,797,457.02 774,663,352.24
Total liabilities 4,632,198,585.73 1,852,224,547.03 5,058,805,868.38 2,086,521,830.81
Shareholders’ equity
Share capital 843,212,507.00 843,212,507.00 843,212,507.00 843,212,507.00
Other equity instruments
Preferred stock
Perpetual bond
Capital public reserve 717,097,098.38 755,146,592.54 717,097,098.38 755,146,592.54
Less: Treasury stock
3
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Other comprehensive income 2,208,669.73 1,246,569.06 2,208,669.73 1,246,569.06
Special preparation 1,221,919.03 449,374.96
Surplus public reserve 888,012,501.22 888,012,501.22 867,159,439.34 867,159,439.34
Generic risk reserve
Retained profit 649,767,029.17 930,116,760.94 617,386,488.34 990,785,644.93
Total owner’s equity attributable to parent company 3,101,519,724.53 3,047,513,577.75
Minority interests 54,911,700.75 56,528,848.12
Total owner’s equity 3,156,431,425.28 3,417,734,930.76 3,104,042,425.87 3,457,550,752.87
Total liabilities and shareholder’s equity 7,788,630,011.01 5,269,959,477.79 8,162,848,294.25 5,544,072,583.68
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
4
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
INCOME STATEMENT
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. January-June, 2024 Unit: RMB Yuan
January-June, 2024 January-June, 2023
Items
Consolidation Parent Company Consolidation Parent Company
I. Total sales 2,463,277,349.70 404,710,898.61 2,327,536,713.05 561,507,191.57
II. Total operating cost 2,397,140,315.69 404,710,898.61 2,244,978,370.92 561,507,191.57
Including: Operating cost 2,057,904,806.74 339,217,302.07 1,941,335,530.42 462,573,454.21
Taxes and associate charges 16,689,713.29 5,763,490.09 17,209,585.63 6,734,597.24
Selling and distribution expenses 110,159,991.36 19,927,691.26 98,211,645.02 24,951,968.65
Administrative expenses 121,498,382.07 34,913,506.10 103,515,309.49 31,968,790.92
R&D expenses 78,544,862.47 15,423,258.65 68,628,817.97 15,845,215.75
Financial expense 12,342,559.76 13,823,860.36 16,077,482.38 14,942,066.91
Including: interest expense 17,709,510.30 13,883,042.92 19,165,466.43 14,246,006.33
interest income 5,243,901.48 548,479.34 5,451,984.39 735,367.41
Add: Other income 17,755,779.69 1,535,146.86 1,814,789.04 100,000.00
Gain/(loss) from investment 22,493,222.27 27,406,700.78 6,848,068.69 29,661,828.13
Including: income from investment on
17,218,698.46 16,979,803.35
affiliated enterprise and jointly enterprise 90,409.95 -183,975.05
Gain/(loss) from change in fair value (loss as “-“) -14,510,310.64 -14,510,310.64 4,364,003.20 4,364,003.20
Credit impairment loss (loss as “-“) -16,406,220.89 -5,253,420.94 -19,302,777.86 -5,984,187.92
Assets impairment loss (loss as “-“) 4,917,988.18 -1,332,255.11 -4,905,134.78 -1,472,892.79
Gain/(loss) from asset disposal (loss as “-“) 10,550,303.70 2,703.81 51,209.01 0.00
III. Operating profit 90,937,796.32 -16,509,645.16 71,428,499.43 31,159,848.51
Add: non-business income 5,475,673.43 4,624.78 4,268,645.77 9,639.35
Less: non-business expense 5,508,956.59 504,989.76 2,257,797.99 70,000.00
IV. Total profit 90,904,513.16 -17,010,010.14 73,439,347.21 31,099,487.86
Less: Income tax 11,651,682.59 -2,490,563.24 13,930,271.56 2,686,238.79
V. Net profit 79,252,830.57 -14,519,446.90 59,509,075.65 28,413,249.07
(I) Net profit from continuous operation 79,252,830.57 -14,519,446.90 59,509,075.65 28,413,249.07
(II)Net profit from discontinuing operation
Net profit attributable to parent company 78,529,977.92 -14,519,446.90 57,414,399.22 28,413,249.07
Minority shareholders’ gains and losses 722,852.65 2,094,676.43
VI. After-tax net amount of other comprehensive
incomes
After-tax net amount of other comprehensive incomes
attributable to owners of the Company
(I) Other comprehensive incomes that will not be
reclassified into gains and losses
1. Changes in net liabilities or assets with a defined
benefit plan upon re-measurement
2. Enjoyable shares in other comprehensive incomes in
invests that cannot be reclassified into gains and losses
under the equity method
(II) Other comprehensive incomes that will be
reclassified into gains and losses
1. Enjoyable shares in other comprehensive incomes in
invests that will be reclassified into gains and losses
under the equity method
5
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
2. Gains and losses on fair value changes of available-
for-sale financial assets
3. Gains and losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
4. Effective hedging gains and losses on cash flows
5. Foreign-currency financial statement translation
difference
6、Others
……
After-tax net amount of other comprehensive incomes
attributable to minority shareholders
VII Total comprehensive income 79,252,830.57 59,509,075.65 28,413,249.07
Total comprehensive income attributable to parent
78,529,977.92
company 57,414,399.22
Total comprehensive income attributable to minority
722,852.65
shareholders 2,094,676.43
VIII. Earnings per share
(I) basic earnings per share 0.09 0.07
(II) diluted earnings per share 0.09 0.07
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
6
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
CASH FLOW STATEMENT
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. January -June, 2024 Unit: RMB Yuan
January -June, 2024 January -June, 2023
Items
Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing
labor services 1,907,077,005.37 356,957,447.68 1,897,060,493.23 416,876,256.09
Write-back of tax received 18,755,550.59 9,988,890.50
Other cash received concerning operating activities 63,426,981.44 10,607,266.66 52,698,239.72 7,689,232.01
Subtotal of cash inflow arising from operating activities 1,989,259,537.40 367,564,714.34 1,959,747,623.45 424,565,488.10
Cash paid for purchasing commodities and receiving
labor service 1,393,125,399.43 407,046,581.00 1,457,105,820.91 474,452,446.24
Cash paid to/for staff and workers 407,925,055.02 61,958,999.87 369,826,569.78 62,530,285.96
Taxes paid 96,739,099.30 15,612,910.27 107,685,392.77 28,543,318.27
Other cash paid concerning operating activities 124,055,968.40 24,913,279.32 151,924,036.97 26,003,055.24
Subtotal of cash outflow arising from operating activities 2,021,845,522.15 509,531,770.46 2,086,541,820.43 591,529,105.71
Net cash flows arising from operating activities -32,585,984.75 -141,967,056.12 -126,794,196.98 -166,963,617.61
II. Cash flows arising from investing activities:
Cash received from recovering investment
Cash received from investment income 4,378,498.20 114,364,003.20 5,796,799.24 24,022,304.24
Net cash received from disposal of fixed, intangible and
other long-term assets 31,636,572.34 434,242.64 30,000.00
Net cash received from disposal of subsidiaries and other
units 0.00
Other cash received concerning investing activities 0.00
Subtotal of cash inflow from investing activities 36,015,070.54 114,364,003.20 6,231,041.88 24,052,304.24
Cash paid for purchasing fixed, intangible and other
long-term assets 33,848,073.69 2,253,533.50 22,081,215.68 6,203,763.76
Cash paid for investment 16,000,000.00 145,285,500.00
Net cash paid for achievement of subsidiaries and other
business units 12,056,951.02
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 33,848,073.69 18,253,533.50 34,138,166.70 151,489,263.76
Net cash flows arising from investing activities 2,166,996.85 96,110,469.70 -27,907,124.82 -127,436,959.52
III. Cash flows arising from financing activities
Cash received from absorbing investment
Including: Cash received from absorbing minority
shareholders' equity investment by subsidiaries
Cash received from loans 252,063,418.15 209,000,000.00 345,525,821.90 316,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities 13,464,836.83 6,600,000.00
Subtotal of cash inflow from financing activities 265,528,254.98 209,000,000.00 352,125,821.90 316,000,000.00
Cash paid for settling debts 282,052,013.02 248,700,000.00 252,466,250.00 246,450,000.00
Cash paid for dividend and profit distributing or interest
paying 14,844,254.68 13,433,120.25 15,175,950.51 13,745,417.12
Including: dividends or profit paid by subsidiaries to
minority shareholders
Other cash paid concerning financing activities 60,640,595.58 9,783,735.91 22,250,574.21 1,267,500.00
7
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Subtotal of cash outflow from financing activities 357,536,863.28 271,916,856.16 289,892,774.72 261,462,917.12
Net cash flows arising from financing activities -92,008,608.30 -62,916,856.16 62,233,047.18 54,537,082.88
IV. Influence on cash due to fluctuation in exchange rate 2,281,289.59 644.35 -526,981.97
V. Net increase of cash and cash equivalents -120,146,306.61 -108,772,798.23 -92,995,256.59 -239,863,494.25
Add: Balance of cash and cash equivalents at the period -
begin 670,440,335.98 173,113,251.05 921,663,803.17 361,032,768.50
VI. Balance of cash and cash equivalents at the period–
end 550,294,029.37 64,340,452.82 828,668,546.58 121,169,274.25
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
8
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd 2024.01-06 Unit: RMB Yuan
2024.01-06
Owners’ equity attributable to parent company
Items Lessen: Other Retained Minority Total of
Capital Special Surplus equity owners’ equity
share capital treasury comprehens profits
suplus preparation reserve
stock ive income
I. balance at the end of last
843,212,507.00 717,097,098.38 2,208,669.73 449,374.96 867,159,439.34 617,386,488.34 56,528,848.12 3,104,042,425.87
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
843,212,507.00 717,097,098.38 2,208,669.73 449,374.96 867,159,439.34 617,386,488.34 56,528,848.12 3,104,042,425.87
this year
III. Increase/ decrease of
amount in this year (“-” means 772,544.07 20,853,061.88 32,380,540.83 -1,617,147.37 52,388,999.41
decrease)
(I) Total comprehensive
78,529,977.92 722,852.65 79,252,830.57
incomes
(II) Capital increased and
reduced by owners
1. Common shares increased
by shareholders
2. Capital increased by
holders of other equity
instruments
3. Amounts of share-based
payments recognized in
owners’ equity
4. Other
(III) Profit distribution 20,853,061.88 -46,149,437.09 -2,340,000.02 -27,636,375.23
1. Withdrawing surplus
20,853,061.88 -46,149,437.09 -25,296,375.21
public reserve
2. Distribution to all owners
-2,340,000.02 -2,340,000.02
(shareholders)
3. Others
(IV) Internal carrying
forward of owners’ equity
1. New increase of share
capital from capital reserves
2. Convert surplus reserves to
share capital
3. Surplus reserves make up
losses
4. Others
(V) Specific reserve 772,544.07 772,544.07
1. Withdrawn for the period 772,544.07 772,544.07
2. Used in the period
(VI) Other
IV. Balance at the end of this
843,212,507.00 717,097,098.38 2,208,669.73 1,221,919.03 888,012,501.22 649,767,029.17 54,911,700.75 3,156,431,425.28
period
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
9
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
2023.01-06
Owners’ equity attributable to parent company
Items Lessen: Other Special Retained Minority Total of
Capital Surplus equity owners’ equity
share capital treasury comprehens preparatio profits
suplus reserve
stock ive income n
I. balance at the end of last
843,212,507.00 717,097,098.38 2,208,669.73 825,226,634.15 618,445,922.58 54,077,970.99 3,060,268,802.83
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
843,212,507.00 717,097,098.38 2,208,669.73 825,226,634.15 618,445,922.58 54,077,970.99 3,060,268,802.83
this year
III. Increase/ decrease of
amount in this year (“-” means 57,414,399.22 2,094,676.42 59,509,075.64
decrease)
(I) Total comprehensive
57,414,399.22 2,094,676.42 59,509,075.64
incomes
(II) Capital increased and
reduced by owners
1. Common shares increased
by shareholders
2. Capital increased by
holders of other equity
instruments
3. Amounts of share-based
payments recognized in
owners’ equity
4. Other
(III) Profit distribution
1. Withdrawing surplus
public reserve
2. Distribution to all owners
(shareholders)
3. Others
(IV) Internal carrying
forward of owners’ equity
1. New increase of share
capital from capital reserves
2. Convert surplus reserves to
share capital
3. Surplus reserves make up
losses
4. Others
(V) Specific reserve
1. Withdrawn for the period
2. Used in the period
(VI) Other
IV. Balance at the end of this
843,212,507.00 717,097,098.38 2,208,669.73 825,226,634.15 675,860,321.80 56,172,647.41 3,119,777,878.47
period
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
10
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
STATEMENT OF CHANGES IN OWNERS’ EQUITY
2024.01-06
Owners’ equity attributable to parent company
Items Other Lessen: Other Total of owners’
Capital Special Surplus equity
share capital equity treasury comprehensive Retained profits
suplus preparation reserve
instrument stock income
I. balance at the end of last
843,212,507.00 755,146,592.54 1,246,569.06 867,159,439.34 990,785,644.93 3,457,550,752.87
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
843,212,507.00 755,146,592.54 1,246,569.06 867,159,439.34 990,785,644.93 3,457,550,752.87
this year
III. Increase/ decrease of
amount in this year (“-” means 20,853,061.88 -60,668,883.99 -39,815,822.11
decrease)
(I) Total comprehensive
-14,519,446.90 -14,519,446.90
incomes
(II) Capital increased and
reduced by owners
1. Common shares increased
by shareholders
2. Capital increased by
holders of other equity
instruments
3. Amounts of share-based
payments recognized in
owners’ equity
4. Other
(III) Profit distribution 20,853,061.88 -46,149,437.09 -25,296,375.21
1. Withdrawing surplus
20,853,061.88 -20,853,061.88
public reserve
2. Distribution to all owners
-25,296,375.21 -25,296,375.21
(shareholders)
3. Others
(IV) Internal carrying
forward of owners’ equity
1. New increase of share
capital from capital reserves
2. Convert surplus reserves to
share capital
3. Surplus reserves make up
losses
4. Others
(V) Specific reserve
1. Withdrawn for the period 1,403,878.98 1,403,878.98
2. Used in the period -1,403,878.98 -1,403,878.98
(VI) Other
IV. Balance at the end of this 3,417,734,930.76
843,212,507.00 755,146,592.54 1,246,569.06 888,012,501.22 930,116,760.94
period 8
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
11
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd 2023.01-06 Unit: RMB
Yuan
2023.01-06
Owners’ equity attributable to parent company
Items Other Lessen: Other Total of owners’
Capital Special Surplus equity
share capital equity treasury comprehensive Retained profits
suplus preparation reserve
instrument stock income
I. balance at the end of last
843,212,507.00 755,146,592.54 1,246,569.06 825,226,634.15 936,931,213.43 3,361,763,516.18
year
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
843,212,507.00 1,246,569.06 825,226,634.15 936,931,213.43 3,361,763,516.18
this year 755,146,592.54
III. Increase/ decrease of
amount in this year (“-” means 19,981,124.00 19,981,124.00
decrease)
(I) Total comprehensive
28,413,249.07 28,413,249.07
incomes
(II) Capital increased and
reduced by owners
1. Common shares increased
by shareholders
2. Capital increased by
holders of other equity
instruments
3. Amounts of share-based
payments recognized in
owners’ equity
4. Other
(III) Profit distribution -8,432,125.07 -8,432,125.07
1. Withdrawing surplus
public reserve
2. Distribution to all owners
-8,432,125.07 -8,432,125.07
(shareholders)
3. Others
(IV) Internal carrying
forward of owners’ equity
1. New increase of share
capital from capital reserves
2. Convert surplus reserves to
share capital
3. Surplus reserves make up
losses
4. Others
(V) Specific reserve
1. Withdrawn for the period 1,403,878.98 1,403,878.98
2. Used in the period -1,403,878.98 -1,403,878.98
(VI) Other
IV. Balance at the end of this
843,212,507.00 755,146,592.54 1,246,569.06 825,226,634.15 956,912,337.43 3,381,744,640.18
period
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
12
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
III. General Information
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd (the “Company”) was
reorganized and reformed from main part of former Dalian Refrigeration Factory. On
December 8, 1993, the Company went to the public as a listed Company at Shenzhen Stock
Exchange Market. On March 20, 1998, the company successfully went to the public at B
share market and listed at Shenzhen Stock Exchange Market with total share capital of
RMB350,014,975Yuan.
According to the 13th meeting of the 6th generation of board, extraordinary general meeting for
2015 fiscal year and ' Restricted share incentive plan (draft)' , the Company planned to
introduce A ordinary shares to incentive objectives, which was 10,150,000 number of shares
would be granted to 41 share incentive objectives at granted price of RMB5.56Yuan per share.
Up to March 12th ,2015, the Company received new added share capital of
RMB10,150,000Yuan and the share capital had been verified by DaHua Certified Public
Accountants, and had been issued the capital verification report Dahuayanzi [2015]000086 on
March12th , 2015.
The general meeting for 2015 fiscal year held on 21st April 2016 approved the profit
distribution policy for the year of 2015, which agrees the profit distribution based on the total
360,164,975 number of shares as share capital, paid share dividend of 5 common shares for
every 10 shares through capital reserve. The policy stated above was fully implemented on 5th
May 2016, and the registered capital was altered to 540,247,462.00Yuan.
The 17thmeeting of the 6th generation of board was held on 4th June 2015 and the 2nd interim
shareholders’ meeting was held on 24th June 2015, meeting deliberated and passed the proposal
of non-public offering of ‘A shares’. China’s Securities Regulatory Commission issued SFC
license [2015]3137 on 30th December, 2015, approving that new non-public offering cannot
exceeded 38,821,954 number of shares. The company implemented the post meeting
procedures for China’s Securities Regulatory Commission, which is regarding adjustment of
bottom price and the number of the shares issued after the implementation of profit distribution
policy of 2015 in May, 2016, and accordingly revised the upper limit of non-public offering of
share to58,645,096 number of new ‘A shares’. The company issued the non-public offering of
58,645,096 number of ‘A shares’ to 7 investors, and as a result, the total number of shares of
the company is changed to 598,892,558 shares, and the par value is 1yuan per share and the
total share capital is 598,892,558.00Yuan. The share capital stated above has been verified by
DaHua Certified Public Accountants, and has been issued the capital verification report
Dahuayanzi [2016]000457 on 31st May 2016.
According to the ‘Restricted Share Incentive Plan(draft) of Dalian Refrigeration Company
Limited for the year of 2016’ and the ‘Proposal regarding the shareholders’ meeting authorized
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
the board of directors to implement the Restricted Share Incentive Plan’ approved on the
3rdprovisional general meeting held on 13th September 2016, the 9th meeting of the 7th
generation of board deliberated and passed the ‘Proposal about granting the restricted shares to
incentive targets’ on September 20th, 2016 and set 20th September 2016 as share granted date,
and granted 12,884,000 number of restricted shares to 188 incentive targets at granted price of
5.62Yuan per share. By 22ndNovember, 2016, the company has actually received the newly
subscribed registered share capital of 12,884,000Yuan subscribed by incentive targets. The
share capital stated above has been verified by DaHua Certified Public Accountants, and has
been issued the capital verification report Dahuayanzi [2016]001138 on 23rdNovember, 2016.
On May 20th, 2017, the general meeting for 2016 fiscal year was held and profit appropriation
scheme for 2016 FY was approved, which was every 10 shares will be increased by 4 shares
through capital reserve based on the total 611,776,558 number of shares. After the profit
appropriation scheme, the registered capital was changed to RMB856,478,181.00Yuan.
On December 18, 2017, the Company held the third extraordinary shareholders’ meeting of
2017 which reviewed and approved the Proposal on Repurchasing and Cancelling Part
Restricted Stocks of the 2016 Restricted Stock Incentive Plan”. On March 8, 2018, after the
completion of repurchase and cancellation, the Company implemented the corresponding
capital reduction procedures according to law, and the registered capital of the Company was
changed from 856,487,181 Yuan to 855,908,981 Yuan.
On May 4, 2018, the Company held the 21st meeting of the seventh board of directors which
reviewed and approved the Proposal on Repurchasing and Cancelling Party Restricted Stocks
of the 2015 Restricted Stock Incentive Plan. On June 29, 2018, after the completion of
repurchase and cancellation, the Company implemented the corresponding capital reduction
procedures according to law, and the registered capital of the Company was changed from
855,908,981 Yuan to 855,434,087 Yuan.
On January 17,2019, the Company held the first extraordinary shareholders’ meeting of 2019
which reviewed and approved the Proposal on terminating the implementation of 2016
Restricted Stock Incentive Plan of the Company and logouting the restricted stock. On March
4,2019, the Company has completed the capital reduction process, and the registered capital of
the Company was changed from 855,434,087 Yuan to 843,212,507 Yuan.
On December 20th, 2019, the Company held the 7th meeting of the 8th Board of Directors and
approved to change the Company’s name from Dalian Refrigeration Company Limited to
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
The Company is in industrial manufacturing sector, mainly engaged in industrial refrigeration,
refrigerated and frozen food storage, and manufacture and installation of central air-
conditioning and refrigeration equipment. The scope of business includes research and
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
development, design, manufacture, sale, lease, installation and repair of refrigeration and heat
equipment, accessories, spare parts, and energy-saving and environmental protection products;
Technical services, technical consultation, technical promotion; Design, construction,
installation repair and maintenance of complete sets of refrigeration and air conditioning
projects, mechanical and electrical installation projects, steel structure projects, anti-corrosion
and heat preservation works; Rental of premises; Transport of ordinary goods; Property
management; Low temperature storage; Import and export of goods and technologies. (With
the exception of projects subject to approval according to law, independently carry out business
activities according to law with the business license).
This financial report was approved and issued by the Board of Directors of the Company on
August 14, 2024.
IV. Financial Statements Preparation Basis
（1） Preparing basis
The group’s financial statements are prepared according to the actual occurred transactions and
events, and in accordance with ‘Accounting Standards for Business Enterprises’, its application
guidelines, interpretations and other relevant provisions promulgated by the Ministry of
Finance (collectively referred to as "Accounting Standards for Business Enterprises") and " No.
15 of Information Disclosure and Reporting Rules for Publicly Listed Companies - General
Provisions for Financial Reports" (revised in 2023) promulgated by the China Securities
Regulatory Commission (hereinafter referred to as the "CSRC").
（2） Going concern
The group has assessed the capacity to continually operate within 12 months since June 60,
2024, and hasn’t found the major issues impacting on the sustainable operation ability. The
Company’s financial statements are prepared on the basis of going concern assumption.
V. Significant Accounting Policies and Accounting Estimates
1. Declaration for compliance with accounting standards for business enterprises
The financial statements are prepared by the Group according to the requirements of
Accounting Standard for Business Enterprise, and reflect the relative information for the
financial position, operating performance, cash flow of the Group truly and fully.
2. Accounting period
The group adopts the Gregorian calendar year as accounting period from Jan 1 to Dec 31.
3. Operating cycle
The group sets twelve months for one operating cycle.
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
4. Functional currency
The group adopts RMB as functional currency.
5. Materiality criteria set up method and basis
The financial statements preparation and disclosure are in line with materiality. For those
matters to be disclosed and need judgement for materiality, materiality criteria set up method
and basis are as follows:
In the
notes to the
Disclosures involved by materiality
financial Materiality criteria set up method and basis
judgement
statements
Significant receivables with individual Single provision is over 10 million Yuan and
Note VI.3
provision for bad debts represents more than 10% of the total provision
Collection or reverse of significant Single provision is over 10 million Yuan and
Note VI.3
receivables represents more than 10% of the total provision
Single provision is over 10 million Yuan and
Significant receivables written off Note VI.3
represents more than 10% of the total provision
Note
Significant construction in progress Single project budget over 30 million Yuan
XVI.16
The book value of long-term equity investment
in a single investee accounts for more than 10%
of the group's net assets and the amount is
Significant JV or associates Note VIII.3 greater than 100 million Yuan, or the gain or
loss on investment under the long-term equity
investment equity method accounts for more
than 10% of the group's consolidated net profit
Subsidiary’s net assets are more than10% of
Significant subsidiary the group asses and its net profit is more than
10% of consolidated profit
6. Accounting for business combination under same control and not under same control
（1） Business combination under the same control
Business combination under the same control is the situation where entities participating the
merger are controlled by the same party or controlled by parties under same ultimate control
before and after merger and the control is not temporary.
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
The group, as an acquirer, the assets and liabilities that the group obtained in a business
combination under the same control should be measured on the basis of their carrying amount
of the acqiree in the ultimate control party’s consolidated financial statements on the combining
date. As for the balance between the carrying amount of the net assets obtained by the
combining party and the carrying amount of the consideration paid by it, the capital surplus
shall be adjusted. If the capital surplus is not sufficient to be offset, the retained earnings shall
be adjusted.
（2） Business combination not under same control
Business combination not under the same control is the situation where entities participating
the merger are not controlled by the same party or not controlled by parties under same ultimate
control before and after merger.
When the group is an acquirer, for a business combination not under same control, the asset,
liability and contingent liability obtained, shall be measured at the fair value on the acquisition
date. The difference, when combination cost exceeds proportionate share of the fair value of
identifiable net assets of acquire should be recognized as goodwill. If the combination cost is
less than proportionate share of the fair value of identifiable net assets of acquiree, firstly, fair
value of identifiable asset, liability or contingent liability shall be reviewed, and so the fair
value of non-monetary assets or equity instruments issued in the combination consideration ,
after review, still the combination cost is less than proportionate share of the fair value of
identifiable net assets of acquire, the difference should be recognized as non-operating income.
If a business consolidation not under common control is finally achieved in stages, when
preparing the consolidated financial statements, the acquirer shall remeasure its previously held
equity interest in the acquiree at its fair value on acquisition date and recognize the gain or loss
as investment income for the current period. Other comprehensive income, under equity
method accounting rising from the interest held in acquiree in relation to the period before the
acquisition, and changes in the value of its other equity other than net profit or loss, other
comprehensive income and profit appropriation shall be transferred to investment gain or loss
for the period in which the acquisition incurs, excluding the other comprehensive income from
the movement on the remeasurement of ne asset or liability of defined benefit plan.
7. Criteria of control judgment and method of preparation of consolidated financial
statements
Consolidation scope is determined on the control basis including the Company and all
subsidiaries controlled by the Company. Control criteria is that the group has the power over
the investees, enjoy the variable return by involving the relative activities of the investees and
also has the impact on the return amount through the power over the investees.
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
If subsidiaries adopt different accounting policy or have different accounting period from the
parent company, appropriated adjustments shall be made in accordance with the Company
policy in preparation of the consolidated financial statements.
All significant intergroup transactions, outstanding balances and unrealized profit shall be
eliminated in full when preparing the consolidated financial statements. Portion of the
subsidiary’s equity not belonging to the parent, profit, loss for the current period, portion of
other comprehensive income and total comprehensive belonging to minority interest, shall be
presented separately in the consolidated financial statements under “minority interest of equity”,
minority interest of profit and loss”, “other comprehensive income attributed to minority
interest” and “total comprehensive income attributed to minority interest” title.
If a subsidiary is acquired under common control, its operation results and cash flow shall be
consolidated since the beginning of the consolidation period. When preparing the comparative
consolidated financial statements, adjustments shall be made to relevant items of comparative
figures as regarded that reporting entity established through consolidation has been always
existing since the point when the ultimate controlling party starts to have the control.
If a subsidiary is acquired not under common control, its operation results and cash flow shall
be consolidated since the beginning of the consolidation period. In preparation of the
consolidated financial statements, adjustments shall be made to subsidiary’s financial
statements based on the fair value of its all identifiable assets, liability or contingent liability
on the acquisition date.
When the group partially disposes of the long –term equity investment in subsidiary without
losing the control over it, in the consolidated financial statements, the difference, between
disposals price and respective disposed value of share of net assets in the subsidiary since the
acquisition date or combination date, shall be adjusted for capital surplus or share premium, no
enough capital surplus, then adjusted for retained earnings.
When the group partially disposes of the long –term equity investment in subsidiary and lose
the control over it, in preparation of consolidated financial statements, remaining share of
interest in the subsidiary shall be remeasured on the date of losing control. Sum of the share
disposal consideration and fair value of remaining portion of shareholding minus the share of
the net assets in the subsidiary held based on the previous shareholding percentage since the
acquisition date or combination date, the balance of above is recognized as investment gain/loss
for the period and goodwill shall be written off accordingly. Other comprehensive income
relevant to share investment in subsidiary shall be transferred to investment gain /loss for the
period on the date of losing control.
When the group partially disposes of the long –term equity investment in subsidiary and lose
the control over it by stages, if all disposing transactions are bundled, each individual
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
transaction shall be seen as a transaction of disposal of a subsidiary by losing control. The
difference between the disposal price and the share of the net assets in the subsidiary held
before the date of losing control, shall be recognize as other comprehensive income until the
date of losing control where it is transferred into investment gain/ loss for the current period. If
the equity investment in the subsidiary is disposed of by stages through multiple transactions
until the control is lost, and it is not a bundled transaction, each transaction shall be accounted
for separately according to whether the control is lost.
8. Cash and cash equivalent
The cash listed on the cash flow statements of the Company refers to cash on hand and bank
deposit. The cash equivalents refer to short-term (normally with original maturities of three
months or less) and liquid investments which are readily convertible to known amounts of cash
and subject to an insignificant risk of changes in value.
9. Translation of foreign currency
（1） Foreign currency transaction
Foreign currency transactions are translated at the spot exchange rate issued by People’s Bank
of China (“PBOC”) on the 1st day of the month when the transactions are accounted initially.
At the balance sheet date, foreign currency monetary items should be converted into reporting
currency at the balance sheet date’s spot exchange rate. Exchange differences should be taken
into the current profits and losses except special foreign currency borrowings for construction
and producing assets which are qualifying for assets capitalization, should be capitalized.
Foreign currency non-monetary items, which are recorded in historical cost, should be still
recorded at the spot exchange rate when the transaction occurred and no change on reporting
currency amount. Foreign currency non-monetary items, which are measured at fair value,
should be recorded in the spot exchange rate at the date measuring the fair value and the
differences should be recognized as profit and loss from fair value changes and included in the
current profits and losses. Invested capital in foreign currency shall be converted into reporting
currency at FX rate at when the investment is received, and no foreign exchange difference
arises between capital received and monetary items.
10. Financial instruments
（1） Recognition and derecognition of financial instruments
The group shall recognize a financial asset or a financial liability when becoming party to the
contractual provisions of the instrument.
An entity shall derecognize a financial asset(or a part of it or a group of similar financial asset)
when, and only when: 1) the contractual rights to the cash flows from the financial asset expire,
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
or 2) the entity transfers contractual rights to receive the cash flows of a financial asset, or
assumes a contractual obligation to pay those cash flows received to the 3rd party in full amount
in time according to the ‘passing-through’ agreement and the entity substantially transfers all
the risks and rewards of ownership of the financial asset in nature, or the entity neither transfers
nor retains substantially all the risks and rewards of ownership of the financial asset, but the
entity has not retained control.
Financial liabilities shall be derecognized if the obligation of the liability is fulfilled, cancelled
or expired. An exchange between an existing borrower and lender of debt instruments with
substantially different terms shall be accounted for as an extinguishment of the original
financial liability and the recognition of a new financial liability. Similarly, a substantial
modification of the terms an existing financial liability shall be accounted for as an
extinguishment of the original financial liability and the recognition of a new financial liability.
The difference between the carrying amount of a financial liability extinguished and the
consideration paid, including any non-cash assets transferred or liabilities assumed, shall be
recognized in profit or loss.
A regular way purchase or sale of financial assets shall be recognized and derecognized, as
applicable, using trade date accounting or settlement date accounting.
（2） Classification and measurement of financial assets
At initial recognition, the group shall classify financial assets as measured at amortized cost,
fair value through other comprehensive income or fair value through profit or loss on the basis
of both the group’s business model for managing the financial assets and the contractual cash
flow characteristics of the financial asset. Only when the business model for managing the
financial assets is changed, the affected financial assets shall be reclassified.
In determining the business model, the group considers, among others, the way in which the
company evaluates and reports the performance of financial assets to key management
personnel, the risks affecting the performance of financial assets and the way in which they are
managed, and the way in which the relevant business managers are remunerated. In assessing
whether the objective is to collect contract cash flows, the group needs to make an analytical
judgment on the reasons, timing, frequency and value of the sale of the financial assets before
the maturity date.
In determining the contract cash flow characteristics, the group is required to determine whether
the contract cash flow is only the payment of principal and interest based on the outstanding
principal, (including the assessment of the time value of money correction, judging any
significant difference between it and the baseline cash flow/ for financial assets containing early
repayment characteristics, is required to determine whether the fair value of early repayment
features is very small).
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Financial assets are measured at fair value at the initial recognition, but accounts receivable or
notes receivable arising from the sale of goods or provision of services, etc., do not contain a
significant financing component or do not consider the financing component of less than one
year, the initial measurement is based on the transaction price.
For financial assets that are measured at fair value, the related transaction costs are directly
included in current profit or loss, and those costs of other categories of financial assets are
included in their initial recognized amounts.
Financial assets subsequent measurement based on the classification
1) A financial asset measured at amortized cost
A financial asset shall be measured at amortized cost if both of the following conditions are
met: ①the financial asset is held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows;②the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding. The financial assets of this category include: monetary fund,
receivable, notes receivable and other receivables.
2) Debt instruments measured at fair value through other comprehensive income
A financial asset shall be measured at fair value through other comprehensive income if both
of the following conditions are met: ①the financial asset is held within a business model
whose objective is achieved by both collecting contractual cash flows and selling financial
assets and ②the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.
The effective interest rate is applied to interest income. A gain or loss arising from a financial
asset measured at fair value through other comprehensive income, which is not part of hedging
relationship shall be recognized in other comprehensive income apart from interest income,
impairment loss and foreign exchange difference. When this type of financial assets is
derecognized, accumulated gain or loss previously in the other comprehensive income shall be
out of it and accounted into retained earnings when the financial asset is derecognized. The
financial assets of this category include: receivable financing.
3) Equity instruments measured at fair value through other comprehensive income
The group may make an irrevocable election for particular investments in equity instruments
that it would be measured at fair value through other comprehensive income, but once the
election is made, it is irrevocable. The group only recognizes the dividend (apart from the
dividend as investment cost pay back) into profit and loss and fair value movement
subsequently will be recognized into comprehensive income and no need for impairment
provision. When this type of financial assets is derecognized, accumulated gain or loss
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
previously in the other comprehensive income shall be out of it and accounted into retained
earnings when the financial asset is derecognized. The financial asset of this category is equity
instruments.
4) A financial asset measured as fair value through profit or loss
Apart from classified as the amortized cost financial assets and as fair value through other
comprehensive income financial assets, a financial asset is classified as fair value through profit
or loss. The group shall subsequently measure this financial asset at its fair value, except for
hedging accounting, any gain or loss on FVTPL shall be accounted into profit and loss. The
financial assets of this category include: tradable financial asset other non-current financial
asset.
A financial asset shall be classified as fair value through profit or loss if it is recognized
contingent consideration through business combination, which is not under same control
situation.
（3） Classification, basis for recognition and measurement of financial liability
Except for the financial guarantee contract, commitments to provide a loan at a belowmarket
interest rate and financial liabilities that arise when a transfer of a financial asset does not
qualify for derecognition or when the continuing involvement approach applies, the group shall
initially classify all financial liabilities as it measured at amortized cost or financial liabilities
at fair value through profit or loss. For financial liabilities that are measured at fair value, the
related transaction costs are directly included in current profit or loss, and those costs of other
categories of financial assets are included in their initial recognized amounts.
Financial liabilities subsequent measurement based on the classification
1) Financial liabilities as it subsequently measured at amortized cost
Effective interest method is applied to financial liabilities as subsequently measured at
amortized cost
2) Financial liability as it measured at fair value through profit or loss
Financial liability measured at fair value through profit or loss including tradable financial
liability (derivative instrument of financial liability included) and designated as financial
liability measured at fair value through profit or loss. Tradeable financial liability (including
derivate instrument of financial liability) are subsequently measured at fair value. The net gain
or loss arising from changes in fair value are recorded in profit or loss for the period in which
they are incurred. Financial liability designated as it measured at fair value through profit or
loss shall be subsequently measured at fair value, except for changes in fair value caused by
changes in the group's own credit risk, which are recognized in other comprehensive income,
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
other changes in fair value are recognized in profit or loss for the current period; The group
recognizes all fair value changes (including the amount affected by changes in its own credit
risk) in profit or loss if the inclusion of changes in fair value caused by changes in its own
credit risk in other comprehensive income would cause or widen the accounting mismatch in
profit or loss for the current period.
（4） Financial instrument impairment
Based on expected credit loss, the group shall apply the impairment requirements for the
followings: ① a financial asset measured at amortized cost; ② debt investment measured at
fair value and changes in fair value is through other comprehensive income; ③ lease
receivable; ④ a contractual asset and financial guarantee contract.
Expected credit loss is the weighted average of credit losses with the respective risks of a default
occurring as the weights. A credit loss herein is referred to as the present value, at original
effective rate, of the difference between the contractual cash flows that are due to the group
under the contract; and the cash flows that the Company expects to receive, that's the present
value of the total cash shortage. The group shall measure expected credit losses of a financial
instrument in a way that reflects: ①an unbiased and probabilityweighted amount that is
determined by evaluating a range of possible outcomes; ② the time value of money; and ③
reasonable and supportable information that is available without undue cost or effort at the
reporting date about past events, current conditions and forecasts of future economic conditions.
Expected credit loss of financial instrument is assessed individually and portfolio. The group
assesses the expected credit loss based on the portfolio in accordance with the common
characteristics of credit risk which involves type of financial instrument, credit risk grade, and
age of trade receivables.
When assessing expected credit losses, the group considers all reasonable and supportable
information, including that which is forward-looking. In making these judgments and estimates,
the group extrapolates the expected changes in the debtor's credit risk based on historical
repayment data combined with factors such as economic policies, macroeconomic indicators
and industry risks. Different estimates may affect the provision for impairment, and the
provision already made may not equal the actual amount of impairment losses in the future.
1) Impairment testing method of receivable and contract asset
For receivable, notes receivable and contract asset etc., which don’t contain significant
financing component and arise from sales of products and service provision, the group adopts
simplified method to account expected credit loss provision at an amount equal to the whole
lifetime expected credit losses.
For lease premium receivable, trade receivable containing significant financing component, and
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
contract asset, the group adopts simplified method to account expected credit loss provision at
an amount equal to the whole lifetime expected credit losses.
The group determines the expected credit loss of trade receivable on the basis of portfolios with
common characteristics of credit risk, which are considered by expected credit loss
measurement reflection, by reference to historical experience of credit loss and by comparison
of receivable past due days/ receivable age with default risk rate, unless the single credit loss is
separately recognized for contractual payments that is significant in amount and credit impaired.
If certain client is significant different from others in terms of credit risk characteristics, or the
client’s credit risk has significantly increased, such as experiencing severe finance difficulty,
its expected credit loss is obviously higher than it to be at accounting age, the group will make
separate credit loss provision for this client’s receivable.
① Portfolio category and recognition basis of receivable ( contract asset)
The group classifies accounts receivable (and contract assets) according to the similarity and
relevance of credit risk characteristics based on information such as age, nature of payments,
credit risk exposure, historical debt collection, etc. For accounts receivable (and contract assets),
the group determines that aging is the primary factor affecting its credit risk and therefore, the
group assesses its expected credit losses on the basis of aging portfolios. The group calculates
the overdue age based on the payment date agreed in the contract.
No expected credit loss is recognized for receivables from related party within consolidated
scope as the group assesses its credit risk is relatively low.
② Portfolio category and recognition basis of notes receivable
Portfolio category Expected credit loss accounting estimate policy
Lower credit risk assessed by the management, no
Bank acceptance note portfolio
expected credit loss recognition
Commercial acceptance note Same as receivables portfolio and provided for excepted
portfolio credit loss allowance based on expected credit loss rate
2) Impairment testing method of debt investment, other debt investment, loan commitments and
financial guarantee contracts
With the exception of financial assets (such as debt investments, other debt investments), loan
commitments and financial guarantee contracts for which the simplified measurement method
is adopted above, the group adopts the general method (three-stage method) for the provision
of expected credit losses. At each balance sheet date, the group assesses whether its credit risk
has increased significantly since the initial recognition, and if the credit risk has not increased
significantly since the initial recognition, in the first stage, the group measures the loss
provision at an amount equivalent to the expected credit loss over the next 12 months and
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
calculates interest income based on the carrying balance and effective interest rate; If the credit
risk has increased significantly since the initial recognition but no credit impairment has
occurred, in the second stage, the group measures the loss provision at an amount equivalent to
the expected credit loss over the entire duration and calculates interest income based on the
carrying balance and effective interest rate; If credit impairment occurs after initial recognition,
in the third stage, the group measures the loss provision at an amount equivalent to the expected
credit loss over the entire duration and calculates interest income at amortized costs and
effective interest rates. For financial instruments with only low credit risk at the balance sheet
date, the group assumes that their credit risk has not increased significantly since initial
recognition
The whole life expected credit loss refers to the expected credit loss caused by all possible
default events during the whole expected life of the financial instrument. Expected credit losses
over the next 12 months are expected credit losses resulting from defaults on financial
instruments that may occur within 12 months after the balance sheet date (or if the expected
duration of the financial instrument is less than 12 months) and are part of the overall expected
credit losses over the life of the financial instrument.
Criteria of significant increase in credit risk and definition of credit impaired assets are
disclosed on Note X.1
（5） Recognition and measurement of transfer of financial assets
A financial asset is derecognized when the financial asset has been transferred together with
substantial all risks and rewards to the transferee. A financial asset can not be derecognized
when the substantial all risks and rewards to the financial asset has been retained. When the all
risks and rewards of the financial asset are neither transferred nor retained, but the group has
given up its control of the financial asset, the financial asset shall be derecognized and
recognize the asset and liability originated. Where control of the financial asset is not
relinquished, the relevant financial asset shall be recognized according to the extent to which it
continues to be involved in the transferred financial asset, and the relevant liability shall be
recognized accordingly.
In the case where the financial asset as a whole qualifies for the derecognition conditions, the
difference between the carrying value of transferred financial asset at the derecognition date
and the sum of the consideration received for transfer and the accumulated amount of changes
in fair value in respect of the amount of partial derecognition ( financial assets involved in
transfer must qualify the following conditions: ① the financial asset is held within a business
model whose objective is not only for collecting contractual cash flows but also for sale; ②the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest based on the principal amount outstanding) , that was
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
previously recorded under other comprehensive income is transferred into profit or loss for the
period.
In the case where only part of the financial asset qualifies for derecognition, the carrying
amount of financial asset being transferred is allocated between the portions that to be
derecognized and the portion that continued to be recognized according to their relative fair
value. The difference between the amount of consideration received for the transfer and the
accumulated amount of changes in fair value that was previously recorded in other
comprehensive income for the asset partially qualified for derecognition (financial assets
involved in transfer must qualify the following conditions:① the financial asset is held within
a business model whose objective is not only for collecting contractual cash flows but also for
sale; ; ②the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest based on the principal amount outstanding )
and the above-mentioned allocated carrying amount is charged to profit or loss for the period.
Where the assets continue to be involved by providing financial guarantees for the transferred
financial assets, the assets that continue to be involved in the same form are recognized at the
lower of the carrying value of the financial assets and the amount of the financial guarantees.
Financial guarantee amount means the maximum amount of consideration received that will be
required to be repaid.
（6） Distinguish between financial liability and equity instrument and accounting
Financial liability and equity instrument shall be distinguished in accordance with the following
standards: ① if the group cannot unconditionally avoid paying cash or financial asset to fulfil
a contractual obligation, the contractual obligation is qualified or financial liability. For certain
financial instrument, although there are no clear terms and conditions to include obligation of
paying cash or other financial liability, contractual obligation may indirectly be formed through
other terms and conditions. ②the group’s own equity instrument shall also be considered
whether it is the substitute of cash, financial asset or it is the remaining equity, after the issuer
deducts liability, enjoyed by the equity holder , if it must or can be used to settle a financial
asset. If the former, the instrument is a financial liability of the issuer, otherwise it is an equity
instrument of the issuer. In certain circumstances, financial instrument contract is classified as
financial liability, if financial instrument contract specifies the Company must or can use its
own equity to settle the financial instrument, the contractual amount of right or obligation
equals to that of the numbers of own equity instrument available or to be paid multiplied by
fair value when settling, nevertheless the amount is fixed, or varied partially or fully based on
the its own equity’s market price(such as interest rate, certain commodity’s or financial
instrument’s price variance).
When classifying a financial instrument (or its component) in the consolidated statements, the
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
group takes all terms and conditions agreed by the its member and instrument holder into
consideration. If the group because of the instrument, as a whole, bears settlement obligation
by paying cash, other financial asset or other means resulted in financial liability, the instrument
shall be classified as financial liability.
（7） Derivative financial instrument
The group uses derivative financial instruments such as foreign exchange forward contracts,
commodity forward contracts and interest rate swaps to hedge exchange rate risk, commodity
price risk and interest rate risk respectively. Derivative financial instruments are initially
measured at their fair value on the date the derivative transaction contract is signed, and are
subsequently measured at their fair value. A derivative instrument with a positive fair value is
recognized as an asset and a negative fair value is recognized as a liability.
Except hedging accounting, all gain or loss from the FV movement of derivative instrument
shall be recognized in the income statement.
（8） Financial asset and financial liability offset
Financial asset and financial liability shall be presented in the balance sheet separately and
cannot be offset, unless the following conditions are all met: ①the Company has the legal right
to recognized offset amount and the right is enforceable. ②the Company plans to receive or a
legal obligation to pay cash at net amount.
11. Inventories
Inventories are raw material, low-valuable consumable, goods on transit, working-in-progress,
finished goods, and cost to fulfil the contract etc.
The inventories are processed on perpetual inventory system, and are measured at their actual
cost on acquisition. Weighted average cost method is taken for measuring the inventory
dispatched or used. Low value consumables and packaging materials is recognized in the
income statement by one-off method.
At the balance sheet date, inventory is measured at the lower of cost and net realizable value.
If the cost of the inventory is higher than its net realizable value, a provision is made for the
decline in the price of the inventory and it is accounted in the current profit or loss. Net
realizable value is the amount of the estimated selling price of inventory in daily activities less
the estimated costs to be incurred at completion, estimated selling expenses and related taxes.
Impairment provision for the group's raw materials/goods in stock/WIP/ cost to fulfil the
contract is made on an individual inventory item, and when determining its net realizable value,
the inventory of goods in stock and materials used for sale are determined at the estimated
selling price of the inventory less estimated selling expenses and related taxes; Inventory of
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
materials held for use in production is determined at the estimated selling price of the finished
goods produced less the estimated costs to be incurred up to completion, estimated selling
expenses and
12. Contract asset and contact liability
(1) Contract asset
Contract asset is an entity’s right to consideration in exchange for goods or services that the
entity has transferred to a customer when that right is conditioned on something other than the
passage of time. For example, the group sold two goods that can be clearly distinguished to the
client, then the group has the right to consideration in exchange of the goods because one of
the goods are delivered, but the consideration’s collection is conditioned on the other goods
delivery, in this case, the right to consideration shall be recognized as contract asset.
Expected credit loss recognition of contract asset is referred to the Note III、10 Provision for
impairment of financial assets.
(2) Contract liability
An entity’s obligation to transfer goods or services to a customer for which the entity has
received consideration (or the amount is due) from the customer. If a customer pays
consideration, or the group has a right to an amount of consideration that is unconditional before
the group transfers a good or service to the customer, the group shall present the contract as a
contract liability when the payment is made or the payment is due (whichever is earlier).
13. Assets relevant to contract cost
(1) Assets recognition methods in relation to contract cost
Assets relevant to contract cost in the group include cost to fulfill the contract and cost to obtain
a contract. Cost to fulfill the contract is presented under inventory and other non-current assets.
Cost to obtain a contract is presented under other current assets and other non-current assets.
If the costs incurred in fulfilling a contract with a customer are not within the scope of another
Standard such as inventory , fixed assets or intangible assets , an entity shall recognize an asset
from the costs incurred to fulfill a contract only if those costs meet all of the following criteria:
the costs relate directly to a contract or to an anticipated contract, including direct labor, direct
materials and overheads which is clearly stated to be borne by the client and any other cost in
line with the contract; the costs enhance resources of the group that will be used in performance
obligations in the future; and the costs are expected to be recovered.
An asset as the incremental costs of obtaining a contract with a customer shall be recognized if
the group expects to recover those costs. The group may recognize the incremental costs of
obtaining a contract as an expense when incurred if the amortization period of the asset t is one
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year or less. The incremental costs of obtaining a contract are those costs that the group incurs
to obtain a contract with a customer that it would not have incurred if the contract had not been
obtained (for example, a sales commission). Other expenses incurred in order to obtain a
contract rather than the incremental cost, and expected to be recovered (regardless of whether
the contract is obtained such as travelling expenses) shall be recognized as an expense when
incurred, unless those costs are explicitly chargeable to the customer.
(2) Amortization of asset relevant to contract cost
An asset recognized in accordance with contract cost shall be amortized on a systematic basis
that is consistent with the transfer to the customer of the goods or services to which the asset
relates.
(3) Impairment of asset relevant to contract cost
If the carrying value of the group's assets related to the contract cost is higher than the following
two differences, the group will make the impairment provision for the excessive part and
recognize the asset impairment loss: ① The remaining consideration that the group is
expected to obtain due to the transfer of the commodities related to the asset; ② Estimate the
costs to be incurred for the transfer of the relevant goods
14. Long-term equity investment
Long term equity investments are the equity investment in subsidiary, in associated company
and in joint venture.
(1) Judgement on control, joint control and significant influence
Equity investments in which the group has a significant impact on the investee are investments
in associates.
Significant influence refers to having the power to participate in the decision-making of the
financial and operational policies of the investee, but not being able to control or jointly control
the formulation of these policies with other parties. Significant influence exists when the entity
directly or indirectly owned 20% or more but less than 50% voting shares in the investee, unless
there is explicit evidence that the company cannot participate in the production and operation
decisions of the investee or have control over the investee.
When having less than 20% voting shares, the group’s significant influence still exists if the
followings are taken into accounts: representation on the board of directors or equivalent
governing body of the investee, participation in financial or operating activities policy-making
processes, material transactions between the investor and the investee, interchange of
managerial personnel or provision of essential technical information etc.
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The group’s joint venture investment is an equity investment whereby the parties have jointly
control over it and have rights to the net assets of the investee. Joint control is the contractually
agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require the unanimous consent of the parties sharing control. The group’s
judgement on joint control is based on the joint arrangement that all participants or
combinations of participants collectively control the arrangement and that decisions relating to
the activities of the arrangement must be made with the unanimous consent of those participants
who collectively control the arrangement.
(2) Accounting
The group initially measures the long-term investment in line with the initial cost for acquiring
the investment.
The initial investment cost for long-term equity investment acquired through business
combination under common control, is the carrying amount presented in the consolidated
financial statements of the share of net assets at the combination date in the acquired company.
If the carrying amount of net assets at the combination date in the acquired company is negative,
investment shall be recognized at zero.
If long-term equity investment is acquired through business combination not under common
control, initial investment cost shall be the combination cost. If the equity investment of
investee not under common control is acquired by stages and it’s not a bundled transaction, the
carrying amount of the equity investment held previously plus newly increased investment cost
are taken as the initial investment cost.
Apart from the long-term equity investments acquired through business combination, the cost
of investment for the long-term equity investments acquired by cash payment is the amount of
cash paid, relevant direct expense, tax and other necessary expenses for the investment. For
long-term equity investment acquired by issuing equity instruments, the cost of investment is
the fair value of the equity instrument issued.
The Company adopts cost model for investment in subsidiary on separate financial statement.
Under cost model, the long-term equity investment is measured at initial investment cost. When
more investment is added, it shall increase the carrying amount of investment by adjusting the
fair value of additional investment and relevant transaction expenses. Cash dividend or profit
declared by investee shall be recognized as investment gain/loss for the period based on the
proportion share in the investee.
The Company adopts equity method for investment in joint venture and affiliate. Under equity
method, if the initial investment cost is greater than the share of fair value of the identifiable
net assets in the investee, the initial investment cost of long-term equity investment is no need
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
to be adjusted; If the initial investment cost is less than the share of fair value of the identifiable
net assets in the investee , the difference shall be recorded into the current profit and loss, and
the cost of long-term equity investment shall be adjusted at the same time.
Long-term equity investment subsequently, under equity method, shall be adjusted for it
carrying amount according to the share of equity increase or decrease in the investee. The
Company shall recognize its share of the investee’s net gain or losses after the investee’s net
profit adjustment, based on the fair value of the investee’s individual identifiable assets at the
acquisition date, after making appropriate adjustments thereto in conformity with the
accounting policies and accounting period, and offsetting the unrealized profit or loss from the
inter-group transactions, not constituting the business, between the entity and its associates and
joint ventures according to the shareholding attributable to the group (full amount of loss shall
be recognized if the inter-group transaction is impairment loss). The group recognizes net
losses incurred by investee to the extent that the carrying value of long-term equity investments
and other long-term interests substantially constituting net investments in investee are written
down to zero, except where the group is obliged to bear additional losses.
The difference between the book value of long-term equity investment and actual acquisition
cost shall be recognized in the gain or loss of investment when the long-term equity investment
is disposed of.
For long-term investments accounted under equity method, other comprehensive income
recorded shall be accounted on the same basis as the investee directly disposing of related assets
or liability when equity method is not used any longer. The movements of shareholder’s equity,
other than the net profit or loss, other comprehensive income and profit distribution previously
recorded in the shareholder’s equity of the Company are recycled to investment income for the
period on disposal.
If the remaining equity after the partially disposal is still accounted for under the equity method,
the relevant other comprehensive income previously recognized under the equity method, is
treated on the same basis as the direct disposal of the relevant assets or liabilities by the investee
and is carried forward on a proportional basis, and the owner's equity, which is apart from net
profit and loss, other comprehensive income and profit distribution of the investee, shall be
recognized and proportionally transfers to current investment income.
Where the entity has no longer joint control or significant influence in the investee company as
a result of partially disposal of the investment, the remaining investment will be accounted for
in line with the Recognition and Measurement of Financial Instruments Standard -No 22 of
Accounting Standards for Business Enterprises(No7 Caikuai [2017]), and the difference
between the fair value of remaining investment at the date of losing joint control or significant
influence and its carrying amount shall be recognized in the profit or loss for the year.
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Where the entity has no longer control over the investee company as a result of partially
disposal of the investment, the remaining investment will be changed to be accounted for using
equity method providing remaining joint control or significant influence over the investee
company. The difference between carrying amount of disposed investment and consideration
received actually shall be recognized as investment gain or loss for the period, and investment
shall be adjusted accordingly as if it was accounted for under equity model since acquisition.
Where the entity has on longer joint control or significant influence in the investee as a result
of disposal, the investment shall be accounted for in accordance with the Recognition and
Measurement of Financial Instruments Standard -No 22 of Accounting Standards for Business
Enterprises(No7 Caikuai [2017]), and difference between the carrying amount and disposal
consideration shall be recognized as investment gain or loss for the period, and the difference
between the fair value of remaining investment at the date of losing control and its carrying
amount shall be recognized in the profit or loss for the year.
15. Investment property
Investment property is held to earn rentals or for capital appreciation or both and includes
property, building and use right of land. They are measured at cost model.
Investment property is depreciated or amortized on straight line basis and its expected useful
life, net residual value rate and annual depreciation rate is as follows:
Useful life Estimated net residual value rate Annual depreciation rate
Category
(years) (%) (%)
Use right of land 50 0 2
Property and Buildings 40 3/10 2.25-2.43
16. Fixed assets
Recognition criteria of fixed assets: defined as the tangible assets which are held for the purpose
of producing goods, rendering services, leasing or for operation & management, and have more
than one year of useful life.
Fixed assets shall be recognized when the economic benefit probably flows into the group and
its cost can be measured reliably. Fixed assets include: building, machinery, transportation
equipment, electronic equipment and others.
All fixed assets shall be depreciated unless the fixed assets had been fully depreciated and are
still being used and land is separately measured. Straight-line depreciation method is adopted
by the group. Estimated net residual value rate, useful life, depreciation rate as follows:
No Category Useful life Estimated net residual Annual depreciation
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
(years) value rate (%) rate (%)
1 Property and Buildings 20-40 3、5、10 2.25-4.85
2 Machinery equipment 5-22 0.5-1、3、5、10 4.09-19.90
3 Transportation equipment 5-12 1、3、5、10 7-33.33
4 Electronic equipment &others 3-15 0-1、3、5、10 6-33.33
The group should review the estimated useful life, estimated net residual value and depreciation
method at the end of each year. If any change has occurred, it shall be regarded as a change in
the accounting estimates.
17. Construction in progress
The cost of construction in progress is determined according to the actual construction
expenditure, including the necessary construction expenditure incurred during the construction
period, the capitalized borrowing cost and other related expenses before the construction
reaches the condition expected for use.
Constructions in progress are transferred to fixed assets based on the construction budget and
actual costs on the date when completing and achieving estimated usable status, and the fixed
assets should be depreciated in the next month. Adjustment will be made upon confirmation of
their actual values after implementing the completion and settlement procedures.
The construction in progress shall be transferred to fixed assets when it reaches the expected
usable state, and the criteria are as follows:
Items Criteria of transferring to FA
Property and Buildings Earlier of actual starting of use and completion of inspection
Machinery equipment Earlier of actual starting of use and completion of installation / inspection
18. Intangible asset
The group’s intangible assets include use right of land, patents, non-patented technologies and
others. They are measured at actual cost at acquisition day. For acquired assets, the actual cost
is measured at actual price paid and relevant other expenses. Invested intangible asset shall be
measured at actual cost as contracted or agreed value, however fair value will be taken if the
contracted or agreed value is not fair.
(1) Useful life and the basis for recognition, estimation, amortization method or review
procedure
Use right of land shall be amortized evenly within the amortization period since the remised
date. Patents, technologies and other intangible assets are amortized over the shortest of their
estimated useful life, contractual beneficial period and useful life specified in the law.
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Amortization charge is included in the cost of assets or expenses, as appropriate, for the period
according to the usage of the assets. At the end of the year, for definite life of intangible assets,
their estimated useful life and amortization method shall be assessed. Any change shall be
treated as change on accounting estimate.
(2) The scope and accounting of research and development
The group separates the expenditure on internal research and development projects into
research phase expenditure and development phase expenditure. At research phase, expenditure
are expenses directly relevant to research activity, including R&D employee’s salary, materials,
depreciation, technology cooperation cost and assessment testing fees. At development phase,
expenses can be capitalized only when meeting the following conditions: (a)the technical
feasibility of completing the intangible asset so that it will be available for use or sale.
(b)its intention to complete the intangible asset and use or sell it.
(c)how the intangible asset will generate probable future economic benefits. Among other
things, the entity can demonstrate the existence of a market for the output of the intangible asset
or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset.
(d)the availability of adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset.
(e)its ability to measure reliably the expenditure attributable to the intangible asset during its
development.
Any expenditure not qualifying for the above conditions shall be accounted into profit and loss
account.
The projects expenditure will go to the development stage and start to be capitalized after
meeting the above conditions, and passing the technical feasibility and economic feasibility
studies, and being approved after evaluation.
19. Impairment of long-term assets
The group assesses whether there is any indication that long-term equity investment, investment
property under cost model, fixed assets, construction in progress, right-of-use asset and
intangible assets with definite useful life may be impaired. If there is any indication that an
asset may be impaired, the asset will be tested for impairment. Goodwill and intangible asset
with infinite useful life and development cost not reaching available for use status, are tested
for impairment annually no matter there is any indication of impairment or not.
(1) Non-current asset impairment excluding financial asset (expect goodwill)
When testing the impairment, the group recognized the recoverable amount of an asset, which
the higher of its fair value less costs to sell and the present value of the future cash flows
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expected to be derived from the asset. After impairment test, any difference of carrying amount
over its recoverable amount shall be recognized as impairment loss.
The group estimates recoverable amount based on an individual asset. If it is not possible to
estimate the recoverable amount of an individual asset, the recoverable amount is determined
on the basis of the asset groups or asset portfolio to which the asset belongs. Asset portfolio is
determined based on whether the major cash inflow generated by the asset group is independent
from the cash inflow of other assets or the asset portfolio.
Net amount which FV less disposal cost is reference to the agreed sale price or observable
market price for similar asset within the arm length transaction. When estimating the present
value of future cash flows, management must estimate the expected future cash flows of the
asset or group of assets and select an appropriate discount rate to determine the present value
of future cash flows.
(2) Goodwill impairment
The group allocates the carrying value of the goodwill generated from the business combination
to the relevant asset group or to the relevant asset group combination which is difficult to
allocate to the relevant asset group，in a reasonable way from the date of purchase. When
conducting impairment tests on goodwill contained within the related asset group or asset group
combination, if there are signs of impairment in the asset group or asset group combination
related to goodwill, the impairment test shall firstly be conducted on the asset group or asset
group combination excluding goodwill, and the recoverable amount shall be calculated and
compared with the relevant carrying value so to recognize the corresponding impairment loss;
Then, an impairment test is conducted on the asset group or asset group combination containing
goodwill to compare the carrying value with the recoverable amount. If the recoverable amount
is lower than the carrying value, the impairment loss amount is first offset against the carrying
value of goodwill allocated to the asset group or asset group combination, and then offset the
carrying value of the asset group and asset group combination based on the proportion of the
carrying value of other assets in the asset group or asset group combination without goodwill.
The methodology, parameters and assumptions of the goodwill impairment test are referred in
Notes VI.19.
Once the impairment loss on the assets is recognized, it can not be reversed in a subsequent
period.
20. Long-term prepaid expense
The group's long-term prepaid expense refers to landscape fees, renovation &decoration
expenses and other expenses paid and should be allocated over 1year.It will be amortized evenly
within its beneficial period. The remaining unamortized expense should be charged into income
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
statement if long-term prepaid expense can not bring the beneficial inflows. Landscape fees
will be amortized for 10 years and renovation& decoration fees will be amortized for 5-10 years.
21. Employee benefits
Employee’s benefit comprises short-term benefit, post-employment benefit, termination benefit
and other long-term employee’s benefit.
Short-term benefit includes salary, bonus, allowance, welfare, social insurance, housing funds,
labor union expense, staff training expense, during the period in which the service rendered by
the employees, the actually incurred short term employee benefits shall be recognized as
liability and shall be recognized in P&L or related cost of assets based on benefit objective
allocated from the service rendered by employees.
Post-employment benefits include the basic pension scheme and unemployment insurance etc.
Based on the risk and obligation borne by the Company, post-employment benefits are
classified into defined contribution plan and defined benefit plan. For defined contribution plan,
liability shall be recognized based on the contributed amount made by the Company to separate
entity at the balance sheet date in exchange of employee service for the period and it shall be
recorded into current profit and loss account or relevant cost of assets in accordance with
beneficial objective.
Other long-term employee’s benefit refers to all other employee benefits other than short-term
benefit, post-employment benefit and termination benefit.
22. Provision
When the Company has transactions such as commitment to externals, discounting the trade
acceptance note, unsettled litigation or arbitration which meets the following criterion,
provision should be recognized: It is the Company's present obligation; carrying out the
obligation will probably cause the Company's economic benefit outflow; the obligation can be
reliably measured.
Provision is originally measured on the best estimate of outflow for paying off the present
obligations. When determining the best estimate, need to consider the risk, uncertainty, time
value of monetary relevant to contingent items. The group needs to review the present best
estimate and accordingly adjust the carrying value of the provision account.
23. Revenue recognition and measurement
The group recognizes revenue when it has fulfilled its contractual performance obligations, i.e.
when the customer has obtained control of the relevant goods or services. Control right of goods
or services refers to the ability to direct the use of, and obtain substantially all of the remaining
benefits from, the asset.
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If the contract between the group and the customer meets the following five conditions at the
same time, the group has fulfilled the performance obligation when the customer obtains the
control of the relevant goods or services, and the revenue is recognized:
1) the parties to the contract have approved the contract and promised to fulfill their own
obligations;
2) the contract specifies the rights and obligations of parties related to the transferred
commodities;
3) the contract has explicit payment terms related to the transferred goods;
4) the contract has commercial substance, where the performance of the contract will change
the company's future cash flow risk, time distribution or amount;
5) the consideration to which the company is entitled as a result of the transfer of goods to the
customer is likely to be recovered.
When the group transfers control of a good or service over time, it satisfies a performance
obligation and recognizes revenue over time only if one of the following criteria is met,
otherwise it shall be the performance obligation at a point in time.
(1) the customer simultaneously receives and consumes the benefits provided by the entity’s
performance as the entity performs
(2) the group’s performance creates or enhances an asset (for example, work in progress) that
the customer controls as the asset is created or enhanced
(3) the group’s performance does not create an asset with an alternative use to the entity and
the entity has an enforceable right to payment for performance completed to date
(1) Revenue policy from sales
The group’s revenue mainly includes income from sale of goods and installation of the whole
set of refrigeration engineering project.
Based on the actual situation, the group recognizes the revenue as the followings；
1) Domestic sales: the sales contract with customers generally includes the performance of
obligation of transferring goods. The group recognizes the revenue at the time when the arrival
acceptance is completed by customers, having taken all followings into consideration: present
debt collection right entitled to the sales of goods, the transfer of the main risks and rewards in
the ownership of the goods, the transfer of the legal ownership entitled to the goods, the transfer
of physical assets, the acceptance of goods by customers.
2) Export sales: the group will recognize the sales revenue after completing the customs
declaration and export procedures.
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Revenue from installation of the whole set of refrigeration engineering project. In the
refrigeration installation contract between the group and the customer, since the equipment
sales and installation services cannot be distinguished separately, the entire project contract is
regarded as a single performance obligation, and the revenue of the single performance
obligation is recognized at the completion of the customer acceptance. when a performance
obligation over time is satisfied, revenue shall be recognized within the contract term according
to the performance progress, which is determined by the percentage of the cumulative actual
cost to expected total contract cost. When the performance progress can not be estimated
reasonably, the group recognizes the revenue to the extent where the already incurred cost can
be compensated until the performance progress can be decided.
(2) Determining and allocating the transaction price
If the contract includes two or more performance obligations, at the inception date of contract,
the group shall allocate the transaction price to each performance obligation identified in the
contract on a relative standalone selling price ratio basis and measure the revenue at the
allocated transaction price to each performance. If any solid evidence indicates that contract
discount is only relevant to one or some (not all) performance obligations, the discount shall be
allocated into the one or these performance obligations.
An amount of consideration can vary because of cash discounts, price guarantee. The group
determines the best estimate of the variable consideration in line with the expectation or the
amount that most probably incurred, but includes, in the transaction price, the variable
consideration not exceeding the amount that is highly unlikely to result in a material reversal
of cumulative revenue recognized when the relevant uncertainty is eliminated.
The group accounts for consideration payable to a customer as a reduction of the transaction
price and, therefore, of revenue unless the payment to the customer is in exchange for a distinct
good or service. Accordingly, the revenue shall be recognized at the later of the revenue
recognition and the consideration paid to a customer.
For sales with a right of return, the group recognizes the revenue for the consideration expected
to have the right to receive arising from transferring the goods to customers when the customer
receives the control right over the relevant goods, and recognizes the expected refund amount
as provision. At the same time, receivable of return cost, as an asset, shall be recognized for the
carrying value of the returned goods when it is expected to be transferred less expected cost for
getting it back (including decline in value) and net amount of the above asset cost shall be
carried over to the cost. At every balance sheet date, the group will reassess the future sales
returns and remeasure the above assets and liabilities.
Where a significant financing component exists in the contract, the transaction price shall be
measured at the assumed price that the payment is made by cash when the client receives the
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
control right of goods or services. The difference between the promised consideration and the
determined transaction price shall be amortized within the contract period using effective
interest rate, and it is the discounting rate at which the dominated price of the contract
consideration is discounted to the cash price.
According to the agreement or the regulation etc., the group provide warranty for the goods
sold and it is the quality assurance for promising the goods are in commodity with the agreed
standards and shall be accounted for as Note III、22 provision.
24. Government grants
Government grant shall be recognized only when all attached conditions are met and the grant
is possibly received. Where a government grant is in the form of a transfer of monetary asset,
it is measured at the amount received. Where a government grant is made on the basis of fixed
amount or conclusive evidence indicates relevant conditions for financial support are met and
expect to probably receive the fund, it is measured at the amount receivable. Where a
government grant is in the form of a transfer of non-monetary asset, it is measured at fair value.
If fair value cannot be determined reliably, it is measured at a nominal amount of RMB1 Yuan.
Assets-related government grant is the government fund obtained by the group for the purpose
of long-term assets purchase and construction or establishment in the other forms. Income-
related grants are the grant given by the government apart from the assets-related grants. If no
grant objective indicated clearly in the government documents, the group shall judge it
according to the principle mentioned above. If the grant is difficult to be separated, it shall be
considered as income-related grant as a whole.
Assets-related government grants are recognized as deferred income, which shall be evenly
amortized to profit or loss over the useful life of the related asset. Any assets are sold,
transferred, disposed of or impaired earlier than their useful life expired date, the remaining
balance of deferred income which hasn’t been allocated shall be carried forward to the income
statement when the assets are disposed of.
Income-related government grants that is a compensation for related expenses or losses to be
incurred in subsequent periods are recognized as deferred income and credited to the relevant
period when the related expenses are incurred. Government grants relating to compensation for
related expenses or losses already incurred are charged directly to the profit or loss for the
period. Government grants related to daily business, shall be recognized as other income in
accordance with business nature or offsetting related expenses, otherwise, shall be recognized
as non-operating income or expenses.
25. Deferred tax assets and deferred tax liabilities
The deferred income tax assets or the deferred income tax liabilities should be recognized
39
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
according to the differences (temporary difference) between the carrying amount of the assets
or liabilities and its tax base and the difference between the carrying amount of tax base item
and its tax base.
Deferred tax liability shall be recognized for all taxable temporary difference apart from the
followings : (1) temporary differences arise from the initial recognition of goodwill or the initial
recognition of assets or liabilities arising from non-business combinations that do not affect
accounting profits or taxable income (or deductible losses); (2) The group is able to control the
timing of the reversal of taxable temporary differences related to investments in subsidiaries,
associates, and joint ventures, and such temporary differences are likely not to be reversed in
the foreseeable future.
The group recognizes deferred income tax assets for deductible temporary differences,
deductible losses, and tax deductions that are likely to be obtained to offset future taxable
income, except for the following situations: (1) the initial recognition of assets or liabilities
arising from non-business combination transactions where temporary differences do not affect
accounting profits or taxable income (or deductible losses); (2) Deductible temporary
differences related to investments in subsidiaries, associates, and joint ventures that cannot
simultaneously meet the following conditions: temporary differences are likely to be reversed
in the foreseeable future, and taxable income is likely to be obtained in the future to offset
deductible temporary differences.
The group recognizes deferred income tax assets for all unused deductible losses to the extent
that there is likely to be sufficient taxable income to offset the deductible losses. The
management uses plenty of judgment to estimate the timing and amount of future taxable
income, combined with tax planning strategies, to determine the amount of deferred income
tax assets, which results in uncertainty.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities are
measured at the applicable tax rate during the expected period of asset recovery or liability
settlement.
When the following conditions are met simultaneously, the group shall present the deferred
income tax assets and deferred income tax liabilities at the net amount after offsetting: The
group has the legal right to settle the current income tax assets and deferred income tax
liabilities at the net amount; Deferred income tax assets and deferred income tax liabilities are
related to the income tax levied by the same tax collection and management authority on the
same taxpayer or on different taxpayers. However, in the future, within the term when each
significant deferred income tax asset and deferred income tax liability to be reversed, the
involved taxpayers intend to settle the current income tax assets and liabilities on a net basis or
acquire assets and settle debts simultaneously.
40
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
26. Lease
(1) Lease identification
Lease: A contract, or part of a contract, that conveys the right to use an asset (the underlying
asset) for a period of time in exchange for consideration.
At inception of a contract, the group shall assess whether the contract is, or contains, a lease. A
contract is, or contains, a lease if the contract conveys the right to control the use of an or many
identified assets for a period of time in exchange for consideration.
For a contract that is, or contains several leases, the group shall separate the contract and
account each lease separately. The group shall account for each lease component separately
from non-lease components of the contract if the contract contains lease and non-lease
components. Each leasing part is accounted for according to the leasing standards, while the
non-leasing part is accounted for according to other applicable accounting standards. If the
contract includes both leasing and non-leasing parts, the group, as the lessor, will split the
leasing and non-leasing parts and conduct accounting treatment separately. Each leasing part
will be accounted for according to the leasing standards, while the non-leasing part will be
accounted for according to other applicable accounting standards. As the lessee, the group
chooses not to separate the lease and non-lease, and joins each leased part and its non- leased
parts separately into a lease, accounting treatment shall be carried out in accordance with
leasing standards; However, if the contract includes embedded derivative instruments that
should be split, the group will not merge them with the leasing portion for accounting treatment.
(2) As a leasee
1) Recognition
At the commencement date, the group as a lessee shall recognize a right-of-use asset and a lease
obligation except short-term lease and low value asset lease.
Right-of-use assets represents a lessee’s right to use an underlying asset for the lease term, and
is initially measured at cost.
The cost of the right-of-use asset shall comprise:
① the amount of the initial measurement of the lease liability,
② any lease payments made at or before the commencement date, less any lease incentives
received, which is the incremental cost for the lease
③ any initial direct costs incurred by the lessee which is the incremental cost
④ an estimate of costs to be incurred by the lessee in dismantling and removing the underlying
asset, restoring the site on which it is located or restoring the underlying asset to the condition
41
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
required by the terms and conditions of the lease, unless those costs are incurred to produce
inventories. Where the group remeasures the lease liability in accordance with the relevant
provisions of the leasing standard, the carrying value of right-of-use asset is adjusted
accordingly.
The group shall follow the following principles when determining the depreciation life of the
right-of-use asset: if the ownership of the leased asset can be reasonably determined at the end
of the lease term, depreciation shall be calculated and deducted during the remaining service
life of the leased asset; Where it is not certain that the ownership of the leased asset can be
acquired at the end of the lease term, depreciation shall be calculated at the shorter of the lease
term and the remaining service life of the leased asset. The depreciation amount shall be
accounted into cost of assets or profit and loss account.
At the commencement date, a lessee shall measure the lease liability at the present value of the
lease payments that are not paid at that date.
The lease payments included in the measurement of the lease liability comprise the following
payments for the right to use the underlying asset during the lease term that are not paid at the
commencement date: ① fixed payments (including in-substance fixed payments) less any
lease incentives receivable;② variable lease payments that depend on an index or a rate,
initially measured using the index or rate as at the commencement date;③ the exercise price
of a purchase option if the lessee is reasonably certain to exercise that option; ④ payments of
penalties for terminating the lease, if the lessee will certainly exercise an option to terminate
the lease during the lease term;⑤ amounts expected to be payable by the lessee under residual
value guarantees.
When calculating the present value of the lease payments, interest rate implicit in the lease shall
be used. If the rate cannot be readily determined, the group shall use the lessee’s incremental
borrowing rate. Interest on the lease liability in each period during the lease term shall be
calculated based on a constant periodic rate of interest, and be recognized as in profit or loss
unless its capitalization.
After the lease commencement date, the group increases the carrying amount of lease liability
when recognizing the interest on lease liability and; decreases the carrying amount of lease
liability when making lease payment. The group remeasures the lease liability in accordance
with the present value of revised lease payment, when the followings incur: ①change of in-
substance fixed payments (subject to original discounting rate) ② change of amounts
expected to be payable under residual value guarantees(subject to original discounting rate) ③
change of an index or a rate used for future lease payments(subject to revised discounting rate)
④ change in assessment of a buy option(subject to revised discounting rate) ⑤ change in
assessment of a renew option or termination option or actual situation(subject to revised
42
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
discounting rate).
2) Short-term lease and low value asset lease
The group has chosen not to recognize the right-of-use asset and lease liability for short-term
lease (lease term less than 12 months) and low value asset (30,000 Yuan) when it is single
leased new asset. In this case, lease payment will be accounted directly in profit or loss or on
the straight-line basis in profit or loss.
3) Sales and lease back
The group, as a seller and a lease within the sales and lease back transaction, assesses whether
the transfer of the asset is a sale. If the transfer of assets is not a sale, the group shall continue
to recognize the transferred assets and at the same time recognize a financial liability equal to
the transfer income (Note VI. 34 lease). If the transfer of assets is a sale, the group shall measure
the right-of-use asset arising from the leaseback at the proportion of the previous carrying
amount of the asset that relates to the right of use retained by the group. Accordingly, the group
shall recognize only the amount of any gain or loss that relates to the rights transferred to the
buyer-lessor.
(3) As a lessor
The group, as a lessor, classified it as a finance lease if it transfers substantially all the risks and
rewards incidental to ownership of an underlying asset unless an operating lease.
1) Financing lease
At the commencement date, the group shall recognize the lease payment receivable and
derecognize of finance lease asset. When initially measuring the lease payment receivable, net
lease investment value shall be used for the lease payment receivable.
Net lease investment value equals to the any residual value guarantees plus the PV of undue
lease receivable discounted at the interest rate implicit in the lease. The group shall recognize
interest income over the lease term based on a constant periodic rate. The variable lease
payment obtained by the group related to operating leases, which are not included in the net
lease investment, shall be accounted for in the current profit and loss when actually incurred
2) Operating lease
Lease payment received shall be recognized as lease income on a straight-line basis within the
period.
The initial direct expenses incurred by the group in relation to operating leases are capitalized
to the cost of leasing the underlying asset and are recognized in profit or loss by instalments
over the lease period on the same basis as rental income. Variable lease payments made by the
group in relation to operating leases that are not included in lease collections are recognized in
43
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
profit or loss for the period when they are actually incurred.
The group shall account for a modification to an operating lease as a new lease from the
effective date of the modification, considering any received in advance or lease payments
receivable relating to the original lease as part of the lease payments receivable for the new
lease
27. Fair value measurement
The group measures investment property, derivative financial instruments and equity
instruments at fair value at each balance sheet date. Fair value refers to the price that market
participants can receive by selling an asset or can pay for transferring a liability in an orderly
transaction that takes place on the measurement date.
Assets and liabilities measured or disclosed at fair value in the financial statements are
determined to belong to the different fair value level based on the lowest level of input values
that are significant to the fair value measurement as a whole: level 1 input is the unadjusted
quoted price for identical asset or liability available at the active market on the measurement
date; level 2 input is the directly or indirectly observable input for relevant asset or liability
apart from level 1 input; level 3 input is the unobservable input for relevant asset or liability.
(For levels 1 and 2) For financial instruments traded in an active market, the group determines
their fair value by their active market quotes; For financial instruments that are not traded in an
active market, the group uses valuation techniques to determine their fair value, and the
valuation model used is mainly the discounted cash flow model. The input of valuation
techniques mainly includes: risk-free interest rate of debt, credit premium and liquidity
premium; estimator coefficient. and liquidity discount of equity.
(For level 3) The fair value of level 3 is determined on the basis of the group's valuation models,
such as the discounted cash flow model. The group also considers the initial transaction price,
recent transactions of the same or similar financial instruments, or full third-party transactions
of comparable financial instruments. As at 31 December 2023, level 3 financial assets measured
at fair value are valued by using significant unobserved inputs such as discount rates, but their
fair value is not materially sensitive to reasonable changes in these significant unobserved
inputs.
The group uses the market approach to determine the fair value of unlisted equity investments.
This requires the group to determine comparable listed companies, select market coefficient,
estimate liquidity discounts, etc., and is therefore subject to uncertainty.
44
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
VI. Taxation
1. The main applicable tax and rate to the Group as follows:
Tax Tax base Tax rate
Value-added tax (VAT) Sales revenue or Purchase 5%、6%、9%、13%
City construction tax Value-added tax payables 7%
Education surcharge Value-added tax payables 3%
Local education surcharge Value-added tax payables 2%
Enterprise income tax(EIT) Current period taxable profit 15% or 25%
70% of cost of own property or
Real estate tax 1.2% or 12%
revenue from leasing property
Land use tax Land using right area Fixed amount per square meter
Other tax According to the relevant provisions of the state and local
Notes for tax entities with different EIT rate
Tax entities EIT rate
Bingshan Refrigeration & Heat Transfer Technologies Co. ,Ltd 15%
Dalian Bingshan Group Engineering Co., Ltd. 25%
Dalian Bingshan Group Sales Co., Ltd. 25%
Dalian Bingshan Air-conditioning Equipment Co., Ltd. 15%
Dalian Bingshan Guardian Automation Co., Ltd. 15%
Dalian Bingshan-RYOSETSU Quick Freezing Equipment Co., Ltd. 25%
Wuhan New World Refrigeration Industrial Co., Ltd. 15%
Dalian Bingshan Engineering & Trading Co., Ltd 25%
Dalian Universe Thermal Technology Co.,Ltd. 15%
Chengdu Bingshan Refrigeration Engineering Co., Ltd. 25%
Wuhan New World Air-conditioning Refrigeration Engineering Co., Ltd 25%
Wuhan Lanning Energy Technology Co., Ltd 25%
Sonyo Compressor(Dalian)Co.,Ltd. 15%
Sonyo Refrigeration System (Dalian) Co., Ltd. 15%
Sonyo Refrigeration (Dalian) Co., Ltd. 15%
2. Tax preference
The Company obtained the qualification of high and new technology enterprises on 3rd
December, 2020 approved by Dalian Science Technology Bureau, Dalian Finance Bureau,
Dalian State Tax Bureau and Local tax Bureau. The Certificate No. is GR202021200646, and
the validity duration is three years. According to the tax law, the Company can be granted for
45
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
the preferential tax policy of enterprise income tax rate of 15% in three years.
The Company’s subsidiary, Dalian Bingshan Air-conditioning Equipment Co., Ltd. obtained
the qualification of high and new technology enterprises on 3rd December, 2020 approved by
Dalian Science Technology Bureau, Dalian Finance Bureau, Dalian State Tax Bureau and
Local tax Bureau. The Certificate No. is GR202021200672, and the validity duration is three
years. According to the tax law, Bingshan Air-conditioning can be granted for the preferential
tax policy of enterprise income tax rate of 15% in three years.
The Company’s subsidiary, Dalian Bingshan Guardian Automation Co., Ltd. obtained the
qualification of high and new technology enterprises on 16th November, 2018 approved by
Dalian Science Technology Bureau, Dalian Finance Bureau, Dalian State Tax Bureau and
Local tax Bureau. The Certificate No. is GR20181200562, and the validity duration is three
years. According to the tax law, Bingshan Guardian can be granted for the preferential tax
policy of enterprise income tax rate of 15% in three years.
The Company’s subsidiary, Wuhan New World Refrigeration Industrial Co., Ltd obtained the
qualification of high and new technology enterprises on 15th November, 2018 approved by
Hubei Science Technology Bureau, Hubei Finance Bureau, Hubei State Tax Bureau and Hubei
Local tax Bureau. The Certificate No. is GR201842000605, and the validity duration is three
years. According to the tax law, Wuhan New World Refrigeration can be granted for the
preferential tax policy of enterprise income tax rate of 15% in three years.
The Company’s subsidiary, Dalian Universe Thermal Technology Co., Ltd. obtained the
qualification of high and new technology enterprises on 3rd December, 2020 approved by
Dalian Science Technology Bureau, Dalian Finance Bureau, Dalian State Tax Bureau and
Local tax Bureau. The Certificate No. is GR202021200570, and the validity duration is three
years. According to the tax law, Universe can be granted for the preferential tax policy of
enterprise income tax rate of 15% in three years.
The Company’s subsidiary, Sonyo Compressor(Dalian)Co.,Ltd.(hereinafter referred to
as“ Sonyo Compressor” obtained the qualification of high and new technology enterprises on
22nd October, 2021 approved by Dalian Science Technology Bureau, Dalian Finance Bureau,
Dalian State Tax Bureau and Local tax Bureau. The Certificate No. is GR202121200268, and
the validity duration is three years. According to the tax law, the Company can be granted for
the preferential tax policy of enterprise income tax rate of 15% in three years.
The Company’s subsidiary, Sonyo Refrigeration System (Dalian) Co., Ltd.(hereinafter referred
to as“ Sonyo Refrigeration System” obtained the qualification of high and new technology
enterprises on 9th October, 2020 approved by Dalian Science Technology Bureau, Dalian
Finance Bureau, Dalian State Tax Bureau and Local tax Bureau. The Certificate No. is
GR202021200465, and the validity duration is three years. According to the tax law, the
46
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Company can be granted for the preferential tax policy of enterprise income tax rate of 15% in
three years.
The Company’s subsidiary, Sonyo Refrigeration (Dalian) Co., Ltd.(hereinafter referred to
as“ Sonyo Refrigeration System” obtained the qualification of high and new technology
enterprises on 22th October, 2021 approved by Dalian Science Technology Bureau, Dalian
Finance Bureau, Dalian State Tax Bureau and Local tax Bureau. The Certificate No. is
GR202121200368, and the validity duration is three years. According to the tax law, the
Company can be granted for the preferential tax policy of enterprise income tax rate of 15% in
three years.
(2)According to the Announcement on the Policy of Value added Tax Deduction for Advanced
Manufacturing Enterprises issued by the Ministry of Finance and the State Administration of
Taxation (Announcement No. 43 of 2023 of the Ministry of Finance and the State Administration
of Taxation), from January 1, 2023 to December 31, 2027, advanced manufacturing enterprises
are allowed to deduct an additional 5% of the deductible input tax amount for the current period
to offset the payable value-added tax amount. The tax collection and management matters of
enterprises enjoying this policy shall be implemented in accordance with the current collection
and management regulations. The Company and its subsidiaries, Bingshan Air Conditioning,
Bingshan Guardian, Wuxin Refrigeration, Nevis, Sonyo Compressor, Sonyo Refrigeration, enjoy
this preferential policy.
VII. Notes to Consolidated Financial Statements
The financial statement data disclosed below, unless otherwise specified, "beginning" refers to
January 1, 2024, "end of period" refers to June 30, 2024, "current period" refers to the period
from January 1 to June 30, 2024, and "previous period" refers to the period from January 1 to
June 30, 2023, with the currency unit being RMB yuan.
1. Cash and cash in bank
Item Closing Balance Opening Balance
Cash on hand 29,993.92 70,750.93
Cash in bank 725,560,608.32 863,950,616.72
Other cash and cash equivalents 54,092,652.58 87,018,202.46
Total 779,683,254.82 951,039,570.11
2. Notes receivable
(1) Category of notes receivable
Items Closing Balance Opening Balance
47
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Bank acceptance notes 228,910,196.23 335,914,443.51
Commercial acceptance notes 24,060,333.46 17,514,478.91
Total 252,970,529.69 353,428,922.42
Closing Balance Opening Balance
Provision for Provision for
Items Booking balance Book Booking balance
bad debts bad debts Book value
value
Amount % Amount % Amount % Amount %
Including:
254,467,46 100. 1,496,936. 0.5 252,970, 354,313,722.6 100. 884,800. 0.25 353,428,922.42
Notes receivable with
6.48 00% 79 9% 529.69 1 00% 19 %
provision for bad
debts by combination
Including:
228,910,19 89.96 0.00 228,910, 335,914,443.5 94.8 335,914,443.51
Bank acceptance bill 6.23 % 196.23 1 1%
25,557,270 10.04 1,496,936. 5.8 24,060,3 18,399,279.10 5.19 884,800. 4.81 17,514,478.91
trade acceptance draft .25 % 79 6% 33.46 % 19 %
254,467,46 100.0 1,496,936. 0.5 252,970, 354,313,722.6 100. 884,800. 0.25 353,428,922.42
Total
6.48 0 % 79 9% 529.69 1 00% 19 %
Provision for bad debts by combination:
Closing Balance
Items
Booking balance Bad debt provision Provision ratio
Banker's
228,910,196.23
acceptance draft
Trade acceptance
25,557,270.25 1,496,936.79 5.86%
draft
Instructions for determining the basis for this combination:
If the bad debt provision for bills receivable is accrued according to the general model of expected
credit loss, please refer to the disclosure method of other receivables to disclose the relevant
information of bad debt provision:
Applicable Not applicable
(2) Provision for bad debts for the current period:
Provision for bad debts in the current period:
48
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Change during the year
Opening Closing
Category Accrued Collected/reverse Written-
balance Others Balance
d off
Bad debt
provision for 884,800.19 612,136.60 1,496,936.79
notes receivable
Total 884,800.19 612,136.60 1,496,936.79
Among them, the amount of bad debt provision recovered or reversed in the current period is
important:
Applicable Not applicable
(3)Notes receivable pledged by the company at the end of the period
Items Closing pledged amount
Bank acceptance notes 9,019,138.381
Total 9,019,138.381
(4) Notes receivable endorsed or discounted but not mature at the end of year:
Item Closing amount no more Closing amount still
recognized recognized
Bank acceptance notes 135,963,419.37
Trade acceptance draft
Total 135,963,419.37
3. Accounts receivable
(1) Category of accounts receivable
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
13,741,982.96 0.57% 10,934,432.50 79.57% 2,807,550.46
on individual basis
Bad debt provision
2,388,393,221.67 99.43% 568,585,320.46 23.81% 1,819,807,901.21
on group
Including: aging as
characteristics of 2,388,393,221.67 99.43% 568,585,320.46 23.81% 1,819,807,901.21
credit risk
Total 2,402,135,204.63 100.00% 579,519,752.96 24.13% 1,822,615,451.67
(Continued)
49
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Opening balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
14,372,020.85 0.67% 11,564,470.39 80.47% 2,807,550.46
on individual basis
Bad debt provision
2,127,265,193.70 99.33% 553,638,820.00 26.03% 1,573,626,373.70
on group
Including: aging as
characteristics of 2,127,265,193.70 99.33% 553,638,820.00 26.03% 1,573,626,373.70
credit risk
Total 2,141,637,214.55 100.00% 565,203,290.39 26.39% 1,576,433,924.16
Provision for bad debts by combination:
Closing Balance
Items
Booking balance Provision %
within 1 year 1,301,074,181.07 68,714,806.97 5.28%
1-2 years 400,639,842.63 66,935,742.62 16.71%
2-3 years 237,416,081.96 72,207,829.48 30.41%
3-4 years 138,724,686.87 68,344,784.17 49.27%
4-5 years 64,992,086.64 46,835,814.72 72.06%
more than 5 years 245,546,342.50 245,546,342.50 100.00%
Total 2,388,393,221.67 568,585,320.46
Instructions for determining the basis for this combination:
If the bad debt provision for accounts receivable is accrued according to the general model of
expected credit loss, please refer to the disclosure method of other receivables to disclose the
relevant information of bad debt provision:
Applicable Not applicable
Disclosure by age
Aging Closing Balance
Within1 year 1,206,206,773.36
1to 2 years 467,224,285.85
2 to 3 years 261,707,912.29
More than 3 years 466,996,233.13
3 to 4 years 149,532,670.91
4 to 5 years 70,107,609.72
More than 5 years 247,355,952.50
Total 2,402,135,204.63
2) Bad debt provision accrued and written-off (withdraw)
Provision for bad debts in the current period:
50
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Opening Change during the period Closing
Category
balance Accrued Collected/reversed Written-off Others Balance
Bad debt
provision
for 565,203,290.39 15,906,178.09 2,003,152.37 413,436.85 579,519,752.96
accounts
receivable
3) Accounts receivable written off in current period
Item Written off amount
Receivable actually written off 2,003,152.37
4. Contract asset
(1) contract asset
Closing Balance
Items
Booking balance Provision Carrying amount
Undue warranty 256,845,119.22 37,891,429.09 218,953,690.13
Unsettled receivable of revenue
23,639,529.92 7,943,229.70 15,696,300.22
recognized over time
Total 280,484,649.14 45,834,658.79 234,649,990.35
(continued)
Opening balance
Items
Booking balance Provision Carrying amount
Undue warranty 265,440,261.85 37,369,046.20 228,071,215.65
Unsettled receivable of revenue
18,840,435.97 9,834,772.91 9,005,663.06
recognized over time
Total 284,280,697.82 47,203,819.11 237,076,878.71
(2) Significant change of the account
Items Amount Reason
Undue warranty -9,117,525.52 The warranty has expired
Unsettled receivable of revenue
6,690,637.16 Settled during the year
recognized over time
Total -2,426,888.36 —
51
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
(3) Category of contract asset based on bad debt provision method
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
1,709,948.80 0.61% 1,709,948.80 100.00%
on individual basis
Bad debt provision
278,774,700.34 99.39% 44,124,709.99 15.83% 234,649,990.35
on group
Including: aging as
characteristics of 278,774,700.34 99.39% 44,124,709.99 15.83% 234,649,990.35
credit risk
Total 280,484,649.14 100.00% 45,834,658.79 16.34% 234,649,990.35
(continued)
Opening Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
1,709,948.80 0.60% 1,709,948.80 100.00%
on individual basis
Bad debt provision
282,570,749.02 99.40% 45,493,870.31 16.10% 237,076,878.71
on group
Including: aging as
characteristics of 282,570,749.02 99.40% 45,493,870.31 16.10% 237,076,878.71
credit risk
Total 284,280,697.82 100.00% 47,203,819.11 16.60% 237,076,878.71
1) Bad debt provisions on individual basis
Opening balance Closing Balance
Name Accounts Provision for Accounts Provision for Proportion
Reason
receivable bad debts receivable bad debts (%)
Other Recovery is not
1,709,948.80 1,709,948.80 1,709,948.80 1,709,948.80 100.00%
companies2 expected
Total 1,709,948.80 1,709,948.80 1,709,948.80 1,709,948.80 100.00% —
52
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
2) Bad debt provisions on group basis
Closing Balance
Aging Accounts Provision for Drawing proportion
receivable bad debts
Within 1 year 144,248,727.79 9,219,318.83 6.39%
1 to 2 years 77,587,058.42 12,304,576.52 15.86%
2 to 3 years 30,378,613.98 8,397,875.48 27.64%
3 to 4 years 12,036,340.78 4,224,543.50 35.10%
4 to 5years 11,745,124.21 7,199,560.50 61.30%
Over 5 years 2,778,835.16 2,778,835.16 100.00%
Total 278,774,700.34 44,124,709.99 —
(3) Bad debt provision of current period
Collected/ Written-
Category Accrued Others Reason
reversed off
Undue warranty 230,413.19 - - -
Unsettled receivable of revenue
1,599,573.50 - - -
recognized over time
Total 230,413.19 1,599,573.50 - - -
5. Receivables financing
Items Closing Balance Opening Balance
Bank acceptance notes 233,756,806.93 303,585,218.53
Total 233,756,806.93 303,585,218.53
(2) Category of accounts receivable based on bad debt provision method
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision 100.00
233,756,806.93 - - 233,756,806.93
%
on group
Including: bank 100.00
233,756,806.93 - - 233,756,806.93
%
acceptance notes
100.00
Total 233,756,806.93 - - 233,756,806.93
%
(Continued)
53
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Opening balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
303,585,218.53 100.00 303,585,218.53
on group
Including: aging as
characteristics of 303,585,218.53 100.00 303,585,218.53
credit risk
Total 303,585,218.53 100.00 303,585,218.53
(3) Pledged notes receivable up to the end of year.
Items Closing pledged amount
Bank acceptance notes 93,473,070.22
Total 93,473,070.22
6. Other receivables
Items Closing Balance Opening Balance
Dividends receivable 3,856,753.95 14,495.00
Other receivable 44,726,062.04 41,381,728.27
Total 48,582,815.99 41,396,223.27
(1) Dividends receivable
1) Classification of Dividends Receivable
Items(or Investee) Closing Balance Opening Balance
Wuhan Iron and Steel Co., Ltd. 14,495.00
Dalian Bingshan Group Huahuida Financial Leasing
636,409.95
Co., Ltd.
Jiangsu Jingxue Energy Saving Technology Co., Ltd 3,220,344.00
Total 3,856,753.95 14,495.00
2)Provision for bad debts
Applicable Not applicable
(2). Other receivables
1) Other receivables categorized by nature
54
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Nature Closing Balance Opening Balance
Receivables and Payables 34,738,561.35 33,092,423.14
Guarantee deposits 29,747,420.17 30,103,093.46
Petty cash 8,401,964.79 3,669,152.52
Others 8,606,067.79 11,397,105.01
Total 81,494,014.10 78,261,774.13
2) Provision for bad debts
The first phase The second phase The third phase
Provision for bad debts Expected Credit Loss Expected Credit Loss for Total
Expected credit losses in the
for the duration (No the duration (Credit
next 12 months
Credit Devaluation) impairment has occurred)
Balance on January 1, 2024 2,343,658.22 34,536,387.64 36,880,045.86
The balance of January 1, 2024 in
the current period
Provision for current period 115,785.80 115,785.80
Reversal for current period 227,879.60 227,879.60
Others
Balance on June 30, 2024 2,459,444.02 34,308,508.04 36,767,952.06
Changes in book balances with significant changes in loss provisions in the current period
Applicable Not applicable
Disclosure by age
Aging Closing Balance
Within 1 year 27,950,486.12
1-2 years 6,187,521.09
2-3 years 7,688,282.27
Over 3 years 39,667,724.62
3-4 years 4,261,745.97
4-5 years 26,248,376.58
Over 5 years 9,157,602.07
Total 81,494,014.10
3) Provisions for bad debts accrued, recovered or reversed in the current period
Provision for bad debts in the current period:
Change during the year
Opening Closing
Category Accrued Collected/re Written-
balance Others Balance
versed off
Provision for
bad debts of 36,880,045.86 112,093.80 36,767,952.06
other receivables
Total 36,880,045.86 112,093.80 36,767,952.06
55
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
4) Other receivables from the top 5 debtors
% of
Closing Balance
Name Category Closing Balance Aging the total
of Provision
OR
Top 1 Current funds 2,476,894.20 2-3 years 3.04% 756,691.18
Top 2 Deposit 2,392,247.50 3-4 years；4-5 years 2.94% 1,575,384.95
Top 3 Deposit 2,289,088.39 Within 1 year 2.81% 83,780.64
Top 4 Depositt 2,000,000.00 Within 1 year 2.45% 73,200.00
Top 5 Bid bond 1,500,000.00 Within 1 year 1.84% 54,900.00
Total 10,658,230.09 13.08% 2,543,956.77
7. Prepayments
(1) Aging of prepayments
Closing Balance Opening Balance
Items
Amount Percentage Amount Percentage
Within 1 year 113,311,496.96 81.80% 133,068,644.50 86.75%
1 to 2 years 16,349,159.19 11.80% 12,010,696.67 7.83%
2 to 3 years 1,850,596.33 1.34% 2,578,747.06 1.68%
Over 3 years 7,017,670.13 5.06% 5,730,572.25 3.74%
Total 138,528,922.61 153,388,660.48
(2) Prepayments from the top 5 debtors based on closing balance
The sum of top 5 of prepayment is 39,815,722.29 Yuan, represents 28.74% of closing balance
of prepayment.
8. Inventories
(1) Categories of inventories
Closing Balance
Item
Book value Provision for decline Net book value
Cost to fulfill the contract 453,842,876.54 14,074,313.21 439,768,563.33
Finished goods 406,168,338.21 36,966,658.16 369,201,680.05
Raw materials 262,073,826.11 31,148,421.11 230,925,405.00
Working in progress 209,044,328.75 9,302,035.15 199,742,293.60
Self-manufactured semi-
42,567,703.17 42,567,703.17
finished products
Materials on consignment
2,374,698.53 60,394.18 2,314,304.35
for further processing
56
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Closing Balance
Item
Book value Provision for decline Net book value
Goods on transit 151,877,178.72 247,347.75 151,629,830.97
Properties written off debtors
Low-value consumable 8,322,237.78 8,322,237.78
Total 1,536,271,187.81 91,799,169.56 1,444,472,018.25
(Continued)
Opening Balance
Item
Book value Provision for decline Net book value
Cost to fulfill the contract 657,703,661.17 15,425,401.03 642,278,260.14
Finished goods 524,399,789.91 47,832,216.91 476,567,573.00
Raw materials 282,868,685.78 31,011,520.30 251,857,165.48
Working in progress 211,744,888.60 10,130,805.54 201,614,083.06
Goods on transit 35,347,357.53 - 35,347,357.53
Self-manufactured semi-
21,317,653.86 60,394.18 21,257,259.68
finished products
Materials on consignment
8,313,813.04 821,759.89 7,492,053.15
for further processing
Properties written off debtors 2,708,646.00 1,149,186.00 1,559,460.00
Low-value consumable 166,267.10 - 166,267.10
Total 1,744,570,762.99 106,431,283.85 1,638,139,479.14
(2) Provision for decline in the value of inventories
Increase Decrease
Opening Closing
Item Others Reverse/ Others
Balance Accrual Balance
transferred Written- off transferred
Raw materials 31,011,520.30 448,436.77 119,847.87 191,688.09 31,148,421.11
Working in
10,130,805.54 -197,486.31 631,284.08 9,302,035.15
progress
Finished goods 47,832,216.91 -4,461,266.43 5,395,161.04 1,009,131.28 36,966,658.16
Cost to fulfill
15,425,401.03 661,488.10 48,297.56 2,060,873.48 14,074,313.21
the contract
Materials on
consignment
60,394.18 60,394.18
for further
processing
Goods on
821,759.89 960,833.72 1,535,245.86 247,347.75
transit
57
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Increase Decrease
Opening Closing
Item Others Reverse/ Others
Balance Accrual Balance
transferred Written- off transferred
Properties
written off 1,149,186.00 -1,149,186.00
debtors
Total 106,431,283.85 -4,698,013.87 1,009,131.28 9,742,412.33 1,200,819.37 91,799,169.56
Accrual for provision for decline in the value of inventories
Basis for net realizable value Reasons for
Item
recognition reverse/write-off
Raw materials The amount deducting the expected Sold
WIP cost to product completion, selling Sold
Finished goods expense and relative tax from the Sold
Cost to fulfill the contract estimated selling price. Sold
9. Other current assets
Item Closing Balance Opening Balance
Input VAT to be deducted 10,785,442.98 18,112,002.39
Contract acquisition cost 3,454,783.55 4,532,291.00
Prepaid income tax presented at net amount after offsetting 2,790,775.12 3,216,096.82
Prepaid VAT 1,122,081.99 198,895.83
Prepaid expenses 222,730.16 15,056.29
Total 18,375,813.80 26,074,342.33
58
10.Long-term equity investments
Increase/Decrease
Gains and Provision
Beginning losses Adjustment of Cash bonus or for Provision for
Investee Change Ending balance
balance recognized other profits impairment impairment
Increased Decreased of other Others
under the comprehensive announced to of the
equity
equity income issue current
method period
Associates — — — — — — — — — — —
Dalian Honjo Chemical
Co., Ltd
9,892,253.52 - - 15,246.33 - - - 9,907,499.85 -
Keihin-Grand Ocean
Thermal Technology 57,579,975.00 - - -1,810,055.67 - - - - 55,769,919.33 -
(Dalian)Co.,Ltd.
Dalian Fuji Bingshan
Vending Machine Co., Ltd.
67,610,418.09 - - 1,246,957.50 - - - - 68,857,375.59 -
MHI Bingshan
Refrigeration (Dalian) 16,543,655.54 - - 86,728.24 - - - - 16,630,383.78 -
Co.,Ltd.
Dalian Fuji Bingshan
Vending Machine Sales Co., - - - - - - - -
Ltd
Jiangsu Jingxue Insulation
Technology Co.,Ltd (N4)
144,354,903.91 - - *.** - - -3,220,344.00 - - *.** -
Dalian Bingshan Metal 187,960,208.1
Technology Co.,Ltd.
173,250,850.13 - - 14,709,358.00 - - - - -
3
Dalian Bingshan Group
Huahuida Financial Leasing 46,050,456.55 - - *.** - - -636,409.95 - - *.** -
Co., Ltd
Wuhan Sikafu Power
Control Equipment Co., Ltd
5,992,434.76 - - 236,717.06 - - - - 6,229,151.82 -
Total 521,274,947.50 - - 17,218,698.46 - - -3,856,753.95 - 534,636,892.01 -
59
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
11.Other non-current financial assets
Item Closing Balance Opening Balance
Financial assets classified as FVTPL 149,514,460.99 164,024,771.63
Including: equity instruments 149,514,460.99 164,024,771.63
Total 149,514,460.99 164,024,771.63
12. Investment property
(1) Investment property measured as cost model
Property&
Item Land-use-rights Total
building
I. Initial cost — — —
1. opening balance 246,173,617.85 26,094,438.38 272,268,056.23
2. addition 2,708,646.00 2,708,646.00
(1) FA\transferred from CIP 2,708,646.00 2,708,646.00
3. decrease 2,040,449.10 2,040,449.10
4. closing balance 246,841,814.75 26,094,438.38 272,936,253.13
II. Accumulated depreciation — — —
1. opening balance 135,327,893.16 13,350,481.57 148,678,374.73
2. addition 3,032,199.55 450,573.07 3,482,772.62
(1) accrued/amortization 3,032,199.55 450,573.07 3,482,772.62
(2) FA\transferred from CIP
3. decrease 1,078,887.94 1,078,887.94
4. closing balance 137,281,204.77 13,801,054.64 151,082,259.41
III. Impairment reserve — — —
1. opening balance - - -
2. addition 1,149,186.00 1,149,186.00
3. decrease - - -
4. closing balance 1,149,186.00 1,149,186.00
IV. Book value — — —
1. Closing book value 108,411,423.98 12,293,383.74 120,704,807.72
2. Opening book value 110,845,724.69 12,743,956.81 123,589,681.50
(3) Investment property without ownership certificate
60
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Item Book value Reason
Because the land use right and the plant’s ownership
belong to different person, the deed of the plant was not
Plant 11,948,814.34
obtained. In 2023, the land use right is obtained, the
certificate of the plant ownership is in progress
The documents are not ready in full, the certificate of
Rihang Apartment 2,160,406.10
the building ownership can not be dealt with
13. Fixed assets
Items Closing Book Value Opening Book Value
Fixed asset 1,253,644,762.42 1,291,851,402.46
Fixed asset disposal - -
Total 1,253,644,762.42 1,291,851,402.46
(1) Fixed assets detail
Property& Machinery Transportation
Item Other equipment Total
buildings equipment equipment
I. Initial cost — — — — —
1.Opening balance 984,762,292.94 1,860,863,124.51 26,414,272.96 248,448,105.42 3,120,487,795.83
2. Increase 2,922,844.32 39,226,092.18 1,204,795.64 7,794,362.81 51,148,094.95
(1) Purchase 3,041,861.42 902,583.25 1,153,274.43 5,097,719.10
(2) Transferred from
882,395.22 36,184,230.76 302,212.39 6,641,088.38 44,009,926.75
construction-in-progress
(3) Acquired from business
combination
(4) financial lease 2,040,449.10 2,040,449.10
3. Decrease 636,530.29 111,613,712.10 2,179,224.55 23,595,006.86 138,024,473.80
(1) Disposal 636,530.29 111,613,712.10 2,179,224.55 23,595,006.86 138,024,473.80
(2) transferred int investment
property
4.Closing balance 987,048,606.97 1,788,475,504.59 25,439,844.05 232,647,461.37 3,033,611,416.98
II. Accumulated depreciation — — — — —
1.Opening balance 343,048,484.83 1,281,264,893.77 18,926,836.54 169,991,538.16 1,813,231,753.30
2. Increase 11,144,597.59 48,424,088.72 654,511.37 4,530,800.14 64,753,997.82
(1) Accrued 10,065,709.65 48,424,088.72 654,511.37 4,530,800.14 63,675,109.88
(2) Acquired from business
combination
(3) financial lease 1,078,887.94 1,078,887.94
61
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Property& Machinery Transportation
Item Other equipment Total
buildings equipment equipment
3. Decrease 520,800.09 87,390,091.46 1,375,783.82 19,733,764.00 109,020,439.37
(1) Disposal 520,800.09 87,390,091.46 1,375,783.82 19,733,764.00 109,020,439.37
(2) transferred int investment
property
4.Closing balance 353,672,282.33 1,242,298,891.03 18,205,564.09 154,788,574.30 1,768,965,311.75
III. Impairment reserve — — — — —
1.Opening balance 1,125,906.87 10,009,682.05 286,519.26 3,982,531.89 15,404,640.07
2. Increase
(1)Acquired from business
combination
3. Decrease 3,082,763.06 1,320,534.20 4,403,297.26
(1) Disposal 3,082,763.06 1,320,534.20 4,403,297.26
4.Closing balance 1,125,906.87 6,926,918.99 286,519.26 2,661,997.69 11,001,342.81
IV.Book value — — — — —
1.Closing book value 632,250,417.77 539,249,694.57 6,947,760.70 75,196,889.38 1,253,644,762.42
2.Opening book value 640,587,901.24 569,588,548.69 7,200,917.16 74,474,035.37 1,291,851,402.46
(2) Fixed assets without ownership certificate
Item Book value Reason
Up to June 30,2024, sum of net book value of the buildings without
ownership certificate is 24,654,106.29 Yuan, they are all self-
Self -
constructed buildings, which is the property of Sonyo Compressor
constructed 24,654,106.29
(Dalian)Co., Ltd.
buildings
Because the land right where the buildings stand on are not obtained,
ownership certificate of the buildings are not ready.
14. Construction-in-progress
Item Closing book value Opening book value
Construction-in-progress 95,741,358.83 114,801,351.21
Construction materials -
Total 95,741,358.83 114,801,351.21
62
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
(1) Construction-in-progress details
Closing balance Opening balance
Item
Book balance Provision Book Value Book balance Provision Book value
Buildings &
26,288,761.17 26,288,761.17 26,282,803.78 - 26,282,803.78
reconstruction
Improvement of
65,017,811.59 65,017,811.59 83,833,793.88 - 83,833,793.88
machinery
Software of
intelligent 4,434,786.07 4,434,786.07 4,684,753.55 - 4,684,753.55
manufacture
Total 95,741,358.83 95,741,358.83 114,801,351.21 - 114,801,351.21
(2) Change in the significant construction in progress
Decrease
Opening Transfer to Closing
Name Increase Other
balance FA/ Intangible balance
decrease
assets
Buildings &
reconstruction 24,020,836.00 1,082,917.03 25,103,753.03
Improvement of
machinery 59,648,413.52 11,316,124.61 29,429,534.50 41,535,003.63
Total 83,669,249.52 12,399,041.64 29,429,534.50 66,638,756.66
(Continued)
Including:
Percent of
Progress Accumulated accumulate Interest
investment Source of
Name Budget of capitalized d capitalized capitalization
against funds
construction interest interest of Rate
budget
the year
Buildings & Self-
29,847,212.07 84.11% 84.11% - - -
reconstruction financing
Improvement Self-
61,976,842.27 67.02% 67.02% - - -
of machinery financing
Total 91,824,054.34 — — — — — —
63
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
15. Right-of-use assets
Property/ Transportation Electronic
Item Machinery Land use right Total
buildings equipment equipment
I. Initial cost — — — — — —
1.Opening balance 22,301,098.69 1,500,407.13 996,991.93 15,403,548.97 40,202,046.72
2. Increase 347,837.26 172,876.68 350,368.66 871,082.60
(1) lease in 347,837.26 172,876.68 350,368.66 871,082.60
(2) business combination
3. Decrease 1,890,701.96 1,890,701.96
(1) Disposal 1,890,701.96 1,890,701.96
(2) transferred into FA
4.Closing balance 20,758,233.99 1,500,407.13 172,876.68 1,347,360.59 15,403,548.97 39,182,427.36
II. Accumulated
amortization
1.Opening balance 5,090,415.92 637,746.67 162,220.54 3,763,606.51 9,653,989.64
2. Increase 3,286,620.55 893,316.69 48,405.49 111,330.62 709,689.66 5,049,363.01
(1) Accrued 3,286,620.55 893,316.69 48,405.49 111,330.62 709,689.66 5,049,363.00
(2) business combination
3. Decrease 1,247,272.25 1,247,272.25
(1) Disposal 1,247,272.25 1,247,272.25
(2) transferred into FA
4.Closing balance 7,129,764.22 1,531,063.36 48,405.49 273,551.16 4,473,296.17 13,456,080.40
64
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Property/ Transportation Electronic
Item Machinery Land use right Total
buildings equipment equipment
III. Impairment reserve — — — — — —
1. Opening balance - - - - - -
2. Increase - - - - - -
3. Decrease - - - - - -
4.Closing balance - - - - - -
IV. Book value — — — — — —
1. Closing book value 13,628,469.77 -30,656.23 124,471.19 1,073,809.43 10,930,252.80 25,726,346.96
2. Opening book value 17,210,682.77 862,660.46 834,771.39 11,639,942.46 30,548,057.08
65
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
16. Intangible assets
Non-
Item Land use right Patent Others Total
Patent
I. Initial cost — — — — —
1.Opening balance 240,905,737.40 17,630,188.82 5,773,680.00 74,249,345.48 338,558,951.70
2. Increase 234,044.24 234,044.24
(1) Purchase
(2) Transferred from
- 234,044.24 -
construction-in-progress
(3) increase via merge
3. Decrease - - - 5,700.00 5,700.00
(1) Disposal - - - 5,700.00 5,700.00
4.Closing balance 240,905,737.40 17,864,233.06 5,773,680.00 74,534,754.18 339,078,404.64
II. Accumulated
— — — — —
amortization
1.Opening balance 71,901,377.46 10,470,188.25 4,773,708.00 40,847,535.60 127,992,809.31
2. Increase 1,689,106.10 1,901,733.62 250,002.00 2,715,079.79 6,555,921.51
(1) Accrued 1,689,106.10 1,901,733.62 250,002.00 2,715,079.79 6,555,921.51
(2) Increase from merger 5,700.00 5,700.00
3. Decrease 5,700.00 5,700.00
(1) Disposal
4.Closing balance 73,590,483.56 12,371,921.87 5,023,710.00 43,556,915.39 134,543,030.82
III. Impairment
— — — — —
provision
1. Opening balance 11,981.17 11,981.17
2. Increase
(1) Increase from merger
3. Decrease
(1) Disposal
4.Closing balance 11,981.17 11,981.17
IV. Book value — — — — —
1. Closing book value 167,315,253.84 5,492,311.19 749,970.00 30,965,857.62 204,523,392.65
2. Opening book value 169,004,359.94 7,160,000.57 999,972.00 33,389,828.71 210,554,161.22
17. Goodwill
(1) Original cost of goodwill
66
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Increased during Decreased during
current year current year
Opening
Name Enterprises Closing Balance
Balance
merger Other Disposal Other
increase
Sonyo Compressor (Dalian)Co.,
Ltd 240,922,872.80 - - - - 240,922,872.80
Sonyo Refrigeration (Dalian) Co.,
Ltd.(N1) 38,056,663.52 - - - 38,056,663.52
Sonyo Refrigeration System
(Dalian) Co., Ltd. 5,671,836.12 - - - 5,671,836.12
Dalian Universe Thermal
Technology Co., Ltd. 1,440,347.92 - - - 1,440,347.92
Dalian Bingshan Group
Engineering Co., Ltd 310,451.57 - - - 310,451.57
Total 286,402,171.93 - - - 286,402,171.93
(2) Goodwill impairment provision
In the year 2015, the book value of equity investment of Dalian Universe Thermal Technology
Co., Ltd exceeds the fair value of the proportion of the acquired company’s identifiable net asset. The
difference between the book value of equity investment of 48, 287,589.78 Yuan and the identifiable
net asset’s fair value of Dalian Sanyo High-efficient Refrigeration System Co., Ltd of 46,847,241.86
Yuan on the acquisition date of July 31st ,2015 is recognized as goodwill of 1,440,347.92 Yuan on The
Company consolidated financial report at the end of the year.
In the year 2016, Dalian Bingshan Group Engineering Co., Ltd purchases shares of Dalian
Bingshan Baoan Leisure Industry Co., Ltd and gains control. The transferred price is based on the net
asset of Dalian BingshanBaoan Leisure Industry Co., Ltd on June 30th, 2016. Negotiated with Dalian
Bingshan Baoan Leisure Industry Co., Ltd’s shareholder Baoan Water Project (China) Limited
Company, the transfer price is the combination cost on the purchasing date which is 5,359,548.42 Yuan,
the fair value of proportion of Dalian BingshanBaoan Leisure Industry Company’s identifiable net
asset is 5,049,096.85 Yuan on the purchasing day, therefore, goodwill is 310,451.57Yuan on the
purchasing date. Dalian Bingshan Group Engineering Co., Ltd absorbed Dalian Bingshan Baoan
Leisure Industry Co., Ltd in 2019.
In 2022, the Company purchased 60% of the shareholdings of Sonyo Compressor (Dalian)Co.,
Ltd from Sanyo Electric (China)Co., Ltd, and negotiated with Sanyo Electric (China)Co., Ltd to
determine the share transfer consideration of 929,148,000.00 Yuan. After the transaction, Sonyo
Compressor (Dalian)Co., Ltd became a subsidiary. This transaction is a business combination not
under same control, cost of combination is the FV of previous shareholdings on acquisition date plus
60% shareholdings acquisition consideration, which is 1,548,580,000Yuan in total. Goodwill of
240,922,872.80 Yuan is recognized for the difference between the share of FV of net identifiable asset
of acquiree, 1,307,657,127.20Yuan and cost of combination on acquisition date.
In 2022, the Company purchased 30% of the shareholdings of Sonyo Refrigeration System
(Dalian) Co., Ltd. from Panasonic Corporation of china Co., LTD and 25% shareholdings of Sonyo
67
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Refrigeration System (Dalian) Co., Ltd from Panasonic Appliances cold Chain (Dalian)Co.Ltd. The
negotiated share transfer consideration of 81,735,060.00 Yuan. After the transaction, Sonyo
Compressor (Dalian)Co., Ltd became a subsidiary. This transaction is a business combination not
under same control, cost of combination is the FV of previous shareholdings on acquisition date plus
55% shareholdings acquisition consideration, which is 111,456,900.00Yuan in total. Goodwill of
5,671,836.12 Yuan is recognized for the difference between the share of FV of net identifiable asset of
acquire, 105,785,063.87Yuan and cost of combination on acquisition date.
In 2023, the Company purchased 40% of the shareholdings of Sonyo Refrigeration (Dalian) Co.,
Ltd. from Panasonic Corporation of China Co., LTD and 60% shareholdings of Sonyo Refrigeration
(Dalian) Co., Ltd from Sanyo Electric (China)Co., Ltd. This transaction is a business combination not
under same control, cost of combination is the consideration of 145,285,500.00 Yuan for share transfer.
Goodwill of 38,056,663.52Yuan is recognized for the difference between the share of FV of net
identifiable asset of acquire. 107,228,836.48Yuan and cost of combination on acquisition date.
The book value of goodwill from business combination shall be allocated into the relevant asset
group using the reasonable method since acquisition date, and be tested for impairment on related asset
groups containing goodwill by professional appraisal companies or use evaluation models to predict
the recoverable amount of related asset groups containing goodwill in accordance with the present
value of future cash flows including gross profit rate, sales growth rate (1%-8%), discount
rate(10.74%-11.62%) and other parameters in the next 5 years. No goodwill impairment has been
found when the recoverable amount of asset group for testing is higher than its book value.
18. Long-term unamortized expense
Opening Other Closing
Item Increase Amortization
Balance Decrease balance
Greenland of new factory 3,048,061.06 - 60,473.82 - 2,987,587.24
Employee’s dormitory use
1,458,257.10 - 61,910.34 - 1,396,346.76
right
Membership fee for golf 374,000.00 - 8,250.00 - 374,000.00
Renovation and rebuilding 142,091.33 2,140,100.03 662,892.59 - 1,619,298.77
Amortization of instruments 315,236.61 34,159.28 53,233.74 - 287,912.15
Technology entrance fee of
8,675.50 4,004.10 - 4,671.40
cold and heat machinery
Total 5,346,321.60 2,174,259.31 850,764.59 - 6,669,816.32
19. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets without offsetting
Closing balance Opening balance
Item Deductible Deferred tax Deductible
Deferred tax assets
temporary difference assets temporary difference
68
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Provision for
impairment of 158,107,274.82 23,879,587.90 153,519,850.70 23,185,410.37
assets
Unrealized profit
from internal 13,034,503.47 1,955,175.52 13,034,503.47 1,955,175.52
transaction
Provision for
469,307,071.89 87,157,474.76 445,951,688.75 81,048,834.24
credit impairment
Lease liability 48,162,137.72 7,224,320.65 52,799,814.74 8,006,670.79
FA depreciation 48,341,817.50 7,251,272.62 48,341,817.47 7,251,272.60
Accrued sales
17,125,319.07 2,568,797.86 17,125,319.07 2,568,797.86
discount
Unrealized
11,170,890.18 2,792,722.55 11,170,890.18 2,792,722.55
revenue
Deductible loss 11,170,890.18 2,792,722.55 4,544,802.83 714,830.47
Safety cost 4,544,802.58 714,830.47 449,375.00 67,406.25
Others 449,374.99 67,406.25 1,138,175.07 170,726.26
Total 770,243,192.22 133,611,588.58 748,076,237.28 127,761,846.91
(2) Deferred tax liabilities without offsetting
Closing balance Opening balance
Item Taxable Taxable
Deferred tax Deferred tax
temporary temporary
liabilities liabilities
difference difference
Revaluation increase in
business combination
226,989,506.93 36,614,853.11 253,978,835.91 38,096,825.39
asst not under same
control
Change on FV of other
non-current financial 147,830,608.40 20,538,090.09 151,430,911.13 22,714,636.67
assets
FA depreciation 44,399,117.74 6,659,867.65 44,655,750.06 6,698,362.51
Use right of asset 47,422,042.57 7,198,246.23 48,864,566.94 7,414,624.88
Total 466,641,275.64 71,011,057.08 498,930,064.04 74,924,449.45
(3) Net deferred tax asset or liability
Offset
Offset amount at Closing balance of amount at the Opening balance of
Item
the year-end net of DTA/DTL beginning of net of DTA/DTL
the year
Deferred tax
13,858,113.88 117,187,047.63 14,112,987.38 113,648,859.53
assets
Deferred tax
13,858,113.88 54,586,516.13 14,112,987.38 60,811,462.07
liabilities
69
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
(4) Unrecognized deferred tax assets details
Item Closing balance Opening balance
Deductible temporary difference 238,347,385.17 227,656,543.59
Deductible loss 540,443,485.76 553,968,553.34
Total 778,790,870.93 781,625,096.93
(5) Unrecognized deductible loss of deferred tax assets expired years
Year Closing balance Opening balance Notes
2024 7,735,166.14 7,735,166.14 —
2025 8,950,922.50 8,950,922.50 —
2026 54,629,003.37 54,629,003.37 —
2027 67,364,986.52 67,364,986.52 —
2028 50,668,863.57 55,969,301.70 —
2029 39,791,411.14 39,791,411.14 —
2030 11,891,689.57 7,689,545.97 —
2031 148,080,122.08 126,221,649.87 —
2032 30,573,496.42 44,819,905.64 —
2033 120,757,824.45 140,796,660.49 —
Total 540,443,485.76 553,968,553.34 —
20. Other non-current asset
Closing Balance Opening balance
Category Carrying Carrying
Book value Provision Book value Provision
amount amount
Debt
21,770,721.0 20,243,349.4
offset 21,770,721.00 1,527,371.56 20,243,349.44
0
1,527,371.56
4
housing
21,770,721.0 20,243,349.4
Total 21,770,721.00 1,527,371.56 20,243,349.44 1,527,371.56
0 4
21. Assets with restricted ownership or use rights
Item At the period end
Book value Carrying amount Type Restriction
Guarantee
Monetary fund 61,389,225.45 61,389,225.45 Frozen deposit/ frozen
bank account
Notes receivable 9,019,138.38 9,019,138.38 Pledged Pledged
Financing of receivable 93,473,070.22 93,473,070.22 Pledged Pledged
70
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
FA 96,317,982.43 64,407,217.20 Pledged Pledged
Intangible asset 8,266,573.44 5,339,198.53 Pledged Pledged
Investment property 39,307,513.52 31,767,806.11 Pledged Pledged
Total 307,773,503.44 265,395,655.89 — —
(continued)
Item At the beginning of the period
Book value Carrying amount Type Restriction
Guarantee
Monetary fund 110,277,531.37 110,277,531.37 Frozen deposit/ frozen
bank account
Notes receivable 4,939,655.20 4,939,655.20 Pledged Pledged
Financing of receivable 99,078,000.87 99,078,000.87 Pledged Pledged
FA 89,720,897.99 60,540,912.88 Pledged Pledged
Intangible asset 8,266,573.44 5,421,865.27 Pledged Pledged
Investment property 38,955,728.90 32,097,825.31 Pledged Pledged
Total 351,238,387.77 312,355,790.90 — —
22. Short-term borrowing
(1) Category of short-term borrowing
Loan category Closing balance Opening balance
Credit loan 288,761,386.17 256,686,746.70
Factoring loan 2,976,345.47
Pledged loan 2,624,692.21
Total 288,761,386.17 262,287,784.38
23. Notes payable
Notes Category Closing balance Opening balance
Bank acceptance notes 473,387,058.60 670,720,999.48
Commercial acceptance notes -
Total 473,387,058.60 670,720,999.48
24. Accounts payable
Item Closing balance Opening balance
Material payments 858,168,853.48 931,983,444.51
Project payments 718,516,448.54 675,076,736.92
Equipment payments 82,234,334.87 43,234,911.60
Others 54,480,174.96 5,540,269.98
71
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Item Closing balance Opening balance
Total 1,713,399,811.85 1,655,835,363.01
25. Other accounts payable
Item Closing balance Opening balance
Interest payable - -
Dividend payable 28,169,531.21 533,156.00
Other accounts payable 245,683,815.03 278,270,996.17
Total 273,853,346.24 278,804,152.17
25.1 Dividend payable
Item Closing balance Opening balance
Ordinary share dividend 28,169,531.21 533,156.00
Total 28,169,531.21 533,156.00
25.2 Other accounts payable
(1) Other payables categorized by payments nature
Payments nature Closing balance Opening balance
Supplier platform 179,831,763.69 179,737,197.47
Apply for reimbursement and
12,025,209.42 24,617,613.80
unpaid
Payable factoring 10,731,132.68 22,407,941.90
Cash pledge and security deposit 16,109,515.90 14,448,796.02
Agency fees 7,611,936.96 5,317,884.69
Repair 2,258,382.73 4,676,404.47
Trade mark and royalty 3,478,520.00 2,531,401.13
Receipts under custody 1,648,291.27 830,631.83
Others 11,989,062.38 23,703,124.86
Total 245,683,815.03 278,270,996.17
26. Contract liability
(1) Contract liability
Item Closing balance Opening balance
Received in advance due from unrealized revenue 659,709,451.48 787,685,294.53
Total 659,709,451.48 787,685,294.53
(2) Contract liability over 1 year
72
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Item Closing balance Unsettled reason
Company 2 26,296,421.13 Not complete yet
Total 26,296,421.13 —
27. Employee’s payable
(1) Category of employee’s payable
Opening
Item Increase Decrease Closing balance
balance
Short-term employee’s
149,352,510.11 330,503,868.23 403,077,969.02 76,778,409.32
payable
Post-employment benefit
–defined contribution 11,203.35 32,065,281.62 32,065,281.62 11,203.35
plan
Termination benefits 133,400.00 1,872,401.09 1,496,143.09 509,658.00
Total 149,497,113.46 364,441,550.94 436,639,393.73 77,299,270.67
(2) Short-term employee’s payables
Opening
Item Increase Decrease Closing balance
balance
Salaries, bonus,
136,231,457.30 261,568,825.93 331,712,678.52 66,087,604.71
allowance, and subsidy
Welfare - 12,307,531.53 12,307,531.53
Social insurance 6,925.69 27,341,233.60 27,341,233.60 6,925.69
Include: Medical
6,654.11 22,612,308.30 22,612,308.30 6,654.11
insurance
On-duty injury
70,609.85 70,609.85
insurance
Maternity insurance 271.58 2,402,446.78 2,402,446.78 271.58
Housing funds 178,155.98 24,388,299.94 24,386,364.70 180,091.22
Labor union and training
4,008,680.40 4,897,977.23 6,553,281.69 2,353,375.94
expenses
Reward bonus and welfare
8,927,290.74 776,878.98 8,150,411.76
fund
Total 149,352,510.11 330,503,868.23 403,077,969.02 76,778,409.32
(3) Defined contribution plan
73
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Opening
Item Increase Decrease Closing balance
balance
Pension 10,863.84 31,054,696.84 31,054,696.84 10,863.84
Unemployment insurance 339.51 1,010,584.78 1,010,584.78 339.51
Total 11,203.35 32,065,281.62 32,065,281.62 11,203.35
28. Tax payable
Item Closing balance Opening balance
Value-added tax 6,308,999.33 5,013,411.92
Enterprise income tax 11,775,937.57 10,958,503.00
Individual income tax 232,314.80 514,426.82
City maintenance and construction tax 947,858.68 551,839.60
Real estate tax 2,588,627.13 2,589,711.66
Land use tax 1,313,306.40 1,313,078.49
Stamp duty 628,754.40 879,269.28
Education surcharge 677,041.94 394,171.13
River toll fee 1,121.91 2,080.36
Total 24,473,962.16 22,216,492.26
29. Non-current liabilities due within one year
Item Closing balance Opening balance
Bond payable due within one year 144,200,000.00 119,400,000.00
Long-term payable due within one year 14,407,861.78 24,636,926.13
Lease obligation due within one year 8,779,946.91 6,608,421.51
Total 167,387,808.69 150,645,347.64
30. Other current liabilities
Item Closing balance Opening balance
Notes payable endorsed not
131,243,722.64 148,957,983.15
derecognized
Output Vat to be carried forward 47,163,224.86 54,357,881.28
Total 178,406,947.50 203,315,864.43
31. Long-term borrowing
(1) Category of long-term borrowing
Category Closing Balance Opening Balance
Pledged loan 595,200,000.00 609,700,000.00
Guarantee loan 70,000,000.00
74
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Total 595,200,000.00 679,700,000.00
32. Lease obligation
(1) Details of lease obligation
Category Closing balance Opening balance
Lease payment 55,820,322.30 38,276,477.18
Less: unrecognized finance expense 25,268,446.48 7,533,068.70
Non-current liability due within 1 year 8,779,946.91 6,608,421.51
Net lease liability 21,771,928.91 24,134,986.97
33. Long term accounts payable
Item Closing Balance Opening Balance
Long term accounts payable 3,114,213.58 10,331,937.30
Special fund payable - -
Total 3,114,213.58 10,331,937.30
33.1Category by nature
Nature Closing Balance Opening Balance
Financial lease borrowings 3,114,213.58 10,331,937.30
Total 3,114,213.58 10,331,937.30
34. Provision
Nature Closing Balance Opening Balance Reason
Warranty 5,260,925.79 4,544,802.88 Service after sales
Open litigation - - —
Total 5,260,925.79 4,544,802.88 —
35. Deferred income
(1) Category of deferred income
Item Opening Balance Increase Decrease Closing Balance
Government subsidy 98,274,267.80 8,851,270.31 11,539,580.15 95,585,957.96
Total 98,274,267.80 8,851,270.31 11,539,580.15 95,585,957.96
36.Share capital
75
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Increase/decrease（+/-）
Transfer
Opening New
Item Share from Closing balance
balance share others Subtotal
dividend capital
issued
reserve
Total
share 843,212,507.00 - - - - - 843,212,507.00
capital
37.Capital reserves
Opening
Items Increase Decrease Closing Balance
Balance
Share premium 669,193,413.27 - - 669,193,413.27
Other capital reserves 47,903,685.11 - - 47,903,685.11
Total 717,097,098.38 - - 717,097,098.38
76
38.Other comprehensive income
2024.1-6
Opening Amount for After-tax
Items Less：Previously recognized Less： After-tax attribute Closing Balance
Balance the period attribute to the
before income in profit or loss into other income parent
to minority
tax comprehensive income tax company
shareholder
I.Later can’t reclassified into
profit and loss of other - - - - - - -
comprehensive income
II. Later reclassified into
profit and loss of other 2,208,669.73 - - - - - 2,208,669.73
comprehensive income
Other comprehensive income
that can be transferred to profit 2,208,669.73 - - - - - 2,208,669.73
or loss under the equity method
Other comprehensive income
total 2,208,669.73 - - - - - 2,208,669.73
77
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
39. Special reserve
Item Opening Balance Increase Decrease Closing Balance
Manufacturing safety 449,374.96 1,653,011.07 880,467.00 1,221,919.03
Total 449,374.96 1,653,011.07 880,467.00 1,221,919.03
40.Surplus reserves
Item Opening Closing
Increase Decrease
Balance Balance
Statutory surplus reserve 373,398,755.92 373,398,755.92
Discretionary surplus reserve 493,760,683.42 20,853,061.88 514,613,745.30
Total 867,159,439.34 20,853,061.88 888,012,501.22
41.Undistributed profits
Item 2024-06-30 2023-06-30
Closing balance of last year 617,386,488.34 618,445,922.58
Add: Adjustments to the opening balance of
-65,810.05
undistributed profits
Including: additional retrospective adjustments
-
according to the new accounting standards
Change on accounting policy -65,810.05
Correction of prior period significant errors -
Change on combination scope under same
-
control
Other factors -
Opening balance of current year 617,386,488.34 618,380,112.53
Add: net profit attributable to shareholders of parent
49,375,900.83
company in the year
Less: Provision for statutory surplus reserves 10,426,530.94
Provision for any surplus reserves 20,853,061.88 31,510,869.01
Provision of general risk -
Dividends payable for common shares 25,296,375.21 8,432,125.07
Common stock dividends converted to equity -
Others -
Closing balance of current year 649,767,029.17 617,386,488.34
78
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
42.Operating revenue and cost
(1) Details
Items 2024.01-06 2023.01-06
Sales revenue Cost of sales Sales revenue Cost of sales
Revenue from principle operation 2,386,331,445.01 2,024,384,701.81 2,270,473,198.19 1,911,835,081.08
Revenue from other operation 76,945,904.69 33,520,104.93 57,063,514.86 29,500,449.34
Total 2,463,277,349.70 2,057,904,806.74 2,327,536,713.05 1,941,335,530.42
(2) Main revenue and COS details
Northeast China Central China Total
Contract classification
Sales revenue Cost of sales Sales revenue Cost of sales Sales revenue Cost of sales
Classified by products 2,359,095,419.78 1,976,383,349.72 104,181,929.92 81,521,457.02 2,463,277,349.70 2,057,904,806.74
Manufacture products 1,634,662,922.44 1,331,335,419.87 82,022,403.31 69,732,357.40 1,716,685,325.75 1,401,067,777.27
Project installation 646,726,293.92 605,493,229.78 12,933,786.12 9,013,513.54 659,660,080.04 614,506,743.32
Other products and service 77,706,203.42 39,554,700.07 9,225,740.49 2,775,586.08 86,931,943.91 42,330,286.15
Classified by geography location 2,359,095,419.78 1,976,383,349.72 104,181,929.92 81,521,457.02 2,463,277,349.70 2,057,904,806.74
domestic 2,007,361,543.80 1,702,402,117.66 104,181,929.92 81,521,457.02 2,111,543,473.72 1,783,923,574.68
overseas 351,733,875.98 273,981,232.06 - - 351,733,875.98 273,981,232.06
Timing of goods transferred 2,359,095,419.78 1,976,383,349.72 104,181,929.92 81,521,457.02 2,463,277,349.70 2,057,904,806.74
At a point 2,343,039,094.08 1,961,997,073.96 104,181,929.92 81,521,457.02 2,447,221,024.00 2,043,518,530.98
Over the time 16,056,325.70 14,386,275.76 - - 16,056,325.70 14,386,275.76
Total 2,359,095,419.78 1,976,383,349.72 104,181,929.92 81,521,457.02 2,463,277,349.70 2,057,904,806.74
79
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
43.Taxes and surcharges
Items 2024.01-06 2023.01-06
City construction tax 4,191,721.90 5,012,891.14
Education surcharge 2,740,655.69 3,301,354.09
Property tax 5,346,186.58 4,723,080.56
Land use tax 2,714,905.32 2,298,123.17
Vehicle and vessel tax 49,121.12 25,563.36
Stamp duty 1,389,274.77 1,468,333.41
Others 257,847.91 380,239.90
Total 16,689,713.29 17,209,585.63
44 Administrative expenses
Items 2024.01-06 2023.01-06
Employee benefit 62,779,122.02 53,003,618.73
Official expense 12,880,098.25 15,910,410.28
Depreciation expense 12,380,628.31 8,217,650.71
Maintenance and repair expense 2,660,876.68 6,583,200.78
Long-term assets amortization 4,696,609.89 4,936,405.08
Travel expense 2,907,381.61 2,422,233.31
Design consultant and test service expense 6,150,789.45 2,380,415.42
Safety production cost 1,286,894.88 1,623,788.07
Business entertaining expense 1,358,411.52 867,329.66
Insurance expense 1,050,875.97 530,569.43
Advertisement expense 317,148.02 189,697.37
Transportation expense 5,558.70 6,098.57
Other taxes and fee 1,067,493.02
Technology development expense 25,630.70
Patent trade mark use 5,813,169.52 4,282,306.43
Other expense 7,210,817.25 1,468,461.93
Total 121,498,382.07 103,515,309.49
45.Selling expenses
Items 2024.01-06 2023.01-06
Employee benefit 70,800,262.71 59,354,505.34
Official business expense 8,848,020.72 8,819,360.04
Maintenance and repair expense 6,826,899.98 7,646,873.54
Travel expense 9,885,383.72 9,530,742.36
Business entertaining expense 5,864,137.26 5,902,755.80
80
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Advertisement and bids expense 2,944,327.33 2,876,171.77
Depreciation expense 1,228,970.66 459,564.35
Transportation expense 1,630,180.10
Other expense 3,761,988.98 1,991,491.72
Total 110,159,991.36 98,211,645.02
46.Technology development expense
Items 2024.01-06 2023.01-06
Employee benefit 49,067,952.99 47,345,348.39
Raw material 11,856,892.82 6,471,854.49
Depreciation and amortization expense 7,715,801.12 3,474,989.41
Expenses for intermediate tests and product
2,138,988.55 4,825,843.30
trial production
Patent application maintenance expense 2,056,213.48 2,277,613.96
Consulting expense 1,846,639.56 1,428,004.16
Other expense 3,862,373.95 2,805,164.26
Total 78,544,862.47 68,628,817.97
47.Financial expenses
Items 2024.01-06 2023.01-06
Interest expenses 17,854,195.43 19,165,466.43
Less: interest income 5,243,901.48 5,451,984.39
Add: exchange loss -1,656,875.61 -1,094,669.21
Add: others expenditure 1,389,141.42 3,458,669.55
Total 12,342,559.76 16,077,482.38
48.Other income
Items 2024.01-06 2023.01-06
Input VAT accelerated deduction
Government subsidy 16,801,793.96 1,615,317.51
Insurance premium refund
Personal income tax handling fee refund 145,820.73 180,238.52
Job stability subsidy 808,165.00 19,233.01
VAT deduction for recruiting poor people
Gain on debt restructuring
Land and property tax preference
VAT return
Total 17,755,779.69 1,814,789.04
81
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
49.Gain on fair value change e(loss listed as “-”)
Source of gain on FV change 2024.01-06 2023.01-06
Other noncurrent financial assets -14,510,310.64 4,364,003.20
Total -14,510,310.64 4,364,003.20
50.Investment income
Items 2024.01-06 2023.01-06
Long-term equity investment gain under
17,218,698.46 90,409.95
equity method
Gain from disposal of long-term equity
investment
Gain from FV remeasurement of the shares on
obtaining control
Gain from holding of other noncurrent
4,364,003.20 5,782,304.24
financial assets
Gain from disposal of other no-current
financial assets
Gain on debt restructuring 910,520.61 975,354.50
Discounting fees for bank acceptance note
Dividend received for other equity instrument
held
Total 22,493,222.27 6,848,068.69
51.Credit impairment loss (loss listed as “-”)
Items 2024.01-06 2023.01-06
Bad debt loss on notes receivable -612,136.60 514,834.55
Bad debt loss on receivable -15,906,178.09 -19,995,280.81
Bad debt loss on other receivable 112,093.80 -32,931.60
Bad debt loss on long term receivable 210,600.00
Total -16,406,220.89 -19,302,777.86
52.Assets impairment losses (loss listed as “-”)
Items 2024.01-06 2023.01-06
Loss on impairment of inventory and cost to
3,548,827.87 -2,121,034.16
fulfill the contract obligation
Loss of contract asset impairment 1,369,160.31 -2,784,100.62
Impairment on other non-current asset
Impairment on construction in progress
Total 4,917,988.18 -4,905,134.78
53.Gain on assets disposal (loss listed as “-”)
82
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Item 2024.01-06 2023.01-06
Gain on non-current assets disposal 10,550,303.70 51,209.01
Including: gain on non-current assets
10,550,303.70 51,209.01
disposal not classified as held for sale
Including: gain on fixed assets disposal 10,550,303.70 51,209.01
gain on intangible assets disposal
gain on early derecognition of use
-40,830.85
right asset
Total 10,550,303.70 51,209.01
54. Non-operating income
（1） Non-operating income list
Amounts recognized into non-
Item 2024.01-06 2023.01-06 recurring profit or loss for the
period
Accept donations 17,838.20
Government subsidy 18,820.00
Loss claimed reverse
Penalty received 3,067,629.25 1,042,969.59
2,123,403.42 2,123,403.42
Payables that cannot be paid
Creditor giving up
Gain on disposal of non-current asset 1,481.98 48,523.49
Contract withdrawn and received in advance
transferred to non-operating income
Other items 283,158.78 3,159,314.49
Total 5,475,673.43 4,268,645.77
55.Non-operating expenses
Amounts recognized into
Item 2024.01-06 2023.01-06 non-recurring profit or
loss for the period
Non-current assets scrap loss 4,420,396.06 1,941,578.53
Compensation
Outward donation 250,000.00
Expected loss for open litigation 516,107.28
Others 572,453.25 66,219.46
Total 5,508,956.59 2,257,797.99
83
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
56. Income tax expenses
(1) Income tax expenses
Items 2024.01-06 2023.01-06
Current income tax expenses 16,005,090.09 16,860,971.82
Deferred income tax expenses -4,728,395.28 -2,930,700.26
Others 374,987.78
Total 11,651,682.59 13,930,271.56
(2) Adjustment process of accounting profit and income tax expense
Items Current year
Consolidated total profit this year 90,904,513.16
Income tax expenses at applicable tax rate 13,635,676.97
Effect on subsidiary applied to different tax rate 1,544,532.63
Effect on prior period income tax adjustment 1,429,671.34
Effect on non-taxable income -33,845.90
Effect on non-deductible cost, expense and loss -701,527.88
Effect on use of deductible loss from unrecognized deferred tax assets in
-2,371,695.95
the prior period
Deferred tax assets recognized for prior period temporary difference -1,412,044.18
Effect on temporary difference or deductible loss from unrecognized
1,019,997.53
deferred tax assets this year
R&D expenditure accelerated deduction -1,325,109.53
Others -133,972.44
Income tax expense 11,651,682.59
57. Other comprehensive income
Refer to the note for details.
58. Notes to cash flow statement
(1) Cash relevant to operating activities
1) Cash received relevant to operating activities
Items 2024.01-06 2023.01-06
Deposit returned 19,546,006.90 24,770,821.75
Financial funds 6,153,512.71 2,325,523.26
Lease premium received 4,827,543.24
Government grants
Interest income 3,021,045.94 1,634,285.14
rd
Receivable from the 3 party 160,267.63
84
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Compensation 498,732.48
Received travel expense refund 416,772.56 241,258.21
Frozen money refund 18,333,197.58
Others 10,469,902.40 23,726,351.36
Total 63,426,981.44 52,698,239.72
2) Cash paid relevant to operating activities
Items 2024.01-06 2023.01-06
Expenditure 82,964,653.33 86,955,990.40
Deposit paid 25,735,227.66 50,746,582.86
Frozen accounts 1,843,055.00
Business travel borrowing 7,177,139.72 5,417,669.78
Bank handling charges 1,611,363.39 1,876,929.71
Unsettled AR/AP among non-related party 608,227.80 1,796,642.94
Others 4,116,301.50 5,130,221.28
Total 124,055,968.40 151,924,036.97
(2) Cash relevant to investing activities
1) Significant cash received relevant to investing activities
Items 2024.01-06 2023.01-06
Buy and build long-term assets 33,848,073.69
(3) Cash relevant to financing activities
1) Other cash received relevant to financing activities
Items 2024.01-06 2023.01-06
Notes payable to supplier
Sale leaseback and financial lease 13,464,836.83 6,600,000.00
Notes discounted
Total 13,464,836.83 6,600,000.00
2) Others cash paid relevant to financing activities
Items 2024.01-06 2023.01-06
Payment of guarantee money
Notes payable to supplier 29,687,571.06 -
Sale& leaseback and financial lease 12,217,913.52 200,000.00
Payment factoring 16,703,418.10
Lease premium payable 2,031,692.90 343,314.14
Finance lease deposit and handling fee 21,707,260.07
85
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Discount interest on credit letter
Total 60,640,595.58 22,250,574.21
86
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
3) Changes on liability relevant to financing activities
Increased Decreased
Opening
Items Closing Balance
Balance Non- cash Non- cash
Cash change Cash change
change change
Short-term borrowings 262,287,784.38 252,063,418.15 225,328,358.49 261,457.87 288,761,386.17
Long-term borrowings 679,700,000.00 84,500,000.00 595,200,000.00
Lease liability 24,134,986.97 355,159.87 2,381,180.22 1,916,425.28 3,182,972.87 21,771,928.91
Non-current liability due
150,645,347.64 7,981,258.12 88,875,016.76 64,886,875.32 15,226,938.51 167,387,808.69
within one year
Long-term payable 10,331,937.30 3,114,213.58 9,737,082.59 594,854.71 3,114,213.58
Other payable-supplier
179,737,197.47 77,953,025.81 77,858,459.59 179,831,763.69
platform
Total 1,306,837,253.76 263,514,049.72 169,209,222.79 379,727,201.27 103,766,223.96 1,256,067,101.04
87
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
59. Supplementary information of consolidated cash flow statement
(1) Information
Items 2024.01-06 2023.01-06
1. Adjusting net profit into cash flows of operating
—— ——
activities:
Net profit 79,252,830.57 59,509,075.65
Add: Provision for impairment of assets 11,488,232.70 24,207,912.64
Provision for impairment of credit
Depreciation of fixed assets, Amortization of
67,157,882.50 66,602,534.41
mineral resources, and biological assets
Depreciation of right-of-use assets 5,049,363.00 7,629,958.28
Amortization of intangible assets 6,555,921.51 5,119,204.71
Amortization of long-term deferred expenses 850,764.59 790,082.45
Losses on disposal of fixed assets, intangible assets,
-10,550,303.70 -51,209.01
and long-term assets (income listed with”-”)
Losses on write-off of fixed assets (income listed
4,418,914.08 1,893,055.04
with”-”)
Change of fair value profit or loss 14,510,310.64 -4,364,003.20
Financial expense (income listed with”-”) 17,854,195.43 19,165,466.43
Investment loss (income listed with”-”) -22,493,222.27 -6,848,068.69
Decrease of deferred tax assets (increase listed
-5,849,741.67 12,273,911.09
with”-”)
Increase of deferred tax liabilities (decrease listed
-3,913,392.37 -1,393,689.97
with”-”)
Decrease of inventories (increase listed with”-”) 208,299,575.18 -169,798,737.23
Decrease of operating receivables (increase listed
-72,167,535.80 -373,658,442.52
with”-”)
Increase of operating payables (decrease listed
-333,049,779.14 232,128,752.94
with”-”)
Others
Net cash flows arising from operating activities -32,585,984.75 -126,794,196.98
2. Significant investment and financing activities
— —
unrelated to cash income and expenses
Liabilities transferred to capital - -
Convertible bonds within 1 year - -
Financing leased fixed assets - -
88
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Items 2024.01-06 2023.01-06
3. Net increase (decrease) of cash and cash
— —
equivalent
Closing balance of cash 550,294,029.37 828,668,546.58
Less: Opening balance of cash 670,440,335.98 921,663,803.17
Add: Closing balance of cash equivalent - -
Less: Opening balance of cash equivalent - -
Net increase of cash and cash equivalent -120,146,306.61 -92,995,256.59
(2) Cash and cash equivalents
Items 2024.01-06 2023.01-06
Cash 550,294,029.37 670,440,335.98
Including: Cash on hand 8,731.54 70,750.93
Bank deposit used for paying at any moment 550,285,297.83 670,303,450.55
Other monetary fund for paying at any moment 66,134.50
Deposit fund in central bank available for payment - -
Cash equivalent - -
Including: bonds investment with maturity in 3 months - -
Closing balance of cash and cash equivalents 550,294,029.37 670,440,335.98
Cash and cash equivalents with restriction within the
- -
Company and its subsidiaries of the group
(3) Monetary fund not belonging to cash and cash equivalent
Items 2024.01-06 2023.01-06 Reasons
Fixed term deposit 168,000,000.00 Held to maturity
Guarantee money for bank
36,876,793.17 66,218,472.37 Guarantee money
acceptance note
Guarantee money for guarantee
15,800,743.03 37,235,734.79 Guarantee money
letter
Frozen 4,433,975.45 Frozen
Rural workers’ salary account
250,983.28 3,191,970.58 Special account
restriction
Interest receivable 4,026,730.52 4,026,730.52 Held to maturity
Rural workers guarantee fund
Total 229,389,225.45 106,646,177.74 —
60. Change of shareholder’s equity
None
61. Monetary category of foreign currency
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
(1) Monetary category of foreign currency
Closing Balance Exchange
Item Closing Balance (RMB)
(foreign currency) Rate
Cash — — —
Including：USD 2,459,454.74 7.1268 17,528,042.04
JPY 327,878,608.00 0.0447 14,656,173.78
Euro 243,961.67 7.6617 1,869,161.13
HK$
Accounts receivable — — —
Including: USD 7,824,447.04 7.1268 55,763,269.16
JPY 123,625,890.00 0.0447 5,526,077.28
Euro 1,143,852.30 7.6617 8,763,853.17
GBP 177,717.86 9.043000 1,607,102.61
Accounts payable — — —
Including: USD 885,752.26 7.1268 6,312,579.21
GBP 37,274.28 9.0430 337,071.31
JPY 75,738,827.90 0.0447 3,385,525.61
Other accounts payable — — —
Including: JPY 8,304,510.00 0.0447 371,211.60
62. Lease
(1) As a lessor
Operating lease
Include: income related to variable lease
Items Lease income payments not included in lease payment
receivable
Office and plant 6,589,255.88 -
Apartment 74,477.16 -
Total 6,663,733.04 -
63. Research and development expense
Items 2024.01-06 2023.01-06
Labor cost 49,067,952.99 47,345,348.39
Material cost 11,856,892.82 6,471,854.49
Depreciation and amortization 7,715,801.12 3,474,989.41
Expenses for intermediate tests and product trial
2,138,988.55 4,825,843.30
production
Patent application maintenance expenses 2,056,213.48 2,277,613.96
90
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Items 2024.01-06 2023.01-06
Consulting fee 1,846,639.56 1,428,004.16
Others 3,862,373.95 2,805,164.26
Total 78,544,862.47 68,628,817.97
Expensed R&D 78,544,862.47 68,628,817.97
Capitalized R&D - -
VII. Change of Consolidation Scope
None.
VIII. Interest in other entity
1.Equity of subsidiaries
(1) Organization structure of group company
Registered Main Shareholding (%)
Registere Obtaining
Name of subsidiaries capital business Business nature
d address Direct Indirect method
（10K） address
Dalian Bingshan Group
30,000.00 Dalian Dalian Installation 100 - Establish
Engineering Co., Ltd.
Chengdu Bingshan
Refrigeration Engineering 1,000.00 Chengdu Chengdu Service - 51 Establish
Co., Ltd.
Dalian Bingshan Group
1,800.00 Dalian Dalian Trading 100 - Establish
Sales Co., Ltd.
Dalian Bingshan Air-
conditioning Equipment Co., 8,254.00 Dalian Dalian Manufacturing 100 - Establish
Ltd.
Dalian Bingshan Guardian
5,070.07 Dalian Dalian Manufacturing 100 - Establish
Automation Co., Ltd.
Dalian Bingshan-
RYOSETSU Quick Freezing 5,757.87 Dalian Dalian Manufacturing 100 - Establish
Equipment Co., Ltd.
Wuhan New World
Refrigeration Industrial Co., 20,000.00 Wuhan Wuhan Manufacturing 100 - Acquisition
Ltd.
Wuhan New World Air-
conditioning Refrigeration 3,500.00 Wuhan Wuhan Installation - 100 Establish
Engineering Co., Ltd
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Registered Main Shareholding (%)
Registere Obtaining
Name of subsidiaries capital business Business nature
d address Direct Indirect method
（10K） address
Wuhan Lanning Energy
2,200.00 Wuhan Wuhan Trading - 100 Acquisition
Technology Co., Ltd.
Dalian Universe Thermal
8,000.00 Dalian Dalian Manufacturing 55 - Acquisition
Technology Co., Ltd.
Dalian Bingshan
Engineering & Trading Co., 3,000.00 Dalian Dalian Service 100 - Acquisition
Ltd
Sonyo Compressor
44,239.67 Dalian Dalian Manufacturing 100 - Acquisition
(Dalian)Co., Ltd.
Sonyo Refrigeration System
10,500.00 Dalian Dalian Manufacturing 100 - Acquisition
(Dalian) Co., Ltd.
Sonyo Refrigeration
21,208.47 Dalian Dalian Manufacturing 100 - Acquisition
(Dalian) Co., Ltd.
1) All the proportion of shareholding in subsidiaries were the same with voting right.
2) The Company held over 50% voting right in subsidiaries and could control these
subsidiaries with over 50% voting right.
(2) There are no significant non-subsidiaries.
2.Change of equity share in subsidiary which is still under control
（1） Change of equity share in subsidiary
None.
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
3.Equity in joint venture arrangement or associated enterprise
（1） The important affiliated companies
Shareholding (%)
Main
Name of joint ventures or Registered Business Accounting
business
affiliated companies address nature methods
address
Direct Indirect
Dalian Bingshan Metal Equity
Dalian Dalian Manufacturing 49.00 -
Technology Co., Ltd. method
1) The Company has the same percentage of shareholding and voting right in joint-venture or affiliated
company.
2) The Company doesn’t have joint venture or affiliated companies which have no significant influence
although being held 20% or more voting rights.
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
（2） The key financial information of affiliated companies
Closing balance/Current period
Items
Dalian Bingshan Metal Technology Co., Ltd.
Current assets 348,867,456.94
Including: Cash and cash equivalents
Non-current assets 38,884,813.91
Total assets 387,752,270.85
Current liabilities 43,335,222.77
Non-current liabilities
Total liabilities 43,335,222.77
Total net asset
Minority interests
Equity to the parent company 344,417,048.08
Share of net assets according to the shareholding proportions 172,208,524.04
Adjusting events
—Goodwill 19,269,770.94
—Unrealized profits of insider trading
--Others
Book value of equity investment of affiliated companies 187,960,208.13
Fair value of equity investment with public offer
94
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Closing balance/Current period
Items
Dalian Bingshan Metal Technology Co., Ltd.
Operating income 218,341,334.10
Financial expense
Income tax expense
Net profit 30,169,947.69
Net profit of discontinuing operation
Other comprehensive income
Total comprehensive income 30,169,947.69
The current dividends received from joint ventures
95
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
(Continued)
Opening balance/Last period
Items Dalian Fuji Bingshan Vending Jiangsu Jingxue Insulation Dalian Bingshan Metal
Machine Co., Ltd Technology Co., Ltd Technology Co., Ltd.
Current assets 392,953,074.08 1,412,248,730.10 371,483,253.15
Including: Cash and cash equivalents
Non-current assets 197,158,934.76 302,148,077.97 41,816,984.14
Total assets 590,112,008.84 1,714,396,808.07 413,300,237.29
Current liabilities 345,312,560.80 867,213,016.64 66,769,535.67
Non-current liabilities 50,307,454.75 38,312,160.00 0.00
Total liabilities 395,620,015.55 905,525,176.64 66,769,535.67
Total net asset
Minority interests 251,106.06
Equity to the parent company 194,491,993.29 808,620,525.37 346,530,701.62
Share of net assets according to the
95,301,076.71 120,450,148.93 169,800,043.79
shareholding proportions
Adjusting events - - -
—Goodwill 226,689.29 20,390,060.33 19,269,770.94
—Unrealized profits of insider trading - - -
--Others - -
Book value of equity investment of
95,527,766.00 140,840,209.26 189,069,814.73
affiliated companies
Fair value of equity investment with public
- - -
offer
96
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Opening balance/Last period
Items Dalian Fuji Bingshan Vending Jiangsu Jingxue Insulation Dalian Bingshan Metal
Machine Co., Ltd Technology Co., Ltd Technology Co., Ltd.
Operating income 95,101,008.52 326,567,962.40 233,048,775.05
Financial expense
Income tax expense
Net profit 2,717,196.06 15,601,156.92 28,223,484.22
Net profit of discontinuing operation - - -
Other comprehensive income - - -
Total comprehensive income 30,169,947.69 2,717,196.06 15,601,156.92
The current dividends received from joint
ventures
97
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
（3） Summary financial information of insignificant affiliated companies
Items 2024.01-06 2023.01-06
Affiliated company — —
Total book value of investment of affiliated
346,676,683.88 77,435,611.67
companies
The total of following items according to the
shareholding proportions — —
Net profit 12,308,014.93 247,249.62
Other comprehensive income 12,308,014.93 247,249.62
Total comprehensive income
（4） Significant restrictions of the ability of affiliated companies transferring funds to the
Company.
No.
（5） Contingency related to joint venture or affiliated company need to be disclosed.
No.
XI. Disclosure of Fair Value
1. Amount and measurement level of the assets and liabilities measured at fair value at the period
end
Fair value at the period end
1st level 2nd level 3rd level
Items
measurement of measurement of measurement of Total
FV FV FV
Financial assets
Continuously — — — —
measured at FV
Receivable
233,756,806.93 233,756,806.93
financing
Other non-current
147,830,608.40 1,683,852.59 149,514,460.99
financial asset
Total 147,830,608.40 233,756,806.93 1,683,852.59 383,271,267.92
2. Basis for Market price of first level measurement of fair value
Equity instrument portion of the other noncurrent financial asset is measured at the unadjusted
98
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
closing quoted price of Guotai Junan shares on stock market on June 28, 2024.
3. For continuous and discontinuous 2nd level of FV, valuation technique adopted and key
parameter quantitive and qualitive information.
Bank acceptance notes (receivable financing) as measured at fair value through other
comprehensive income is within this scope. Bank acceptance notes held by the group mainly
are high credit grading from the large commercial bank. As the remaining maturity is short and
credit risk is very low, on the balance sheet date, the book value of bank acceptance notes
receivable is similar to fair value.
4. For continuous and discontinuous 3rd level of FV, valuation technique adopted and key
parameter quantitive and qualitive information.
As of December 28, 2024, the book value of the share investment in Guotai Junan Investment
Management Co.,Ltd and Wuhan Steel and Power Co.,Ltd is 1,683,852.59 Yuan. It is presented
as other non-current financial asset in accordance with No.22- financial instrument recognition
and measurement of Accounting Standards for Business Enterprises. Having considered
there is neither active market for invested company’s share nor market price is available for
reference, and it is not feasible to obtain the relevant observable input value. FV of the
investment is measured at cost by taking influence factor of FV into consideration.
5. For continuous 3rd level of FV, adjusted information of opening and closing balance and
sensitivity analysis of unobservable parameter.
No.
6. Assets continuously measured at fair value have switched among different level during
the year.
No.
7. Changes of valuation technique and reasons for changes
No.
8. Assets and liability are disclosed at FV rather than measured at FV
No.
XII. Related Parties Relationship and Transactions
i. Related parties’ relationship
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
99
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Registered
Registered Business Shareholding Voting power
Parent company capital
address nature percentage (%) percentage (%)
（10K）
Dalian Bingshan
Dalian Manufacture 15,858.00 20.27 20.27
Group Co., Ltd.
Note: Dalian Bingshan Group Co., Ltd. is a Sino –foreign joint venture located No.106 Liaohe
East Road, DDZ, Dalian, China. The legal representative of Dalian Bingshan Group Co., Ltd. is
Mr. Ji Zhijian, and the registered capital is RMB158.58 million. The registered business operation
period is from 3rd July 1985 to 2nd July 2035. The business scope includes research, development,
manufacture, sales, service and installment of refrigeration equipment, cooling and freezing
equipment, different size of air-conditioners, petrochemical equipment, electronic and electronic-
control products, home electronic appliance, environment protect equipment and etc. (unless the
licenses needed)
The Company’s ultimate controller is Dalian Bingshan Group Co., Ltd.
2. Subsidiaries
Referrer to the content in the Note “VIII. 1. (1) Organization structure of group company”.
3. Affiliated company and joint venture
The information of the affiliated company and joint venture please refers to the note “VIII. 3.(1)
The significant affiliated company and joint venture’. The Company had transactions with related
parties during the current period or last period, including:
Names of the joint ventures or affiliated company Relationships with the Company
Keinin-Grand Ocean Thermal Technology (Dalian) Co., Ltd. Affiliated company of the Company
Dalian Fuji Bingshan Vending Machine Co., Ltd. Affiliated company of the Company
Dalian Fuji Bingshan Vending Machine Sales Co., Ltd. Affiliated company of the Company
Jiangsu Jingxue Insulation Technology Co., Ltd. Affiliated company of the Company
MHI Bingshan Refrigeration (Dalian) Co., Ltd. Affiliated company of the Company
Dalian Honjo Chemical Co., Ltd. Affiliated company of the Company
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Names of the joint ventures or affiliated company Relationships with the Company
Dalian Bingshan Metal Technology Co., Ltd. Affiliated company of the Company
Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd. Affiliated company of the Company
Wuhan Sikafu Power Control Equipment Co., Ltd. Affiliated company of its subsidiary
Dalian Bingshan Group Huayida Commercial Factoring Co., LTD Subsidiary of its affiliated company
Dalian Jingxue Freezing Equipment Co., Ltd. Subsidiary of its affiliated company
Shanghai Jingxue Freezing Equipment Co., Ltd. Subsidiary of its affiliated company
Jiangsu Jingxue Insulation Environmental Engineering Co., Ltd. Subsidiary of its affiliated company
Keinin-Grand Ocean New energy Auto Parts (Changchun) Co., LTD Subsidiary of its affiliated company
4. Other related parties
Name of related party Related party relationship
Company under direct/indirect Control of Panasonic Co., Both parties are under the control of or significant
Ltd influence by the same party
Both parties are under the control of or significant
Sanyo Corporation
influence by the same party
Panasonic Corporation of China Co., Ltd Directors of the Company also serve as directors
Both parties are under the control of or significant
Dalian Spindle Environmental Facilities Co., Ltd.
influence by the same party
Both parties are under the control of or significant
LINDE HYDROGEN FUELTECH (DALIAN) CO., LTD.
influence by the same party
Both parties are under the control of or significant
Dalian Fuji Bingshan Control System Co., Ltd.
influence by the same party
Both parties are under the control of or significant
BAC Dalian Co., Ltd.
influence by the same party
Both parties are under the control of or significant
Dalian Bingshan Wisdom Park Co., Ltd
influence by the same party
Both parties are under the control of or significant
Dalian Shentong Electric Co., Ltd.
influence by the same party
Dalian Bingshan Part Technology Co., LTD. Under control of the same ultimate controlling party
Alphavita Bio-scientific (Dalian) Co., Ltd. Under control of the same ultimate controlling party
Bingshan Technology Service （Dalian） Co., Ltd. Under control of the same ultimate controlling party
Directors and senior officers of the Company serve as
Dalian Zhonghuida Refrigeration Technology Co., Ltd directors and senior officers in Dalian Zhonghuida
Refrigeration Technology Co., Ltd Company
Sonyo Cold Chain (Dalian) Co., Ltd. Under control of the same ultimate controlling party
Sonyo Cold Chain (Dalian) Equipment (Wuhan) Co., LTD Under control of the same ultimate controlling party
101
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Name of related party Related party relationship
The directors and senior officers of the Company shall
Dalian Kangyang Industry Group Co., LTD
serve as the directors and senior officers of the Company
Note: Companies under direct/indirect Control of Panasonic Co., Ltd are:
Panasonic Electric Taiwan Co.,Ltd, Wanbao(Guangzhou) Compressor Co.,Ltd, Panasonic
Electronic Devices(Jiangmen)Co.,Ltd, Panasonic R&D Center Suzhou Co.,Ltd Dalian Branch,
Panasonic Procurement(CHINA)Co.,Ltd, Panasonic Industry (China) Co., Ltd. Panasonic
Corporation, Panasonic Industry (China) Co., Ltd Shanghai Branch, Beijing 2nd Branch of
Panasonic Electric Equipment (China）Co.,Ltd, Panasonic Electric Equipment (China）Co.,Ltd,
Panasonic Appliances Air-Conditioning and Refrigeration Corporation, Panasonic Appliances
Microwave Oven(Shanghai) Co.,Ltd, Panasonic Motor(Hangzhou)Co.,Ltd., Panasonic Home
Appliances Air-Conditioning(Guangzhou)Co.,Ltd., Panasonic Hong Kong Co., Limited,
PANASONIC PROCUREMENT (CHINA) CO., LTD. Sonyo Refrigeration (Dalian) Co., Ltd.,
Sonyo Cold Chain (Dalian) Co., Ltd..
Panasonic Appliances Air-Conditioning Malaysia SDN BHD, Panasonic Taiwan CO.,LTD.,
Panasonic Sales Taiwan CO.,LTD, Panasonic Procurement Malaysia SDN BHD, Panasonic Hong
Kong Co.,Ltd, Panasonic Operational Excellence Co.,Ltd.(Pex), Panasonic Life Solutions India,
Panasonic Industry Sales Asia, Panasonic Industry Europe GmbH, Panasonic Industrial Devices
Sales, Panasonic India Pvt Ltd(APIN), Panasonic Global Procurement, Panasonic DoBrasil
Limited–Miam, Panasonic Corporation Appliances Company Heating&Cooling Solutions Bd
Commercial Air-Conditioning, Panasonic Corporation Appliances Company, Panasonic
Corporation, Panasonic Commercial Equipment Systems Taiwan Co.Ltd, Panasonic Commercial
Equipment Systems Asia, Panasonic Automotive&Industrial, Panasonic Appliances Air-
Conditioning Malaysia Sdn.BHD, Panasonic Appliances Air-Conditioning, Pacific. Panasonic
Commercial Equipment Systems Asia Pacific, Panasonic Heating&Ventilation, Panasonic
Appliances Air-conditioning, Panasonic A.P. SALES (THAILAND) CO., LTD
ii. Related Party transactions
1. Purchase of goods, offer and receive labour services etc inter-group transactions
(1) Purchase of goods/receive labour services
Related party Content 2024.01-06 2023.01-06
Dalian Bingshan Metal Technology Co., Ltd. Purchases of goods 30,782,824.32 30,587,674.23
Sonyo Cold Chain (Dalian)Co. Ltd Purchases of goods 27,635,764.08 5,702,273.24
Jiangsu Jingxue Insulation Technology Co., Ltd. Purchases of goods 7,744,955.77 20,046,515.95
BAC Dalian Co., Ltd. Purchases of goods 4,721,558.13 9,666,650.44
Company under direct/indirect Control of
Purchases of goods 6,077,302.57 16,061,957.06
Panasonic Co., Ltd
102
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Related party Content 2024.01-06 2023.01-06
Dalian Bingshan Part Technology Co., LTD. Purchases of goods 18,864,725.92 17,854,202.15
Dalian Honjo Chemical Co., Ltd Purchases of goods 3,902,513.39 3,063,274.33
Bingshan Technology Service （Dalian） Co.,
Purchases of goods 1,729,423.88 1,028,124.44
Ltd.
Dalian Fuji Bingshan Control System Co., Ltd. Purchases of goods 111,504.43 8,276.00
Alphavita Bio-scientific (Dalian) Co., Ltd. Purchases of goods 0.00 1,254,598.22
Dalian Shentong Electric Co., Ltd. 3,788,058.16 3,224,632.53
Dalian Fuji Bingshan Vending Machine Co., Ltd Purchases of goods 1,158.38 206,432.86
Dalian Spindle Environmental Facilities Co., Ltd Purchases of goods 349,724.76 816,701.77
Dalian Bingshan Wisdom Park Co., Ltd Purchases of goods 5,896.23
Receive labor
Dalian Bingshan Group Co., Ltd. 1,886.80
services
Shanghai Jingxue Freezing Equipment Co., Ltd Purchases of goods 53,008.85
Dalian Bingshan Group Huahuida Financial
Purchases of goods 1,715.65
Leasing Co., Ltd
Total — 105,766,125.09 109,527,209.45
(2) Sales of goods/ labour services provision
Related party Content 2024.01-06 2023.01-06
Company under direct/indirect Control of
Sales of goods 144,059,445.50 131,295,821.04
Panasonic Co., Ltd
Sonyo Cold Chain (Dalian) Co., Ltd Sales of goods 53,547,002.76 39,240,301.87
BAC Dalian Co., Ltd Sales of goods 44,032,558.17 24,322,577.92
Bingshan Technology Service （Dalian） Co.,
Sales of goods 26,992,915.42 18,019,442.13
Ltd.
Dalian Fuji Bingshan Vending Machine Co., Ltd Sales of goods 4,884,735.34 10,541,125.91
Dalian Bingshan Wisdom Park Co., Ltd Sales of goods 4,715,774.63 6,689,927.98
MHI Bingshan Refrigeration (Dalian) Co., Ltd. Sales of goods 3,738,455.62 5,233,706.75
Alphavita Bio-scientific (Dalian) Co., Ltd. Sales of goods 1,680,522.42 2,791,630.38
Dalian Spindle Environmental Facilities Co., Ltd Sales of goods 660,413.34 3,277,492.69
Dalian Honjo Chemical Co., Ltd Sales of goods 34,400.88 54,351.13
Dalian Bingshan Part Technology Co., LTD Sales of goods 1,479,174.40 750,927.00
Linde Hydrogen Fueltech (Dalian) Co., Ltd Sales of goods 66,878.51 536,171.21
Dalian Fuji Bingshan Control System Co., Ltd. Sales of goods 251,472.27 25,708.47
Dalian Bingshan Metal Technology Co., Ltd. Sales of goods 163,716.81
Dalian Shentong Electric Co., Ltd Sales of goods 112,355.73 194,881.40
Dalian Jingxue Freezing Equipment Co., Ltd Sales of goods 41,477.53
Dalian Bingshan Group Huahuida Financial
Sales of goods 26,645,039.63
Leasing Co., Ltd
Wuhan Sikafu Power Control Equipment Co., Ltd. Sales of goods 1,946.90
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Related party Content 2024.01-06 2023.01-06
Total — 286,461,299.33 269,621,052.41
(3) Assets Lease
(1) Assets rent out
Current
Category of Last period Lease
Lessee period Lease
assets rent out Income
Income
Dalian Jingxue Freezing Equipment Co., Ltd Plant and office 392,463.94 392,463.94
Dalian Bingshan Wisdom Park Co., Ltd Land/property 4,506,673.78 4,009,659.86
MHI Bingshan Refrigeration (Dalian) Co., Ltd. Plant 1,904,761.90 1,904,761.90
Linde Hydrogen Fueltech (Dalian) Co., Ltd Plant 398,985.66
Bingshan Technology Service （Dalian） Co.,
Plant 163,259.51 147,436.30
Ltd.
Wuhan Sikafu Power Control Equipment Co., Ltd Plant 496,132.49 540,784.41
Plant /Employee
Sonyo Cold Chain (Dalian)Co. Ltd 1,281,178.90
dormitory
Dalian Bingshan Part Technology Co., Ltd. Plant and office 461,009.22
Dalian Spindle Environmental Facilities Co., Ltd. office 5,284.40
(2) Assets under lease
Category of Lease premium paid
Lessor
assets rent in 2024.01-06 2023.01-06
Dalian Bingshan Group Huahuida
Fixed asset 1,459,606.47 15,428,358.65
Financial Leasing Co., Ltd
Sonyo Cold Chain (Dalian)Co. Ltd Plant 1,700,966.97
(Continued)
Interests on lease liabilities Increased right-of-use assets
Lessor
2024.01-06 2023.01-06 2024.01-06 2023.01-06
Dalian Bingshan Group Huahuida
456,010.73 1,549,756.51 0.00 0.00
Financial Leasing Co., Ltd
Sonyo Cold Chain (Dalian)Co.
198,459.63
Ltd
(4) Warranty provided by Related Parties
The national development fund planned to support the Company’s intelligent and green
equipment of cold chain and service industry base project, and provide the special fund to the
104
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
controlling shareholder of the Company, Bingshan Group. Please refer to the “Note VI. 33 long
term borrowings”.
Funds borrow from /lent to related party
Starting Ending
Name of the related party Amount Explanation
date date
Project fund
Dalian Bingshan Group Co., Ltd. 100,000,000.00 2016.03.14 2026.03.13 investment
Dalian Bingshan Group Huahuida
32,833,000.00 2022.09.29 2024.09.28 Factoring
Financial Leasing Co., Ltd
Dalian Bingshan Group Huayida
15,000,000.00 2023.12.25 2024.12.24 Factoring
Commercial Factoring Co., Ltd
Dalian Bingshan Group Huahuida Sale and
Financial Leasing Co., Ltd 13,805,309.73 2021.11.10 2026.11.09 leaseback
Dalian Bingshan Group Huahuida Sale and
Financial Leasing Co., Ltd 12,000,000.00 2022.01.07 2025.01.06 leaseback
Dalian Bingshan Group Huahuida Sale and
Financial Leasing Co., Ltd 6,600,000.00 2023.02.24 2025.02.23 leaseback
Dalian Bingshan Group Huahuida
4,559,849.17 2023.08.31 2024.08.30 Factoring
Financial Leasing Co., Ltd
Dalian Bingshan Group Huahuida
3,499,485.17 2023.10.10 2024.10.09 Factoring
Financial Leasing Co., Ltd
Dalian Bingshan Group Huayida
2,367,580.50 2023.12.22 2024.12.21 Factoring
Commercial Factoring Co., Ltd
Dalian Bingshan Group Huahuida Sale and
Financial Leasing Co., Ltd 2,000,000.00 2024.1.24 2026.1.23 leaseback
Dalian Bingshan Group Huahuida
1,531,366.55 2023.09.08 2024.09.07 Factoring
Financial Leasing Co., Ltd
Dalian Bingshan Group Huahuida
1,000,000.00 2024.01.19 2026.01.18 Factoring
Financial Leasing Co., Ltd
Dalian Bingshan Group Huahuida
1,000,000.00 2024.01.19 2026.01.18 Factoring
Financial Leasing Co., Ltd
Dalian Bingshan Group Huahuida
1,000,000.00 2024.06.19 2026.06.18 Factoring
Financial Leasing Co., Ltd
Dalian Bingshan Group Huahuida
800,000.00 2024.01.19 2026.01.18 Factoring
Financial Leasing Co., Ltd
Dalian Bingshan Group Huahuida
800,000.00 2024.01.19 2026.01.18 Factoring
Financial Leasing Co., Ltd
Dalian Bingshan Group Huahuida
731,470.43 2023.10.17 2025.10.16 Factoring
Financial Leasing Co., Ltd
Dalian Bingshan Group Huayida
700,000.00 2024.01.19 2026.01.18 Factoring
Commercial Factoring Co., Ltd
Dalian Bingshan Group Huayida
500,000.00 2024.01.19 2026.01.18 Factoring
Commercial Factoring Co., Ltd
Dalian Bingshan Group Huahuida
500,000.00 2024.01.19 2026.01.18 Factoring
Financial Leasing Co., Ltd
Dalian Bingshan Group Huayida
163,920.00 2023.12.15 2025.12.14 Factoring
Commercial Factoring Co., Ltd
Dalian Bingshan Group Huayida
400,000.00 2024.01.19 2026.01.18 Factoring
Commercial Factoring Co., Ltd
Dalian Bingshan Group Huayida
300,000.00 2024.01.19 2026.01.18 Factoring
Commercial Factoring Co., Ltd
105
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Dalian Bingshan Group Huahuida Sale and
Financial Leasing Co., Ltd
20,000.00 2024.02.27 2024.08.26 leaseback
(5) Asset transfer and debt restructuring among the related parties
Item Transaction 2024.01-06 2023.01-06
Purchase shareholdings of
Sanyo Corporation 87,171,300.00
affiliated company
Panasonic Corporation of China Co., Purchase shareholdings of
58,114,200.00
Ltd affiliated company
(6) Other transactions with related party
None
iii. Balances with Related party
1.Accounts receivable due from related parties
Closing Balance
Item Related party Bad debt
Book Balance
Provision
4,067,135.2
Accounts receivable Sonyo Cold Chain (Dalian)Co. Ltd 66,429,811.00
4
1,897,562.7
Accounts receivable BAC Dalian Co., Ltd 27,030,808.53
5
Accounts receivable Company under direct/indirect Control of
23,342,611.08 978,476.89
Panasonic Co., Ltd
Accounts receivable Dalian Bingshan Wisdom Park Co., Ltd 12,717,710.38 983,945.49
Accounts receivable Dalian Fuji Bingshan Vending Machine Co., Ltd 6,741,433.52 473,248.63
Accounts receivable MHI Bingshan Refrigeration (Dalian) Co., Ltd. 968,782.46 68,008.52
Accounts receivable Alphavita Bio-scientific (Dalian) Co., Ltd. 2,224,344.71 51,478.32
Accounts receivable Dalian Bingshan Part Technology Co., LTD 4,073,840.15 68,774.31
Accounts receivable Dalian Spindle Environmental Facilities Co., Ltd 374,575.73 26,295.22
Accounts receivable Bingshan Technology Service （Dalian） Co.,
7,751,655.11 554,508.82
Ltd.
Accounts receivable Linde Hydrogen Fueltech (Dalian) Co., Ltd 786,500.99 131,660.27
Accounts receivable Dalian Bingshan Group Huahuida Financial
0.00 0.00
Leasing Co., Ltd
Accounts receivable Dalian Fuji Bingshan Control System Co., Ltd. 54,200.00 13,515.83
Bingshan Technology Service （Dalian） Co.,
Other receivable 400,000.00 14,640.00
Ltd.
Other receivable Dalian Fuji Bingshan Vending Machine Co., Ltd 0.00 0.00
Wuhan Sikafu Power Control Equipment Co.,
Other receivable Ltd.
0.00 0.00
Prepayment Jiangsu Jingxue Insulation Technology Co., Ltd. 0.00 0.00
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Closing Balance
Item Related party Bad debt
Book Balance
Provision
Prepayment Company under direct/indirect Control of
2,771.21 0.00
Panasonic Co., Ltd
Prepayment Sonyo Cold Chain (Dalian)Co. Ltd 9,032.00 0.00
Prepayment BAC Dalian Co., Ltd 248,550.29 0.00
Prepayment Dalian Fuji Bingshan Vending Machine Co., Ltd 0.00 0.00
Dalian Fuji Bingshan Vending Machine Sales
Prepayment Co., Ltd.
0.00 0.00
Bingshan Technology Service （Dalian） Co.,
Prepayment Ltd.
432,849.88 0.00
Prepayment Dalian Bingshan Part Technology Co., LTD 6,660.00 0.00
Contract asset Dalian Bingshan Wisdom Park Co., Ltd 550,000.00 38,610.00
(Continued)
Opening Balance
Item Related party Bad debt
Book Balance
Provision
Accounts receivable Sonyo Cold Chain (Dalian)Co. Ltd 84,045,272.25 4,997,695.76
Accounts receivable BAC Dalian Co., Ltd 28,426,981.24 1,995,574.08
Accounts receivable Company under direct/indirect Control of
12,595,875.91 174,589.96
Panasonic Co., Ltd
Accounts receivable Dalian Bingshan Wisdom Park Co., Ltd 10,199,546.41 807,170.38
Accounts receivable Dalian Fuji Bingshan Vending Machine
6,270,661.55 440,200.44
Co., Ltd
Accounts receivable MHI Bingshan Refrigeration (Dalian) Co.,
3,390,197.07 237,991.83
Ltd.
Accounts receivable Alphavita Bio-scientific (Dalian) Co., Ltd. 2,791,425.71 200,691.99
Accounts receivable Dalian Bingshan Part Technology Co.,
1,606,085.44 52,796.80
LTD
Accounts receivable Dalian Spindle Environmental Facilities
1,072,064.56 75,258.93
Co., Ltd
Accounts receivable Bingshan Technology Service
965,375.22 67,769.34
（Dalian） Co., Ltd.
Accounts receivable Linde Hydrogen Fueltech (Dalian) Co.,
909,470.99 139,380.02
Ltd
Accounts receivable Dalian Bingshan Group Huahuida
138,450.00 9,719.19
Financial Leasing Co., Ltd
Accounts receivable Dalian Fuji Bingshan Control System Co.,
54,200.00 6,410.69
Ltd.
Bingshan Technology Service
Other receivable 100,000.00 100,000.00
（Dalian） Co., Ltd.
Dalian Fuji Bingshan Vending Machine
Other receivable Co., Ltd
48,000.00 7,608.00
Wuhan Sikafu Power Control Equipment
Other receivable Co., Ltd.
4,287.61 156.93
107
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Opening Balance
Item Related party Bad debt
Book Balance
Provision
Prepayment Jiangsu Jingxue Insulation Technology
4,088,975.80
Co., Ltd.
Prepayment Company under direct/indirect Control of
1,152,192.68
Panasonic Co., Ltd
Prepayment Sonyo Cold Chain (Dalian)Co. Ltd 636,235.00
Prepayment BAC Dalian Co., Ltd 216,191.11
Dalian Fuji Bingshan Vending Machine
Prepayment Co., Ltd
176,869.45
Dalian Fuji Bingshan Vending Machine
Prepayment Sales Co., Ltd.
77,000.00
Bingshan Technology Service
Prepayment （Dalian） Co., Ltd.
74,297.11
Prepayment Dalian Bingshan Part Technology Co.,
13,806.00
LTD
Contract asset Dalian Bingshan Wisdom Park Co., Ltd 550,000.00 38,610.00
2. Accounts Payable due from Related Party
Closing Opening
Item Related party
Balance Balance
Accounts Payable Jiangsu Jingxue Insulation Technology Co., Ltd 58,581,762.77 65,052,640.75
Accounts Payable BAC Dalian Co., Ltd 18,018,414.59 21,731,458.82
Accounts Payable Sonyo Cold Chain (Dalian)Co., Ltd 10,001,475.64 10,067,451.24
Accounts Payable Dalian Bingshan Metal Technology Co., Ltd 11,644,244.95 9,745,165.83
Accounts Payable Dalian Honjo Chemical Co., Ltd. 1,543,794.51 6,672,533.86
Accounts Payable Dalian Bingshan Part Technology Co., LTD 5,282,363.53 6,266,070.43
Jiangsu Jingxue Insulation Environmental
Accounts Payable 2,896,300.00
Engineering Co., Ltd
Company under direct/indirect Control of
Accounts Payable 240,738.74 864,418.25
Panasonic Co., Ltd
Accounts Payable Dalian Spindle Environmental Facilities Co., Ltd 727,006.00 794,006.00
Accounts Payable Dalian Fuji Bingshan Control System Co., Ltd. 329,479.00 502,571.47
Bingshan Technology Service （Dalian） Co.,
Accounts Payable 236,195.26 126,241.74
Ltd.
Accounts Payable Dalian Shentong Electric Co., Ltd 353,924.27
Dalian Bingshan Group Huayida Commercial
Other payable 15,000,000.00
Factoring Co., Ltd.
Dalian Bingshan Group Huahuida Financial
Other payable 7,500,000.00 7,407,941.90
Leasing Co., Ltd.
Company under direct/indirect Control of
Other payable 2,413,706.04 3,273,305.50
Panasonic Co., Ltd
Bingshan Technology Service （Dalian） Co.,
Other payable 14,946.50 104,625.50
Ltd.
Other payable Sonyo Cold Chain (Dalian)Co., Ltd 618,018.00 91,779.71
Jiangsu Jingxue Insulation Environmental
Other payable 70,000.00
Engineering Co., Ltd
Other payable Dalian Jingxue Freezing Equipment Co., Ltd. 70,000.00
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Closing Opening
Item Related party
Balance Balance
Dalian Bingshan Group Huahuida Financial
Other payable 7,500,000.00
Leasing Co., Ltd.
Bingshan Technology Service （Dalian） Co.,
Contract liability 544,738.32 2,337,426.58
Ltd.
Contract liability Linde Hydrogen Fueltech (Dalian) Co., Ltd 2,117,926.65 2,138,974.27
Company under direct/indirect Control of
Contract liability 313,952.83
Panasonic Co., Ltd
Contract liability Sonyo Cold Chain (Dalian)Co. Ltd 35,605.27
Other current
Linde Hydrogen Fueltech (Dalian) Co., Ltd 275,330.46 319,616.84
liability
Other current Bingshan Technology Service （Dalian） Co.,
70,815.98 303,865.45
liability Ltd.
Other current Company under direct/indirect Control of
35,021.95
liability Panasonic Co., Ltd
Other current
Sonyo Cold Chain (Dalian)Co., Ltd 4,628.68
liability
Dalian Bingshan Group Huahuida Financial
Lease payable 9,242,020.45 656,980.83
Leasing Co., Ltd
Non-current
Dalian Bingshan Group Huahuida Financial
liability due within 4,988,748.38 25,140,961.04
Leasing Co., Ltd
1 year
Dalian Bingshan Group Huahuida Financial
Long-term payable 10,331,937.30
Leasing Co., Ltd
Short-term Dalian Bingshan Group Huayida Commercial
2,976,345.47
borrowing Factoring Co., Ltd.
iv. Related Party Commitment
None
v. Others
None
XIII. Share-Based Payment
None
XIV. Contingency & commitment
1. Commitment
None
2. Contingency
Up to June 30, 2024, guarantee obligations undertaken by the Company due to financial
leasing.
The Company sold refrigerating house equipment to Guizhou Pubu Cold Chain Food
109
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Investment Co., Ltd (“Pubu Cold Chain”) in the form of financial leasing. The Company as
a seller singed finance lease contract with Dalian Bingshan Group Huahuida Financial
Leasing Co., Ltd (hereinafter referred to as ‘Huahuida’) as both a buyer and a lessor and
Pubu Cold Chain as a lessee. The contract price is 25.705million Yuan. In case the lease
premium is delayed by the lessee, the Company needs to pay lease premium on behalf of the
lessee and be obliged to the buy back responsibility. Pubu Cold Chain issued an
unconditional, irrevocable and joint liability counter guarantee, and the Company is the
beneficiary. Guarantee scope covers the full liability because of the sales in the form of
finance lease. As at 31 December 2023, the balance of the guarantee obligation of the
financial lease is RMB 6.5958million Yuan.
The Company sold water chiller and heat pump to Shangdong Jiechuang Energy Technology
Co., Ltd (“Shandong Jiechuang”) in the form of financial lease. The Company as a seller
singed finance lease contract with Huahuida as both a buyer and a lessor and Shandong
Jiechuang as a lessee. The contract price is 6.998million Yuan. Shandong Jiechuang had
made 10% down payment, and remaining 6.2982million Yuan is underlined the leasing
contract amount. In case the lease premium is delayed by the lessee, the Company needs to
pay lease premium on behalf of the lessee and be obliged to the buy back responsibility.
Shandong Jiechuang issued an unconditional, irrevocable and joint liability counter
guarantee, and the Company is the beneficiary. Guarantee scope covers the full liability
because of the sales in the form of financial lease. As at 31 December 2023, the balance of
the guarantee obligation of the financial lease is RMB4.4262 million Yuan.
The Company sold refrigerating house equipment to Liuyang Zhongjie Technology
Investment Co., Ltd (“Liuyang Zhongjie”) in the form of financial lease. The Company as a
seller singed finance lease contract with Huahuida as both a buyer and a lessor and Liuyang
Zhongjie as a lessee. The contract price is 9.831million Yuan. In case the lease premium is
delayed by the lessee, the Company needs to pay lease premium on behalf of the lessee and
be obliged to the buy back responsibility. Liuyang Zhongjie issued an unconditional,
irrevocable and joint liability counter guarantee, and the Company is the beneficiary.
Guarantee scope covers the full liability because of the sales in the form of financial lease.
As at 31 December, 2023, the balance of the guarantee obligation of the financial lease is
RMB 5.3227million Yuan.
The Company sold refrigeration equipment, air conditioning and production line equipment
to Shanxi Yiming Food Co., Ltd (‘Shanxi Yiming’) in the form of financial lease. The
Company as a seller singed finance lease contract with Huahuida as both a buyer and a lessor
and Shanxi Yiming as a lessee. The contract price is 28.2311million Yuan. In case the lease
premium is delayed by the lessee, the Company needs to pay lease premium on behalf of the
110
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
lessee and be obliged to the buy back responsibility. Shareholders Shanxi Yiming and nature
person issued an unconditional, irrevocable and joint liability counter guarantee, and the
Company is the beneficiary. Guarantee scope covers the full liability because of the sales in
the form of financial lease. As at 31 December, 2023, the balance of the guarantee obligation
of the financial lease is RMB 23.1802million Yuan.
Dalian Bingshan-RYOSETSU Quick Freezing Equipment Co.,Ltd (‘Bingshan-
RYOSETSU’), the subsidiary of the Company sold refrigeration equipment to Jilin Fuyu
Agricultural Technology Co., Ltd (‘Jinlin Fuyu’) in the form of financial lease. Bingshan-
RYOSETSU as a seller singed finance lease contract with Huahuida as both a buyer and a
lessor and Jinlin Fuyu as a lessee. The contract price is 20.50million Yuan. In case the lease
premium is delayed by the lessee, Bingshan- RYOSETSU needs to pay lease premium on
behalf of the lessee and be obliged to the buy back responsibility. Shareholders Jinlin Fuyu
and nature person issued an unconditional, irrevocable and joint liability counter guarantee,
and Bingshan- RYOSETSU is the beneficiary. Guarantee scope covers the full liability
because of the sales in the form of financial lease. As at 31 December, 2023, the balance of
the guarantee obligation of the financial lease is RMB 18.8146million Yuan.
Until June, 30, 2024, the balance of all guarantee obligation of the financial lease is RMB
43.2458 million Yuan. There is no situation where the Company needs to undertake the
liability as the lessees’ default.
There are no other significant or contingent matters to be disclosed until June, 2024.
XV. Events after the Balance Sheet Date
The Company has no significant subsequent event after the balance sheet date.
XVI. Other Significant Events
1. Error correction and effect in previous period
No.
2. Debt Restructuring
No.
3. Asset exchange
(1) The exchange of non-monetary assets
No.
(2) The exchange of other assets
No.
111
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
4. Annuity Plan
No.
5. Operation termination
No.
6. Segment Information
The management of the group divided the business into 2 segments based on the geographic area:
Northeast China and Central China. The Northeast is the Company’s general headquarters and
the subsidiaries registered in Dalian. The Central includes Chengdu Bingshan Refrigeration
Engineering Co., Ltd, Wuhan New World Refrigeration Industrial Co., Ltd and its subsidiary,
Wuhan Lanning Energy Technology Co., Ltd. and Wuhan New World Air-conditioning Refrigeration
Engineering Co., Ltd.
(1) The basis and accounting policies of reporting segments
The internal organization structure, management requirements and internal report scheme are the
determination basis for the Company to set the operating segments. The segments are those
satisfied the following requirements.
1). The segment can generate revenue and incur expenses.
2). The management personnel can regularly evaluate the operation results of segments and
allocate resource, assess its performance.
3). The financial situation, operation results, cash flow and other accounting information of
segments can be acquired.
The group confirms the report segments based on the operating segments. The transfer price
among segments is set base on the market price. The assets and related expenses in common use
are allocated to different segments based on their proportion of revenue.
(2) The financial information of reporting segments
Amount unit ： Yuan
Items Northeast China Central China Offset Total
1 Operating income 2,613,240,964.51 141,557,447.65 -291,521,062.46 2,463,277,349.70
2 Cost 2,211,567,490.91 118,896,974.75 -272,559,658.92 2,057,904,806.74
Impairment loss on credit -12,075,577.73 -3,273,225.05 -1,057,418.11 -16,406,220.89
Impairment loss on assets 7,750,229.87 -573,479.69 -2,258,762.00 4,917,988.18
Depreciation and amortization 24,004,527.58 4,167,694.29 28,172,221.87
Investment income from associates
17,960,407.98 236,717.06 -978,426.58 17,218,698.46
and joint venture
112
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Items Northeast China Central China Offset Total
Operating profits(loss) 130,086,549.47 -1,841,062.81 -37,340,973.50 90,904,513.16
Income tax 17,391,530.91 -1,194,021.92 -4,545,826.40 11,651,682.59
Net profit(loss) 112,695,018.56 -647,040.89 -32,795,147.10 79,252,830.57
Total assets 6,263,302,975.74 469,380,019.82 1,055,947,015.45 7,788,630,011.01
Total liabilities 4,953,818,215.98 377,518,368.39 -699,137,998.64 4,632,198,585.73
(3) Others
None
7. Other important transactions and matters affect the investor's decision
The group hasn’t had other important transactions and matters affect the investor's decision in this
period.
XVII. Notes to the Main Items of the Financial Statements of Parent Company
1. Accounts receivable
(1) Bad debt provisions under accounting aging analysis method:
Aging Closing Balance Opening Balance
Within 1 year 476,166,210.47 457,075,717.70
1-2 years 134,074,263.69 124,339,052.45
2-3 years 72,249,248.71 58,073,083.27
Over 3 years 101,693,468.65 109,679,441.52
3-4 years 37,453,099.65 49,782,646.14
4-5 years 6,443,804.68 2,186,288.76
Over 5 years 57,796,564.32 57,710,506.62
Total 784,183,191.52 749,167,294.94
(2) Accounts receivable category
Closing Balance
Item Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision on group 784,183,191.52 100.00% 140,596,092.11 17.93 643,587,099.41
(1) Accounting age as
characters 520,843,285.13 66.42% 140,596,092.11 26.99 380,247,193.02
(2) Related party within
consolidation scope 263,339,906.39 33.58% 263,339,906.39
Total 784,183,191.52 100.00% 140,596,092.11 17.93 643,587,099.41
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
(Continued)
Opening Balance
Item Booking balance Provision Booking
Amount % Amount % balance
Bad debt provision
749,167,294.94 100.00 136,234,112.03 18.18 612,933,182.91
on group
(1) Accounting age
as characters 492,240,628.86 65.71 136,234,112.03 27.68 356,006,516.83
(2) Related party
within
consolidation 256,926,666.08 34.29 - - 256,926,666.08
scope
Total 749,167,294.94 100.00 136,234,112.03 18.18 612,933,182.91
(3) Bad debt provision
Change during the year
Closing
Category Opening balance
Accrued Collected/ Balance
Written-off Other
reversed
Bad debt
136,234,112.03 4,361,980.08 15,827.00 31,654.00 140,596,092.11
provision
Total 136,234,112.03 4,361,980.08 15,827.00 31,654.00 140,596,092.11
(4) Based on closing balance ranking, sum of the top five significant receivable and contract
asset are 178,761,262.44Yuan, representing19.45% of total receivables and contract asset at the
year end. 53,489,231.85Yuan bad debt provision is provided respectively.
2. Other Receivables
Item Closing Balance Opening Balance
Interest receivable - -
Dividend receivable 9,919,648.18 110,000,000.00
Other receivable 27,627,662.30 28,883,665.74
Total 37,547,310.48 138,883,665.74
2.1 Dividend receivable
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Item Closing Balance Opening Balance
Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd 636,409.95
Jiangsu Jingxue Insulation Environmental Engineering Co., Ltd 3,220,344.00
Dalian Bingshan Engineering & Trading Co., Ltd 3,202,894.23
Dalian Universe Thermal Technology Co., Ltd. 2,860,000.00
Sonyo Compressor (Dalian)Co., Ltd. 110,000,000.00
Total 9,919,648.18 110,000,000.00
2.2 Other receivable
(1) The category of other receivables
Items Closing Balance Opening Balance
Receivables and payables 20,517,925.84 20,260,866.63
Deposits 6,406,578.63 8,478,407.11
Petty cash 1,091,501.16 580,451.46
Total 28,016,005.63 29,319,725.20
(2) Other receivable listed by account aging
Aging Closing Balance Opening Balance
Within 1 year 2,550,383.89 3,049,940.86
1-2 years 1,676,604.63 3,316,384.23
2-3 years 2,095,617.00 1,315,000.00
Over 3 years 21,693,400.11 21,638,400.11
3-4 years 105,000.00 20,210,000.00
4-5 years 20,180,000.00 229,835.11
Over 5 years 1,408,400.11 1,198,565.00
Total 28,016,005.63 29,319,725.20
(3) Bad debt provision details
Change during the year
Opening Closing
Category Collected/
balance Accrued Written-off Others Balance
reversed
Bad debt
436,059.46 - 47,716.13 388,343.33
provision
Total 436,059.46 - 47,716.13 388,343.33
(5) Other receivables from the top 5 debtors
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
% of Closing
Closing
Name Category Aging the total Balance of
Balance
OR Provision
Top 1 Other deposit 1,100,000.00 Over5 years, 3.93% 40,260.00
Top 2 Bid deposit 800,000.00 2-3 years 2.86% 29,280.00
Top 3 Bid deposit 800,000.00 1-2 years 2.86% 29,280.00
Top 4 Bid deposit 300,000.00 2-3 years 1.07% 10,980.00
Top 5 Current funds 250,000.00 1-2 years 0.89% 9,150.00
Total — 3,250,000.00 — 11.61% 118,950.00
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
3. Long-term equity investments
(1) Category of long-term equity investments
Closing Balance Opening Balance
Item
Closing Balance Provision Book Value Opening Balance Provision Book Value
Investment of subsidiaries 2,432,830,861.29 2,432,830,861.29 2,416,830,861.29 - 2,416,830,861.29
Investment of affiliates
526,673,332.98 526,673,332.98 513,550,283.58 - 513,550,283.58
and JV
Total 2,959,504,194.27 2,959,504,194.27 2,930,381,144.87 - 2,930,381,144.87
(2) Investments of subsidiaries
Provision for Increase/Decrease
Provision for
Beginning impairment
Investee Provision for Ending balance impairment
balance at beginning Increased Decreased Others
impairment at year end
of year
Dalian Bingshan Group Engineering
293,749,675.77 293,749,675.77
Co., Ltd
Dalian Bingshan Group Sales Co.,
20,722,428.15 20,722,428.15
Ltd
Dalian Bingshan Air-Conditioning
53,272,185.00 16,000,000.00 69,272,185.00
Equipment Co., Ltd
Dalian Bingshan Guardian
50,638,361.52 50,638,361.52
Automation Co., Ltd
Dalian Bingshan-RYOSETSU Quick
59,356,051.19 59,356,051.19
Freezing Equipment Co., Ltd
Dalian Universe Thermal Technology
48,287,589.78 48,287,589.78
Co., Ltd
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Provision for Increase/Decrease
Provision for
Beginning impairment
Investee Provision for Ending balance impairment
balance at beginning Increased Decreased Others
impairment at year end
of year
Wuhan New World Refrigeration
184,674,910.81 184,674,910.81
Industrial Co., Ltd
Dalian Bingshan Engineering &
71,537,064.86 71,537,064.86
Trading Co., Ltd
Sonyo Compressor (Dalian)Co., Ltd 1,380,455,603.23 1,380,455,603.23
Sonyo Refrigeration System (Dalian)
108,851,490.98 108,851,490.98
Co., Ltd
Sonyo Refrigeration (Dalian) Co., Ltd 145,285,500.00 145,285,500.00
Total 2,416,830,861.29 16,000,000.00 2,432,830,861.29
(3) Joint ventures& affiliated companies
Increase/Decrease
Gains and Provision
Provision for Adjustment
Beginning losses Provision for
Investee impairment of other Changes of Cash bonus or Ending balance
balance Increased Decreased recognized for Others impairment
at beginning comprehensi other equity profits announced
under the impairment at year end
of year ve income
equity method
1. Affiliated company
Dalian Honjo
8,160,024.36 13,068.28 8,173,092.64
Chemical Co., Ltd
Keinin-Grand Ocean
Thermal Technology 57,579,975.00 -1,810,055.67 55,769,919.33
(Dalian) Co., Ltd
Dalian Fuji Bingshan
Vending Machine Co., 67,610,418.09 1,246,957.50 68,857,375.59
Ltd
118
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Increase/Decrease
Gains and Provision
Provision for Adjustment
Beginning losses Provision for
Investee impairment of other Changes of Cash bonus or Ending balance
balance Increased Decreased recognized for Others impairment
at beginning comprehensi other equity profits announced
under the impairment at year end
of year ve income
equity method
MHI Bingshan
Refrigeration (Dalian) 16,543,655.54 86,728.24 16,630,383.78
Co., Ltd.
Dalian Fuji Bingshan
Vending Machine
Sales Co., Ltd
Jiangsu Jingxue
Insulation Technology 144,354,903.91 *.** 3,220,344.00 *.**
Co., Ltd
Bingshan Metal
Technical Service 173,250,850.13 14,709,358.00 187,960,208.13
（Dalian） Co., Ltd.
Dalian Bingshan
Group Huahuida
46,050,456.55 *.** 636,409.95 *.**
Financial Leasing
Co., Ltd
Total 513,550,283.58 16,979,803.35 3,856,753.95 526,673,332.98
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
4. Operating revenue and cost
2024.01-06 2023.01-06
Item
Revenue Cost Revenue Cost
Revenue from main
385,581,466.34 327,057,614.66 533,710,281.94 442,877,817.72
operation
Revenue from other
19,129,432.27 12,159,687.41 27,796,909.63 19,695,636.49
operation
Total 404,710,898.61 339,217,302.07 561,507,191.57 462,573,454.21
5. Investment income
Items 2024.01-06 2023.01-06
Long-term equity investment gain under cost method 6,062,894.23 24,063,498.94
Long-term equity investment gain under equity method 16,979,803.35 -183,975.05
Gain from holding of other non-current financial assets 4,364,003.20 5,782,304.24
Discounting fees for bank acceptance note
Gain from disposing long-term equity investment
Gain from disposal of other non-current financial assets
Gain on debt restructuring - -
Total 27,406,700.78 29,661,828.13
6. Others
None
XVIII. Approval of Financial Statements
The parent and consolidated financial statements of the Company were approved by the Board
of Directors of the Company on August 14, 2024.
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Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
XIX. Supplementary Information to the Financial Statements
1. Return on equity and earnings per share
Earnings per share
Weighted
(EPS)
Profit of report period average return
Basic Diluted
on net assets
EPS EPS
Net profit attributable to shareholders of
2.55% 0.09 0.09
parent company
Net profit after deducting non-recurring gains
and losses attributable to shareholders of 2.19% 0.08 0.08
parent company
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd
August 14, 2024
121
