2015 Annual Report
StockAbbreviation：Dongbei B StockCode：900956
Huangshi Dongbei Electrical Appliance Co., Ltd.
2015 Annual Report
2015 Annual Report
Important Notes
1.The Board of Directors，SupervisoryCommittee，directors , supervisors and Senior Executives of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.
2．The situation of the director who failed to attend
|||||
|-|-|-|-|
|Position of the director whofailed to attend|Name of the director whofailed to attend|Reason for failure to attend|Name of proxy|
|Director|Ruan Zhengya|Business trip|Lu Yanying|

3. Hubei Daxin Certified Public Accountants Co., Ltd. ( Special General Partnership) issued standard unqualified auditors' report for the Company.
4. Mr.Zhu Jinming, Person in charge of the Company, Ms. Lu Lihua, Chief financial officer and the Ms. Ma Li, the person in charge of the accounting department (the person in charge of the
accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this Annual Report .
5. The profit allocation plan or the capitalization from capital public reserve during the report period examined by the Board of Directors.
Considering the interests of shareholders and the long-term development , the profit allocation plan of the company in 2015 was as belows：The profit allocation and the capitalization from capital public reserve will not be conducted for the Company in the report period..
6.And forward-looking statement such as those involving the future operational plans in this report shall not be considered as virtual prolmises of the Company to investors. And investors are kindly reminded to pay attention to possible risks.
7. Whether the controlling shareholder and its related parties did not occupy the funds of the Company for operation.
No.
8. Whether the Company did not provide guarantee in violation of specified decision-making procedure. No.
9.Reminder of MajorRisks：
The Company has described the possible risks in thisyear’s report in order to attract attention from the investors. For more refer to the “ Report of the future development discussion by Board of Directors”.
2015 Annual Report
Table of Contents
I. Definition
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV.Management’s Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Information about the corporate bonds
XI.Financial Report
XII. Documents available for inspection
2015 Annual Report
I.Definition
1.Definition
In this report, medium, the following words and expressions shall have the following meaning unless otherwise defined:
||||
|-|-|-|
|Definition of frequently mentioned words and expressions|||
|Company, The Company, We,Dongbei Electrical Appliance|Refers to|Huangshi Dongbei ElectricalAppliance Co., Ltd.|
|Dongbei Group, Controllingshareholder|Refers to|Huangshi Dongbei ElectromechanicalGroup Co., Ltd|
|Daxin, Daxin Certified PublicAccountants|Refers to|Hubei Daxin Certified PublicAccountants Co., Ltd. ( SpecialGeneral Partnership)|
|Report period|Refers to|2015|
|SSE|Refers to|Shanghai Stock Exchange|
|CSRC|Refers to|China Securities RegulatoryCommission|
|The Securities Law|Refers to|The Securities Law of the People’sRepublic of China|
|The Company Law|Refers to|The Company Law of the People’sRepublic of China|
|Articles, The Articles of association|Refers to|The Articles of association ofHuangshi Dongbei ElectricalAppliance Co., Ltd.|
|Yuan, Million Yuan, Billion Yuan|Refers to|RMB Yuan , RMB millionYuan,RMB Billion Yuan|

2015 Annual Report
II. Basic Information of the Company and Financial index
I.Information of the Company
|||
|-|-|
|Chinese name of the Company|黄石东贝电器股份有限公司|
|Abbr. of the Chinese name of the Company|东贝B股|
|English name of the Company|Huangshi Dongbei Electrical Appliance Co.,Ltd|
|English Abbreviation|DONGBEI|
|Legal representative of the Company|Zhu Jinming|

II.Contact person and contact manner
||||
|-|-|-|
||Board secretary|Securities affairs Representative|
|Name|Lu Lihua|Huang Jie|
|Contact address|No.6, Jinshan East Road, Economic &Technology Development Zone,Huangshi City, Hubei Province.|No.6, Jinshan East Road, Economic &Technology Development Zone,Huangshi City, Hubei Province.|
|Tel|0714-5415858|0714-5415858|
|Fax|0714-5415858|0714-5415858|
|E-mail|stock@donper.com|stock@donper.com|

III.Basic Information about the Company
|||
|-|-|
|Registered Address:|No.6, Jinshan East Road, Economic & TechnologyDevelopment Zone, Huangshi City, Hubei Province.|
|Postal code of Registered address|435000|
|Business Address|No.6, Jinshan East Road, Economic & TechnologyDevelopment Zone, Huangshi City, Hubei Province.|
|Postal code of Business address|435000|
|Website：|http://www.donper.com|
|E-mail|stock@donper.com|

IV.The Place for Placing the Annual Report and the Information Disclosure
|||
|-|-|
|Newspapers for Information Disclosure|Shanghai Securities Daily and Hong Kong CommercialDaily|
|Internet Website for Publishing the Annual Report|www.sse.com.cn|
|The Place for Placing the Annual Report|Securities Dept. of the Company|

V.Stock Profile
||||||
|-|-|-|-|-|
|Stock Condition of the Company|||||
|Type|Stock exchange forlisting|Stock Abbreviation|Stock Code|Stock Abbreviation(Before change)|
|B share|Shanghai StockExchange|Dongbei B|900956||

VI.Other Relevant Information
||||
|-|-|-|
|Certified public accountants engagedby the Company（Domestic）|Name|Hubei Daxin Certified Public Accountants Co., Ltd.( Special General Partnership)|
||Office address|16/F, Zhiyin Media Square, No.31, Zhongbei Road,Wuhan|

2015 Annual Report
||||
|-|-|-|
||Names of theCertified PublicAccountants as thesignatories|Zhang Ling, Jiang Yanhong|
|Certified public accountants engagedby the Company（Overseas）|Name||
||Office address||
||Names of theCertified PublicAccountants as thesignatories||
|The sponsor performing persistantsupervision duties engaged by theCompany in the reporting period.|Name||
||Office address||
||Name of the sponsoras the signatories||
||Period of supervisionand guide||
|The Financial advisor performingpersistant supervision duties engagedby the Company in the reportingperiod|Name||
||Office address||
||Name of the financialadvisor as thesignatories||
||Period of supervisionand guid||

VII.Main accounting data and financial indicators of the Company in the last three years
1.Main accounting data
In RMB
||||||
|-|-|-|-|-|
|Main accounting data|2015|2014|Changedover lastyear（％)|2013|
|Operating income|3,420,131,010.98|3,559,013,065.68|-3.90|4,264,031,820.89|
|Net profit attributable to theshareholders of the listedcompany|69,792,841.69|59,518,090.82|17.26|93,824,776.19|
|Net profit after deducting ofnon-recurring gain/lossattributable to theshareholders of listedcompany|58,701,752.38|51,331,667.72|14.36|54,216,908.08|
|Cash flow generated bybusiness operation, net|501,750,054.81|205,434,440.29|144.24|52,733,441.69|
||End of2015|End of2014|Changedover lastyear（％)|End of2013|
|Net assets attributable to theshareholders of the listedcompany|1,003,962,628.52|933,812,728.19|7.51|897,432,610.64|
|Gross assets|4,441,133,850.47|4,147,085,911.16|7.09|3,866,185,818.22|
|Total share capital|235,000,000.00|235,000,000.00|0.00|235,000,000.00|

 2.Main Financial Index
||||||
|-|-|-|-|-|
|Main Financial index|2015|2014|Changed over lastyear（％)|2013|
|Basic earning per share(RMB/Share)|0.297|0.253|17.39|0.399|
|Diluted gains per share(RMB/Share)|0.297|0.253|17.39|0.399|
|Basic earning per share after deducting|0.250|0.218|14.68|0.231|

2015 Annual Report
||||||
|-|-|-|-|-|
|of non-recurringgains/losses(RMB/Share)|||||
|Weighted average net asset earningratio（%）|7.20|6.42|Increasedby12.15%|11.03|
|Net income on asset, weighted anddeducted non-recurring gain/loss(%)|6.06|5.54|Increasedby9.39%|6.37|

VIII.The differences between domestic and international accounting standards
1.Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets.
□ Applicable√Not applicable
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards.
□ Applicable√Not applicable
IX.Main Financial Index by Quarters
In RMB
||||||
|-|-|-|-|-|
||First quarter|Second quarter|Third quarter|Fourth quarter|
|Operating income|932,102,452.09|1,113,110,903.48|671,516,363.36|703,401,292.05|
|Net profit attributable tothe shareholders of thelisted company|4,841,435.64|22,589,351.13|25,317,926.70|17,044,128.22|
|Net profit after deductingof non-recurring gain/lossattributable to theshareholders of listedcompany|3,200,023.63|15,161,241.18|16,019,460.71|24,321,026.86|
|Net Cash flow generatedby business operation|32,595,667.61|223,628,670.69|168,100,856.86|77,424,859.65|

Quarterly data and Disclosed periodic reports data discrepancies explained
□ Applicable√Not applicable
X.Items and amount of non-operating gains and losses:
√ Applicable□ Not applicable
In RMB
||||||
|-|-|-|-|-|
|Items of non-operating gains and losses|Amount (2015)|Notes (Ifany)|Amount (2014)|Amount(2013)|
|Gain/loss form disposal of non-currentassets.|-462,241.68||-6,128,798.77|31,109,041.33|
|Tax rebates, reductions or exemptionsdue to approval beyond authority or thelack of official approval documents|||||
|Governmental Subsidy accounted ascurrent gain/loss, except for thosesubsidies at with amount or quantityfixed by the national government andclosely related to the Company’sbusiness operation.|20,038,689.31||28,245,641.32|8,607,485.00|

2015 Annual Report
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|-|-|-|-|
|Capital occupation charges onnon-financial enterprises that arerecorded into current gains and losses|||393,827.10|
|Gains due to that the investment costs forthe Company to obtain subsidiaries,associates and joint ventures are lowerthan the enjoyable fair value of theidentifiable net assets of the investeeswhen making the investments||||
|Gain/loss on non-monetary asset swap||||
|Gain/loss on entrusting others withinvestments or asset management||||
|Asset impairment provisions due acts ofGod such as natural disasters||||
|Gains/losses of debt restructure||||
|Reorganization expenses, such asexpenditure for allocation of employeesand integration fee||||
|Gains/losses exceeding the fair valuearising from transactions with obviouslyunfair prices||||
|Net gain and loss of the subsidiary underthe common control and produced fromenterprise consolidation from thebeginning of the period to theconsolidation date||||
|Gain and loss anising from contingentmatters irrelevant with the Company’snormal operation business||||
|Gain and loss from change of the fairvalue arising from transactionalmonetary assets, transactional financialliabilities as held as well as theinvestment income arising from disposalof the transactional monentary assets,transactional financial liabilities andfinancial assets available for saleexcluding the effective hedgingtransaction in connection with theCompany’s normal business||||
|Reverse of the provision for impairmentof acounts receivable undergoingimpairment test individually||||
|Gain/loss from external entrusted loan||||
|Gain and loss arising from change in thefair value of the investment based realestate measure afterwards by means offair value mondel||||
|Influence upon the current gains andlosses from the once-and –for –alladjustment over the current gains andlosses according to the taxation andaccounting laws and regulations||||
|Income from custodian charge obtainedfrom entrusted operation||||
|Operating income and expenses otherthan the aforesaid items|2,644,433.78|606,174.49|6,722,899.04|
|Other gains/losses in compliance withthe definition of non-recurring gain/loss||||
|Influenced amount of minorshareholders’ equity|-7,250,561.72|-11,128,257.29|-200,396.48|
|Influenced amount of income tax|-3,879,230.38|-3,408,336.65|-7,024,987.88|
|Total|11,091,089.31|8,186,423.10|39,607,868.11|

2015 Annual Report
III. Outline of Company Business
I.Main businesses , business mode and industry situation of the company in the reporting period 1. The main business
The company's main business is: committed to the development and research, production and sales of low carbon, high efficiency, energy-saving and environmental-protection refrigeration compressor. 2. The business mode
Adhering to the service principle of "Honest management and customer first" and the work spirit of rapid response and fast action, the company established effective communication mechanism with customers, established strategic partner relationship with key customers and continuously paid attention to the extent of customer satisfaction of products quality and technical service. Thecompany’s marketing department would carry out the product sales according to thecustomers’ different requirements and appetites, enacting "One family one strategy" program to provide customers with personalized products and services. Meanwhile, set up user files and regularly or randomly pay a visit to the user for better exchange, create the “one-stop babysitting service” mechanism integrated with quality, technology, service and marketing, shape a perfect overall service network, thus improved the customer satisfaction and won the customer's favor and trust to gradually achieve the customer engagement.Ⅱ.Major Changes in Main Assets
During the reporting period, other receivables decreased by59.16% over the same period last year, which was mainly due to receiving the last year's export tax rebate;
During the reporting period, the other current assets increased by130.38% over the same period last year, which was mainly due to the increase of input VAT;
During the reporting period, the fixed assets increased by73.46% over the same period last year, which was mainly due to the new increase of production equipment by Dongbei(Jiangsu) Electromechanical Co., Ltd and Alashankou Dongbei Greenergy Co., Ltd.;
During the reporting period, the construction-in-process decreased by84.94% over the same period last year, which was mainly due to the construction of project of efficient and energy-saving commercial production line and the first phase construction of project of Jiangsu Suqian Industrial Park had finished the completion of final accounts and then transferred to the fixed assets;
During the reporting period, the long-term loans increased by193.51% over the same period last year, which was mainly due to the increased project loans for purchasing the production equipment by Alashankou Dongbei Greenergy Co., Ltd;
During the reporting period, the deferred income increased252.45% compared to the last year, which was mainly due to receiving the grants for industrial restructuring and upgrading project and the third phase of special power line construction and financial infrastructure;
During the reporting period, the other comprehensive income increased by211.33% over the last year, which was mainly due to the increase in the translation balance of foreign currency in the financial statements.
Ⅲ.Analysis On core Competitiveness
The company has the "sustained innovation ability of product research and development, the diversified matching production capacity, cohesion force of people-oriented team, quick response and considerate service ability and comprehensive marketing developing ability" that constituted the five aspects of the core competitiveness to support the company to complete the enterprise mission of "Providing the first-class compressor to the global refrigerator manufacturers " .
2015 Annual Report
1. R& D capabilities and technology
The company has the domestic leading R& D capabilities and the R& D platform, the compressor technology center is a national recognized enterprise technology center, the company has set up a post doctoral workstation and established the research and development center in Europe and The United States. The company has the compressor product technology to meet high or medium or low back pressure and high efficiency compressor type under different working fluids requirements, also, the company has more than 200 items of patents, and the company filed patent application in the foreign countries. In the ministerial level identification meeting of new products held in November, the company declared seven series of new products, of which there were four series had been assessed as in the leading international level, two series were assessed as in the international advanced level, and a series had been assessed as in the leading domestic level, assessed by the experts that represented the cutting-edge technological level of the industry, leading the future development direction of the industry. The third-generation variable-frequency product being developed reached the highest level of similar products in the world whether in the dimension, performance coefficient, start performance or reliability. 2. The world's advanced compressor production line
The company has theworld’s advanced compressor production line which can produce more than 200 kinds of products in 12 major series applied to working fluids such asR600a、R134a、R22、R404a、 R290. Currently, the company has the most types, the most comprehensive specification and the biggest power-span of compressors in the compressor industry. The company is the major compressor-supplier for a number of domestic and foreign manufacturers of refrigerator, and thecompany’s products exported to more than 30 countries and regions.
3.Frank two-way communication
Thecompany’s leaders understand that the effective communication and practice is an effective way to accelerate the staff and the related party to recognize and accept the culture of the company, and the company, through theworker’s congress, special forum and so forth communication platforms, communicated with its employees. Each month, the company holds regular staff recognition conference of “People-oriented, glory in hard-working” for the purpose of motivating the team.
4. Highly-efficient management philosophy
The build-up of a flexible organization is conducive to solving problems, improvement, raising the operating speed. Through the specification of staff responsibility and the improvement of staff skills and comprehensive capability and by means of adequate human resources to keep the flexibility of the organization; through the establishment of advanced management system and the enhancement on the departmental coordination ability and the communication speed to keep transparency and flexibility of information and instructions, thus to improve thecompany’s adaptability to the internal and external environment.
5. Market development
According to the aspects such as customer satisfaction, customer distribution, customer desire, the change of the market demand of refrigeration compressor and the product production and sales, the company globally carried out full service in pre-sales, sales and after-sales.
2015 Annual Report
IV.Management’s Discussion and Analysis
I.Management’s Discussion and Analysis
In 2015, the global economic recovery was slow and the regional hot incidents frequently happened, yet the growth of the international trade was weak and the domestic growth slowed down, thus the pressure on the economic downward was continuously increased. According to the online statistics of the industry, the domestic output of refrigerator compressor increased2.9% year-on-year and the sales increased1.5% year-on-year, however, compared to the previous years, the rate of increase sharply declined. In the refrigerator compressor industry, there was serious overcapacity and there was very fierce competition. Under such complex economic environment, the company focused on its capability, actively adapted to the new normal, stimulated its vitality and strived to make a new business performance. Centered on the annual business goal, the company mainly focused on the following works in the full year:
1. Actively developing the new market and speeding up the internationalization of the company
In 2015, the company overcame the difficult situation that the overseas market demand was not strong but the domestic demand was weak, adhered to grasp the international and domestic markets, kept a close watch on the product structure adjustment caused by end-users, promoted the high-specification, high-efficient and variable-frequency products to realize the market-share growth; at the same time, according to the different needs of users, the company adopted different sales policies, considerate services and the precise marketing, thus the company successively won the outstanding supplier award of Nanjing Skyworth, the outstanding supplier award of Aucma, Strategic Cooperation Award of Midea, and the company had become the best supplier to Whirlpool and the strategic supplier to Galanz. Under such difficult market environment, thecompany’s sales of compressor realized the growth. Meanwhile, the company actively explored the international market, in 2015, the company's annual export volume of foreign trade increased20.6% year-on-year.
2. Adhering to the Technology First and improving the core competitiveness
In order to consolidate the foundation of thecompany’sR&D and meet the market demand, the company set up four function-research institutes, by division of responsibility and synergy, which sped up theR&D of new products. Among the developments, the development of ultimate motor made the copper efficiency up to88% and aluminum efficiency up to87.2%. Also, there were 73 projects of noise improvement, of which 64 projects had been recognized by the users. In the ministerial level identification meeting of new products held in November, the company declared seven series of new products, of which there were four series had been assessed as in the leading international level, two series were assessed as in the international advanced level, and a series had been assessed as in the leading domestic level, assessed by the experts that represented the cutting-edge technological level of the industry, leading the future development direction of the industry. The third-generation variable-frequency product being developed reached the highest level of similar products in the world whether in the dimension, performance coefficient, start performance or reliability.
Besides, the company had made new breakthroughs in the filing of patent application. The company applied for 75 patents in the year, of which 56 patents were granted, increased 6 patents compared to the previous year. Among those patents, the “Separating hear-insulation exhausting silencer” refrigeration compressor obtained the patent in the USA, which marked the first overseas patent that the company had obtained.
3. Adhering to the quality as the essence and strengthening the process control
Firstly, the company paid great attention to the construction of the system. Combined with the actual operation, the company revised and improved the management files, then promoted and implemented the files. The company enhanced the requirements of rigid quality management, through “Sunrise Action” and insisting on “Three zero tolerances”, the company carried out monthly training for group leaders and team leaders, enhancing the quality awareness of all the employees. The second is to strengthen the process control. The company strengthened thecompany’s quality culture, paid close attention to the source control and the process of mutation, made the average user offline rate of the three plants of Huangshi, Wuhu and Suqian dropped to 96PPM; widely carried out the mass QC team activities, thus improved the product quality. The QC team of the QC department of Oubao Company
2015 Annual Report
had been assessed as the national excellent quality management team, yet the technical team of thecompany’s assembly workshop had been assessed as the trust-worthy team of national quality management team. The third was to strengthen the management of the supplier. In 2015, the company appraised the supplies to thecompany’s three production bases by means of scores in evaluation in 6-dimension, implemented the grade management, sorted out 23 unqualified suppliers, thus promoted the continuous quality improvement by the suppliers.
4. Adhering to the continuous efficiency improvement and standardizing the performance evaluation At the beginning of the year, the company began to implement the performance evaluation based on the KPI, according to the Management Provisions on Guideline of Staff Performance Evaluation, the company standardized the operation process of performance appraisal, adjusted the ratio of performance pay in the employees' salary, thus mobilized the enthusiasm of the staff. In order to improve the efficiency, the company also focused on optimizing the process, carried out the technological transformation and downsizing personnel for improving the efficiency. By virtue of changing the production organization mode, the company set up the logistics planning department and the manufacturing department, transformed the function and responsibility division, reduced the material backlog, fully utilized the production capability and made the per capita production efficiency increased4.6% year-on year.
II. Production and operation
In the report period, the Company earned operating income of RMB 3.420 billion, which decreased by3.90% year on year. Net profit attributable to the shareholders of the listed company was RMB 69.79 million. which Increased by17.25% year on year. The compressor output was 23.4421 million. which Increased by6.4% year on year. The compressor sales was 24.04 million , which Increased by10.1% year on year.
1.Analysis on principal Business
Sheet of change analysis of relevant items of profit statement and cash flow statement In RMB
|||||
|-|-|-|-|
|Subject|Amount in thisperiod|Amount in lastperiod|Proportion（%）|
|Business income|3,420,131,010.98|3,559,013,065.68|-3.90|
|Business cost|2,909,310,999.92|3,073,946,585.99|-5.36|
|Sales expenses|103,477,015.27|88,372,759.38|17.09|
|Administrative expenses|265,472,065.47|262,258,841.68|1.23|
|Financial expenses|51,615,584.69|49,280,328.08|4.74|
|Cash flow generated by operationactivities, net|501,750,054.81|205,434,440.29|144.24|
|Net cash flow generated by investmentactivities|-465,919,758.68|-246,998,359.47|-88.63|
|Net cash flow generated by financingactivities|49,970,231.52|67,450,305.42|-25.92|
|R& D expenses|136,696,260.57|135,620,731.54|0.79|

 a. Analysis of revenue and cost
The Operating income decreased3.90% over the previous year, Mainly for the changes in product sales structure.
The current business costs decreased year on year, Mainly for the decline of the current material price, gaining a good result in cost control
The current Financial expenses increased year on year, Mainly for the increase in the current interests. The current Net Cash flow generated by operation activities increased year on year, Mainly for the increase in the cash of goods sales and rendering of service as well as the tax refund received
The current net cash flow generated by investment activities decreased year on year, Mainly for the
increase in Alashankou Dongbei Greenergy Co.,Ltd..’s purchase of fixed assets
2015 Annual Report
The current net cash flow generated by financing activities decreased year onyear，Mainly for the increase in theproject’s loan
(1)The Status of key business in terms of industry of business , production and area
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|The Status of key business in terms of industry of business||||||||||||
|Onindustry|Income from keybusiness|Cost of key business||Gross profit（％）||Increase/decrease ofkeybusinessturnover（％）||Increase/decrease ofkeybusinesscost（％）||Increase/decreaseof grossprofit（%）||
|Manufacturing|3,350,641,602.84|2,849,092,133.74||14.97||-3.37||-5.16||1.6||
|The Status of key business in terms of production of business||||||||||||
|Onproduction|Income from keybusiness|Cost of key business||Gross profit（％）||Increase/decrease ofkeybusinessturnover（％）||Increase/decrease ofkeybusinesscost（％）||Increase/decreaseof grossprofit（%）||
|Compressors|2,889,191,020.67|2,483,605,062.55||14.97||-4.73||-6.38||Increasedby 2.45%||
|AutocastingandCompressorscasting|435,550,659.10|353,376,818.32||18.87||4.39||4.44||Decreased by0.03%||
|Photovoltaic powergeneration|25,899,923.07|12,110,252.87||53.24||100||100||Increasedby 100%||
|The status of main operation in terms of Area||||||||||||
|On Area|Income from keybusiness||Cost of key business||Grossprofit（％）||Increase/decrease ofkeybusinessturnover（％）||Increase/decrease ofkeybusinesscost（％）||Increase/decrease ofgrossprofit（%）|
|Domesticsales|2,654,237,976.31||2,220,234,194.58||16.35||-4.62||-7.77||Increased by2.85%|
|Overseassales|696,403,626.53||628,857,939.16||9.7||1.71||5.37||Decreased by3.14%|

 Notes
Explanation of the mainbusiness’ branched industry: The current gross profit rate increases year on year, which is mainly for the decline of the current material price, gaining a good result in cost control.
Explanation of the mainbusiness’ branched product: Alashankou Dongbei Greenergy Co., Ltd. put into production at the current period, where changes occurred in the sales structure.
Explanation of the mainbusiness’ branched region:The current gross profit rate increases in home sales, which is mainly for the decline of the current material cost, gaining a good result in cost control. The current gross profit decreases in abroad sales, which is mainly for the changes in the structure where abroad customer purchases product.
(2)Analytical Statement of Production and Sales Volume
||||||||
|-|-|-|-|-|-|-|
|Main Product|Production|Marketing|Inventory|ProductionGradientYear on Year（%）|ProductionGradientYear on Year（%）|ProductionGradientYear on Year（%）|
|Compressors|23.4421million|24.0474million|1.1144million|6.40|10.1|-35.62|

2015 Annual Report
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|-|-|-|-|-|-|-|
||sets|sets|sets||||
|Auto castingandCompressorscasting|710.5968million pieces|710.5968millionpieces|0|3.47|6.00|0|
|Photovoltaicpowergeneration|32.13millionkwh|32.13millionkwh|0|100|100|0|

(3)Cost analysis sheet
In RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|The status of key business in terms of industry of business||||||||||
|On industry|Items|Amount in thisperiod|Proportion(%)||Amount in lastperiod||Increase/decreaseof key businesscost(%)|Changeof keybusinessprofitover thesameperiod oflastyear(%)|Notes|
|Manufacturing|Cost ofkeybusiness|2,849,092,133.74|85.22||3,004,009,420.05||97.72|-5.16||
|The status of key business in terms of production of business||||||||||
|On production|Items|Amount in this period||Proportion(%)||Amount inlast period|Increase/decreaseof key businesscost(%)|Changeof keybusinessprofitover thesameperiod oflastyear(%)|Notes|
|Compressors|Materials, laborcosts,etc.|2,483,605,062.55||87.17||2,652,923,493.16|88.31|-5.64||
|Auto castingandCompressorscasting|Materials, laborcosts,etc.|353,376,818.32||12.40||338,365,366.81|11.26|4.44||
|Photovoltaicpowergeneration|Materials, laborcosts,etc.|12,110,252.87||0.43||||100||

Notes
The reason of changes in the cost of photovoltaic generation is that Alashankou Dongbei Greenergy Co., Ltd. put into production in 2015.
b.Cost
The selling expense increases by17.09% year on year, which is mainly for the increase in the sales volume, leading to the increase in relevant expense;
The administrative expenses increases by1.23% year on year, Mainly for the increase in the
management’s wage and the technological development expense;
The Financial expenses increases by4.74% year on year, Mainly for the increase in the interest expense
of theproject’s loan.
c.R& D Expenses
2015 Annual Report
In RMB
|||
|-|-|
|Amount of Capitalization Research andDevelopment Investment|136,696,260.57|
|Amount of Capitalization Research andDevelopment Investment||
|Total of Capitalization Research andDevelopment Investment|136,696,260.57|
|Proportion of total R&D expenditure to operatingincome (%)|4.00|
|Number of Research and Development persons(persons)|432|
|Proportion of total R&D expenditure to persons(%)|10.01|
|Proportion of Capitalization Research andDevelopment Investment|0.00|

d.Cash Flow
In RMB
|||||
|-|-|-|-|
|Items|2015|2014|Increase/Decrease(%)|
|Cash flow generated byoperation activities, net|609,224,976.07|205,434,440.29|196.55|
|Net cash flow generated byinvestment activities|-573,394,679.94|-246,998,359.47|132.15|
|Net cash flow generated byfinancing activities|49,970,231.52|67,450,305.42|-25.92|

The cash flow statement in the 2015-annual consolidated financial statements showed: the explanation of change of net cash flow from operating activities: the net cash flow from operating activities increased over the same period last year, which was mainly due to the increase of cash from sales of goods and providing the service and the increase in the tax return being received.
The explanation of change of net cash flow from investing activities: the net cash flow from investing activities increased over the same period last year, which was mainly due to the increase of the purchase of fixed assets by Alashankou Dongbei Greenergy Co., Ltd.
The explanation for the change of net cash flow from financing activities: the net cash flow from financing activities decreased over the same period last year, which was mainly due to the increase of the amount of project loan.
2.Explanation of theProfit’s Significant Changes generated by the Non-core Business
□ Applicable√ Not applicable
3.Analysis on Assets and liabilities
Assets and liabilities statement
In RMB
||||||||
|-|-|-|-|-|-|-|
|Name|Year-end balance|Proportion（%）|Year-end balancein last period|Proportion（%）|Changedproportion（%）|Notes|
|Other accountreceivable|9,304,868.79|0.21|22,782,353.03|0.55|-59.16|Receivethe exportrebate oflast year|
|Other currentassets|86,403,299.73|1.95|3,754,806.36|0.90|130.38|For theincreasein theinput taxof VAT|

2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Long-termequityInvestment|7,028,918.54|0.16|5,349,770.71|0.13|31.39|For theincreasein thatHuangshiAibo RealEstateCo., Ltd.AndHubeiJinlingPrecisionAgriculture Co., Ltd.calculateto confirmtheinvestment incomeaccordingto EquityMethod|
|Fixed assets|1,496,280,148.15|33.69|862,593,882.87|20.80|73.46|For thenewproductionequipmentofDongbeiMechanical &Electrical(Jiangsu)Co., Ltd.andAlashankou DongbeiGreenergyCo., Ltd.|
|Construction inprogress|33,236,407.41|0.75|220,621,843.79|5.32|-84.94|For thathigh-efficient energyagentconstructsthe projectwithproduction line, andthecompletingaccounting ofJiangsuSuqianIndustrialAreaPeriod Ihas beencompleted, whichwastransferred to thefixedasset.|
|Amortisation of|10,789,780.00|0.24|7,726,742.16|0.19|39.64|For the|

2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|long-termexpenses||||||industrialarea’snewpurchaseof seedingand theredecoration ofgreen areaand partialofficebuilding|
|Long-termLoans|356,440,000.00|8.03|121,440,000.00|2.93|193.51|ForAlashankou DongbeiGreenergyCo., Ltd.’spurchaseofproduction andoperationequipmentandaugmentin therequiredcapital ofoperation|
|Deferredincome|108,098,357.37|2.43|30,670,421.67|0.74|252.45|Receivethesubsidy oftheindustrytransformation andupgradingprojectand thespecialfunds ofSpecialPowerSupplyLineConstruction PeriodIII as wellas othersubsidy offinancialinfrastructure|
|OtherComparehensive Income|526,019.67|0.01|168,961.03|0.004%|211.33|For thebalancearisingfrom thetranslationof foreigncurrencyfinancialstatements.|

4.The analysis of business information of the industry
2015 Annual Report
The output of refrigerator compressor of year-2015 was 123.605 million units, an increase of2.9% year-on-year, while the sales was 124.435 million units, an increase of1.5% year-on-year. In 2015, the refrigerator market continued to slump, the competition of the compressor industry had become more intense and the market demand for overall unit was weak. For 2016, the channel change, the adjustment of product structure, the escalation of energy efficiency standards and so forth will pose a challenge to the refrigerator industry, it may also bring new development opportunities, at the same time, the export market continued to grow, which will alleviate the pressure for the compressor industry.
5.The investment of the Company
1.Investments in external parties
(1) Significant equity investment
(2) Significant non-equity investment
(3)Financial Asset and Liabilities Measured by Fair Value
6.The sale of Significant assets and equity
7.Analysis on principal controlling companyand Mutual shareholding companies
||||||||
|-|-|-|-|-|-|-|
|Name|BusinessScope|RegisteredCapital（RMB’0000）|Shareholding Ratio（%）|Totalassets(RMB’0000)|Net assets（RMB’0000）|Net Profit（RMB’0000）|
|Wuhu Abaur Mechanical &Electrical Co.,Ltd|Productionand sales ofrefrigerationcompressors, compressormotor;Related tosmall andmediumsizedcastings,machinerymanufacturing andrelatedtechnologydevelopment,consulting.|5000|75|151,099.79|54,243.33|6,480.98|
|Huangshi DongbeiFoundry Co., Ltd.|Casting ofsmall andmedium-sized castproducts,houserenting andparkingservice.|3,281.40|51.28|43,363.26|10,413.15|893.08|

2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
|Dongbei(Wuhan )TechnologyInnovation Co., Ltd.|Refrigerationcompressors,refrigerationequipment,motors,solar energyproducts,machineryandelectricaltechnologyproducts,electroniccomponents,high-techproducts,softwareproducts,refrigerationproducts andparts, autoparts, newenergyproducts andcomponents,optoelectronic productsand parts,solar powergenerationsystems andsolaroff-gridpowersystemtechnologydevelopment, research,consultingandproduction.|800|100|799.91|787.23|-12.21|
|Dongbei Mechanical &Electrical (Jiangsu) Co.,Ltd.|Productionand sales ofrefrigerationcompressors, compressormotor;high-techproductdevelopment, productionandconsulting.|20000|100|35,527.07|13,012.59|-758.59|
|Huangshi DongbeiInternational Trade Co.,Ltd.|Sales ofRefrigerationCompressor,Refrigeration Equipmentand Parts ,Photoelectric productsand solarwater|USD 1million|100|3,133.79|470.20|-207.92|

2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
||heater ,etc.||||||
|Alashankou DongbeiClean Energy Co., Ltd.|Solar powergenerationsystems andoff-gridsolar powersystemdesign,development,production,sales,installationand service.|16500|80|50,923.27|16,727.57|247.38|

8.The structure of the subject of corporate control
Not applicable
III.Competition and development trends in the industry
1.Competition pattern of pesticide industry
In terms of the competition, the global compressor industry demand is still insufficient and the industry situation is extremely severe. Due to the impact of overcapacity, the competition is becoming increasingly fierce. The refrigerator industry was affected by the macroeconomic, so the domestic sales in 2015 declined significantly, although the exports maintained a growth momentum, it failed to reverse the overall decline in the situation. The market situation of 2016 is not optimistic, the domestic market may decline, even may have a negative growth, yet the industry's globalized integration will continue. In the industrial development trend, high efficiency, frequency-conversion and being-intelligent will be the mainstream of the development of the compressor, also, the new refrigeration technology and the technological innovation will have a profound impact on the long-term development of the industry. With the release of the new national energy efficiency standards, that higher standards and requirements are proposed for household electrical appliances in energy saving and environmental protection. With the promotion and popularization of smart, networked and variable-frequency refrigerators, the market of variable-frequency compressor market is expected to have a rapid growth, thus bringing new market opportunities.
Facing the extremely severe situation of the industry as above-said, the company will adhere to increasing the intensity of technological innovation, focus on the development of variable-frequency and high efficiency compressor, continue to consolidate the domestic market and lay stress on expanding overseas markets, continue to improve the competition ability with differentiated products by means of the adjustment of product structure and seize the opportunity for industrial integration to make a bigger and stronger compressor industry.
2.Development Strategy
Center on benefits, be oriented by the market, satisfyclients’ demand as our endless pursuit, give full play to our core competitiveness inR&D, concentrate efforts on competitive programs, improve market share. Stand firmly on the commanding high point of market, strengthen responsibility and management, get new development in innovation, improve product quality steadily, further reduce cost, and enhance the competitiveness of products. Our goal in 2016 is RMB 3.4 billion revenue and sales of 24million compressors.
3.Operation Plan
(1)Marketing Aspect
1) Precision marketing and the overall linkage; changing domestic sales structure and increasing the exports.
2) Incentive mechanism on innovation: Based on target-oriented, inspire thestaff’s initiative spirits,
raise the sales of commercial compressor and improve the average sales price, so as to ensure fully
utilizing thecompany’s production capability and scale effect.
2.R&D on the product
2015 Annual Report
1) PreciseR&D, improve the target rate of products. Deeply acquaint in the user site, accurately obtained the presented and potential real needs, so as to carry out targeted, representative and foreseeableR&D.
2) Further develop the variable-frequency to enhance the company's development potential. In 2016, the research will be focused onR&D of the third generation variable-frequency products and realize matching the user and providing batch products of it, while the development of mini-type variable-frequency product will be extended from the high-end to the medium-end products, thus to occupy more market share on variable-frequency.
3. Quality Control
Rigid quality management is the guarantee for a stronger company. The first is to pay attention to the source control and the process variation, continuously adhering to the awareness and requirements of "Three terms being not allowed", "Three items in zero tolerance" and "Four things being never neglected”. The second is to do a good job in the control of “gap, volume gap, air gap”. The third is to do a good job in the upgrade work of the measurement system and consolidate the basis of quality control. The fourth is to do a good job in quality control, evaluation and ability improvement of the supply chain.
4. Reinforcing the management and implementing strict assessment
At first, each factory and each system must take the responsibility and have ideas and have the sense of duty. The second is to reinforce the management, having "strict management" thought which shall take into consideration of replacement on typical person without idea change. The third is to improve efficiency and raise the proceeds: plan and organize the implementation work to improve production efficiency and the work efficiency, reduce production costs, improve gross margin, control costs and improve proceeds. The fourth is to improve the assessment and incentive mechanism and determine the remuneration by the performance. During the reporting period, other receivables decreased by59.16% over the same period last year, which was mainly due to receiving the last year's export tax rebate;
4. Potential Risks
5.Other
IV. The explanation and the information about the disclosure not conformed to the Code as the provision of the Code does not applied to the company or because of special reasons
□ Applicable√ Not applicable
2015 Annual Report
V. Important Events
ⅠSpecification of profit distribution of common shares and capitalizing of common reserves 1.Formulation, implementation and adjustment of profit distribution policy of common shares especially cash dividend policy during the reporting period
According to the Notice of Further Implementing the Matters Concerning Distribution of Cash Dividends by Listed Companies (Zheng Jia Fa (2012) No. 37 Document) issued by CSRC on May 4, 2012 and the requirements of Hubei Securities Regulatory Bureau and Shanghai Stock Exchange, the sixth meeting of the fifth board of directors of the Company held examined and adopted the proposal for implementing the dividend distribution document of CSRC and revising the clauses of the Articles of Association of the Company in respect of profit distribution. The adoption of this proposal perfected the Company's profit distribution policy, improved the transparency of profit distribution, protected public investors' lawful rights and interests and enhanced the level of the Company's overall standardized operation.
TheCompany’s 2015 Annual Profit Distribution Plan was deliberated in the
12th
board meeting of the sixth session board of directors on April 21, 2016, audited by Daxin Certified Public Accountants LLP, thecompany’s 2015 annual net profits attributable to shareholders of the parent company were RMB 69,792,841.69 , plus the undistributed profits of RMB 464,995,647.55 in the beginning of the year, and drew surplus reserve of RMB 2,349,281.23, thus the undistributed profits at the end of the period of 2015 were RMB 532,439,208.01.
Considering thecompany’s development and the fund needs for the project construction, thecompany’s 2015 annual profits distribution plan was:The bonus shares allocation and the capitalization from capital public reserve will not be conducted for the company this year.
The plan still needs to be submitted to the general shareholder meeting for deliberation.
2.The Company's plan for preplan for profit distribution or capitalization of capital surplus for the recent three years (including the report period)
In RMB
||||||||
|-|-|-|-|-|-|-|
|Year|Number ofbonus sharesfor every 10shares|Amount ofdividends forevery 10shares|Number ofshares forevery 10shares aftercapitalsurpluscapitalization|Amount ofcash bonus(Included tax)|Net profitattributable toshareholders oflisted company inconsolidatedstatement of bonusyear|Ratio of net profitattributable toshareholders oflisted company inconsolidatedstatement|
|2015|0|0|0|0|69,792,841.69||
|2014|0|0|0|0|59,518,090.82||
|2013|0|1|0|23,500,000|93,824,776.19||

3.In the reporting period, both theCompany’s profit and the parentcompany’s retained earnings were positive however not cash dividend distribution proposal has been put forward.
√ Applicable□ Not applicable
|||
|-|-|
|In the reporting period, it was profitable and the profitsdistributed among common shareholders were positive, but thereason for the profit-sharing scheme by cash was not proposed.|Purpose of and plans to use undistributed profits.|
|audited by Daxin Certified Public Accountants LLP, thecompany’s 2015 annual net profits attributable to shareholdersof the parent company were RMB 69,792,841.69 , plus theundistributed profits of RMB 464,995,647.55 in the beginningof the year, and drew surplus reserve of RMB 2,349,281.23,thus the undistributed profits at the end of the period of 2015|In the face of increasingly fierce competition in thecompressor industry, in order to enhance the company'score competitiveness, increase the R & D investment onsmall and variable-frequency compressor, all need thecompany to continuously invest. At the same time, inthe company's debt structure, the bank loans accountedfor the large proportion, thus it needs the self-own|

2015 Annual Report
|||
|-|-|
|were RMB 532,439,208.01.Considering the company’s development and the fund needsfor the project construction, the company’s 2015 annual profitsdistribution plan was:The bonus shares allocation and thecapitalization from capital public reserve will not be conductedfor the company this year.|funds to reduce financial costs.|

II. Performance of commitments
□ Applicable√ Not applicabler
III.Particulars of fund occupation and progress of debt repayment in the report period
□Applicable√Not applicable
IV.Explanation by the Board of Directors about the “ non-standard audit report ”.
(1)Explanation by the Board of Directors and supervisory committee about the “ non-standard audit report”.
□ Applicable√ Not applicable
（2）Explain change of the accounting policies, accounting estimates and measurement methods
□ Applicable√ Not applicable
(3)Explain retrospective restatement due to correction of significant accounting errors in the reporting period.
□ Applicable√ Not applicable
V. Engagement or dismissal of certified public accountants' firm
In RMB
|||
|-|-|
||Now appointing|
|Domestic certified public accountants engaged by theCompany|Hubei Daxin Certified Public Accountants Co.,Ltd.(Special General Partnership)|
|Remuneration for the domestic certified public accountantsRecompense by the Company|45|
|Time for the domestic cetified public accountants serveasby the company|15|
|Outside accounting firm name||
|Outside accounting firm rewards||
|Outside accounting firm audit years||

||||
|-|-|-|
||Name|Remuneration|
|CPAs firm for the internal control|Hubei Daxin Certified PublicAccountants Co., Ltd.(Special GeneralPartnership)|15|
|Financial Adviser|||
|Sponsor|||

Dismissal of accounting firms note
□ Applicable√ Not applicable
Circumstances change during the accounting firm's audit explanation
2015 Annual Report
None
VI.Risk of suspending or terminating stock listing
1.Reasons for suspending or terminating listing and measures taken to remove such circumstances None
VII.Bankruptcy reorganization
□Applicable√ Not applicable
VIII.Significant lawsuits and arbitrations of the Company
□Applicable√ Not applicable
IX. Penalty to the Company and its directors, supervisors and senior executives, controlling shareholder, actual controller or buyer and particulars about rectification
□Applicable√ Not applicable
X.Integrity of the company and its controlling shareholders and actual controllers
During the reporting period, the company has no stock incentive plan, employee stockownership plan or other employee incentives that have not been implemented.
XI.Implementation of thecompany’s stock incentive plan, employee stock ownership plan or other employee incentives
□Applicable√ Not applicable
XII. Significant related-party transactions
√Applicable□ Not Applicable
(I) Related transactions in connection with daily operation
1.Matters that have been disclosed in provisional announcements and there has been no change or develo p of subsequent implementation.
|||
|-|-|
|Summary of matters|Inquiry indexing|

2.Matters that have been disclosed in provisional announcements and there has been change or develop o f subsequent implementation
3.Asset acquisition and disposal related transactions
□Applicable√ Not applicable
(II) The acquisition of assets or equity, the sale of the occurrence of the associated transactions
1.Matters that have been disclosed in provisional announcements and there has been no change or develop of subsequent implementation.
|||
|-|-|
|Summary of matters|Inquiry indexing|
|Proposal on purchasing related assets of the related partyHuangshi Aibo Technology Development Co., Ltd. byagreement.|Refer to the website of Shanghai Stock Exchange：1. Announcement of Resolutions of the 4th meeting of the|

2015 Annual Report
|||
|-|-|
||sixth board of directors of Huangshi Dongbei ElectricalAppliance Co., Ltd. No.:2015-001.2.Announcement of Huangshi Dongbei ElectricalAppliance Co., Ltd. for the purchase of the asset relatedparty.No：2015-008|
|About Huangshi Dongbei Electrical ApplianceCo.,Ltd purchasing the assets of the related party|Refer to the website of Shanghai Stock Exchange：1. Announcement of Resolutions of the 10th meeting of thesixth board of directors of Huangshi Dongbei ElectricalAppliance Co., Ltd. No.:2015-019.2.Announcement of Huangshi Dongbei ElectricalAppliance Co., Ltd. for the purchase of the asset relatedparty.No：2015-020|

2.Matters that has been in temporary announcement disclosed, but there is progress in the
implementation of the follow-up or change
3.Information not disclosed in temporary announcement
□Applicable√ Not applicable
4. If related to a commitment of business performance, it shall disclose the business performance
realized in the reporting period
(III).Significant related party transactions of common foreign investment
(1).Information not disclosed in temporary announcement
□ Applicable√ Not Applicable
(IV).Related Liabilities
1.Information not disclosed in temporary announcement
□ Applicable√ Not Applicable
(V)Other
XIII. Major contract and implantation
1.Trusteeship, contract and leasing
□ Applicable√ Not applicabler
2. Particulars of guarantee
√Applicable□ Not applicabler
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Particulars about the external guarantee of the Company(Barring the guarantee for the controlling subsidiaries)||||||||||||||
|Nameofguaranteetarget|Relation|warrantee|Amountofguarantee|Occurrencedate(date ofagreement|Guarantee thestartingdate|Guarantee theexpiration date|Typeofguarantee|Whetherterminated|Whetherguarantee exceedthedelinquency date|Guaranteedemurrage|whetheranti-guaranteeexist ornot|Whetherprovidedtorelatedparties|Relationship|

2015 Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||signing)||||||||
|HuangshiDongbeiElectricalAppliance Co.,Ltd.|TheCompany|HuangshiDongbeiElectromechanicalGroupCo.,Ltd.|2,995.00||July16,2015|November3,2016|Guaranteewithjointresponsibility|No|No|N o|Yes|
|HuangshiDongbeiElectricalAppliance Co.,Ltd.|TheCompany|HuangshiDongbeiRefrigeratingCo.,Ltd.|7,317.94||July24,2015|June29,2016|Guaranteewithjointresponsibility|No|No|N o|Yes|
|HuangshiDongbeiElectricalAppliance Co.,Ltd.|TheCompany|Huangshi AiboTechnologyDevelopmentCo.,Ltd.|3,000.00||December28,2015|December17,2016|Guaranteewithjointresponsibility|No|No|N o|Yes|
|HuangshiDongbeiElectricalAppliance Co.,Ltd.|TheCompany|HuangshiDongbeiElectromechanicalGroup.SolarenergyCo.,Ltd.|1,210.00||November11,2015|December17,2016|Guaranteewithjointresponsibility|No|No|N o|Yes|
|Total amount of guarantee in the report (Barring theguarantee for the controlling subsidiaries)||||||14,522.94||||||
|Total balance of guarantee in the report(A)(Barringthe guarantee for the controlling subsidiaries)||||||14,522.94||||||
|Guarantees provided by the Company to its controlled subsidiaries||||||||||||
|Total amount of guarantees provided to subsidiaries inthe report period||||||97,026||||||
|Total balance of guarantees provided to subsidiaries atthe end of the report period(B)||||||93,780||||||
|Total amount of guarantees provided by the company (including the guarantees provided to controlled subsidiaries)||||||||||||
|Total amount of guarantee（A+B）||||||108,302.94||||||
|Proportion of the total guarantee in the net assets ofthe Company(%)||||||108%||||||
|Including：||||||||||||
|Guarantees provided to the shareholders, substantialcontrollers and the related parties（C）||||||14,522.94||||||
|Guarantees provided to objects with over70%inliability/capital rate, directly or indirectly（D）||||||21,613.57||||||
|Amount of guarantee over 50％ of the net asset（E）||||||58,104.81||||||
|Total of the above （C+D+E）||||||79,718.38||||||

2015 Annual Report
||
|-|
|Explanation of unexpired may commitment jointliability guarantee|
|Guarantee explanation|

3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable√ Not applicable
（2）Situation of Entrusted Loans
□ Applicable√ Not applicable
(3)Other investment and financial investment in derivatives
□ Applicable√ Not applicable
4. Other significant contract
XIV.Explanation about other significant matters
□ Applicable√ Not applicable
XV. The information of actively fulfilling the social responsibility
1.Information about the work on social responsibility
(1) The corporate governance: the company conformed to the requirements of The Company Law, The Securities Law, The Code of Corporate Governance for Listed Companies, Shanghai Stock Exchange Stock Listing Rules and other laws and regulations, combined with the actual situation of the company, constantly improved the structure of corporate governance, established a sound internal control system and improved the level of standard operations of the company.
(2) Protecting the rights and interests of shareholders: in 2015, strictly in accordance with the requirements of relevant laws and regulations, the company established and improved the corporate governance structural mechanism of “Three-meeting and One Management” constituted by the general shareholder meeting, board of directors, board of supervisors and the management, formulated and improved thecompany’s internal control system to ensure all the management of the company complied with the rules and laws, thus to prevent the operating risks. Fully utilized the governance mechanism of balance of power based on that the general shareholder meeting is the highest authority, the board of directors is the decision-making authority, the management is the execution authority and the board of supervisors is the supervision authority, ensured the effective implementation of decision-making rights of the board of directors and the supervision rights of the board of supervisors and the operating rights of the management, realized efficient and scientific corporate governance for the company and soundly protected the interests of investors.
(3)Protecting the interests of staff
(a) Staff: Since its establishment, Dongbei Company always adhered to the concept of "jointly doingDongbei’s business, jointly feeling the happiness of working, jointly sharing the fruits of development, to together live a peaceful life, step on a rich road and build our happy homes" , built the harmonious labor relations, fully gave play to thestaff’s enthusiasm in participating thecompany’s management, protected the legitimate rights and interests of the staff, ensured thestaff’s safety and
health and continuously improved for their better life.
(b) Thestaff’s remuneration and the remuneration system: to attract, motivate and retain the talents and
to realize the sustainable development for the company and the staff, the company had established the
2015 Annual Report
performance-based remuneration system of “Fairness within the company, competiveness with the external.” The remuneration-incentive: thestaff’s annual remuneration will be increased by no less than8% year on year, the year-end bonus will be paid and the performance-related pay will be fully paid each month in time according to the performance of the post. The remuneration and benefits: providing the statutory benefits such as the insurances on five items and the housing provident fund and providing other benefits.
(c) Caring for staff: livelihood projects: built thepeople’s livelihood projects: comfortable housing project, project for the care of the aged, ecological and environmental protection engineering; built staff services: mutual caring staff fund, relief fund forstaff’s special difficulty; built pluralized benefits: providing fresh milk and food subsidies, free medical checkup and specific femaleworkers’ medical checkup; set up the caring system: Day of listening thestaff’s heart, staff difficulty relief, aidingstaff’schildren’s for school education, annual leave for staff, excellent staff having salary on self-travel, engineer / Technician subsidies, staff marriage congratulations, reward onstaff’s self-learning etc. (II)If the listed company or its subsidiaries belong to the heavy polluting industry specified by the National Environmental Protection Department, please specify the information of environmental
protection.
The company and its subsidiaries do not belong to the heavy polluting industry specified by the National Environmental Protection Department.
XVI.Information about the corporate bonds
□ Applicable√ Not applicable
2015 Annual Report
VI. Change of share capital and shareholding of Principal Shareholders
Ⅰ.Changes in share capital
1. Changes in share capital
（1）Change in ordinary shares
The Company has not changed ordinary shares of the Report period .
(2)Description of changes in ordinary shares
None
(3)Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year and period(If any)
None
(4)Other information necessary to disclose for the company or need to disclosed under requirement from security regulators
None
2. Change of shares with limited sales condition
□Applicable√Not applicable
Ⅱ.Issuing and listing
Ⅲ.Shareholders and actual controlling shareholder
1.Total shareholders
|||
|-|-|
|Total number of commonshareholders at the end of thereporting period|19,239|
|Total shareholders at the end of the month from the date of disclosing theannual report|19,281|
|The total number of preferred shareholders voting rights restored at period-end||
|Total preferred shareholders at the end of the month from the date ofdisclosing the annual report||

2.Number of shareholders and shareholding
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Particulars about the shareholding of the top ten shareholders||||||||
|Shareholder name|Increase/decrease|Number ofshares held atperiod -end|Proportion(%)|Amount ofrestrictedsharesheld|Pledged or frozen||Shareholder nature|
||||||Status|Quantity||
|Huangshi DongbeiElectromechanical Group Co.,Ltd.|0|117,600,000|50.04%|117,600,000|None||State-owned legalperson|
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|667,302|1,153,801|0.49||Unknown||ForeignLegalperson|
|Sun Menglin|1,957,987|875,227|0.37||Unknown||Domesticnaturalperson|
|Zhou Xiaohai|834,900|834,900|0.36||Unknown||Domesticnaturalperson|

2015 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Hu Jiaying|907,391||828,846|0.35|||Unknown||Domesticnaturalperson|
|Changzhou Zhongke Electricmanufacture Co., Ltd.|0||800,000|0.34|800,000||None||DomesticNon-State-ownedlegalperson|
|ISHARES CORE MSCIEMERGING MARKETS ETF|405,200||405,200|0.17|||Unknown||ForeignLegalperson|
|Jiang Zhongfa|0||400,000|0.17|||Unknown||Domesticnaturalperson|
|Xu Xuan|400,000||400,000|0.17|||Unknown||Domesticnaturalperson|
|Changshu TianyinElectromechanical Co., Ltd.|0||400,000|0.17|400,000||None||DomesticNon-State-ownedlegalperson|
|Shareholding of top 10 shareholders of unrestricted shares||||||||||
|Name of the shareholder||Quantity of unrestricted shares held atthe end of the reporting period||||Share type||||
|||||||Share type||Quantity||
|GUOTAI JUNANSECURITIES(HONGKONG) LIMITED||1,153,801||||Foreign sharesplaced indomesticexchange||||
|Sun Menglin||875,227||||Foreign sharesplaced indomesticexchange||||
|Zhou Xiaohai||834,900||||Foreign sharesplaced indomesticexchange||||
|Hu Jiaying||828,846||||Foreign sharesplaced indomesticexchange||||
|ISHARES CORE MSCI EMERGINGMARKETS ETF||405,200||||Foreign sharesplaced indomesticexchange||||
|Jiang Zhongfa||400,000||||Foreign sharesplaced indomesticexchange||||
|Xu Xuan||400,000||||Foreign sharesplaced indomesticexchange||||
|Shao Liping||395,900||||Foreign sharesplaced indomesticexchange||||
|Xu Xiudi||363,000||||Foreign sharesplaced indomesticexchange||||
|Sun Qunsuo||357,600||||Foreign sharesplaced indomesticexchange||||

2015 Annual Report
||
|-|
|Explanation on associated relationshipamong the aforesaid shareholders|
|Description of the preferred shareholderswhose voting rights were restored and theirnumbers of holding shares|

Shareholding of top 10 shareholders of Conditional shares
In Shares
|||||||
|-|-|-|-|-|-|
|No|Name of the shareholder|Quantity ofconditional sharesheld|Restricted shares can betraded on||Restrictedconditions|
||||Time can betraded|New numberof shares canbe traded||
|1|Huangshi Dongbei ElectromechanicalGroup Co., Ltd.|117,600,000||||
|2|Changzhou Zhongke Electric manufactureCo., Ltd.|800,000||||
|3|Changshu Tianyin Electromechanical Co.,Ltd.|400,000||||
|4|Shaoxing Xingbei Pressing Co., Ltd|400,000||||
|5|Wuhan Xinhua Hardware Factory|400,000||||
|6|Zhejiang Lisheng ElectromechanicalManufacturing Co., Ltd|400,000||||
|7||||||
|8||||||
|9||||||
|10||||||
|Explanation on associated relationship among theaforesaid shareholders||||||

IV.Brief introduction of the controlling shareholder and actual controller
(1) The controlling shareholder
1. Legal
|||
|-|-|
|Name|Huangshi Dongbei Electromechanical Group Co., Ltd|
|Legal representative|Yang Baichang|
|Date of incorporation|January 18,2002|
|Principal business activities|Production and sales of refrigerating compressors and electrical motors ofcompressors, development and consultation of high-tech products.|
|Equity of otherdomestic/foreign listedcompany with sharecontrolling and shareparticipation bycontrolling shareholder in reporting period||
|Other explanation||

2.The block diagram of the property right and control relationship between the Company and controlling shareholders
2015 Annual Report
(2) Actual controller
1.Legal
|||
|-|-|
|Name|China Orient Asset Management Company|
|Legal representative|Zhang Zhiai|
|Date of incorporation||
|Principal business activities|Acqkuisition, Manage and disposal of Bad assets of financial institution|
|Equity of otherdomestic/foreign listedcompany with sharecontrolling and shareparticipation bycontrolling shareholder in reporting period||
|Other explanation||

2. The company does not exist in the actual control of the special instructions
None
3.Index and date of change of the actual controller during the reporting period
None
4.The block diagram of the property right and control relationship between the Company and the actual controller
5.The actual controller controlled the company through trust or other asset management means
None
2015 Annual Report
(3)Other information about the controlling shareholder and the actual controller
None
V. Description of the situation of limit on reducing shares
□ Applicable√Not applicable
2015 Annual Report
VII. Situation of the Preferred Shares
□ Applicable√Not applicable
2015 Annual Report
VIII.Particulars about Directors, Supervisors, Senior Executives and Employees
I.Change of shareholding and particulars about remuneration
2015 Annual Report
1. The change of shareholding of directors, supervisors and senior executives who currently hold their posts or left their posts in the report period and particulars about their remuneration
√Applicable Not applicable
In Shares
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Name|Position|Sex|Age|Beginningdate of officeterm|Expirationdate of officeterm|Shares held attheyear-beginning|Shares heldat theyear-end|Increase ordecrease inthe amount ofshares for theyear|Reason ofthe change|The totalamount ofremunerationreceived fromthe Company inthe reportperiod(RMB’0000)（Before tax）|The totalremunerationfromshareholder orother related-parties in thereport period(RMB’0000)|
|YangBaichang|BoardChairman|Male|60|May 20,2014|November19,2015|0|0|0||||
|ZhuJinming|BoardChairman|Male|52|November27,2015|May 19,2017|0|0|0||||
|LiaoHangang|Director|Male|52|May 20,2014|March 11,2016|0|0|0||||
|LinYinkun|Director,GeneralManager|Male|44|May 20,2014|March 11,2016|0|0|0||45.53||
|Lu Lihua|Director,DeputyGeneralManager andSecretary tothe Board|Female|45|May 20,2014|March 11,2016|0|0|0||29.48||
|RuanZhengya|Director|Male|45|May 20,2014|May 19,2017|0|0|0||||
|ZhaoDayou|Independentdirector|Male|61|May 20,2014|May 19,2017|0|0|0||5||
|LuYanying|Independentdirector|Female|56|May 20,2014|May 19,2017|0|0|0||5||
|YuYumiao|Independentdirector|Male|50|December15,2015|May 19,2017|0|0|0||0||
|XieJincheng|Independentdirector|Male|52|May 20,2014|November19,2015|0|0|0||5||
|Jiang Min|Supervisor|Male|47|May 20,2014|May 19,2017|0|0|0||||
|MaYanping|Supervisor|Male|58|May 20,2014|May 19,2017|0|0|0||11.22||

2015 Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|HuRongzhi|Superisor|Female|39|May 20,2014|May 19,2017|0|0|0||16.26||
|GaoJianjun|Deputy GM|Male|38|April 11,2015|May 19,2017|0|0|0||15.46||
|DouZuowei|Deputy GM|Male|34|April 11,2015|May 19,2017|0|0|0||37.59||
|ZhuYushan|Deputy GM|Male|34|April 11,2015|May 19,2017|0|0|0||25.81||
|Total|/|/|/|/|/||||/|196.35|/|

2015 Annual Report
|||
|-|-|
|Name|Work Experience|
|YangBaichang|He served as board chairman and President of Huangshi Dongbei Electromechanical Co., Ltd.From 2002 toMay 2010, And he served as Board Chairman of Huangshi Dongbei Electromechanical Group Co.,Ltd.and board chairman of the Company since May 2010.|
|ZhuJinming|He has served as director and Vice president Manager of Huangshi Dongbei Electromechanical Co.,Ltd.From 2002 to May 2010, and he served as Director and President of Huangshi DongbeiElectromechanical Group Co., Ltd.and Director of the Company since May 2010. he served as boardchairman of the Company since November 27, 2015.|
|LiaoHangang|He served as board secretary and assistant of General Manager of the Company, He now served as Directorof the Company and Assistant President of Huangshi Dongbei Electromechanical Co., Ltd.|
|Lin Yinkun|He served as deputy director of process workshop , director of Manager office , Minister of quality Dept ofthe Companhy,General Manager of Wuhu Abaur Mechnical & Electrical Co., Ltd. He now served asdirector and General Manager of the Company.|
|Lu Lihua|She served as Director of Fanincial Deptement and assistant of General Manager of Huangshi DongbeiElectrical Appliance Co., Ltd since 2005, She now served as Deputy General Manager ,and Secretary to theBoard and Dorector of the Company.|
|RuanZhengya|He served as general manager of Changzhou Luoke Electric Co., Ltd.since 2004, He was served as directorof the company since May 2008.|
|ZhaoDayou:|He now serves as director of Tourism Planning, Research and Development Center of Three GorgesUniversity, deputy director of Three Gorges Culture, Economy and Social Development Research Center ofHubei University Culture and Social Science Key Research Base, member of Yichang City PlanningCommission and Yichang CPPCC, technical consultant of People's Government of Xiling District,part-time professor of Chongqing Three Gorges College and academic pacesetter of Three GorgesUniversity for regional economy. He now served as Independent director of the Company.|
|LuYanying:|She served as Teacher of School of Management, Huazhong University Of Science & Technology andSchool of Managerment, Wuhan University of Hydraulic and Electrical Engineering,and now acts asprofessor of Economics and Management School of Wuhan University . She served as IndependentDirector of the Company since May 2011.|
|YuYumiao|Had been served as the teaching assistant, lecturer, associate professor in the accounting and auditingdepartment of school of Economics of Wuhan University, professor of accounting department of businessschool of Wuhan University; currently, serves as professor and doctoral tutor in accounting department ofschool of economics and management of Wuhan University; since December 15, 2015, has been served asthe company’s independent director.|
|XieJincheng|He served as President and Secreaary of the party committee of Zhongnan University of Economices andlaw School of continuing Education since 2004.|
|Jiang Min|He served as Director of Financial Deptement of Huangshi Dongbei Electromechanical Group Co., Ltd.,and now acts as assistant president of Huangshi Dongbei Electromechanical Group Co., Ltd，He served asSupervisor of the Company since May 2011.|
|MaYanping|She served as director of Purchase Dept , director of Quality Dept, director of Workshop of HuangshiDongbeiElectrical Appliance Co., Ltd., He now serves as director of Equiptment Dept and supervisor ofthe Company.|
|HuRongzhi|1994 entered Huangshi Dongbei Electrical Appliance Co., Ltd., engaged in sorting parts, product design, technology standards, technical management, project reporting, etc.，He now serves as deputy director ofChief Engineer office and supervisor of the Company.|

2.Directors, supervisors and senior management of equity during the reporting period was granted incentive
□Applicable√Not applicable
II.Particulars about duty performance of directors, supervisors and senior executives who currently hold their posts or left their posts in the report period
1. Posts held at corporate shareholders
√Applicable□Not applicable
||||||
|-|-|-|-|-|
|Name|Name of corporateshareholder|Position|Starting date ofterm of office|Expiry date ofterm of office|
|Yang Baichang|Dongbei Group|Board chairman|||
|Zhu Jinming|Dongbei Group|President|||
|Liao Hangang|Dongbei Group|Board secretary andAssistant president|||
|Jiang Min|Dongbei Group|Assistant president|||
|Posts held at corporateshareholders|||||

2.Posts held at other units
2015 Annual Report
√Applicable□Not applicable
||||||
|-|-|-|-|-|
|Name|Name of other units|Position|Starting dateof term ofoffice|Expiry dateof term ofoffice|
|Ruan Zhengya|Changzhou Luoke ElectricCo., Ltd.|General Manager|||
|Zhao Dayou|Three Gorges University|Professor|||
||Planning, Research andDevelopment Center of ThreeGorges University|Director|||
|Lu Yanying|Wuhan University|Accounting professor ofeconomics andmanagement|||
|Yu Yumiao|Wuhan University|Accounting professor ofeconomics andmanagement|||
||Oceanwide holdings|Independent Director|||
||Semir|Independent Director|||
|Posts held at otherunits|||||

III. Remuneration of directors, supervisors and senior executives
|||
|-|-|
|The decision-making procedure forremuneration of directors,supervisors and senior executives:|The shareholders' general meeting decided the remuneration .|
|The determine of remuneration of thebasis of directors, supervisors andsenior executives|According to the early development of various economic indicators to determinethe end of the completion of the total remuneration|
|Remuneration of directors, supervisors and senior executives|As of the date of this report, the remuneration of directors, supervisors and seniormanagement personnel have been paid.|
|Total actual remuneration of alldirectors, supervisors and seniormanagement in the end of the reportperiod.|Refer to the chapter (1) The change of hold share and remuneration|

IV.Change in directors, supervisors and senior executives
|||||
|-|-|-|-|
|Name|Titles|Change situation|Reason|
|Yang Baichang|Board Chairman|Leave his post||
|Liao Hangang|Director|Leave his post|resignation|
|Lin Yinkun|Director|Leave his post|resignation|
|Lu Lihua|Director|Leave his post|resignation|
|Xie Jincheng|Independent director|Leave his post|resignation|

V. Information about the received punishments from the securities regulatory agencies in the most recent three years
√ Applicable□Not applicable
Due to violations in the information disclosure, on September 10, 2014, the controlling shareholder of the company- Huangshi Dongbei Electromechanical Group Co., Ltd. and the leading executives received the Written Decision of Administrative Penalty-document of No.76-2014 issued by the CSRC. For the detailed information, please see the Announcement of Receiving the Written Decision of Administrative Penalty from CSRC by the Controlling Shareholder- Huangshi Dongbei Electromechanical Group Co., Ltd. disclosed on the Shanghai StockExchange（No：2014-026）.
The company had completed the rectification in 2012 for the punishment items.
VI. The structure of employees in the parent Company and the principal subsidiaries
(1)Particulars of Employees
|||
|-|-|
|The number of employees in the parent Company|2,972|
|The number of employees in the principal subsidiaries|941|
|Total|3,913|
|Parent Company and subsidiaries are required to bear thecosts of retired employees.|270|
|Divided by function||
|Type|Person|
|Production personnel|3170|

2015 Annual Report
|||
|-|-|
|Sales personnel|71|
|Technical personnel|413|
|Financial personnel|32|
|Administrative personnel|227|
|Total|3,913|
|Education status||
|Type|Total（Person）|
|Junior college and above|1,416|
|Technical secondary shool and Senior High School|2,497|
|Total|3,913|

 (2) Remuneration policy
According to business development of company status, developed a level of remuneration and benefits p olicies that adapted to the development stage, is committed to create a happy life for the employees.(3) (3) Training plan
Staff training is divided into two blocks: 1. pre-job training: training new employees to achieve three lev el training.So that new employees are familiar with and agree with the corporate culture to adapt to work as soon as possible. 2.job training: to carry out a variety of training in accordance with the annual traini ng plan .Enhance staff skills and qualities to ensure that employees complete tasks.
2015 Annual Report
IX. Administrative structure
I.Basic state of corporate governance
During the report period, the company has strictly fulfilled the requirements of “Corporate Law”, “Securities Law”, “Articles of Association”, China Securities Regulatory Commission, Shanghai Stock Exchange, the relevant laws and regulations and the regular documents, continuously improved the corporate governance structure, strengthened the information disclosure, standardized thecompany’s operation, and enhanced the governance level of the company. The shareholders meeting, the Board of Directors, the Supervisor Committee and the management of the company shall have clear rights and duties, and the corporate governance structure of the company has basically met the modern enterprise system and the requirements of “Governance Rules of Listed Companies”. To continually strengthen the relevant standard governance, the company has issued “Annual Evaluation Report of Internal Control for Dongbei B Shares in 2012”, “Audit Report of Internal Control for Dongbei B Shares”, “Management Method of Foreign Investment for Dongbei B Shares” and other series of standard governance system of the company according to the relevant laws and regulations of China Securities Regulatory Commission and Shanghai Stock Exchange.
The company has abided by “Registration and Filing System on Learners of Inside Information for Dongbei B Shares”, “Confidential System of Inside Information for Dongbei B Shares” and “Registration and Management System on Learners of Inside Information for Dongbei B Shares” to conscientiously do the registration and record on learners of inside information well, and timely fill in the registration form of inside information learners.During the reporting period, the company strictly in accordance with the requirements of the above system, strict implementation of the relevant provisions, earnestly inside information insider's registration, filing work to strengthen the confidentiality of inside information, to ensure fair information disclosure.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the relevant provisions of CSRC,Any discrepancies should explain why
None
II. Brief Introduction of Shareholders' General Meeting
|||||
|-|-|-|-|
|Sessions|Meeting Date|Disclosure index|Disclosure date|
|Annual Genral Meeting of2014|May 22,2015|www.sse.com.cn|May 23,2015|
|The first provisionalshareholders’ Generalmeeting in 2015|December 14,2015|www.sse.com.cn|December 15,2015|

The statement of Shareholders' General Meeting:
Annual Genral Meeting of 2014;
The Work Report of the Board of Directors For 2014;
The work Report of the Supervisory Committee for 2014;
Proposal for the annual report for 2014 and its summary;
Proposal for the Final Accounting Report for 2014;
Proposal for the Preplan for Profit Distribution for 2014;
Proposal on Amending the Articles of Association and the Rules of Procedure for the General Shareholder Meeting;
To examined the Proposal for Renewing the Engagement of Certified Public Accountants and the Proposal for Internal Audit Institution;
To examined the Proposal Concerning the Credit Line for the Company for 2015;
Proposal on Providing the Guarantee to theCompany’s Controlling Shareholder and its Subsidiaries; Proposal on Providing the Guarantee to theCompany’s Subsidiaries;
Proposal on Providing the Guarantee to Huangshi Aibo Technology Development Co., Ltd;
Proposal on Providing the Guarantee to Jiangsu Luoke Electrical Co., Ltd;
To examined the Proposal for The information of Daily Related Transactions of 2014 and
Announcement of Expected Daily related transactions in 2015;
2014 Annual Report hear Huangshi Dongbei Electrical Appliance Co., Ltd. Board Audit Committee..
Examination of the proposal of the 2014 Annual Report of the Independent Directors' Work ;
The first provisionalshareholders’ General meeting in 2015;
2015 Annual Report
Proposal on Amending the Articles of Association of the Company;
Proposal on the Election of Mr. Zhu Yushan as the Director of the Company's Sixth Session Board of Directors;
Proposal on the Election of Mr. Yu Yumiao as the Independent Director of the Company's Sixth Session Board of Directors.
III. Routine work of the board of directors
(1). Board meetings and resolutions
||||||||||
|-|-|-|-|-|-|-|-|-|
|Name|Whethertheindependentdirectors|Attendance of board meetings||||||Attendanceof thesharehoolders’generalmeeting|
|||The supposedtimes ofattendance thisyear|Attendancein person(times)|Number ofmeetingsattendance bymeans ofcommunication|Attendancethroughagent(times)|Absence(times)|Whether onthereasons whynotpersonallyattendthemeeting oftheboardofdirector fortwicesuccessively.|Theattendancerecord ofsharehoolders’generalmeeting|
|YangBaichang|No|4|4|0|0|0|No|1|
|ZhuJinming|No|6|6|0|0|0|No|2|
|LiaoHangang|No|6|6|0|0|0|No|2|
|Lin Yinkun|No|6|6|0|0|0|No|2|
|Lu Lihua|No|6|6|0|0|0|No|2|
|RuanZhengya|No|6|4|4|2|0|No|1|
|LuYanying|Yes|6|6|4|0|0|No|2|
|ZhaoDayou|Yes|6|6|4|0|0|No|2|
|XieJincheng|Yes|4|4|3|0|0|No|1|
|YuYumiao|Yes|2|2|1|0|0|No|1|

Explanation personally did not attend two consecutive meetings of the Board
None
|||
|-|-|
|The number of the meetings of the board of directorswithin the year|6|
|Of which: Number of field meetings|2|
|Number of meetings held by means of communication|0|
|Site and the number of meetings was held ofcommunication|4|

2015 Annual Report
(2)Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
None
(3)Other
IV.Important observations and recommendations in their duties during the reporting period raised under the Special Committee of the Board
During the reporting period, the Board of Directors under the special committee are in favor of the bill under consideration in the performance of their duties, have not made other comments and suggestions. V.The Supervisory Committee found that the company's explanation risk
During the reporting period, the Supervisory Committee of the company regularly reports, according to the operation, financial condition, as well as related party transactions and other internal control self-assessment report and other work to perform supervisory duties. Supervisory Committee on oversight matters during the reporting period without objection.
VI. The company and its controlling shareholder in business, personnel, assets, organization, finance and other aspects of existence does not guarantee the independence, can not maintain the ability to operate independently of note
The company possesses the independent production capability and independent operating ability, strictly maintained the independence in terms of business, personnel, assets, organizations, finance and so on. There is no circumstance that the company cannot guarantee its independence or self-operating ability separately from its controlling shareholder.
The company's countermeasures, work schedule and follow-up work plan to the existed horizontal competition
None
VII.Particulars about mechanism of appraisal of senior executives and establishment and implementation of stimulation mechanism in the report period
During the reporting period, Dongbei B shares senior management compensation management approach "firm basis for consideration by the Board of Directors and the annual management objectives for senior managers to check and assessment.
VIII. Whether disclose the self-assessment report on internal control
√ Applicable□ Not applicable
The company will disclose theCompany’s 2015 Annual Self-assessment Report on Internal Control at the date of disclosing the annual report, for the full text, please see thecompany’s announcements disclosed on Shanghai Stock Exchange website (www.sse.com.cn).
Description of material deficiencies in the internal control during the reporting period
□ Applicable√ Not applicable
IX. Statement on auditor's report on internal control
The Company prepared and disclosed Report on Self-evaluation of Internal Control for 2015. Hubei Daxin Certified Public Accountants Co., Ltd. audited the internal control of the Company and issued Auditor's Report on Internal Control. The full text of the said report was published at the website of Shanghai Stock Exchange (http: / / www.sse.com.cn). Refer to the appendix for details of the auditor's report on internal control.
Whether the disclosure of internal control audit report: Yes
X.Other
2015 Annual Report
X. Information about the corporate bonds
□ Applicable√ Not applicable
2015 Annual Report
XI. Financial Report
I.Auditor’s Reoprt
√ Applicable□ Not applicable
Da Xin Shen Zi (2016)No.: 2-00825 To all shareholders of Huangshi Dongbei Electrical Appliance Co., Ltd.
We audited accompanying financial statements of Huangshi Dongbei Electrical Appliance Co., Ltd. (hereinafter referred to as "the Company"), including Consolidation and parent Company balance sheet on December 31, 2015, Consolidation and parent Company income statement, Consolidation and parent Company cash flow statement for the year 2015 and Consolidation and parent Company statement of change in shareholders' equity and the notes to financial statements.
I.Management’s responsibility for the financial statements
Preparation of financial statements in accordance with the Accounting Standards for Business Enterprises is the responsibility of the management of the Company. Such responsibility includes: (1) Prepare the financial statements according to business enterprises regulation, so that making reasonable accounting estimate;
(2) design, implementation and maintenance of internal control related to the preparation of financial statements so that financial statements are free from material misstatement caused by fraudulent practices or errors.
II.Auditor’s responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit and to report our opinion solely to you, as a body, and for no other purpose. We conducted our audit in accordance with International Standards on Auditing, Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on theauditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, In making those risk assessments, the auditor considers internal control relevant to theGroup’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theGroup’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
III. Opinion
In our opinion, the financial statements of the Company have been prepared in accordance with the provisions of Accounting Standards for Business Enterprises and give a fair view, in all material aspects, of the financial position of the Company as at December 31, 2015 and its operating results and cash flow for 2015.
Hubei Daxin Certified Public Accountants Co., Ltd. ( Special General Partnership)
Chinese C.P.A.: Zhang Ling
Beijing China Chinese C.P.A.: Jiang Yanhong
April 21, 2016
2015 Annual Report
II.Financial statements
Consolidated Balance Sheet
December 31,2015
Prepared by: Huangshi Dongbei Electrical Appliance Co., Ltd.
In RMB
|||||
|-|-|-|-|
|Items|Notes|Year-end balance|Year-beginning balance|
|Current asset：||||
|Monetary fund||656,113,006.13|653,857,922.46|
|Settlement provision||||
|Outgoing call loan||||
|Financial assets measured at fair value withvariations accounted into current incomeaccount||||
|Derivative financial assets||||
|Bill receivable||589,083,601.27|840,593,346.97|
|Account receivable||894,837,574.04|817,590,563.96|
|Prepayments||121,392,948.44|138,164,402.83|
|Insurance receivable||||
|Reinsurance receivable||||
|Provisions of Reinsurance contracts receivable||||
|Interest receivable||||
|Dividend receivable||27,395,464.63|27,395,464.63|
|Other account receivable||9,304,868.79|22,782,353.03|
|Repurchasing of financial assets||||
|Inventories||407,247,957.17|432,247,546.82|
|Assets held for sales||||
|Non-current asset due in 1 year||||
|Other current asset||86,403,299.73|37,504,806.36|
|Total of current assets||2,791,778,720.20|2,970,136,407.06|
|Non-current assets：||||
|Loans and payment on other’s behalf disbursed||||
|Disposable financial asset||||
|Expired investment in possess||||
|Long-term receivable||||
|Long term share equity investment||7,028,918.54|5,349,770.71|
|Property investment||3,546,791.60|3,711,835.76|
|Fixed assets||1,496,280,148.15|862,593,882.87|
|Construction in progress||33,236,407.41|220,621,843.79|
|Engineering material||||
|Fixed asset disposal||||
|Production physical assets||||
|Gas & petrol||||
|Intangible assets||93,977,307.89|72,432,752.78|
|R & D petrol||||
|Goodwill||||
|Long-germ expenses to be amortized||10,789,780.00|7,726,742.16|
|Differed income tax asset||4,495,776.68|4,512,676.03|
|Other non-current asset||||
|Total of non-current assets||1,649,355,130.27|1,176,949,504.10|
|Total of assets||4,441,133,850.47|4,147,085,911.16|
|Current liabilities||||
|Short-term loans||629,692,080.00|778,628,180.00|
|Loan from Central Bank||||

2015 Annual Report
||||
|-|-|-|
|Deposit received and hold for others|||
|Call loan received|||
|Financial liabilities measured at fair value withvariations accounted into current incomeaccount|||
|Derivative financial liabilities|||
|Bill payable|1,107,083,483.84|1,057,511,876.03|
|Account payable|745,021,206.81|715,143,775.85|
|Advance payment|17,623,716.91|14,085,397.48|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|23,295,962.14|26,745,392.85|
|Tax payable|26,612,899.33|25,721,135.19|
|Interest payable|5,326,171.89||
|Dividend payable|10,009,121.12|10,009,121.12|
|Other account payable|148,495,035.91|205,754,993.86|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Liabilities held for sales|||
|Non-current liability due in 1 year|||
|Other current liability|||
|Total of current liability|2,713,159,677.95|2,833,599,872.38|
|Non-current liabilities：|||
|Long-term loan|356,440,000.00|121,440,000.00|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|30,373,108.31|42,636,983.48|
|Long-term payable employees’s remuneration|||
|Special payable|||
|Expected liabilities|||
|Deferred income|108,098,357.37|30,670,421.67|
|Deferred income tax liability|||
|Other non-current liabilities|||
|Total non-current liabilities|494,911,465.68|194,747,405.15|
|Total of liability|3,208,071,143.63|3,028,347,277.53|
|Owners’ equity|||
|Share capital|235,000,000.00|235,000,000.00|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|190,111,836.26|190,111,836.26|
|Less：Shares in stock|||
|Other comprehensive income|526,019.67|168,961.03|
|Special reserves|||
|Surplus reserves|45,885,564.58|43,536,283.35|
|Common risk provision|||
|Undistributed profit|532,439,208.01|464,995,647.55|
|Total of owner’s equity belong to the parentcompany|1,003,962,628.52|933,812,728.19|
|Minority shareholders’ equity|229,100,078.32|184,925,905.44|
|Total of owners’ equity|1,233,062,706.84|1,118,738,633.63|
|Total of liabilities and owners’ equity|4,441,133,850.47|4,147,085,911.16|

 Legal Representative: Zhu Jinming Person in charge ofaccounting：Lu Lihua
Accounting Dept Leader: Ma Li
2015 Annual Report
Balance sheet of Parent Company
December 31, 2015
Prepared by: Huangshi Dongbei Electrical Appliance Co., Ltd.
In RMB
|||||
|-|-|-|-|
|Items|Notes|Year-end balance|Year-beginning balance|
|Current asset：||||
|Monetary fund||325,305,123.53|358,050,944.54|
|Financial assets measured at fair value withvariations accounted into current incomeaccount||||
|Derivative financial assets||||
|Bill receivable||410,366,705.94|417,492,423.70|
|Account receivable||675,963,140.96|600,503,827.10|
|Prepayments||126,676,895.86|149,897,189.56|
|Interest receivable||||
|Dividend receivable||27,395,464.63|27,395,464.63|
|Other account receivable||1,992,984.09|7,582,803.63|
|Inventories||282,253,627.96|293,552,850.72|
|Assets held for sales||||
|Non-current asset due in 1 year||||
|Other current asset||6,862,142.96|6,552,181.01|
|Total of current assets||1,856,816,085.93|1,861,027,684.89|
|Non-current assets：||||
|Disposable financial asset||||
|Expired investment in possess||||
|Long-term receivable||||
|Long term share equity investment||188,161,074.70|188,161,074.70|
|Property investment||||
|Fixed assets||525,347,049.61|478,823,769.82|
|Construction in progress||22,485,248.13|52,293,230.35|
|Engineering material||||
|Fixed asset disposal||||
|Production physical assets||||
|Gas & petrol||||
|Intangible assets||38,946,773.60|39,570,660.06|
|R & D petrol||||
|Goodwill||||
|Long-germ expenses to be amortized||7,327,096.80|6,497,588.93|
|Deferred income tax asset||3,716,807.47|3,739,887.66|
|Other non-current asset||||
|Total of non-current assets||785,984,050.31|769,086,211.52|
|Total of assets||2,642,800,136.24|2,630,113,896.41|
|Current liabilities||||
|Short-term loans||380,782,400.00|555,166,380.00|
|Financial liabilities measured at fair value withvariations accounted into current incomeaccount||||
|Derivative financial liabilities||||
|Bill payable||644,709,605.88|564,518,095.51|
|Account payable||306,179,192.05|291,220,516.42|
|Advance payment||541,012,376.76|417,897,215.20|
|Employees’ wage payable||9,896,403.02|11,128,452.79|
|Tax payable||22,117,379.74|22,738,424.71|
|Interest payable||3,753,470.19||
|Dividend payable||||
|Other account payable||73,193,970.95|19,004,795.46|

2015 Annual Report
||||
|-|-|-|
|Liabilities held for sales|||
|Non-current liability due in 1 year|||
|Other current liability|||
|Total of current liability|1,981,644,798.59|1,881,673,880.09|
|Non-current liabilities：|||
|Long-term loan||120,000,000.00|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|||
|Employees’ wage payable|||
|Special payable|||
|Expected liabilities|||
|Deferred income|32,581,217.34|23,358,708.34|
|Deferred income tax liability|||
|Other non-current liabilities|||
|Total of Non-current liabilities|32,581,217.34|143,358,708.34|
|Total of liability|2,014,226,015.93|2,025,032,588.43|
|Owners’ equity|||
|Share capital|235,000,000.00|235,000,000.00|
|Other equity instrument|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|90,801,937.51|90,801,937.51|
|Less：Shares in stock|||
|Other comprehensive income|||
|Special reserves|||
|Surplus reserves|45,885,564.58|43,536,283.35|
|Undistributed profit|256,886,618.22|235,743,087.12|
|Total of owners’ equity|628,574,120.31|605,081,307.98|
|Total of liabilities and owners’ equity|2,642,800,136.24|2,630,113,896.41|

 Legal Representative: Zhu Jinming Person in charge ofaccounting：Lu Lihua
Accounting Dept Leader: Ma Li
Consolidated Income Statement
January–December 2015
In RMB
|||||
|-|-|-|-|
|Items|Notes|Year-endbalance|Year-beginningbalance|
|I. Income from the key business||3,420,131,010.98|3,559,013,065.68|
|Incl：Business income||||
|Interest income||||
|Insurance fee earned||||
|Fee and commission received||||
|II. Total business cost||3,343,237,607.68|3,487,445,719.44|
|Incl：Business cost||2,909,310,999.92|3,073,946,585.99|
|Interest expense||||
|Fee and commission paid||||
|Insurance discharge payment||||
|Net claim amount paid||||

2015 Annual Report
||||
|-|-|-|
|Insurance policy dividend paid|||
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and surcharge|12,666,658.75|15,069,492.69|
|Sales expense|103,477,015.27|88,372,759.38|
|Administrative expense|265,472,065.47|262,258,841.68|
|Financial expenses|51,615,584.69|49,280,328.08|
|Asset impairment loss|695,283.58|-1,482,288.38|
|Add：Gains from change of fir value （“-”for loss）|||
|Investment gain（“-”for loss）|1,679,147.83|-219,428.66|
|Incl: investment gains from affiliates|||
|Gains from currency exchange（“-”for loss）|||
|III. Operational profit（“-”for loss）|78,572,551.13|71,347,917.58|
|Add ：Non-operational income|28,269,183.95|32,789,210.62|
|Including：Income from disposal of non-current assets|1,822,796.20|36,947.96|
|Less：Non business expenses|6,048,302.54|9,083,563.75|
|Incl：Loss from disposal of non-current assets|4,660,500.90|6,164,369.73|
|IV.Total profit(“-”for loss)|100,793,432.54|95,053,564.45|
|Less：Income tax expenses|8,326,417.97|11,855,152.57|
|V. Net profit|92,467,014.57|83,198,411.88|
|Net profit attributable to the owners of parent company|69,792,841.69|59,518,090.82|
|Minority shareholders’ equity|22,674,172.88|23,680,321.06|
|VI. Other comprehensive income|357,058.64|362,026.73|
|Net of profit of other comprehensive income attributable to ownersof the parent company.|357,058.64|362,026.73|
|（I）Other comprehensive income items that will not bereclassified into gains/losses in the subsequent accounting period|||
|1.Re-measurement of defined benefit plans of changes in net debt ornet assets|||
|2.Other comprehensive income under the equity method investee can not be reclassified into profit or loss.|||
|（II）Other comprehensive income that will be reclassified into profit orloss.|357,058.64|362,026.73|
|1.Other comprehensive income under the equity method investee can be reclassified into profit or loss.|||
|2.Gains and losses from changes in fair value available for sale financial assets|||
|3.Held-to-maturity investments reclassified to gains and losses of available for sale financial assets|||
|4.The effective portion of cash flow hedges and losses|||
|5.Translation differences in currency financial statements|357,058.64|362,026.73|
|6.Other|||
|7.Net of profit of other comprehensive income attributable to Minority shareholders’ equity|||
|VII. Total comprehensive income|92,824,073.21|83,560,438.61|
|Total comprehensive income attributable to the owner of the parentcompany|70,149,900.33|59,880,117.55|
|Total comprehensive income attributable minority shareholders|22,674,172.88|23,680,321.06|
|VIII. Earnings per share|||
|（I）Basic earnings per share|0.297|0.253|
|(II)Diluted earnings per share|||

The current business combination under common control, the net profits of the combined party before ac hieved net profit of RMB 0, last period the combined party realized RMB 0.
Legal Representative: Zhu Jinming Person in charge ofaccounting：Lu Lihua
Accounting Dept Leader: Ma Li
2015 Annual Report
Income statement of the Parent Company
January -December 2015
In RMB
|||||
|-|-|-|-|
|Items|Notes|Amount of theReport period|Amount ofprevious year|
|I. Income from the key business||2,676,819,821.71|2,765,630,754.80|
|Incl：Business cost||2,445,959,071.52|2,535,308,605.99|
|Business tax and surcharge||6,752,688.50|8,599,598.52|
|Sales expense||58,985,321.21|52,878,410.53|
|Administrative expense||133,049,190.09|138,227,763.77|
|Financial expenses||16,127,140.93|24,223,717.80|
|Asset impairment loss||-153,867.95|-2,462,365.07|
|Add：Gains from change of fir value （“-”for loss）||||
|Investment gain（“-”for loss）|||30,513,197.90|
|Incl: investment gains from affiliates||||
|II. Operational profit（“-”for loss）||16,100,277.41|39,368,221.16|
|Add ：Non-operational income||11,159,909.44|26,710,647.07|
|Including：Income from disposal of non-current assets||602,157.80|11,787,870.78|
|Less：Non business expenses||3,744,294.33|6,580,173.68|
|Incl：Loss from disposal of non-current assets||2,600,036.44|4,045,057.76|
|III.Total profit(“-”for loss)||23,515,892.52|59,498,694.55|
|Less：Income tax expenses||23,080.19|3,577,794.54|
|IV. Net profit（“-”for net loss）||23,492,812.33|55,920,900.01|
|V.Net of profit of other comprehensive income||||
|（I）Other comprehensive income items that will not bereclassified into gains/losses in the subsequent accounting period||||
|1.Re-measurement of defined benefit plans of changes in net debt or net assets||||
|2.Other comprehensive income under the equity method investeecan not be reclassified into profit or loss.||||
|（ II ）Other comprehensive income that will be reclassified into profitor loss.||||
|1.Other comprehensive income under the equity method investeecan be reclassified into profit or loss.||||
|2.Gains and losses from changes in fair value available for sale financial assets||||
|3.Held-to-maturity investments reclassified to gains and losses ofavailable for sale financial assets||||
|4.The effective portion of cash flow hedges and losses||||
|5.Translation differences in currency financial statements||||
|6.Other||||
|VI. Total comprehensive income||23,492,812.33|55,920,900.01|
|VII. Earnings per share：||||
|（I）Basic earnings per share||||
|(II)Diluted earnings per share||||

Legal Representative: Zhu Jinming Person in charge ofaccounting：Lu Lihua
Accounting Dept Leader: Ma Li
2015 Annual Report
Consolidated Cash flow statement
January-December 2015
In RMB
|||||
|-|-|-|-|
|Items|Notes|Amount of the Reportperiod|Amount of previous year|
|I.Net cash flow form business operation||||
|Cash received from sales of products andproviding of services||2,789,146,855.68|2,452,580,693.51|
|Net increase of customer deposits and capitalkept for brother company||||
|Net increase of loans from central bank||||
|Net increase of inter bank loans from otherfinancial bodies||||
|Cash received against original insurancecontract||||
|Net cash received from reinsurance business||||
|Net increase of client deposit and investment||||
|Net increase of trade financial asset disposal||||
|Cash received as interest, processing fee, andcommission||||
|Net increase of inter bank fund received||||
|Net increase of repurchasing business||||
|Tax returned||83,771,977.45|60,989,962.68|
|Other cash received from business operation||73,730,753.03|78,439,848.13|
|Subtotal of cash inflow from business activities||2,946,649,586.16|2,592,010,504.32|
|Cash paid for purchasing of merchandise andservices||1,849,052,183.82|1,816,887,761.14|
|Net increase of client trade and advance||||
|Net increase of savings in central bank andbrother company||||
|Cash paid for original contract claim||||
|Cash paid for interest, processing fee andcommission||||
|Cash paid for policy dividend||||
|Cash paid to staffs or paid for staffs||323,669,734.93|329,099,469.42|
|Taxes paid||71,761,946.45|94,755,885.88|
|Other cash paid for business activities||200,415,666.15|145,832,947.59|
|Subtotal of cash outflow from businessactivities||2,444,899,531.35|2,386,576,064.03|
|Cash flow generated by business operation, net||501,750,054.81|205,434,440.29|
|II. Cash flow generated by investing||||
|Cash received from investment retrieving||||
|Cash received as investment gains||||
|Net cash retrieved from disposal of fixedassets, intangible assets, and other long-termassets||9,715.20|71,178.43|
|Net cash received from disposal of subsidiariesor other operational units||||
|Other investment related cash received||33,874,000.00|7,000,000.00|
|Subtotal of cash inflow due to investmentactivities||33,883,715.20|7,071,178.43|
|Cash paid for construction of fixed assets,intangible assets and other long-term assets||499,803,473.88|254,069,537.90|
|Cash paid at investment||||
|Net increase of loan against pledge||||
|Net cash received from subsidiaries and otheroperational units||||
|Other cash paid for investment activities||||
|Subtotal of cash outflow due to investmentactivities||499,803,473.88|254,069,537.90|

2015 Annual Report
||||
|-|-|-|
|Net cash flow generated by investment|-465,919,758.68|-246,998,359.47|
|III.Cash flow generated by financing|||
|Cash received as investment|21,500,000.00|11,500,000.00|
|Incl: Cash received as investment from minorshareholders|||
|Cash received as loans|1,723,336,780.00|1,712,329,196.00|
|Cash received from bond placing|||
|Other financing –related cash received||22,500,000.00|
|Subtotal of cash inflow from financingactivities|1,744,836,780.00|1,746,329,196.00|
|Cash to repay debts|1,634,108,700.00|1,598,207,616.00|
|Cash paid as dividend, profit, or interests|60,721,378.77|78,778,498.58|
|Incl: Dividend and profit paid by subsidiariesto minor shareholders|||
|Other financing –related cash received|36,469.71|1,892,776.00|
|Subtotal of cash outflow due to financingactivities|1,694,866,548.48|1,678,878,890.58|
|Net cash flow generated by financing|49,970,231.52|67,450,305.42|
|IV. Influence of exchange rate alternation oncash and cash equivalents|476,112.32|168,961.03|
|V.Net increase of cash and cash equivalents|86,276,639.97|26,055,347.27|
|Add：Balance of cash and cash equivalents atthe beginning of term|467,564,876.57|441,509,529.30|
|VI. Balance of cash and cash equivalents at theend of term|553,841,516.54|467,564,876.57|

Legal Representative: Zhu Jinming Person in charge ofaccounting：Lu Lihua
Accounting Dept Leader: Ma Li
Parent Company Cash flow statement
January–December 2015
In RMB
|||||
|-|-|-|-|
|Items|Notes|Amount of the Reportperiod|Amount of previous year|
|I.Cash flow from operating activities||||
|Cash received from sales of goods or rendingof services||1,759,622,841.26|1,286,328,824.52|
|Refunded taxes and levies||77,377,677.45|41,331,321.68|
|Other cash receipts related to operatingactivities||19,885,209.61|20,310,478.17|
|Subtotal of cash inflow||1,856,885,728.32|1,347,970,624.37|
|Cash paid for purchasing commodities andaccepting labor||1,205,995,309.41|958,977,473.49|
|Cash paid to staffs or paid for staffs||139,856,187.55|160,138,880.11|
|Taxes paid||14,114,160.79|25,260,472.69|
|Other cash paid for business activities||91,979,913.82|100,572,498.30|
|Sub-total of cash outflow||1,451,945,571.57|1,244,949,324.59|
|Cash flow generated by business operation,net||404,940,156.75|103,021,299.78|
|II.Cash flow generated by investing||||
|Cash received from investment retrieving||||
|Cash received as investment gains||||
|Net cash retrieved from disposal of fixedassets, intangible assets, and other long-termassets||9,715.20|71,178.43|
|Net cash received from disposal ofsubsidiaries or other operational units||||
|Other investment-related cash received||10,740,000.00|5,000,000.00|
|Sub-total of cash inflow||10,749,715.20|5,071,178.43|

2015 Annual Report
||||
|-|-|-|
|Cash paid for construction of fixed assets,intangible assets and other long-term assets|49,048,240.47|56,109,020.39|
|Cash paid as investment|||
|Net cash received from subsidiaries and otheroperational units||148,000,000.00|
|Other cash paid for investment activities|||
|Sub-total of cash outflow|49,048,240.47|204,109,020.39|
|Net cash flow generated by investment|-38,298,525.27|-199,037,841.96|
|III.Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans|1,043,262,920.00|1,327,321,157.00|
|Other financing –related cash received|||
|Subtotal of cash inflow from financingactivities|1,043,262,920.00|1,327,321,157.00|
|Cash to repay debts|1,337,646,900.00|1,201,384,667.00|
|Cash paid as dividend, profit, or interests|25,328,016.52|52,658,912.99|
|Other financing –related cash received|||
|Subtotal of cash outflow due to financingactivities|1,362,974,916.52|1,254,043,579.99|
|Net cash flow generated by financing|-319,711,996.52|73,277,577.01|
|IV. Influence of exchange rate alternation oncash and cash equivalents|||
|V.Net increase of cash and cash equivalents|46,929,634.96|-22,738,965.17|
|Add: balance of cash and cash equivalents atthe beginning of term|224,771,156.44|247,510,121.61|
|VI ..Balance of cash and cash equivalents atthe end of term|271,700,791.40|224,771,156.44|

Legal Representative: Zhu Jinming Person in charge ofaccounting：Lu Lihua
Accounting Dept Leader: Ma Li
2015 Annual Report
Consolidated Statement on Change inOwners’ Equity
January-December 2015
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Items|Amount in this period|||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||Minorshareholders’ equity|Total ofowners’equity|
||ShareCapital|Other Equity instrusment|||Capitalreserves|Less:Sharesin stock|OtherComprehensiveIncome|Specializedreserve|Surplusreserves|Common riskprovision|Attributableprofit|||
|||preferred stock|Sustainable debt|Other||||||||||
|I.Balance at the end of lastyear|235,000,000.00||||190,111,836.26||168,961.03||43,536,283.35||464,995,647.55|184,925,905.44|1,118,738,633.63|
|Add: Change of accountingpolicy||||||||||||||
|Correcting of previouserrors||||||||||||||
|Merger of entities undercommon control||||||||||||||
|Other||||||||||||||
|II.Balance at the beginningof current year|235,000,000.00||||190,111,836.26||168,961.03||43,536,283.35||464,995,647.55|184,925,905.44|1,118,738,633.63|
|III.Changed in the currentyear|||||||357,058.64||2,349,281.23||67,443,560.46|44,174,172.88|114,324,073.21|
|（1）Total comprehensiveincome|||||||357,058.64||||69,792,841.69|22,674,172.88|92,824,073.21|
|（ II ） Investment ordecreasing of capital byowners||||||||||||21,500,000.00|21,500,000.00|
|1．Ordinary Shares invested by hareholders||||||||||||21,500,000.00|21,500,000.00|
|2．Holders of other equity instruments invested capital||||||||||||||

2015 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|3．Allotment to the owners(or shareholders)||||||||
|4．Other||||||||
|(IV) Internal transferring ofowners’ equity||||2,349,281.23|-2,349,281.23|||
|1. Capitalizing of capitalreserves (or to capitalshares)||||2,349,281.23|-2,349,281.23|||
|2. Capitalizing of surplusreserves (or to capitalshares)||||||||
|3．Making up losses bysurplus reserves.||||||||
|4. Other||||||||
|(VI )Special reserves||||||||
|1. Provided this year||||||||
|2．Used this term||||||||
|（VII）Other||||||||
|IV. Balance at the end ofthis term||||||||
|(V) Special reserves||||||||
|1. Provided this year||||||||
|2．Used this term||||||||
|（VI）Other||||||||
|IV. Balance at the end ofthis term|235,000,000.00|190,111,836.26|526,019.67|45,885,564.58|532,439,208.01|229,100,078.32|1,233,062,706.84|

|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Items|Amount in last year|||||||||||||
||Owner’s equity Attributable to the Parent Company|||||||||||Minorshareholders’ equity|Total ofowners’equity|
||ShareCapital|Other Equity instrusment|||Capitalreserves|Less:Sharesin stock|OtherComprehensiveIncome|Specializedreserve|Surplusreserves|Common riskprovision|Attributableprofit|||
|||preferred stock|Sustainable debt|Other||||||||||
|I.Balance at the end of lastyear|235,000,000.00||||190,111,836.26||-193,065.70||37,944,193.35||434,569,646.73|160,553,100.95|1,057,985,711.59|

2015 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|Add: Change of accountingpolicy||||||||
|Correcting of previouserrors||||||||
|Merger of entities undercommon control||||||||
|Other||||||||
|II.Balance at the beginningof current year|235,000,000.00|190,111,836.26|-193,065.70|37,944,193.35|434,569,646.73|160,553,100.95|1,057,985,711.59|
|III.Changed in the currentyear|||362,026.73|5,592,090.00|30,426,000.82|24,372,804.49|60,752,922.04|
|（1）Total comprehensiveincome|||362,026.73||59,518,090.82|23,680,321.06|83,560,438.61|
|（ II ） Investment ordecreasing of capital byowners||||||692,483.43|692,483.43|
|1．Ordinary Shares invested by hareholders||||||||
|2．Holders of other equity instruments invested capital||||||||
|3．Allotment to the owners(or shareholders)||||||||
|4．Other||||||692,483.43|692,483.43|
|(IV) Internal transferring ofowners’ equity||||5,592,090.00|-29,092,090.00||-23,500,000.00|
|1. Capitalizing of capitalreserves (or to capitalshares)||||5,592,090.00|-5,592,090.00|||
|2. Capitalizing of surplusreserves (or to capitalshares)||||||||
|3．Making up losses bysurplus reserves.|||||-23,500,000.00||-23,500,000.00|
|4. Other||||||||
|(VI )Special reserves||||||||
|1. Provided this year||||||||
|2．Used this term||||||||
|（VII）Other||||||||

2015 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|IV. Balance at the end ofthis term||||||||
|(V) Special reserves||||||||
|1. Provided this year||||||||
|2．Used this term||||||||
|（VI）Other||||||||
|IV. Balance at the end ofthis term|235,000,000.00|190,111,836.26|168,961.03|43,536,283.35|464,995,647.55|184,925,905.44|1,118,738,633.63|

 Legal Representative: Zhu Jinming Person in charge ofaccounting：Lu Lihua Accounting Dept Leader: Ma Li
Statement of change inowner’s Equity of the Parent Company
January-December 2015
in RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Items|Amount in this period|||||||||||
||Sharecapital|Other Equity instrusment|||Capitalreserves|Less:Shares instock|OtherComprehensiveIncome|Specialized reserve|Surplusreserves|Attributable profit|Total ofowners’equity|
|||preferredstock|Sustainabledebt|Other||||||||
|I.Balance at the end of lastyear|235,000,000.00||||90,801,937.51||||43,536,283.35|235,743,087.12|605,081,307.98|
|Add: Change of accountingpolicy||||||||||||
|Correcting of previous errors||||||||||||
|Other||||||||||||
|II.Balance at the beginning ofcurrent year|235,000,000.00||||90,801,937.51||||43,536,283.35|235,743,087.12|605,081,307.98|
|III.Changed in the current year|||||||||2,349,281.23|21,143,531.10|23,492,812.33|
|（1）Total comprehensiveincome||||||||||23,492,812.33|23,492,812.33|
|（II）Investment or decreasing||||||||||||

2015 Annual Report
|||||||
|-|-|-|-|-|-|
|of capital by owners||||||
|1．Ordinary Shares invested by hareholders||||||
|2．Holders of other equity instruments invested capital||||||
|3．Allotment to the owners (orshareholders)||||||
|4．Other||||||
|（III）Profit allotment|||2,349,281.23|-2,349,281.23||
|1.Providing of surplusreserves|||2,349,281.23|-2,349,281.23||
|2．Allotment to the owners (orshareholders)||||||
|3．Other||||||
|(IV)Internal transferring ofowners’ equity||||||
|1. Capitalizing of capitalreserves (or to capital shares)||||||
|2. Capitalizing of surplusreserves (or to capital shares)||||||
|3．Making up losses bysurplus reserves.||||||
|4. Other||||||
|(V) Special reserves||||||
|1. Provided this year||||||
|2．Used this term||||||
|（VI）Other||||||
|IV. Balance at the end of thisterm|235,000,000.00|90,801,937.51|45,885,564.58|256,886,618.22|628,574,120.31|

|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Items|Amount in last year|||||||||||
||ShareCapital|Other Equity instrusment|||Capitalreserves|Less:Shares instock|OtherComprehensiveIncome|Specialized reserve|Surplusreserves|Attributable profit|Total ofowners’equity|
|||preferredstock|Sustainabledebt|Other||||||||
|I.Balance at the end of last|235,000,00||||90,801,937||||37,944,19|208,914,2|572,660,40|

2015 Annual Report
|||||||
|-|-|-|-|-|-|
|year|0.00|.51|3.35|77.11|7.97|
|Add: Change of accountingpolicy||||||
|Correcting of previous errors||||||
|Other||||||
|II.Balance at the beginning ofcurrent year|235,000,000.00|90,801,937.51|37,944,193.35|208,914,277.11|572,660,407.97|
|III.Changed in the currentyear|||5,592,090.00|26,828,810.01|32,420,900.01|
|（1）Total comprehensiveincome||||55,920,900.01|55,920,900.01|
|（ II ） Investment ordecreasing of capital byowners||||||
|1．Ordinary Shares investedby hareholders||||||
|2．Holders of other equity instruments invested capital||||||
|3．Allotment to the owners(or shareholders)||||||
|4．Other||||||
|（III）Profit allotment|||5,592,090.00|-29,092,090.00|-23,500,000.00|
|1.Providing of surplusreserves|||5,592,090.00|-5,592,090.00||
|2．Allotment to the owners(or shareholders)||||-23,500,000.00|-23,500,000.00|
|3．Other||||||
|(IV)Internal transferring ofowners’ equity||||||
|1. Capitalizing of capitalreserves (or to capital shares)||||||
|2. Capitalizing of surplusreserves (or to capital shares)||||||
|3．Making up losses bysurplus reserves.||||||
|4．Other||||||
|(V) Special reserves||||||

2015 Annual Report
|||||||
|-|-|-|-|-|-|
|1. Provided this year||||||
|2．Used this term||||||
|（VI）Other||||||
|IV. Balance at the end of thisterm|235,000,000.00|90,801,937.51|43,536,283.35|235,743,087.12|605,081,307.98|

 Legal Representative: Zhu Jinming Person in charge ofaccounting：Lu Lihua Accounting Dept Leader: Ma Li
2015 Annual Report
III.Basic Information of the Company
I.Company profile
1. Enterprise registration address, organization mode and headquarter address.
Huangshi Dongbei Electrical Appliance Co., Ltd. (hereinafter referred to as the "Company" or the "Company") March 10, 1999 registered in Hubei Province Administration for Industry and Commerce, on July 15, 1999 are traded on the Shanghai Stock Exchange. Companies registered capital of RMB 235 million, equity amounted to 235 million shares, par value of 1 yuan. Of which 117.60 million shares of state-owned legal person shares, held by Huangshi Dongbei Electromechanical Group Co., Ltd ; 2.4 million for corporate shares, by Changzhou Zhongke Electrical Manufacturing Co., Ltd., Changshu Tianyin Electromechanical Co., Ltd., Zhejiang Lisheng Electromechanical Manufacturing Co., Ltd., Shaoxing Xingbei Pressing Co., Ltd., Wuhan Xinhua Pressing Co., Ltd. five promoters hold; 115 million shares of B shares outstanding.
Registered Address: No.6, Jinshan East Road, Economic& Technology Development Zone, Huangshi City, Hubei Province.
Unified social credit code : 91420000710920880L
Registered Capital : RMB 235 million
LegalRepresentative：Zhu Jinming
Business scope: Production and sales of refrigerating compressors and electrical motors of compressors, development, production and consultation of high-tech products.
2.The nature of the company's business and main business activities.
The company's main business for refrigeration compressors, compressor motor production and sales. Major customers for refrigerators, freezers and other refrigeration products manufacturer.
3.The financial report to the approval and the approval date of the financial report.
The financial statements have been approved by resolution of the Board of the Company on April 21, 2016. According to the Articles of Association, the financial statements will be submitted to shareholders for consideration of the General Assembly.
II. Consolidated financial statements
The company will be fully owned subsidiary included in the consolidated financial statements, including Wuhu Abaur Mechnical& Electrical Co., Ltd., Huangshi Dongbei Foundry Co., Ltd,. Dongbei Electromechanical (Jiangsu) Co., Ltd., Dongbei(Wuhan) Technology Innovation Co., Ltd., Alashankou Dongbei Clean Energy Co., Ltd. and Dongbei International Trade Co., Ltd..
IV. Basis for the preparation of financial statements
(1)Basis for the preparation
The preparation of financial statements of the company based on continuous operation.Base on actual transactions and events occurring, according to the ministry of finance issued “Accounting Standards for Enterprises - Basic Standards” specific accounting standards, application guidelines of accounting standards which was promulgated after, accounting standards interpretation and other requirements (hereafter named “Enterprise Accounting Standard”), based on the significant accounting policies described below, and will have the preparation to the accounting estimation.
(2) Continuous operation.
The Company since 12 months after the reporting period does not exist on the company's continued viab ility of significant concern events or circumstances.
V.Significant accounting policies and accounting estimates
2015 Annual Report
Specific accounting policies and accounting estimates tips:
1.Statement for complying with the accourting standard
The financial statements prepared by the Company comply with the requirements of corporate
accounting standards. They truly and completely reflect the financial situations in
December 31, 2015, operating results, equity changes and cash flow, and other relevant information of the company in 2015.
2.Fiscal Year
The Company adopts the Gregorian calendar year commencing on January 1 and ending on December 31 as the fiscal year.
3.Operating cycle
The company has a 12 -month operating cycle, and its assets and liabilities as liquidity criteria for the classification.
4.Standard currency for bookkeeping
The Company takes RMB as the standard currency for bookkeeping.
5.Accounting treatment for corporate merger under the same control or different control
1. corporate merger under the same control
For the merger of enterprises under the same control, if the consideration of the merging is that it makes payment in cash, transfers non-cash assets or bears its liabilitys, we will, on the date of merger, regard the share of the book value of the mergedparty’s net assets in itsowner’s consolidated financial statement as the initial cost of the long-term equity investment. If the consideration of the merging party is that it issues equity instruments, he total face value of stocks issued will be regarded as the capital stock. The difference between the initial cost of the long-term equity investment and book value of consideration (or the face value of stocks issued) shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted.
2. corporate merger under different control
For the merger under different control, the merger cost is the total fair value of the assets paid, liability incurred or bored, and equity securities issued by the merging party to acquire the control right of the merged party on the date of merger. Acquired identifiable asset, liability or contingent assets that conform to conditions will be calculated by fair value on the date of merger. The balance of the merger cost over the mergedparty’s fair value of identifiable net asset usually accounts for the value of goodwill. If the merger cost is lower than the mergedparty’s fair value of identifiable net asset, and remains so after review, the balance accounts for the non-operating revenue.
6.Preparation of consolidated financial statement
1. Scope of consolidated financial statement
We include all subsidiaries (including independent entity under our control) into the scope of consolidated statement, including enterprises under our control, separable parts of investment recipients and structure entity.
2.Unify the accounting policies, balance sheet and accounting period of parent company and subsidiaries.
Subsidiaries and the company adopted accounting policies or be inconsistent in the accounting period, in preparing Consolidation financial statements, in accordance with the company accounting policies or has the necessary adjustments to financial statements of the subsidiary during the accounting period.
3. Offset items in consolidated financial statement
Based on the balance sheet of parent company and subsidiaries, the consolidated financial statement already offsets internal transaction between the parent company and subsidiaries or between subsidiaries. Theowners’ equity of subsidiaries that does not belong to the share of the parent company, as the equity of minority shareholders, will be listed as the “Minority Shareholder Equity” under the item“owners’ equity” in the consolidated balance sheet. Long-term equity investment of the parent company held by
2015 Annual Report
the subsidiary will be regarded as the treasury stock of the business group, and as the deduction item ofowners’ equity, will be listed as “deduction: treasury stock” under the item“owners’ equity” in the consolidated balance sheet.
4. Accounting treatment of merged subsidiaries
For subsidiary obtained by merger under the same control, it is regarded that the merger already happens when the final controller begin the real-time control, its asset, liability, record of performance and cash flow will be included in the consolidated financial statement since the beginning of merger period; for the subsidiary obtained by merger under different control, when preparing the consolidated financial statement, individual financial sheets need to be adjusted on the basis of the fair value of identifiable net asset on the day of merger.
7.Classification of joint arrangements and accounting treatment for joint operation
8. The determination standard in cash and cash equivalents
The cash has been confirmed when the company drew up the cash flow sheet, it referred to the cash can be used to pay the deposit at any time the cash listed in the cash flow statement refers to the cash in store and the cash can be obtained at any time. Cash equivalent means the holding period of the company is short, strong liquidity and low risk of value fluctuation .
9.The foreign currency business and the translation of foreign currency financial statement
（1）The foreign currency translation services
The company with the foreign occurring currency transactions, which used the standard money by the spot exchange rate on the transaction date to enter an item in an account. The balance sheet date, For monetary items of foreign currency, the spot exchange rate at the date of balance sheet shall be used in conversion. The exchange balance due to the difference between the spot exchange rate at the date of balance sheet and the spot exchange rate at initial confirmation or at the date of previous balance sheet shall be attributed to the profit and loss of current period, except the exchange balance due to the special loans of foreign currency meeting the conditions of capitalization shall be attributed to the cost of related assets based on capitalization during the capitalization.For the non-monetary items of foreign currency measured with historical cost, still the spot exchange rate at the date of transaction shall be used, and the amount of recording currency shall not be changed. For the non-monetary items of foreign currency measured with fair value, the spot exchange rate at the date of the fair value confirmation shall be used in conversion, the difference between the amount of recording currency after conversion and that of initial recording currency is made as the change of fair value, which shall be attributed to the profit and loss of current period or confirmed as other composite income and attributed.
（2）The foreign currency financial statements
The company with the subsidiaries, joint ventures and integrated enterprises and so on, will use the different functional currency account after the conversion by the foreign currency financial statements, and will have an accounting practice and an editing to the combined financial statements.
The assets in the balance sheet and liabilities items, by using the spot exchange rate on the balance sheet date, all equity projects except the item of “Undistributed Profits”, other items were calculated by the spot exchange rate. With the income and expense items, it was determined by a systematic and rational approach, and calculated by the approximate exchange rate of the spot exchange rate to convert on the transaction date. The converting differences generated by the foreign currency financial statements, and all equity items in the balance sheet are listed separately.The foreign currency cash flows are determined in accordance with systematical and reasonable way, and calculated by the spot exchange rate on the approximate exchange rate. The impact of the changing exchange rate to the cash amount, is shown separately in the cash flow statement .In disposal of overseas operation, the conversion difference of the foreign currency statements related the overseas operation shall be transferred into the profit and loss of current period in whole or as per the ratio in disposal of the overseas operation.
10.Financial instruments
（1）The classification of financial instruments and recognition
2015 Annual Report
The financial instruments classified as financial assets or financial liabilities. The company became a party in the financial instrument contract; it was recognized as the financial asset or the financial
liability.
The financial assets at the initial recognition are classified as: by measuring at the fair value and its alternation are reckoned into the financial assets of the profit or loss (included trading financial assets and the fair value and its alternation are designated into the financial assets of the profit or loss), the held-to-maturity investment, receivables, and available-for-sale financial assets. Except the receivables beyond the financial assets classification, which depend on the company and their subsidiaries have the intention and ability to hold on. Financial asset calculated by fair value and whose change is included in profit/loss of current period includes the financial asset for short-term sale. Receivable is non-derivative financial asset that has no quotation in the active market and has recognized or recognizable recovering amount. Salable financial asset includes non-derivative financial asset defined as salable type when confirmed initially and financial assets not classified as other types. Held-to-maturity investment refers to non-derivative financial asset with recognized due date, recognized or recognizable recovering amount, and of which the management level has clear purpose and capability to hold to the call date. The financial liabilities at the initial recognition are classified as: by measuring at the fair value and its alternation are reckoned into the financial liabilities of the profit or loss.
(2)Measurement of financial instruments
The financial assets or financial liabilities are initially recognized as the fair value of the company. The subsequent measurement shall be disposed by classification: the financial assets measured with fair value and having its change attributed to the profit and loss of current period, the salable financial assets and the financial liabilities measured with fair value and having its change attributed to the profit and loss of current period, Held-to-maturity investment, loan, receivable and other financial liability will be calculated by amortized cost; equity instrument investment with no quotation in the active market and whose fair value cannot be reliably measured, and derivative financial assets or liabilities that are connected with the said equity investment and need to be settled by delivering it, will be calculated by cost. The profits and losses arising from the change in the fair value of a financial asset or financial liability shall be dealt with according to the following provisions, unless it is related to hedging:①The profits and losses, arising from the change in the fair value of the financial asset or financial liability which is measured at its fair value and of which the change is recorded into the profits and losses of the current period, shall be recorded into the profits and losses of the current period;②The profits and losses arising from the change in the fair value of a sellable financial asset shall be included into other consolidated income .
(3)Recognition of the fair value of financial assets and liabilities
For financial instrument with active market, its fair value is recognized by the quotation in the active market. For financial instrument without active market, its fair value is recognized by the value appraisal techniques, which mainly includes the market approach, income approach and cost approach.（4）The confirmation of the transferring in financial assets and measurement
When the ownership of financial assets is transferring almost all of the risks and rewards, neither transferring nor retaining them, but give up the control of financial assets, and should terminate and recognize it as financial capital . the financial assets satisfied the termination conditions, it should be transferred by measuring; it meant the transferring of the book value in financial assets and consideration received from the transferring, and the balance in the changing amount of fair value which directly included in capital surplus, then reckoned in the profit and loss.
If the transfer of partial financial asset satisfies the conditions to stop the recognition, the entire book value of the transferred financial asset shall, between the portion whose recognition has been stopped and the portion whose recognition has not been stopped, be apportioned according to their respective relative fair value.
When the existing obligations of the financial liabilities have been fully or partly lifted, it should be terminated and confirmed the financial liabilities or a part of it.
（5）The impairment of financial assets
2015 Annual Report
Where a financial asset measured on the basis of post-amortization costs is impaired, an impairment provision shall be made according to the difference of the book value over current value of the predicted future cash flow. If there is any objective evidence proving that the value of the said financial asset has been restored, and it is objectively related to the events that occur after such loss is recognized, the impairment-related losses as originally recognized shall be reversed and be recorded into the profits and losses of the current period.
If there is any objective evidence proving that a sellable financial asset is impaired, the accumulative losses arising from the decrease of the fair value of theshareholder’s equity which was directly included shall be transferred out and recorded into the impairment losses. For the sellable debt instruments whose impairment losses have been recognized, if the fair value has risen subsequently and are related to the subsequent events that occur after the originally impairment losses were recognized, the originally recognized impairment losses shall be reversed and be recorded into the profits and losses of the current period. For a sellable equity instrument investment whose impairment losses have been recognized, if the fair value has risen subsequently, it shall be included directly into theshareholder’s equity.
For the equity instrument investment, we define the “significant” or “prolonged” decline of fair value, calculate cost, recognize the final fair value and define steady decline period according to following standards:
|||
|-|-|
|Significant decline of fair value|The decline of final fair value against cost reaches or exceeds 50%|
|Prolonged decline of fair value|decline for 12 consecutive months|
|Cost calculation|Total of valuable consideration (deduct announced but not issuedcash dividends or due bond interest that hasn’t been drawn) andrelated transaction fee|
|Recognition of final fair value|For financial instrument with active market, its fair value isrecognized by the quotation in the active market. For financialinstrument without active market, its fair value is recognized by thevalue appraisal techniques|
|Steady decline period|Decline continuously or bound range during the decline tendencysustaining period being lower than 20%, and the bound sustainingperiod not exceeding 6 months|

11.Account receivables
The receivables of the company mainly include accounts receivable, long-term receivables and other receivables. If there is an objective evidence in the date of balance sheet of assets and liabilities indicating such financial assets depreciated, the company shall confirm the depreciation losses according to the difference between the book value .
(1)Account receivable belong t individual significance and individually assessed for impairment
|||
|-|-|
|Judgment criteria or amount standard of material specificamount or amount criterial|The receivable with single amount exceeding RMB 5million (including RMB 5 million) shall be confirmed asthe receivable with significant single amount. Thereceivable with single amount exceeding RMB 3 million(including RMB 3 million) shall be confirmed as thereceivable with significant single amount.|
|Provision method with material specific amount andprovision of specific bad debt preparation|The depreciation loss test is conducted separately, and ifan objective evidence indicates depreciation of thereceivable, the company shall confirm the depreciationlosses and appropriate the depreciation provisionsaccording to the difference by which the current value offuture cash flow is lower than its book value.|

(2)Provision for credit risk characteristics portfolio of bad debts:
|||
|-|-|
|Credit risk characteristics of the provision for bad debts method (aging analysis, balance percentagemethod, other methods)||
|Aging analysis method|Items with significant single amount but no need single|

2015 Annual Report
||
|-|
|bad debt provision and items without significant singleamount and big risk|

Appropriate provisions for doubtful accounts according to aging analysis method in group
√Applicable□Not applicable
||||
|-|-|-|
|Account Age|Appropriation Ratio ofReceivables (%)|Appropriation Ration ofOtherReceivables (%)|
|Within 1 year（Including 1 year）|2|2|
|Including：Subitem within 1 year|||
|1－2 years|5|5|
|2－3 years|30|30|
|3－4 years|60|60|
|Over 5 years|||
|Over 4 years|100|100|

 Appropriate provisions for doubtful accounts according to Percintage analysis method ingroup
□ Applicable√ Not applicable
Appropriate provisions for doubtful accounts according to Other analysis method ingroup
□ Applicable√ Not applicable
(3)Account receivable with non-material specific amount but specific bad debt preparation
|||
|-|-|
|Reason for bad debt provision|Difficultly recoverable receivables estimated|
|Method of appropriation of bad debt provision|The depreciation loss test is conducted separately, and ifan objective evidence indicates depreciation of thereceivable, the company shall confirm the depreciationlosses and appropriate the depreciation provisionsaccording to the difference by which the current value offuture cash flow is lower than its book value.|

12.Inventories
（1）Category of inventories
Inventories refers to finished goods or merchandise the company holds for sale during its daily operation, work in process, materials consumed during the process of production or services etc. It mainly include raw materials, materials for cyclic use, materials for consigned processing, packaging materials, low-value consumables, work in process, self-made unfinished goods, finished goods (merchandise inventories) etc.
（2）Accounting for outgoing inventories
Raw materials are accounted for at planned cost, which can be adjusted to be actual cost by reference to the difference between the monthly actual cost carryforward of materials and the planned cost; work in process and merchandise inventory are accounted for at actual cost while outgoing merchandise inventory are accounted for by use of the weighted average method.
（3）Inventory and method of appropriating provisions for inventories write-down
In the date of balance sheet of assets and liabilities, the provision for depreciation of inventories shall be valuated and appropriated as per the lower between the cost and net realizable value of individual inventory; but for the inventories big quantity and varieties and lower unit price, appropriated as per the
type of the inventory.The basis for deciding net realizable value:① the net realizable value of the
finished goods is the balance of estimated selling price reducing by the related tax;② for the material
held for production, if the net realizable value of the finished goods produced by such material is higher
than cost, the material shall still be measured as per cost; if the dropping of the price of material
2015 Annual Report
indicates the net realizable value of finished goods is below cost, the net realizable value shall be decided by the balance of estimated selling price reducing by the estimated cost, estimated selling expenses and related tax.③ there is any material to be sold, the net realizable value is the price selling in the market.
（4）Inventories system
The company implements the perpetual inventories system.
(5) Amortization of low cost and short lived articles and packing
Packaging materials, low-value consumables and other materials for cyclic use are amortized by use of the one-off amortization method.
13.Asset held for sale
14.Long-term equity investments
1.Determining initial investment cost
The initial investment cost of a long-term equity investment acquired through business combination under common control is determined at the book value of the acquired equity while in the case of business combination not under common control the combination costs is taken as the initial investment cost; The initial investment cost of a long-term equity investment acquired by cash is the paid purchasing price;For long-term equity investments acquired by issuing equity securities, the initial investment cost is the fair value of the issued equity securities;Long-term equity investment obtained through debt restructuring, the initial investment cost shall be in accordance with "Accounting Standards for Enterprises No. 12 - Debt restructuring" of the relevant provisions;
For investments acquired through exchange of non-monetary assets or debt restructuring, the initial investment cost is determined in accordance with relevant rules and regulations.
2.Subsequent measurement and recognition of profit and loss
A long-term equity investment of an investing enterprise that is able to control the invested enterprise should be calculated by the cost approach. The long-term equity investment of associated enterprise and joint venture enterprises should be calculated by the equity approach. For investingenterprise’s equity investment to the associated enterprise, if part of it is held indirectly by venture capital institution, mutual foundation, trust company, investment linked insurance foundation or similar entities, no matter those entities have significant influence on this part of investment or not, the investing enterprise should calculate this part of investment by fair value and include its change in the profits and losses according to Accounting Standards for Enterprises No. 22 Recognition and Measurement of Financial Instruments, and calculate the rest part of investment by equity approach.
3.Basis for determining common control or significant influence over invested business
Having joint control over invested enterprise indicates that any activity that has significant influence on the return of a certain arrangement shall not be decided until agreed by parties sharing the control right, including the selling and buying of goods or labor service, management of financial assets, purchase and disposal of assets,R&D and financing activities. Significant influence on invested enterprise refers to holding a voting equity of20% to50% of invested enterprise. Or, though the voting equity accounts less than20% but one of following conditions is met: have representative in the board of directors of similar authority of the invested enterprise; participate in the policy formulation of invested enterprise; assign management personnel for invested enterprise; invested enterprise relies on the technology or technical material of the investing enterprise; important transaction has been made with the invested enterprise.
15.Investing real estate
(1)Section I: If using the cost of metering mode:
Depreciation or amortization method
There are several types of thecompany’s investing real estate: land use rights for lease, buildings for lease and land use rights held for transfer after value being added.The investing real estate of the company is measured at cost initially and then by use of the cost model subsequently.
The lease-out buildings among the investing real estate of the company is depreciated by use of the life averaging method. The detailed accounting policy is the same as that for fixed assets.Depreciation perodfollows：
2015 Annual Report
|||
|-|-|
|Lifetime（years）|Residual value rate（%）|
|40|5|

The investing real estate of the company is measured at cost initially and then by use of the cost model subsequently.
16.Fixed assets
（1）Recognition conditions
Fixed assets refer to as the tangible assets possessed for producing goods, providing labor, lease or management with more than one fisical year of service life. Fixed assets are recognized when satisfying the following conditions.The economic benefits related to such fixed assets can flow into the enterprise.The cost of such fixed assets can be measured reliably.
(2)Depreciation method
||||||
|-|-|-|-|-|
|Classification|Depreciation method|Lifetime（years）|Residual value rate（%）|Annual depreciationrate(%)|
|Houses andbuildings||10-20|5|9.5-4.75|
|Machineryequipments||5-10|5|19-9.5|
|Transportationequipments||4-8|5|23.75-11.88|
|Other equipments||3-5|5|31.67－19.00|

(3)The financing leased fixed assets recognized basis, pricing and depreciation method
The basis for determining a fixed asset under a financing lease is that all the risks and rewards related to the ownership of the fixed asset have been transferred substantively in the lease. A fixed asset under a financing lease is valued initially at theasset’s fair value or the present value of the minimum lease payment as of the lease commencement date, whichever is lower. It is also the book entry value of the asset.For subsequent valuation of a fixed asset under a financing lease, depreciation and impairment provisions are appropriated in accordance with the depreciation policy the same as that for self-owned fixed assets.
17.Construction in progress
There are two categories of construction in progress in the company: self-operated construction and subcontracted-out construction. The company converts its construction in progress into fixed assets when the construction is competed for the intended use. To be eligible for the intended use, the construction in progress must satisfy one of the following conditions:The physical construction (including installation) of the fixed asset has been completed or completed substantially;Trial production or operation has been run and proved that the asset can normally operate or steadily produce qualified products, or the trial operation results show that the asset can normally work or be open for business;Expenses on the constructed fixed asset seldom or almost no longer arise;The purchased or
constructed fixed asset has met or substantially matched the design or contract requirements.
18.Borrowing costs
2015 Annual Report
（1）Recognition criteria for borrowing costs capitalization
The borrowing costs of the company, which can be directly attributed to acquisition, construction or production of capitalization eligible assets, are capitalized and counted in the cost of the relevant asset while other borrowing costs are recognized as expenses when incurred and counted in the profit and loss of a current accounting period. Capitalization eligible assets refer to fixed assets, investing real estate, inventory etc., which need to attain the intended use or sale through acquisition, construction or production activities over a long period.
（2）Calculation of capitalized amount
A capitalization period refers to the period from the commencement to the termination of the capitalization of borrowing costs, which excludes the suspension period of the borrowing costs capitalization.A capitalization suspension period means that the acquisition, construction or production is abnormally interrupted for consecutive three months so the capitalization of the borrowing costs should be suspended.
Calculation of a capitalized amount: for a special borrowing, it is determined at the interest expenses of the special borrowing arising in a current period less the interest income from the credit line balance being deposited in a bank or the income from temporary investment of the balance; for the assets using general borrowings, the capitalized amount is determined by the weighted average excess of theassets’ accumulated expenses over their special borrowings multiplying the capitalization rate of the used general borrowings while the capitalization rate is determined by calculating the weighted average interest rate of general borrowings; for a borrowing at a discount or premium, the actual interest rate method is used to determine amortization for each accounting period and adjust interest amount of each period.
The actual interest rate method is a method of calculating unextinguished discounts or premiums or interest expenses at the actual interest rate. The actual interest rate is the rate used to derive the present book value of the borrowing from discounting of the prospective cash flows arising throughout the expected duration of the borrowing.
19.Biological assets
20.Oil-gas assets
21. .Intangible assets
1.Measurement of intangible assets, Service life and impairment test
（1）Measurement of intangible assets
The company measures its intangible assets initially at cost. A purchased intangible asset has the actual paid price and relevant expenses as its actual cost. For the intangible assets contributed by the investors, the actual cost is the value set by the investment contract or agreement but if the contract or agreement value is not fair, the actual cost is determined at fair value. The cost of the intangible assets developed in house is the total expenses incurred to attain the intended use.
Subsequent measurements are performed on intangible assets in the following ways: for an intangible asset with a finite useful life, the company adopts the straight-line method for its amortization, and the useful life and the amortization method are reviewed at the end of each fiscal year and will be adjusted accordingly if they are different from the original estimates. Intangible assets with an indefinite useful life are not amortized but a review will be conducted so if there are concrete evidences indicating that the useful life is finite, such assets will have an estimated useful life and be amortized by use of the straight-line method.
（2）Recognition of an indefinite useful life
The company is unable to foresee the period that an intangible asset can bring the company economic benefits, or the useful life of the asset is uncertain. Such an asset can be recognized as an intangible asset with an indefinite useful life.Recognition of an indefinite useful life is based on: contractual rights or other legal rights but there are no contractual or legal provisions limiting the service life; the fact that it is impossible to determine the economic life of the intangible asset even when the conditions of the same industry or relevantexperts’ opinions are taken into account.At the end of each year, the indefinite useful life of an intangible asset is reviewed upward from the level of the department that uses the asset, which conducts a basic review, to assess whether there are changes in the basis for recognizing an indefinite
2015 Annual Report
useful life.
2.Internal research and development
The expenses of an in-house R& D project during the research phase are counted in the profit and loss of a current accounting period whenincurred，Those being confirmed in meeting the conditions of the intangible assets shall be transferred to the accounting of intangible assets.
22. Impairment of long-term assets
Long-term assets like long-term equity investment, investment real estate calculated by cost approach, fixed assets, project under construction and intangible assets who have impairment on the day of balance sheet should go through impairment test. If the impairment test result shows that the recoverable amount of the asset is lower than its book value, impairment provision shall be made according to the difference and recorded into the impairment losses.
Recoverable amount is the higher one of the net amount of fair value after deducting disposal fee and the prospective cash flow of asset. Asset impairment provision is calculated and recognized on the basis of a single asset. If it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset group which this asset belongs can be calculated. Asset group is the smallest asset mix that can produce cash inflow independently.
Once the above asset impairment loss is confirmed, the value restored part will not be reversed thereafter.
23. Amortization method of long-term deferred expenses
The long-term expenses to be amortized of the company refer to all the expenses paid but the benefiting period of which is over one year (not including one year). They are mainly parking fee, housing decoration expenses etc. The long-term expenses to be amortized are amortized over the benefiting period of expense items. For the long-term expenses to be amortized that cannot be benefiting in future accounting periods, the amortized value of the expense items are all counted in the profit and loss of a current accounting period.
24. Payroll
(1) Accounting treatment of short-term compensation
During the accounting period of an employee providing services to the company, the short-term compensation is recognized as liabilities, and included in the profits and losses of the current period, except that it is required or allowed by the accounting standards to be included in the asset cost. Welfare expenses for the employees will be included in the profits and losses or related asset cost according to the actual amount. If the welfare expense is nonmonetary, it will be calculated according to the fair value. For social insurances like medical insurance, work injury insurance, maternity insurance and housing accumulation fund paid by the company for employees, as well as labor union expenditure and employee education expenses drawn according to stipulation, during the accounting period of an employee providing services to the company, the corresponding employee compensation will be recognized according to stipulated base and proportion, and corresponding liabilities will be recognized and included into the profits and losses of current period or related asset cost.
(2) Accounting treatment of the welfare after demission
During the accounting period of an employee providing services to the company, the payable amount calculated according to Defined Contribution Plan is recognized as the liabilities, and will be included in the profits and losses of the current period or related asset cost. The formula defined through prospective accumulated unit-of-welfare approach will regard the welfare obligation produced by Defined Benefit Plan as the period of employee providing services, and include it into the profits and losses of the current period or related asset cost.
(3) Accounting treatment of the demission welfare
When the Company provides dismiss welfare for the employee, it should recognize the employee compensation liabilities produced by dismiss welfare on the earlier of the following two dates: when the enterprise cannot withdraw the dismiss welfare provided by labor relationship plan or redundancy proposal; when the enterprise recognizes the cost or fee related to reorganization involving paying dismiss welfare.
(4) Accounting treatment of the welfare of other long-term staffs
Other long-term employee welfare provided by the Company to employees, if meeting Defined Contribution Plan conditions, should be treated according to related stipulations of Defined Contribution Plan. Besides, the net liability or net asset of the other long-term employee welfare should be recognized
2015 Annual Report
and calculated according to related stipulations of Defined Benefit Plan.
25. Estimated liabilities
26. Share-based payment
27. Other financial instruments such as preferred shares and perpetual capital securities
28.Revenue
(1)Sales of Goods
Goods sales revenues are recognized according to the contractual or agreement price received or receivable from the purchasing party when the Goods the company sells satisfy the following conditions:① the main risks and rewards of the ownership of Goods have been transferred to the purchasing party;② the company neither reserves the continuing control right related to the ownership nor exert effective control over the sold merchandise;③ the received amount can be measured reliably;④ the relevant economic benefits are probable to flow into the company;⑤ and the relevant costs incurred or to be incurred can be measured reliably.
The detailed principles for the recognition of revenue from selling goods are:① the goods have been delivered by the Company, installed and verified by the purchaser, the amount of revenue is already confirmed, the payment for goods has been received or is anticipated to be recoverable, and the cost can be measured reliably;② the goods have been delivered by the Company, verified, signed and received by the purchaser, the amount of revenue is already confirmed, the payment for goods has been or is anticipated to be recoverable, and the cost can be measured reliably;③ for revenue from exporting goods, the Company have gone through declaration procedures according to requirements in the contract signed with client and the order, the amount of revenue is already confirmed, the payment for goods has been received or is anticipated to be recoverable, and the cost can be measured reliably.
(2)Alienation of asset use rights
The company recognizes the revenues from alienation of asset use rights when the economic benefits related to the alienation can flow in and the received amount can be measured reliably.
29. Government subsidies
(1) Judgment basis and accounting treatment of government subsidies related to assets
The government subsidies that are obtained by the company used for purchase or construction, or forming long-term assets by other ways are defined as government subsidies pertinent to assets. The government subsidies pertinent to assets are recognized as deferred income. Since the day related assets are available for use, the deferred income will be equally allocated and transferred to profits and losses of the current period according to the anticipated use period of related assets.
(2) Judgment basis and accounting treatment of government subsidies related to profits
The government subsidies other than those pertinent to assets are recognized as the subsidies pertinent to income.
Income related governmental subsidies are treated as follows: The subsidies that are used to compensate relevant expenses or losses of subsequent periods are recognized as deferred income and counted in the profit and loss of a current period when the company recognizing the relevant expenses. Those used to compensate incurred relevant expenses or losses are counted in the profit and loss of a current period. Standards differentiating government subsidies pertinent to assets or to income
If the government documentdoesn’t clearly specify the object of subsidy, the standard of classifying it as the subsidy pertinent to assets or to income:① if the government document specifies that the subsidy is for a specific program, it should be classified according to the proportion of the expense of assets to be formed in the budget of this specific program and the expense of calculated fee, the proportion needs to be reviewed on every balance sheet day and updated if necessary;② if the government document just provides general description for the purpose without specifying any specific program, it belongs to the subsidy pertinent to income.
30. Deferred income tax assets/deferred income tax liabilities
（1）Based on the difference between the book value of assets and liabilities and the taxable base (for items not recognized as assets or liabilities while their taxable base can be determined in accordance
2015 Annual Report
with the provisions of the tax law, the taxable base is the difference), the company calculates and recognizes deferred income tax assets or liabilities at the tax rate applicable when it is time to recover the assets or liquidate the liabilities.
（2）Deferred income tax assets are recognized to the limit of taxable income, which can be achieved probably and be utilized to offset deductible temporary differences. If there are concrete evidences indicating that sufficient taxable income can be achieved probably in a future period to offset deductible temporary differences as of the balance sheet date, then the company will recognize the deferred income tax asset that were not recognized in a previous period. If not, the company will write down the book value of deferred income tax assets.
（3）For the deductible temporary differences related to the investments on the subsidiaries and associate enterprises, deferred income tax liabilities are recognized unless the company can control the reversal time of the temporary differences and such differences probably will not be reversed in the foreseeable future. Deferred income tax assets will be recognized for the deductible temporary differences related to the investments on the subsidiaries and associate enterprises when such differences can be reversed probably in the foreseeable future and it is probable to achieve taxable income in the future, which can be utilized to offset the deductible temporary differences.
31. Lease
1.Accounting treatment of operating lease
Payments made under operating leases straight-line basis over the lease term costs related assets or profit or loss.
2.Accounting treatments of financial lease
The lower of the fair value of leased asset and the current value of lowest lease payment will be regarded as the entry value of leased assets. The difference between the entry value of the leased assets and the lowest lease payment will be regarded as the unsettled financing expense and be amortized by real interest method. The balance of the lowest lease payment deducing unsettled financing expense will be listed as long-term payables.
32. Other significant accounting policies and estimates
33. Significant change of accounting policies and estimates
(1) Change of accounting policies
□ Applicable√ Not applicable
(2) Change of main accounting estimates
□ Applicable√ Not applicable
34.Other
None
VI. Taxation
1. Main taxes and tax rate
||||
|-|-|-|
|Cagegory of taxes|Tax basis|Tax rate|
|VAT|By the difference between the output taxless deductible VAT input provision andpay|6%、13%、17%|
|Business tax|Should be accounted and paid accordingto 5% of taxable income.|5%|
|Tax for city maintenance and|Should be accounted and paid according|7%|

2015 Annual Report
||||
|-|-|-|
|construction:|to 7% of the payable current taxes.||
|Enterprise income tax|Should be accounted and paid accordingof payable income tax.|15%、25%|
|Fees for education:|Should be accounted and paid accordingto 3% of payable current taxes.|3%|

Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate□ Applicable√ Not applicable
2. Tax preference
(1)VAT
The company exports products to implement value-added tax "exemption, credit, refund" policy, our products export tax rebate rate of17%.
(2) Corporate income tax
The company and its subsidiaries Wuhu Abaur Mechanical& Electrical Co.,Ltd.and Huangshi Dongbei Foundry Co., Ltd.reviewed by the relevant departments, have been identified as high-tech enterprises, the current corporate income tax rate is15%.
(3)Other
Wholly owned subsidiary of Dongbei International Trade Co., Ltd. registered in the British Virgin Islands, no tax liability.
VII. Notes on major items in consolidated financial statements
1. Monetary funds
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Cash on hand|10,570.37|2,316.67|
|Bank deposit|374,053,584.61|289,246,889.74|
|Other monetary funds|282,048,851.15|364,608,716.05|
|Total|656,113,006.13|653,857,922.46|
|Indluding：The total amountof deposit abroad|9,055,365.20|8,948,245.09|

2. Financial assets measured by fair value and the changes be included in the current gains and losses□ Applicable√ Not applicable
3. Derivative financial assets
□ Applicable√ Not applicable
4.Bill receivable
(1) Bill receivable listed by category
√Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Bank acceptance bill|574,409,601.27|730,254,692.40|
|Trade acceptance bill|14,674,000.00|110,338,654.57|
|Total|589,083,601.27|840,593,346.97|

(2) Notes receivable pledged by the Company at the period-end
2015 Annual Report
√Applicable□Not applicable
In RMB
|||
|-|-|
|Items|Amount|
|Bank acceptance bill|3,838,000|
|Trade acceptance bill||
|Total|3,838,000|

 (3) Notes receivable which had endorsed by the Company or had discounted and had not due on the balance sheet date at the period-end
√Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Amount of recognitiontermination at the period-end|Amount of not terminatedrecognition at the period-end|
|Bank acceptance bill|54,731.86||
|Trade acceptance bill|||
|Total|54,731.86||

(4) Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or agreement
□ Applicable√ Not applicable
5. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Classification|Closing balance|||||Opening balance|||||
||Book Balance||Bad debt provision||Bookvalue|Book Balance||Bad debt provision||Bookvalue|
||Amount|Proportion(%)|Amount|Proportion(%)||Amount|Proportion(%)|Amount|Proportion(%)||
|Accountsreceivable ofindividualsignificance andsubject toindividualimpairmentassessment|||||||||||
|Accountsreceivablesubjecttoimpairmentassessment bycredit riskcharacteristicsof a portfolio|925,556,531.27|100.00|30,718,957.23|3.32||8 46,483,617.99|100.00|28,893,054.03|3.41||
|Accountsreceivable ofindividualinsignificance butsubject otindividualimpairmentassessment|||||||||||
|Total|925,556,531.27|/|30,718,957.23|/||8 46,483,617.99|/|28,893,054.03|/||

2015 Annual Report
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
□ Applicable√ Not applicable
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√Applicable□Not applicable
In RMB
|||||
|-|-|-|-|
|Aging|Closing balance|||
||Account receivable|Bad debt provision|Withdrawal proportion|
|Subtotal within 1 year|910,642,707.53|18,212,691.46|2|
|1-2 years|1,105,127.06|55,256.35|5|
|2-3 years|1,939,553.23|581,865.97|30|
|3-4 years|||60|
|Over 4 years|11,869,143.45|11,869,143.45|100|
|Total|925,556,531.27|30,718,957.23||

Notes：
Items with significant single amount but no need single bad debt provision and items without significant single amount and big risk
In the groups, accounts receivable adopting other methods to accrue bad debt provision:
□ Applicable√ Not applicable
(2)Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB1,825,903.20; the amount of the reversed or collected part during the reporting period was of RMB 000.
Of which the significant amount of the reversed or collected part during the reporting period was:
√Applicable□Not applicable
(3) The actual write-off accounts receivable
□ Applicable√ Not applicable
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
|||
|-|-|
|Closingbalance|Proportion (%)|
|159,624,217.35|17.25|
|54,140,813.91|5.85|
|49,337,189.54|5.33|
|39,377,937.80|4.25|
|33,738,555.45|3.65|
|336,218,714.05|36.33|

 (5) Account receivable which terminate the recognition owning to the transfer of the financialassets： (6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable
6. Prepayment
(1) List by aging analysis:
In RMB
||||
|-|-|-|
|Aging|Closing balance|Opening balance|

2015 Annual Report
||||||
|-|-|-|-|-|
||Amount|Proportion(%)|Amount|Proportion(%)|
|Within 1 year|83,649,059.69|68.91|132,231,949.55|95.71|
|1-2 years|35,727,257.05|29.43|5,412,335.25|3.92|
|2-3 years|1,956,513.67|1.61|280,000.00|0.20|
|Over 3 years|60,118.03|0.05|240,118.03|0.17|
|Total|121,392,948.44|100.00|138,164,402.83|100.00|

 Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
||||
|-|-|-|
|Debt unit|Closingbalance|Aging|
|Sumeida InternationalTechnology Trade Co., Ltd.|11,422,995.83|1-2 years|
|Huangshi Times Real estateDevelopment Co., Ltd.|9,603,100.00|1-2 years|
||21,026,095.83||

(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
||
|-|
|Closing balance|
|11,486,304.00|
|11,422,995.83|
|9,603,100.00|
|9,315,761.10|
|6,491,090.00|
|48,319,250.93|

7. Interest receivable
□ Applicable√ Not applicable
8. Dividend receivable
√Applicable□Not applicable
(1) Dividend receivable
In RMB
||||
|-|-|-|
|Items(Or investees)|Closing balance|Opening balance|
|Huangshi Dongbei ElectromechanicalGroup Solar Energy Co., Ltd. Dividend|27,395,464.63|27,395,464.63|
|Total|27,395,464.63|27,395,464.63|

 (2) Significant dividend receivable aged over 1 year
√Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|Items(or investees)|Closing balance|Aging|Reason|Whether occurredimpairment and itsjudgment basis|

2015 Annual Report
||||||
|-|-|-|-|-|
|Huangshi DongbeiElectromechanical GroupSolar Energy Co., Ltd.|27,395,464.63|1-2 years||No|
|Total|27,395,464.63|/|/|/|

9. Other accounts receivable
(1) Other accounts receivable disclosed by category
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Category|Closing balance|||||Opening balance|||||
||Book Balance||Bad debtprovision||Bookvalue|Book Balance||Bad debt provision||Bookvalue|
||Amount|Proportion(%)|Amount|Proportion(%)||Amount|Proportion(%)|Amount|Proportion(%)||
|Otheraccountsreceivable ofindividualsignificanceand subjectto individualimpairmentassessment|||||||||||
|Otheraccountsreceivablesubjecttoimpairmentassessment by creditriskcharacteristics of aportfolio|9,733,579.48|100.00|428,710.69|4.40||19 ,102,883.88|78.48|1,559,330.32|8.16||
|Otheraccountsreceivable ofindividualinsignificance but subjectot individualimpairmentassessment||||||5 ,238,799.47|21.52||||
|Total|9,733,579.48|/|428,710.69|/||24 ,341,683.35|/|1,559,330.32|/||

Other accounts receivable with significant single amount for which bad debt provision separately
accrued at the period-end
□ Applicable√ Not applicable
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:√Applicable□Not applicable
In RMB
|||||
|-|-|-|-|
|Aging|Closing balance|||
||Other account receivable|Bad debt provision|Withdrawalproportion(%)|
|Withn 1 year||||

2015 Annual Report
|||||
|-|-|-|-|
|Incluidng：Subitem withn 1 year||||
|Subtotal within 1 year|2,765,445.53|79,354.00|2|
|1-2 years|6,967,133.95|348,356.69|5|
|2-3 years|||30|
|Over 3 years||||
|3-4 years|||60|
|Over 4 years|1,000.00|1,000.00|100|
|4-5 years||||
|Over 5 years||||
|Total|9,733,579.48|428,710.69||

In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable√ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
□ Applicable√ Not applicable
(2)Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the reporting period was of RMB0；the amount of the reversed or collected part during the reporting period was of RMB 1,121,643.59.
Of which the significant amount of the reversed or collected part during the reporting period was of RMB 000:
□ Applicable√ Not applicable
(3) The actual write-off other accounts receivable
□ Applicable√ Not applicable
(4) Other accounts receivable classified by the nature of accounts
√Applicable□Not applicable
In RMB
||||
|-|-|-|
|Nature|Closing book balance|Pening book balance|
|Petty cash|1,150,382.33|1,202,831.99|
|Deposit|7,181,787.71|7,498,823.60|
|Export rebates recei vable|790,836.12|5,904,874.48|
|Other current account|610,573.32|9,735,153.28|
|Total|9,733,579.48|24,341,683.35|

 (5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party√Applicable□Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
|Name||Nature|Closingbalance|Aging|Proportion of the totalyear end balance of theaccounts receivable(%)|Closing balance ofbad debts provision|
|1.|Shanghai Far|Deposit|6,428,570.00|1-2 years|66.05|321,428.50|
|Eastern|||||||
|International|||||||
|Leasing Co., Ltd.|||||||
|2. Export rebatesrecei vable||Export taxreimburserment|790,836.12|Within 1 year|8.12|15,816.72|
|3. Wuhu ZhongranCity DevelopmentCo., Ltd.||Deposit|488,650.00|Within 1 year|5.02|9,773.00|

2015 Annual Report
|||||||
|-|-|-|-|-|-|
|4.TechnologyDevelopment Dept|Petty cash|300,000.00|Within 1 year|3.08|6,000.00|
|5.BeijingLanyutianhongTechnology Co.,Ltd.|Current account|141,000.00|Within 1 year|1.45|2,820.00|
|Total|/|8,149,056.12|/|83.72|355,838.22|

 (6) Accounts receivable involved with government subsidies
□ Applicable√ Not applicable
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts receivable
10.Inventories
（1）Inventories types
In RMB
||||||||
|-|-|-|-|-|-|-|
|Items|Closing balance|||Opening balance|||
||Book balance|Provision forbad debts|Book value|Book balance|Provision forbad debts|Book value|
|Raw materials|38,845,070.54||38,845,070.54|32,906,403.42||32,906,403.42|
|Processingproducts|171,977,417.36||1 71,977,417.36|169,715,083.03||1 69,715,083.03|
|Stock goods|196,425,469.27||1 96,425,469.27|229,626,060.37||2 29,626,060.37|
|Turnover materials|||||||
|Consumptivebiologicalassets|||||||
|Construction contract has been completed unsettled assets|||||||
|Total|407,247,957.17||4 07,247,957.17|432,247,546.82||4 32,247,546.82|

 (2) Notes of the closing balance of the inventory which includes capitalized borrowing expense
(3) Completed unsettled assets formed from the construction contact at the period-end
□ Applicable√ Not applicable
11. Assets divided as held-to-sold
□ Applicable√ Not applicable
12. Non-current assets due within 1 year
13. Other current assets
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|VAT input tax|86,403,299.73|37,504,806.36|

2015 Annual Report
||||
|-|-|-|
|Total l|86,403,299.73|37,504,806.36|

 14. Available-for-sale financial assets
□ Applicable√ Not applicable
15. Investment held-to-maturity
□ Applicable√ Not applicable
16. Long-term accounts receivable
□ Applicable√ Not applicable
17.Long-term equity investment
√ Applicable□ Not applicable
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee|Openingbalance|Increase/decrease||||||||Closingbalance|Closingbalance ofimpairmentprovision|
|||Addinvestment|Reducedinvestment|Gainsandlossesrecognizedundertheequitymethod|Adjustmentofothercomprehensiveincome|Chinges ofothereqiuty|Cashbonusorprofitsannounced toissue|Withdrawal ofimpairmentprovision|Other|||
|I. Jointventures||||||||||||
|Subtotal||||||||||||
|II.Associatedenterprises||||||||||||
|Huangshi AiboPropertyCo.,Ltd.|1,341,301.99|||3,105,449.39||||||4,446,751.38||
|HubeiJinlingPrecisionAgriculture Co.,Ltd.|4,008,468.72|||-1,426,301.56||||||2,582,167.16||
|Subtotal|5,349,770.71|||1,679,147.83||||||7,028,918.54||
|Total|5,349,770.71|||1,679,147.83||||||7,028,918.54||

18. Investment property
√ Applicable□ Not applicable
Measurement model of investment real estate
(1) Investment property adopted the cost measurement mode
In RMB
2015 Annual Report
||||||
|-|-|-|-|-|
|Items|Houses andbuilding|Land use right|Construction inprogress|Total|
|I.Originalbookvalue|||||
|1. Year-beginning balance|6,934,630.00|||6,934,630.00|
|2. Increased at this period|||||
|(1)Outsourcing|||||
|(2)Inventory /Fixed assets/ projectunder construction|||||
|(3)The merger of enterprisesincrease|||||
|3. Decrease at this period|||||
|(1)Disposition|||||
|(2)Other Out|||||
|4.Closing balance|6,934,630.00|||6,934,630.00|
|II.Total accumulated depreciationaccumulated amortization|||||
|1. Year-beginning balance|3,222,794.24|||3,222,794.24|
|2. Increased at this period|165,044.16|||165,044.16|
|(1) Withdrawal|165,044.16|||165,044.16|
|3. Decrease at this period|||||
|(1)Disposition|||||
|(2)Other Out|||||
|4. Year-end balance|3,387,838.40|||3,387,838.40|
|III. Impairment allowance|||||
|1. Year-beginning balance|||||
|2. Increased at this period|||||
|(1) Withdrawal|||||
|3. Decrease at this period|||||
|(1)Disposition|||||
|(2)Outsourcing|||||
|4. Year-end balance|||||
|IV.Book value|||||
|1. Closing book value|3,546,791.60|||3,546,791.60|
|2. Book value at year beginning|3,711,835.76|||3,711,835.76|

(2) Details of investment property failed to accomplish certification of property
2015 Annual Report
□ Applicable√ Not applicable
19. Fixed assets
(1) List of fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
|Items|House andbuilding|Machineryequipment|Transporationeqiupment|Other equipment|Total|
|I.Originalbookvalue||||||
|1. Year-beginning balance|479,623,376.57|929,612,150.51|24,286,309.83|25,724,952.29|1,459,246,789.20|
|2. Increased at this period|108,378,246.23|643,014,077.93|1,254,107.84|15,910,664.45|768,557,096.45|
|（1）Purchase|275,616.11|115,128,106.46|1,254,107.84|15,832,459.32|132,490,289.73|
|（2）Transferred fromconstruction in -progress|108,102,630.12|527,885,971.47||78,205.13|636,066,806.72|
|The merger of enterprisesincrease||||||
|3. Decreased at this period||35,051,617.84|474,209.32|354,376.44|35,880,203.60|
|（1）Disposal or scrap||35,051,617.84|474,209.32|354,376.44|35,880,203.60|
|4 Year-end balance|588,001,622.80|1,537,574,610.60|25,066,208.35|41,281,240.30|2,191,923,682.05|
|II. Accumulated depreciation||||||
|1. Year-beginning balance|123,983,267.24|432,306,975.20|20,495,252.94|19,867,410.95|596,652,906.33|
|2. Increased at this period|24,650,821.51|87,520,925.04|1,322,909.39|5,714,242.94|119,208,898.88|
|(1) Withdrawal|24,650,821.51|87,520,925.04|1,322,909.39|5,714,242.94|119,208,898.88|
|3.Decreased at tthis period||19,467,371.09|413,587.72|337,312.50|20,218,271.31|
|（1）Disposal or scrap||19,467,371.09|413,587.72|337,312.50|20,218,271.31|
|4. Year-end balance|148,634,088.75|500,360,529.15|21,404,574.61|25,244,341.39|695,643,533.90|
|III. Impairment allowance||||||
|1. Year-beginning balance||||||
|2. Increased at this period||||||
|(1) Withdrawal||||||
|3. Decreased at this period||||||
|（1）Disposal or scrap||||||
|4. Year-end balance||||||
|IV.Book value||||||
|1. Closing book value|439,367,534.05|1,037,214,081.45|3,661,633.74|16,036,898.91|1,496,280,148.15|
|2. Book value at yearbeginning|355,640,109.33|497,305,175.31|3,791,056.89|5,857,541.34|862,593,882.87|

 (2) List of temporarily idle fixed assets
□ Applicable√ Not applicable
(3) Fixed assets leased in from financing lease
□ Applicable√ Not applicable
(4) Fixed assets leased out from operation lease
2015 Annual Report
□ Applicable√ Not applicable
(5) Details of fixed assets failed to accomplish certification of property
□ Applicable√ Not applicable
Othernotes：
20. Construction in progress
√Applicable□Not applicable
(1) List of construction in progress
In RMB
||||||||
|-|-|-|-|-|-|-|
|Items|Balance in year-end|||Balance in year-begin|||
||Book balance|Bad debtpovision|Book Value|Book balance|Bad debtpovision|Book Value|
|Equipment installation|1,912,592.32||1,912,592.32|1,639,042.30||1,639,042.30|
|The Phase III project ofHuangjianshan|22,410,618.22||2 2,410,618.22|17,401,445.29||1 7,401,445.29|
|ERP software installation project||||882,497.11||882,497.11|
|Alashankou plant and supportingfacilities projects|4,722,513.10||4,722,513.10|110,860,006.80||11 0,860,006.80|
|Energy efficient commercialproduction line installation||||33,717,629.66||3 3,717,629.66|
|Jiangsu Suqian Industrial Park Iphase construction project||||49,772,154.37||4 9,772,154.37|
|Dongbei (Wuhan) officebuilding renovation project||||6,349,068.26||6,349,068.26|
|Lijiafang relocation project|4,190,683.77||4,190,683.77||||
|Total|33,236,407.41||3 3,236,407.41|220,621,843.79||22 0,621,843.79|

 (2) Changes of significant construction in progress
√Applicable□Not applicable
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name|Budget|Amount atyearbeginning|Increase atthis period|Transferredto fixedassets|Otherdecrease|Balance inyear-end|Proportion(%)|Progress ofwork|Capitalisationofinterestaccumulatedbalance|Including：Currentamount ofcapitalization ofinterest|Capitalization rateofinterest(%)|Sourcesoffunds|
|The PhaseIII projectofHuangjianshan||1 7,401,445.29|5,009,172.93|||2 2,410,618.22||||||Se lf|
|Energyefficientcommercialproduction lineinstallation||3 3,717,629.66|7,602,106.17|41,319,735.83||||||||Se lf|

2015 Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Dongbei(Wuhan)officebuildingrenovation project|6 ,349,068.26|490,088.36|5,362,553.00|1,476,603.62|||||Se lf|
|JiangsuSuqianIndustrialPark oneconstruction project|4 9,772,154.37|36,455,231.37|86,227,385.74||||||Se lf|
|Alashankou plantandsupportingfacilitiesprojects|110,860,006.80|378,477,952.76|469,206,839.96|15,408,606.50|4,722,513.10||||Se lf|
|Total|218,100,304.38|428,034,551.59|602,116,514.53|16,885,210.12|27,133,131.32|/|/|/|/|

(3) List of the withdrawal of the impairment provision of the construction in progress
□ Applicable√ Not applicable
Other notes
21. Engineering material
□ Applicable√ Not applicable
22. Liquidation of fixed assets
□ Applicable√ Not applicable
23. Productive biological assets
□ Applicable√ Not applicable
24. Oil and gas assets
□ Applicable√ Not applicable
25.Intangible assets
（1）List of intangible assets
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Land useright|Patent|Non-patentTechnology|Software|Total|
|I. Original price||||||
|1.Opening balance|82,307,510.92|||2,345,542.30|84,653,053.22|
|2.Increased amountofthe period|22,114,990.06|||2,416,166.77|24,531,156.83|
|(1) Purchase||||2,416,166.77|2,416,166.77|

2015 Annual Report
|||||
|-|-|-|-|
|(2)InternalDevelopment||||
|(3)Increased ofEnterprise Combination||||
|(4) Transfer toconstruction project|22,114,990.06||22,114,990.06|
|3.Decreased amount ofthe period||||
|(1)Disposition||||
|4. Closing balance|104,422,500.98|4,761,709.07|109,184,210.05|
|II.Accumulatedamortization||||
|1. Balance in year-begin|11,005,557.83|1,214,742.61|12,220,300.44|
|2.Increased amount ofthe period|2,301,720.49|684,881.23|2,986,601.72|
|(1)Withdrawal|2,301,720.49|684,881.23|2,986,601.72|
|3. Decreased amount ofthe period||||
|(1) Disposition||||
|4. Closing balance|13,307,278.32|1,899,623.84|15,206,902.16|
|III. Provision forimpairment||||
|1. Balance in year-begin||||
|2.Increased amount ofthe period||||
|(1)Withdrawal||||
|3. Decreased amount ofthe period||||
|(1) Disposition||||
|4. Closing balance||||
|IV. Book value||||
|1. Book value of theperiod-end|91,115,222.67|2,862,085.22|93,977,307.89|
|2. Book value of theperiod-begin|71,301,953.09|1,130,799.69|72,432,752.78|

(2) Details of fixed assets failed to accomplish certification of land use right
□Applicable√Not applicable
Othernotes：
26.R&D expenses
□Applicable√Not applicable
27. Goodwill
2015 Annual Report
□Applicable√Not applicable
28. Long-term unamortized expenses
√Applicable□Not applicable
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Openingbalance|Increase|Amortizationamount|Decrease|Closing balance|
|Afforestationfees|6,765,793.26|1,692,165.63|1,889,618.06||6,568,340.83|
|Decoration fees|960,948.90|3,603,776.06|343,285.79||4,221,439.17|
|Total|7,726,742.16|5,295,941.69|2,232,903.85||10,789,780.00|

 29. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
√Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|Items|Closing balance||Opening balance||
||Deductibletemporarydifference|Deferred incometax assets|Deductibletemporarydifference|Deferred incometax assets|
|Assets impairmentprovision|29,971,844.52|4,495,776.68|30,452,384.35|4,512,676.03|
|Insider trading unrealizedprofit|||||
|Deductible loss|||||
|Total|29,971,844.52|4,495,776.68|30,452,384.35|4,512,676.03|

 (2) Deferred income tax liabilities had not been off-set
□Applicable√Not applicable
(3) Deferred income tax assets or liabilities listed by net amount after off-set
□Applicable√Not applicable
(4) List of unrecognized deferred income tax assets
√Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Deductible temporary difference|1,175,823.40||
|Deductible losses|9,916,250.70|2,416,800.78|
|Total|11,092,074.10|2,416,800.78|

 (5) Deductible losses of unrecognized deferred income tax assets will due the following years
√Applicable□Not applicable
In RMB
|||||
|-|-|-|-|
|Year|Year-end balance|Year-beginning balance|Notes|
|2019|2,416,800.78|||
|2020|7,499,449.92|2,416,800.78||

2015 Annual Report
|||||
|-|-|-|-|
|Total|9,916,250.70|2,416,800.78|/|

30. Other non-current assets
31. Short-term loans
√Applicable□Not applicable
(1) Category of short-term loans
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Impawn loan||110,142,000.00|
|Mortgage loan|||
|Guaranteed loan|611,692,080.00|648,486,180.00|
|Credit loan|18,000,000.00|20,000,000.00|
|Total|629,692,080.00|778,628,180.00|

 (2) List of the short-term loans overdue but not return
□Applicable√Not applicable
Other notes
32. Financial liabilities measured by fair value and the changes included in the current gains and losses□Applicable√Not applicable
33. Derivative financial liabilities
□Applicable√Not applicable
34.Bill payable
√Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Trade acceptance|10,000,000.00|8,130,000.00|
|Bank acceptance|1,097,083,483.84|1,049,381,876.03|
|Total|1,107,083,483.84|1,057,511,876.03|

 35. Accounts payable
(1) List of accounts payable
√Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Within 1 year（Including 1 year）|713,816,589.93|649,801,774.90|
|Over 1 year|31,204,616.88|65,342,000.95|
|Total|745,021,206.81|715,143,775.85|

 (2) Notes of the accounts payable aging over one year
□Applicable√Not applicable
36. Advance from customers
(1) List of advance from customers
√Applicable□Not applicable
2015 Annual Report
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Within 1 year（Including 1 year）|17,623,716.91|13,836,470.62|
|Over 1 year||248,926.86|
|Total|17,623,716.91|14,085,397.48|

 (2) Significant advance from customers aging over one year
□Applicable√Not applicable
(3) Particulars of settled but unfinished projects formed by construction contract at period-end.
□Applicable√Not applicable
37. Payroll payable
(1) List of Payroll payable
√Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|Items|Year-beginningbalance|Increase in thecurrent period|Decrease in thecurrent period|Year-endbalance|
|I. Short-term salary|26,745,392.85|288,792,125.90|292,241,556.61|23,295,962.14|
|II. Post-employment benefits||27,816,484.70|27,816,484.70||
|III. Termination benefits||28,000.00|28,000.00||
|IV.Other welfare within 1 year|||||
|Total|26,745,392.85|316,636,610.60|320,086,041.31|23,295,962.14|

 (2) List of Short-term salary
√Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|Items|Balance inyear-begin|Increase at thisperiod|Decrease at thisperiod|Balance inyear-end|
|1.Wages, bonuses, allowancesand subsidies|20,968,227.55|233,054,277.87|234,552,552.57|19,469,952.85|
|2.Employee welfare||27,626,319.36|27,626,319.36||
|3. Social insurance premiums||15,154,835.65|15,154,835.65||
|Including：Medical insurance||10,675,868.84|10,675,868.84||
|Work injury insurance||3,003,927.94|3,003,927.94||
|Maternity insurance||1,475,038.87|1,475,038.87||
|4. Public reserves for housing||10,662,112.49|10,662,112.49||
|5.Union funds and staffeducation fee|5,777,165.30|2,294,580.53|4,245,736.54|3,826,009.29|
|6. Short-term paid absences|||||
|7.Short-term profit-sharing plan|||||
|Total|26,745,392.85|288,792,125.90|292,241,556.61|23,295,962.14|

 (3) List of drawing scheme
√Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
|Items|Year-beginningbalance|Increase in thecurrent period|Decrease in thecurrent period|Year-endbalance|

2015 Annual Report
||||
|-|-|-|
|1. Basic old-age insurancepremiums|25,887,042.70|25,887,042.70|
|2.Unemployment insurance|1,929,442.00|1,929,442.00|
|3. Annuity payment|||
|Total|27,816,484.70|27,816,484.70|

38. Taxes payable
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|VAT|||
|Consumption tax|||
|Business tax|228,607.38|168,008.12|
|Enterprises income tax|20,426,065.63|20,720,493.02|
|Personal income tax|435,412.79|522,854.59|
|Urban maintenance and constructiontax|1,480,005.47|966,114.47|
|Property tax|1,739,576.96|1,522,785.37|
|Land use tax|850,119.97|721,712.00|
|Education surcharge|497,786.31|275,253.68|
|Other|955,324.82|823,913.94|
|Total|26,612,899.33|25,721,135.19|

 39. Interest payable
√Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Year-end balance|Year-beginning balance|
|Installments of long-term interest-bearingloan interest and Interest on short-termloans payable principal at maturity|524,027.78||
|Corporate bond interest|||
|Interest on short-term loans payable|4,802,144.11||
|The preference shares are classified asfinancial liabilities \ perpetual debt interest|||
|Total|5,326,171.89||

Particulars of significant overdue unpaid interest:
□Applicable√Not applicable
Othernotes：
40. Dividends payable
√Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Common stock dividends|10,009,121.12|10,009,121.12|
|Preference shares classified as equityinstruments \ perpetual debt dividend|||

2015 Annual Report
||||
|-|-|-|
|Total|10,009,121.12|10,009,121.12|

 Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be
disclosed:
41. Other accounts payable
(1) Other accounts payable listed by nature of the account
√Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Unit account|82,075,309.37|91,219,708.94|
|Petty cash|102,544.96|1,394,333.51|
|Deposit|223,631.10|404,481.26|
|Provisional account payable|66,093,550.48|112,736,470.15|
|Total|148,495,035.91|205,754,993.86|

 (2) Other significant accounts payable with aging over one year
□Applicable√Not applicable
Other notes
42. Liabilities classified as holding for sale
□Applicable√Not applicable
43. Non-current liabilities due within 1 year
□Applicable√Not applicable
44. Other current-liabilities
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Short-term bonds payable|||
|Total|||

Changes on short term bonds payable:
□Applicable√Not applicable
45. Long-term loan
√Applicable□Not applicable
(1) Category of long-term loan
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Pledge loan|||
|Mortgage loan|350,000,000.00|120,000,000.00|
|Guarantee loan|||
|Credit loan|5,000,000.00||
|Entrusted loan|1,440,000.00|1,440,000.00|
|Total|356,440,000.00|121,440,000.00|

46. Bonds payable
□Applicable√Not applicable
2015 Annual Report
47. Long-term payable
√Applicable□Not applicable
(1) Long-term payable listed by nature of the account
In RMB
||||
|-|-|-|
|Items|Opening balance|Closing balance|
|Money should be paid to YuandongInternational Leasing Limited|30,373,108.31|42,636,983.48|
|Total|30,373,108.31|42,636,983.48|

 48. Long term payroll payable
□Applicable√Not applicable
49. Special payable
□Applicable√Not applicable
50. Accrued liabilities
□Applicable√Not applicable
51. Deferred income
√Applicable□Not applicable
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Openingbalance|Increase|Decrease|Closing balance|Formationreasons|
|Government subsidies||||||
|Refrigeration compressor industrialtransformation of special funds|4,302,291.67||267,500.00|4,034,791.67|Related to assets|
|Major special funds|3,618,750.00||225,000.00|3,393,750.00|Related to assets|
|Compressor industrial projects|14,816,666.67||987,589.13|13,829,077.54|Related to assets|
|Huangshi City, construction ofaffordable housing subsidies|621,000.00||37,401.87|583,598.13|Related to assets|
|Daye Luo bridge new plantconstruction subsidies|1,011,713.33||104,660.00|907,053.33|Related to assets|
|Technology projects subsidies|6,300,000.00||700,000.00|5,600,000.00|Related to assets|
|Receive the subsidy of the industrytransformation and upgradingproject||1 0,740,000.00||1 0,740,000.00|Related to assets|
|land compensation fee||3 ,1 64,000.00|42,188.00|3,121,812.00|Related to assets|
|The special funds of Special PowerSupply Line Construction Period III||3,000,000.00||3,000,000.00|Related to assets|
|The subsidy of financialinfrastructure||16,970,000.0|4,000,000.0|12,970,000.00|Related to assets|
|The Subsidy funds for machineryand equipment||50,000,000.00|81,725.30|49,918,274.70|Related to assets|
|Total|30,670,421.67|83,874,000.00|6,446,064.30|108,098,357.37|/|

 52. Other non-current liabilities
53. Share capital
In RMB
||||
|-|-|-|
|Balance in|Changed（+，-）|Balance in|

2015 Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
||year-begin|Issuanceof newshare|Bonusshares|Capitalizationof publicreserve|Other|Subtotal|year-end|
|Total ofcapitalshares|235,000,000.00||||||235,000,000.00|

54. Other equity instruments
□Applicable√Not applicable
55. Capital reserves
In RMB
||||||
|-|-|-|-|-|
|Items|Opening balance|Increase|Decrease|Closing balance|
|Capital premium|180,001,555.45|||180,001,555.45|
|Other capital reserves|10,110,280.81|||10,110,280.81|
|Total|190,111,836.26|||190,111,836.26|

 56. Treasury stock
□Applicable√Not applicable
57. Other comprehensive income
√Applicable□Not applicable
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Items|Beginningof term|Occurred current term|||||End ofterm|
|||Amountoccurredbeforeincometax of theperiod|Less：Accounted as othergainspreviously buttransferred togain/lossthisperiod|Less：Incometaxexpenses|Attributable to theparentCompanyafter tax|Attributable tominorityshareholders after tax||
|1.Other comprehensiveincome that will not bereclassified subsequentlyto profit or loss||||||||
|Indluding：Change as aresult ofremeasurement of thenet defined benefitplan liability or asset||||||||
|Share of other||||||||

2015 Annual Report
||||||
|-|-|-|-|-|
|comprehensive income ofthe investee undertheequity method that willnot be reclassified toprofit or loss|||||
|II. Other Comprehensiveincome that will bereclassified subsequentlyto profit or loss|168,961.03|357,058.64|357,058.64|526,019.67|
|Indluding：Share of othercomprehensive income ofthe investee under theequity method that w8illbe reclassified to profit orloss|||||
|Gains or losses onchanges in fair value ofavailable-for-salefinancial assets|||||
|Gains or losses onreclassification ofheld-to-maturityinvestments to available-for –salefinancial assets|||||
|Effective portion of gainsor losses on cash flowhedges|||||
|Translation differences offinancial statementsdenominated in foreigncurrencies|168,961.03|357,058.64|357,058.64|526,019.67|
|Total of othercomprehensive income|168,961.03|357,058.64|357,058.64|526,019.67|

 58. Special reserves
□Applicable√Not applicable
59. Surplus reserves
In RMB
2015 Annual Report
||||||
|-|-|-|-|-|
|Items|Opening balance|Increase|Decrease|Closing balance|
|Statutory surplusreserves|43,536,283.35|2,349,281.23||45,885,564.58|
|Discretional surplusreserves|||||
|Reserve funds|||||
|Enterprisedevelopment funds|||||
|Other|||||
|Total|43,536,283.35|2,349,281.23||45,885,564.58|

 60.Retained profits
In RMB
||||
|-|-|-|
|Items|Amount of this period|Amount of last period|
|Before adjustment: Retained profits at the endof priodyear|464,995,647.55|434,569,646.73|
|Adjustment: Total retained profits at thebeginning of year|||
|After adjustment: Retained profits at thebeginning of year|464,995,647.55|434,569,646.73|
|Add：Net profit attributable to shareholders ofthe parent Company for the period|69,792,841.69|59,518,090.82|
|Less：Appropriation to statutory surplusreserve|2,349,281.23|5,592,090.00|
|Appropriation to discretionary surplus reserve|||
|Appropriation to general risk reserve|||
|Ordinary shares’ dividends payable||23,500,000.00|
|Ordinary shares’ dividends converted intoshare capital|||
|Retained profits at the end of the period|532,439,208.01|464,995,647.55|

 61. Business income, Business cost
In RMB
||||||
|-|-|-|-|-|
|Items|Amount of current period||Amount of previous period||
||Income|Cost|Income|Cost|
|Income fromMain Business|3,350,641,602.84|2,849,092,133.74|3,467,573,802.18|3,004,009,420.05|

2015 Annual Report
||||||
|-|-|-|-|-|
|Other Businessincome|69,489,408.14|60,218,866.18|91,439,263.50|69,937,165.94|
|Total|3,420,131,010.98|2,909,310,999.92|3,559,013,065.68|3,073,946,585.99|

 62.Business tax and subjoin
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Consumption tax|||
|Business tax|854,693.21|539,092.68|
|City maintenance and construction tax|5,986,812.60|7,114,413.11|
|Education surtax|2,563,483.27|3,046,118.23|
|Resource tax|||
|Embankment expenses|1,693,332.34|1,455,227.40|
|Local education surcharges|737,904.06|2,030,745.47|
|Water Construction Fund|830,433.27|883,895.80|
|Total|12,666,658.75|15,069,492.69|

 63.Sales expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Transport costs|52,186,403.70|54,569,355.17|
|Travel expenses|3,016,690.87|3,167,060.95|
|Wege|14,338,535.97|13,565,398.63|
|Warranty expenses|17,545,699.32|5,264,503.18|
|Total|103,477,015.27|88,372,759.38|

 64.Administrative expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previousperiod|
|Wage|68,461,985.30|68,904,343.01|
|Travel expenses|15,529,016.99|13,456,214.86|
|Depreciation|11,888,935.22|18,203,746.77|
|Repair fees|2,981,097.66|18,203,746.77|
|Taxes|12,956,434.12|13,101,140.96|
|R& D expenses|136,696,260.57|135,620,731.54|
|Total|265,472,065.47|262,258,841.68|

 65. Financial expenses
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previousperiod|
|Interest expense|51,668,462.64|45,289,423.09|
|Less: Incoming interests|-11,079,762.54|-13,375,163.42|
|Exchange gains/losses||4,247,262.59|
|Less ：exchange gains|-1,643,030.05||
|Bills discounted rate|9,576,943.91|9,629,943.80|
|Handling charges|3,092,970.73|3,488,862.02|

2015 Annual Report
||||
|-|-|-|
|Total|51,615,584.69|49,280,328.08|

 66. Asset impairment loss
√Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|I .Losses for bad debts|695,283.58|-1,482,288.38|
|II. Losses for falling price of inventory|||
|III. Losses of available for sale financialassets impairment|||
|IV.Impairment on held-to-mathurityinvestments|||
|V.Impairment on long-term equityinvestment|||
|VI.Impairment on investment properties|||
|VII.Impairment on fixed assets|||
|VIII. Impairment on construction materials|||
|IX. Impairment on construction in progress|||
|X. Impairment on bearer biological assets|||
|XI. Impairment on oil and gas assets|||
|XII. Impairment on intangible assets|||
|XIII. Impairment on goodwill|||
|XIV.Other|||
|Total|695,283.58|-1,482,288.38|

67. Gains on the changes in the fair value
□Applicable√Not applicable
68.Investment income
√Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Long-term equity investment income underequity method|1,679,147.83|-219,428.66|
|Investment loss through disposal oflong-term equity investment|||
|Income from financial assets measured byfair value with changes in fair valuerecognised in profit or loss|||

2015 Annual Report
||||
|-|-|-|
|Investment income from disposal offinancial assets measured by fair value withchanges in fair value recognised in profit orloss|||
|Investment income received from holdingof held-to-maturity investments duringholding period|||
|Investment income received from availablefor sale financial assets during holdingperiod|||
|Investment income from disposal ofavailable for sale financial assets|||
|Investment income from the remainingequity recalculated by fair value after losingcontrol|||
|Total|1,679,147.83|-219,428.66|

 69.Non-operating gains
In RMB
|||||
|-|-|-|-|
|Items|Amount of currentperiod|Amount of previousperiod|Recorded in the amountof the non-recurringgains and losses|
|Total gains from disposalof non-current assets|1,822,796.20|36,947.96|1,822,796.20|
|Including：Gains fromdisposal of fixed assets|1,822,796.20|36,947.96|1,822,796.20|
|Gains from disposal ofintangible assets||||
|Gains from debtrestructuting||||
|Non-monetary assetsexchangegains||||
|Accepting donations||||
|Government grants|20,121,577.30|29,728,468.03|20,121,577.30|
|Quality claims and other|6,324,810.45|3,023,794.63|6,324,810.45|
|Total|28,269,183.95|32,789,210.62|28,269,183.95|

 Government subsidy reckoned into current gains/losses
In RMB
|||||
|-|-|-|-|
|Items|Amount of this period|Amount of last period|Assets-related/income -related|
|Namely VATThat levy refunds||1,482,826.71|Related to income|
|Tax return|6,394,300.00|12,113,720.00|Related to income|
|Subsidies for socialsecurity center||1,571,640.00|Related to income|
|Technological CenterCapacity Building Project|800,000.00|5,000,000.00|Related to income|
|Provincial science andtechnology innovation anddevelopment of specialfunds|1,200,000.00|3,800,000.00|Related to income|

2015 Annual Report
|||||
|-|-|-|-|
|Special funds for foreigneconomic & tradeDevelopment|1,020,000.00||Related to income|
|Development Project ofsmall & mediumEnterprises|400,000.00||Related to income|
|Auto special project award|800,000.00||Related to income|
|Science and technologyawards categories ofgovernment grants|3,061,213.00|3,646,669.65|Related to income|
|Staging included indeferred income|6,446,064.30|2,113,611.67|Related to income|
|Total|20,121,577.30|29,728,468.03|/|

70.Non-Operation expense
In RMB
|||||
|-|-|-|-|
|Items|Amount of current period|Amount of previousperiod|The amount ofnon-operating gains &lossed|
|Total of non-currentasset Disposition loss|4,660,500.90|6,164,369.73|4,660,500.90|
|Incl: loss of fixed assetsdisposition|4,660,500.90|6,164,369.73|4,660,500.90|
|loss of intangible assetsdisposition||||
|Loss on debtreconstruction||||
|Non-monetary assetexchange losses||||
|Foreign donations|200,000.00||200,000.00|
|Other|1,187,801.64|2,919,194.02|1,187,801.64|
|Total|6,048,302.54|9,083,563.75|6,048,302.54|

 71. Income tax expense
(1) Lists of income tax expense
In RMB
||||
|-|-|-|
|Items|Report period|Same period of the previous year|
|Current income tax expense|8,309,518.62|9,728,587.03|
|Deferred income tax expense|16,899.35|2,126,565.54|
|Total|8,326,417.97|11,855,152.57|

 (2) Adjustment process of accounting profit and income tax expense
In RMB
|||
|-|-|
|Items|Report period|
|Total profits|100,793,432.54|
|Current income tax expense accounted by tax and relevantregulations|15,832,385.60|
|Effect of different tax rates applicable to subsidiaries||
|Income tax adjustments on prior periods|402,708.32|
|Impact of non-taxable income||

2015 Annual Report
|||
|-|-|
|Impact of non-deductible costs, expenses and losses|1,285,493.39|
|Affect the use of deferred tax assets early unconfirmeddeductible losses||
|This issue does not affect the deferred tax assetsrecognized deductible temporary differences or deductibleloss||
|Additional impact of research and development expensesdeduction|-9,211,068.69|
|Influence of deferred income tax assets|16,899.35|
|Income tax expenses|8,326,417.97|

 72. Other comprehensive income
Refer to the notes
73. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Other Unit|37,413,865.83|25,850,602.83|
|Fine and Quality compensation|6,324,810.44|2,715,046.63|
|Interest income|11,079,762.54|13,381,884.36|
|Generation advances and utilities|5,236,801.21|3,653,704.66|
|Govemment Subsidy|13,675,513.01|32,838,609.65|
|Total|73,730,753.03|78,439,848.13|

 (2)Other cash paid relevant to operating activities
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Office ,transportation andother|89,138,479.30|85,713,672.85|
|Water and electricity|1,892,112.23|3,198,637.32|
|Technology Development costs|65,795,259.91|46,188,524.16|
|Other Current account|43,589,814.71|10,732,113.26|
|Total|200,415,666.15|145,832,947.59|

 (3) Other cash received relevant to investment activity
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Government grants related to assets received|33,874,000.00|7,000,000.00|
|Total|33,874,000.00|7,000,000.00|

 (4) Other cash paid relevant to Investment financing activity
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Sale cash assets to pay back rent||22,500,000.00|
|合计||22,500,000.00|

 (4) Other cash paid relevant to financing activity
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Sale cash assets to pay back rent|36,469.71|1,892,776.00|
|Total|36,469.71|1,892,776.00|

2015 Annual Report
74.Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
||||
|-|-|-|
|Supplement Information|Amount of current period|Amount of previous period|
|I. Adjusting net profit to cash flow fromoperating activities|||
|Net profit|92,467,014.57|83,198,411.88|
|Add: Impairment loss provision of assets|695,283.58|-1,482,288.38|
|Depreciation of fixed assets, oil and gasassets and consumable biological assets|119,373,943.03|105,267,596.13|
|Amortization of intangible assets|2,986,601.72|2,164,594.03|
|Amortization of Long-term deferredexpenses|1,999,942.86|1,054,836.23|
|Loss on disposal of fixed assets, intangibleassets and other long-term deferred assets|2,837,704.70|6,127,421.77|
|Loss from scrapping of fixed assets|||
|Loss from fair change|||
|Financial cost|61,245,406.55|55,278,498.58|
|Loss on investment|-1,679,147.83|219,428.66|
|Decrease in deferred income tax assets|16,899.35|2,386,772.16|
|Increased of deferred income tax liabilities|||
|Decrease of inventories|24,999,589.65|96,737,246.55|
|Decease of operating receivables|203,816,390.68|28,674,773.26|
|Increased of operating Payable|-7,009,574.05|-174,192,850.58|
|Other|||
|Net cash flows arising from operatingactivities|501,750,054.81|205,434,440.29|
|II. Significant investment and financingactivities that without cash flows:|||
|Transferring debts to capital|||
|Convertible corporate bond to mature withinone year|||
|Leasing fixed assets through financing|||
|III．The information of net increase of cashand cash equivalent|||
|Balance of cash at the End of the period|553,841,516.54|467,564,876.57|
|Less: Balance of cash at the beginning of theperiod|467,564,876.57|441,509,529.30|
|Add: Balance of cash equivalent at the endof the period|||
|Less: Balance of cash equivalent at thebeginning of the period|||
|Net increase in cash and cash equivalents|86,276,639.97|26,055,347.27|

 (2) Net Cash paid of obtaining the subsidiary
□Applicable√Not applicable
(3) Net Cash receive of disposal of the subsidiary
□Applicable√Not applicable
2015 Annual Report
(4) Cash and cash equivalents
In RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|1.Cash|553,841,516.54|467,564,876.57|
|Including：cash at hand|10,570.37|2,316.67|
|Demand bank deposit|374,053,584.61|289,246,889.74|
|Demand other monetary funds|179,777,361.56|178,315,670.16|
|Usable money in Central Bank|||
|Money saved in associated financial bodies|||
|Money from associated financial bodies|||
|II. Cash equivalents|||
|Of which: bond investment which will duein three months|||
|III. Closing balance of cash and cashequivalents|553,841,516.54|467,564,876.57|
|Including: Cash and cash equivalents ofparent company or subsidiaries with userestrictions|||

Notes：Margin other cash more than three months due to RMB 102,271,489.59.
75. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
76. The assets with the ownership or use right restricted
√Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Closing book value|Restricted reason|
|Monetary capital|282,048,851.15|Deposit|
|Bills receivable|3,838,000.00|Issuing bank acceptance bill|
|Inventory|||
|Fixed assets|||
|Intangible assets|||
|Total|285,886,851.15|/|

77. Foreign currency monetary items
√Applicable□Not applicable
(1) Foreign currency monetary items
In RMB
|||||
|-|-|-|-|
|Items|Closing foreign currencybalance|Exchange rate|Closing convert to RMBbalance|
|Monetary capital||||
|Indluding：USD|2,753,203.11|6.4936|17,878,199.72|
|Euro|1,508,488.46|7.0952|10,703,027.32|
|HKD||||

2015 Annual Report
|||||
|-|-|-|-|
|RMB||||
|RMB||||
|Account receivable||||
|Including：USD|21,232,881.21|6.4936|137,877,837.42|
|Euro|2,432,671.12|7.0952|17,260,288.14|
|HKD||||
|RMB||||
|RMB||||
|Long-term loans||||
|Including：USD||||
|Euro||||
|HKD||||
|RMB||||
|RMB||||
|Short-term loans||||
|Including：USD|40,300,000.00|6.4936|261,692,080.00|

 (2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place, recording currency and selection basis, if there are changes into recording currency, shall also disclose the reason.
□Applicable√Not applicable
78.Arbitrage
□Applicable√Not applicable
VIII. Changes of merge scope
1. Business merger not under same control
□Applicable√Not applicable
2. Business combination under the same control
□Applicable√Not applicable
3.Counter purchase
□Applicable√Not applicable
4.The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Applicable√ Not applicable
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in reporting period
□ Applicable√ Not applicable
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation) and relevant information
6.Other
IX. Equity in other entities
1. Equity in subsidiary
√Applicable□Not applicable
(1) The structure of the enterprisegroup\
|||||||
|-|-|-|-|-|-|
|Name of thesubsidiary|Mainoperating|Registrationplace|Nature ofbusiness|Proportion ofshareholding(%)|Way ofgaining|

2015 Annual Report
||||||||
|-|-|-|-|-|-|-|
||place|||Directly|Indirectly||
|Wuhu AbaurMechanical &Electrical Co.,Ltd..|Wuhu|Wuhu|Manufacturing|75.00||Investment|
|HuangshiDongbei FounryCo., Ltd.|Huangshi|Huangshi|Manufacturing||38.46|Under the samecontrolbusinesscombination|
|HuangshiDongbeiInternationalTrade Co., Ltd.|Huangshi|BVI|Trading|100.00||Under the samecontrolbusinesscombination|
|DongbeiElectromechanical(Jiangsu) Co.,Ltd.|Suqian|Suqian|Manufacturing|100.00||Investment|
|Dongbei(Wuhan)TechnologyInnovation Co.,Ltd.|Wuhan|Wuhan|R&D Centre|100.00||Investment|
|AlashankouDongbeiGreenergy Co.,Ltd.|Alashankou|Alashankou|PowerGeneration||60.00|Investment|

(2) Significant not wholly owned subsidiary
In RMB
||||||
|-|-|-|-|-|
|Subsidiary|Shareholdingproportion ofminorityshareholder|The profits andlosses arbitrate tothe minorityshareholders|Declaring dividendsdistribute tominorityshareholder|Balance ofminorityshareholder atclosing period|
|Wuhu AbaurMechanical &Electrical Co.,Ltd..|25.00|17,846,747.90||144,912,057.50|
|Huangshi DongbeiFounry Co., Ltd.|48.72|4,351,093.25||50,732,889.92|

2015 Annual Report
(3) The main financial information of significant not wholly owned subsidiary
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Subsidiary|Closing balance||||||Opening balance||||||
||Currentassets|Non-currentassets|Total assets|CurrentLiabilities|Non-currentLiabilites|TotalLiabilities|Currentassets|Non-currentassets|Total assets|CurrentLiabilities|Non-currentLiabilites|TotalLiabilities|
|WuhuAbaurMechanical& ElectricalCo., Ltd..|115,577.39|35,522.40|151,099.79|96,296.47|560.00|96,856.47|119,583.66|33,679.04|153,262.70|104,870.35|630.00|105,500.35|
|HuangshiDongbeiFounry Co.,Ltd.|26,558.80|16,804.46|43,363.26|29,378.09|3,572.02|32,950.1|29,764.61|17,559.18|47,323.79|33,294.84|4,508.87|37,803.71|

||||||||||
|-|-|-|-|-|-|-|-|-|
|Subsidiary|Amount of current period||||Amount of previous period||||
||Businessincome|Net profit|Totalcomprehensiveincome|Business cash flow|Businessincome|Net profit|Totalcomprehensiveincome|Business cash flow|
|Wuhu Abaur Mechanical &Electrical Co., Ltd..|141,777.38|6,480.98|6,480.98|13,382.04|150,924.66|6,048.84|6,048.84|9,832.39|
|Huangshi Dongbei FounryCo., Ltd.|46,291.16|893.08|893.08|4,604.87|47,521.57|1,351.29|1,351.29|5,510.40|

2015 Annual Report
(4)Using the asset and settle debts enterprise Group Enterprise Group Majorlimitations：
(5)To the consolidated financial statements of the scope of financial support provided by the structured body or othersupport：
2. The transaction of the Company with itsowner’s equity share changed but still controlling the
subsidiary
□Applicable√Not applicable
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
In RMB
||||||||
|-|-|-|-|-|-|-|
|Name|Main operatingplace|Registrationplace|Businessnature|Proportion||Accountingtreatment oftheinvestment ofjoint ventureor associatedenterprise|
|||||Directly|Indirectly||
|HuangshiAiboProperty Co.,Ltd.|Huangshi|Huangshi|Real estate||24.00|Equitymethod|
|Hubei JinlingFineAgricultureCo., Ltd|Huangshi|Huangshi|Developmentof theagriculturalproducts||24.00|Equitymethod|

(2) Main financial information of significant joint venture
(3)Equity in joint venture arrangement or associated enterprise
√Applicable□Not applicable
4.Significant common operation
□Applicable√Not applicable
5.Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
6.Other
X.The risk related financial instruments
□Applicable√Not applicable
XI.The disclosure of the fair value
□Applicable√Not applicable
XII. Related party and related Transaction
1.Information related to parent company of the Company
In RMB
2015 Annual Report
|||||||
|-|-|-|-|-|-|
|Name of parentcompany|Registeredplace|Businessscope|Registeredcapital（RMB’0000）|Proportion ofshare held byparent(%)|Proportion ofvoting rightsowned by(%)|
|HuangshiDongbeiElectromechanicalGroup Co., Ltd.|Huangshi|Manufacturing|24,184.00|50.04|50.04|

2. Subsidiaries of the Company
The details to Notes
3. Information on the joint ventures and associated enterprises of the Company
The details to Notes of significant joint venture and associated enterprise of the Company
□Applicable√Not applicable
4.Information on other related parties
√Applicable□ Not applicable
|||
|-|-|
|Name|Relationship with the Company|
|Huangshi Dongbei Refrigerating Co., Ltd.|Subsidiary of parent company|
|Huangshi Dongbei Electromechanical Group Co.,Ltd.|Other|
|Huangshi Aibo Technology Development Co., Ltd.|One of the shareholders of the parent Company Huangshi DongbeiElectromechanical Group Co., Ltd., Trust holdings shares ofHuangshi Dongbei Group Employees.|
|Wuhu Farici Investment Co., Ltd.|Other|
|Hubei Xingdong Investment Co., Ltd.|Other|
|Jiangsu Luoke Electrical Group Co., Ltd.|One of the shareholders of the parent Company Huangshi DongbeiElectromechanical Group Co., Ltd.|
|Huangshi Chenxin Photoelectric Co., Ltd.|Other|
|Hubei Dongbei New Energy Co., Ltd.|Other|
|Dongbei New Energy（Wuhu）Co., Ltd.|Other|
|Yuzhou Weiyu Dongbei New Energy Co., Ltd.|Other|
|Huangshi Jinling Property Services Co., Ltd.|Other|
|Wuhu Abaur Real estate Co., Ltd.|Other|
|Luotian Jinbei Agriculture Co., Ltd.|Other|
|Hubei Jinling Fine agricultural Linyang Co., Ltd.|Other|
|Hubei Jinling Fine agricultural Co., Ltd.|Other|
|Huangshi Jinbei Dairy Co., Ltd.|Other|
|Huangshi Huangshi Director Dongxing Petty LoanCo., Ltd.|Other|
|Huangshi Dongbei Refrigerator industry Co., Ltd.|Other|
|Jiangsu Zidong Real Estate Co., Ltd.|Other|
|Huangshi Huizhi Investment Partnership（Limitedpartnership）|Other|
|Lin Yinkun|Other|
|Lu Lihua|Other|
|Zhu Yushan|Other|
|Gao Jianjun|Other|
|Dou Zuowei|Other|
|Ma Yanping|Other|
|Hu Rongzhi|Other|

2015 Annual Report
5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service
√Applicable□ Not applicable
Acquisition of goods and reception of labor service
In RMB
|||||
|-|-|-|-|
|Related-party|Content|Amount ofthis period|Amount of last period|
|Huangshi Dongbei RefrigeratingCo., Ltd.|Compressor parts|10,905.67|16,033.45|
|Huangshi DongbeiElectromechanical Group Co.,Ltd.|Compressor parts|4,471.39|3,093.96|
|Huangshi Aibo TechnologyDevelopment Co., Ltd.|Compressor parts|41,010.34|45,708.67|
|Jiangsu Luoke Electric GroupCo., Ltd.|Compressor parts|27,136.68|36,316.77|
|Huangshi Jinbei Dairy Co., Ltd.|Agricultural products|412.53|348.78|
|Hubei Jinling Fine AgricultureCo., Ltd.|Agricultural products|80.57|45.01|
|Hubei Dongbei New EnergyCo., Ltd.|Photovotaic|40,455.39|11,938.30|

Information of sales of goods and provision of labor service
In RMB
|||||
|-|-|-|-|
|Related-party|Content|Amount of this period|Amount of last period|
|Huangshi DongbeiRefrigerating Co., Ltd.|Compressor|1,626.44|1,541.69|
|Huangshi DongbeiElectromechanical Group Co.,Ltd.|Compressor parts|15.99|101.09|
|Huangshi Aibo TechnologyDevelopment Co., Ltd.|Material|402.92|1,623.53|
|Jiangsu Luoke Electric GroupCo., Ltd.||25.46|166.07|

(2) Related trusteeship/contract
□ Applicable√ Not applicable
(3)Information of related lease
√Applicable□ Not applicable
The Company was lessor
In RMB
|||||
|-|-|-|-|
|Name of lessee|Cagegory of leasedassets|The lease incme confirmedin this year|The lease income confirmed inlast year|
|Huangshi DongbeiRefrigerating Co.,Ltd.|House|5,538,679.28|2,970,905.22|
|Huangshi Jinbei DairyCo., Ltd.|House|148,680.00|146,880.00|
|Hubei Dongbei NewEnergy Co., Ltd.|House|861,973.92|108,000.00|
|Jiangsu LuokeElectrical Group Co.,Ltd.|House|308,940.00|255,450.00|
|Wuhu Abaur Realestate Co., Ltd.|House|6,000.00|6,000.00|
|Wuhu FariciInvestment Co., Ltd.|House|14,400.00|14,400.00|

2015 Annual Report
||||
|-|-|-|
|Jiangsu LuokeElectrical Group Co.,Ltd.|House|90,840.00|

The company waslessee：
In RMB
|||||
|-|-|-|-|
|Lessor|Category of leasedassets|The lease income confirmedin this year|The lease incoe confirmed inlast year|
|Huangshi DongbeiElectromechanicalGroup Co., Ltd.|Land|36,000.00|36,000.00|

(4) Related-party guarantee
The company was guarantor:
In RMB
||||||
|-|-|-|-|-|
|Guarantor|Guarantee amount|Start date|End date|Executionaccomplished or not|
|Huangshi DongbeiElectromechanicalGroup Solar EnergyCo., Ltd.|1,210.00|2015-11-11|2016-12-17|No|
|DongbeiElectromechanical(Jiangsu) Co., Ltd.|5,224.66|2015-7-10|2020-12-16|No|
|DongbeiElectromechanicalCo., Ltd.|2,995.00|2015-7-16|2016-11-3|No|
|Wuhu AbaurMechanical &Electrical Co., Ltd.|46,465.60|2015-6-8|2016-6-20|No|
|AlashankouDongbei Clean Co.,Ltd.|35,000|2015-5-28|2027-11-27|No|
|Huangshi DongbeiFounry Co., Ltd.|709,063.00|2015-8-17|2016-6-25|No|
|Huangshi AiboTechnologyDevelopment Co.,Ltd.|3,000.00|2015-12-28|2016-12-17|No|
|Huangshi DongbeiRefrigerating Co.,Ltd.|7,317.94|2015-7-24|2016-6-29|No|

The Company was secured party
In RMB
||||||
|-|-|-|-|-|
|Guarantor|Guarantee amount|Start date|End date|Executionaccomplished or not|
|Wuhu AbaurMechanical &Electrical Co., Ltd.|11,000.00|2015-6-8|2016-6-20|No|
|Huangshi DongbeiElectromechanicalGroup Co., Ltd.|77,423.67|2015-7-3|2016-9-16|No|

(5)Inter-bank lending of capital of related parties
□ Applicable√ Not applicable
2015 Annual Report
(6)Related party asset transfer and debt restructuring
√Applicable□ Not applicable
In RMB
|||||
|-|-|-|-|
|Related party|Content|Amount of currentperiod|Amount of previousperiod|
|Huangshi DongbeiRefrigerating Co., Ltd.|Fixed assets transfer|24,206,565.05||
|Huangshi Aibo TechnologyDevelopment Co., Ltd|Fixed assets transfer|20,805,356.68||
|Total||45,011,921.73||

(7)Rewards for the key management personnel
√Applicable□ Not applicable
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Rewards for the key managementpersonnel|1,813,487.48|3,256,892.32|

(8)Other related-party transactions
6. Receivables and payables of related parties
√Applicable□ Not applicable
(1) Receivable
In RMB
|||||||
|-|-|-|-|-|-|
|Items|Related parties|Items||Related parties||
|||Book balance|Bad debt reserve|Book balance|Bad debt reserve|
|Other accountreceivable|HuangshiDongbeiRefrigeratingCo., Ltd.|||5,237,329.05||
|Prepayment|HuangshiDongbeiElectromechanicalGroup Co., Ltd.|8,476,792.53||21,018,436.58||
|Dividendreceivable|HuangshiDongbei NewEnergy Co., Ltd|27,395,464.63||27,395,464.63||
|Total||35,872,257.16||53,651,230.26||

(2) Payables
In RMB
|||||
|-|-|-|-|
|Items|Related party|Book Balance at periodend|Book Balance at period beginning|
|Account payable|Huangshi DongbeiRefrigerating Co., Ltd.|9,826,471.93|339,453.31|
|Account payable|Huangshi DongbeiElectromechanical GroupSolar Energy Co., Ltd.|318,105.00|739,077.49|
|Account payable|Huangshi Dongbei NewEnergy Co., Ltd|4,153,333.90|31,339,984.95|
|Other account payable|Huangshi AiboTechnology DevelopmentCo., Ltd.|86,564,629.33|16,716,004.40|

2015 Annual Report
|||||
|-|-|-|-|
|Other account payable|Jiangsu Luoke ElectricalGroup Co., Ltd.|41,574,762.79|31,330,954.16|
|Other account payable|Huangshi Jinbei Dairy Co.,Ltd.|149,435.00|149,435.00|
|Other account payable|Huangshi AiboTechnology Co., Ltd.|3,000,000.00||
|Other account payable|Jiangsu Luoke ElectricCo., Ltd.|2,022,045.74||
|Total||147,608,783.69|80,465,474.31|

 7. Related party commitment
8.Other
XIII. Stock payment
1. The stock payment overall situation
□ Applicable√ Not applicable
2.The stock payment settled by equity
□ Applicable√ Not applicable
3. The stock payment settled by cash
□ Applicable√ Not applicable
4. Modification and termination of the stock payment.
5.Other
XIV. Commitments
1. Significant commitments
□ Applicable√ Not applicable
2. Contingency
□ Applicable√ Not applicable
XV. Events safter balance sheet date
1. Significant events had not adjusted
□ Applicable√ Not applicable
2. Profit distribution
□ Applicable√ Not applicable
3. Sales return
□ Applicable√ Not applicable
4. Notes of other significant events
XVI.Other significant events
1. The accounting errors correction in previous period
□ Applicable√ Not applicable
2. Debt restructuring
□ Applicable√ Not applicable
2015 Annual Report
3. Replacement of assets
□ Applicable√ Not applicable
4. Pension plan
□ Applicable√ Not applicable
5. Discontinuing operation
□ Applicable√ Not applicable
6.Segment information
□ Applicable√ Not applicable
7. Other important transactions and events have an impact on investors decision-making
8.Other
2015 Annual Report
XVII.Notes s of main items in financial reports of parent company
1.Account receivable
（1）Account receivable classified by category
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Category|Year-end balance|||||Year-beginning|||||
||Book balance||Provision for bad debts||Balance value|Book balance||Provision for bad debts||Balance value|
||Amount|Proportion(%)|Amount|Proportion(%)||Amount|Proportion(%)|Amount|Proportion(%)||
|Receivables withmajor individualamount and baddebt provisionprovidedindividually|47,323,477.42|6.75|||47,323,477.42|23,101,169.93|3.70|||23,101,169.93|
|2. OtherReceivablesprovided bad debtprovision ingroups|653,362,892.60|93.25|24,723,229.06|3.78|628,639,663.54|601,182,461.33|96.30|23,779,804.16|3.96|577402657.17|
|Other Accountreceivable withminor individualamount but baddebtprovision isprovided|||||||||||
|Total|700,686,370.02|/|24,723,229.06|/|675,963,140.96|624,283,631.26|/|23,779,804.16|/|600,503,827.1|

2015 Annual Report
Receivable accounts with large amount individually and bad debt provisions were provided
□ Applicable√ Not applicable
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:√ Applicable□Not applicable
In RMB
|||||
|-|-|-|-|
|Aging|Balance at year-end|||
||Account receivable|Provision for bad debts|Proportion%|
|Within 1 year||||
|Including：Subitem within 1 year||||
|Subtotal within 1 year|641,358,793.40|12,827,175.87|2|
|1-2 years|5,863.66|293.18|5|
|2-3 years|146,393.62|43,918.09|30|
|Over 3 years||||
|3-4 years|||60|
|Over 4 years|11,851,841.92|11,851,841.92|100|
|4-5 years||||
|Over 5 years||||
|Total|653,362,892.60|24,723,229.06||

In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable√ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
Including :Receivable accounts written back or retrieved in the report period.
□ Applicable√ Not applicable
(2) Account receivables actually written-off during the reporting period
□ Applicable√ Not applicable
Including: Account rec eivables actually written-off during the reporting period:
□ Applicable√ Not applicable
(3) Top five of account receivable of closing balance collected by arrears party
In RMB
|||
|-|-|
|Closing balance|Proportion(%)|
|159,624,217.35|22.78|
|54,140,813.91|7.73|
|49,337,189.54|7.04|
|39,377,937.80|5.62|
|33,738,555.45|4.82|
|336,218,714.05|47.98|

(4) Derecogniziton of account receivable due to the transfer of financial assets
2015 Annual Report
(5) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable
2015 Annual Report
2.Other receivable
(1)Category of Other receivable
In RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Category|Closing balance|||||Opening balance|||||
||Book balance||Provision for bad debts||Balance value|Book balance||Provision for bad debts||Balance value|
||Amount|Proportion(%)|Amount|Proportion(%)||Amount|Proportion(%)|Amount|Proportion(%)||
|Accounts receivable ofindividual significance andsubject to individualimpairment assessment|||||||||||
|Accounts receivablesubjecttoimpairmentassessment by credit riskcharacteristics of aportfolio|2,048,471.48|100.00|55,487.39|2.71|1992984.09|8,735,583.87|100.00|1,152,780.24|13.20|7,582,803.63|
|Accounts receivable ofindividual insignificance butsubject ot individualimpairment assessment|||||||||||
|Total|2,048,471.48|/|55,487.39|/|1,992,984.09|8,735,583.87|/|1,152,780.24|/|7,582,803.63|

2015 Annual Report
Other accounts receivable with insignificant single amount but large risks of groups after grouping by credit risks characteristics at the end of reporting period
□ Applicable√ Inapplicable
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:√Applicable□Inapplicable
In RMB
|||||
|-|-|-|-|
|Aging|Closing balance|||
||Other accountreceivable|Provision for baddebts|Proportion(%)|
|Within 1 year||||
|Including：Subitem within 1 year||||
|Subtotal within 1 year|1,564,539.22|31,290.78|2|
|1-2 years|483,932.26|24,196.61|5|
|2-3 years|||30|
|Over 3 years||||
|3-4 years|||60|
|Over 4 years|||100|
|4-5 years||||
|Over 5 years||||
|Total|2,048,471.48|55,487.39||

In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable√ Not applicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
(2) Particulars of the actual verification of other accounts receivable during the reporting period
□ Applicable√ Not applicable
(3) Other account receivable classified by account nature
√Applicable□ Not applicable
In RMB
||||
|-|-|-|
|Nature|Closing book value|Opening book value|
|Current account|637,701.68|586,276.97|
|Cash/Deposit|227,623.04|237,623.04|
|Petty cash|380,000.00|1,303,638.15|
|Other|12,310.64|703,171.23|
|.Export rebates|790,836.12|5,904,874.48|
|Total|2,048,471.48|8,735,583.87|

 (4) The top five other account receivable classified by debtor at period end
√Applicable□ Not applicable
In RMB
|||||||
|-|-|-|-|-|-|
|Name|Nature|Closing balance|Aging|Proportion(%)|Closing balance ofbad debt provision|
|1.Export rebates|1.Export rebates|790,836.12|Within 1 year|38.61|15,816.72|

2015 Annual Report
|||||||
|-|-|-|-|-|-|
|2.TechnologyDevelopmentDept.|Petty cash|300,000.00|Within 1 year|14.65|6,000.00|
|3.Beijing LanyuTianhongTechnology Co.,Ltd.|Current account|141,000.00|Within 1 year|6.88|2,820.00|
|4.Wu Jiong|Petty cash|80,000.00|Within 1 year|3.91|1,600.00|
|5.Fei Yinxin|Petty cash|60,000.00|Within 1 year|2.93|1,200.00|
|Total|/|1,371,836.12|/|66.98|27,436.72|

 (5) Accounts receivable involved with government subsidies
□ Applicable√ Not applicable
(6) Other account receivable which terminate the recognition owning to the transfer of the financial assets
(7)The amount of the assets and liabilities formed by the transfer and the continues involvement of other Othernotes：
3.Long-term equity investment
√Applicable□ Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
|Items|Closing balance|||Opening balance|||
||Bookbalance|Bad debtprovision|Book value|Bookbalance|Bad debtprovision|Book value|
|Investment to the subsidiary|188,161,074.70||18 8,161,074.70|188,161,074.70||18 8,161,074.70|
|Investment to joint venturesand associated enterprises|||||||
|Total|188,161,074.70||18 8,161,074.70|188,161,074.70||18 8,161,074.70|

（1）Investment to the subsidiary
√Applicable□ Not applicable
In RMB
||||||||
|-|-|-|-|-|-|-|
|Name|Openingbalance|Increase|Decrease|Closingbalance|Withdrawnimpairmentprovisionin thereportingperiod|Closingbalance ofimpairmentprovision|
|Wuhu AbaurMechnical &Electrical Co., Ltd.|33,339,800.00|||33,339,800.00|||
|DongbeiInternational TradeCo., Ltd.|6,821,274.70|||6,821,274.70|||
|Dongbei(Wuhan)TechnologyInnovation Co., Ltd.|8,000,000.00|||8,000,000.00|||
|DongbeiElectromechanical|140,000,000.00|||140,000,000.00|||

2015 Annual Report
||||
|-|-|-|
|(Jiangsu) Co., Ltd.|||
|Total|188,161,074.70|188,161,074.70|

（2）Investment to joint ventures and associated enterprises
□ Applicable√ Not applicable
4.Business income and Business cost
In RMB
||||||
|-|-|-|-|-|
|Items|Report period||Same period of the previousyear||
||Income|Cost|Income|Cost|
|Main Business|2,628,198,278.93|2,421,003,149.21|2,704,621,901.48|2,478,923,855.00|
|Other Business|48,621,542.78|24,955,922.31|61,008,853.32|56,384,750.99|
|Total|2,676,819,821.71|2,445,959,071.52|2,765,630,754.80|2,535,308,605.99|

 5.Investment income
√Applicable□Not applicable
In RMB
||||
|-|-|-|
|Items|Amount of current period|Amount of previous period|
|Long-term equity investment income accounted bycost method||27,395,464.63|
|Long-term equity investment income accounted byequity method|||
|Investment income arising from disposal oflong-term eqiuty investments||3,117,733.27|
|Income from long-term eqiuty investment income ofeqiuty method|||
|Investment income received from disposal oflong-term eqiuty investment calculated by fair value|||
|Investment income received from holding ofheld-to-matutity investment|||
|Investment income received from holding ofavailable-for-sale financial assets|||
|Investment income arising from disposal ofavailable-for-sale financial assets|||
|After the loss of control, the remaining equityremeasured at fair value gains arising|||
|Total||30,513,197.90|

 6.Other
XVIII. Supplement Information
1.Non-recurring gains and losses of current year
In RMB
||||
|-|-|-|
|Items|Amount|Notes|
|Non-current asset disposal gain/loss|-462,241.68||
|Tax refund, deduction and exemption that isexamined and approved by authority exceeding or|||

2015 Annual Report
|||
|-|-|
|has no official approval document.||
|Governmental Subsidy accounted as currentgain/loss, except for those subsidies at with amountor quantity fixed by the national government andclosely related to the Company’s business operation.|20,038,689.31|
|Capital occupation fee collected from non-financialorganizations and accounted as current gain/loss.||
|Income from the exceeding part between investmentcost of the Company paid for obtaining subsidiaries,associates and joint-ventures and recognizable netassets fair value attributable to the Company whenacquiring the investment||
|Gains and losses from exchange ofnon-non-monetary assets||
|Gains and losses from assets under trustedinvestment or Management||
|Asset impairment provisions for force major such asnatural disasters||
|Gain/loss from debt reorganization||
|Enterprise reorganization expenses, such as paymentto stuff placement and consolidation expenses||
|Gain/loss from trades obviously departed from fairvalue||
|Net gain/loss of current term from consolidation ofsubsidiaries under common control from beginningof term to the consolidation date||
|Gain/loss from debt forcasting without connection tothe main business operation||
|In addition to normal business with the companyeffective hedging related business, holders oftradable financial assets, transactions and financialliabilities arising from changes in fair value gainsand losses, as well as the disposal of trading offinancial assets, trading financial liabilities andavailable-for-sale financial assets gains return oninvestment;||
|Single impairment test for impairment of receivablestransferred back to preparation||
|Gains and losses obtained from external trustedloans||
|The use of fair value measurement model offollow-up to the fair value of real estate investmentgains and losses arising from changes||
|According to tax, accounting and other laws,regulations, the requirements of the current Gain/lossfor a one-time adjustment of the impact of thecurrent Gain/loss;||
|Entrusted with the operating of the trust to obtain feeincome||
|Net amount of non-operating income and expenseexcept the aforesaid items|2,644,433.78|
|Other non-recurring Gains/loss items||
|.Amount of influence of income tax|-3,879,230.38|
|Amount of influence of minority interests|-7,250,561.72|
|Total|11,091,089.31|

For theCompany’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and
Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on
2015 Annual Report
information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason. In RMB
||||
|-|-|-|
|Items|Amount|Reason|

2.Return on equity(ROE)and earnings per share(EPS)
|||||
|-|-|-|-|
|Profit of the reporting period|Weighted averagereturn on equity（%）|Earnings per share||
|||Basic earnings per share|Diluted earnings per share|
|Net profit attributable toshareholders of parent company|7.20|0.297||
|Net profit attributable toshareholders of parent company afterdeduction of non-current gains andlosses|6.06|0.250||

3.Differences between accounting data under domestic and overseas accounting standards
□ Applicable√ Not applicable
4.Other
XII. Documents Available for Inspection
|||
|-|-|
|Documents Available forInspection|Accounting statements carried with personal signatures and seals of legal representative,Chief Financial officer and Financial Principal.|
|Documents Available forInspection|Original of Auditors’ Report carried with the seal of Certified Public Accountants as wellas personal signatures of certified Public accountants.|
|Documents Available forInspection|The texts of all the Company's documents publicly disclosed on the newspapers andperiodicals designated by China Securities Regulatory Commission in the report period.|

 Chairman of the board of directors: Zhu Jinming Issue day approved by the Board ofDirectors：April 21, 2016