Stock Code: 000530; 200530 Short Form of the Stock: Daleng Gufen; Daleng B; No: 2016-056
Dalian Refrigeration Co., Ltd.
2016 Semiannual Report Summary
§1 Important Notes
This summary is extracted from the original of the semiannual report. For more information, the investors are recommended to refer to the original.
Company Profile
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|Short form of the stock||DALENG GUFEN; DALENG-B|||
|Stock code||000530; 200530|||
|Listed stock exchange||Shenzhen Stock Exchange|||
|Contact persons|Secretary of the Board of Directors||Authorized representative in charge of securitiesaffairs||
|Name|Song Wenbao|||Du Yu|
|Contact address|DALENG GUFEN Securities and LegalAffairs Department, No. 888, Xinan Road,Shahekou District, Dalian||||
|||||Securities & Legal Affairs Department, No. 888,|
|||||Xinan Road, Shahekou District, Dalian|
|Telephone|0411-86538130|||0411-86538822|
|Fax|0411-86654530|||0411-86654530|
|E-mail|000530@bingshan.com|||000530@bingshan.com|

§2 Summary of Accounting Data and Financial Indexes
2.1 Main accounting data (Unit: RMB Yuan)
Did the Company retroactively adjust or restate the accounting data of previous years due to
change in the accounting policy and correction of accounting mistakes?
□ Yes√ No
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||||Increase/decrease compared|
|item|2016.01-06|2015.01-06|with previous period|
|Operating revenue|779,919,864.03|711,740,342.13|9.58%|
|Net profit attributable to shareholders of listed companies|67,487,286.84|65,477,775.99|3.07%|
|Net profit belonging to the shareholders of listed companies||||
||61,910,458.03|63,880,328.51|-3.08%|
|after the deduction of non-recurring profit and loss||||
|Net cash flow from operating activities|-43,212,032.40|-130,589,921.37|66.91%|
|Basic earning per share|0.12|0.12|0.00%|
|Diluted earnings per share|0.12|0.12|0.00%|
|Weighted average return on net asset yield|2.52%|3.26%|Decrease 0.74 percentage points|
||||Increase/decrease compared with|
||2016.6.30|2015.12.31||
||||2015.12.31|
|Total assets|4,818,332,657.93|4,082,499,864.42|18.02%|
|Owner's equity attributable to shareholders of listed|3,085,362,538.04|2,647,609,091.41|16.53%|
|companies||||

2.2 Statement of shares held by the top ten common shareholders
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|Total number of shareholders in the reporting period||35,680|||||
|Shareholding of top ten shareholders|||||||
||||||Number of|Number of|
||||||shares with|pledged|
|Name|Nature||Proportion|Total number|||
||||||sale|shares or|
||||||restriction|shares frozen|
|Dalian Bingshan Group Co., Ltd.|Domestic non-state-ownedlegal person||20.38%|122,083,524|28,820,881||
|Sanyo Electric Co., Ltd.|Overseas legal person||8.77%|52,502,250|0||
|Industrial Securities Golden Kylin No. 2 Collective AssetManagement Plan|Others||2.78%|16,678,116|7,280,081||
|National Social Security Funds 107 Portfolio|Others||2.03%|12,172,406|0||
|Chen Baohua|Domestic natural person||1.55%|9,287,598|0||
|National Social Security Funds 104 Portfolio|Others||1.38%|8,264,467|5,864,510||
|National Social Security Funds 503Portfolio|Others||0.98%|5,864,510|5,864,510||
|Zhejiang Caitong Capital Co., Ltd - Caitong CapitalKunze No. 2 Securities vInestment Fund|Others||0.98%|5,864,509|5,864,509||
|Shenzhen B & D Capital Fengnian Jinjia No. 1 Fund|Others||0.98%|5,864,509|5,864,509||
|China Everbright Bank Yangguang Dingzeng PortfolioAsset Management Plan|Others||0.70%|4,165,041|3,307,360||

2.3 Statement of shares held by the top ten preferred shareholders
□ Yes√ No
2.4Variation in controlling shareholders or actual controllers
Variation in controlling shareholders in the report period
□ Applicable√ Not applicable
There were no changes in the controlling shareholder in the reporting period.
Variation in actual controllers in the report period
□ Applicable√ Not applicable
§3 Discussion and analysis of the management
In first half year of 2016, the Company took “innovation, improvement and promotion” as the subject, kept a firm grasp on innovation-driven and integration of industry& finance, brought forth new ideas in the industrial development model, intensified technical products research, strengthened the removal& reconstruct as a whole, accelerated capital resources integration, sped up management improvement, enhanced the competitiveness, raised operating efficiency, and made efforts to achieve the main operation targets. In the first half year of 2016, the Company achieved operation revenue of RMB 779.92 million, increased9.58% on a y-o-y basis; and achieved total profit of RMB 72.08 million, increased2.42% on a y-o-y basis.
In reporting period, the Company continued to deepen the construction of engineering platform
and service platform. The engineering platform-Dalian Bingshan Group Engineering Co., Ltd.
started off to improving the qualification and increasing capital, proactive in innovation of
marketing model, laid stress on the integrated solutions, continued to expand its CO cooling 2
system market, and the orders increased greatly on a y-o-y basis. The serviceplatform–Bingshan Technology Service (Dalian) Co., Ltd. has its ERP system officially launched, the remote monitoring users grew rapidly, service standardization promoted efficiently and the service industrilization expanded step by step.
In reporting period, the Company vigorously promoted theR&D of new products as well as the market expansion with parent company and Wuxin Refirgeration. The petrifaction screw compressor, CO screw compressor unit, falling-film semi-closed screw liquid chiller and CO 2 2 evaporator condenser have completed design and commercialization. The systemic technology of marine screw compressor has reached the domestic leading level through the prototype appraisal of new products and technology. The WuxingRefrigeration’s ORC screw expansion generator unit has entered the serialization promotion stage, completed sales of 5 types of units; the steam screw expansion generator unit in the market introduction phase and finished sales of 2 types of units; the pressure energy recovery device for natural gas pipeline network has installed in user site; the exemplary base for new products in all around China has distributed basically completed. In reporting period, removal and reconstruct of the Company has carried out in an orderly manner. According to the plan of intelligent manufacturing, the Company further optimized the process layout and process scheme in the new factory district. Privately offering was implemented smoothly for guarantee the capital requirement of removal and reconstruction. The intelligent new factory construction was implemented smoothly, key projects as the performance test room andheat&cold energy station in new factory have implemented efficiently. The removal plans and capacity reserve program before removal have completed and implemented step by step.
In reporting period, the Company continued to integrated the capital resources. Purchased70% shares of Sanyo Meica, and turned Sanyo Meica-the associated company to wholly-owned subsidiary, improving the intelligent level of theCompany’s products; acquired5% shares of Bingshan Ryosetsu and increased its capital, turned BingshanRyosetsu–the controlling subsidiary to wholly-owned subsidiary, creating a manufacturing base of cryogenic quick freezers for the Company; established an associated company Panasonic Appliances Refrigeration, offering an integrated solutions of Fluorine cold chain system for clients, and satisfied the rapidly needs of hypothermia logistic market in China.
In reporting period, the associated company Panasonic Compressor successfully exploited the air-conditioner market in field of rail transit, continuously enlarged the sales of horizontal scroll compressor for electric motor coach used; actively developed the foreign market in laying emphasis on India and North America; participated in the national standard setting of the AC compressor for electric-mobile used, and honored the second prize of national management modern innovation achievement.
In reporting period, the associated company Panasonic Cold Chain complied with the requirements changed, proactively developed the segment Blue Ocean market; created a new model of selective retailling with Zhengda Group Warehouse Club, and co-operated with
Neighborhood Convenience Store to create a tiny and cosy customer experience; actively developed new business of logistics distribution and biomedical and rapidly promoted.
In reporting period, the associated company Dalian Fuji Bingshan fully realized the update intellectually for products, the non-cash payment and remote control system came to a standard configuration, sales revenue and net profit continued to growth greatly. New machine of mini intelligent machine and liquor machine were put on the market. Sales of vending machine have already surpassed 100,000 since established from 2003.
§4 Matters related to financial report
4.1 Change in accounting policies, accounting estimates and accounting methods compared with the financial statements of the previous year
□Applicable√A Inapplicable
4.2 Correction of major accounting mistakes in the reporting period, which should be retroactively restated
□Applicable√A Inapplicable
4.3 Explanation on change of consolidation scope in the report period compared with the latest annual report
√Applicable□Inapplicable
TheCompany’s
15th
meeting of the
6th
session of the Board of directors decided theCompany’s subsidiary Dalian Bingshan Ryosetsu Quick Freezing Equipment Co., Ltd . to merge the original wholly-owned subsidiary Dalian Bingshan Metal Processing Co., Ltd. The base date of merger was December 31, 2014, and Dalian Bingshan Ryosetsu Quick Freezing Equipment Co., Ltd.became the surviving corporation after the merger. Up to June 30, 2016, above-mentioned changes have been completed, and theCompany’s shareholding ratio is changed to95%. Therefore, in the current consolidated statements, one consolidation subject Dalian Bingshan Metal Processing Co., Ltd. would be removed.
Dalian Universe Thermal Technology Co., Ltd. formerly known as Dalian Sanyo Efficient Refrigeration System Co., Ltd. has changed its name to be Dalian Universe Thermal Technology Co., Ltd. on May 3, 2016.
4.4 Explanation of the Board of Directors to the “Non-standardized Opinion”
□Applicable√Inapplicable
Board of Directors of Dalian Refrigeration Co., Ltd.
August 26, 2016