Stock Code: 000530; 200530 Short Form of the Stock: Daleng Gufen; Daleng B; No: 2015-017
Dalian Refrigeration Co., Ltd.
2014 Annual Report Summary
§1 Important Notes
This summary is extracted from the original of the annual report. For more information, the investors are recommended to refer to the original.
Company Profile
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|Short form of the stock||DALENG GUFEN; DALENG-B||
|Stock code||000530; 200530||
|Listed stock exchange||Shenzhen Stock Exchange||
|Contact persons|Secretary of the Board of Directors||Authorized representative in chargeof securities affairs|
|Name|Song Wenbao||Song Wenbao (proxy)|
|Contact address|DALENG GUFEN Securities andLegal Affairs Department, No. 888,Xinan Road, Shahekou District, Dalian||DALENG GUFEN Securities andLegal Affairs Department, No. 888,Xinan Road, Shahekou District, Dalian|
|Telephone|0411-86538130||0411-86538130|
|Fax|0411-86654530||0411-86654530|
|E-mail|000530@bingshan.com||000530@bingshan.com|

§2 Summary of Accounting Data and Financial Indexes
2.1 Main accounting data (Unit: RMB Yuan)
Did the Company retroactively adjust or restate the accounting data of previous years due to
change in the accounting policy and correction of accounting mistakes?
√ Yes□ No
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|-|-|-|-|-|-|
|||||Increase/decrease||
|||2013||compared with||
|item|2014||||2012|
|||||previous year (%)||
|||Before adjustment|After adjustment|After adjustment||
|Operating revenue|1,425,715,596.96|1,535,706,911.25|1,535,706,911.25|-7.16%|1,521,979,266.15|
|Net profit attributable to shareholders of listed|115,439,722.39|153,006,057.13|153,006,057.13|-24.55%|117,142,066.15|
|companies||||||
|Net profit belonging to the shareholders of|105,435,245.61|121,207,821.52|121,207,821.52|-13.01%|123,788,117.10|
|listed companies after the deduction of||||||
|non-recurring profit and loss||||||
|Net cash flow from operating activities|28,495,772.47|7,630,456.44|7,630,456.44|273.45%|-66,860,885.98|
|Basic earning per share|0.33|0.44|0.44|-25.00%|0.33|
|Diluted earnings per share|0.33|0.44|0.44|-25.00%|0.33|
||5.98%|8.27%|8.27%|Decrease 2.29percentage points|6.63%|
|Weighted average return on net asset yield||||||

|||||||
|-|-|-|-|-|-|
|||||Increase/decrease||
|||At the end of 2013||compared with||
||At the end of 2014||||At the end of 2012|
|||||previous year（％）||
|||Before adjustment|After adjustment|After adjustment||
|Total assets|3,053,930,248.25|2,967,390,234.89|2,967,390,234.89|2.92%|2,937,190,656.69|
|Owner's equity attributable to shareholders of|1,967,027,256.13|1,907,018,190.46|1,907,018,190.46|3.15%|1,808,800,737.71|
|listed companies||||||

2.2 Statement of shares held by the top ten shareholders
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|||||Total number of shareholders as of the 5th trading day|||||
|Total number of shareholders in the reporting period||38,396||||||33,200|
|||||before disclosure of the annual report|||||
|Shareholding of top ten shareholders|||||||||
|||||||||Number of|
||||||||Number of||
|||||||Total||pledged shares|
|Name|Nature||||Proportion||shares with||
|||||||number||or shares|
||||||||sale restriction||
|||||||||frozen|
|Dalian Bingshan Group Co., Ltd.|Domestic non-state-owned legal person||||21.96%|76,855,683|19,213,921|0|
|Sanyo Electric Co., Ltd.|Overseas legal person||||10.00%|35,001,500|0|0|
|Tibet Aier Medical Investment Co., Ltd.|Domestic non-state-owned legal person||||1.41%|4,951,962|0|0|
|BOCI SECURITIES LIMITED|Overseas legal person||||0.84%|2,932,654|0|0|
|Lion flexible configuration hybrid securitiesinvestment fund|Others||||0.65%|2,265,548|0|0|
|Sun Huiming|Domestic natural person||||0.56%|1,959,911|0|0|
|Jiang Youchang|Domestic natural person||||0.55%|1,919,575|0|0|
|Jin Mingzhu|Domestic natural person||||0.50%|1,718,307|0|0|
|Lin Zhenming|Overseas natural person||||0.47%|1,640,000|0|0|
|Dalian City Industrial Investment Co., Ltd.|Domestic non-state-owned legal person||||0.46%|1,622,250|0|0|
||||Dalian Bingshan Group Co., Ltd. had the association relationship with SanyoElectric Co., Ltd. among the above shareholders. Sanyo Electric Co., Ltd. holds30% of Dalian Bingshan Group Co., Ltd.'s equity.||||||
|Notes to the associated relationship and uniform actions of the|||||||||
|above shareholders|||||||||

2.3 Particulars about controlling shareholders and actual controller of the Company
100% 100%
25% 5% 15% 15% 10% 30% Dalian Bingshan Group Co., Ltd.
21.96%
Dalian Refrigeration Co., Ltd.
§3 Discussion and analysis of the management
1. Business review for 2014
The Company, as the largest industrial refrigeration equipment production enterprise in China, is
committed to developing the business of industrial refrigeration, food freezing and cold storage,
central and commercial air-conditioning, refrigeration components and engineering service, have
covered the key areas of the refrigeration industrial chain and forged the most complete cold and
hot industrial chain in China.
In face of lots of unfavorable factors in 2014, the Company focused on operation principle as
“Leading Innovation, Creating Value”, took the initiative actively, adhered to a down-to-earth
working style, accelerated the optimization and upgrading of industrial structure, increased the
intensity of technical innovation, laid a high emphasis on resources integration inside and business model innovation, leaned management, perfected salary system, implemented equity incentive,
strengthened the management of cash flow, and avoided operating risks. Centered the employees
internal, centered customers external, created value for customers and shareholders, and enhanced well-being for the employees.
In 2014, the Company made the sales income of 1,425.72 million Yuan, accounting for84.36% of 1,690 million Yuan of theCompany’s annual business indicator for 2014, with a year-on-year
decrease of7.16%. The main reason for not completing the annual plan of the Company was as
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Sanyo Electric Co., Ltd.
follow. Affected by the scant demand for domestic steel, petrochemical, cement, coal and other
industries, the orders from industrial refrigeration and general petrochemical equipment decreased significantly, and industry competition caused the price of contract which entry into force
significantly lower. The total amount of profit decreased significantly with a year-on-year basis,
and the main reason was the warehousing land use right of the Company was collected and stored in 2013 which generated income of 41.76 million yuan.
In reporting period, in the face of serious market situation from industrial refrigeration and
petrochemical equipment, the Company concentrated on seizing the cold-chain logistics,
perfecting the integrated solutions for cold-chain logistics, and the first CO frozen and
2
refrigerated project order has been signed successfully with almost one hundred million Yuan,
which filled the gaps in the market of CO of the Company.
2
In reporting period, the mechanism of the Company was simplified, and operating efficiency was improved through adjusting institutional framework and promoting measures of new operation mechanism. The group strength was coagulated due to the first phase of stock option incentive, and strived to create a community interests of the enterprise, shareholders and employees.
In reporting period, the Company strengthened the management of cash flow. Through checking
warehouse and inventory, revitalized the funds, and reduced inventory occupation of funds. With
the intensity of clearing up defaults, avoided the operating risk.
In reporting period, the Company actively promoted the PDM and ERP information construction, construction of the new performance lab work orderly. Aimed at ammonia refrigeration project safety improvement, the Company researched and developed modular equipment of cold storage for the transformation of ammonia. Researched and developed independently light efficient oil screw refrigeration compressor, which held the domestic leading position. The self-developed “Multi-function ice tunnel and loop cooling system” has passed the appraisal in provincial level, which was free out of the hardware constraints of wind tunnel test facilities, and satisfied technology needs ofR&D in aspect of domestic aviation and space industry.
In reporting period, the Company integrated resources with remarkable results. The Company established a unified platform for the procurement of bulk materials, and reduced the cost of procurement. The Company actively integrated the sales and market resources of parent company and main subsidiary Wuhan New World Refrigeration. The market influence, competitiveness and service ability of the Company would be further promoted via unity marketing. The Company purchased the foreign equity of Dalian Bingshan Metal Processing Co., Ltd., made it become a wholly owned subsidiary of the Company, expanded its scope of business, and enhanced its processing ability.
In reporting period, the Company actively created business model, funded the controllingsubsidiary–Bingshan Technology Service (Dalian) Co., Ltd. in order to offer specialized integrated service for the clients. After-sale service, maintenance service, energy-saving& safety service and accessories service were separated from current business for operation independently, which was conductive to improve service system of the Company and met the needs of market competition in the future.
In reporting period, subsidiary Wuhan New World Refrigeration innovated new production organize way, formulated four assembly lines of compressor assembly, heat exchanger, small container and small unit assembly.
In reporting period, subsidiary Bingshan Guardian developed SCADA remote monitoring system
based on the Internet of Things, and applied to project of Chongqing Mingpinfu, providing reliable refrigeration equipment field operation data rapidly for the client.
In reporting period, associated company Dalian Sanyo Compressor renamed Panasonic Compressor (Dalian) Co., Ltd. With maintaining the traditional customers for improving the market shares, seized the market of electric motor coach compressors for air-conditioner, and developed industry leader as BYD and Auria. The scroll compressor overseas sales broke 400,000. Research& development of the new compressor cylinder diameter and new specs DC inverter compressor were pushed forward.
In reporting period, associated company Dalian Sanyo Cold-Chain renamed Panasonic Cold-Chain (Dalian) Co., Ltd. With consolidating the market share of supermarket and business kitchen, actively promoted the integrated solutions for technology of environmental protection, and earned new clients in aspect of drinks business and low-temperature logistics. Researched and developed new products as the picked-up cabinet of refrigerated fress delivery, mini low-temperature logistics box, cube-shaped glass showcase and high-energy efficiency frequency conversion commercial freezer which satisfied market requirements and led the market fashion.
In reporting period, associated company Dalian Sanyo Refrigeration renamed Panasonic Refrigeration (Dalian) Co., Ltd. Surrounded by hot topics of energy-saving& emission reduction, waste heat utilization and cleaner energy technologies, energetically marketing two pillar products as central and commercial air-conditioning. In Kempinski Hotel, located in Yanqihu Beijing, successful implemented the combined cooling heating and power, created a distributed energy sources typical project. Completed the lab construction of 80 HP enthalpy potential, and met the needs of development and testing for large horsepower new products.
In reporting period, associated company Dalian Fuji Bingshan, on a basis of guarantee stable development in operator markets, aggressively expanded into beverage producer market; newly developed many new clients as Nong Fu Spring and New Hope Group besides market of Coca-Cola and Master Kong. And the sales broke 15,000 records with y-o-y growth dramatically in sales revenue. Centre on variety payment ways of the vending machine, improved product seriation, the new researched CO refrigerantcold&hot drinks automatic vending machine passed 2
theCoca-Cola’s global certification.
In reporting period, associated company Keinin-Grand Ocean completed the rectifying reform for production No.1 line and No. 2 line, products RTY improved markedly, and daily output boost into over 5,000. Foshan branch began producing many kinds of condenser and evaporator.
In reporting period, associated company MHI Bingshan was set to open on December 17th, and the first centrifugal refrigerator officially off-line.
2. Operation plan for 2015
Sales revenue: achieved 1,650 million Yuan, increase approximately16% over 1,425.72 million Yuan, the revenue gained in 2014.
Total profit: achieved 150 million Yuan, increase approximately21% over 123.99 million Yuan, the total profit realized in 2014.
In 2015, centre on operation theme of “clients& employee oriented, origin regression and wit operation”, the Company will operate legally and orderly; transform the mode and adjust the structure, create service industrialization; cultivate new growth points, and enhance the core competitiveness; integrate resources, and increase the intensity of technical innovation; expand the development of the business through capital operation; continue to strengthen the management of
cash flow, and enhance the quality of the Company's operations; increase the assessment efforts, and try best to complete the index of revenue and profit.
More attentions on the follow in 2015:
(1) To operate legally and orderly, and avoid business risks. Resolutely implement the new law on safety in production, clear security responsibilities, and strengthen management on prevention. In strict accordance with the articles of association of the Company and the operating rules, and improve the corporate governance structure. Strengthen internal management, and avoid financial risk, operational risk and legal risk.
(2)To speed up the adjustment of industrial structure, and innovate business model. Try to promote the transformation and upgrading of products, and stride the traditional industry towards the
middle and high-end. Make good use of theCompany’s relocation opportunity, and construct
informational, intelligent factory. Vigorously develop the productive service industry, and
gradually strengthen the supporting role of service industry.
(3) To cultivate new growth points, and enhance the core competitiveness. Make good use of the Internet technology, and carry out energy management business. Build the core competitiveness of the Company within integrated solutions for refrigeration complete sets, central air conditioning equipment complete sets and complete sets of engineering equipment. Open up new business areas.
(4) To integrate resources, and increase the intensity of technical innovation. With the product plan as a guide, speed up the pace of technological innovation and product innovation. Integrate the
human resources,R&D resources of the Company and Wuhan New World Refrigeration, create a
technology platform, and concentrate on the development of new products. Strengthen the
protection of intellectual property rights. Establish the training, introduction and incentive
mechanism for technical personnel, and increaseR&D investment. With safety, energy saving and environmental protection as the goal, strengthen technological innovation driven.
(5) To expand the development of the business through capital operation. Actively dock national
strategy, optimize the spatial pattern of industrial development, and improve the industrial layout.
Attract investment and invest externally at the same time, and promote the advantages of industry going out.
(6) To continue to strengthen the management of cash flow, and enhance the quality of the
Company's operations. Strengthen the management of cash flow, strengthen the management of
accounts receivable and inventory, and improve the operating capacity of the enterprise. Increase
the assessment efforts of enterprises growth index, increase the assessment weight of rate of return on net assets and sales profit ratio, and continuously improve the Company's profitability,
development ability, and operation ability.
The above mentioned operation plan do not represent the earnings forecast for year of 2015 on behalf of the Company. Whether achieve the goal or not depends on many reasons such as market condition changes and operation team working, there remains uncertainty and investors are advised to pay special attention.
§4 Matters related to financial report
4.1 Change in accounting policies, accounting estimates and accounting methods compared with the financial statements of the previous year
√Applicable□ Inapplicable
In accordance with Accounting Standards for EnterprisesNo.2—Long-term equity investment, as
for the equity investment which the Company had no control, common control, significant
influence and whose fair value could not be able to measured surely, the Company calculated such investment as financial assets available for sale measured by costs instead of long-term equity
investment calculation, and adjusted in way of retrospective application. Changes of the
accounting policy only changed the amount in items of financial assets available for sale and
long-term equity investment; there is no any impact on total assets, total liabilities, net assets and
net profit for the year of 2013. The details see the Notice of Changes in Accounting Policies
( No:2014-025).
4.2 Correction of major accounting mistakes in the reporting period, which should be retroactively restated
□Applicable√Inapplicable
4.3 Explanation on change of consolidation scope in the report period compared with the latest annual report
□Applicable√Inapplicable
4.4 Explanation of the Board of Directors to the “Non-standardized Opinion”
□Applicable√Inapplicable
Board of Directors of Dalian Refrigeration Co., Ltd.
April 22, 2015