DALIAN REFRIGERATION CO., LTD.
QUARTERLY REPORT FOR FIRST QUARTER, 2016
§1 Important Notes
1.1 The directors and the Board of Directors, the supervisors and the Supervisory Board, and Senior staff members of Dalian Refrigeration Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any important omissions, fictitious statements or serious misleading carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completeness of the whole contents.
1.2 All the directors have attended this Board meeting of the Company except Mr Kudou sinn.
1.3 Chairman of the Board of Directors of the Company Mr. Ji Zhijian, Financial Majordomo Mr. Ma Yun, and the head of Accounting Department Mrs. Mao Chunhua hereby confirm that the financial report of the quarterly report is true and complete.
1.4 This report is written respectively in Chinese and in English. In the event of any discrepancy between the two above-mentioned versions, the Chinese version shall prevail.
§2 Company Profile
2.1 Major accounting data and financial indexes
|||||||||
|-|-|-|-|-|-|-|-|
||||January-March,||January-March,||Increase/decrease over the|
||||2016||2015||same period of last year|
||Total operating income|400,592,922.66||393,941,332.13||1.69%||
||Net profit attributable to shareholders of|25,527,518.21||22,435,890.92||13.78%||
||listed companies|||||||
||Net profit attributable to shareholders of|25,497,476.68||22,373,319.52||13.96%||
||listed companies after deducting|||||||
||non-recurring gains/losses|||||||
||Net cash generated from operating|-89,736,770.51||-128,634,794.42||30.24%||
||activities|||||||
||Basic earnings per share|0.07||0.06||16.67%||
||Diluted earnings per share|0.07||0.06||16.67%||
|Return on equity||0.96%||1.13%||Decrease 0.17percentagepoints||
|||March 31, 2016||December 31,2015||Increase/decrease over theend of last year||
||Total assets|4,099,235,264.83||4,082,499,864.42||0.41%||
||Owner’s equity attributable to|2,568,111,104.17||2,647,609,091.41||-3.00%||
||shareholders of listed companies|||||||

|||
|-|-|
|Item of non-recurring gains and losses|Amount from beginning of year to the end of report period|
|Disposal gains and losses of non-current asset|58,965.19|
|Tax returned/reduced by chance|14.56|
|Other operating revenue or expense|-13,838.03|
|Income tax effect|9,919.42|
|Minority shareholders’ gains and losses|5,180.77|
|Total|30,041.53|

2.2 Total number and particulars of the shareholders by the end of the report period
||||||||||
|-|-|-|-|-|-|-|-|-|
|Total shareholders at the end of report period||32,714|||||||
|Shareholding of top ten shareholders|||||||||
|||||||||Number of|
|||||||Number of|||
|||||||||pledged|
||||||Total|shares with|||
|Name|Nature||Proportion|||||shares or|
||||||number|sale|||
|||||||||shares|
|||||||restriction|||
|||||||||frozen|
|Dalian Bingshan Group Co., Ltd.|Domesticnon-state-owned legalperson||22.31%||80,355,683|19,213,921|||
|SANYO ELECTRIC CO LTD|Foreign legal person||9.72%||35,001,500|0|||
|National Social Security Fund 107Portfolio|Others||3.04%||10,946,061|0|||
|Industrial Seourities Gold Kylin 2Aggregate asset management plan|Others||1.75%||6,301,038|0|||
|China industry selected hybridsecurities investment fund|Others||1.07%||3,852,364|0|||
|Upthrow morgan manufacturingexcellence equity investmentfunds|Others||0.94%||3,392,766|0|||
|Vanguard harmony growth hybrid|Others||0.92%||3,314,158|0|||
|securities investment fund|||||||||
|Lin Zhenming|Foreign natural person||0.77%||2,780,000|0|||
|Industrial international trust Co.,|Others||0.75%||2,696,915|0|||
|Ltd Yao Huijin 1 assembled funds|||||||||
|trust plan|||||||||
|Sun Huiming|Domestic natural person||0.68%||2,458,966|0|||
|Particulars about shares held by the top ten negotiable shareholders not subject to conditional sales|||||||||
|Name of shareholder||||EORP (shares)|||Type||
|Dalian Bingshan Group Co., Ltd.||||61,141,762|||A||
|SANYO ELECTRIC CO LTD||||35,001,500|||B||
|National Social Security Fund 107 Portfolio||||10,946,061|||A||
|Industrial Seourities Gold Kylin 2 Aggregate asset management plan||||6,301,038|||A||
|China industry selected hybrid securities investment fund||||3,852,364|||A||
|Upthrow morgan manufacturing excellence equity investment funds||||3,392,766|||A||
|Vanguard harmony growth hybrid securities investment fund||||3,314,158|||A||
|Lin Zhenming||||2,780,000|||B||
|Industrial international trust Co., Ltd Yao Huijin 1 assembled funds||||2,696,915|||||
||||||||A||
|trust plan|||||||||
|Sun Huiming||||2,458,966|||B||
|||||Dalian Bingshan Group Co., Ltd. had the|||||
|||||association relationship with Sanyo|||||
|Notes to the associated relationship and uniform actions of the above||||Electric Co., Ltd. among the above|||||
|shareholders||||shareholders. Sanyo Electric Co., Ltd.|||||
|||||holds 26.6% of Dalian Bingshan Group|||||
|||||Co., Ltd.'s equity.|||||

§3 Important Matters
3.1 Major changes in main financial items and indexes, and description of the cause
√ Applicable□ Inapplicable
1. Dividends receivable increased significantly compared with the year-beginning, mainly due to the increase in unexpired dividends receivable in the period.
2. Other receivables increased significantly compared with the year-beginning, mainly due to the increase in bid bond in the period.
3. Other current assets decreased significantly compared with the year-beginning, mainly due to the decrease in value added tax and income tax of the accrued trade in allowance that the taxes payable transferred.
4. Employee compensation payable decreased significantly compared with the year-beginning, mainly due to in the period the payment of provision employee compensation of last period-end.
5. Long term loans increased significantly compared with the year-beginning, due to the increase in special fund loans of China Development Fund.
6. Financial expenses increased significantly y-o-y, mainly due to the reduction in time deposits and interest income in the period.
7. Assets impairment loss decreased significantly y-o-y, mainly due to the reduction in long age receivables and the provision for bad debts in the period.
8. Investment income increased significantly y-o-y, mainly due to the increase in the current profit of
Company's associate company Dalian Fuji Bingshan Vending Machine Co., Ltd.
9. Net cash from operating activities increased significantly y-o-y, mainly due to the increase in cash received by the current sales of goods.
10. Net cash flow from investing activities reduced significantly y-o-y, mainly due to the increase in the
Company's new plant construction investment.
11. Net cash flow from financing activities increased significantly y-o-y, mainly due to the receiving of
special fund of China Development Fund.
3.2 Important Progress and the analysis of the influence and solution
□Applicable√Inapplicable
3.3 Commitments of the Company or its shareholders , actual controller and other related parties in the reporting period or carried to the reporting period
□ Applicable√ Inapplicable
3.4 Precautions on forecasting that by the beginning of year till the end of the next report period, the accumulated net profit may be turned into loss or change greatly compared with that in the same period of the last year, and description of the cause
□ Applicable√ Inapplicable
3.5 The securities investment
□ Applicable√ Inapplicable
3.6 Derivative investment
□ Applicable√ Inapplicable
3.7 Table of investigation, communication, interview received
|||||
|-|-|-|-|
|Receiving time|Way of receiving|Received object type|Basic situation index|
|Jan. 05, 2016|Field investigation|Institution|http:// www.cninfo.com.cn|
|Jan.06, 2016|Field investigation|Institution|http:// www.cninfo.com.cn|
|Jan. 07, 2016|Field investigation|Institution|http:// www.cninfo.com.cn|
|Jan. 18, 2016|Field investigation|Institution|http:// www.cninfo.com.cn|
|Jan. 27, 2016|Field investigation|Institution|http:// www.cninfo.com.cn|
|Feb.24,2016|Field investigation|Institution|http:// www.cninfo.com.cn|
|Mar.31, 2016|Field investigation|Institution|http:// www.cninfo.com.cn|

3.8 Violation of external guaranty
□ Applicable√ Inapplicable
3.9 Non-operation capital occupation by holding shareholders and their related parties in the listed company
□ Applicable√ Inapplicable
§4 Financial Report (attached)
Not audited.
Board of Directors of Dalian Refrigeration Co., Ltd.
April 22, 2016
BALANCE SHEET
Prepared by Dalian Refrigeration Co., Ltd. March 31, 2016 Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Assets|31-Mar-2016||31-Dec-2015||
||Consolidation|Parent Company|Consolidation|Parent Company|
|Current assets:|||||
|Monetary funds|275,613,478.44|213,059,578.00|244,789,824.53|149,314,329.13|
|Financial assets which are measured by fair value andwhich changes are recorded in current profit and loss|||||
|Derivative financial assets|||||
|Notes receivable|74,214,666.95|36,259,322.34|71,699,517.68|40,690,578.22|
|Accounts receivable|733,948,070.22|207,026,275.85|671,423,836.87|196,691,940.87|
|Accounts in advance|52,776,569.86|23,025,241.72|44,218,887.91|22,523,974.19|
|Interest receivables|||||
|Dividend receivable|6,152,400.00|6,152,400.00|44,600.00||
|Other receivables|36,893,467.46|57,617,976.25|22,755,328.21|43,691,612.45|
|Inventories|272,937,551.24|125,579,251.32|259,099,149.47|122,212,395.56|
|Assets held for sale|||||
|Non-current asset due within one year|||||
|Other current assets|5,996,516.21|4,280,669.04|16,478,711.86|7,918,692.08|
|Total current assets|1,458,532,720.38|673,000,714.52|1,330,509,856.53|583,043,522.50|
|Non-current assets:|||||
|Finance asset held available for sales|607,160,879.04|605,845,736.54|733,275,249.09|731,960,106.59|
|Held-to-maturity investment|||||
|Long-term account receivable|||||
|Long-term equity investment|1,239,173,089.34|1,479,764,120.89|1,220,367,767.73|1,460,958,799.28|
|Investment property|24,344,752.75|24,344,752.75|24,497,584.00|24,497,584.00|
|Fixed assets|440,250,464.09|240,475,308.75|449,907,430.32|246,435,789.69|
|Construction in progress|144,934,419.33|117,062,051.41|137,025,384.58|109,277,419.44|
|Engineering material|||||
|Disposal of fixed asset|||||
|Productive biological asset|||||
|Oil and gas asset|||||
|Intangible assets|158,079,748.14|90,127,903.05|158,417,802.57|90,015,524.05|
|Expense on Research and Development|||||
|Goodwill|1,440,347.92||1,440,347.92||
|Long-term expenses to be apportioned|5,457,181.44|4,641,215.46|5,857,504.95|5,033,031.30|
|Deferred income tax asset|19,861,662.40|7,162,850.89|21,200,936.73|8,675,787.57|
|Other non-current asset|||||
|Total non-current asset|2,640,702,544.45|2,569,423,939.74|2,751,990,007.89|2,676,854,041.92|
|Total assets|4,099,235,264.83|3,242,424,654.26|4,082,499,864.42|3,259,897,564.42|

BALANCE SHEET (CONTINUED)
Prepared by Dalian Refrigeration Co., Ltd. March 31, 2016 Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Liabilities and shareholders’ equity|31-Mar-2016||31-Dec-2015||
||Consolidation|Parent Company|Consolidation|Parent Company|
|Current liabilities:|||||
|Short-term loans|82,600,000.00|27,600,000.00|82,600,000.00|27,600,000.00|
|Derivative financial liabilities|||||
|Notes payable|171,461,794.37|130,238,362.56|234,189,011.72|177,683,261.74|
|Accounts payable|711,343,116.89|278,164,128.60|660,398,503.26|293,389,981.61|
|Accounts received in advance|66,712,952.53|24,257,232.84|70,458,014.46|25,768,511.15|
|Wage payable|23,582,087.36|885,669.48|51,857,345.29|11,208,398.45|
|Taxes payable|16,331,694.58|1,248,647.33|15,701,578.36|873,038.30|
|Interest payable|||||
|Dividend payable|533,156.00|533,156.00|533,156.00|533,156.00|
|Other accounts payable|98,591,355.70|51,166,040.56|99,890,290.15|55,807,703.77|
|Liabilities held for sale|||||
|Non-current liabilities due within one year|||||
|Other current liabilities|||||
|Total current liabilities|1,171,156,157.43|514,093,237.37|1,215,627,899.24|592,864,051.02|
|Non-current liabilities:|||||
|Long-term loans|160,000,000.00|160,000,000.00|||
|Bonds payable|||||
|Long-term account payable|||||
|Long-term wage payable|||||
|Special accounts payable|||||
|Projected liabilities|||||
|Deferred income|48,961,879.00|3,566,378.00|49,378,296.00|3,704,296.00|
|Deferred income tax liabilities|84,709,873.55|84,709,873.55|103,627,029.06|103,627,029.06|
|Other non-current liabilities|||||
|Total non-current liabilities|293,671,752.55|248,276,251.55|153,005,325.06|107,331,325.06|
|Total liabilities|1,464,827,909.98|762,369,488.92|1,368,633,224.30|700,195,376.08|
|Shareholders’ equity|||||
|Share capital|360,164,975.00|360,164,975.00|360,164,975.00|360,164,975.00|
|Other equity instruments|||||
|Capital public reserve|632,436,701.04|642,936,492.12|630,264,991.95|640,764,783.03|
|Specialized reserve|39,503,800.00|39,503,800.00|39,503,800.00|39,503,800.00|
|Other comprehensive income|482,790,903.51|481,561,975.89|589,988,118.05|588,759,190.43|
|Special preparation|||||
|Surplus public reserve|580,769,740.16|580,769,740.16|580,769,740.16|580,769,740.16|
|Retained profit|551,452,584.46|454,125,782.17|525,925,066.25|428,747,299.72|
|Translation of foreign currency capital|||||
|Total owner’s equity attributable to parent company|2,568,111,104.17|2,480,055,165.34|2,647,609,091.41|2,559,702,188.34|
|Minority interests|66,296,250.68||66,257,548.71||
|Total owner’s equity|2,634,407,354.85|2,480,055,165.34|2,713,866,640.12|2,559,702,188.34|
|Total liabilities and shareholder’s equity|4,099,235,264.83|3,242,424,654.26|4,082,499,864.42|3,259,897,564.42|

Legal Representative: Ji Zhijian Chief Financial Official: Ma Yun Person in Charge of Accounting Organization: Mao Chunhua
INCOME STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January-March, 2016 Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Items|January-March, 2016||January-March, 2015||
||Consolidation|Parent Company|Consolidation|Parent Company|
|I. Total sales|400,592,922.66|115,257,669.44|393,941,332.13|140,314,467.62|
|Including: Operating income|400,592,922.66|115,257,669.44|393,941,332.13|140,314,467.62|
|II. Total operating cost|398,206,658.93|113,475,549.87|384,626,946.87|137,641,411.87|
|Including: Operating cost|333,650,668.53|94,264,744.26|323,034,478.60|117,390,426.14|
|Taxes and associate charges|2,902,901.06|7,097.13|3,253,523.16|908,801.77|
|Selling and distribution expenses|17,501,000.87|607,607.24|18,498,229.05|657,674.71|
|Administrative expenses|47,439,360.72|24,185,343.28|42,244,320.33|23,015,905.32|
|Financial expense|1,380,437.76|-226,882.57|-992,802.36|-2,228,986.57|
|Impairment loss|-4,667,710.01|-5,362,359.47|-1,410,801.91|-2,102,409.50|
|Add: Gain/(loss) from change in fair value|||||
|Gain/(loss) from investment|24,957,721.61|24,957,721.61|15,366,075.40|15,366,075.40|
|Including: income form investment on affiliatedenterprise and jointly enterprise|24,647,721.61|24,647,721.61|15,366,075.40|15,366,075.40|
|III. Operating profit|27,343,985.34|26,739,841.18|24,680,460.66|18,039,131.15|
|Add: non-business income|484,226.19|156,552.57|523,858.09|156,408.50|
|Including: profit from non-current asset disposal|64,284.56|18,634.56|||
|Less: non-business expense|22,667.47|4,974.62|600.00||
|Including: loss from non-current asset disposal|5,319.37|4,974.62|||
|IV. Total profit|27,805,544.06|26,891,419.13|25,203,718.75|18,195,539.65|
|Less: Income tax|2,239,323.88|1,512,936.68|2,203,305.40|424,419.64|
|V. Net profit|25,566,220.18|25,378,482.45|23,000,413.35|17,771,120.01|
|Net profit attributable to parent company|25,527,518.21|25,378,482.45|22,435,890.92|17,771,120.01|
|Minority shareholders’ gains and losses|38,701.97||564,522.43||
|VI. After-tax net amount of other comprehensiveincomes|-107,197,214.54|-107,197,214.54|||
|After-tax net amount of other comprehensiveincomes attributable to owners of the Company|-107,197,214.54|-107,197,214.54|||
|(I) Other comprehensive incomes that will not bereclassified into gains and losses|||||
|1. Changes in net liabilities or assets with adefined benefit plan upon re-measurement|||||
|2. Enjoyable shares in other comprehensiveincomes in investees that cannot be reclassifiedinto gains and losses under the equity method|||||
|……|||||
|(II) Other comprehensive incomes that will bereclassified into gains and losses|-107,197,214.54|-107,197,214.54|||
|1. Enjoyable shares in other comprehensiveincomes in investees that will be reclassified intogains and losses under the equity method|||||
|2. Gains and losses on fair value changes ofavailable-for-sale financial assets|-107,197,214.54|-107,197,214.54|||
|3. Gains and losses on reclassifyingheld-to-maturity investments intoavailable-for-sale financial assets|||||
|4. Effective hedging gains and losses on cashflows|||||
|5. Foreign-currency financial statement|||||

||||||
|-|-|-|-|-|
|translation difference|||||
|6. Other|||||
|……|||||
|After-tax net amount of other comprehensiveincomes attributable to minority shareholders|||||
|VII Total comprehensive income|-81,630,994.36|-81,818,732.09|23,000,413.35|17,771,120.01|
|Total comprehensive income attributable toparent company|-81,669,696.33|-81,818,732.09|22,435,890.92|17,771,120.01|
|Total comprehensive income attributable tominority shareholders|38,701.97||564,522.43||
|VIII. Earnings per share|||--||
|(I) basic earnings per share|0.07||0.06||
|(II) diluted earnings per share|0.07||0.06||

Legal Representative: Ji Zhijian Chief Financial Official: Ma Yun Person in Charge of Accounting Organization: Mao Chunhua
CASH FLOW STATEMENT
Prepared by Dalian Refrigeration Co., Ltd. January -March, 2016 Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Items|January -March, 2016||January -March, 2015||
||Consolidation|Parent Company|Consolidation|Parent Company|
|I. Cash flows arising from operatingactivities:|||||
|Cash received from selling commodities andproviding labor services|259,550,611.17|57,386,660.38|168,986,081.23|28,836,321.34|
|Write-back of tax received|18,706.02||191,191.89||
|Other cash received concerning operatingactivities|5,101,358.38|1,872,927.46|6,535,219.95|3,079,486.91|
|Subtotal of cash inflow arising fromoperating activities|264,670,675.57|59,259,587.84|175,712,493.07|31,915,808.25|
|Cash paid for purchasing commodities andreceiving labor service|205,022,168.61|62,407,122.34|162,207,962.07|80,610,184.43|
|Cash paid to/for staff and workers|93,063,640.59|37,869,910.32|91,911,242.24|38,017,364.23|
|Taxes paid|19,094,299.33|3,224,168.93|20,384,745.23|7,324,384.03|
|Other cash paid concerning operatingactivities|37,227,337.55|15,124,172.44|29,843,337.95|6,752,073.30|
|Subtotal of cash outflow arising fromoperating activities|354,407,446.08|118,625,374.03|304,347,287.49|132,704,005.99|
|Net cash flows arising from operatingactivities|-89,736,770.51|-59,365,786.19|-128,634,794.42|-100,788,197.74|
|II. Cash flows arising from investingactivities:|||||
|Cash received from recovering investment|||||
|Cash received from investment income|44,600.00||||
|Net cash received from disposal of fixed,intangible and other long-term assets|43,040.00|43,000.00|||
|Net cash received from disposal ofsubsidiaries and other units|||||
|Other cash received concerning investingactivities|||||
|Subtotal of cash inflow from investingactivities|87,640.00|43,000.00|0.00|0.00|
|Cash paid for purchasing fixed, intangibleand other long-term assets|38,795,973.03|33,240,785.00|13,203,094.43|5,394,470.50|
|Cash paid for investment|||13,454,100.00|19,454,100.00|
|Net cash received from payment ofsubsidiaries and other business units|||||
|Other cash paid concerning investingactivities|||||
|Subtotal of cash outflow from investingactivities|38,795,973.03|33,240,785.00|26,657,194.43|24,848,570.50|
|Net cash flows arising from investingactivities|-38,708,333.03|-33,197,785.00|-26,657,194.43|-24,848,570.50|
|III. Cash flows arising from financingactivities|||||
|Cash received from absorbing investment|||60,434,000.00|56,434,000.00|
|Including: Cash received from absorbingminority shareholders' equity investment bysubsidiaries|||4,000,000.00||
|Cash received from loans|178,150,000.00|160,000,000.00|14,860,000.00||
|Other cash received concerning financingactivities|23,110,827.68|1,920,332.73|32,953,876.63|16,145,665.64|
|Subtotal of cash inflow from financingactivities|201,260,827.68|161,920,332.73|108,247,876.63|72,579,665.64|

||||||
|-|-|-|-|-|
|Cash paid for settling debts|17,751,087.50||3,000,000.00||
|Cash paid for dividend and profit distributingor interest paying|1,179,397.92|307,318.34|3,404,791.88||
|Including: dividends or profit paid bysubsidiaries to minority shareholders|||||
|Other cash paid concerning financingactivities|4,924,665.45|3,430,000.00|21,149,935.79|17,020,534.09|
|Subtotal of cash outflow from financingactivities|23,855,150.87|3,737,318.34|27,554,727.67|17,020,534.09|
|Net cash flows arising from financingactivities|177,405,676.81|158,183,014.39|80,693,148.96|55,559,131.55|
|IV. Influence on cash due to fluctuation inexchange rate|4,105.12|1,000.65|-69,647.80|41.03|
|V. Net increase of cash and cash equivalents|48,964,678.39|65,620,443.85|-74,668,487.69|-70,077,595.66|
|Add: Balance of cash and cash equivalents atthe period -begin|221,724,134.60|147,439,134.15|475,557,589.39|391,427,532.25|
|VI. Balance of cash and cash equivalents atthe period–end|270,688,812.99|213,059,578.00|400,889,101.70|321,349,936.59|

Legal Representative: Ji Zhijian Chief Financial Official: Ma Yun Person in Charge of Accounting Organization: Mao Chunhua