Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Dalian Refrigeration Co., Ltd.
2014 Semiannual Report
August, 2014
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Section 1 Important Notice, Table of Contents, and Definitions The directors and the Board of Directors, the supervisors and the
Supervisory Board, and Senior staff members of Dalian Refrigeration Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are not any important omissions, fictitious statements or serious misleading carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completeness of the whole contents.
All the directors have attended this Board meeting of the Company. The company plans to distribute no cash dividends, no bonus shares and convert no reserve fund into capital stock.
Chairman of the Board of Directors of the Company Mr. Ji Zhijian, Financial Majordomo Mrs. Rong Yan, and the head of Accounting Department Mrs. Mao Chunhua hereby confirm that the financial report of the semi-annual report is true and complete.
This report is written respectively in Chinese and in English. In the event of any discrepancy between the two above-mentioned versions, the Chinese version shall prevail.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report CONTENTS
Section 1 Important Notice, Table of Contents, and Definitions ........................................... 2 Section 2 About the Company.............................................................................................. 5 Section 3 Summary of Main Accounting Data and Financial Indicators ............................... 6 Section 4 Board of Directors' Report.................................................................................... 8 Section 5 Important Issues ................................................................................................. 14 Section 6 Change in Share Capital and Shareholders' Information ..................................... 17 Section 7 Information on theCompany’s Directors, Supervisors, Senior Management ...... 18 Section 8 Financial Report ................................................................................................. 19 Section 9 Contents of Reference Documents...................................................................... 68
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Definitions
||||
|-|-|-|
|Defined item|Stands for|Meaning|
|Reporting period|Stands for|From Jan. 1, 2014 to Jun. 30, 2014|
|The Company, this Company|Stands for|Dalian Refrigeration Co., Ltd.|
|||Wuhan New World Refrigeration Industries Co., Ltd., one of the|
|Wuxin Refrigeration|Stands for|controlled subsidiaries of this Company, where the Company holds 51%|
|||of its shares.|
|||Dalian Sanyo Compressor Co., Ltd., one of the mutual shareholding|
|Dalian Sanyo Compressor|Stands for|companies of the Company, where the Company holds 40% of its|
|||shares.|
|||Dalian Sanyo Cold Chain Co., Ltd., one of the mutual shareholding|
|Dalian Sanyo Cold Chain|Stands for|companies of the Company, where the Company holds 40% of its|
|||shares, that was renamed as Panasonic Cold Chain (Dalian) Co., Ltd.|
|||Dalian Sanyo Refrigeration Co., Ltd., one of the mutual shareholding|
|Dalian Sanyo Refrigeration|Stands for|companies of the Company, where the Company holds 40% of its|
|||shares.|
|||Dalian Fuji-Bingshan Vending Machine Co., Ltd., one of the mutual|
|Dalian Fuji-Bingshan|Stands for|shareholding companies of this Company, where the Company holds|
|||49% of its shares.|
|||Keihin Grand-Ocean Cooling & Heating Industry (Dalian) Co., Ltd.,|
|Keihin Grand-Ocean|Stands for|one of the mutual shareholding companies with this Company, where|
|||the Company holds 20% of its shares.|
|||A high-efficiency and energy-saving full-hermetic compressor using|
|Scroll compressor|Stands for||
|||advanced technology.|
|||The Product Data Management system, a technology managing all|
|||information and processes relating to products to provide information|
|PDM|Stands for|management in the whole life of product and establish a parallel|
|||collaborative environment for product design and manufacture within|
|||the enterprise.|
|||The Enterprise Resource Planning system, a enterprise information|
|||management system oriented to manufacturing industries for the|
|ERP|Stands for||
|||integration management of material resources, financial resources and|
|||information resources.|

Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Section 2 About the Company
I. Company information
|||
|-|-|
|Short form of the stock|DALENG GUFEN; DALENG-B|
|Stock code|000530; 200530|
|Listed stock exchange|Shenzhen Stock Exchange|
|Legal name in Chinese|大连冷冻机股份有限公司|
|Short form of legal name|大冷股份|
|Legal English name|Dalian Refrigeration Co., Ltd.|
|Abbreviation of legal English name|DRC|
|Legal representative|Ji Zhijian|

II. Contact persons and information
||||
|-|-|-|
||Secretary of the Board of Directors|Authorized representative for securities affairs|
|Name|Song Wenbao|Song Wenbao (proxy)|
||DALENG GUFEN Securities Department, No.|DALENG GUFEN Securities Department, No.|
|Address|||
||888, Xinan Road, Shahekou District, Dalian|888, Xinan Road, Shahekou District, Dalian|
|Tel.|0411-86538130|0411-86538130|
|Fax|0411-86654530|0411-86654530|
|E-mail|000530@bingshan.com|000530@bingshan.com|

III. Other situations
1. Contact of company
If the registered address, office address and zip code, website, email box of the company had any change in the report period
□ Applicable√ Not applicable
The registered address, office address and zip code, website, email box of the company had no change in the report period. Refer to the Annual Report for 2013 for detail.
2. Information disclosure and place of preparation
If the information disclosure and the place of preparation had any change in the report period
□ Applicable√ Not applicable
The name of newspaper for information disclosure selected by the company, the address of the website designated by China Securities Regulatory Commission for carrying semi-annual report, the place where the semi-annual report of the company is prepared had no change in the report period. Refer to the Annual Report for 2013 for detail.
3. Registration variation
If registration varied in the report period
√ Applicable□ Not applicable
On Mar. 31, 2014, under examination and ratification of Dalian Industrial& Commercial Administration Bureau, the legal representative of the company was changed from Xiao Yongqin to Ji Zhijian .
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Section 3 Summary of Main Accounting Data and Financial Indicators
I. Main accounting data and financial indicators
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
|||||
|-|-|-|-|
||Report period (from|Same period in the|Increase/decrease compared with|
|Summary of the accounting data||||
||Jan. through Jun.)|last year|the same period of the last year|
|Operating revenue|774,912,253.19|792,124,153.23|-2.17%|
|Net profit attributable to shareholders of|66,477,633.28|65,122,435.00|2.08%|
|listed companies||||
|Net profit belonging to the shareholders of|63,794,559.91|62,382,278.37|2.26%|
|listed companies after the deduction of||||
|non-recurring profit and loss||||
|Net cash flow from operating activities|-2,594,386.46|3,743,258.07|-169.31%|
|Basic earning per share|0.19|0.19|0.00%|
|Diluted earnings per share|0.19|0.19|0.00%|
|Weighted average return on net asset yield|3.49%|3.61%|Decrease 0.12 percentage points|
||End of this report||Increase/decrease compared with|
|||End of last year||
||period||the end of last year|
|Total assets|3,013,042,235.25|2,967,390,234.89|1.54%|
|Owner's equity attributable to shareholders|1,920,859,529.62|1,907,018,190.46|0.73%|
|of listed companies||||

II. Difference of accounting data between as per Chinese accounting standards and as per International Accounting Standards
The difference of accounting data between as per Chinese Accounting Standards and as per International Accounting Standards was 0.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report III. Non-recurring profits and losses and their amounts
|||
|-|-|
|Item|Amount|
|Disposal gains and losses of non-current asset|34,225.82|
|Government subsidies included in current profit or loss|3,511,809.67|
|Other non-operating revenue or expense|47,605.87|
|Influence on income tax|895,927.94|
|Influence on minority shareholders|14,640.05|
|Influence on net profit|2,683,073.37|

Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Section 4 Board of Directors' Report
I. Summary
In the first half of 2014, based on the business philosophy “Leading Innovation, Creating Value”, although being confronted with many challenges, the Company kept up its spirits, did real work, and laid stress on integration of internal resources and innovation of business modes to strive for attainment of the business targets, create value for customers and provide employees with more benefits.
In the report period, the Company made the sales income of 774.91 million yuan, accounting for45.86% of 1,690 million yuan of theCompany’s annual business indicator for 2014, down by2.17% from the same period of last year; and the total amount of profit of 73.08 million yuan, accounting for52.20% of 140 million yuan of theCompany’s annual business indicator for 2014, up by2.07% from the same period of last year.
In the report period, with paying adequate attention to the conventional markets such as chemicals, beer, dairy and further food processing, the Company focused on the cold chain logistics project to improve the comprehensive solution for cold chain logistics, enhance the packaged technical supports to the market, and actively adapt itself to market changes.
In the report period, the Company simplified the organizational structure and increased the operation efficiency through the measures such as organizational restructuring and application of the new operating mechanism. With optimization through the monthly operation promotion meeting and the monthly performance assessment meeting, the Company's operation was digitized and transparentized further, the work planning and predictability were improved, and the performance assessment was more refined and strengthened.
In the report period, the Company actively promoted the informationization construction projects such as PDM and ERP, and developed construction of the new performance lab orderly.
In the report period, Dalian Sanyo Compressor, as the leading scroll compressor manufacturer in China, accelerated research and development of high-efficiency and low-cost models, and actively expanded the sales area through building up the cost-related competence. Both the sales income and the net profit were increased steadily on a year-on-year basis, and the ordered volume of refrigeration projects was increased by about30% on a year-on-year basis.
In the report period, Dalian Sanyo Cold Chain was renamed as Panasonic Cold Chain (Dalian) Co., Ltd. It learnt and absorbed advanced technologies in the world through the platforms such as the 2014 Global Retail Trade Fair in Germany. The production lines for supermarket showcases and beverage showcases have been reconstructed and upgraded gradually from manual operation to automatic operation to ensure delivering the best product to customers in the shortest lead time.
In the report period, Dalian Sanyo Refrigeration further optimized allocation of the resources for large- size air conditioner business, and made great effort to marketing the two mainstay products of central air conditioners and commercial air conditioners closely around the current hot topics, i. e. energy saving and emission reduction, waste heat energy utilization and clean energy utilization.
In the report period, Dalian Fuji-Bingshan actively expanded the beverage producer market while ensuring stable development of the service provider market. In addition to the market of Coco Cola and Master Kong, the company successfully opened up the market of Nongfu spring and both the sales income and the net profit were increased greatly on a year-on-year basis with the delivered vending machines exceeding 50,000 sets accumulatively.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report II. Analysis of main business
Main financial data variations as compared to the same period last year
Monetary unit : RMB Yuan
||||||
|-|-|-|-|-|
||||Increase or decrease||
|||Same period of|||
||Report period||from the same|Reason for variation|
|||last year|||
||||period of last year||
|Operating revenue|774,912,253.19|792,124,153.23|-2.17%||
|Operating cost|609,950,440.82|620,886,543.64|-1.76%||
|Selling and distribution|48,901,400.51|46,381,343.35|||
||||5.43%||
|expenses|||||
|Administrative expenses|89,762,782.36|86,984,149.72|3.19%||
||-3,797,684.83|-2,085,116.83||Mainly due to increase of the|
|||||term deposit of the parent|
|Financial expenses|||-82.13%|company and increase of the|
|||||interest revenue in the report|
|||||period.|
|Income tax|3,751,633.86|4,512,062.85|-16.85%||
|Research and development|||||
||38,870,289.68|40,025,740.11|-2.89%||
|investment|||||
||-2,594,386.46|3,743,258.07||Mainly due to decrease of cash|
|||||received from sales of goods,|
|Net cash flow coming from||||and payment by the parent|
||||-169.31%||
|operating activities||||company for the tax of land|
|||||resource collection and|
|||||storage in the report period.|
||19,644,529.66|-2,697,502.61||Mainly due to the receipt of 15|
|||||million yuan as the 50%|
|Net cash flow coming from||||equity transfer from Dalian|
||||828.25%||
|investment activities||||Jiale Vending Machine|
|||||Operation Co., Ltd. in the|
|||||report period.|
|Net cash flow coming from|-49,481,272.95|-45,600,783.85|||
||||-8.51%||
|fund-raising activities|||||
|Net increase in cash and cash|-32,417,927.28|-44,600,048.56|||
||||27.31%||
|equivalents|||||
||||Increase or decrease||
||End of this||||
|||End of last year|from the end of last|Reason for variation|
||report period||||
||||year||
||35,233,321.64|26,031,386.32||Mainly due to increase of the|
|||||advances for equipment|
|Account paid in advance|||35.35%||
|||||purchase and for projects in|
|||||the report period.|
||32,994,118.28|24,514,740.07||Mainly due to increase of the|
|Other account receivable|||34.59%|performance bond for bids in|
|||||the report period.|
||36,807,288.20|53,580,031.02||Mainly due to payment of the|
|Employee’s compensation||||payroll drawn having been|
||||-31.30%||
|payable||||drawn at the end of previous|
|||||period in the report period.|

 The profit constitutions or profit sources of the company had an important change in the report period□ Applicable√ Not applicable
The profit constitutions or profit sources of the company had no important change in the report period.
Extension of future development and plan into the report period as disclosed in such public documents
of the company as share-offering prospectus, capital-raising prospectus and assets reorganization report,
etc.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report□ Applicable√ Not applicable
In such public documents of the company as share-offering prospectus, capital-raising prospectus and assets reorganization report, etc. disclosed no extension of future development and plan into the report period
The company reviewed and summarized the progress of the operating plan disclosed in the earlier stage in the report period.
In the report period, the Company made the sales income of 774.91 million yuan, accounting for45.86% of 1,690 million yuan of theCompany’s annual business indicator for 2014; and the total amount of profit of 73.08 million yuan, accounting for52.20% of 140 million yuan of theCompany’s annual business indicator for 2014.
III. Main business structure
Monetary unit: RMB yuan
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decre|||
||||||Increase/decre||
|||||ase of||Increase/decreas|
||||||ase of||
|||||operating||e of gross profit|
||Operating|Operating|||operating||
||||Gross profit|revenues from||from the same|
||revenue|costs|||costs from the||
|||||the same||period of last|
||||||same period of||
|||||period of last||year|
||||||last year||
|||||year|||
|By industry|||||||
|Refrigeration|||||||
|||||||Decrease 0.13 per|
|and air-|762,976,180.18|598,638,940.68|21.53%|-2.42%|-2.27%||
|||||||centage points|
|conditioning|||||||
|By product|||||||
|Refrigeration|||||||
|and air-||||||Decrease 0.13 per|
||762,976,180.18|598,638,940.68|21.53%|-2.42%|-2.27%||
|conditioning||||||centage points|
|equipment|||||||
|By region|||||||
|||||||Decrease1.41 per|
|Northeast China|591,705,529.73|480,596,639.82|18.77%|0.14%|1.90%||
|||||||centage points|
|||||||Decrease 1.56|
|East China|12,034,083.18|10,107,026.32|16.01%|14.02%|16.18%||
|||||||percentage points|
|||||||Increase 5.48|
|Central China|159,236,567.27|107,935,274.54|32.21%|-11.76%|-18.36%||
|||||||percentage points|

 IV. Analysis of core competence
Boasting the most complete cooling and heating product chain in the industry, the Company can offer to customers the service of package projects from design, manufacture, installation to maintenance to well meet the customized demand of customers.
Having the mature and perfect marketing network and after-sale service network, the Company can offer to customers in more regions the more rapid and considerate high-quality service.
Taking refrigeration and air-conditioning as its main business, the Company effectively combines the independentR&D and the joint ventures and cooperation and has formed a unique development pattern appropriate to itself and the industry.
In the report period, the Company's core competence above-mentioned was improved further.
V. Analysis of investments
1. External equity investments
(1) External investments
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
|||||
|-|-|-|-|
|External investments||||
|Investment in the report period (yuan)|Investment in the same period of last year (yuan)||Amount of variation|
|1,023,539,191.23|957,009,645.99||6.96%|
|Invested companies||||
|||Equity proportion of listed companies||
|Name of company|Main business|||
|||to invested companies (%)||
|For details of the invested companies, see VII-10, 11 in the Explanatory Notes to Accounting Statements.||||

 (2) Held financial companies' equity
|||||||
|-|-|-|-|-|-|
||Amount of|Quantity(Shares) held|Proportion ofshare equity intthat company|||
|Name of object||||Book value at|Profit and loss|
||primary|||||
|held||||he end of period|within period|
||investment|||||
|Guotai JunanSecunities Co.,Ltd|30,098,895.00|30,098,895|0.49%|30,098,895.00|1,504,944.75|
|Total|30,098,895.00|30,098,895|-|30,098,895.00|1,504,944.75|

 2. Consigned financing, derivative investments and entrusted loans
□ Applicable√ Not applicable
The Company had no consigned financing, derivative investments, and entrusted loans in the report period.
3. Analysis of major subsidiary companies and mutual shareholding companies
Monetary unit: thousand yuan
|||||||||
|-|-|-|-|-|-|-|-|
||||Registered|||Operating|Net|
|Name|Type|Main product||Total assets|Net assets|||
||||capital|||revenue|profit|
|Wuhan New World||||||||
|Refrigeration Industries|subsidiary|Screw compressor|RMB100,000|455,680|143,020|159,660|3,190|
|Co., Ltd.||||||||
|Dalian Sanyo Compressor|mutual|Semi-hermetic, and||||||
||||JPY6,200,000|2,079,595|1,015,744|1,255,326|92,040|
|Co., Ltd.|shareholding|scroll compressor||||||
|||Commerial||||||
|Panasonic Cold-chain|mutual|||||||
|||refrigeration|JPY4,650,000|1,494,005|516,353|939,929|8,175|
|(Dalian) Co., Ltd.|shareholding|||||||
|||equipment||||||
|||Producing and||||||
|||selling lithium||||||
|Dalian Sanyo Refrigeration|mutual|||||||
|||bromide absorption|JPY3,450,000|719,635|374,661|452,599|5,318|
|Co., Ltd.|shareholding|||||||
|||type refrigerators and||||||
|||multi-couple units||||||
|Keinin-Grand Ocean||||||||
||mutual|Air-conditioner for||||||
|Thermal Technology|||USD15,117.89|314,228|178,818|286,307|20,800|
||shareholding|cars||||||
|(Dalian) Co., Ltd.||||||||
|||Producing and||||||
|Dalian Fuji-Bingshan|Mutual|||||||
|||selling vending|JPY1,800,000|297,178|177,679|194,187|20,008|
|Vending Machine Co., Ltd.|shareholding|||||||
|||machines||||||

VI. Estimation of the business performance for Jan.-Sept., 2014
Estimation notice that the accumulated net profit from the beginning of year to the end of the next reporting period may be turned into loss or significantly change compared with the same period of the last year, and explanation of the cause
□ Applicable√ Inapplicable
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report VII. Profit distribution and dividend payment
By giving consideration to both the return to shareholders and the Company's long-term development, and in combination of the Company's profit made in the this year, the Company formulated the 2013 annual dividend distribution plan of paying the cash of 1.5 yuan for every 10 shares. Reviewed and adopted at the Company's general meeting, the Company's Board of Directors has implemented the plan in June 2014.
|||
|-|-|
|Special explanation of the cash dividend distribution policy||
|Did it comply with the Company's Articles of Association or||
||Yes|
|the resolutions at the general meeting?||
|Were the dividend distribution standard and proportion||
||Yes|
|defined and clear?||
|Were the decision-making procedure and system complete?|Yes|
|Did the independent directors play their role conscientiously?|Yes|
|Did the minority shareholders have opportunities to fully||
|express their opinions and appeals? Were their legal rights|Yes|
|and interests protected fully?||
|Were the condition and procedure for adjustment or change||
|of the cash dividend distribution policy compliant and|Yes|
|transparent?||

Dalian Refrigeration Co., Ltd. 2014 Semiannual Report VIII. Record of investigation, communication, interview and other activities in the reporting period
|||||||
|-|-|-|-|-|-|
||||||Main content|
||||||talked about|
||Reception|Reception|Reception|||
|Reception time||||Reception object|and|
||place|mode|object type|||
||||||information|
||||||provided|
||Company's|Field||||
|Jan. 3, 2014|||Institution|Wu Hao from China Merchants Fund.||
||office|investigation||||
||Company's|Field||Ji Hongtao, Huangxin, and Huang Weiqiao from Penghua Fund||
|Jan. 15, 2014|||Institution|||
||office|investigation||Management Co., Ltd.||
||Company's|Field||||
|Feb. 13, 2014|||Institution|Huang Kun from Guotai Junan Securities Research Institute||
||office|investigation||||
||Company's|||Shao Qihan from Fuh Hwa Securities Investment Trust Co. Ltd.;||
|Feb. 18, 2014||By telephone|Institution|||
||office|||Xu Bo from China Securities Co., Ltd.||
|||||Zhang Junping from BOC International (China) Limited; Lu Miao||
|||||from China Galaxy Investment Management Co., Ltd.; Cao||
|||||Yuning from Guodu Securities Co., Ltd.; Yu Li from China Life||
||Company's|Field||||
|Feb. 20, 2014|||Institution|Insurance Asset Management Co., Ltd.; Min Wenqiang from||
||office|investigation||||
|||||Rongtong Fund Management Co., Ltd.; Zhu Hong from Lord||
|||||Abbett China Asset Management Co., Ltd.; Luan Chao from||
|||||China Post & Capital Fund Management Co., Ltd.||
||Company's|Field||||
|Feb. 28, 2014|||Institution|Wang Xueying from Bohai Securities Co., Ltd.||
||office|investigation||||
||Company's|Field||Fan Haitao, and Li Mengyao from China International Capital||
|Mar. 20, 2014|||Institution|||
||office|investigation||Corporation Limited.||
|||||Xie Jiale, and Xiao Qunxi from Huatai Securities Co., Ltd.; Wang||
|||||Kai, Geng Dafeng, Dai Qunzhong, and Wu Yan from Northeast||
|||||Securities Co., Ltd.; Du Minjie from Xinhua Asset Management||
||||||Company|
|||||Co., Ltd.; Gong Yuce from Wanlian Securities Brokerage Co.,||
||||||fundamentals|
|||||Ltd.; Huang Dong from China International Fund Management||
||||||having been|
|||||Co., Ltd.; Chen Zhaohong from Zhongshan Securities Co., Ltd.;||
||||||publicly|
|||||Wang Youhong from Everbright Securities Co., Ltd.; Huang Ying||
||||||disclosed|
|||||from Beijing Hi-tech Wealth Investment and Developing Co.,||
|||||Ltd.; Shu Hao, and Wu Fengshu from Hua An Fund Management||
||Company's|||Co., Ltd.; Wu Linan from Nanjing Securities Co., Ltd.; Zhou||
|Apr. 24, 2014||By telephone|Institution|||
||office|||Qiwei from China Southern Fund Management Co., Ltd.; Cheng||
|||||Jidong, and Zhang Jilong from Guosen Securities Co., Ltd.; Liu||
|||||Fan from Guotai Junan Securities Co., Ltd.; Liu Xiao from||
|||||Franklin Templeton Sealand Fund Management Co., Ltd.; Zhou||
|||||Zhipeng from Sinolink Securities Co., Ltd.; Zhao Jie from||
|||||Tianzhun Investment Co., Ltd; Wang Dong from Tianfeng||
|||||Securities Co., Ltd.; Yi Zhenxing from Jianghai Securities Co.,||
|||||Ltd.; Yang Lanchun from Pegasus Investment Management||
|||||(Shanghai) Co., Ltd.; Huang Guoliang from Pubang Investment||
|||||Co., Ltd.||
|||||Cai Peifen from Cathay Securities Investment Trust Co., Ltd.;||
||Company's|||||
|Apr. 29, 2014||By telephone|Institution|Yang Ailin from Bank of Communications International Trust||
||office|||||
|||||Co., Ltd.||
||Company's|Field||Hu Shen, and Zhong Hui from Cinda Securities Co., Ltd.; Zhang||
|May 13, 2014|||Institution|||
||office|investigation||Lei from Dongxing Securities Co., Ltd.||
||Company's|Field||||
|May 28, 2014|||Institution|Wan Fangfang from China Asset Management Co., Ltd.||
||office|investigation||||
||Company's|Field||||
|Jun. 20, 2014|||Institution|Li Jianxing from UG Investment Advisers Limited||
||office|investigation||||
||Company's|Field||Xu Jianhua from Orient Securities Co., Ltd.; Chen Wen from||
|Jun. 24, 2014|||Institution|||
||office|investigation||Industrial Securities Co., Ltd.||

Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Section 5 Important Issues
I. Company governing
On Mar. 27, 2014, the Company convened its 1st extraordinaryshareholders’ general meeting in 2014 and the 9th meeting of the 6th Board of Directors for by-election of the vacant director and chairman positions.
The actual situation of company governing has no difference from the Company Law and the
requirements of relevant regulations of China Securities Regulatory Commission.
II. Major lawsuit and arbitration issues
□ Applicable√ Not applicable
The Company had no major lawsuit and arbitration issues in this reporting period.
III. Media's queries
□ Applicable√ Not applicable
There were no media's queries to the Company in the report period.
IV. Important associated transactions
1. Associated transactions related to normal business
In the report period, the total amount of normal associated transactions between the Company and associated parties was 184,380 thousand yuan, accounting for40.98% of the budgeted amount for the year 2014. This included 71,910 thousand yuan, accounting for31.27% of the budgeted amount for the year 2014, for purchasing supporting products for package projects from associated parties, and 112,470 thousand yuan, accounting for51.13% of the budgeted amount for the year 2014, from selling supporting parts and components to associated parties.
V. Important contracts and their performance
1. Trusting, contracting and leasing status
(1) Trusting status
□ Applicable√ Not applicable
There was no trusting status with the Company in the reporting period.
(2) Contracting status
□ Applicable√ Not applicable
There was no contracting status with the Company in the reporting period.
(3) Leasing status
□ Applicable√ Not applicable
There was no leasing status with the Company in the reporting period.
2. Guaranteeing status
□ Applicable√ Not applicable
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report There was no guaranteeing status with the Company in the reporting period.
3. Other important contracts
□ Applicable√ Not applicable
The Company had no other important contracts in the reporting period.
4. Other important transactions
□ Applicable√ Not applicable
The Company had no other important transactions in the reporting period.
VI. Implementation of commitments
1. Commitments of the Company or its shareholders holding5% or higher of the shares in the reporting period or carried to the reporting period
Undertaking matters for trial sales of state shares and implementation
Except the immature condition of being implementation for management share incentive scheme, Dalian Bingshan Group strictly perform the commitment in share reform.
The management equity incentive of Dalian Refrigeration Co., Ltd. has not been implemented due to immature objective conditions. In consideration of implementation of the above-mentioned
commitments of equity division reform, and in order to ensure that the management equity incentive of Dalian Refrigeration Co., Ltd. is implemented finally, the Company will keep on locking25% of the shares (19,213,921 shares) held by Dalian Bingshan Group Co., Ltd. until the management equity incentive of Dalian Refrigeration Co., Ltd. is implemented finally, and then apply for the relief from trading limited conditions.
In May 2014, Dalian Bingshan Group Co., Ltd. re-regulated the above-mentioned commitments that have not been fulfilled. After being re-regulated, the commitment stated: "the company will authorize the Board of Directors of Dalian Refrigeration Co., Ltd. to develop and implement the management equity incentive and restriction system according to the state's policies, laws and regulations before Jun. 30, 2016."
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report VII. Index to the information announcements for major matters in the report period
||||||
|-|-|-|-|-|
|Announcement||Newspaper name and page for|Publishing|Website and path|
||Item||||
|No.||publishing|date|for publishing|
||Special announcement of the||||
|||China Securities Daily A17, Hong|||
|2014-001|commitments that have not been||Feb. 14, 2014|http://www.cninfo.com.cn|
|||Kong Commercial Daily A17|||
||fulfilled||||
||Announcement of the director's|China Securities Daily B020, Hong|||
|2014-002|||Mar. 6, 2014|http://www.cninfo.com.cn|
||resignation|Kong Commercial Daily A30|||
||Announcement of the|China Securities Daily B020, Hong|||
|2014-003|||Mar. 6, 2014|http://www.cninfo.com.cn|
||chairman's resignation|Kong Commercial Daily A30|||
||Announcement of the||||
|||China Securities Daily B027, Hong|||
|2014-004|resolutions at the 8th meeting of||Mar. 11, 2014|http://www.cninfo.com.cn|
|||Kong Commercial Daily A21|||
||the 6th Board of Directors||||
||Notice on convening the 1st||||
|||China Securities Daily B027, Hong|||
|2014-005|extraordinary general meeting in||Mar. 11, 2014|http://www.cninfo.com.cn|
|||Kong Commercial Daily A21|||
||2014||||
||Announcement of the||||
||resolutions at the 1st|China Securities Daily B016, Hong|||
|2014-006|||Mar. 28, 2014|http://www.cninfo.com.cn|
||extraordinary general meeting in|Kong Commercial Daily A14|||
||2014||||
||Announcement of the||||
|||China Securities Daily B016, Hong|||
|2014-007|resolutions at the 9th meeting of||Mar. 28, 2014|http://www.cninfo.com.cn|
|||Kong Commercial Daily A14|||
||the 6th Board of Directors||||
||Announcement of the monthly||||
|||China Securities Daily B016, Hong|||
|2014-008|progress of the commitments||Mar. 28, 2014|http://www.cninfo.com.cn|
|||Kong Commercial Daily A14|||
||that have not been fulfilled||||
|||China Securities Daily B057, Hong|||
|2014-009|2013 Annual Report Summary||Apr. 24, 2014|http://www.cninfo.com.cn|
|||Kong Commercial Daily A22|||
||Announcement of the||||
|||China Securities Daily B057, Hong|||
|2014-010|resolutions at the 10th meeting||Apr. 24, 2014|http://www.cninfo.com.cn|
|||Kong Commercial Daily A22|||
||of the 6th Board of Directors||||
||Announcement of the||||
|||China Securities Daily B057, Hong|||
|2014-011|resolutions at the 5th meeting of||Apr. 24, 2014|http://www.cninfo.com.cn|
|||Kong Commercial Daily A22|||
||the 6th Board of Supervisors||||
||Notice on convening the 2013|China Securities Daily B057, Hong|||
|2014-012|||Apr. 24, 2014|http://www.cninfo.com.cn|
||annual general meeting|Kong Commercial Daily A22|||
||Announcement of the 2014||||
|||China Securities Daily B057, Hong|||
|2014-013|annual estimation of routine||Apr. 24, 2014|http://www.cninfo.com.cn|
|||Kong Commercial Daily A22|||
||associated transactions||||
||Quarterly Report for the First|China Securities Daily B057, Hong|||
|2014-014|||Apr. 24, 2014|http://www.cninfo.com.cn|
||Quarter, 2014|Kong Commercial Daily A22|||
||Announcement of the monthly||||
|||China Securities Daily B185, Hong|||
|2014-015|progress of the commitments||Apr. 29, 2014|http://www.cninfo.com.cn|
|||Kong Commercial Daily A11|||
||that have not been fulfilled||||
||Announcement of the||||
|||China Securities Daily B039, Hong|||
|2014-016|resolutions at the 2014 annual||May 21, 2014|http://www.cninfo.com.cn|
|||Kong Commercial Daily A20|||
||general meeting||||
||Announcement of the monthly||||
|||China Securities Daily B007, Hong|||
|2014-017|progress of the commitments||May 30, 2014|http://www.cninfo.com.cn|
|||Kong Commercial Daily A10|||
||that have not been fulfilled||||
||Announcement of the 2013|China Securities Daily B022, Hong|||
|2014-018|||Jun. 18, 2014|http://www.cninfo.com.cn|
||annual dividend distribution|Kong Commercial Daily A10|||

Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Section 6 Change in Share Capital and Shareholders' Information I. Change in share capital
No change.
II. Number of shareholders and their shareholding
||||||||||
|-|-|-|-|-|-|-|-|-|
|Total number of shareholders in the reporting period|||38,737||||||
|Shareholding of top ten shareholders|||||||||
||||||||Number of|Number of|
|Name|Nature|||Proportion|Total number||shares with sale|pledged shares|
||||||||restriction|or shares frozen|
|Dalian Bingshan Group Co., Ltd.|Domestic non-state-owned legal person|||21.96%|76,855,683||19,213,921||
|Sanyo Electric Co., Ltd.|Overseas legal person|||10.00%|35,001,500||0||
|Penghua China 50 Open-End Securities Investment Fund|Others|||1.95%|6,799,927||0||
|Zhong Chuan Finance Co., Ltd.|State-owned legal person|||1.43%|5,000,084||0||
|SSF Portfolio 404|Others|||1.32%|4,599,985||0||
|Penghua Motivity Growth Mixed Securities Investment Fund|Others|||1.19%|4,143,401||0||
|BOCI Securities Limited|Overseas legal person|||0.94%|3,270,654||0||
|Zhongrong International Trust Co., Ltd. - Huixin SecuritiesInvestment Sheet 1 - Fund Trust|Others|||0.74%|2,577,311||0||
|Jiang Youchang|Domestic natural person|||0.62%|2,139,575||0||
|Morgan Stanley Huaxin Advantage Growth Stock Fund|Others|||0.59%|2,066,300||0||
|Shareholding of top ten shareholders without sale restriction|||||||||
|Name||Number of shares without sale restriction||||Type of shares|||
|Dalian Bingshan Group Co., Ltd.||57,641,762||||RMB denominated ordinary shares|||
|Sanyo Electric Co., Ltd.||35,001,500||||Domestically listed foreign shares|||
|Penghua China 50 Open-End Securities Investment Fund||6,799,927||||RMB denominated ordinary shares|||
|Zhong Chuan Finance Co., Ltd.||5,000,084||||RMB denominated ordinary shares|||
|SSF Portfolio 404||4,599,985||||RMB denominated ordinary shares|||
|Penghua Motivity Growth Mixed Securities Investment Fund||4,143,401||||RMB denominated ordinary shares|||
|BOCI Securities Limited||3,270,654||||Domestically listed foreign shares|||
|Zhongrong International Trust Co., Ltd. - Huixin Securities Investment Sheet 1 - FundTrust||2,577,311||||RMB denominated ordinary shares|||
|Jiang Youchang||2,139,575||||RMB denominated ordinary shares|||
|Morgan Stanley Huaxin Advantage Growth Stock Fund||2,066,300||||RMB denominated ordinary shares|||
|||Dalian Bingshan Group Co., Ltd. had the association relationship with Sanyo ElectricCo., Ltd. among the above shareholders. Sanyo Electric Co., Ltd. holds 30% of DalianBingshan Group Co., Ltd.'s equity.|||||||
|Notes to the associated relationship and uniform actions of the above shareholders|||||||||

If the company shareholders had any agreed repurchase transaction in the report period
□ Yes√ No
III. 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
There were no changes in the actual controller in the reporting period.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Section 7 Information on theCompany’s Directors, Supervisors, and Senior Management officers
I. Variation in shareholding by directors, supervisors and senior management officers□ Applicable√ Not applicable
The shareholding by the directors, supervisors and senior management officers of the company had no change in the report period. Refer to the Annual Report for 2013 for detail.
II. Resignation, dismissal and election, engagement of company directors, supervisors, senior management officers
||||||
|-|-|-|-|-|
||Position||||
|Name||Type|Date|Reason|
||assumed||||
|||||Resigned the position of chairman and director because of|
|Xiao Yongqin|Chairman|Resignation|Mar. 27, 2014||
|||||job transfer.|
|||||Resigned the position of vice chairman and director because|
|Wang Jian|Vice chairman|Resignation|Mar. 4, 2014||
|||||of job transfer.|
|Nagasawa Hideharu|Director|Resignation|Mar. 4, 2014|Resigned the position of director because of job transfer.|
|||||Resigned the position of director but continued holding the|
|Rong Yan|Director|Resignation|Mar. 4, 2014||
|||||position of financial majordomo because of job need.|
|Ji Zhijian|Chairman|Elected|Mar. 27, 2014|Elected to fill the vacant position of chairman.|
|Xu Junrao|Director|Elected|Mar. 27, 2014|Elected to fill the vacant position of director.|
|Kobayashi Noriaki|Vice chairman|Elected|Mar. 27, 2014|Elected to fill the vacant position of vice chairman.|
|Kijima Tadatoshi|Director|Elected|Mar. 27, 2014|Elected to fill the vacant position of director.|

Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Section 8 Financial report
1. The Company's semiannual financial report has not been audited.
2. Accounting statements
CONSOLIDATED BALANCE SHEET
Prepared by Dalian Refrigeration Company Limited 30 June 2014 Unit: RMB Yuan
||||
|-|-|-|
|Ending balance||Beginning Balance|
|Consolidation|Parent company|Consolidation|
|474,869,516.22|373,188,133.53|512,903,713.13|
|49,422,722.56|43,676,722.56|39,827,031.77|
|454,693,962.55|238,275,265.79|369,712,746.70|
|35,233,321.64|8,847,180.43|26,031,386.32|
|19,104,944.75|21,204,944.75|33,450.00|
|5,197,899.97|5,197,899.97|3,603,594.85|
|32,994,118.28|18,843,204.46|24,514,740.07|
|271,664,326.82|143,229,406.15|325,531,007.41|
|2,080,367.89|2,080,367.89|995,599.80|
|1,345,261,180.68|854,543,125.53|1,303,153,270.05|
|1,023,539,191.23|1,133,116,420.15|1,021,946,998.64|
|0|0||
|380,046,966.20|208,229,946.18|395,266,143.70|
|83,566,674.05|78,427,096.63|68,462,823.08|
|154,940,128.67|90,107,396.95|155,190,230.51|
|4,034,501.14|3,689,731.47|3,901,749.71|
|21,653,593.28|13,045,405.37|19,469,019.20|
|1,667,781,054.57|1,526,615,996.75|1,664,236,964.84|
|3,013,042,235.25|2,381,159,122.28|2,967,390,234.89|

Dalian Refrigeration Co., Ltd. 2014 Semiannual Report CONSOLIDATED BALANCE SHEET (CONTINUED)
Prepared by Dalian Refrigeration Company Limited 30 June 2014 Unit: RMB Yuan
||||
|-|-|-|
|Ending balance||Beginning Balance|
|Consolidation|Parent company|Consolidation|
|40,000,000.00||37,500,000.00|
|89,961,947.63|59,303,921.26|80,293,515.17|
|546,518,250.42|327,006,785.99|464,863,265.01|
|138,358,628.94|81,755,978.94|177,238,388.99|
|36,807,288.20|5,722,508.11|53,580,031.02|
|25,422,829.15|16,239,664.91|22,497,530.86|
|1,433,156.00|533,156.00|2,053,911.36|
|45,602,647.85|50,431,522.94|51,929,364.03|
|849,550.50|292,550.50|1,699,101.00|
|924,954,298.69|541,286,088.65|891,655,107.44|
|63,192,354.35|16,404,354.35|66,627,339.60|
|63,192,354.35|16,404,354.35|66,627,339.60|
|988,146,653.04|557,690,443.00|958,282,447.04|
|350,014,975.00|350,014,975.00|350,014,975.00|
|584,846,283.21|583,617,355.59|584,861,283.21|
|534,598,750.04|534,598,750.04|505,533,065.25|
|451,399,521.37|355,237,598.65|466,608,867.00|
|1,920,859,529.62|1,823,468,679.28|1,907,018,190.46|
|104,036,052.59||102,089,597.39|
|2,024,895,582.21|1,823,468,679.28|2,009,107,787.85|
|3,013,042,235.25|2,381,159,122.28|2,967,390,234.89|

Dalian Refrigeration Co., Ltd. 2014 Semiannual Report CONSOLIDATED INCOME STATEMENT
Prepared by Dalian Refrigeration Company Limited 2014.01-06 Unit: RMB Yuan
||||
|-|-|-|
|2014.01-06|||
|Consolidation|Parent company|Consolidation|
|774,912,253.19|470,970,219.97|792,124,153.23|
|774,912,253.19|470,970,219.97|792,124,153.23|
|763,013,964.64|467,279,899.71|769,624,223.97|
|609,950,440.82|386,947,532.84|620,886,543.64|
|6,469,418.81|3,082,292.41|5,765,226.20|
|48,901,400.51|25,191,223.59|46,381,343.35|
|89,762,782.36|50,581,629.55|86,984,149.72|
|-3,797,684.83|-5,176,060.33|-2,085,116.83|
|11,727,606.97|6,653,281.65|11,692,077.89|
|56,334,258.74|58,434,258.74|44,070,614.51|
|53,897,497.58|53,897,497.58|43,570,614.51|
|68,232,547.29|62,124,579.00|66,570,543.77|
|5,049,995.17|4,294,350.32|5,290,608.96|
|206,820.12|104,144.94|264,070.46|
|129,041.96|54,144.94|222,418.65|
|73,075,722.34|66,314,784.38|71,597,082.27|
|3,751,633.86|2,100,279.73|4,512,062.85|
|69,324,088.48|64,214,504.65|67,085,019.42|
|66,477,633.28|64,214,504.65|65,122,435.00|
|2,846,455.20||1,962,584.42|
|--||--|
|0.19||0.19|
|0.19||0.19|
|-11,250.00|-11,250.00|9,000.00|
|69,312,838.48|64,203,254.65|67,094,019.42|
|66,466,383.28|64,203,254.65|65,131,435.00|
|2,846,455.20||1,962,584.42|

Dalian Refrigeration Co., Ltd. 2014 Semiannual Report CONSOLIDATED CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Company Limited 2014.01-06 Unit: RMB Yuan
||||
|-|-|-|
|2014.01-06|||
|Consolidation|Parent company|Consolidation|
|526,979,719.10|298,992,839.09|594,558,071.63|
|38,095.13|||
|23,780,067.97|17,828,305.25|17,634,803.78|
|550,797,882.20|316,821,144.34|612,192,875.41|
|281,731,145.25|189,500,108.92|345,476,050.50|
|154,450,749.32|90,376,223.25|150,381,610.32|
|64,623,975.30|34,997,096.61|53,234,848.20|
|52,586,398.79|35,942,188.52|59,357,108.32|
|553,392,268.66|350,815,617.30|608,449,617.34|
|-2,594,386.46|-33,994,472.96|3,743,258.07|
|15,000,000.00|15,000,000.00||
|20,655,571.40|20,622,121.40|12,536,629.02|
|93,105.00||266,830.00|
|35,748,676.40|35,622,121.40|12,803,459.02|
|16,104,146.74|9,309,283.62|15,500,961.63|
|16,104,146.74|9,309,283.62|15,500,961.63|
|19,644,529.66|26,312,837.78|-2,697,502.61|
|7,400,000.00||24,800,000.00|
|7,400,000.00||24,800,000.00|
|3,900,000.00||17,000,000.00|
|52,941,288.95|50,624,979.28|53,400,783.85|
|1,500,000.00||1,508,803.41|
|39,984.00|||
|56,881,272.95|50,624,979.28|70,400,783.85|
|-49,481,272.95|-50,624,979.28|-45,600,783.85|
|13,202.47|98.8|-45,020.17|
|-32,417,927.28|-58,306,515.66|-44,600,048.56|
|502,339,160.35|431,494,649.19|525,818,735.46|
|469,921,233.07|373,188,133.53|481,218,686.90|

Dalian Refrigeration Co., Ltd. 2014 Semiannual Report CONSOLIDATED STATEMENT OF CHANGES INOWNERS’ EQUITY
Prepared by Dalian Refrigeration Company Limited 2014.01-06 Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|2014.01-06|||||||||
|Owners’ equity attributable to parent company|||||||Minorityequity|Total ofowners’ equity|
|share capital|Capital suplus|Lessen:treasurystock|Surplus reserve|Generalriskreserve|Retained profits|Others|||
|350,014,975.00|584,861,283.21||505,533,065.25||466,608,867.00||102,089,597.39|2,009,107,787.85|
|350,014,975.00|584,861,283.21||505,533,065.25||466,608,867.00||102,089,597.39|2,009,107,787.85|
||-15,000.00||29,065,684.79||-15,209,345.63||1,946,455.20|15,787,794.36|
||||||66,477,633.28||2,846,455.20|69,324,088.48|
||-15,000.00|||||||-15,000.00|
||-15,000.00||||66,477,633.28||2,846,455.20|69,309,088.48|
||||29,065,684.79||-81,686,978.91||-900,000.00|-53,521,294.12|
||||29,065,684.79||-29,065,684.79||||
||||||-52,502,246.25||-900,000.00|-53,402,246.25|
||||||-119,047.87|||-119,047.87|
|350,014,975.00|584,846,283.21||534,598,750.04||451,399,521.37||104,036,052.59|2,024,895,582.21|

Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|2013.01-12|||||||||
|Owners’ equity attributable to parent company|||||||Minorityequity|Total ofowners’ equity|
|share capital|Capital surplus|Lessen:treasurystock|Surplus reserve|Generalriskreserve|Retained profits|Others|||
|350,014,975.00|584,852,283.21||469,665,883.33||404,267,596.17||101,052,831.86|1,909,853,569.57|
|350,014,975.00|584,852,283.21||469,665,883.33||404,267,596.17||101,052,831.86|1,909,853,569.57|
||9,000.00||35,867,181.92||62,341,270.83||1,036,765.53|99,254,218.28|
||||||153,006,057.13||5,955,568.94|158,961,626.07|
||9,000.00|||||||9,000.00|
||9,000.00||||153,006,057.13||5,955,568.94|158,970,626.07|
||||35,867,181.92||-90,664,786.30||-4,918,803.41|-59,716,407.79|
||||35,867,181.92||-35,867,181.92||||
||||||-52,502,246.25||-4,918,803.41|-57,421,049.66|
||||||-2,295,358.13|||-2,295,358.13|
|350,014,975.00|584,861,283.21||505,533,065.25||466,608,867.00||102,089,597.39|2,009,107,787.85|

Dalian Refrigeration Co., Ltd. 2014 Semiannual Report STATEMENT OF CHANGES INOWNERS’ EQUITY
Prepared by Dalian Refrigeration Company Limited 2014.01-06 Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|2014.01-06||||||
||||||Total of owners’equity|
|share capital|Capital surplus|Lessen: treasurystock|Surplus reserve|Retained profits||
|350,014,975.00|583,632,355.59||505,533,065.25|372,591,025.04|1,811,771,420.88|
|350,014,975.00|583,632,355.59||505,533,065.25|372,591,025.04|1,811,771,420.88|
||-15,000.00||29,065,684.79|-17,353,426.39|11,697,258.40|
|||||64,214,504.65|64,214,504.65|
||-15,000.00||||-15,000.00|
||-15,000.00|||64,214,504.65|64,199,504.65|
||||29,065,684.79|-81,567,931.04|-52,502,246.25|
||||29,065,684.79|-29,065,684.79||
|||||-52,502,246.25|-52,502,246.25|
|350,014,975.00|583,617,355.59||534,598,750.04|355,237,598.65|1,823,468,679.28|

Dalian Refrigeration Co., Ltd. 2014 Semiannual Report
|||||||
|-|-|-|-|-|-|
|2013.01-12||||||
||||||Total of owners’equity|
|share capital|Capital surplus|Lessen: treasurystock|Surplus reserve|Retained profits||
|350,014,975.00|583,623,355.59||469,665,883.33|315,632,029.27|1,718,936,243.19|
|350,014,975.00|583,623,355.59||469,665,883.33|315,632,029.27|1,718,936,243.19|
||9,000.00||35,867,181.92|56,958,995.77|92,835,177.69|
|||||145,328,423.94|145,328,423.94|
||9,000.00||||9,000.00|
||9,000.00|||145,328,423.94|145,337,423.94|
||||35,867,181.92|-88,369,428.17|-52,502,246.25|
||||35,867,181.92|-35,867,181.92||
|||||-52,502,246.25|-52,502,246.25|
|350,014,975.00|583,632,355.59||505,533,065.25|372,591,025.04|1,811,771,420.88|

Dalian Refrigeration Co., Ltd. 2014 Semiannual Report NOTES TO THE FINANCIAL STATEMENTS
(All amounts in RMB Yuan unless otherwise stated)
Ⅰ.General information
Dalian Refrigeration Company Limited (the “Company”) was incorporated in thePeople’s Republic of China (the “PRC”) on December 18, 1993 as a joint stock limited company. The principal activities of the Company are manufacture, sale and installation of refrigeration equipments. The Company together with its subsidiaries is hereinafter collectively referred to as the “Group”. The address of theCompany’s registered office is No.888 Xinan Road, Shahekou District, Dalian, China. TheCompany’s domestically listed RMB denominated ordinary shares (“A shares”) and domestically listed foreign investment ordinary shares (“B shares”) were listed on the Shenzhen Stock Exchange in the PRC in December 1993 and March 1998 respectively.
As the China's Refrigeration& Air Conditioning Association published, the Company was put the first place for its sales income and economy utility general index in the line; and its products were also been the first level for variety, specification, market occupation rate and export sales in China's refrigeration industry.
Ⅱ. The main accounting policies, accounting estimates and corrections of accounting errors
1. Basic of preparation of financial statements
The financial statements have been prepared on the basic assumption of going concern and on the accrual basis of accounting. The effects of evens and other transactions actually occurred and they have been recorded and measured in accordance with the Chinese Accounting Standards (2006): Framework and other accounting standards.
2. Declaration on following Accounting Standard for Business Enterprises
Declaration from the Company: The financial report made by the Company was in accordance with Accounting Standard for Business Enterprises, which reflected the financial position, financial performance and cash flow of the Company truly, objectively and completely.
3. Fiscal year
The Company adopts the calendar year as its fiscal year, i.e. from January 1 to December 31.
4. Functional currency
RMB was the functional currency of the Company.
5. Accounting measurement attribute
A. Accounting measurement attribute
The Company adopts the accrual basis for accounting treatments. All assets are stated at their historical costs on acquisition. The financial assets or financial liabilities which are measured at their fair value and the variation of which is recorded into the profits and losses are stated at their fair value. Stocks or fixed assets and other assets on acquisition, which its payment delayed longer than normal payment condition, should be measured at the present value of the payment. Other assets with impairment are measured at the recoverable amount. The amount of overage on assets is determined at replacement cost.
B. The reporting items which the accounting measurement attributes changed during the current period
No.
6. Accounting method of business combination under the same control and not under the same control
A. The Company adopts equity method for business combination under same control. The assets and liabilities that the combining party obtained in a business combination shall be measured on their carrying amount in the combined party on the combining date. The difference between the carrying amount of net assets acquired by the combining party and the carrying amount of the consideration paid by it (or the total par value of the shares issued) shall be adjusted to capital surplus. If the capital surplus is not sufficient for adjustment, retained earning is adjusted respectively. The business combination costs that are directly attributable to the combination, such as audit fees, valuation fees, and legal service fees and so on are recognized in profit or loss during the current period when they occurred. The bonds issued for a business combination or the handling fees, commissions and other expenses for bearing other liabilities shall be recorded in the amount of initial measurement of the bonds or other debts. The handling fees, commissions and other expenses for the issuance of equity securities for the business combination shall be credited against the surplus of equity securities; if the surplus is not sufficient, the retained earnings shall be offset. Where a relationship between a parent company and a subsidiary company is formed due to a business combination, the parent company shall, on the combining date, prepare consolidated financial statements according to the accounting policy of the Company.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report B. The Company adopts acquisition method for business combination not under same control. The acquirer shall recognize the initial cost of combination under the following principles: a) When business combination is achieved through a single exchange transaction, the cost of a business combination is the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for control of the acquiree; b) For the business combination involved more than one exchange transaction, the cost of the combination is the aggregate cost of the individual transactions; c) The costs directly attributed to business combination are included in the cost of combination; d) Where a business combination contract or agreement provides for a future event which may adjust the cost of combination, the Company shall include the amount of the adjustment in the cost of the combination at the acquisition date if the future event leading to the adjustment is probable and the amount of the adjustment can be measured reliably.
The acquirer shall, on the acquisition date, measure the assets given and liabilities incurred or assumed by an enterprise for a business combination in light of their fair value, and shall record the balances between them and their carrying amounts into the profits and losses at the current period. The acquirer shall distribute the combination costs on the acquisition date, and shall recognize all identifiable assets, liabilities and contingent liabilities it obtains from the acquiree. a. the acquirer shall recognize the difference that the combination costs are over the fair value of the identifiable net assets obtained from acquiree as goodwill; b. if the combination costs are less than the fair value of the identifiable net assets obtained from acquiree, the acquirer shall reexamine the measurement of the fair values of the identifiable assets, liabilities and contingent liabilities obtained from the acquiree as well as the combination costs; and then after the reexamination, the result is still the same, the difference shall be recorded in the profit and loss of the current period.
Where a relationship between a parent company and a subsidiary company is formed due to a business combination, the parent company shall prepare accounting books for future reference, which shall record the fair value of the identifiable assets, liabilities and contingent liabilities obtained from the subsidiary company on the acquisition date. When preparing consolidated financial statements, it shall adjust the financial statements of the subsidiary company on the basis of the fair values of the identifiable assets, liabilities and contingent liabilities determined on the acquisition date according to theCompan’ys accounting policy of “Consolidated financial statement”.
7. Basis of consolidation
(1) Scope of consolidation
Consolidated financial statements are included all subsidiaries of the parent.
(2) Increase or decrease of the subsidiaries
For any subsidiary acquired by the Company through business combination under the same control, when the consolidated balance sheet for the current period is being prepared, the beginning balances in the consolidated balance sheet are made corresponding modification. For addition business combination not under same control during the reporting period, the Company makes no adjustment for the beginning balances in the consolidated balance sheet. When disposing subsidiary during the reporting period, the Company makes no adjustment for the beginning balances in the consolidated balance sheet. For any subsidiary acquired by the Company through business combination under the same control, when the consolidated income statement for the current period is being prepared, sales, expense and profit for the period from the beginning of the consolidated period to the year end of the reporting period are included in the consolidated income statement. For addition business combination not under same control during the reporting period, revenue, expense and profit for the period from acquisition date to the year end of the reporting period is included in the consolidated income statement. When disposing subsidiary during the reporting period, sales, expense and profit for the period from the beginning to the disposal date are included in the consolidated income statement.
For any subsidiary acquired by the Company through business combination under the same control, when the consolidated cash flow statement for the current period is being prepared, cash flow for the period from the beginning of the consolidated period to the year end of the reporting period is included in the consolidated cash flow statement. For addition business combination not under same control during the reporting period, cash flow for the period from acquisition date to the year end of the reporting period is included in the consolidated cash flow statement. When disposing subsidiary during the reporting period, cash flow for the period from the beginning to the disposal date is included in the consolidated cash flow statemen t. (3)Principle of consolidation
The consolidated financial statements are based on the financial statements of individual subsidiaries which are included in the consolidation scope and prepared after adjustment of long-term equity investment under equity method and elimination effect of intra-group transaction.
(4) Minority interests
The portion of the equity of the subsidiaries that are not owned by the parent is presented as minority interest in the consolidated balance sheet. The portion of the profit or loss of the subsidiaries that are not owned by the parent is presented as minority interest in the consolidated income statement .
(5) Excess losses
The amount which losses of subsidiaries during the period exceeds the proportion ofminorit’ys obligation is offset minority interest as agreed in thesubsidiaries’ association or agreement and minorities have ability to bear the excess losses. Otherwise, the excess losses are offset equity of the parent company. Profits made afterward by subsidiaries are attributable to equity of the parent company before recovery of excess losses.
8. The standard for recognizing cash equivalent when making cash flow statement
Cash equivalent means the highly liquid, very safe investment which can be easily converted into cash, and the company can hold it for a very short time (3 months from the date of purchase).
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report 9. Method of foreign currency translation
When foreign currency translation occurs, the spot exchange rate on the date of translation (i.e., the middle price of the intraday foreign exchange rate of RMB published byPeople’s Bank of China) shall be converted into RMB for keeping accounts while the occurred foreign currency exchange or the foreign exchange transactions shall be translated according to exchange rate adopted in actual transactions. On the balance sheet date, the foreign currency monetary items and foreign currency non- monetary items shall be treated in accordance with the following provisions:
The foreign currency monetary items shall be translated at the spot exchange rate on balance sheet date, of which happen during the normal business period shall be recorded into gains and losses at the current period; of which happen during organization period shall be recorded into long-term deferred expense. The exchange gains or losses caused by the borrowing belonging to acquiring fixed assets shall be treated by the capitalization of borrowing costs.
Foreign currency non-monetary items shall be translated at spot rate on the date of transaction, not changing the amount of functional currency.
The Company translates the financial statements of its foreign operation in accordance with the following provisions: a) the asset and liability items in the balance sheets shall be translated at a spot exchange rate ruling at the balance sheet date. Among the owner's equity items, except the ones as "retained earnings", others shall be translated at the spot exchange rate ruling at the time when they occurred;. b) The income and expense items in the income statements shall be translated with approximate exchange rate of the sight rate on the transaction occurring date. The foreign exchange difference arisen from the translation of foreign currency financial statements shall be presented separately under the owner's equity in the balance sheet.
10. The recognition and measurement of financial instruments and the transfer of the financial instruments (1) Recognition of the financial assets
When an enterprise becomes a party to a financial instrument, it shall recognize a financial asset or financial liability. Where a financial asset satisfies any of the following requirements, the recognition of it shall be terminated:
①Where the contractual rights for collecting the cash flow of the said financial assets are terminated;
②Where the said financial asset has been transferred and meets the conditions for recognizing the termination of financial assets as provided for in Accounting Standard for Business Enterprises No.23– Transfer of Financial Assets. Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of the financial liability be terminated in all or partly.
(2) The classification, recognition and measurement of financial assets and financial liabilities
The financial assets or financial liabilities got or born by the Company are measured according to the following classifications:①The financial assets or financial liabilities which are measured at their fair value and the variation of which is recorded into the profits and losses of the current period
The interest rate or cash dividend which was gained in the period when the financial assets held by the Company are measured at its fair value and of which the variation is recorded into the profits and losses in the current period shall be recognized as investment income. On balance sheet date, the in change in the fair value of the financial asset or financial liability which is measured at its fair value and of which the variation is recorded into the profits and losses of the current period, shall be recorded into the profits and losses of the current period; When the said financial assets of financial liabilities are on disposal, the difference between the fair value and the amount in initial account shall be recognized as investment income, meanwhile, the profits and losses arising from the change in fair value shall be adjusted.
②The investments which will be held to their maturity
The investments which will be held to their maturity will regard the sum between the gained fair value and the transaction expense thereof as the initially recognized amount. The interest on bonds in payment, of which the mature interest is not drawn, shall be solely recognized as the receivables. The interest revenue which is measured and recognized by the amortized cost and actual interest rate during the period of the investments which will be held to their maturity shall be recorded into investment income. The actual interest rate which is recognized in the period of gaining the investments which will be held to their maturity, shall maintain unchanged within the predicted term of existence or within a shorter applicable term of the said investment which will be held to their maturity. The little difference between actual interest rate and coupon rate of which interest revenue can be measured at the coupon rate shall be recorded into the profits of losses in the current period. When the investments which will be held to their maturity are on disposal, the difference between the obtained price and investment book value shall be recorded into the profits and losses in the current period.
③The accounts receivables
Thecreditor’s right receivable formed during the Company selling commodity outside or offering labor shall be regarded as the initially recognize amount in according with the receivable price stipulated in the contract or agreement signed between the Company and the buyers. When the Company recovers or disposes the accounts receivable, the difference between the obtained price and the book value of the accounts receivable shall be recorded into the profits and losses in the current period.④Financial assets available for sale
The financial assets available for sale will be regarded as the initial recognized amount in according with the sum between the fair value obtained from the said financial assets and the transaction expense thereof. The interest on bonds of which the mature interest rate is not drawn in the payment or the cash dividend which is declared but not extended in the payment shall be solely recognized as the receivables.
The interest rate or cash dividend gained during the period of holding the financial assets available for sale shall be recorded
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report into investment income. On balance sheet date, the financial assets shall be measured through fair value, while the change in fair value is recorded into capital reserves (other capital reserves).
When the financial assets are on disposal, the difference between the obtained price and the book value of the financial assets shall be recorded into investment income, meanwhile, the amount on proposal transferring out from the accumulated amount which is directly recorded intoshareholders’ equity and arises from the variation of the fair value, shall be recorded into investment income.
⑤Other financial liabilities
Other financial liabilities are regarded as the initial recognized amount in accordance with the sum between the fair value and the transaction expense thereof. The Company shall make subsequent measurement on other financial liabilities on the basis of the post-amortization costs.
(3) Main recognition method for the fair value of the financial assets or financial liabilities
① The quotation in the active market shall be used to recognize the fair value of the financial assets or financial liabilities existing in active market.
② If the financial instruments do not exist in the active market, the fair value shall be recognized by value appraisal techniques.③ As for the financial assets initially obtained of produced at source and the financial liabilities assumed, the fair value thereof shall be determined on the basis of the transaction price of the market.
(4) Main impairment test method of the financial assets and impairment provision method
The recognition standard for impairment provision of the financial assets: the Company shall carry out an inspection, on the balance sheet day, on the carrying amount of the financial assets other than those measured at their fair values and of which the variation is recorded into the profits and losses of the current period. Where there is any objective evidence proving that such financial asset has been impaired, an impairment provision shall be made.
The withdrawal method for impairment provision of the financial assets: as for the impairment provision of the financial assets is measured on the basis of post-amortization costs, if the current value of the predicted future cash flow of the financial assets is below the difference in the carrying amount of the said financial asset, the impairment provision of the financial assets shall be made; as for the impairment provision of the financial assets available for sale, if the recoverable amount is below the difference in the carrying amount, the impairment provision shall be made. Where a sellable financial asset is impaired, even if the recognition of the financial asset has not been terminated, the accumulative losses arising from the decrease of the fair value of theowners’ equity which was directly included shall be transferred out and recorded into the profits and losses of the current period.
11. Receivable accounts
(1) Recognition and providing of bad debt provision on individual receivable account with large amount
Basis of recognition or standard
amount of individual account Top 5 of account receivables at year end
with large amount
Impairment test performed individually, bad debt provision will be
provided at the difference of expected cash flow lower than the book
Basis of bad debt provision
value. Without bad debt provision needed provided through individually
test, bad debt provision will be provided at age analysis method .
(2) Recognition and providing basis of bad debt reserves for group of receivable accounts with similar characteristics of credit risks
①Basis of recognition and providing of bad debt provision
Basis of recognition for groups
Group of inner units Accounts receivable due from subsidiaries included in consolidated scope Group by age analysis With similar characteristics of credit risks
Basis of bad debt provision
Group of inner units Individual identified method
Group by age analysis Age analysis method
②Age analysis
Ages Provision rates for Provision rates for
account receivables(%) other receivables(%) Within 1 year, (included, same for the followings) 5% 5%
1-2 years 10% 10%
2-3 years 30% 30%
3-4 years 50% 50%
4-5 years 80% 80%
Over 5 years 100% 100%
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report (3)Other minor amount
For the receivables which are not individually significant, and which individually significant but are not provided provision individually, in accordance with credit risk characteristics, the method of provision for bad debts is aging analysis method. The assessment is made collectively where receivables share similar credit risk characteristics (including those having not been individually assessed as impaired), based on their historical loss experiences, and adjusted by the observable figures reflecting present economic conditions.
12. The classification, pricing and accounting methods for inventories; the recognition standard and withdrawal method of the inventories falling price reserves
(1) Classification of the inventories: purchased materials, stocking materials, material cost difference, entrusted processing materials, unfinished products, finished products, working on project and etc.
(2) The inventory system is on the basis of perpetual inventory method.
(3) The inventories are priced by the historical cost method, so are the raw material and auxiliary material, the sold material cost is carried over on the basis of first-in first-out method; the product cost is accounted through standard cost method, the difference between the standard cost and historical cost is undertaken by the cost of the finished goods in process, while the cost of sales is carried over on the basis of weighted average method; low-value consumption goods will be amortized once when drawn.
(4) As for the inventory write-down provided: each kind of inventories at the end of the report period will be measured at the lower of cost or net realizable value, and a provision for inventory write-down will be established for any difference between the cost and the lower net realizable value. The net realizable value refers to the value minus the predicted expense needed in the process of completing the production and sales from the predicted price for sale and the taxes.
13. The method for measuring long-term equity investment
(1)Confirmation of initial investment cost of long-term equity investment
For the consolidation of enterprises that under the same control, take the book value proportion of theowne’rs equity of consolidated party on consolidation date as initial investment cost of long-term equity investment. The balance of initial investment cost of long-term equity investment and paid cash, transferred non-cash asset, and book value of debt taken, should adjust capital public reserve; and adjust retained earning while the capital public reserveis’nt enough to offset. For the consolidation of enterprises that under different control, take assets paid out in order to acquire the control right of purchased party on purchase date, occurred or undertaken debt and fair value of issued equity securities as initial investment cost of long- term equity investment. The long-term equity investment acquired in other manners except from the enterprise consolidation, should confirm its initial investment cost according to following regulations:
①The long-term equity investment acquired by paying cash, should take purchasing price that actually paid as initial investment cost. Initial investment cost including expense, tax and other necessary payout that directly related with acquiring the long-term equity investment.
②The long-term equity investment acquired by issuing equity securities, should take fair value of the issued equity securities as initial investment cost.
③The long-term equity investment invested by investors, should take the promised value in investment contract or agreement as initial investment cost, excluding those promised in the contract or agreement that the value is not fair.
④. The long-term equity investment acquired by non-monetary asset exchange, its initial investment cost should be confirmed according to Accounting Standards of Business EnterpriseNo.7—Non-monetary Asset Exchange.
⑤. The long-term equity investment acquired by debt reorganization, its initial investment cost should be confirmed according to Accounting StandardsNo.12—Debt Restructuring.
(2). Subsequent measurement of long-term equity investment
①. The following long-term equity investments adopt cost calculation method:
i. The long-term equity investment on the invested units controlled by the Company.
The investment of the Company on the subsidiaries and calculated on cost method and adjusted according to equity method while compiling the consolidated financial statements.
ⅱ.The Companyhasn’t joint control or material influence on invested party, or the long-term investmenthasn’t quoted price on active market so its fair valuecan’t be dependably measured.
②. The long-term equity investment that the Company has together control or material influence on the invested party, adopt equity method to calculated.
14. The fixed assets pricing and depreciation method
(1) Definition of fixed assets
The fixed assets refer to the assets related to production and operation that has over 1 year lifetime.
(2)Classification
The fixed assets include property and plant, machinery and equipment, motor vehicles, electric equipments and other equipments etc.
(3)Pricing of fixed assets
The initial measurement of a fixed asset shall be made at its cost. The cost of a purchased fixed asset is based on the actual expense; the cost invested to a fixed asset by the investor shall be ascertained in accordance with the value as stipulated in the investment contract or agreement; the cost of a self-constructed fixed asset shall be formed by the necessary expenses incurred for bringing the asset to the expected condition for use; the costs of fixed assets acquired through the exchange of non-monetary
assets, recombination of liabilities, merger of enterprises, and financial leasing shall be respectively ascertained in accordance
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report with the Accounting Standard for Business Enterprises No. 7 - Exchange of Non-monetary Assets, the Accounting Standard for Business Enterprises No. 12– Debt Restructuring, the Accounting Standard for Business Enterprises No.21– Leases. (4)Deprecation method of fixed assets
Depreciation is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:
Fixed assets Estimated lifetime Annual depreciation Expected residual
rates value rates
Buildings 20-40 years 2.25-4.85% 3%、5%、10%
Machinery and equipment 10-22 years 4.09-9.7% 3%、5%、10%
Motor vehicles 4-15 years 6-24.25% 3%、5%、10%
Electric equipments 5 years 18-19.4% 3%、5%、10%
Other equipments 10-15 years 6-9.7% 3%、5%、10%
Theasset’s carrying amount is written down immediately to its recoverable amount if theasse’ts carrying amount is greater than its estimated recoverable amount.
15. Construction-in-progress
(1). Construction-in-progress represents buildings and plant under construction and machinery and equipment under installation and testing, and is stated at cost.
(2). This includes cost of construction, plant and equipment and other direct costs plus borrowing costs which include interest charges and exchange differences arising from foreign currency borrowings used to finance these projects during the construction period, to the extent these are regarded as an adjustment to interest costs.
(3). When construction engineering in process has reached the scheduled state in commission, and has proceeded the final accounts of completing, validate all the actual expenses as the fixed asset; if the fixed asset has reached the scheduled state in commission without proceeding the final accounts of completing, validate the cost and adjust the original provisional estimated value according to the actual costs after finishing the final accounts of completing.
16. The pricing and amortizing method of intangible assets
(1) Pricing of the intangible assets
The intangible assets shall be initially measured according to its cost.
① The cost of outsourcing intangible assets shall include the purchase price, relevant taxes and other necessary expenditure directly attributable to intangible assets for the expected purpose.
② The cost of self-developed intangible assets shall include the total expenditures incurred during the period from the time when it meets the following conditions to the time when the expected purposes of use are realized, except that the expenditures which have already been treated prior to the said period shall not be adjusted.
ⅰ. It is feasible technically to finish intangible assets for use or sale;
ⅱ. It is intended to finish and use or sell the intangible assets;
ⅲ. The usefulness of methods for intangible assets to generate economic benefits shall be proved, including being able to prove that there is a potential market for the products manufacturing by applying the intangible assets or there is a potential market for the intangible assets itself or the intangible assets will be used internally.
ⅳ. It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the support of sufficient technologies, financial resources and other resources;
ⅴ. The development expenditures of the intangible assets can be reliably measured.
③ The cost invested into intangible assets by investors shall be determined according to the conventional value in the investment contract or agreement.
④ The costs of intangible assets acquired from non-monetary assets transaction, debt recombination, government subsides, and merger of enterprises shall be determined respectively according to the Accounting Standard for Business Enterprises No. 7 - Non-monetary Assets, Accounting Standard for Business Enterprises No.12– Debt Restructurings, Accounting Standard for Business Enterprises No. 16– Government Grants and Accounting Standard for Business Enterprises No.20– Business Combinations.
(2) Amortization of the intangible assets
①As for the intangible assets with limited service life, which are amortized by straight-line method when it is available for use within the service period, shall be recorded into the current profits and losses. The Company shall, at least at the end of each year, check the service life and the amortization method of intangible assets with limited service life. When the service life and the amortization method of intangible assets are different from those before, the years and method of the amortization shall be changed.
② Intangible assets with uncertain service life may not be amortized. However, the Company shall check the service life of intangible assets with uncertain service life during each accounting period. Where there are evidences to prove the intangible assets have limited service life, it shall be estimated of its service life, and be amortized according to the above method mentioned in (1).
17. Impairment of long-term assets
(1) At the end of accounting period, the Company shall check the long-term assets. There may be an impairment of assets when the following signs occur. The recoverable amount shall be estimated and the asset impairment loss shall be made in light of the
difference that the recoverable amount of assets is less than the book value when the impairment happens. The signs are stated
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report as follows:
① The current market price of assets falls, and its decrease is obviously higher than the expected drop over time or due to the normal use;
②The economic, technological or legal environment in which the enterprise operates, or the market where the assets is situated will have any significant change in the current period or in the near future, which will cause adverse impact on the enterprise;③The market interest rate or any other market investment return rate has risen in the current period, and thus the discount rate of the enterprise for calculating the expected future cash flow of the assets will be affected, which will result in great decline of the recoverable amount of the assets;
④Any evidence shows that the assets have become obsolete or have been damaged substantially;
⑤ The assets have been or will be left unused, or terminated for use, of disposed ahead of schedule;
⑥ Any evidence in the internal report of the enterprise shows that the economic performance of the assets has been or will be lower than the expected performance, for example, the net cash flow created by assets or the operating profit (or loss) realized is lower (higher) than the expected amount;
⑦Other evidence indicates that the impairment of assets has probably occurred.
(2) The evidences to withdraw the impairment provision of long-term investment, fixed assets, construction in process and intangible asset: at the end of the report period, the Company will withdraw the asset impairment provision according to the difference that the recoverable amount of single asset is less than the book value. The recoverable value shall be recognized according to the high one between the net amount of fair value deducting disposal charge and the current value of the expected future cash flow of assets. If the recoverable amount of the single asset cannot be obtained, the recoverable amount shall be recognized on the basis of the asset group to which the asset belongs.
(3) The business reputation formed by merger of enterprises shall be distributed into the related asset group at the end of every year, then the asset group shall have the impairment test to measure the recoverable amount, comparing to the book value, if the recoverable amount of the asset group is less than the book amount, the difference shall first charge against the book value of the business reputation which is apportioned to the asset group; if the book value of the business reputation is not enough to charge against the difference, the uncharged balance shall be distributed by the other assets of the asset group in accordance with the book value.
(4) The recognition of the asset group under impairment test: the related minimum of asset groups that can share the synergetic benefit brought from merger through the prediction of the Company.
(5) The above impairment losses of assets cannot be reversed as soon as they are recognized.
18. Calculation method of loan expenses
(1) The loan expenses occurred to the Company includes loan interest, amortization of reduction price and premium price, assistant expenses and the exchange balance from foreign currency loan. The amortization of the interest, discount or premium and exchange difference from, the specific loan for purchasing fixed assets, if meeting the following three conditions, loan expenses should be capitalized.
① Asset disburses have been occurred.
② The borrowing costs has already incurred.
③ Purchase construction activity for achieving the asset utility condition has started. Other loan interest, amortization of reduction price and premium price and the exchange balance from foreign currency loan should be deemed as expenses of the period while they occur.
(2)Where a general borrowing is used for the acquisition and construction or production of assets eligible for capitalization, the enterprise shall calculate and determine the to-be-capitalized amount of interests on the general borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset disbursements minus the general borrowing by the capitalization rate of the general borrowing used. Auxiliary expense of general loan should be counted into current loss and interest.
(3)To determine capitalizedamount： Capitalized interest for purchasing fixed asset at the end of the current period is the accumulated expense and weight average asset multiplied capitalization rate. And the capitalization rate is determined by followingprinciples：
①Interest of the specialized loan for purchasing fixed assets is the capitalizationrat；e
②Above single specialized loan for purchasing fixed assets, the capitalization rate is the weighted average interest rate of these general borrowings.
(4)Temporary stop of capitalization: If the purchase and building activities for fixed assets stop abnormally and the interruption interval exceeds three months, the capitalization of borrowing cost should be stopped temporarily and deemed as the expenses of current period until the re-start of purchasing and building activities for assets.
(5)Stop of capitalization: When the purchased fixed assets have reached the expected serviceable condition, stop the capitalization of borrowing cost.
19. Calculating method on salary payable to staff
Thestaff’ salary means that the enterprise gives various remunerations for obtaining services providing by the employees or other relevant expenses. It includes:
i.Staff’s salary, bonus, allowance and subsidy;
ii.Staff’s welfare;
iii. Hospitalization insurance, endowment insurance, unemployment insurance, occupational injury insurance and childbirth insurance, etc. social insurances;
iv. Housing public reserve;
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report v. Labor union expenditure and personnel education expense;
vi. Non-monetary welfare;
vii. Compensation for rescinding the labor relationship with employee;
viii. Other expenses related with the services the employee supply.
During the accounting period of an employee' providing services to an enterprise, the Company shall recognize the compensation payable as liabilities. Except for the compensations for the cancellation of the labor relationship with the employee, the enterprise shall, in accordance with beneficiaries of the services offered by the employee, treat the following circumstances respectively:
(1)The compensation for the employee for producing products or providing services shall be recorded as the product costs and service costs;
(2)The compensation for the employee for any on-going construction project or for any intangible asset shall be recorded as the costs of fixed asset or intangible assets;
(3)The compensation for the employee other than those as mentioned in Items (1) and (2) shall be recorded as profit or loss for the current period.
The social insurance such as hospitalization insurance, endowment insurance, unemployment insurance, occupational injury insurance and childbirth insurance; and housing public reserve handed by the company for the staff should be calculated in proportion of total salary according to the relevant regulations of local government during the accounting period of the services the employee supply to the company. Before the expiration of the contract, the company rescinds the labor relationship between the company and the staff or encourage staff accept the suggestion on compensation for accepting reduction at will, at the same time satisfy the following conditions, projected liabilities occurs for confirming rescinding the labor relationship with employee and giving compensation and is reckoned into current gains and losses:
i. The company officially established the plan on rescinding the labor relationship or brings forward the suggestions on reduction at will, and will be implemented;
ii. The company could not singly withdraw rescinding the labor relationship or suggestions of reduction.
20. Measurement method of estimated debts
The obligation pertinent to Contingencies shall be recognized as estimated debts when the following conditions are satisfied simultaneously:
(1) That obligation is a current obligation of the enterprise;
(2) It is likely to cause any economic benefit to flow out of the enterprise as a result of performance of the obligation; (3) The amount of the obligation can be measured in a reliable way.
The Company shall check the book value of the estimated debts on the balance sheet date. If there is any exact evidence indicating that the book value cannot really reflect the current best estimate, the Company will adjust the book value in accordance with the current best estimate.
21. Revenue recognition
(1) The recognition of the revenue from selling goods: the revenue from selling shall be recognized by the following conditions: The significant risks and rewards of ownership of the goods have been transferred to the buyer by the Company; the Company retains neither continuous management right that usually keeps relation with the ownership nor effective control over the sold goods; the relevant amount of revenue can be measured in a reliable way; the relevant revenue and costs of selling goods can be measured in a reliable way.
(2) Giving of asset using rights: Income from giving of assets is recognized when satisfying requirements: related economic benefit flows in very possibly, income can be measured reliably.
1) Amount of interest income is calculated according to the time and actual interest rate of the monetary capital is used by other party.
2) Income of using fee is calculated upon the charge period and calculation provided by the related contract or agreement. (3)Construction contracts
When the result of the construction contract is able to be evaluated reliably at the balance sheet date, the income and cost of the contract are recognized on completion percentage basis.
If the result of the construction contract is not able to be evaluated reliably, but the contract cost maybe recovered, the income is recognized at the cost actually recovered, and the cost of the contract is recognized as contract expenses of the current period when it is occurred.
1) Contract progress is recognized at the ratio of accumulative actual cost on the predicted complete cost.
2) In case the expected total cost is greater than the total income, the expected loss will be recognized as expense of the current period. If the construction is in process, the balance is accounted as inventory impairment provision; if the contract is not executed, the balance is accounted as expected liability.
22. Calculation method of government grants
The government grants related to the proceeds, if those used for compensating the relevant future expenses or losses of the enterprise shall be recognized as deferred income and shall, during the period when the relevant expenses are recognized, recorded in the current profits and losses; or if those used for compensating the relevant expenses or losses that have been incurred to the enterprise shall be directly recorded in the current profits and losses.
The government grants related to the assets shall be recognized as deferred income and shall be distributed averagely in the related asset using period, then counted into current loss and interest. However, government subsidiary according to nominated amount shall be counted into current loss and interest directly.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report 23. Income tax
Where there is difference (temporary difference) between the carrying amounts of the assets or liabilities and its tax base, the deferred income tax assets or the deferred income tax liabilities shall be determined. According to tax law, the deductible loss and tax deduction which can deduct the taxable amount in the subsequent years, regarding as temporary difference, shall be recognized as the corresponding deferred income tax assets. As for the temporary difference arising from the initial recognition of the goodwill, the corresponding deferred income tax liabilities. When the temporary difference is arisen from the initial recognition of the assets or liabilities incurring in the transaction which is not business combination and does not affect the accounting profits or the taxable amount (or the deductible loss), the corresponding deferred income tax assets and deferred income tax liabilities shall not recognized. On the balance sheet date, the deferred income tax assets and deferred income tax liabilities shall be measured at the tax rate applicable to the period during which the assets are expected to be recovered or the liabilities are expected to be settled. The Company shall recognize the deferred income tax assets to the extent of the amount of the taxable income which it is likely to obtain and which can be deducted from the deductible temporary difference, deductible loss and tax deduction.
The deferred income tax liabilities arising from the temporary differences related to the investments of subsidiary companies, associated enterprises and joint enterprises shall be recognized. However, the deferred tax income assets and deferred income tax liabilities shall not recognized which meet the conditions that the Company can control the time of the reverse of temporary differences which are likely to be reversed in the expected future.
24. Earnings per share (EPS)
(1) Basic earnings per share= net profit attributable to common shareholders or net profit attributable to common shareholders after deducting extraordinary items÷ outstanding weighted average of ordinary shares
(2) Diluted earnings pershare= net profit attributable to common shareholders or net profit attributable to common shareholders after deducting extraordinary items÷ outstanding weighted average of ordinary shares after adjusted
(3) If the outstanding or potential common shareholders change during the report period but do not affect the total amount of shareholders equity, the earnings per share should be recalculated.
If the above changes happened during the date of balance sheet and the date of financial statements approval, the earnings per share of the report period should be recalculated.
25. Changes in accounting policies and estimates
(1) There is no change in accounting policies during the financial year.
(2) There is no change in accounting estimate during the financial year.
26. Correction of the accounting errors from previous term
There is no correction of the accounting error from previous term in this report period.
Ⅲ. Taxation
1. Value added tax (“VAT”)
The Group is subject to VAT, which is a tax charged on top of the selling price at a general rate of17% or13% or6% depending on different kinds of products. An input credit is available whereby VAT previously paid on purchases of raw materials and semi-finished products can be used to offset the VAT on sales to determine the net VAT payable.
2. The business tax rate is5% or3% of revenue.
3. Urban maintenance and construction tax is7% of turnover tax payable.
4. Education surtax is3% of turnover tax payable.
5. Local education surtax is2% of turnover tax payable.
6. Income tax
(1)Income tax shall be measured at25% in total.
(2)Income tax of subsidiaries and associates
Taxation on profit of subsidiaries and associates is calculated at the applicable rates in accordance with the relevant tax regulations. Certain subsidiaries and associates enjoy preferential income tax policies with approvals from tax authorities. The applicable income tax rates of major subsidiaries and associates for 2014 are as follows:
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Relationship with Applicable income
Names of the entities the Company tax rate
Dalian Bingshan Group Refrigeration Installation Co., Ltd.
Subsidiary 25%
Dalian Bingshan Air-Conditioning Equipment Co. Ltd.
Subsidiary 25%
Dalian Bingshan Ryosetsu Quick Freezing Equipment Co., Ltd.
Subsidiary 25%
Dalian Bingshan Group Sales Co., Ltd.
Subsidiary 25%
Dalian Bingshan Metal Processing Co. Ltd.
Subsidiary 25%
Dalian Bingshan Guardian Automation Co., Ltd .
Subsidiary 15%
Wuhan New World Refrigeration Industrial Co., Ltd.
Subsidiary 15%
(“WNWRI”)
Ⅳ. Business combination and consolidated financial statements
1. The principal activities of its subsidiaries are shown as below.
As of 30 June 2014 the Company had direct equity interests in the following subsidiaries, all of which were incorporated in the PRC.
In the table below column‘A’ represents‘Other essentialinvestment’, column‘B’ represents‘Amount of minority interest in income statement deducted from minorityinteres’t, and column‘C’ represents‘Balance after deduction of losses of subsidiaries during the period exceeding the proportion of minority shareholders from equity of parentcompan’y.
Subsidiaries acquired by establishment or investmen t
Shareh Voting
Catego Registere Business Registered Consoli Minority No. Names Business scope Investment A olding right B ries d address nature capital dated interest（%） （%）
Dalian Bingshan Group Installation and
Refrigeration Installation RMB testing of RMB
1 Ltd. Dalian Installation 100 100 Yes
Co., Ltd. (“Installation 20,040,000 refrigeration 20,040,000
Company”) equipment
Dalian Bingshan Group Sale of
RMB RMB
2 Sales Co., Ltd. (“Sales Ltd. Dalian Trading refrigeration 90 90 Yes 4,386,890.00 28,174.83 18,000,000 16,200,000
Company”) equipment
Dalian Bingshan Air- Manufacture and
Conditioning Equipment JPY sale of accessories JPY
3 Ltd. Dalian Manufacturing 70 70 Yes 21,255,221.59 Co., Ltd. (“Bingshan 700,000,000 of refrigeration 490,000,000
Air-Conditioning”) equipment
Dalian Bingshan Metal Process and sale
USD USD
4 Processing Co., Ltd. Ltd. Dalian Manufacturing of metal punching 64.25 64.25 Yes 9,228,909.76 2,350,000 1,509,875
(“Metal Processing”) parts
Dalian Bingshan Research, design
Guardian Automation GBP and develop GBP
5 Ltd. Dalian Manufacturing 60 60 Yes 5,897,186.39 Co., Ltd. 210,000 refrigerator 126,000
automation parts
Manufacture and
Dalian Bingshan
USD sale of deep- USD
6 Ryosetsu Quick Freezing Ltd. Dalian Manufacturing 70 70 Yes 1,874,475.19 151,929.86 1,000,000 freezing 700,000
Equipment Co., Ltd.
equipment
Design,
manufacture, sale,
installation and
Wuhan New World
RMB test of screw type RMB
7 Refrigeration Industrial Ltd. Wuhan Manufacturing 51 51 Yes 61,393,369.66 1,010,356.62 100,000,000 refrigeration 17,980,400
Co., Ltd. (“WNWRI”)
compressor and
refrigeration
equipment
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report 2. The principal activities of itssubsidiaries’ subsidiaries are shown as below.
In the table below column‘A’ represents‘Other essentialinvestment’, column‘B’ represents‘Amount of minority interest in income statement deducted from minorityinteres’t, and column‘C’ represents‘Balance after deduction of losses ofsubsidiaries’ subsidiaries during the period exceeding the proportion of minority shareholders from equity of parentcompan’y.Subsidiaries’ subsidiaries acquired by establishment or investment
Shareh Voting
Catego Registere Business Registered Consolidat Minority No. Names Business scope Investment A olding right B ries d address nature capital ed interest（%） （%）
Wuhan New World Design, installation,
Refrigeration Air RMB test and repair of RMB
1 Ltd. Wuhan Installation 5 100 Yes
Conditioner Engineering 8,000,000 refrigeration 400,000
Co., Ltd. equipment
Ningbo Bingshan Installation and repair
Refrigeration Air RMB of refrigeration RMB
2 Ltd. Ningbo Installation 51 Yes 2,108,753.51 61,933.25 Conditioner Engineering 3,000,000 equipment 1,530,000
Co., Ltd.
Dalian Refrigeration Co., Ltd. 2014 Semiannual ReportⅤ. Notes to the consolidated financial statements
1 Monetary fund
Item 30-06-2014 31-12-2013 Cash on hand 27,536.49 99,455.92 Cash in bank 456,538,401.34 493,056,269.04 Others 18,303,578.39 19,747,988.17 Total 474,869,516.22 512,903,713.13 Particular about foreign monetary funds included in the cash in bank:
30-06-2014 31-12-2013
Foreign
Original RMB Original RMB currency Exchange rate Exchange rate
currency equivalent currency equivalent USD 1,970.01 6.1528 12,121.09 13,288.25 6.0969 81,017.14 JPY 320,506.00 0.060815 19,491.57 1,039,091.00 0.057771 60,029.33 EUR 5.60 8.3946 47.01 5.60 8.4189 47.15 GP 75,462.57 10.4978 792,190.97 27,396.57 10.0556 275,488.95 Total 823,850.64 416,582.57 As of Dec. 31, 2013, Dalian Bingshan Ryosetsu Quick Freezing Equipment Co., Ltd., one of the subsidiary companies of the Company, had 1 million yuan of bank deposit frozen. Except it, there were no accounts having pledge, freezing or potential recovery risks.
2 Notes receivable
Item 30-06-2014 31-12-2013 Bank acceptance 37,190,766.80 30,403,946.87 Trade acceptance 12,231,955.76 9,423,084.90 Total 49,422,722.56 39,827,031.77 (1)There is no pledged notes receivable at the end of report period.
(2)The amount of notes receivable due from related companies are RMB 12,331,955.76,24.95% of total notes receivable. Please refer to theⅥ 7 of the notes.
(3) The top five notes receivable endorsed but not matured:
Expiration
No. Company Issued date Amount Notes date
1
COFCO Meat (Suqian) Co., Ltd. 2014.01.24 2014.07.21 2,313,337.95 Bank acceptance 2
Shandong Zhongxing Carbon Co., Ltd. 2014.04.02 2014.10.02 2,000,000.00 Bank acceptance 3
Tangshan Ganglu Iron& Steel Co., Ltd. 2014.05.05 2014.11.05 2,000,000.00 Bank acceptance 4
Hejian Yingzhou Chemical Co., Ltd. 2014.03.13 2014.09.12 1,748,500.00 Bank acceptance 5
Liaoning Huafeng Chemical Co., Ltd. 2014.04.24 2014.10.23 1,638,000.00 Bank acceptance 3 Dividends receivable
Current year Current year Any Items 31-12-2013
addition disposal
30-06-2014 Reasons
impairment Dividends receivable, within 1 year
Included:
33,450.00 33,450.00
Wuhan Steel and Electricity Co., Ltd.
Not due to
Dalian Sanyo Refrigeration Co., Ltd. 3,200,000.00 1,600,000.00 1,600,000.00
payment date No Not due to
Dalian Sanyo Compressor Co., Ltd. 16,000,000.00 16,000,000.00
payment date No Not due to
Guotai Junan Securities Co., Ltd.
1,504,944.75 1,504,944.75
payment date No Total
33,450.00 20,704,944.75 1,633,450.00 19,104,944.75
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report 4 Interest receivable
Items 31-12-2013
Current year addition Current year disposal
30-06-2014 Interest receivable, within 1 year
Included:
3,603,594.85 5,038,021.15 3,443,716.03 5,197,899.97 Term deposit interest
Total
3,603,594.85 5,038,021.15 3,443,716.03 5,197,899.97 5 Accounts receivable
(1) Classified by account nature
30-06-2014 31-12-2013
Balance Provision for doubtful debt Balance Provision for doubtful debt Category
Proportion Proporti Proportion Proportion Amount Amount Amount Amount
(%) on(%) (%) (%) Receivables that are
individually
significant
Receivables not
individually
561,283,037.19 100 106,589,074.64 18.99 468,499,323.02 100 98,786,576.32 21.09 significant but with
high risk in groups
Other insignificant
items
Total 561,283,037.19 100 106,589,074.64 18.99 468,499,323.02 100 98,786,576.32 21.09 The aging of accounts receivable and related provisions for bad debts
30-06-2014 31-12-2013
Account ages Provision for bad Provision for bad Amount Proportion(%) Amount Proportion(%)
debts debts Within1 year 322,948,111.47 57.54 16,147,405.57 243,385,821.76 51.95 12,169,291.10 1 to 2 years 105,468,259.92 18.79 10,546,825.99 98,061,850.41 20.93 9,806,185.04 2 to 3 years 57,071,615.19 10.17 17,121,484.55 50,264,089.07 10.73 15,079,226.72 3 to 4 years 16,008,375.37 2.85 8,004,187.69 19,255,750.93 4.11 9,627,875.48 4 to 5 years 25,087,522.01 4.47 20,070,017.61 27,139,064.37 5.79 21,711,251.50 Over 5 years 34,699,153.23 6.18 34,699,153.23 30,392,746.48 6.49 30,392,746.48 Total 561,283,037.19 100 106,589,074.64 468,499,323.02 100 98,786,576.32 (2) The company had no receivable account written off before this report period, but was recovered in this period. (3) During the report period, there is no receivable being recovered by debts reconstruction.
(4)The write-off of accounts receivable
||||||
|-|-|-|-|-|
|Name of company|The nature of accounts receivable|Written off|Reason|Related party transaction|
|Clients (36)|Sale of goods|3,063,426.02|①|No|

①Description of writing off: The Company's receivables written-off in this reporting period were mainly those treated by the company for long-overdue receivables mainly because some account has been in arrears too long but the amount was relatively less, and some account was unreceivable due to the customer's refusing to pay with the excuse of generation of the field expenses.
(5) No arrearage from the shareholders holding over5% (including5%) of the equity of the Company existed in the balance of accounts receivable.
(6) The first five arrearage entities listed in the balance of accounts receivable
The relationship with Proportion Company Amount Age
the Company (%) Beijing Huashang Bingshan Serial
Affiliated 19,969,094.38 Less than 1 year 3.56 Refrigeration Equipment Co., Ltd.
Dalian Xinghai Bay Development&
Non-affiliated 11,242,693.00 4 to 5 years 2.00 Construction Management Center
Shenyang Yurun Agricultural Products
Non-affiliated 11,213,000.00 Less than 1 year 2.00
Global Purchasing Center
COFCO Meat (Suqian) Co., Ltd. Non-affiliated 10,136,575.85 1 to 2 years 1.81
FAW Foundry Co., Ltd. Non-affiliated 8,390,284.31 Less than 1 year 1.49
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report (7) The amount of accounts receivable due from related companies are RMB 34,015,659.89,6.06% of total accounts receivable. Please refer to theⅥ 7 of the notes.
(8) There is no accounts receivable being ended reorganization or being negotiated during the report period.
6 Other accounts receivable
(1) Classified by account nature
30-06-2014 31-12-2013
Balance Provision for doubtful debt Balance Provision for doubtful debt Item
Proportion Proportion Proportion Proportion Amount Amount Amount Amount(%) (%) (%) (%) Receivables that are
individually significant
Receivables not
individually significant but 41,134,037.52 100 8,139,919.24 19.79 31,792,976.68 100 7,278,236.61 22.89 with high risk in groups
Other insignificant items
Total 41,134,037.52 100 8,139,919.24 19.79 31,792,976.68 100 7,278,236.61 22.89 The aging of other accounts receivable and related provisions for bad debts
30-06-2014 31-12-2013
Account age Provision for bad Provision for bad Amount Proportion(%) Amount Proportion(%)
debts debts Within1year 27,574,373.25 67.04 1,378,718.67 18,000,224.64 56.62 900,011.22 1 to 2 years 4,322,288.36 10.51 432,228.84 4,431,452.84 13.94 443,145.28 2 to 3 years 2,975,028.18 7.23 892,508.45 2,834,825.78 8.92 850,447.74 3 to 4 years 1,228,394.93 2.99 614,197.47 2,032,201.80 6.39 1,016,100.91 4 to 5 years 1,058,434.90 2.57 846,747.91 2,128,700.82 6.70 1,702,960.66 Over 5 years 3,975,517.90 9.66 3,975,517.90 2,365,570.80 7.43 2,365,570.80 Total 41,134,037.52 100 8,139,919.24 31,792,976.68 100 7,278,236.61 (2) There is no amount of provision for bad debts written back during the report period.
(3) During the report period, there is no other account receivable being recovered by debts reconstruction.
(4) There is no amount of other accounts receivable written-off during the report period.
(5) There is no balance of other accounts receivable due from the shareholders holding over5% (including5%) of the equity of the Company.
(6) The first five arrearage entities of other accounts receivable
The relationship
Company Amount Age Proportion with the Company
Dalian Land Reserve Center Non-affiliated 10,000,000.00 Less than 1 year 24.31 Baicheng Longdan Dairy Co., Ltd. Non-affiliated 1,004,519.00 2-3 years 2.44 Tianjin Construction Team Communication Service Center Non-affiliated 1,000,000.00 Over 5 years 2.43 Wuhan Jinqun Refrigeration Equipment Installation Co., Ltd. Non-affiliated 736,110.00 1-2 years 1.79 Hebei Jinwei New Building Materials Co., Ltd. Hubei Branch Non-affiliated 653,800.00 2-3 years 1.59 (7) There is no amount of other accounts receivable due from related companies during the report period.
(8) There is no other accounts receivable being ended reorganization or being negotiated during the report period. 7 Accounts paid in advance
(1) The aging of accounts paid in advance
30-06-2014 31-12-2013
Account ages
Amount Proportion(%) Amount Proportion(%) Within1 year 25,116,718.23 71.29 24,786,019.32 95.21 1 to 2 years 8,927,972.41 25.34 64,112.00 0.25 2 to 3 years 107,863.00 0.30 1,178,768.00 4.53 Over 3 years 1,080,768.00 3.07 2,487.00 0.01 Total 35,233,321.64 100 26,031,386.32 100 (2) The first five arrearage entities listed in the balance of accounts paid in advance
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report The relationship
Company Amount Age Reasons with the Company
Binzhou Shanfu Refrigeration Engineering
Non-affiliated 3,918,000.00 Less than 1 year
Prepayment for goods Co., Ltd.
Dalian Tony Info.& Tech. Co., Ltd. Non-affiliated 2,499,000.00 Less than 1 year Prepayment for goods Wuhan Jinqun Refrigeration Equipment
Non-affiliated 1,798,500.00 Less than 1 year Prepayment for goods Installation Co., Ltd.
Dalian Mingxin Refrigerating& Heat
Non-affiliated 1,491,774.15 Less than 1 year Prepayment for goods Preserving Materials Co., Ltd.
Liaoning Electric Power Supply Co., Ltd.
Non-affiliated 1,489,584.73 Less than 1 year Prepayment for goods Dalian Branch
Total 11,196,858.88
(3) No arrearage from the shareholders holding over5% (including5%) of the equity of the Company existed in the balance of accounts paid in advance.
(4) There is no amount of accounts paid in advance due from related companies during the report period.
8 Inventories
(1) Cost
30-06-2014 31-12-2013
Items
Provision for Provision for
Book balance impairment of Book value Book balance impairment of Book value inventories inventories
Raw materials 51,756,874.40 8,125,074.35 43,631,800.05 47,474,131.66 8,311,074.35 39,163,057.31 Materials on Consignment
6,695,410.48 6,695,410.48 8,211,392.69 8,211,392.69 for further processing
Low-value consumptions 134,070.69 134,070.69 128,405.67 128,405.67 Work-in-progress 54,968,148.77 2,148,729.50 52,819,419.27 91,806,242.88 2,148,729.50 89,657,513.38 Self-manufactured semi-
38,497,502.24 4,024,041.73 34,473,460.51 33,279,512.91 4,024,041.73 29,255,471.18 finished products
Finished goods 114,919,257.38 3,291,858.85 111,627,398.53 135,195,482.98 3,291,858.85 131,903,624.13 Constructing projects 22,282,767.29 22,282,767.29 27,211,543.05 27,211,543.05 Total 289,254,031.25 17,589,704.43 271,664,326.82 343,306,711.84 17,775,704.43 325,531,007.41 (2) Provision for impairment of inventories
Current year
Current year
Item 31-12-2013
disposal
30-06-2014 addition
Reversal Written-off
Finished goods 3,291,858.85 3,291,858.85 Raw materials 8,311,074.35 186,000.00 8,125,074.35 Work-in-progress 2,148,729.50 2,148,729.50 Self-manufactured semi-
finished products
4,024,041.73 4,024,041.73 Total 17,775,704.43 186,000.00 17,589,704.43 (3) Details of provision for impairment of inventories
Proportion of reversal of Reasons for
Item
The bases of provision for impairment of inventories
reversal
provision for impairment of inventories to closing balance Finished goods The book balance is higher than recoverable amount.
Work-in-progress The book balance is higher than recoverable amount.
Self-manufactured semi-
finished products The book balance is higher than recoverable amount.
Raw materials The book balance is higher than recoverable amount.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report 9 Other current assets
Item 30-06-2014 31-12-2013
Prepaid income tax 73,111.98 Insurance premiums to be amortized 2,080,367.89 922,487.82 Total 2,080,367.89 995,599.8010、Investment to Associates and Joint ventures
Registe Legal Shareh Voting 30-06-2014
Name Categories red represent
Business Registered
olding right
30-06-2014 30-06-2014
Total net
Total Income of Net profit of No. nature capital Total assets Total liabilities 2014.01-06 2014.01-06 address person （%）（%） assets
ⅠAssociates
Dalian Bingshan
–P&A
1
R De ec vr ee la ot pio mn
e nt
jS oi in no
t
- vf eo nre tuig rn
e Dalian Yang Bin Installation
25U 0S ,0D
0 0 50% 50%
16,491,413.67 9,064,910.33 7,426,503.34 7,446,769.63 478,196.58 Engineering Co.,
Ltd.
ⅡJoint venture
Dalian Bingshan
1
E Tn rag di in ne ge r Cin og
.,
&
L td.
Ltd
Dalian Fan Wen Trading
30,R 00M 0B
,0 00 24% 24%
108,586,712.49 52,792,551.98 55,794,160.51 94,905,583.27 4,052,156.68 Dalian Sanyo
2
R Ce of .,r i Lg te dra
.
tion
jS oi in no
t
- vf eo nre tuig rn
e Dalian Ji Zhijian
Man riu nf ga ctu 3,450J ,P 0Y
00 ,000 40% 40%
719,635,460.19 344,974,230.56 374,661,229.63 452,599,249.63 5,318,421.82 Dalian Honjo
3
C Lth de .m ical Co.,
jS oi in no
t
- vf eo nre tuig rn
e Dalian
YH uko in nj oo
v i
Man riu nf ga ctu 260,J 0P 0Y
0, 000 30% 30%
35,994,992.03 6,123,980.08 29,871,011.95 14,364,949.72 2,534,839.18 Panasonic Cold-
4
c Ch oa .i ,n
L
( tD
d
alian)
jS oi in no
t
- vf eo nre tuig rn
e Dalian Ji Zhijian
Man riu nf ga ctu 4,650J ,P 0Y
00 ,000 40% 40%
1,494,004,793.57 977,651,698.55 516,353,095.02 939,928,952.97 8,174,652.15 Keinin-Grand
Ocean Thermal
5
T (Dec ah lin ano )lo Cg oy
. ,
jS oi in no
t
- vf eo nre tuig rn
e Dalian Takumi Ishii
Man riu nf ga ctu 15,U 11S 7D
,8 90 20% 20%
314,228,047.51 135,410,472.01 178,817,575.50 286,306,907.58 20,800,431.70 Ltd.
Dalian Sanyo
6
C Lto dm
.
pressor Co.,
jS oi in no
t
- vf eo nre tuig rn
e Dalian Zhao Zihai
Man riu nf ga ctu 6,200J ,P 0Y
00 ,000 40% 40%
2,079,595,311.25
1,063,851,29 02 9. 1,015,744,01 19 6. 1,255,325,74 17 0. 92,039,692.56 Dalian Sanyo
7
M Ele ecic ta
ro nics Co.,
jS oi in no
t
- vf eo nre tuig rn
e Dalian Wang Jian
Man riu nf ga ctu 400,J 0P 0Y
0, 000 30% 30%
101,488,951.55 21,562,782.47 79,926,169.08 64,105,520.36 2,069,021.09 Ltd.
Beijing
Huashang
Bingshan
8
R Ae irf -r cig oe nr da it ti io on
n
ia nn gd
jS oi in no
t
- vf eo nre tuig rn
e Beijing Yang Bin Trading
1,0R 0M 0,B
00 0 49% 49%
21,022,915.56 18,393,938.49 2,628,977.07 13,523,452.83 72,802.11 Machinery Co.,
Ltd.
Dalian Fuji
Bingshan
9
V Me an cd hi in ng
e Co.,
jS oi in no
t
- vf eo nre tuig rn
e Dalian
HidA es ea hh ii
k o
Man riu nf ga ctu 1,800J ,P 0Y
00 ,000 49% 49%
297,178,125.40 119,499,256.11 177,678,869.29 194,187,243.81 20,008,126.71 Ltd.
Dalian Sanyo
10
H Reig frh i- gE ef rf ai tc ioie nn t jS oi in no
t
- vf eo nre tuig rn
e Dalian Wang Jian
Man riu nf ga ctu 80,R 00M 0B
,0 00 25% 25%
116,511,857.32 27,369,600.10 89,142,257.22 62,793,770.84 1,026,999.17 System Co., Ltd.
MHI Bingshan
11
R (De afr lii ag ne )r a t Cio on
.,
jS oi in no
t
- vf eo nre tuig rn
e Dalian Ji Zhijian
Man riu nf ga ctu 80,R 00M 0B
,0 00 45% 45%
46,944,942.96 248,859.31 46,696,083.65 -3,303,916.35 Ltd.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report11、Long-term equity investments
Provision
Shareh Voting
for Cash Calculatio
Initial cost
Beginning
Changes Ending balance olding right
Provision for impairmen dividend of No. Name n method balance impairment t of the the current（%）（%）
current period period
Dalian Bingshan–
P&A Recreation
Equity
1
Development
method 1,034,675.00 3,474,153.38
215,188.46
3,689,341.84 50 50
Engineering Co.,
Ltd.
Dalian Jiale
Equity
2
Vending Machine
method 18,750,000.00
14,333,183.59 -14,333,183.59
50 50
Operation Co., Ltd.
Dalian Bingshan
Equity
3
Engineering&
method 1,200,000.00
13,138,080.92 252,517.60 13,390,598.52
24 24
720,000.00 Trading Co., Ltd.
Dalian Sanyo
Equity
4
Refrigeration Co.,
method 85,416,929.20
150,937,123.13 -1,391,736.58 149,545,386.55
40 40
3,200,000.00 Ltd.
Dalian Honjo Equity
5 Chemical Co., Ltd. method 3,908,911.50
9,452,973.22 -537,296.75 8,915,676.47
30 30
1,252,121.40 Panasonic Cold-
Equity
6
chain (Dalian)
method 134,658,753.75
215,712,008.04 -4,991,728.01 210,720,280.03
40 40
8,000,000.00 Co., Ltd
Keinin-Grand
Ocean Thermal Equity
7 Technology method 24,402,234.58
40,403,428.77 -4,639,913.66 35,763,515.11
20 20
8,800,000.00 (Dalian) Co., Ltd.
Dalian Sanyo
Equity
8
Compressor Co.,
method 176,953,841.88
385,481,730.63 17,870,606.86 403,352,337.49
40 40
16,000,000.00 Ltd
Dalian Sanyo
Equity
9
Meica Electronics
method 9,649,590.00
23,373,393.16 558,635.69 23,932,028.85
30 30
Co., Ltd.
MHI Bingshan
Equity
10
Refrigeration
method 22,500,000.00
22,500,000.00 -1,486,762.36 21,013,237.64
45 45
(Dalian) Co., Ltd.
Beijing Huashang
Bingshan
Refrigeration and Equity
11 Air-conditioning method 490,000.00
1,175,056.73 35,673.03 1,210,729.76
49 49
Machinery Co.,
Ltd.
Dalian Fuji
Equity
12
Bingshan Vending
method 66,416,364.00
77,258,663.86 9,803,982.09 87,062,645.95
49 49
Machine Co., Ltd.
Daliian Sanyo
High-Efficient Equity
13 Refrigeration method 20,000,000.00
22,028,814.51 236,209.81 22,265,024.32
25 25
System Co., Ltd.
Dalian Sanyo
Equity
14
Home Appliance
method 19,666,212.00
11,694,400.00 11,694,400.00
10.91 10.91 11,694,400.00
Co., Ltd.
Zibo Electric
Cost
15
Traction Machine
method 849,000.00
849,000.00 849,000.00
1.52 1.52 849,000.00
Group Co., Ltd.
Liaoning Mec Cost
16 Group Co., Ltd. method 1,020,000.00
1,020,000.00 1,020,000.00
3.57 3.57
250,000.00 Guotai Junan Cost
17 Securities Co., Ltd. method 30,098,895.00 30,098,895.00 30,098,895.00 0.49 0.49 1,582,164.89 1,504,944.75 Guotai Junan
Investment Cost
18 Management Co., method 3,057,316.00
3,057,316.00 3,057,316.00
0.22 0.22 2,688,605.91
Ltd.
Thermo King
Container
Cost
19
Temperature
method 11,207,806.00
11,207,806.00 11,207,806.00
17.8 17.8
Control (Suzhou)
Co., Ltd.
Liaoning
Cost
20
Enterprises United
method 105,000.00
105,000.00 105,000.00
4.2 4.2 105,000.00
Industry Company
Dalian Bingshan
Cost
21
Group Materials
method 250,000.00
250,000.00 250,000.00
5 5
Trading Co., Ltd.
Wuhan Steel and
22
Electricity Co.,
mC eto hs ot
d 1,315,142.50
1,315,142.50 1,315,142.50
0.056 0.056
Ltd.
Total
632,950,671.41 1,038,866,169.44 1,592,192.59 1,040,458,362.03
16,919,170.80 39,727,066.15 Note 1: On Oct. 22, 2013, the 6th meeting of the 6th Board of Directors of the Company adopted the resolution that the Company and Fuji Motor Co., Ltd. transferred50% of their respective shareholding in Dalian Jiale Vending Machine Operation Co., Ltd. to the independent third party -- Shanghai Miyuan Beverage Co., Ltd., the base date for transfer was Jun. 30, 2013, and the amount for the Company's transfer was 15 million yuan. In Jan. 2014, the Company received the said transfer amount paid by Shanghai Miyuan Beverage Co., Ltd. and the transfer was completed.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report 12 Fixed assets
(1) Fixed assets details
Current year Current year
31-12-2013 30-06-2014 Item
addition disposal
1. Original value 913,961,088.84 3,271,705.69 4,837,322.31 912,395,472.22 Including: Buildings 324,921,042.20 303,500.00 325,224,542.20 Machinery 546,287,932.41 1,563,269.30 2,280,708.75 545,570,492.96 Vehicles 26,339,639.82 789,017.33 873,106.70 26,255,550.45 Other equipments 16,412,474.41 615,919.06 1,683,506.86 15,344,886.61 2. Accumulated depreciation 515,881,978.89 18,243,165.48 4,069,011.34 530,056,133.03 Including: Buildings 114,110,616.94 3,894,461.94 118,005,078.88 Machinery 374,910,428.66 12,702,173.32 2,144,789.83 385,467,812.15 Vehicles 14,176,230.80 1,109,798.65 732,970.67 14,553,058.780 Other Equipments 12,684,702.49 536,731.57 1,191,250.84 12,030,183.22 3.Net book value 398,079,109.95 382,339,339.19 Including: Buildings 210,810,425.26 207,219,463.32 Machinery 171,377,503.75 160,102,680.81 Vehicles 12,163,409.02 11,702,491.67 Other Equipments 3,727,771.92 3,314,703.39 4.Provision for impairment 2,812,966.25 2,292,372.99 Including: Buildings
Machinery 2,812,966.25 2,292,372.99 Vehicles
Other Equipments
5.Fixed assets net 395,266,143.70 380,046,966.20 Including: Buildings 210,810,425.26 207,219,463.32 Machinery 168,564,537.50 157,810,307.82 Vehicles 12,163,409.02 11,702,491.67 Other Equipments 3,727,771.92 3,314,703.39 (2) All the accumulated depreciation increased during the current period was depreciation of the current period.
(3) The original value of fixed assets RMB 1,470,867.17 transferred from construction in progress during the report period. (4) There were no idle fixed assets during the current period.
(5) There were no leased fixed assets during the current period.
(6) Wuhan New World Refrigeration Industrial Co. Ltd. borrowed RMB 40,000,000 from bank and mortgaged with its building and land use rights.
(7) Fixed assets withoutowner’s certificates
Items Reason Expected time The casting workshop was moved to a new factory building and office. Handling
Workshop of Dalian Bingshan Air-Conditioning Equipment Co. Ltd. Less some documents
Departments from debts reconstruction Less some documents
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report 13 Construction in progress
Name of Current year Current year Percentage of Budget 31-12-2013 30-06-2014 Sources of funds completion projects addition decrease
Buildings 90,000,000.00 66,977,556.15 16,043,238.14 83,020,794.29 others
92% Machinery 1,485,266.93 531,480.00 1,470,867.17 545,879.76 others
Total 68,462,823.08 16,574,718.14 1,470,867.17 83,566,674.05
(1) No interests capitalized during the current period.
(2) The amount of construction in progress RMB 1,470,867.17 was transferred to fixed assets.
14 Intangible assets
(1) Intangible assets details
Current year Current year
Item 31-12-2013 30-06-2014
addition disposal
1.Original cost 183,991,724.45 1,853,800.00 185,845,524.45 Land use rights 176,504,398.53 176,504,398.53 Non-patented technology 515,224.41 515,224.41 Others 6,972,101.51 1,853,800.00 8,825,901.51 2.Amortization 28,801,493.94 2,103,901.84 30,905,395.78 Land use rights 25,336,568.19 1,765,042.92 27,101,611.11 Non-patented technology 515,224.41 515,224.41 Others 2,949,701.34 338,858.92 3,288,560.26 3. Net book value 155,190,230.51 154,940,128.67 Land use rights 151,167,830.34 149,402,787.42 Non-patented technology
Others 4,022,400.17 5,537,341.25 4.Provision for impairment
Land use rights
Non-patented technology
Others
5.Net value 155,190,230.51 154,940,128.67 Land use rights 151,167,830.34 149,402,787.42 Non-patented technology
Others 4,022,400.17 5,537,341.25 (2) RMB 2,103,901.84 yuan of intangible assets was amortized in this period.
(3) Wuhan New World Refrigeration Industrial Co. Ltd. borrowed RMB 40,000,000 from bank and mortgaged with its building and land use rights.
15 Long-term expense to be apportioned
Item Current year Current year
31-12-2013 30-06-2014 addition disposal
Employee dormitory use right
2,843,040.30 69,239.16 2,773,801.14 Decoration expenses
927,007.46 491,637.09 265,392.84 1,153,251.71 Inspection& Service expense
131,701.95 24,253.66 107,448.29 Total
3,901,749.71 491,637.09 358,885.66 4,034,501.14 16 Deferred tax assets
(1) Deferred tax assets conformed
Item 30-06-2014 31-12-2013 Provision for bad debts 16,711,801.35 14,350,578.95 Provision for obsolete inventory 4,368,698.69 4,415,198.69 Impairment provision of fixed assets 573,093.24 703,241.56 Total 21,653,593.28 19,469,019.20
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report (2) Deferred tax assets not conformed
Item 30-06-2014 31-12-2013 Provision for the impairment of long-
16,919,170.80 16,919,170.80 term equity investments
Provision for bad debts 40,813,556.82 39,739,180.37 Total 57,732,727.62 56,658,351.17 (3)Temporary differences
Items Temporary differences
Provision for impairment 96,860,940.50
Total 96,860,940.50
17 Provision for impairment
Current year
Current year
Items 31-12-2013 disposal 30-06-2014 addition
Reversal Written off
1.Bad debts provision 106,064,812.93 11,727,606.97 3,063,426.02 114,728,993.88 2.Provision for obsolete inventories 17,775,704.43 186,000.00 17,589,704.43 3.Provision for the impairment of financial assets available
for sale
4.Provision for the impairment of held to maturity
investments
5.Provision for the impairment of long-term equity
16,919,170.80 16,919,170.80 investments
6.Provision for the impairment of investing property
7.Provision for the impairment of fixed assets 2,812,966.25 520,593.26 2,292,372.99 8.Provision for the impairment of construction materials
9.Provision for the impairment of construction in progress
10.Provision for the impairment of bearer biological assets
11.Provision for the impairment of oil assets
12.Provision for the impairment of intangible assets
13.Provision for the impairment of goodwill
14.Provision for the impairment of other assets
Total
143,572,654.41 11,727,606.97 3,770,019.28 151,530,242.10 18 Short-term loans
Terms of borrowing 30-06-2014 31-12-2013
Credit loan
Mortgage loan 40,000,000.00 37,500,000.00 Total 40,000,000.00 37,500,000.00 (1) Wuhan New World Refrigeration Industrial Co. Ltd. borrowed short-term loan RMB 40,000,000 from bank and mortgaged with its building and land use rights.
(2)There was no short-term loan due to pay at the end of the report period .
19 Notes payable
Item 30-06-2014 31-12-2013
Bank acceptance notes 76,464,146.94 47,070,444.13
Trade acceptance notes 13,497,800.69 33,223,071.04
Total 89,961,947.63 80,293,515.17
(1) The amount of notes payable due within the next report period is RMB 89,961,947.63.
(2) The amount of notes payable due to related companies is RMB 19,635,005.39,21.83% of total notes payable. Please refer to theⅥ 7 of the notes.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report 20 Accounts payable
30-06-2014 31-12-2013
Ages
Amount Amount
Within1 year 484,263,733.67 413,250,580.87
1 to 2 years 36,815,897.35 25,101,084.59
2 to 3 years 8,642,632.89 10,862,165.41
3 to 4 years 6,498,145.38 10,007,609.12
4 to 5 years 5,329,763.93 1,145,059.67
Over 5 years 4,968,077.20 4,496,765.35
Total 546,518,250.42 464,863,265.01
(1) No amount due to the shareholders holding over5% (including5%) of the equity of the Company existed in the balance of accounts payable at the end of current period.
(2) The amount of accounts payable due to related companies is RMB 30,979,340.39,5.67% of total accounts payable. Please refer to theⅥ 7 of the notes.
21 Accounts received in advance
30-06-2014 31-12-2013
Ages
Amount Amount
Within1 year 79,977,214.39 147,136,295.71
1 to 2 years 36,043,194.68 16,796,570.29
2 to 3 years 11,085,108.88 5,369,183.13
3 to 4 years 3,846,041.98 4,955,873.83
4 to 5 years 4,606,544.18 1,815,734.25
Over 5 years 2,800,524.83 1,164,731.78
Total 138,358,628.94 177,238,388.99
(1) There were no accounts due to the shareholders holding over5% (including5%) of the equity of the Company existed in the balance of accounts received in advance at the end of current period.
(2) The amount of accounts received in advance due to related companies is RMB 304,483.00,0.22% of total accounts received in advance. Please refer to theⅥ 7 of the notes.
(3) Most of the amount of accounts received in advance aged more than one year was unsettled contract payments on construction in progress.
22Employee’s compensation payable
Current year Current year
Item 31-12-2013 30-06-2014
addition reduction
1.Wages and salaries, bonuses,
24,272,411.57 95,296,688.79 111,698,973.44 7,870,126.92 allowances and subsidies
2.Staff welfare
24,712,862.37 3,605,446.65 3,445,778.78 24,872,530.24 3.Social insurance 1,639,866.75 22,994,845.08 23,782,179.43 852,532.40Including：①Medical insurance 5,710,521.25 5,710,521.25
②Retirement pension 13,805,176.60 13,805,176.60
③Unemployment insurance 953,910.79 953,910.79
④injury insurance premium 429,296.63 429,296.63
⑤Pregnancy insurance 173,758.15 173,758.15
⑥Housing subsidies 1,639,866.75 787,334.35 852,532.40⑦Heating subsidies 1,922,181.66 1,922,181.66
4. Housing fund 2,044,853.42 13,501,429.37 13,336,111.25 2,210,171.54 5.Labor union fee and employee
910,036.91 2,279,596.61 2,187,706.42 1,001,927.10 education fee
6.Non-currency welfare 211,281.00 211,281.00
7. Redemption for terminations of labor
contract
8.Other
Total
53,580,031.02 137,889,287.50 154,662,030.32 36,807,288.20 There was no amount delay paid at the end of the report period.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report 23 Taxes payable
Item 30-06-2014 31-12-2013
Value-added tax 12,913,539.54 2,725,964.48
Business tax 1,775,498.10 1,890,363.25
City maintenance and construction tax 1,081,325.99 531,714.02
Enterprise income tax 4,232,256.68 14,915,676.15
Individual income tax 4,388,372.34 717,852.43
Stamp duty 46,292.66 44,629.25
Extra-charges for education 449,445.82 175,079.78
Extra-charges for local education 293,817.40 110,906.70
Water project fund/River route maintenance fee 24,477.74 547,873.15
Safeguard fund for disables 528.00 420.00
Embankment tax 28,920.27
Land tax 217,274.88 434,549.74
Real estate tax 373,581.64
Total 25,422,829.15 22,497,530.86
24 Dividend payable
Name of investors
30-06-2014 31-12-2013
Legal person shares 1,433,156.00 2,053,911.36 Total 1,433,156.00 2,053,911.36 The amount of dividend payable at the end of the report perioddidn’t include dividend payable to shareholders which hold over5% (including5%) of the equity of the Company.
25 Other accounts payable
30-06-2014 31-12-2013
Ages
Amount Amount
Within1 year 22,908,342.92 29,586,977.60
1 to 2 years 2,428,714.54 3,640,918.43
2 to 3 years 1,607,092.39 2,003,306.90
3 to 4 years 2,000,464.90 2,981,861.66
4 to 5 years 2,974,240.66 2,416,554.17
Over 5 years 13,683,792.44 11,299,745.27
Total 45,602,647.85 51,929,364.03
(1) There were RMB 11,102,457.52 due to the shareholders holding over5% (including5%) of the equity of theCompan—y Dalian Bingshan Group Co., Ltd., and mainly because subsidiary company borrowed for moving to new location. (2) The amount of other accounts payable due to related companies is RMB 11,251,811.07,24.67% of total other accounts payable. Please refer to theⅥ 7 of the notes.
(3) Most of the amount of other accounts payable aged more than one year was owed to Dalian Bingshan Group Co., Ltd. 26 Other non-current liabilities—Deferred income
Item 30-06-2014 31-12-2013 Contribution to subsidiary company relocation 557,000.00 1,114,000.00 Subsidy fund for highly effective heat pump and related system 292,550.50 585,101.00 Total 849,550.50 1,699,101.00 For the above deferred incomes, it should be carried forward in 2014 as the schedule for transferring it into the profit statemen t.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report 27 Other non-current liabilities—Deferred income
Item 30-06-2014 31-12-2013 Subsidy fund for highly effective heat pump and related system 4,289,394.00 4,289,394.00 Contribution to subsidiary company relocation 46,788,000.00 46,788,000.00 Big capacity of sea water pre-freeze project of Project 863 12,114,960.35 15,549,945.60 Total
63,192,354.35 66,627,339.60 The balance of above itemsdidn’t meet the conditions being converted to income at the end of the report period.
28 Share capitals
Issuance of new Shares converted
Item 31-12-2013 Others 30-06-2014 shares from reserve
I. Non-circulating share capital
with restricted trade conditions
1. State-owned shares
2. Shares held by domestic legal
persons
3. Other domestic shares 19,221,526.00 19,221,526.00 Including: Shares held by
19,213,921.00 19,213,921.00 domestic legal persons
Including: Shares held by
7,605.00 7,605.00 domestic natural person
II. Circulating share capital
1. Domestically listed ordinary
215,793,449.00 215,793,449.00 shares (A-share)
2. Domestically listed ordinary
115,000,000.00 115,000,000.00 shares (B-share)
III. Total 350,014,975.00 350,014,975.00 29 Capital surpluses
Current year Current year
Item 31-12-2013 30-06-2014 addition reduction
Capital premium 515,188,976.98 515,188,976.98 Other capital surplus 69,672,306.23 15,000.00 69,657,306.23 Total 584,861,283.21 15,000.00 584,846,283.21 30 Surplus reserves
Current year Current year
Item 31-12-2013 30-06-2014 addition reduction
statutory surplus reserves 261,485,947.00 261,485,947.00 free surplus reserves 244,047,118.25 29,065,684.79 273,112,803.04 Total 505,533,065.25 29,065,684.79 534,598,750.04 The increase of the surplus reserves was because the other reserved capital were withdrawn on the basis of20% of theCompany’s net profit of 2013 according to the resolution of theShareholders’ General Meeting of year 2013.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report 31 Retained earnings
Items Amount Extraction or allocation proportion Retained earnings at the end of prior year 466,608,867.00
Add: Changes in accounting policies
At beginning of the year after retrospective adjustment 466,608,867.00
Add: Net profit 66,477,633.28
Less: Appropriation of statutory surplus reserves
20% of net profit of the Company of Appropriation of free surplus reserves 29,065,684.79
year 2013
Appropriation ofemployee’s welfare and bonus fund in
119,047.87
foreign invested company
Cash dividends 52,502,246.25 RMB 0.15 per share
Retained earnings at the end of the current year 451,399,521.37
32 Revenue and cost of sales
(1)Business income and cost
Items 2014.01-06 2013.01-06
Operating income 774,912,253.19 792,124,153.23 Key business income 762,976,180.18 781,945,848.39 Other business income 11,936,073.01 10,178,304.84 Operating cost 609,950,440.82 620,886,543.64 Key business cost 598,638,940.68 612,570,078.48 Other business cost 11,311,500.14 8,316,465.16 (2) Keybusiness（type）：
2014.01-06 2013.01-06
Name of type
Revenue Cost Revenue Cost Manufacturing 762,976,180.18 598,638,940.68 781,945,848.39 612,570,078.48 (3) Keybusiness（product）：
2014.01-06 2013.01-06
Name of product
Revenue Cost Revenue Cost Refrigeration
762,976,180.18 598,638,940.68 781,945,848.39 612,570,078.48 equipments
(4) Keybusiness（region）：
2014.01-06 2013.01-06
Name of region
Revenue Cost Revenue Cost North-east of China 591,705,529.73 480,596,639.82 590,919,291.04 471,649,196.95 East of China 12,034,083.18 10,107,026.32 10,554,770.03 8,699,608.75 Centre of China 159,236,567.27 107,935,274.54 180,471,787.32 132,221,272.78 Total 762,976,180.18 598,638,940.68 781,945,848.39 612,570,078.48
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report (5) Top five customers
Percentage of total business Name Revenue
income(%) Dalian Bingshan Engineering& Trading Co., Ltd. 51,801,413.84 6.68 Beijing Huashang-Bingshan Refrigerating& Air-conditioning Complete
33,544,521.62 4.33 Equipment Co., Ltd.
Shenyang Yurun Agricultural Products Global Purchasing Center 14,327,350.44 1.85 Ili Chuanning Biotechnology Co., Ltd. 13,829,059.82 1.78 Huafon Chongqing Spandex Co., Ltd. 13,761,538.46 1.78 Total 127,263,884.18 16.42 33 Business taxes and surcharges
Item 2014.01-06 2013.01-06 Basis of taxes calculated Business tax 836,183.52 693,802.893% or5% of Revenue
City maintenance and
3,211,160.39 3,029,455.207% of Business tax and Value-added tax construction tax
Additional education Fees 1,377,841.69 1,167,781.943% of Business tax and Value-added tax Local educational fee 918,538.25 763,858.522% of Business tax and Value-added tax Embankment expenses 125,694.96 110,327.65
Total 6,469,418.81 5,765,226.20
34 Selling and distribution expenses
Items 2014.01-06 2013.01-06
Handle official business expenses 2,479,958.80 2,117,556.59 Salaries and subsidies 25,847,629.40 20,829,431.85 Depreciation expenses 250,494.54 266,366.89 Transportations expenses 6,609,873.54 5,416,659.97 Entertainment expenses 3,170,406.48 4,121,601.35 Traveling expenses 6,261,527.19 8,393,449.44 Maintenance and repair expenses 3,040,090.24 3,773,656.52 Advertise and bids expenses 804,797.22 888,762.65 Others 436,623.10 573,858.09 Total 48,901,400.51 46,381,343.35 35 Administrative expenses
Items 2014.01-06 2013.01-06
Handle official business expenses 6,261,525.85 5,495,996.27 Salaries and subsidies 51,370,661.40 50,123,180.61 Depreciation expenses 3,573,094.77 3,353,905.34 Transportations expenses 745,869.70 684,763.80 Entertainment expenses 2,230,602.65 2,060,029.13 Traveling expenses 1,987,252.27 2,154,686.39 Maintenance and repair expenses 2,988,658.33 3,113,016.21 Advertise expenses 430,705.79 250,197.35 Other taxes 4,232,710.57 5,527,095.24 Insurance expenses 1,586,520.05 1,279,712.96 Research and development expenses 8,959,019.18 7,608,134.32 Amortization of long term assets 2,166,811.00 2,147,650.88
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Design consultant and test service expenses 2,723,594.26 1,975,676.93 Others 505,756.54 1,210,104.29 Total 89,762,782.36 86,984,149.72 36 Financial expenses
Items 2014.01-06 2013.01-06
Interest expenses 1,578,018.01 1,367,645.83 Less: interest income 5,861,187.92 3,697,556.93 Losses/gain on exchange 106,537.45 -25,670.74 Other expenses 378,947.63 270,465.01 Total -3,797,684.83 -2,085,116.83 37 Gain/ (loss) from investments
(1) Categeries
Items
2014.01-06 2013.01-06 Calculated by cost method 1,754,944.75 500,000.00 Calculated by equity method 53,897,497.58 43,570,614.51 Investment income due to disposal of the equity of
681,816.41
associated company
Total 56,334,258.74 44,070,614.51 (2) Calculated by cost method
Name 2014.01-06 2013.01-06 Reason of changes Guotai Junan Securities Co., Ltd. 1,504,944.75 Dividend distribution Liaoning Mec Group Co., Ltd. 250,000.00 500,000.00 Decrease of dividend distribution Total 1,754,944.75 500,000.00
(3) Calculated by equitymethod（more than5% ofprofit）
Name 2014.01-06 2013.01-06 Reason of changes Panasonic Cold-chain (Dalian) Co., Ltd 4,176,780.36
Keinin-Grand Ocean Thermal Technology
4,160,086.34 4,558,809.00 Decrease of business profit (Dalian) Co., Ltd.
Dalian Sanyo Compressor Co., Ltd. 33,870,606.86 31,248,034.91 Increase of business profit Dalian Fuji Bingshan Vending Machine Co., Ltd . 9,803,982.09
Total 47,834,675.29 39,983,624.27
(4)There was no severe constrict on the collection of the investment earnings.
38 Impairment losses
Items 2014.01-06 2013.01-06 Bad debt provision 11,727,606.97 11,692,077.89 Provision for obsolete inventories
Provision for the impairment of available-for-sale financial
assets
Provision for the impairment of held to maturity investments
Provision for the impairment of long-term equity investments
Provision for the impairment of investing property
Provision for the impairment of fixed assets
Provision for the impairment of construction materials
Provision for the impairment of construction in progress
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Provision for the impairment of bearer biological assets
Provision for the impairment of oil assets
Provision for the impairment of intangible assets
Provision for the impairment of goodwill
Provision for the impairment of other assets
Total 11,727,606.97 11,692,077.89 39 Non-business incomes
(1)Details
Amount recorded into Item 2014.01-06 2013.01-06 extraordinary profit and loss in the current period Gain on the disposal of non-current assets 2,044.63 240,775.86 2,044.63 Including: gain on the disposal of fixed assets 2,044.63 240,775.86 2,044.63 gain on disposal of intangible assets
Penalty and fine income 122,360.26 46,798.83 122,360.26 Subsidy fund from government 638,030.76 865,155.39 76,824.42 Deferred income 4,284,535.75 4,137,878.88 3,434,985.25 Debts need not paid
Others 3,023.77 3,023.77 Total 5,049,995.17 5,290,608.96 3,639,238.33 (2) Subsidy fund from government
Items 2014.01-06 2013.01-06 Explanations
Fund subsidies according to economic
76,300.00 20,300.00 Related to Gain/ loss
support policies
Tax refund 561,730.76 844,855.39 Related to Gain/ loss
Total 638,030.76 865,155.39
40 Non-business expenses
Amount recorded into Item 2014.01-06 2013.01-06 extraordinary profit and loss in the current period Loss on the disposal of non-current assets 129,041.96 222,418.65 129,041.96 Including: loss on the disposal of fixed assets 129,041.96 222,418.65 129,041.96 Fines and penalties 11,514.40 41,651.81 11,514.40 Others 66,263.76 66,263.76 Total 206,820.12 264,070.46 206,820.12 41 Income tax expense
Item 2014.01-06 2013.01-06
Current income tax expense 5,937,957.94 6,721,007.66 Deferred income tax expense -2,186,324.08 -2,208,944.81 Total 3,751,633.86 4,512,062.8542、Basic earnings per share and diluted earnings per share calculation process
(1)Calculation result
2014.01-06 2013.01-06 Net profit of the reporting period Basic earnings per Diluted earnings Basic earnings Diluted earnings per share per share per share share Profit attributable to theCompany(Ⅰ) 0.19 0.19 0.19 0.19 Profit after deducting extraordinary gain
0.18 0.18 0.18 0.18 or loss attributable to theCompany(Ⅱ)
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report (2)Calculation process of earning per share
Item No. 2014.01-06 2013.01-06 Profit or loss attributable to the Company 1 66,477,633.28 65,122,435.00 Profit or loss after deducting extraordinary gain or loss
2 63,794,559.91 62,382,278.37 attributable to the Company
the weighted average number of ordinary shares outstanding 3=4+5+6*10/9-7*11/9-
350,014,975 350,014,975 during the period(So) 8
the number of ordinary shares at the beginning of the
4 350,014,975 350,014,975 period(S0)
the number of additional ordinary shares issued on capital
5
surplus transfer or share dividends appropriation(S1)
the number of ordinary shares issued in exchange for cash or
issued as a result of the conversion of a debt instrument to 6
ordinary shares during the period(Si)
reduced number of ordinary shares such as shares buy
7
back(Sj)
the number of a reverse share split(Sk) 8
the months during the period(Mo) 9 6 6 the months from the following month after issuing
10
incremental shares to the end of the period(Mi)
the months from the following month after reducing shares to
11
the end of the period(Mj)
Basic earnings per share 12=1/3 0.19 0.19 Basic earnings per share deducting extraordinary gain or loss 13=2/3 0.18 0.18 (3) For the diluted potential ordinary shares, the net profits attributed to ordinary shareholders during the reporting term and the weighted average number of outstanding ordinary shares should be adjusted separately, and it shall be used to calculate the diluted earnings per share. Under the circumstances to issue the diluted potential ordinary shares such as convertible bonds, stock options, stock warrants, the diluted earnings per share shall be calculated in the light of the formula as follow: Diluted Earnings Per Share=P1/(S0＋S1＋Si×Mi÷M0–Sj×Mj÷M0–Sk+ The weighted average number of incremental ordinary shares on warrants, options, convertible debt and soon）P1represents the amounts attributable to ordinary equity holders of the Company in respect of: (a) Profit or loss attributable to the Company; and (b) Profit or loss after deducting extraordinary gain or loss attributable to the Company, adjust according to the accounting standards for enterprises and other relevant provisions. The Company considered in sequence from dilutive potential ordinary shares to get the lowest earnings per share.
43 Other comprehensive income
Items 2014.01-06 2013.01-06
1、Gain/(loss) on financial assets available for sale
Less：Income tax infection on financial assets available for sale
Net amount transferred into profit and loss at current period that
reckon into other comprehensive income at former period
Subtotal
2、Net amount of comprehensive income of invested company
belonging to the company
Less: Income tax infection
Net amount transferred into profit and loss at current period that 11,250.00
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Items 2014.01-06 2013.01-06
reckon into other comprehensive income at former period
Subtotal -11,250.00
3.Others 12,000.00 Less: Income tax infection 3,000.00 Net amount transferred into profit and loss at current period that
reckon into other comprehensive income at former period
Subtotal 9,000.00 Total -11,250.00 9,000.00 44. Relevant information about cash flow statement
(1) Other cash received relating to operating activities
Item 2014.01-06
Financial appropriation 76,300.00
Returns travel expense receivable 14,137,606.36
Received the current payments from associated parties 3,665,453.62
Interest income 4,279,561.80
Others 1,621,146.19
Total 23,780,067.97
(2) Other cash paid relating to operating activities
Item 2014.01-06
Travel expense 7,920,321.99
Deposit paid 3,911,850.00
Sales expenditure 39,706,895.07
Bank fees 338,963.63
Others 708,368.10
Total 52,586,398.79
(3) Other cash paid relating to financing activities
Item 2014.01-06
Discount interest for acceptance notes 39,984.00
Total 39,984.00
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report 45 Complementary information for consolidated cash flow statement
(1) The relationship between the net profit and the net cash flows from operating activitie s
Item 2014.01-06 2013.01-06 1. Reconciliation from the net profit to the cash flows from operating activities
Net profit 69,324,088.48 67,085,019.42 Add: Provisions for assets impairment 11,727,606.97 11,692,077.89 Depreciation of fixed assets 18,243,165.48 17,663,856.21 Amortization of intangible assets 2,103,901.84 2,099,282.43 Amortization of long-term deferred expenses 358,885.66 78,990.01 Losses on disposal of fixed assets, intangible assets and other long-term
-611,114.76 -18,357.21 assets (gains, -)
Losses on scrapping of fixed assets (gains, -) 56,295.68
Losses on variation of fair value (gains, -)
Finance expenses (income, -) 1,684,555.46 1,355,670.85 Investment losses (gains, -) -55,652,442.33 -44,070,614.51 Decrease in deferred tax assets (increase, -) -2,184,574.08 -2,208,944.81 Increase in deferred tax liabilities (decrease, -)
Decrease in inventory (increase, -) 54,052,680.59 40,091,737.33 Decrease in operating receivables (increase, -) -126,192,171.87 -82,052,456.41 Increase in operating payables (decrease, -) 24,494,736.42 -7,973,003.13 Others
Net cash flows from operating activities -2,594,386.46 3,743,258.07 2. Investing and financing activities that do not involve cash receipts and
payments
Conversion of debt into capital
Convertible bonds to be expired within one year
Fixed assets under finance lease
3. Net increase in cash and cash equivalents
Cash at the end of the period 469,921,233.07 481,218,686.90 Less: Cash at the beginning of the period 502,339,160.35 525,818,735.46 Plus: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase in cash and cash equivalents -32,417,927.28 -44,600,048.56 (2) Cash and cash equivalents
Item 2014.01-06 2013.01-06 1.Cash
469,921,233.07 502,339,160.35 Including: cash on hand
27,536.49 99,455.92 Bank deposits that can be used for payment whenever necessary
455,538,401.34 492,056,269.04 Other monetary capital that can be used for payment whenever
14,355,295.24 10,183,435.39 necessary
2.cash equivalents
Including: Bonds mature within 3 months
3.Balance of cash and cash equivalents at the end of the year 469,921,233.07 502,339,160.35
Dalian Refrigeration Co., Ltd. 2014 Semiannual ReportⅥ. Related Party Relationships and Transactions
1、Information of parent company
The Legal The parent The parent ultimate Name of Principal Registered Nature of company's company's controllin Organization Nature representative Registered capital shareholding voting right g party of Code enterprise activities address business
(%) (%) the person
Company Installation
Dalian and
Bingshan manufactory Sino-foreign Manufact SASAC Dalian Motoma Zhero RMB140,600,000.00 21.96% 21.96% 24129179-3 Group Co., of joint venture ure of Dalian Ltd. refrigeration
equipment
2、Subsidiaries
For details, please refer to theⅣ(一) of the notes.
3、Joint venture and associate companies
For details, please refer to theⅤ.10 of the notes.
4、Other type of the related parties
Name of the related parties Relationship with the Company Organization Code Dalian Bingshan Group Refrigeration Equipment
Subsidiary of Dalian Bingshan Group
11857056-X Co., Ltd.
Dalian Third Refrigeration Equipment Factory Subsidiary of Dalian Bingshan Group
11853975-7 Beijing Bingshan Serial Refrigeration Equipment
Subsidiary of Dalian Bingshan Group 80139721-2 Co., Ltd.
Dalian Bingshan Group Materials Trading Co. , Ltd Subsidiary of Dalian Bingshan Group 74437418-7 Dalian Spindle Cooling Towers Co., Ltd. Affiliated company of Dalian Bingshan Group 60487379-3 Dalian Bingshan Metal Technology Co., Ltd. Affiliated company of Dalian Bingshan Group 76077536-X Dalian Mahe Level Control Electrical Appliances
Affiliated company of Dalian Bingshan Group 60486775-6 Co., Ltd.
Linde Engineering (Dalian) Co., Ltd. Affiliated company of Dalian Bingshan Group 77301721-8 BAC Dalian Co., Ltd. Affiliated company of Dalian Bingshan Group 60492102-X Linde Engineering (Hangzhou) Co., Ltd. Affiliated company of Dalian Bingshan Group
77356588-X5、The transactions between the Company and the related parties
(1) Purchases of goods from related parties/ Sales of goods to related parties
Details of Rule of 2014.01-06 2013.01-06 Name of the related parties Item transaction price setting Proportion of the same type Proportion of the same type Amount transaction amount (%) Amount transaction amount (%) Dalian Sanyo Refrigeration Co., Ltd.
Purchases Purchases of goods
Market price
884,503.24 0.32 1,395,275.86 0.44 Panasonic Cold-chain (Dalian) Co., Ltd
Purchases Purchases of goods
Market price 7,433,527.78 2.65 9,031,353.74 2.87 Dalian Sanyo Compressor Co., Ltd.
Purchases Purchases of goods
Market price 32,239.21 0.01 659,584.42 0.21 Dalian Sanyo Meica Electronics Co., Ltd.
Purchases Purchases of goods
Market price 195,764.27 0.07
Dalian Bingshan Group Refrigeration
Equipment Co., Ltd. Purchases Purchases of goods
Market price 22,424,166.91 8.00 16,727,522.52 5.32 Dalian Third Refrigeration Equipment
Factory Purchases Purchases of goods
Market price
3,807,851.00 1.36 4,993,403.71 1.59 Dalian Spindle Cooling Towers Co., Ltd.
Purchases Purchases of goods
Market price 133,333.33 0.05 402,136.75 0.13 BAC Dalian Co., Ltd.
Purchases Purchases of goods
Market price 25,317,502.60 9.03 37,487,747.00 11.91 Dalian Bingshan Engineering& Trading Co.,
Ltd. Purchases Purchases of goods
Market price 8,482,546.92 3.03 8,276,816.51 2.63
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Details of Rule of 2014.01-06 2013.01-06 Name of the related parties Item transaction price setting Proportion of the same type Proportion of the same type Amount transaction amount (%) Amount transaction amount (%) Dalian Bingshan Group Materials Trading
Co. , Ltd Purchases Purchases of goods
Market price 1,599,625.64 0.57 2,753,364.26 0.87 Dalian Bingshan Metal Technology Co., Ltd.
Purchases Purchases of goods
Market price 534,598.40 0.19 597,511.58 0.19 Daliian Sanyo High-Efficient Refrigeration
System Co., Ltd. Purchases Purchases of goods
Market price 1,068,325.94 0.38
Dalian Sanyo Refrigeration Co., Ltd.
Sales Sales of goods
Market price 4,947,472.34 0.64 6,355,878.88 0.80 Panasonic Cold-chain (Dalian) Co., Ltd
Sales Sales of goods
Market price 10,599,811.03 1.37 12,331,500.97 1.56 Dalian Sanyo Compressor Co., Ltd.
Sales Sales of goods
Market price 3,637,584.26 0.47 1,703,435.03 0.22 Dalian Bingshan Group Refrigeration
Equipment Co., Ltd. Sales Sales of goods
Market price
919,806.39 0.12 887,564.56 0.11 Dalian Third Refrigeration Equipment
Factory Sales Sales of goods
Market price 3,179,698.09 0.41 1,695,097.85 0.21 BAC Dalian Co., Ltd.
Sales Sales of goods
Market price 1,090,316.25 0.14 114,564.10 0.01 Dalian Bingshan Engineering& Trading Co.,
Ltd. Sales Sales of goods
Market price 51,801,413.84 6.68 43,533,748.55 5.50 Dalian Bingshan–P&A Recreation
Development Engineering Co., Ltd. Sales Sales of goods
Market price 84,999.99 0.01
Beijing Bingshan Serial Refrigeration
Equipment Co., Ltd. Sales Sales of goods
Market price
173,671.79 0.02 5,747,454.71 0.73 Beijing Huashang Bingshan Serial
Refrigeration Equipment Co., Ltd. Sales Sales of goods
Market price 33,544,521.62 4.33 12,913,205.37 1.63 Dalian Fuji Bingshan Vending Machine Co.,
Ltd. Sales Sales of goods
Market price 1,367,412.63 0.18 942,225.90 0.12 Dalian Bingshan Metal Technology Co., Ltd.
Sales Sales of goods
Market price 69,888.46 0.01 51,500.34 0.01 Daliian Sanyo High-Efficient Refrigeration
System Co., Ltd. Sales Sales of goods
Market price 255,563.57 0.03 262,339.21 0.03 MHI Bingshan Refrigeration (Dalian) Co.,
Ltd. Sales Sales of goods
Market price 795,707.71 0.10
(2) Leasing fees from related party
The Company signed an agreement with Dalian Bingshan Group Co., Ltd. to lease the research building and garage space from Dalian Bingshan Group Co., Ltd. with a lease term of 3 years at the annual rent of RMB 142,572.00 yuan .
(3)Guarantee with related companies
No.
(4) Fund borrowing from associates
Explanation of fund borrowing form associates: For relocation of Dalian Bingshan Ryosetsu Quick Freezing Equipment Co., Ltd., one of its subsidiary companies, the Company borrowed 10 million yuan from Dalian Bingshan Group Co., Ltd. at the bank loan interest rate in the same period.
6 Amounts due from/to related parties
(1) Accounts receivable
30-06-2014 31-12-2013 Name of the related parties
Provision for Provision for Amount Amount
bad debts bad debts Dalian Sanyo Compressor Co., Ltd. 1,994,501.82 99,725.09 89,378.90 4,468.94 Dalian Sanyo Refrigeration Co., Ltd. 2,655,647.71 132,782.39 2,419,164.85 120,958.24 Panasonic Cold-chain (Dalian) Co., Ltd 5,103,099.38 255,154.97 2,365,278.44 118,263.92 Dalian Bingshan Engineering& Trading Co., Ltd. 667,043.20 33,352.16 2,617,143.93 130,857.20 BAC Dalian Co., Ltd. 5,600.00 280.00
Beijing Bingshan Serial Refrigeration Equipment Co., Ltd. 2,398,974.37 119,948.72 1,737,774.37 86,888.72 Dalian Bingshan–P&A Recreation Development Engineering
79,457.00 3,972.85 Co., Ltd.
Beijing Huashang Bingshan Serial Refrigeration Equipment
19,969,094.38 998,454.72 223,000.00 19,750.00 Co., Ltd.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Dalian Fuji Bingshan Vending Machine Co., Ltd. 1,221,699.03 61,084.95 148,940.03 7,447.00 (2) Notes receivable
30-06-2014 31-12-2013 Name of the related parties Provision for Provision Amount Amount
bad debts for bad debts Dalian Sanyo Compressor Co., Ltd. 617,136.87 426,959.02
Dalian Bingshan Engineering& Trading Co., Ltd. 11,614,818.89 8,529,233.58
BAC Dalian Co., Ltd. 300,000.00
Panasonic Cold-chain (Dalian) Co., Ltd 839,091.27
Dalian Sanyo Refrigeration Co., Ltd. 100,000.00 521,694.49
(3) Accounts paid in advance
Name of the related parties 30-06-2014 31-12-2013 Dalian Sanyo Compressor Co., Ltd. 2,487.00 Panasonic Cold-chain (Dalian) Co., Ltd 13,642.05 BAC Dalian Co., Ltd. 10,000.00 (4) Notes payable
Name of the related parties 30-06-2014 31-12-2013
Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 16,000,000.00 5,072,848.40 BAC Dalian Co., Ltd. 1,970,398.05 1,000,000.00 Dalian Bingshan Group Materials Trading Co. , Ltd. 380,000.00 5,208,750.00 Dalian Third Refrigeration Equipment Factory 1,500,000.00 Dalian Bingshan Engineering& Trading Co., Ltd. 541,287.53
Daliian Sanyo High-Efficient Refrigeration System Co., Ltd. 743,319.81 289,813.77 (5) Accounts payable
Name of the related parties 30-06-2014 31-12-2013
Dalian Third Refrigeration Equipment Factory 95,523.74 1,355,621.34 BAC Dalian Co., Ltd. 23,861,880.00 16,862,867.00 Dalian Bingshan Group Refrigeration Equipment Co., Ltd. 3,555,611.79 98,364.00 Panasonic Cold-chain (Dalian) Co., Ltd 9,526.00 9,526.00 Dalian Sanyo Meica Electronics Co., Ltd. 229,044.20 172,568.79 Dalian Spindle Cooling Towers Co., Ltd. 373,499.00 269,499.00 Dalian Bingshan Engineering& Trading Co., Ltd. 1,938,746.26 688,542.77 Dalian Sanyo Compressor Co., Ltd. 45,516.95 909,828.95 Dalian Bingshan Group Materials Trading Co., Ltd 341,965.80 Dalian Bingshan Metal Technology Co., Ltd. 216,514.08 383,288.96 Daliian Sanyo High-Efficient Refrigeration System Co., Ltd. 653,478.37 1,374,353.15 (6) Accounts received in advance
Name of the related parties 30-06-2014 31-12-2013
Dalian Third Refrigeration Equipment Factory 111,300.00
Dalian Sanyo Refrigeration Co., Ltd. 2,978.85 Dalian Bingshan Engineering& Trading Co. , Ltd. 2,272,607.85 Beijing Huashang Bingshan Refrigeration and Air-
1,936,650.06 conditioning Machinery Co., Ltd.
Dalian Bingshan–P&A Recreation Development
20,683.00 3,000.00 Engineering Co., Ltd.
MHI Bingshan Refrigeration (Dalian) Co., Ltd. 172,500.00
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report (7) Other Accounts payable
Name of the related parties 30-06-2014 31-12-2013
Dalian Bingshan Group Co., Ltd. 11,102,457.52 10,332,829.67 Dalian Third Refrigeration Equipment Factory 1,000.00 1,000.00 Dalian Bingshan Engineering& Trading Co. , Ltd. 148,353.55 231,499.82Ⅶ.Contingency
1. Effect of unsettled lawsuit to the financial statements
Target
Accuser Defendant Reason Court Development amount
Dalian Bingshan
Tonghua Yijia Jilin Province
Ryosetsu Quick Contract RMB1.94m RMB1 million of thedefendant’s Biotechnology Food Co., Tonghua County
Freezing Equipment Co., dispute illion bank deposit were frozen. Ltd. people’s Court
Ltd.
The lawsuit happened during 2013 and was still in the process of trying when the financial statements disclosed .
2. No guarantee to other company as at the end of the report period.
3. No other contingency needed disclosed.
Ⅷ. Commitments
No.
Ⅸ.Unadjusted events after the Balance Sheet Date
No.
Ⅹ.Other significant events
No.
Dalian Refrigeration Co., Ltd. 2014 Semiannual ReportⅪ.Notes to the financial statements of the parent company
1 Accounts receivable
(1) Classified by account nature
30-06-2014 31-12-2013
Balance Provision for doubtful debt Balance Provision for doubtful debt Category
Proportion Proportion Proportion Proportion Amount Amount Amount Amount
(%) (%) (%) (%) Receivables that are
individually
significant
Receivables not
individually
302,326,662.54 100 64,051,396.75 21.19 231,390,326.16 100 60,808,169.35 26.28 significant but with
high risk in groups
Other insignificant
items
Total 302,326,662.54 100 64,051,396.75 21.19 231,390,326.16 100 60,808,169.35 26.28 The aging of accounts receivable and related provisions for bad debts
30-06-2014 31-12-2013
Proportion Provision for bad Proportion Provision for bad Ages Amount Amount
(%) debts (%) debts Within1 year 166,062,045.76 54.99 8,303,102.29 98,401,447.62 42.53 4,920,072.38 1 to 2 years 56,810,684.59 18.81 5,681,068.46 54,129,047.71 23.39 5,412,904.77 2 to 3 years 30,091,150.96 9.97 9,027,345.29 27,897,517.68 12.06 8,369,255.30 3 to 4 years 8,654,790.50 2.87 4,327,395.25 10,718,514.51 4.63 5,359,257.26 4 to 5 years 18,167,051.33 6.02 14,533,641.06 17,485,595.02 7.56 13,988,476.02 Over 5 years 22,178,844.40 7.34 22,178,844.40 22,758,203.62 9.83 22,758,203.62 Total 301,964,567.54 100 64,051,396.75 231,390,326.16 100 60,808,169.35 (2) There is no receivables not individually significant but with high risk in groups during the report period.
(3) There is no receivable account of the Company that has been written off before this report period but recovered in this period.
(4) There is no accounts receivable being recovered by debts reconstruction during the report period.
(5)The write-off of accounts receivable
||||||
|-|-|-|-|-|
|Name of company|The nature of accounts receivable|Written off|Reason|Related party transaction|
|Clients (36)|Sale of goods|3,063,426.02|①|No|

①Description of writing off: The Company's receivables written-off in this reporting period were mainly those treated by the company for long-overdue receivables mainly because some account has been in arrears too long but the amount was relatively less, and some account was unreceivable due to the customer's refusing to pay with the excuse of generation of the field expenses.
(6) No arrearage from the shareholders holding over5% (including5%) of the equity of the Company existed in the balance of accounts receivable.
(7) The first five arrearage entities listed in the balance of accounts receivable
The relationship Proportion Company Amount Age
with the Company (%) Beijing Huashang Bingshan
Refrigeration and Air-conditioning affiliated 19,875,094.38 Less than 1 year 6.57 Machinery Co., Ltd.
Dalian Xinghaiwan Development&
Non-affiliated 11,242,693.00 4-5 years 3.72 Construction Management Center
Shenyang Yurun Agricultural Products
Non-affiliated 11,213,000.00 Less than 1 year 3.71
Global Purchasing Center
COFCO Meat (Suqian) Co., Ltd. Non-affiliated 10,136,575.85 1-2 years 3.35
Shijiazhuang Yurun Agricultural
Non-affiliated 6,870,000.00 Less than 1 year 2.27
Products Global Purchasing Center
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report (8) The amount of accounts receivable due from related companies are RMB 22,968,984.70,7.60% of total accounts receivable. The relationship
Proportion of total accounts Name with the Amount
receivable(%)
Company
Beijing Huashang Bingshan Refrigeration and Associated
19,875,094.38 6.57
Air-conditioning Machinery Co., Ltd. company
Beijing Bingshan Serial Refrigeration Subsidiary of
2,045,683.52 0.68
Equipment Co., Ltd. Bingshan Group
Associated
Dalian Sanyo Compressor Co., Ltd. 1,048,206.80 0.35
company
Total 22,968,984.70 7.60
2 Other accounts receivable
(1) Classified by account nature
30-06-2014 31-12-2013
Balance Provision for doubtful debt Balance Provision for doubtful debt Item
Proportion Proportion Proportion Proportion Amount Amount Amount Amount(%) (%) (%) (%) Receivables that are
individually significant
Receivables not
20,522,626.41 100 1,679,421.95 8.18 14,155,569.38 100 1,332,793.72 9.42 individually significant but
with high risk in groups
Other insignificant items
Total 20,522,626.41 100 1,679,421.95 8.18 14,155,569.38 100 1,332,793.72 9.42 The ageing of other accounts receivable and related provisions for bad debts
30-06-2014 31-12-2013
Ages Proportion Provision for bad Proportion Provision for bad Amount Amount
(%) debts (%) debts Within1 year 18,633,744.71 90.80 931,687.24 12,408,490.33 87.66 620,424.51 1 to 2 years 750,160.00 3.65 75,016.00 418,763.14 2.96 41,876.31 2 to 3 years 250,000.00 1.22 75,000.00 285,114.62 2.01 85,534.39 3 to 4 years 379,702.18 1.85 189,851.10 834,181.77 5.89 417,090.89 4 to 5 years 505,759.52 2.46 404,607.61 205,759.52 1.46 164,607.62 Over 5 years 3,260.00 0.02 3,260.00 3,260.00 0.02 3,260.00 Total 20,522,626.41 100 1,679,421.95 14,155,569.38 100 1,332,793.72 (2) There is no receivables not individually significant but with high risk in groups during the reporting period.
(3) There is no amount of provision for bad debts written back during the reporting period.
(4) During the reporting period, there is no other account receivable being recovered by debts reconstruction.
(5) During the reporting period, there is no other accounts receivable written-off.
(6) There is no balance of other accounts receivable due from the shareholders holding over5% (including5%) of the equity of the Company.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report (7) The first five arrearage entities of other accounts receivable
The relationship with
Company Amount Age Proportion(%) the Company
Dalian Land Reserve Center Non-affiliated 10,000,000.00 Less than 1 year 48.73 Dalian Construction Project Labor
Insurance Premium Management Non-affiliated 500,000.00 1-2 years 2.44 Office
Jiangsu Xinyou Construction Group
Non-affiliated 320,000.00 Less than 1 year 1.56 Co., Ltd. Xuzhou Branch
Jiangxi Soda Industry Co., Ltd. Non-affiliated 300,000.00 4-5 years 1.46 Dalian Economic& Technological
Development Zone Fund Accounting Non-affiliated 265,950.62 3-4 years 1.30 Center for Organs and Institutions
(8) There was no amount of other accounts receivable due from related companies at the end of the period.
(9) There is no other accounts receivable being ended reorganization or being negotiated during the reporting period. 3 Long-term equity investments
(1) Details of long-term equity investments
Provision Calculation
Initial cost Beginning balance Changes Ending balance
Sharehold
V ro igti hn tg
Provision for
impaf io rmr ent C oa f s thh e d civ ui rd re en nd t No. Name method ing（%）
（%）
impairment co uf r rth ee n t period period Dalian Bingshan–P&A
Equity
1 R Enec gr ie na et ei ro in
n
gD Cev oe .,l o Lp tdm
.
ent
method 1,034,675.00 3,474,153.38 215,188.46 3,689,341.84 50 50
Dalian Jiale Vending
Equity
2 M Lta dc
.
hine Operation Co.,
method 18,750,000.00 14,333,183.59 -14,333,183.59 50 50
Dalian Bingshan
Equity
3 Engineering& Trading
method 1,200,000.00 13,138,080.92 252,517.60 13,390,598.52 24 24 720,000.00 Co. , Ltd.
Dalian Sanyo Equity
4
Refrigeration Co., Ltd. method 85,416,929.20 150,937,123.13 -1,391,736.58 149,545,386.55 40 40 3,200,000.00 Dalian Honjo Chemical Equity
5
Co., Ltd. method 3,908,911.50 9,452,973.22 -537,296.75 8,915,676.47 30 30 1,252,121.40 Panasonic Cold-chain Equity
6
(Dalian) Co., Ltd method 134,658,753.75 215,712,008.04 -4,991,728.01 210,720,280.03 40 40 8,000,000.00 Keinin-Grand Ocean
Equity
7 Thermal Technology
method 24,402,234.58
40,403,428.77
-4,639,913.66
35,763,515.11
20 20 8,800,000.00 (Dalian) Co., Ltd.
Dalian Sanyo Compressor Equity
8
Co., Ltd. method 176,953,841.88
385,481,730.63
17,870,606.86
403,352,337.49
40 40 16,000,000.00 Dalian Sanyo Meica Equity
9
Electronics Co., Ltd. method 9,649,590.00 23,373,393.16 558,635.69 23,932,028.85 30 30
MHI Bingshan
Equity
10 Refrigeration (Dalian)
method 22,500,000.00 22,500,000.00 -1,486,762.36 21,013,237.64 45 45
Co., Ltd.
Beijing Huashang
Bingshan Refrigeration Equity
11
and Air-conditioning method 490,000.00 1,175,056.73 35,673.03 1,210,729.76 49 49
Machinery Co., Ltd.
Dalian Fuji Bingshan
Equity
12 Vending Machine Co.,
method 66,416,364.00 77,258,663.86 9,803,982.09 87,062,645.95 49 49
Ltd.
Daliian Sanyo High-
Equity
13 Efficient Refrigeration
method 20,000,000.00 22,028,814.51 236,209.81 22,265,024.32 25 25
System Co., Ltd.
Dalian Sanyo Home Equity
14
Appliance Co., Ltd. method 19,666,212.00 11,694,400.00 11,694,400.00 10.91 10.91 11,694,400.00
Zibo Electric Traction
15
Machine Co., Ltd.
Cost method 420,000.00 420,000.00 420,000.00 0.76 0.76 420,000.00
Liaoning Mec Group Co.,
16
Ltd.
Cost method
1,020,000.00 1,020,000.00 1,020,000.00 3.57 3.57 250,000.00 Guotai Junan Securities
17
Co., Ltd.
Cost method 30,098,895.00 30,098,895.00 30,098,895.00 0.49 0.49 1,582,164.89 1,504,944.75 Guotai Junan Investment
18
Management Co., Ltd.
Cost method 3,057,316.00 3,057,316.00 3,057,316.00 0.22 0.22 2,688,605.91
Thermo King Container
19 Temperature Control Cost method 11,207,806.00 11,207,806.00 11,207,806.00 17.8 17.8
(Suzhou) Co., Ltd.
Liaoning Enterprises
20
UnitedIndustryCo.,Ltd.
Cost method 105,000.00 105,000.00 105,000.00 4.2 4.2 105,000.00
Dalian Bingshan Group
21 Materials Trading Co., Cost method 250,000.00 250,000.00 250,000.00 5 5
Ltd.
Dalian Bingshan Group
22 Refrigeration Installation Cost method 20,036,841.62 20,036,841.62 20,036,841.62 100 100
Co., Ltd.
Dalian Bingshan Group
23
Sales Company
Cost method 16,200,000.00 16,200,000.00 16,200,000.00 90 90
24
D Pra ol cia en
ss
B ini gn g Cs oh .a ,n
L
M tde
.
tal
Cost method 12,501,344.60 12,501,344.60 12,501,344.60 64.25 64.25
Dalian Bingshan Air-
25 Conditioning Equipment Cost method 36,506,570.00 36,506,570.00 36,506,570.00 70 70 2,100,000.00 Co., Ltd.
26 Dalian Bingshan Cost method
1,522,117.80 1,522,117.80 1,522,117.80 60 60
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Provision No. Name
Ca mlc eu thla ot dio n
Initial cost Beginning balance Changes Ending balance
S inh ga（reh%o）ld
（V ro
i
%gti hn）tg
P imro pv ais iri mon
e
nfo tr im cp o ua ff r io rtr h emr e ne t nt C oa f s thh pe e d rci iv oui drd r e en nd t period Guardian Automation
Co., Ltd.
Dalian Bingshan
27 Ryosetsu Quick Freezing Cost method 5,745,097.40 5,745,097.40 5,745,097.40 70 70
Equipment Co., Ltd.
Wuhan New World
28 Refrigeration Industrial Cost method 17,980,400.00 17,980,400.00 17,980,400.00 51 51
Co., Ltd.
Wuhan New World
Refrigeration Air
29
Conditioner Engineering
Cost method
400,000.00 400,000.00 400,000.00 5 100
Co., Ltd.
Total 742,098,900.33 1,148,014,398.36 1,592,192.59 1,149,606,590.95 16,490,170.80 41,827,066.15 Note 1: On Oct. 22, 2013, the 6th meeting of the 6th Board of Directors of the Company adopted the resolution that the Company and Fuji Motor Co., Ltd. transferred50% of their respective shareholding in Dalian Jiale Vending Machine Operation Co., Ltd. to the independent third party -- Shanghai Miyuan Beverage Co., Ltd., the base date for transfer was Jun. 30, 2013, and the amount for the Company's transfer was 15 million yuan. In Jan. 2014, the Company received the said transfer amount paid by Shanghai Miyuan Beverage Co., Ltd. and the transfer was completed.
4 Revenue and cost of sales
(1)Business income and cost
Items 2014.01-06 2013.01-06
Operating income
470,970,219.97 485,112,570.51 Key business income
460,374,451.87 476,890,717.26 Other business income
10,595,768.10 8,221,853.25 Operating cost
386,947,532.84 389,637,758.36 Key business cost
377,487,851.62 382,481,578.43 Other business cost
9,459,681.22 7,156,179.93 (2) Keybusiness（type）
2014.01-06 2013.01-06
Name of type
Revenue Cost Revenue Cost Manufacturing 460,374,451.87 377,487,851.62 476,890,717.26 382,481,578.43 (3) Keybusiness（product）
2014.01-06 2013.01-06
Name of product
Revenue Cost Revenue Cost Refrigeration
460,374,451.87 377,487,851.62 476,890,717.26 382,481,578.43 equipments
(4) Key business (region)
2014.01-06 2013.01-06
Name of region
Revenue Cost Revenue Cost North-east of China 460,374,451.87 377,487,851.62 476,890,717.26 382,481,578.43
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report (5) Top five customers
Percentage of total Name Revenue
business income(%) Dalian Bingshan Engineering& Trading Co., Ltd .
48,002,943.23 10.19 Beijing Huashang Bingshan Refrigeration and Air-conditioning
33,544,521.62 7.12 Machinery Co., Ltd.
Shenyang Yurun Agricultural Products Global Purchasing Center
14,327,350.44 3.04 Ili Chuanning Biotechnology Co., Ltd.
13,829,059.82 2.94 Huafon Chongqing Spandex Co., Ltd.
13,761,538.46 2.92 Total
123,465,413.57 26.21 5 Gain/ (loss) from investments
(1) Categery
Item 2014.01-06 2013.01-06 Long-term equity investment income accounted for by using the cost method
3,854,944.75 5,313,205.11 Long-term equity investment income accounted for by using the equity method
53,897,497.58 43,570,614.51 Investment income due to disposal of the equity of associated company
681,816.41
Total
58,434,258.74 48,883,819.62 (2) Long-term equity investment income accounted for by using the cost method
Name of invested company 2014.01-06 2013.01-06 Reason of changes Liaoning Mec Group Co., Ltd. 250,000.00 500,000.00
Less distributed dividend Board of directors not held during Dalian Bingshan Air-Conditioning Equipment Co., Ltd . 2,100,000.00
the same period of last year Board of directors not held during Dalian Bingshan Guardian Automation Co., Ltd. 2,263,205.11
the reporting period Board of directors not held during Wuhan New World Refrigeration Industrial Co., Ltd. 2,550,000.00
the reporting period Dividend distributed Gutai Junan Securities Co., Ltd. 1,504,944.75
Total 3,854,944.75 5,313,205.11
(3) Long-term equity investment income accounted for by using the equity method
Name of invested company 2014.01-06 2013.01-06 Reason of changes Dalian Sanyo Refrigeration Co., Ltd.
1,808,263.42 148,660.98 Increase of business profit Panasonic Cold-chain (Dalian) Co., Ltd 3,008,271.99 4,176,780.36 Decrease of business profit Keinin-Grand Ocean Thermal Technology (Dalian)
4,160,086.34 4,558,809.00 Decrease of business profit Co., Ltd.
Dalian Sanyo Compressor Co., Ltd. 33,870,606.86 31,248,034.91 Increase of business profit Dalian Bingshan Engineering& Trading Co., Ltd. 972,517.60 824,130.97 Increase of business profit Dalian Honjo Chemical Co., Ltd. 714,824.65 487,234.37 Increase of business profit Dalian Sanyo Meica Electronics Co., Ltd. 558,635.69 -110,176.59 Increase of business profit Beijing Huashang Bingshan Refrigeration and Air-
35,673.03 11,100.94 Increase of business profit conditioning Machinery Co., Ltd.
Dalian Fuji Bingshan Vending Machine Co., Ltd. 9,803,982.09 2,792,481.55 Increase of business profit Daliian Sanyo High-Efficient Refrigeration System
236,209.81 98,576.11 Increase of business profit Co., Ltd.
Dalian Bingshan–P&A Recreation Development
215,188.46 -330,100.26 Increase of business profit Engineering Co., Ltd.
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Name of invested company 2014.01-06 2013.01-06 Reason of changes Dalian Jiale Vending Machine Operation Co., Ltd. -334,917.83 Transferred
MHI Bingshan Refrigeration (Dalian) Co., Ltd.
-1,486,762.36
Put into operation in this period Total
53,897,497.58 43,570,614.51
(4)There was no severe constrict on the collection of the investment earnings.
6、Supplementary information of cash flow statement
Supplementary information 2014.01-06 2013.01-06 1. Reconciliation from the net profit to the cash flows from operating activities
Net profit 64,214,504.65 63,288,641.95 Add: Provisions for assets impairment 6,653,281.65 7,337,489.02 Depreciation of fixed assets 11,763,233.68 11,301,660.09 Amortization of intangible assets 1,328,578.30 1,326,553.77 Amortization of long-term deferred expenses 350,120.32 70,224.67 Losses on disposal of fixed assets, intangible assets and other long-term
-682,901.04
assets (gains, -)
Losses on scrapping of fixed assets (gains, -) 54,144.94
Losses on variation of fair value (gains, -)
Finance expenses (income, -) 205,718.11 -119,335.70 Investment losses (gains, -) -57,752,442.33 -48,883,819.62 Decrease in deferred tax assets (increase, -) -1,533,172.09 -1,834,372.26 Increase in deferred tax liabilities (decrease, -)
Decrease in inventory (increase, -) 29,969,046.52 27,004,267.11 Decrease in operating receivables (increase, -) -103,007,138.64 -48,593,335.99 Increase in operating payables (decrease, -) 14,442,552.97 -4,471,548.27 Others
Net cash flows from operating activities -33,994,472.96 6,426,424.77 2. Investing and financing activities that do not involve cash receipts and
payments
Conversion of debt into capital
Convertible bonds to be expired within one year
Fixed assets under finance lease
3. Net increase in cash and cash equivalents
Cash at the end of the period 373,188,133.53 398,052,941.34 Less: Cash at the beginning of the period 431,494,649.19 437,725,268.74 Plus: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase in cash and cash equivalents -58,306,515.66 -39,672,327.40
Dalian Refrigeration Co., Ltd. 2014 Semiannual ReportⅫ. Other supplementary Information
1 Non-recurring gains and losses
Non-recurring gains and losses item 2014.01-06
1. Gain/loss from disposal of non-current assets 34,225.82
2.Tax return or exemption exceeding authority or without formal authorization
documents
3.Governmental subsidy written into current gains and losses 3,511,809.67
4. Interest from non-financial enterprises written into current gains and losses
5.Gains/Losses on debt restructuring
6.Reversal of provision for impairment of long-term assets
7. Investment income due to disposal of the available-for-sale financial assets
8. Other net income and expense from non-operation 47,605.87
Less：Affected amount of income tax from non-recurring gains and losses -895,927.94
Less: Affected amount of minority interest -14,640.05
Non-recurring gains and losses attributable to parent company 2,683,073.37
2 Earnings per share
The weighted EPS
Item average ROE
(%) Basic EPS Diluted EPS Net profit attributable to theCompany’s ordinary
3.49 0.19 0.19 shareholders
Net profit attributable to theCompany’s ordinary
3.35 0.18 0.18 shareholders after deducting non-recurring gains and losses
3 The special change items of balance sheet and income statement
Items of balance sheet
and income statement 2014.06.30 2013.12.31 Change Ratio Reasons
The payments for projects, purchases prepaid in Account paid in advance 35,233,321.64 26,031,386.32 35.35%
the report period increased
The dividends announced for distribution by the Dividend receivable
19,104,944.75 33,450.00 57014.93% invested units did not arrive in the payment period
The term deposits in the report period increased Interest receivable
5,197,899.97 3,603,594.85 44.24%
with more interests
Increase of the performance bond for bids in the Other account receivable
32,994,118.28 24,514,740.07 34.59%
reporting period.
The expense to be apportioned in the report Other current assets
2,080,367.89 995,599.80 108.96%
period increased
The Company paid the year-end bonus for the lastEmployee’s compensation payable
36,807,288.20 53,580,031.02 -31.30%
year in the report period
The dividends did not arrive in the payment Dividend payable
1,433,156.00 2,053,911.36 -30.22%
period
2014.01-06 2013.01-06
The term deposits in the report period increased Financial expense -3,797,684.83 -2,085,116.83 -82.13%
with more interests
Dalian Refrigeration Co., Ltd. 2014 Semiannual Report Section 9 Contents of Reference Documents
1. The accounting statements bearing the signatures and seals of the legal representative, the financial majordomo and the accountants in charge.
2. The original copies of all the Company's documents and the original copies of the bulletins published on the newspapers designated by the China Securities Regulatory Commission in the report period.
Board of Directors of Dalian Refrigeration Company Limited August 19, 2014