Stock Code: 000530; 200530 Short Form of the Stock: Daleng Gufen; Daleng B; No: 2017-036
Dalian Refrigeration Co., Ltd.
2017 Semiannual Report Summary
§1 Important Notes
This summary is extracted from the original of the semiannual 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 charge of securities affairs||
|Name|Song Wenbao|||Du Yu|
|Contact address|DALENG GUFEN Securities﹠LegalAffairs No.106, Liaohe East Road,Dalian Economic and TechnologicalDevelopment Zone||||
|||||DALENG GUFEN Securities﹠Legal AffairsNo.106,|
|||||Liaohe East Road, Dalian Economic and Technological|
|||||Development Zone|
|Telephone|0411-87968130|||0411-87968822|
|Fax|0411-87968125|||0411-87968125|
|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 compared with|
|item|2017.01-06|2016.01-06|previous period|
|Operating revenue|1,002,378,717.50|830,873,999.65|20.64%|
|Net profit attributable to shareholders of listed companies|98,260,163.09|70,632,718.91|39.11%|
|Net profit belonging to the shareholders of listed companies||||
||69,960,863.49|65,055,890.10|7.54%|
|after the deduction of non-recurring profit and loss||||
|Net cash flow from operating activities|-148,577,541.90|-51,268,538.89|-189.80%|
|Basic earning per share|0.115|0.089|29.21%|
|Diluted earnings per share|0.115|0.089|29.21%|
|Weighted average return on net asset yield|2.95%|2.64%|Increase 0.31 percentage points|
||||Increase/decrease compared with|
||2017.6.30|2016.12.31||
||||2016.12.31|
|Total assets|5,372,939,781.32|5,095,986,440.32|5.43%|
|Owner's equity attributable to shareholders of listed companies|3,309,730,421.64|3,301,087,748.86|0.26%|

2.2 Statement of shares held by the top ten common shareholders
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|Total number of shareholders in the reporting period||41,442|||||
|Shareholding of top ten shareholders|||||||
||||||Number of|Number of pledged|
|Name|Nature||Proportion|Total number|shares with sale|shares or shares|
||||||restriction|frozen|
|Dalian Bingshan Group Co., Ltd.|Domestic non-state-owned legal person||19.96%|170,916,934|0|0|
|Sanyo Electric Co., Ltd.|Overseas legal person||8.58%|73,503,150|0|0|
|Zheshang Juchao industry growhybrid securities investment fund|Others||2.56%|21,896,286|0|0|
|Zheshang Juchao New thinkinghybrid securities investment fund|Others||1.58%|13,503,638|0|0|
|National Social Security Funds 104Portfolio|Others||1.31%|11,199,297|0|0|
|Industrial Securities Golden KylinNo. 2 Collective Asset ManagementPlan|Others||1.07%|9,163,753|0|0|
|National Social Security Funds 503Portfolio|Others||0.96%|8,210,314|0|0|
|Caitong Capital Kunze No. 2Securities vInestment Fund|Others||0.96%|8,210,313|0|0|
|Shenzhen B & D Capital FengnianJinjia No. 1 Fund|Others||0.96%|8,210,313|0|0|
|Lin Zhenming|Overseas natural person||0.73%|6,230,000|0|0|
||||Dalian Bingshan Group Co., Ltd. had the association relationshipwith Sanyo Electric Co., Ltd. among the above shareholders. SanyoElectric Co., Ltd. holds 26.6% of Dalian Bingshan Group Co., Ltd.'sequity.||||
|Notes to the associated relationship and uniform actions of the above|||||||
|shareholders|||||||

2.3 Statement of shares held by the top ten preferred shareholders
□ Yes√ No
2.4 Variation in controlling shareholders or actual controllers
Variation in controlling shareholders in the report period
□ Applicable√ Not applicable
There were no changes in the controlling shareholder in the reporting period.
Variation in actual controllers in the report period
□ Applicable√ Not applicable
§3 Discussion and analysis of the management
In the first half of 2017, the Company focused on "activating, integrating and promoting", maintained strategic strength, activated endogenous power, integrated system resources, brought together competencies, promoted operational quality and efficiency, and strived to achieve key business targets. In the first half of 2017, the Company achieved operating income of 1,002.38
million Yuan, with a year-on-year growth of20.64%; achieved a total profit of 104.9 million Yuan,
with a year-on-year growth of36.95%.
During the reporting period, the Company succeeded in completing the overall removal and reconstruction, the intelligent, environmental, efficient and safe new plant was put into use. On May 7, 2017, the Company's new plant– Bingshan Double D Port Industrial Park officially opened. On June 26, 2017, Premier Li Keqiang went to the Company's new factory for field research and gave positive evaluation.
During the reporting period, the Company's subsidiary Wuxin Refrigeration basically completed the nationwide regional distribution for the demonstration of its new products, the income of new products increased by more than50% on a year-on-year basis, the strategic transformation results are obvious. Based on the successful launch of China's first set of natural gas pipeline pressure energy for generating electricity and cold energy recovery system, multiple application projects in many places were proceeding orderly by technology marketing and government marketing.
During the reporting period, the Company's subsidiary Bingshan Engineering Company continued to deepen the market segmentation, and the orders in cold chain logistics, fishing industry, beer dairy products, fine chemicals and other fields achieved great growth. Signed natural gas distributed energy sources electromechanical general contract with Jiangsu Runchang, the total contract amount was about 160 million Yuan. And signed the first high-end indoor snow field project with Guangzhou Wanda, snow and ice business achieved a new breakthrough.
During the reporting period, theCompany’s subsidiary Bingshan Service Company flexibly used Bingshan internet of things cloud platform, actively expanded new service business fields, and signed the first machine room hosting contract with Tianjin Ershang which initiated the machine room hosting of large-scale ammonia system in the refrigeration industry, the maintenance income had a year-on-year growth of more than50%.
During the reporting period, the horizontal scroll compressor for rail transit air conditioning newly developed by the Company's related Company Panasonic Compressor has been well expanded in subway, light rail and other fields. It also achieved new results in the expansion of overseas market, the income in European market increased by about50% on a year-on-year basis. Impact by thestate’s policies of reorganizing the electric bus market and cutting down the subsidies, the sales volume of horizontal scroll compressor for electric bus sharply reduced, coupled with the rapid rise in the price of bulk raw materials, the net profit greatly declined on a year-on-year basis. During the reporting period, the Company's related Company, Panasonic Cold Chain, conformed to the new trend of consumption and actively expanded and subdivided the blue ocean market. The convenience store business, new developed SF and Beijing 7-11 and other customers, and the income achieved a year-on-year growth of28%. Biomedical care, medical ultra-low temperature refrigerator, blood refrigerator, incubator and other new products in the hospitals, blood stations, and scientific research and other fields have achieved application breakthroughs, and the income achieved a year-on-year growth of more than50%.
During the reporting period, the Company's related Company Fushi Bingshan fully realized the intelligent upgrading of products, and the product diversification has taken a solid step. In addition
to beverage machine, the large food machine, coffee machine, liquor machine, box lunch machine and other new models have completed development and began mass production. The world-leading intelligent manufacturing new plant for vending machine has been constructed and put into operation; the production capacity has been doubled and can better respond to the rapid growth of unmanned vending machine.
During the reporting period, based on the overall positioning of cold and hot industrial investment platform, the Company increased the capital operation, and implemented the first batch of acquisition to high-quality assets of controlling shareholders. The acquisition has been completed by the end of April 2017, and the Company currently holds100% stake in BSET and49% stake in Bingshan Metal Technology.
During the reporting period, the Company has rented out both land and housing of old factory to Bingshan Wisdom Park Company for its construction and development. Bingshan Wisdom Park shall center on the intelligent science and technology, focus on breaking through the internet of things, big data applications, wisdom recuperation, wisdom education and other fields, strive to build Bingshan industrial ecosphere, and create new engine for business growth.
§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√A Inapplicable
4.2 Correction of major accounting mistakes in the reporting period, which should be retroactively restated
□Applicable√A Inapplicable
4.3 Explanation on change of consolidation scope in the report period compared with the latest annual report
√Applicable□Inapplicable
This year, there are 2 more entities were included in the scope of consolidation, Dalian Bingshan Engineering& Trading Co., Ltd.and Chengdu Bingshan Refrigeration Engineering Co., Ltd.
On February 15, 2017, thecompany’ board of directors decided to accept the transfer of76% equity stake of Dalian Bingshan Engineering and Trading Co., Ltd., thecompany’s former associated company, after the acceptance of this transfer, Dalian Bingshan Engineering and Trading Co.,Ltd\. became a wholly-owned subsidiary of the company. As of June 30, 2017, the above equity transaction has been completed. Therefore, the company held100% equity stake of Dalian Bingshan Engineering and Trading Co., Ltd. when establishing the consolidated statements of current period. As Dalian Bingshan Engineering and Trading Co., Ltd. is also a subsidiary of the parent company Dalian Bingshan Group Co., Ltd., the company has merged the subsidiary Dalian Bingshan Engineering and Trading Co., Ltd. by the same control in current period, when establishing the consolidated balance sheet, adjusted the beginning data of relevant projects of consolidated balance sheet, and also adjusted the comparable data of the corresponding period when establishing the income statements and cash flow statements.
The Board of Directors of thecompany’s subsidiary Dalian Bingshan Group Engineering Co., Ltd. decided Dalian Bingshan Group Engineering Co., Ltd. and Chengdu New World Refrigeration Equipment Engineering Co., Ltd. jointly invest and build a joint venture Chengdu Bingshan Refrigeration Engineering Co., Ltd., Dalian Bingshan Group Engineering Co., Ltd. invested RMB 5.1 million in cash, holding51% stake. As of June 30, 2017, Chengdu Bingshan Refrigeration Engineering Co., Ltd. has officially started operating.
4.4 Explanation of the Board of Directors to the “Non-standardized Opinion”
□Applicable√Inapplicable
Board of Directors of Dalian Refrigeration Co., Ltd.
August 26, 2017