Bingshan Refrigeration & Heat Transfer
Technologies Co. Ltd.2024 Annual Report
April 2025
1Section 1 Important Notice Table of Contents and Definitions
The directors and the Board of Directors the supervisors and the Supervisory
Board and Senior staff members of Bingshan Refrigeration & Heat Transfer
Technologies Co. Ltd. (hereinafter referred to as the Company) hereby confirm
that there are not any important omissions fictitious statements or serious
misleading carried in this report and shall take all responsibilities individual
and/or joint for the reality accuracy and completeness of the whole contents.Chairman of the Board of Directors of the Company Mr. Ji Zhijian Financial
Majordomo Mrs. Wang Jinxiu and the head of Accounting Department Mrs. Wu
Bin hereby confirm that the financial report of the annual report is true and
complete.All the directors have attended this Board meeting of the Company.There is no significant risk having adverse influence on attainment of the
Company's future development strategy and business targets. The paragraph "
The prospect of the Company's future development " in Section 3 of this Annual
Report describes major risks the Company may be confronted with including
the risk of Increasing market competition risk and the Accounts receivable is on
the high side. See the related sections for the countermeasures to be taken by the
Company.The profit distribution proposal reviewed and adopted at this Board meeting of
the Company is: Based on the total capital stock of 843212507 shares the
dividend of RMB 0.5 in cash (including tax) will be distributed for every 10
shares; The Company will not transfer the capital reserve to increase capital
stock.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.
2CONTENTS
Section 1 Important Notice Table of Contents and
Definitions……………………………………………………………................…...2
Section 2 About the Company and Main Financial Ind... 6
Section 3 Management discussion and analysis ........ 9
Section 4 Corporate governance ..................... 20
Section 5 Environmental and social responsibility .. 29
Section6Importantitems……………………………………………………………………………………….……30
Section 7 Change in Share Capital and Shareholders' Information…………………………………… ...……... ...33
Section 8 Information on Preferred Stock ........... 36
Section 9 Information on Corporate bonds ........... 37
Section 10 Financial Report ........................ 38
3Reference Documents
The accounting statements bearing the signatures and seals of the legal representative the financial majordomo
and the accountants in charge.
2. The original copies of all the Company's documents and the original copies of the bulletins published on the
newspapers designated by the China Securities Regulatory Commission in the report period.
3. Time for reference: from Monday to Friday 8:00 - 11:30 (am) 1:00 - 4:30 (pm)
Liaison persons: Mr. Song Wenbao Ms Du Yu
Tel: 0086-411-87968130
Fax: 0086-411-87968125
4Definitions
Defined item Stands for Meaning
Reporting period Stands for From Jan. 1 2024 to Dec. 31 2024
The Company this Company Stands for Bingshan Refrigeration & Heat Transfer Technologies Co.Ltd.Dalian Bingshan Group Engineering Co. Ltd. one of the subsidiaries of the Company where
Bingshan Engineering Stands for
the Company holds 100% of its shares.Sonyo Compressor (Dalian) Co. Ltd. one of the subsidiaries of the Company where the
Sonyo Compressor Stands for
Company holds100% of its shares.Sonyo Refrigeration (Dalian) Co. Ltd. one of the subsidiary of the Company where the
Sonyo Refrigeration Stands for
Company holds 100% of its shares indirectly.Wuhan New World Refrigeration Industry Co. Ltd. one of the subsidiaries of the Company
Wuxin Refrigeration Stands for
where the Company holds 100% of its shares.Dalian Bingshan Guardian Automation Co. Ltd. one of the subsidiaries of the Company
Bingshan Guardian Stands for
where the Company holds 100% of its shares.Sonyo Refrigeration System (Dalian) Co. Ltd. one of the subsidiary of the Company
Sonyo Refrigerator Stands for
where the Company holds 100% of its shares indirectly.
5Section 2 About the Company and Main Financial Indicators
Company information
Short form of the stock Bingshan; Bingshan B
Stock code 000530; 200530
Listed stock exchange Shenzhen Stock Exchange
Legal name in Chinese 冰山冷热科技股份有限公司
Legal name abbreviation in Chinese 冰山冷热
Legal English name Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd.Legal English name abbreviation Bingshan
Legal representative Ji Zhijian
Registered address No.106 Liaohe East Road Dalian Economic and Technological Development Zone
Post code of Registered address 116630
Due to the overall relocation the registered address of the Company was changed
Historical changes of the Company's
from 888 Southwest Road Shahekou District Dalian to 106 Liaohe East Road
registered address
Dalian Economic and Technological Development Zone in March 2017.Office address No.106 Liaohe East Road Dalian Economic and Technological Development Zone
Post code of Office address 116630
Internet web site of the Company www.bingshan.cn
E-mail of the Company 000530@bingshan.com
II. Contact persons and information
Secretary of the Board of Directors Authorized representative for securities affairs
Name Song Wenbao Du Yu
Bingshan Securities﹠Legal Affairs No.106 Liaohe Bingshan Securities﹠Legal AffairsNo.106 Liaohe
Address East Road Dalian Economic and Technological East Road Dalian Economic and Technological
Development Zone Development Zone
Tel. 0411-87968130 0411-87968822
Fax 0411-87968125 0411-87968125
E-mail 000530@bingshan.com 000530@bingshan.com
III. Information disclosure and place of preparation for inquiry
Stock exchange website where companies disclose annual
Shenzhen Stock Exchange
reports
Name of the newspaper designated the address of the China Securities Daily Securities Times and
website for publishing this Annual Report http://www.cninfo.com.cn
Place where this Annual Report was prepared for inquiry Securities﹠Legal Affairs Department of the Company
IV. Alteration to the registration
Organization code 912102002423613009
Change in main business since the Company was listed No change
Changes in the holding shareholder No change
6V. Other related information
Accounting firm engaged by the Company
Name of accounting firm ShineWing CPAs (Special General Partnership)
Office location of accounting firm 9/FA Building No.8 north street of Chao Yang Men Dong Cheng District Beijing China
Name of signing certified public accountant Sui Guojun Zhang Shizhuo
Sponsor the Company appointed for performance of the consistent supervision duty in the reporting period
□ Applicable √ Not applicable
Financial consultant the Company appointed for performance of the consistent supervision duty in the reporting
period
□ Applicable √ Not applicable
VI. Main accounting data and financial indicators
Did the Company retroactively adjust or restate the accounting data of previous years due to change in the
accounting policy and correction of accounting mistakes
□Applicable √ Not applicable
Increase/decrease compared with
202420232022
previous year
Operating revenue 4531147208.98 4815941467.70 -5.91% 2893085310.29
Net profit attributable to shareholders of listed
110335139.0649375900.83123.46%18731969.48
companies
Net profit belonging to the shareholders of
listed companies after the deduction of 34268377.84 16483449.17 107.90% -272983508.15
non-recurring profit and loss
Net cash flow from operating activities 237154274.44 -24440667.74 - -56247299.36
Basic earnings per share 0.13 0.06 116.67% 0.02
Diluted earnings per share 0.13 0.06 116.67% 0.02
Weighted average return on net asset yield 3.57% 1.63% Increase 1.94 percentage points 0.61%
Increase/decrease compared with
2024.12.312023.12.312022.12.31
previous year
Total assets 7628315487.35 8162848294.25 -6.55% 7601935329.60
Owner's equity attributable to shareholders of
3132102966.643047513577.752.78%3006120427.03
listed companies
The lower of the Company’s net profit before and after deduction of non-recurring gains and losses in the most
recent three fiscal years are all negative and the audit report in the last year shows that the Company's ability to
continue operations is uncertain
□ Applicable √ Not applicable
The lower of the net profit before and after non-recurring gains and losses is negative
□ Applicable √ Not applicable
7VII.1.Difference of accounting data between as per Chinese accounting standards and as per
International Accounting Standards
□ Applicable √ Not applicable
2. Difference of accounting data between as per Chinese accounting standards and as per
Foreign Accounting Standards
The difference of accounting data between as per Chinese Accounting Standards and as per International
Accounting Standards was 0.
3.Explanation of reasons for differences in accounting data under domestic and foreign
accounting standards
√Applicable □Not applicable
The difference of accounting data between as per Chinese Accounting Standards and as per International
Accounting Standards was 0.VIII. The quarter main financial indicators
the first quarter the second quarter the third quarter the fourth quarter
Operating revenue 1160307673.73 1302969675.97 1251298834.59 816571024.69
Net profit attributable to shareholders of listed companies 29260174.46 49269803.46 16044687.93 15760473.21
Net profit belonging to the shareholders of listed
companies after the deduction of non-recurring profit and 24431907.94 42915071.01 3705366.38 -36783967.49
loss
Net cash flow from operating activities -158187622.10 125601637.35 -12700245.43 282440504.62
IX. Non-recurring profits and losses and their amounts
item 2024 2023 2022
Disposal gains and losses of non-current asset -758256.80 -6656241.40 109194830.34
Government subsidies included in current profit or loss 19490628.71 8263130.89 11878746.43
Debt restructuring gains and losses 2154769.80 1791602.29 230467.42
Profit or loss arising from contingencies unrelated to the
-402140.0010206786.86-2019000.00
normal operation of the company
Disposal gains from investments on financial assets
available for sale and gains from fair value change of 60482638.34 14073910.32 -3694509.36
financial assets available for sale
Reversal of impairment provisions for accounts receivable
4324906.643784207.57
subject to separate impairment testing
The one-time expenses incurred by the enterprise due to the
-6774379.533928060.93
discontinuation of related business activities
Other non-operating revenue or expense 2831968.96 8754118.59
Other profit and loss items that meet the definition of non
8152168.63170729805.79
recurring profit and loss
Influence on income tax 10575731.10 5162725.13 2961966.70
Influence on minority shareholders 27843.47 168249.63 397014.88
Total 76066761.22 32892451.66 291715477.63
8Section 3 Management discussion and analysis
The industry situation of the Company during the reporting period
1. Industry development trend
In recent years the refrigeration and air conditioning industry has played an increasingly prominent role in
national strategies such as food safety energy security consumption upgrading energy conservation and carbon
reduction. The high-end digital green and service-oriented development of the industry has been rapid.In 2024 the refrigeration and air conditioning industry is still facing a complex domestic and international market
situation with intensified market competition difficulties in improving efficiency and high accounts receivable
which continue to plague the operation and development of the industry.In 2025 industry development will continue to differentiate and competition will continue to intensify. The
transformation and upgrading of leading enterprises in the industry will be accelerated high-quality development
will be more stable and new quality productivity will be cultivated in an orderly manner.
2. Challenges and opportunities faced by the Company
(1)Opportunities faced by the Company
Energy conservation carbon reduction and improving energy efficiency have become a consensus in the whole
society; The overall orderly promotion of the national "dual carbon" strategy; Guided by the development plan of
cold chain logistics the demand for cold chain equipment in the market is expected to increase; The issuance of
new cold storage design standards has increased the opportunities for the use of ammonia refrigerants; The ice and
snow economy will receive policy support and the construction projects of ice and snow venues will increase.With its strong technological foundation innovative business model and institutional advantages the Company
can better seize the above opportunities.
(2)Challenges faced by the Company
The cultivation of energy conservation and emission reduction market still needs time; the transformation and
upgrading process is complex.II. The Company’s Main business during the reporting period
Focusing on the hot and cold industry the Company is committed to the development of industrial
refrigeration and heating business commercial refrigeration business air conditioning and environment
business engineering and service business and new business fields covering the key areas of the hot and
cold industry chain and creating a complete hot and cold industry chain.The Company's main products include piston type screw type vortex type lithium bromide absorption
refrigeration machines/units as well as pressure vessels combination warehouses controlled atmosphere
fresh-keeping warehouses refrigeration stations etc. The company provides product sales and
comprehensive solutions for both domestic and international markets with self operated sales as the main
focus and channel sales as a supplement.In 2024 rigid demands such as food safety energy security energy conservation and carbon reduction and
equipment updates will benefit the refrigeration and air conditioning industry; At the same time the
refrigeration and air conditioning industry is also facing challenges such as intensified market competition
difficulties in improving efficiency and difficulties in recovering payments. In the face of opportunities and
challenges the company focuses on the hot and cold business continues to deeply cultivate advantageous
segmented markets such as cold chain logistics petrochemicals beer and dairy products ship refrigeration
ice and snow venues and environmental simulation vigorously expands new businesses such as energy
storage thermal management and CCUS and actively expands and seizes the domestic market.
91. Industrial refrigeration and heating business
Industrial refrigeration is an important field reflecting the core technology of the Company. After years of
development the Company has been close to the technical level of the main international competitors in the
field of industrial refrigeration and has achieved catching up in some fields. Based on the traditional
refrigeration the Company realizes the balance of cold and heat through the utilization of heat which greatly
improves the energy utilization rate.During the reporting period the Company actively served high-end customers and signed multiple high
standard projects in areas such as petroleum refining integration fine chemicals and new materials. The
industry influence of Bingshan brand continued to increase.
2. Commercial refrigeration business
Commercial refrigeration is the Company's core business. In China the Company takes the lead in opening
up the green intelligent cold chain from the first kilometer of the field to the last 100 meters of the residential
community which is the competitive advantage of the Company.Focusing on food refrigeration the Company has patented products pre-cooling from the field all kinds of
quick freezing equipment and refrigeration facilities of various specifications and China's leading experience
in the design and installation of large-scale ammonia and carbon dioxide refrigerators. On the basis of
absorbing the relevant experience of Japan Europe and the United States combined with China's new needs
to provide newer products better solutions and fresher experience for the field of food freezing and
refrigeration.During the reporting period the Company signed several key projects including supply and sales cold chain
logistics Linshui County Cold Chain Logistics Park Beijing's first launch project Guangzhou Yihai Kerry
project and the third phase of the Grand Mansion project.
3. Air conditioning and environment business
In recent years relying on the complete industrial chain the Company has continuously carried out
transformation and upgrading in the field of air conditioning and environment developed more
energy-saving and environmental protection products around the blue sky project and accelerated the
transformation and upgrading from air treatment to environmental governance.At present the Company has developed a series of innovative products around the market segments of
commercial air conditioning central air conditioning and special air conditioning and provides
corresponding solutions in different segments around these innovative products. For hospitals electronic
factories high-end real estate rail transit and other fields provide targeted solutions.During the reporting period the subsidiary of the Company Bingshan Air Conditioning vigorously
developed the air source heat pump business. The new air source heat pump product focuses on ultra-low
temperature and high energy efficiency and can achieve ultra-low temperature heating of -40℃. It is
actively promoted in cold regions such as Northeast and Northwest China.
4. Engineering and service business
Cold and hot engineering and service are the Company's advantageous business fields. In recent years the
Company has realized transformation and upgrading from the manufacturer of cold and hot equipment to the
service provider of comprehensive solution of cold and hot through the development of engineering and
service industry and realized the dual wheel drive of the enterprise and provided more professional and
accurate services to each segment market and constantly created new value for customers and realized
common growth.At present the Company focuses on petrochemical technology refrigeration central air conditioning ice and
snow engineering artificial environment and other market segments. Relying on the enterprise's industrial
10chain value chain and ecosystem the Company provides services from consulting planning design to
manufacturing installation commissioning and service in the whole process and life cycle. At the same time
according to the needs of customers promote the combination of industry and finance and provide services
for customers through the form of project general contracting and financial leasing.During the reporting period the Company signed multiple key projects including the China National
Pharmaceutical Group Pharmaceutical Logistics Project Great Wall Motors Wind Tunnel and Baotou
Vanke Ice and Snow Center. The indoor ice and snow venue project of Shanghai Lingang Yaoxue Ice and
Snow World was completed and delivered.
5. New business
With the deepening of China's economic transformation and upgrading as well as the continuous
introduction of environmental governance policies the domestic industrial energy conservation and
environmental protection industry is growing rapidly the level of energy conservation and consumption
reduction of enterprises and the comprehensive utilization of resources is constantly improving and the
energy industrial structure has changed. Strengthening the optimal utilization of energy has become a
development trend. For low-grade energy recycling the Company provides customers with a series of
energy-saving environmental protection efficient new products in line with the national strategic
requirements of energy conservation carbon reduction and sustainable development and contributes
professional wisdom to the national carbon peak and carbon neutral strategy.During the reporting period the Company made good progress in new businesses such as energy storage
thermal management and CCUS with a significant increase in orders.III. Analysis of core competence
The Company focuses on main business of refrigeration and heating; independent R&D and joint
venture partnerships are cooperate with each other effectively; capital resources integration and
business model innovation are in a positive interaction; the community of business and interest are
being multi-storey created; the develop mode with Bingshan characteristic are formed.The Company has the integrated refrigeration and heating industrial chain for offering kinds of
comprehensive solution services including design manufacture installation and maintenance etc.and can satisfy individual requirements preferably.The Company possesses a mature and solid marketing networks and after-sale service network
on/off-line and can offer high quality and high value-added services more initiative and faster for
clients from around the city.The Company follows the technical route of thermal balance and has independently developed a
series of energy-saving environmentally friendly efficient and intelligent thermal technologies and
products professionally empowering food safety and energy security and actively fulfilling its dual
carbon responsibility.While promoting the transformation and upgrading of its inherent business in an orderly manner
the Company actively cultivates new momentum for development and the path of sustainable
growth is increasingly clear.During the reporting period the Company focused on the hot and cold business deeply cultivated
the market segment and steadily improved its sales force product force technical force
engineering force and service force so as to further enhance its core competitiveness.
11IV. Analysis of main business
1. summarize
In 2024 the Company focuses on the hot and cold business deeply cultivates segmented markets solidly
enhances core competitiveness effectively expands industry influence and continuously strengthens its main
business. In 2024 the Company achieved an operating revenue of 4531.15 million yuan an decrease of
5.91% year-on-year; The net profit attributable to the shareholders of the listed company was 110.34 million
yuan an increase of 123.46% year-on-year.During the reporting period the Company continued to strive and develop steadily. Optimize the incentive
policy for all employees strengthen market and product planning and simplify key business processes. Give
full play to the advantages of differentiation and strengthen the exploration of new fields. Guided by
customer needs accelerate the development of innovative products. The Company's "Multi energy
Complementary Series Technology and Equipment for Achieving Zero Carbon Goals in the Meat Industry"
has passed the scientific and technological evaluation of the China Meat Association and the overall project
has reached the international advanced level with individual devices and technologies reaching the
international leading level. The Company's key technology research and industrialization of the falling film
semi closed screw chiller unit won the second prize of Liaoning Provincial Science and Technology Progress
Award. The -95℃ ethylene ultra-low temperature cascade unit has been selected as an innovative product at
the 2024 China Refrigeration Exhibition. Successfully passed the ISO50001 energy management system
certification.During the reporting period the subsidiary of the Company Bingshan Engineering Company continued to
deeply cultivate the segmented market. In the field of product business it actively serves high-end customers
and have signed multiple high standard projects in areas such as petroleum refining integration fine
chemicals and new materials. In the field of engineering several key projects including the Linshui County
Cold Chain Logistics Park project the Beijing debut project the Guangzhou Yihai Kerry project the
Dazhuang Phase III project and the Baotou Vanke Ice and Snow Center have successfully won bids. The
Shanghai Lingang Yaoxue Ice and Snow World Indoor Ice and Snow Venue project has been completed and
delivered. In the field of energy the rapid promotion of energy storage thermal management projects and
CCUS projects has led to a significant increase in orders.During the reporting period the subsidiary of the Company Wuhan New World Refrigeration continuously
optimized its products and solutions. Based on market trends focus on breakthroughs in advantageous areas
such as natural gas pressure energy generation mining explosion-proof refrigeration devices water vapor
compression and process gas compression. Breaking through technological barriers the 100000 cubic meter
MRC natural gas liquefaction unit of the New Land Energy project has successfully operated. Professional
assistance in energy security has led to a significant increase in orders in the coal mining industry. The
mining explosion-proof refrigeration device has been selected as an innovative product at the 2024 China
Refrigeration Exhibition.During the reporting period the subsidiary of the Company Bingshan Guardian focused on energy-saving
and intelligent control of cold and hot systems and innovated and iterated development. The battery
management system (BMS) of energy storage power stations is being commercialized on a large scale and
the energy storage inverter system (PCS) is actively expanding. It was selected as a pilot demonstration
12enterprise in the "5G+Industrial Internet" integrated application pilot area. The practice of digital workshop
construction with the goal of improving efficiency has won the first prize of Dalian Enterprise Management
Innovation Achievement.During the reporting period the subsidiary of the Company Sonyo Compressor achieved independent
innovation and qualitative growth. Actively expanding into the European and South American markets with
rapid growth in export revenue. Effectively responding to the rise in raw material prices and steadily
improving actual profitability. The development of R290 environmentally friendly refrigerant models is fully
underway and specialized models for energy storage and liquid cooling are being accelerated for promotion.The high-efficiency scroll compressor with an evaporation temperature of -42℃ for ultra-low ambient
temperature air source heat pumps has been selected as an innovative product at the 2024 China
Refrigeration Exhibition. Received the title of "National Green Factory".During the reporting period the subsidiary of the Company Sonyo Refrigeration focused on industrial
energy conservation and amplified synergies. Establish an overseas business unit quickly connect overseas
channels and vigorously promote the export of lithium bromide absorption refrigeration units. Solidly
expand new products and applications based on vacuum technology and waste heat recovery technology. The
new product of gas electric hybrid air source heat pump fills the gap in the domestic industry. The Stirling
waste heat generator unit has been selected as an innovative product at the 2024 China Refrigeration
Exhibition.During the reporting period the subsidiary of the Company Sonyo Refrigerator focused on product
development and focused on new areas of dual carbon and energy storage. The orders for high-efficiency
thermal management heat exchange units for energy storage batteries have significantly increased and
production capacity has rapidly improved. The carbon dioxide transcritical refrigeration system is widely
used in commercial applications and the sixth generation transcritical full injection refrigeration unit has
been successfully developed. The world's first set of marine carbon dioxide transcritical refrigeration
equipment carbon capture system has been independently developed and applied in an orderly manner.
2. Sales income and costs
(1) Sales income structure
20242023
Year-on-year
Proportion to the Proportion to the
Amount Amount increase/decrease
Sales costs Sales costs
Total sales income 4531147208.98 100% 4815941467.70 100% -5.91%
By industry
Refrigeration and
air-conditioning 4435315179.34 97.89% 4708789817.06 97.78% -5.81%
equipment
Others 95832029.64 2.11% 107151650.64 2.22% -10.56%
By product
Industrial product 3322992841.50 73.34% 3357438836.06 69.72% -1.03%
Installation works 1109728685.33 24.49% 1294663341.77 26.88% -14.28%
Others 98425682.15 2.17% 163839289.87 3.40% -39.93%
Domestic sales 3915157033.71 86.41% 4278214645.22 88.83% -8.49%
Foreign sales 615990175.27 13.59% 537726822.48 11.17% 14.55%
13(2) Main business structure
Increase/decrease of Increase/decrease
operating revenues of operating costs Increase/decrease of gross profit on
Operating revenue Operating costs Gross profit on a year-on-year on a year-on-year a year-on-year basis
basis basis
By industry
Refrigeration and
air-conditioning 4435315179.34 3715591847.99 16.23% -5.81% -5.50%
Decrease 0.27 percentage points
By product
Industrial product 3322992841.50 2659179882.13 19.98% 5.32% 6.66% Increase 0.11 percentage points
Installation works 1109728685.33 1055608716.75 4.88% -30.74% -29.29% Decrease 2.77 percentage points
Others 2593652.51 803249.11 69.03% -95.42% -98.25% Increase 50.17 percentage points
By region
Domestic sales 3819325004.07 3238531793.86 15.21% -8.43% -8.40% Decrease 0.03 percentage points
Foreign sales 615990175.27 477060054.13 22.55% 14.55% 20.31% Decrease 3.71 percentage points
By sales model
Total 4435315179.34 3715591847.99 16.23% -5.81% -5.50% Decrease 0.27 percentage points
（3）Was the Company's sales income on material objects more than that on labor service
√ Yes □ No
Year-on-year
Industry category Item 2024 2023
increase/decrease
Sales volume 914435 836513 9.32%
Main refrigeration unit for
Production output 919335 873086 5.30%
industrial or commercial use
Inventory level 109973 108409 1.44%
Reason for change in the related data by 30% or higher on a year-on-year basis
□ Applicable √ Not applicable
（4）Performance of major sales contracts and major procurement contracts signed by the company up to
the reporting period
□ Applicable √ Not applicable
（5）Sales cost structure
20242023
Industry category Item Proportion to the Proportion to the
Year-on-year
Amount Amount increase/decrease
operating costs operating costs
Direct materials 3152291175.61 83.75% 3289266971.15 82.12% -4.16%
Labor wages 398210368.01 10.58% 484370022.22 12.09% -17.79%
Refrigeration and Depreciation 61579139.06 1.64% 75764314.69 1.89% -18.72%
air-conditioning Utilities 27430609.69 0.73% 31810562.98 0.79% -13.77%
Others 124296923.81 3.30% 124385587.16 3.11% -0.07%
Total operating costs 3763808216.19 100.00% 4005597458.19 100.00% -6.04%
(6) Was the Company's consolidated range change during the reporting period
□ Applicable √ Not applicable
(7) Major change or adjustment in the Company's products or service in the reporting period
□ Applicable √ Not applicable
(8) Information on the Company's major customers and major suppliers
Information on the Company's major customers
Total sales volume from top five customers (yuan) 547658294.00
Proportion of the total sales volume from top five customers to the annual sales volume 12.09%
Proportion of the related party total sales volume from top five customers to the annual sales volume 5.02%
14Proportion to the annual
No. Name of customer Sales volume (yuan)
sales volume
1 Customer 1 124892254.77 2.76%
2 Customer 2 107824472.35 2.38%
3 Customer 3 106464917.08 2.35%
4 Customer 4 105960345.03 2.34%
5 Customer 5 102516304.77 2.26%
Total —— 547658294.00 12.09%
Information on the Company's major suppliers
Total purchase volume from top five suppliers (yuan) 473228931.50
Proportion of the total purchase volume from top five suppliers to the annual purchases volume 15.68%
Proportion of the related party total purchase volume from top five suppliers to the annual purchases volume 2.08%
Information on the Company's top five suppliers
Purchase Proportion to the annual
No. Name of supplier
volume (yuan) purchase volume
1 Supplier 1 159214306.94 5.27%
2 Supplier 2 94952310.25 3.15%
3 Supplier 3 78945273.85 2.62%
4 Supplier 4 77382380.72 2.56%
5 Supplier 5 62734659.74 2.08%
Total —— 473228931.50 15.68%
3. Expenses
Increase/decrease of gross
2024 2023 Explain for major changes
profit on a year-on-year basis
Selling expenses 240710529.95 233862026.48 2.93% Financial expenses have significantly
Administrative decreased mainly due to a reduction in
285364414.70250568245.5013.89%
expenses bank loans and interest rate cuts during
Financial expenses 23001855.93 30158077.47 -23.73% the reporting period resulting in a
R&D expenses 155526315.57 164185717.71 -5.27% decrease in interest expenses.
4. R&D expenditure
Information on R&D expenditure
Increase/decrease on a year-on-year
20242023
basis
The quantity of the person engaged in R&D 548 560 -2.14%
The quantity proportion of the person engaged in R&D 12.96% 12.95% Increase 0.01 percentage points
The spending amount on R&D（yuan） 155526315.57 164185717.71 -5.27%
R&D spending accounts for the proportion of revenue 3.43% 3.41% Increase 0.02 percentage points
The amount of R&D investment capitalization（yuan） 0.00 0.00 0.00%
Capitalize R&D investment for the proportion of R&D
0.00%0.00%0.00%
spending
Reasons for the remarkable change in R&D spending accounts for the proportion of revenue compared with the
previous year
15□ Applicable √ Not applicable
Reasons for the substantial changes in the capitalization rate of R&D investment and its rationality
□ Applicable √ Not applicable
5. Cash flows
Year-on-year
Item 2024 2023
increase/decrease
Sub-total of cash inflows from operating activities 4283305967.55 4269130191.69 0.33%
Sub-total of cash outflows from operating activities 4046151693.11 4293570859.43 -5.76%
Net amount of cash flow generated in operating
237154274.44-24440667.74-
activities
Sub-total of cash inflows from investing activities 598921586.65 46010527.14 1201.71%
Sub-total of cash outflows from investing activities 228719169.31 269378896.52 -15.09%
Net amount of cash flow generated in investing
370202417.34-223368369.38-
activities
Sub-total of cash inflows from financing activities 345199909.07 451319569.70 -23.51%
Sub-total of cash outflows from financing activities 675023781.75 454362447.06 48.57%
Net amount of cash flow generated in financing
-329823872.68-3042877.36-
activities
Net increase in cash and cash equivalents 281139347.62 -251221467.19 -
Reason for change in the related data by 30% or higher on a year-on-year basis
√ Applicable □ Not applicable
1. The net cash flow generated from operating activities has significantly increased year-on-year mainly due to
strengthened accounts receivable management and improved collection of payments.
2. The net cash flow generated from investment activities increased significantly year-on-year mainly due to the
disposal of Guotai Junan shares held by the company during the reporting period.
3. The net cash flow generated from financing activities decreased significantly year-on-year mainly due to an
increase in the repayment of bank loans during the reporting period.Reason for remarkable difference between the cash flows from the Company's operating activities in the reporting
period and the net annual profit.□Applicable √ Not applicable
V. Analysis of the non-main business
□ Applicable √ Not applicable
VI. Analysis of assets & liabilities
1. Remarkable change in assets
Monetary unit: RMB yuan
2024.12.312024.1.1
Explain for
Proportion to Proportion to Proportion increase/decrease
Amount Amount major changes
the total assets the total assets
Monetary funds 1042143744.67 13.66% 951039570.11 11.65% Increase 2.01 percentage points
Accounts receivable 1492234348.90 19.56% 1576433924.16 19.31% Increase 0.25 percentage points
Contract assets 184760940.32 2.42% 237076878.71 2.90% Decrease 0.48 percentage points
Inventories 1393653788.81 18.27% 1638139479.14 20.07% Decrease 1.80 percentage points
Investment property 117931720.24 1.55% 123589681.50 1.51% Increase 0.04 percentage points
Long-term equity
481973415.36 6.32% 521274947.50 6.39% Decrease 0.07 percentage points
investment
Fixed assets 1211794069.63 15.89% 1291851402.46 15.83% Increase 0.06 percentage points
Construction in
86221660.80 1.13% 114801351.21 1.41% Decrease 0.28 percentage points
progress
Use right assets 23318732.46 0.31% 30548057.08 0.37% Decrease 0.06 percentage points
Short-term loans 167283407.26 2.19% 262287784.38 3.21% Decrease 1.02 percentage points
Contract liabilities 645711808.53 8.46% 787685294.53 9.65% Decrease 1.19 percentage points
16Long-term loans 547346541.25 7.18% 679700000.00 8.33% Decrease 1.15 percentage points
Lease liabilities 19071845.78 0.25% 24134986.97 0.30% Decrease 0.05 percentage points
2. Assets & liabilities which are measured by fair value
√ Applicable □ Not applicable
Other non-current financial asset measured in fair value is 164024771.63 yuan at the year beginning，and
1683852.59 yuan at the year end.
Restrictions on asset rights as of the end of the reporting period
By the end of reporting period the Company’s asset rights 314758067.11 yuan was limited the reason for the
limitation: the deposit and the bank account were frozen; bank pledge; mortgage.VII. Analysis of investments
1.The overall situation
√ Applicable □ Not applicable
Investment in 2024(yuan) Investment in 2023(yuan) Amount of variation
78719169.3189321945.50-11.87%
2.The significant equity investment during the reporting period
□Applicable √Not applicable
3 The significant non-equity investment during the reporting period
□Applicable √Not applicable
4.The financial asset investment
(1) The securities investment
√ Applicable □ Not applicable
Accumula
Account
Changes in the tive
Initial ing
Stock Stock Book value at the profit and loss of change of Current sale Report period Book value in the Accounting Source
investment measure
code abbreviation beginning the fair value in fair value amount profit and loss ending subjects of funds
cost ment
this period credited to
model
equity
fair Other
value Non-current Own
601211 Guotai Haitong 10910008.00 162340919.04 27205532.40 0.00 224933847.16 65883142.74 0.00
measure financial funds
ment assets
total 10910008.00 -- 162340919.04 27205532.40 0.00 224933847.16 65883142.74 0.00 --
(2) Derivative investment
□Applicable √ Not applicable
During the reporting period the Company does not exist derivative investment.
5. The use of funds raised
□Applicable √ Not applicable
VIII. The material assets and equity sale
1. The material assets sale
□Applicable √Not applicable
2. The material equity sale
□Applicable √Not applicable
IX. Analysis of major subsidiary companies and mutual shareholding companies
√ Applicable □ Not applicable
Unit: ten thousand yuan (except for registered capital)
17registered Operating
Company name Type The main business total assets net assets Net profit
capital income
Manufacture and
RMB
Sonyo sales of gas
subsidiary 442.3967milli 182323 119018 144965 12839
Compressor compression
on
machinery
High-grade
mutual
building hardware USD 18064.5
Bingshan Metal shareholding 29835 23803 43225 5814
plumbing thousand
company
equipment
Subsidiary companies obtained or disposed in the reporting period
□Applicable √Not applicable
X. The structured corporate bodies which the Company controlled
□Applicable √Not applicable
XI. Development prospect of the Company
Major risks faced and countermeasures adopted by the Company
(1)Increasing market competition risk
Countermeasures: focus on hot and cold industries deeply cultivate segmented markets; quickly enhance product
and engineering capabilities; orderly improving the level of intelligent manufacturing and service-oriented
manufacturing; accelerate the transformation and upgrading of inherent undertakings improve quality and
efficiency; accelerate the cultivation of new driving forces and increase differentiated competitive advantages.
(2)Risk of high level of trade receivables
Countermeasures: strictly implement the project management system and further strengthen the management of
accounts receivable; enhance quality of contract through intensified customer credit assessment and contract
appraisal; effective control of increase in trade receivables by reduction of guarantee deposits and taking bank
credit instruments as guarantee deposits; improve contract execution through stricter review on goods delivery
intensified control on project construction and acceptance and post-sale service; prepare special composition
solutions and incentive policy to accelerate settlement of trade receivables with relatively long aging.In 2025 the Company will follow the business policy of "stabilizing growth adjusting structure and cultivating
new energy" focus on cold and hot business and further develop cold chain logistics petrochemical industry
ship refrigeration ice and snow venues CCUS、 Segmented markets such as energy storage and thermal
management solidly enhancing core competitiveness effectively expanding industry influence continuously
strengthening main business and striving to achieve rapid growth.XII. Record of investigation communication and other activities in the reporting period
√Applicable □Not applicable
For details please see
http://irm.cninfo.com.cn/ircs/company/companyDetailstockcode=000530&orgId=gssz0000530
XIII. Implementation of Market Value Management System and Valuation Enhancement
Plan
Has the Company established a market value management system.□Applicable √Not applicable
18Has the Company disclosed a plan to increase its valuation.
□Applicable √Not applicable
XIIII. Implementation of the Action Plan for "Double Improvement of Quality and Return"
Has the Company disclosed the announcement of the "Double Improvement of Quality and Return" action plan.□Applicable √Not applicable
19Section 4 Corporate governance
I. Basic situation of corporate governanceWithin the reporting period the Company centered around the operation subject as “Leading innovation Creatingvalue” relying on the opportunity of overall relocation and transformation of the Company to further deepen and
perfect the normative internal control system and upgrade the governing level of the Company continuously.There were no problems with the Company concerning horizontal competition caused by restructures and other
reasons. The main normal associated transactions between the Company and the associated companies included
purchasing the supporting products for package projects from the associated companies and selling the supporting
parts and components to the associated companies and providing them with the labor service. Associated
transactions between the Company and the associated companies are necessary for normal production and
operation and helpful for the Company’s healthy development and therefore will continue. The Company will
strictly follow the related decision-making procedures and fulfill the obligation in information disclosure in order
to further regulate associated transactions.Was there any deviation of the Company's corporate governance from the requirements in the Company Law and
China Securities Regulatory Commission's regulations
□ Yes √ No
There was no deviation of the Company's corporate governance from the requirements in the Company Law and
China Securities Regulatory Commission's regulations.II. Status of the Company's business staff asset organization and finance separations from
the holding shareholder
The Company was separated from the holding shareholder in business staff asset organization and finance and
has the independent and complete business and operation capability.III. Horizontal competitions
□ Applicable √ Not applicable
IV Shareholders’ general meeting convened in the reporting period
1. Annual Shareholders’ general meeting within this reporting period
The proportion of
Session number of meeting The type of the meeting participate date Disclosing date Disclosing index
investors
2023 Annual Shareholders’ general http://www.cnin
29.42% May 23 2024 May 24 2024
Annual Shareholders’ General Meeting meeting fo.com.cn
The first Extraordinary General Meeting Extraordinary General http://www.cnin
29.87% Dec. 27 2024 Dec. 28 2024
of Shareholders in 2024 Meeting of Shareholders fo.com.cn
V. Information on the Company’s Directors Supervisors Senior Management and Staff
1. basic information
Shares Increase on Decrease in
Shares held
Starting Ending held at holding of holding of
Office-hol at the end of
Name Position Sex Age date of date of beginning shares in this shares in this
ding state period
office term office term of period period period
(shares)
(shares) (shares) (share)
20Dec.27 Dec.26
Ji Zhijian Chairman Incumbent M 57 1528830 0 0 1528830
20142027
Vice chairman/ Jan.1 Dec.26
Cai Liyong Incumbent M 51 0 0 0 0
General manager 2024 2027
Dec.27 Dec.26
Xu Wei Director Incumbent M 46 0 0 0 0
20242027
Kinoshita May 23 Dec.26
Director Incumbent M 52 0 0 0 0
Ayumu 2024 2027
Nishimoto Jun.5 Dec.26
Director Incumbent M 58 0 0 0 0
Shigeyuki 2019 2027
Director/ Board Jan.12 Dec.26
Song Wenbao Incumbent M 51 593880 0 0 593880
secretary 2022 2027
May 14 May 13
Zhai Yunling Independent director Incumbent M 61 0 0 0 0
20212027
May 14 May 13
Liu Yuanyuan Independent director Incumbent F 50 0 0 0 0
20212027
Incumbent May 14 May 13
Yao Hong Independent director F 51 0 0 0 0
20212027
Chairman of the board Jan.17 Dec.26
Hu Xitang Incumbent M 57 0 0 0 0
of Supervisors 2019 2027
Jan.21 Dec.26
Dai Yuling Supervisor Incumbent F 47 0 0 0 0
20162027
May 15 Dec.26
Li Sheng Supervisor Incumbent M 45 0 0 0 0
20202027
Deputy general Jan.12 Dec.26
Yang Fuhua Incumbent M 53 0 0 0 0
manager 2022 2027
Chief Financial May 14 Dec.26
Wang Jinxiu Incumbent F 54 5000 0 0 5000
Officer 2021 2027
leave Jan.1 Apr.9
Yin Xide Former vice chairman M 53 90080 0 0 90080
office 2021 2024
leave Jan.12 Dec.27
Fan Wen Former director M 60 7770 0 0 7770
office 2022 2024
leave Jan.12 Apr.9
Dono Shigeru Former director M 63 0 0 0 0
office 2022 2024
Former deputy general leave Jan.12 Dec.27
Lu Jun M 59 2500 800 600 2700
manager office 2022 2024
Total 2228060 800 600 2228260
During the reporting period whether any directors or supervisors leave office or senior
managers are dismissed
√Applicable □Not applicable
The Board of Directors of the Company received written resignation reports from directors Yin Xide and Dono
Shigeru on April 9 2024. Due to job changes Mr. Yin Xide has requested to resign from his positions as a director
vice chairman and member of the compensation and assessment committee of the Company's Board of Directors
while Mr. Dono Shigeru has requested to resign from his position as a director of the Company's Board of Directors.
21After resigning from the aforementioned positions Mr. Yin Xide and Mr. Dono Shigeru will no longer hold any
positions in the Company.Changes of directors supervisors senior managers of the Company
Name Position held Type Date Reason
Cai Liyong General manager Appointed Jan. 1 2024
Xu Wei Director Elected Dec. 27 2024
Kinoshita Ayumu Director Elected May 23 2024
Former vice
Yin Xide Leave office Apr. 9 2024 Resignation due to job changes
chairman
Dono Shigeru Former director Leave office Apr. 9 2024 Resignation due to job changes
Leave office upon
Fan Wen Former director Dec. 27 2024
expiration of term
Former deputy Leave office upon
Lu Jun Dec. 27 2024
general manager expiration of term
Office holding
Professional background main work experiences and the main duties and responsibilities of incumbent directors
supervisors senior managers of the Company
main duties and
Name Position held Professional background Main work experience
responsibilities
doctorate degree in
Successively acting as GM Chairman of Panasonic Cold-Chain.; Related
management of the
Ji Zhijian Chairman Chairman and President of Dalian Bingshan Group Co. Ltd.; responsibilities of
Dalian University of
Chairman of the Company. the Chairman
Technology
served as the General Manager of Dalian Bingshan Ryosetsu Quick
Heilongjiang University
Freezing Equipment Co. Ltd. the General Manager of Wuhan New Related
Vice chairman of Commerce majoring
Cai Liyong World Refrigeration Industry Co. Ltd. and the General Manager of responsibilities of
GM in refrigeration and
Bingshan Sonyo Refrigeration (Dalian) Co. Ltd. Starting from January GM
freezing
1 2024 appointed as the General Manager of the Company.
Formerly served as the General Manager of Dalian Bingshan Wisdom
Master of Thermal
Park Development Co. Ltd. From January 2021 to December 2023 Related
Energy and Power
Xu Wei Director served as the Assistant to the President of Dalian Bingshan Group Co. responsibilities of
Engineering Xi'an
Ltd. From January 2024 appointed as Vice President of Dalian the Director
Jiaotong University
Bingshan Group Co. Ltd.Formerly served as Executive Vice President of Panasonic Corporation
elated
Kinoshita Graduated from Kansai and President and CEO of China Northeast Asia Company. From
Director responsibilities of
Ayumu University in Japan March 2024 appointed as a director of Dalian Bingshan Group Co.the Director
Ltd. From May 2024 appointed as a director of the Company.Nishimoto graduated from Meiji served as the director of Financial Planning Room and Finance Related
Director
Shigeyuki university Department System Overall Room of Panasonic Corporation responsibilities of
22Headquarter; the director of Regional Financial Integration Room the Director
CFO of Panasonic Corporation China & Northeast Asia Company; the
supervisor of Dalian Bingshan Group Co. LTD.Director and Related
graduate from Zhejiang Successively acting as representative for securities affairs board
Song Wenbao Board responsibilities of
University，CFA secretary of the Company.Secretary Board Secretary
Professor of Law School of Dalian Maritime University lawyer of Related
Independent Doctor of Law Beijing Jincheng Tongda (Dalian) Law Firm legal adviser of Dalian responsibilities of
Zhai Yunling
director professor lawyer Municipal People's Government member/arbitrator of Dalian the Independent
Arbitration Commission director
Professor of Accounting School of Dongbei University of Finance
Related
and Economics Director of Sino-German Management Control
Independent responsibilities of
Liu Yuanyuan Doctor of Accounting Research Center independent director of China Railway Tielong
director the Independent
Container Logistics Co. LTD.; independent director of Kincai
director
(Liaoning) Life Science and Technology Co. LTD.graduate from China Doctor of Management School of Economics and Management Related
Independent University of Political Dalian University of Technology Independent director of Harbin responsibilities of
Yao Hong
director Science and Law， Hattou Investment Co. LTD. Independent director of Fushun Special the Independentprofessor of law Steel Co. Ltd. director
Chairman of graduated from Nanjing Related
Hu Xitang Board of University of Science served as the chairman of the labor union of the Company. responsibilities of
Supervisors and Technology the Supervisor
Related
acting as the chief of the Financial Dept. of Dalian Bingshan Group
Dai Yuling Supervisor Senior Accountant responsibilities of
Company Ltd.the Supervisor
graduated from Dalian acting as the Director of Operation Management Department of Related
Li Sheng Supervisor University of Dalian Bingshan Group Company Ltd；chief of the Financial Dept. of responsibilities of
Technology the Company. the Supervisor
served as engineer deputy director and director of complete set
graduated from Xi 'an design Department of the Company; served as deputy General Related
Yang Fuhua DGM Jiaotong University Manager of Dalian Bingshan Group Engineering Co. LTD; served as responsibilities of
Senior Engineer chief engineer of the Company's business Headquarters and deputy DGM
Head of the Research and development Headquarters.served as cost accountant in finance Department of the Company and
Minister of Finance Department of DalianBingshan Air Conditioning Related
Wang Jinxiu CFO Senior accountant Equipment Co. LTD.; served as the Director of the Financial responsibilities of
Management Department of the Company. served as Chief Financial CFO
Officer since May 2021.Office holding in shareholder unit
√ Applicable □ Not applicable
If receiving remuneration or allowance from
Name of office holder Shareholder unit name Position held in shareholder unit
shareholder unit
23Ji Zhijian Dalian Bingshan Group Co. Ltd. Chairman of the Board President Yes
Xu Wei Dalian Bingshan Group Co. Ltd. Director Vice President Yes
Kinoshita Ayumu Dalian Bingshan Group Co. Ltd. Director No
Nishimoto Shigeyuki Dalian Bingshan Group Co. Ltd. Supervisor No
Song Wenbao Dalian Bingshan Group Co. Ltd. Supervisor No
Office holding in other units
√ Applicable □ Not applicable
If receiving
remuneration or
name unit name Position held in other unit
allowance from other
unit
Dalian Zhong Huida Refrigeration Technology Co. Ltd. Chairman No
Ji Zhijian Dalian Fu Lida Refrigeration Technology Co. Ltd. Chairman No
Dalian Bo Lida Refrigeration Technology Co. Ltd. Chairman No
Wuhan New World Refrigeration Industrial Co. Ltd. Chairman No
Sonyo Refrigeration (Dalian) Co. Ltd. Chairman No
Cai Liyong
Sonyo Refrigeration System (Dalian) Co. Ltd. Chairman No
Dalian Bingshan Group Construction Co. Ltd. Chairman No
Xu Wei Dalian Hui Lida Refrigeration Technology Co. Ltd. Chairman No
China Railway Tielong Container Logistics Co. Ltd. Independent director Yes
Liu Yuanyuan
Kincai (Liaoning) Life Science and Technology Co. Ltd. Independent director Yes
Harbin Hattou Investment Co. Ltd. Independent director Yes
Yao Hong
Fushun Special Steel Co. Ltd. Independent director Yes
Yang Fuhua Dalian Fuji Bingshan Control Systems Co. Ltd. Chairman No
3. Remuneration paid to directors supervisors and senior management
Decision-making procedure decision-making basis and actual payment of remuneration for directors supervisors
and senior management
Decision-making procedure: the Company's remuneration plan for directors and supervisors was proposed by the
Company's Remuneration and Evaluation Committee of the Board of Directors and after approval by the Board
of Directors submitted to the general meeting for adoption and put into effect. The Company’s remuneration plan
for senior management was put into effect after approval by the Company’s Board of Directors.Decision-making basis: it was decided on the basis of main responsibilities and importance of the concerned
position and the remuneration level of similar positions in other similar enterprises and evaluated and rewarded
through the Company’s examination procedure for assets operation performance.The total amount of remunerations actually ( pre-tax ) paid by the Company to directors supervisors and senior
management was 5140400 yuan.Particulars about the annual remuneration of directors supervisors and senior staff members
Annual remuneration and allowance( pre-tax )paid by the Company
Name
(ten thousand yuan)
Ji Zhijian 0
Cai Liyong 112.85
Xu Wei 0
Kinoshita Ayumu 0
Nishimoto Shigeyuki 0
24Song Wenbao 66.35
Zhai Yunling 8
Liu Yuanyuan 8
Yao Hong 8
Hu Xitang 82.33
Dai Yuling 0
Li Sheng 34.54
Yang Fuhua 65.11
Wang Jinxiu 64.59
Yin Xide 0
Dono Shigeru 0
Fan Wen 0
Lu Jun 64.27
Total 514.04
VI. Performance of directors' duties during the reporting period
1.The situation of the board of Directors during this reporting period
The meeting time Date of meeting Date of disclosure The meeting resolution
19th Meeting of 9th Session of the Board January 232024 January 252024 http://www.cninfo.com.cn
20th Meeting of 9th Session of the Board April 242024 April 262024 http://www.cninfo.com.cn
21th Meeting of 9th Session of the Board August 142024 August 152024 http://www.cninfo.com.cn
22th Meeting of 9th Session of the Board October 232024 October 242024 http://www.cninfo.com.cn
23th Meeting of 9th Session of the Board December 102024 December 112024 http://www.cninfo.com.cn
24th Meeting of 9th Session of the Board December 192024 December 202024 http://www.cninfo.com.cn
1st Meeting of 10th Session of the Board December 272024 December 282024 http://www.cninfo.com.cn
2. Attendance of directors at the board of directors and general meetings of shareholders
During the reporting period all directors were present in person at all board meetings where they were required to
be present.
3.Objections raised by directors to matters related to the company
□ Applicable √ Not applicable
4. Other instructions for the performance of directors' duties
□ Applicable √ Not applicable
VII. Execution of duties of the special committees under the Board of Directors in the
reporting period
The audit committee under the Board of Directors of the Company performs its duties in accordance with the
detailed rules for the implementation of the audit committee under the Board of Directors and the working
procedures for the annual report of the audit committee supervises the Company's internal audit system and its
implementation reviews the Company's financial information and its disclosure and evaluates the work of
external audit institutions.In the evaluation of the Company's internal control the audit committee actively plays its responsibilities of
organization leadership and supervision. According to the identification standard of internal control defects of the
Company the annual internal control evaluation report of the Company was reviewed and ShineWing Certified
25Public Accountants was entrusted to conduct internal control audit. It is considered that the current situation of the
Company's internal control system meets the relevant requirements and has been well implemented. The annual
internal control evaluation report of the Company truthfully reflects the above facts.During the annual audit of the company the audit committee actively communicated and effectively coordinated
with the audit institution ShineWing certified public accountants. Before and after the audit we have repeatedly
urged the audit institutions to promote the audit work with quality and quantity on the audit work plan and work
progress. After the completion of the audit the annual financial report and annual report of the company were
carefully reviewed and it was considered that the financial report of the company was comprehensive and true
and the financial report and other information disclosed by the company were objective and true which truly
reflected the annual financial situation of the company.The Audit Committee believes that ShineWing Certified Public Accountants can abide by the independent
objective and fair practice standards in providing annual audit services for the Company audit the Company in
strict accordance with the new accounting standards actively communicate with the audit committee and
independent directors be diligent and responsible and better complete the annual audit of the Company.The remuneration and assessment committee under the Board of Directors of the Company performed its duties in
accordance with the implementation rules of the remuneration and assessment committee of the Board of
Directors of the Company and reviewed the annual remuneration of the directors supervisors and senior
managers of the Company.VIII. Work of the Board of Supervisors
Was there any risk with the Company found by the Board of Supervisors in their supervision activities in the
reporting period
□ Applicable √ Not applicable
The Board of Supervisors had no objections to the matters under supervision in the reporting period.IX Status of the Company's staff
1. As of Dec. 31 2024 the Company and its subsidiary had 4229 enrolled employees including 2370 persons
engaged in production; 583 persons engaged in marketing; 548 persons engaged in engineering and technology;
75 persons engaged in financing; and 653 persons engaged in management.
2. As of Dec. 31 2024 among enrolled employees of the Company and its subsidiary 143 persons have the
educational background of Master or higher; 1312 persons have the educational background of university; 1306
persons have the educational background of junior college; and 1468 persons have the educational background of
secondary technical school or lower.
3. The Company applied the employee job performance wage system with distribution according to positions and
performance of an employee.
4. The Company formulated the annual training plan and gave purposeful training to an employee in consideration
of his/her post requirement.
5. Labor outsourcing
□ Applicable √ Not applicable
X. Profit distribution and dividend payment
By giving consideration to both the return to shareholders and the Company's long-term development and in
combination of the Company's profit made in this year the Company formulated the 2023 annual dividend
distribution plan of paying the cash of 0.3 yuan for every 10 shares. Reviewed and adopted at the Company's
general meeting the Company's Board of Directors has implemented the plan in July 2024.Formulation and implementation of the Company's cash dividend distribution policy in the reporting period
complied with the Company's Articles of Association and the general meeting's resolution and the dividend
distribution standard and proportion were defined and clear and the applicable decision-making procedure and
system were complete. The independent directors agreed on it and the legal rights and interests of minority
shareholders were well protected.Special notes to cash dividend payout policy
26If the regulations of the Articles of Association or the requirements of the shareholders of
Yes
the company meeting are met:
If the dividend payout standard and proportion is definite and clear-cut: Yes
If relevant decision-making procedure and mechanism is complete: Yes
If the independent directors have performed their duties and played their due role: Yes
If small and medium shareholders have the opportunity to sufficiently express their
Yes
opinions and appeals and if their legal rights and interests are sufficiently protected:
If the condition and procedure for adjusting or changing the cash dividend payout policy
Yes
is compliant and transparent:
The Company made profit in the reporting period and the undistributed profit of the parent company was positive
but no cash dividend distribution plan was proposed.□ Applicable √ Not applicable
Profit distribution preplan and preplan of share-granting with capital accumulation fund of the Company
Bonus shares to be presented for every 10 shares (shares) 0
Dividend to be distributed for every 10 shares (RMB yuan) (including tax) 0.5
Equity base for distribution preplan (shares) 843212507
Total amount of cash dividend distribution (RMB yuan) (including tax) 42160625.35
Profit distributable to the shareholders in the current year 1033943381.98
Proportion of cash dividend distribution accounting for total profit distribution 100%
Cash dividend distribution policy:
When the development stage of the company belongs to a growth period with important fund disbursement arrangement(s) the
proportion of cash dividend distribution accounting for this profit distribution should reach 20% at minimum when conducting profit
distribution.Notes to details about preplan for profit distribution or capital stock increase with capital reserve
According to the audit by ShineWing CPAs (Special General Partnership) the net profit made by the parent company of the Company
in 2024 was RMB 76.06 million and 10% of the net profit (RMB 7.606 million) was drawn as the legal surplus reserve. Therefore
the profit distributable to the shareholders in the current year was RMB 68.454 million.Plus the initial undistributed profit of RMB 990.786 million and minus the dividend of RMB 25.296 million of common shares paid
in 2023 the accumulated profit distributable to the shareholders was RMB 1033.944 million.The Company’s profit distribution preplan for 2024:
Based on the net profit made by the parent Company of the Company in 2024 (76.06 million) 20% of the net profit (RMB 15.212
million) will be drawn as the free surplus reserve; Based on the total capital stock of 843212507 shares the dividend of RMB 0.5 in
cash (including tax) will be distributed for every 10 shares the total cash dividend is RMB 42.161 million and the cash dividend for
B share is converted and paid in Hong Kong dollars.The above preplan shall be submitted to the 2024 shareholders’ general meeting for review and approval.XI．The implementation and effect of equity incentive
□ Applicable √ Not applicable
XII．Internal control system construction and implementation during the reporting period
1. Internal control construction and implementation
During the reporting period the Company made positive innovation took the initiative to change and vigorously
promoted organizational strengthening. Implement market-centered integrated operation through organizational
restructuring business process reengineering and management system revision. Through the project management
system fully implement the project budget control the whole process of operation ensure profits and prevent
risks.
272. Details of material weakness in the internal control found in the reporting period described in the report
on self-evaluation of internal control.□ Applicable √ Not applicable
There was no material weakness in the internal control found in the reporting period.XIII．Management and control of subsidiaries during the reporting period
During the reporting period the Company focused on strengthening the management control of subsidiaries from
the following aspects:
(1) The Company carefully identified strictly managed and dynamically adjusted the directors supervisors and
senior managers assigned to subsidiaries;
(2) The Company participated in the whole process of the preparation of the annual business plan of its
subsidiaries made reasonable suggestions and gave appropriate guidance;
(3) The Company conducted monthly/quarterly tracking and annual assessment on the implementation of business
plans and compliance operations of subsidiaries.XIV．Report on self-evaluation of internal control or internal control audit report
1. Report on self-evaluation of internal control
Details of material weakness in the internal control found in the reporting period described in the report on
self-evaluation of internal control
There was no material weakness in the internal control found in the reporting period.Date of disclosing the full text of the report on
Apr. 24 2025
self-evaluation of internal control
Disclosure reference to the full text of the For the 2024 annual report on self-evaluation of internal control
report on self-evaluation of internal control of the Company visit the website www.cninfo.com.cn.
2. Internal control audit report
Description of the deliberation opinions in the internal control audit report
We think that as of Dec. 31 2024 Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. had
maintained an effective internal control over the financial reports in all material aspects according to Basic
Enterprise Internal Control Specification and relevant regulations.Date of disclosing the full text of
Apr. 24 2025
the internal control audit report
Disclosure reference to the full text For the 2024 annual internal control audit report of the Company visit the
of the internal control audit report website www.cninfo.com.cn.Did the accounting firm issue the internal control audit report with nonstandard opinions
□ Applicable √ Not applicable
Was the internal control audit report issued by the accounting firm consistent with the opinion in the
self-evaluation report of the Board of Directors
√Yes □ No
XV. Rectification of problems in self inspection of special actions for governance of listed
companies
None
28Section 5 Environmental and social responsibility
I．Major environmental issues
The listed company and its subsidiaries whether belong to heavy pollution industry formulated by the state
environmental protection department
√Yes □ No
Bingshan Sonyo Compressor (Dalian) Co. Ltd. and Wuhan New World Refrigeration Industry Co. Ltd
subsidiaries of the Company are key pollutant discharge units announced by the environmental protection
department.Administrative penalties imposed for environmental problems during the reporting period
□Yes √ No
II．Social responsibilities
The specific content of the Company's performance of social responsibility can be found in the Social
Responsibility Report disclosed on www.cninfo.com.cn on April 24 2025.III. We consolidated and expanded our achievements in poverty alleviation and rural revitalization
In 2024 the Company continued to consolidate and expand the achievements of poverty alleviation and rural
revitalization and communicated with Songlin Village in Guangmingshan Town Zhuanghe City to meet the
needs of daily maintenance of the air conditioning equipment in the village cultural activity center. It also invested
60000 yuan to continue to assist in the construction of rural street lighting projects. At present 50 streetlights
have been installed on the roads where villagers gather for travel. In addition the company organized volunteers
to go to Bingshan Hope School in Shilibao Street Jinzhou District to carry out the "Love for Education and Warm
Winter Action" activity warming up disadvantaged students with true feelings and demonstrating corporate social
responsibility and responsibility in the new era with dedication.
29Section 6 Important items
I Implementation of commitments
1. Commitments of the Company or its shareholders holding 5% or higher of the shares in the reporting
period or carried to the reporting period
√Applicable □Not applicable
According to the relevant provisions of the "Self regulatory Guidelines for Listed Companies on the Shenzhen
Stock Exchange No. 8- Major Asset Restructuring" the important commitments and performance made by
relevant parties during the 2022 major asset restructuring process of the Company are detailed in the Company's
announcement on the performance of commitments made by relevant parties during the major asset restructuring
disclosed on CNINFO on April 24 2025.
2. The company's assets or projects have earnings forecasts and the reporting period is still in the period of
earnings forecasts. The company explains the reasons why the assets or projects have reached the original
earnings forecasts.□Applicable √Not applicable
II. Non-operation capital occupation by holding shareholders and their related parties in the
listed company
□Applicable √Not applicable
The Company had no capital occupation by the holding shareholders and their related parties in the listed
company within this reporting period.III. Foreign guarantee in violation of regulations
□ Applicable √ Not applicable
IV. Explain to the “non standard audit report” last year from the board of directors of the
Company
□Applicable √Not applicable
V. Explain to the “non standard audit report” from the board of directors board of
supervisors of the Company
□Applicable √Not applicable
VI. Change in accounting policies accounting estimates and accounting methods or correction
of major accounting mistakes in the reporting period which should be retroactively restated
compared with the financial statements of the previous year
√Applicable □Not applicable
In November 2023 the Ministry of Finance issued Interpretation No. 17 of the Enterprise Accounting Standards
(Finance and Accounting [2023] No. 21) (hereinafter referred to as "Interpretation No. 17") which includes "1.
Classification of current liabilities and non current liabilities; 2. Disclosure of supplier financing arrangements; 3.Accounting treatment of post-sale leaseback transactions" to be implemented from January 1 2024. The
Company shall implement the relevant provisions of Interpretation No. 17 from the date of the regulation and the
implementation shall have no impact on the financial statements during the reporting period.In December 2024 the Ministry of Finance issued Interpretation No. 18 of the Enterprise Accounting Standards
(Finance and Accounting [2024] No. 24) (hereinafter referred to as "Interpretation No. 18") which will come into
effect from the date of issuance. 1. Regarding the subsequent measurement of investment properties held as basic
projects under the floating fee method and 2. Regarding the accounting treatment of quality assurance that does
not belong to individual performance obligations. The Company shall implement the relevant provisions of
Interpretation No. 18 from the date of the regulation and the implementation shall have no impact on the financial
statements during the reporting period.VII. Change in the range of consolidated statements compared with the financial statements
of the previous year
□Applicable √Not applicable
30VIII. Engagement and dismissal of the accounting firm
Currently engaged accounting firm
Name of domestic accounting firm ShineWing CPAs (Special General Partnership)
Remuneration paid to the domestic accounting firm (in 10 thousand yuan) 107
Continuous audit service years of the domestic accounting firm 9
Name of certified public accountants with the domestic accounting firm Sui Guojun Zhang Shizhuo
Continuous audit service years of the certified public accountants Sui Guojun 2 years Zhang Shizhuo 4 years
If the CPA firm retaining was changed in this period
□Applicable √Not applicable
Employment of internal control audit accounting firm financial advisor or sponsor
√ Applicable □ Not applicable
During the reporting period the Company hired ShineWing CPAs (Special General Partnership) as the Company's
2024 audit institution to conduct an integrated audit of the Company's financial reports and internal control.
IX. Facing suspend and terminate listing after the annual report disclosure
□ Applicable √ Not applicable
X. Bankruptcy restructuring related matters
□ Applicable √ Not applicable
XI. Major lawsuit and arbitration issues
□ Applicable √ Not applicable
XII. Punishment and rectification
□ Applicable √ Not applicable
XIII．The credibility of companies and its controlling shareholder actual controller
√ Applicable □ Not applicable
The controlling shareholder of the Company and the Company don’t exist situation such as unfulfilled the court’s
effective judgments or failed to pay duly a large amount of debt during the reporting period.XIV．Important associated transactions
1. Related party transactions related to daily operations
During the reporting period the total amount of normal associated transactions between the Company and
associated parties was 890.09 million yuan accounting for 96.48% of the budgeted amount for the year 2024. This
included 256.99 million yuan accounting for 82.11% of the budgeted amount for the year 2024 for purchasing
supporting products for package projects from associated parties and 633.1 million yuan accounting for 104.32%
of the budgeted amount for the year 2024 from selling supporting parts and components to associated parties.Associated transactions related to purchases or sales of assets
□Applicable √ Not applicable
Important associated transactions with joint external investments
□ Applicable √ Not applicable
4. Associated transactions related to rights and debts
□ Applicable √ Not applicable
5. Associated transactions with related financial companies
□ Applicable √ Not applicable
6. The transactions between the financial company controlled by the company and its related parties
□ Applicable √ Not applicable
7. Other associated transactions
√ Applicable □ Not applicable
During the reporting period the subsidiary of the Company Bingshan Sonyo Compressor collaborated with
Panasonic to plan production capacity reasonably optimize production layout and improve production efficiency
Wanbao (Guangzhou) Compressor Co. Ltd. has signed a transfer agreement to transfer some of its machinery and
equipment as well as supporting inspection tools and molds to Panasonic Wanbao Compressor. This transaction
constitutes a related party transaction as detailed in the Company's disclosure of the "Announcement on Related
Party Transactions of the Company's Subsidiaries Selling Machinery Equipment and Inspection Tools and Molds"
(2024-003).
31XVII. Major contract and its performance
1. Hosting contracting and leasing status
(1) the hosting status
□ Applicable √ Not applicable
(2)the contracting status
□ Applicable √ Not applicable
(3) the leasing status
√ Applicable □ Not applicable
The 13th meeting of the 7th board of directors of the Company was held on April 22 2017 and approved to rent
out the old plant and land located in No 888 South West RD Shahekou Districit Dalian to Bingshan Wisdom.The lease contract is from April 1 2017 to December 31 2036. The Company has signed the “estate leasingcontract” with Dalian Bingshan Wisdom based on the requirement of utilization of old land and plant and new
business foster plan. Current year’s lease premium is RMB 9.01 million.On July 31 2014 the Company and Lingzhong Bingshan Refrigeration (Dalian) Co. Ltd. signed a supplementary
agreement to modify the house lease contract and rent out the Building No. 6 of Workshop No. 106 Liaohe East
Road Dalian Development Zone to Lingzhong Bingshan Refrigeration (Dalian) Co. Ltd.. The rental area is
15259.04 square meters and lease period will end on July 16 2029 the annual rent is RMB 3.81 million.
2. Guaranteeing status
√Applicable □ Not applicable
China Development Fund provides support for the Company's cold chain green intelligent equipment and service
industrialization base project and provides special funds to the controlling shareholder of the Company Bingshan
Group. The above-mentioned special fund amount is 160 million yuan with a term of 10 years and a rate of 1.2%.After the above special funds are in place Bingshan Group has fully allocated them to the Company in a one-time
manner without increasing the rate. The implementation of the above-mentioned special funds requires the
Company to provide guarantees and continue until the reporting period. This guarantee is in the form of a
guarantee for the controlling shareholder but in fact it is a guarantee for the Company to obtain financial support
for itself.The Company provides guarantees for clients Guizhou Waterfall Cold Chain Food Investment Co. Ltd. Liuyang
Zhongjie Technology Investment Co. Ltd. Shandong Jiechuang Energy Technology Co. Ltd. Shaanxi Yiming
Food Co. Ltd. and Jilin Fuyu Agricultural Technology Co. Ltd. based on financing leasing business which will
continue until the reporting period. In the normal performance of the above-mentioned project the guaranteed
shareholder and relevant natural persons provided the company with full joint and several liability guarantee and
counter guarantee and the overall guarantee risk of the Company is controllable.
3. Entrust others to cash assets management
(1)Trust management
□Applicable √Not applicable
(2)Entrusted loans
□Applicable √Not applicable
(3)Other important contracts
□ Applicable √ Not applicable
XIX. Other important matters
□ Applicable √ Not applicable
XX. Other important matters of subsidiary company
□ Applicable √ Not applicable
32Section 7 Change in Share Capital and Shareholders' Information
I. Change in share capital
1. Change in share capital
Shares Shares
items （before change） （after change）
number proportion number proportion
I. Non-circulating share capital with restricted trade
16708940.20%16738120.20%
conditions
II. Circulating share capital 841541613 99.80% 841538695 99.80%
1. Domestically listed ordinary shares 600041613 71.16% 600038695 71.16%
2. Domestically listed foreign shares 241500000 29.64% 241500000 29.64%
III. Total shares 843212507 100.00% 843212507 100.00%
Approval of changes in shares
□ Applicable √Not applicable
The restricted shares changes
□ Applicable √Not applicable
II. Securities issuance and listing
1. Securities issuance in the report period
□ Applicable √ Not applicable
2. Change in total shares of the Company and structure of shareholders
□ Applicable √ Not applicable
3. Internal staff shares
□ Applicable √ Not applicable
III. Shareholders and actual controller
1. Number of shareholders and their shareholding
Total number of shareholders in the Total number of shareholders as of the last month before
7136668984
reporting period disclosure of the annual report
Shareholding of top ten shareholders
Number of Number of
Proporti shares with pledged
Name Nature Total number
on sale shares or
restriction shares frozen
Domestic non-state-owned
Dalian Bingshan Group Co. Ltd. 20.27% 170916934 0 0
legal person
Sanyo Electric Co. Ltd. Overseas legal person 8.72% 73503150 0 0
Xu Yayun Domestic natural person 1.89% 15909891
Xu Hongliang Domestic natural person 0.92% 7776761
Lin Zhenming Domestic natural person 0.80% 6710000
Cao Yifan Domestic natural person 0.76% 6410000
Xue Hong Domestic natural person 0.43% 3660000
Li Xiaohua Domestic natural person 0.38% 3220408
Shi Jiangen Domestic natural person 0.38% 3219690
33Chen Yong Domestic natural person 0.32% 2700000
Shareholding of top ten shareholders without sale restriction
Number of shares
Name Type of shares
without sale restriction
Dalian Bingshan Group Co. Ltd. 170916934 RMB denominated ordinary shares
Sanyo Electric Co. Ltd. 73503150 Domestically listed foreign shares
Xu Yayun 15909891 RMB denominated ordinary shares
Xu Hongliang 7776761 RMB denominated ordinary shares
Lin Zhenming 6710000 Domestically listed foreign shares
Cao Yifan 6410000 Domestically listed foreign shares
Xue Hong 3660000 Domestically listed foreign shares
Li Xiaohua 3220408 RMB denominated ordinary shares
Shi Jiangen 3219690 RMB denominated ordinary shares
Chen Yong 2700000 RMB denominated ordinary shares
Dalian Bingshan Group Co. Ltd. had the association
Notes to the associated relationship and uniform actions of the above relationship with Sanyo Electric Co. Ltd. among the above
shareholders shareholders. Sanyo Electric Co. Ltd. holds 26.6% of Dalian
Bingshan Group Co. Ltd.'s equity.Explanation on the participation of the top 10 ordinary shareholders
None
in margin trading and securities lending business
2. Controlling shareholder of the Company
Legal Founding Unified social
Name of holding shareholder Main business
representative date credit code
Research development manufacture sales
service and installation of industrial refrigeration
products freezing and cold storage products
91210200241 large- medium- and small-size air-conditioning
Dalian Bingshan Group Co. Ltd. Ji Zhijian Jul. 3 1985
2917931 products petrochemical equipment products
electronic and electric control products home
appliance products and environment protection
products.Shares held by the holding
shareholder in other overseas and
domestic listed companies as the None
holding shareholder or ordinary
shareholder in the reporting period
Change in the holding shareholder in the reporting period
□ Applicable √ Not applicable
3. Actual controller of the Company
The company has no actual controller.According to the actual situation of the Company and its controlling shareholder and compared with the related
laws and regulations including Company Law of People’s Republic of China Management Regulation on Listing
34Company Acquisition and Stock Listing Rules of Shenzhen Stock Exchange with the confirmation of Liaoning
Huaxia law firm the Company released the Public Notice on Not Having Actual Controller.(No: 2015-025))
which was published on B04 of China Securities A19 of HK Commercial Daily and Cninfo website on April 24
2015.
100%100%
24.97%8.28%13.3%20.2%26.6%6.65%
Dalian Bingshan Group Co. Ltd.
20.27%
Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd.The actual controller controlled the Company through a trust or other asset management
□ Applicable √ Not applicable
4. Other legal-person shareholders holding of 10% or more shares
□ Applicable √ Not applicable
5.、controlling shareholders actual controllers restructuring the constraint to the stake and other
commitments underweight
□ Applicable √ Not applicable
35
Panasonic Corporation of China
Sanyo Electric Co. Ltd.Dalan Zhonghuida Refrigeration
Technology Co. Ltd.Dayang Co. Ltd.Dalian State-owned Assets Management Co. Ltd.Dalian Equipment Manufacture Investment
Co. Ltd.State-owned Assets Supervision and Administration
Commission ofDalian Municipality GovernmentSection 8 Information on Preferred Stock
□ Applicable √ Not applicable
In the reporting period the Company didn’t own preferred stock.
36Section 9 Information on Corporate bonds
□ Applicable √ Not applicable
In the reporting period the Company didn’t own corporate bonds.
37Section 10 Financial Report
To the shareholders of Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd
1. Opinion
We have audited the accompanying financial statements of Bingshan Refrigeration & Heat Transfer
Technologies Co. Ltd (“Bingshan Refrigeration & Heat Company”) which comprise the consolidated
and company’s balance sheets as at 31 December 2024 and the consolidated and company’s income
statements the consolidated and company’s cash flow statements the consolidated and company’s
statements of changes in equity for the year then ended and notes to these financial statements.In our opinion the accompanying financial statements have been prepared in accordance with the
requirements of Accounting Standards for Business Enterprises in all material respects and present fairly
the consolidated and the financial position of Bingshan Refrigeration & Heat Company as at 31
December 2024 and of their consolidated and the company’s financial performance and cash flows for
the year then ended.
2. Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Chinese Certified PublicAccountants. Our responsibilities under those standards are further described in the “Auditor’sResponsibilities for the Audit of the Financial Statements” section of our report. We are independent of
Bingshan Refrigeration & Heat Company in accordance with the Code of Ethics for Chinese Certified
Public Accountants and we have fulfilled our other ethical responsibilities of the code. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit.
3. Key Audit Matters
Key audit matters are those matters that we consider in our professional judgment were of most
significance in our audit of the financial statements of the current period. These matters were addressed
in the context of our audit of the financial statements as a whole and in forming our audit opinion
thereon and we do not express a separate opinion on these matters.Revenue Recognition
Key Audit Matter How the matter was addressed in the audit
As stated in the Note ‘ No.44V. The main audit procedures carried out for addressing the key audit
Notes to Consolidated Financial matters are as follows:
1. Understand and evaluate effectiveness of design and operation of
Statements’ revenue on the
the management’s internal control over revenue
consolidated statements for the year
2. Carried out analytical review and evaluate the reasonableness of
ended as of December 31 2024 is
sales income and gross profit margin by segmenting the business and
4531.1472 million Yuan. Revenue sales in conjunction with industry development and actual situation of
of Bingshan Refrigeration & Heat Bingshan Refrigeration & Heat Company.
38Company and its subsidiaries 3. Sampling test the sales contracts identify the clause and condition
mainly come from sales of products in respect to the contract performance obligation consideration and
risk and reward transfer of the ownership. Evaluate the revenue
and installation project. We consider
recognition of Bingshan Refrigeration & Heat Company whether it is
the revenue as the key audit matter
in line with the accounting standards.because of the significance of
4. Sampling select product sales revenue record reconcile to sales
revenue to the overall financial invoice contracts dispatch note acceptance note; Sampling select
statements and also the inherent installation sales revenue record reconcile to invoice installation
risk of revenue manipulation by the contracts and completion report and Evaluate the recognition of
management so for the special revenue whether is in line with the accounting standards
purpose. 5. Checking actual installation cost by reviewing the contract
budget contract invoice and supportive document with signature for
the equipment received to evaluate the cost whether it really incurred.
6. Combined with receivable audit perform confirmation procedures
for key clients
7. Perform cut-off test so to ensure whether the transaction is
recorded into the appropriate accounting period.
4. Other Information
The management of Bingshan Refrigeration & Heat Company (hereinafter referred to as the
“Management”) is responsible for the other information. The other information comprises the
information included in the Bingshan Refrigeration & Heat Company 2024 annual report but does not
include the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other information
and in doing so consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of the other
information we are required to report that fact. We have nothing to report in this regard.
5. Responsibilities of the Management and Those Charged with Governance for the Financial
Statements
The Management is responsible for the preparation of the financial statements in accordance with
Accounting Standards for Business Enterprises to achieve fair presentation; and designing implementing
and maintaining internal control which is necessary to enable that the financial statements are free from
material misstatement whether due to fraud or error.In preparing the financial statements the Management is responsible for assessing Bingshan
Refrigeration & Heat Company’s ability to continue as a going concern disclosing as applicable matters
39related to going concern and using the going concern basis of accounting unless the Management either
intends to liquidate Bingshan Refrigeration & Heat Company or to cease operations or have no realistic
alternative but to do so.Those charged with governance are responsible to overseeing Bingshan Refrigeration & Heat Company’s
financial reporting process.
6. Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement whether due to fraud or error and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an
audit conducted in accordance with auditing standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are generally considered material if individually
or in the aggregate they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.During the course of audit in accordance with auditing standards we exercise professional judgment and
maintain professional skepticism. We also carry out the following works:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to
fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence
that is sufficient and appropriate to provide a basis for our audit. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error as fraud may involve
collusion forgery intentional omissions misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit 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 its internal control (this sentence would be deleted in circumstance when we are also
responsible to issue an opinion on the effectiveness of internal control in conjunction with the audit of the
financial statements).
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Management.
(4) Conclude on the appropriateness of the Management’s use of the going concern basis of accounting
and based on the audit evidence obtained whether a material uncertainty exists related to events or
conditions that may cast significant doubt on Bingshan Refrigeration & Heat Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements in accordance with
the auditing standards or if such disclosures are inadequate we shall modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However
future events or conditions may cause Bingshan Refrigeration & Heat Company to cease to continue as a
going concern.
40(5) Evaluate the overall presentation structure and content of the financial statements and also
whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
(6) Obtain sufficient and appropriate audit evidence with respect to the financial information of
Bingshan Refrigeration & Heat entities or business activities and issue an audit opinion. We are
responsible for guiding supervising and performing group audits and take full responsibility for audit
opinions.We communicate with those charged with governance regarding among other matters the planned scope
and timing of the audit and significant audit findings etc. including any significant deficiencies in
internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with those
relevant ethical requirements regarding independence and to communicate with them all relationships
and other matters that may reasonably be thought to bear on our independence and related safeguards
where applicable.From the matters communicated with those charged with governance we determine those matters that
were of most significance in the audit of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation
prohibited public disclosure about the matter or when in rare circumstances we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.ShineWing Certified Public Accountants( LLP) CPA： Sui Guojun (Engagement Partner)
CPA： Zhang Shizhuo
China Beijing April 22 2025
41Consolidated Balance Sheet
Name of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd Amount Unit:RMB
ITEMS 31 December 2024 01 January 2024
Current Assets:
Monetary funds 1042143744.67 951039570.11
Settlement provision
Loans to banks and other financial institutions
Financial asset held for trading
Derivative financial assets
Notes receivable 352854863.48 353428922.42
Accounts receivable 1492234348.90 1576433924.16
Receivable financing 382073283.27 303585218.53
Prepayments 164042640.06 153388660.48
Insurance receivables
Reinsurance Receivable
ProVsion of reinsurance contract reserve
receivable
Other receivables 45759566.06 41396223.27
including: interest receivable
diVdend
receivable 11150.00 14495.00
Financial assets purchased under agreement to
resell
Inventories 1393653788.81 1638139479.14
Contractual asset 184760940.32 237076878.71
Held for sale assets
Non-current assets due within 1-year
57550.43
Other current assets 27636378.46 26074342.33
Total Current Assets 5085217104.46 5280563219.15
Non-Current Assets：
Loan and payment on other's behalf disbursed
Debt investment
Other debt investment
Long-term receivables 140017.84
Long-term equity investment 481973415.36 521274947.50
Other equity instrument investment
Other non-current financial assets 1683852.59 164024771.63
Investments properties 117931720.24 123589681.50
42Fixed assets 1211794069.63 1291851402.46
Construction in process 86221660.80 114801351.21
Production biological assets
Oil-gas assets
Right-of-use assets 23318732.46 30548057.08
Intangible assets 203999076.19 210554161.22
Development cost
Goodwill 286402171.93 286402171.93
Long-term prepaid expense 5719603.26 5346321.60
Deferred tax asset 103752827.71 113648859.53
Other non-current assets 20161234.88 20243349.44
Total Non-current Assets 2543098382.89 2882285075.10
Total Assets 7628315487.35 8162848294.25
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiuthe person in charge of the accounting office:Wu Bin
43Consolidated Balance Sheet (continued)
Name of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd Amount Unit:RMB
ITEMS 31 December 2024 01 January 2024
Current Liabilities:
Short-term borrowings 167283407.26 262287784.38
Loans from central bank
Loans from other banks
Financial liability held for trading
Derivative financial liabilities
Notes payable 569117426.19 670720999.48
Accounts payable 1601381790.80 1655835363.01
Advance received
Contractual liability 645711808.53 787685294.53
Financial assets sold under agreements to repurchase
Deposits received and hold for others
Entrusted trading of securities
Entrusted underwriting of securities
Employee pay payables 149497113.46
146734696.02
Taxes and duties payable 22216492.26
30276580.76
Other payables 227361207.96 278804152.17
including: interest payable
dividend payable 533156.00 533156.00
Fees and commissions payable
Amount due to reinsurance
Held for sale liabilities
Non-current liabilities due within 1-year 161421072.72 150645347.64
Other current liabilities 203315864.43
191009526.67
Total Current Liabilities 3740297516.91 4181008411.36
Non-current Liabilities:
Insurance contract provision
Long-term borrowings 547346541.25 679700000.00
Bonds Payable
including: preference share
perpetual debt
Lease liability 19071845.78 24134986.97
Long-term payables 12451396.59 10331937.30
Long-term employee payables
Provision 2703369.53 4544802.88
Deferred income 90733480.29 98274267.80
Deferred Tax liabilities 26601881.56 60811462.07
44Other non-current liabilities
Total Non-current Liabilities 877797457.02
698908515.00
Total Liabilities 4439206031.91 5058805868.38
Owners Equity(or Shareholders Equity):Paid-in capital（Share capital) 843212507.00 843212507.00Other equity instrument
Including:preference share
perpetual capital securities
Capital reserve 717097098.38 717097098.38
Less: Treasury stock
Other comprehensive income 2208669.73 2208669.73
Chartered reserve 449374.96
-
Surplus reserves 895618513.69 867159439.34
△Provision for general risk
Undistributed profit 673966177.84 617386488.34
Equity attributable to equity holders of the Company 3132102966.64 3047513577.75
*Minority interest 57006488.80 56528848.12
Total Equity 3189109455.44 3104042425.87
Total Liabilities and Equity 7628315487.35 8162848294.25
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiuthe person in charge of the accounting office:Wu Bin
45Balance Sheet of Parent Company
Name of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd Amount Unit:RMB
ITEMS 31 December 2024 01 January 2024
Current Assets:
Monetary funds 256913490.58 177430880.63
Tradable financial asset
Derivative financial assets
Notes receivable 72589334.53 64984113.98
Accounts receivable 466964861.72 612933182.91
Receivable financing 4679597.82 13562917.97
Prepayments 85421842.41 62988427.81
Other receivables 128957016.22 138883665.74
including: interest receivable
dividend receivable 100000000.00 110000000.00
Inventories 325468330.52 394763078.40
Contractual assets 73359376.07 106401142.42
Held for sale assets
Non-current assets due within 1-year
Other current assets 9963685.06 3046484.01
Total Current Assets 1424317534.93 1574993893.87
Non-Current Assets：
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 2906530622.51 2930381144.87
Other equity instrument investment
Other non-current financial assets 368710.09 162709629.13
Investments properties 81939998.15 86587170.43
Fixed assets 591199135.48 632491373.17
Construction in process 27671778.14 42867809.00
Production biological assets
46Oil-gas assets
Right-of-use assets 10576907.44 13360039.29
Intangible assets 66109306.96 68437853.58
Development cost
Goodwill
Long-term unamortized expense 3315026.79 4434379.95
Deferred tax asset 33187901.79 27809290.39
Other non-current assets
Total Non-current Assets 3720899387.35 3969078689.81
Total Assets 5145216922.28 5544072583.68
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiuthe person in charge of the accounting office:Wu Bin
47Balance Sheet of Parent Company (continued)
Name of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd Amount Unit:RMB
ITEMS 31 December 2024 01 January 2024
Current Liabilities:
Short-term borrowings 120327137.01 219000000.00
Financial liability held for trading
Derivative financial liabilities
Notes payable 108226992.06 172920936.32
Accounts payable 351385116.46 418383161.14
Advance received
Contractual liability 104206582.50 108021877.17
Employee pay payables 11354626.22 12109637.82
Taxes and duties payable 12135282.22 3523630.66
Other payables 109923634.05 174010076.60
including: interest payable
dividend payable 533156.00 533156.00
Held for sale liabilities
Non-current liabilities due within 1-year 140940549.56 134539973.21
Other current liabilities 69349185.65
73756610.21
Total Current Liabilities 1032256530.29 1311858478.57
Non-current Liabilities:
Long-term borrowings 541046541.25 679700000.00
Bonds Payable
including: preference share
perpetual debt
Lease liability 8626368.06 10878947.77
Long-term payables
Long-term employee payables
Provision for liabilities
Deferred income 54972980.29 61369767.80
Deferred Tax liabilities 22714636.67
-
Other non-current liabilities
Total Non-current Liabilities 774663352.24
604645889.60
Total Liabilities 1636902419.89 2086521830.81
Owners Equity(or Shareholders Equity):Paid-in capital（Share capital) 843212507.00 843212507.00Other equity instrument
48Including:preference share
perpetual capital securities
Capital reserve 755146592.54 755146592.54
Less: Treasury stock
Other comprehensive income 1246569.06 1246569.06
Chartered reserve
Surplus reserves 895618513.69 867159439.34
Undistributed profit 1013090320.10 990785644.93
Total Equity 3508314502.39 3457550752.87
Total Liabilities and Equity 5145216922.28 5544072583.68
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiuthe person in charge of the accounting office:Wu Bin
49Consolidated Income Statement
Name of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd Amount Unit:RMB
Item Current year Last year
Ⅰ、Total operating revenue 4531147208.98 4815941467.70
Including: Operating revenue 4531147208.98 4815941467.70
Interest income
Earned premiums
Fees and commission income
Ⅱ、Total cost of operation 4503075182.20 4718340202.43
Including: Cost of operation 3763808216.19 4005597458.19
Interest expenses
Fees and commission expenses
Payments to surrenders of insurance contracts
Net amount of insurance claims expenses
Net charges of provision for insurance contracts
Dividends policy expenses
Reinsurance expenses
Taxes and surcharges 34663849.86 33968677.08
Selling and distribution expenses 240710529.95 233862026.48
Administrative expenses 285364414.70 250568245.50
R&D 155526315.57 164185717.71
Financial expenses 23001855.93 30158077.47
Including: Interest expenses 33022192.73 37918133.57
Interest income 9280290.94 10558433.14
add: other income 37818319.73 30179668.51
investment income (Loss listed with "-") 70351715.21 1106628.72
Including: income from investments in
30246020.75-4884731.99
associates and joint ventures
Gain arising from
derecognition of financial asset measured at amortized cost
Exchange gain (Loss listed with "-")
Gain on hedging of net exposure (Loss
listed with "-")
Gain on FV change (Loss listed with "-") 27205532.40 14073910.32
Loss on impairment of credit(Loss listed
-17220602.29-69732055.75
with "-")
Loss on impairment of assets(Loss listed
-27575460.64-14405692.66
with "-")
Gain on asset disposal(Loss listed with "-") 5010221.27 -1184930.14
Ⅲ、Operating profit (Loss listed with "-") 123661752.46 57638794.27
Add: Non-operating income 11482254.04 14533922.09
Less: Non-operating expenses 9500703.48 6966477.53
Ⅳ、 Total profit (Loss listed with "-") 125643303.02 65206238.83
Less: Income tax expenses 11961323.25 11031699.08
50Ⅴ、Net profit (Net loss listed with "-") 113681979.77 54174539.75
(I) Classification by continuity 113681979.77 54174539.75
1、Net profit from continuing operation 113681979.77 54174539.75
2、Net profit from discontinuing operation
(II) Classification by ownership 113681979.77 54174539.75
1、Net profit attributable to equity
110335139.0649375900.83
holders(shareholders) of the Company
2、Minority interest 3346840.71 4798638.92
Ⅵ、 Other comprehensive income net off tax - -
Net other comprehensive income net off tax
attributable to equity holders(shareholders) of the parent - -
company
(Ⅰ)Items that may not be reclassified subsequently to the
--
income statement
1.Change in net asset/liability from remeasurment on
defined benefit plan
2.Under equity method proportionate share of other
comprehensive income in invested company that may not be
reclassified subsequently to the income statement
3.FV change of other equity instrument investment
4.FV change of own credit risk
5.Others
(Ⅱ)Items that may be reclassified subsequently to the
--
income statement
1.Under equity method proportionate share of other
comprehensive income invested company that may be
reclassified subsequently to the income statement
2.FV change of other debt instrument investment
3.Financial assets reclassfied into other comprehensive
income
4.Credit impairment provision of other debt investment
5.Cash flow hedges effective portion
6.Foreign currency translation difference
7.Others
Net other comprehensive income net off tax attributable
to Minority interest
Ⅶ、Total comprehensive income 113681979.77 54174539.75
Total comprehensive income attributable to parent
110335139.0649375900.83
Company
Total comprehensive income attributable to minority
3346840.714798638.92
interest
Ⅷ、 Earnings per share
(Ⅰ)Basic earnings per share 0.13 0.06
(Ⅱ)Diluted earnings per share 0.13 0.06
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiuthe person in charge of the accounting office:Wu Bin
51Income Statement of Parent Company
Name of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co. LtAmount Unit:RMB
Item Current year Last year
Ⅰ、Operating revenue 696459652.07 1147567097.70
Less: Cost of operation 604399184.03 949400269.07
Taxes and surcharges 11978974.98 12915605.84
Selling and distribution expenses 51122858.42 58418856.46
Administrative expenses 90534796.55 83623829.67
R&D 21804970.80 34643670.44
Financial expenses 27283214.03 30961451.10
Including: Interest expenses 26750004.75 30060509.49
Interest income 609808.44 928862.25
Add: Other income 12306792.38 13476491.91
Investment income (Loss listed with "-") 174148036.93 137165248.86
Including: income from investments in associates and
29697030.53-5506787.08
joint ventures
Gain arising from derecognition
of financial asset measured at amortized cost
Gain on hedging of net exposure (Loss listed with "-")
Gain on FV change (Loss listed with "-") 27205532.40 14073910.32
Loss on impairment of credit(Loss listed with "-") -22722877.37 -26975462.06
Loss on impairment of assets(Loss listed with "-") -19598707.34 -15398757.36
Gain on asset disposal(Loss listed with "-") -1269088.31 25669.74
Ⅱ、Operating profit (Loss listed with "-") 59405341.95 99970516.53
Add: Non-operating income 269878.27 -
Less: Non-operating expenses 1128310.68 451394.65
Ⅲ、 Total profit (Loss listed with "-") 58546909.54 99519121.88
Less: Income tax expenses -17513215.19 -4746187.51
Ⅳ、Net profit (Net loss listed with "-") 76060124.73 104265309.39
1、Net profit from continuing operation 76060124.73 104265309.39
2、Net profit from discontinuing operation
Ⅴ、 Other comprehensive income net off tax - -
(Ⅰ)Items that may not be reclassified subsequently to the income
--
statement
521.Change in net asset/liability from remeasurment on defined
benefit plan
2.Under equity method proportionate share of other
comprehensive income in invested company that may not be
reclassified subsequently to the income statement
3.FV change of other equity instrument investment
4.FV change of own credit risk
5.Others
(Ⅱ)Items that may be reclassified subsequently to the income
--
statement
1.Under equity method proportionate share of other
comprehensive income invested company that may be reclassified
subsequently to the income statement
2.FV change of other debt instrument investment
3.Financial assets reclassfied into other comprehensive income
4.Credit impairment provision of other debt investment
5.Cash flow hedges effective portion
6.Foreign currency translation difference
7.Others
Ⅵ、Total comprehensive income 76060124.73 104265309.39
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiu the person in charge of the accounting office:Wu Bin
53Consolidated Cash Flow Statement
Name of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co. LtAmount Unit:RMB
Item Current year Last year
1. Cash flows from operating activities:
Cash received from sales of goods and rendering of services 4132863246.10 4113893219.72
Net increase in deposits from customers and inter-banks
deposits
Net increase in loans from central bank
Net increase in loans from other financial institutions
Cash receipts of premium of direct insurance contracts
Net cash received from reinsurance contracts
Net increase in deposits from insurance policy holders and
investment
Cash receipts of interest fees and commission
Net increase in placement from banks and other financial
institution
Net increase in sales and repurchase operations
Entrusted trading of securities
Cash received from taxes refund 25456160.07 28408313.78
Cash received relating to other operating activities 124986561.38 126828658.19
Sub-total of cash inflows from operating activities 4283305967.55 4269130191.69
Cash paid for goods and services 2877529073.45 3076384953.42
Net increase in loans and disbursement to customers
Net increase in deposit with central bank and inter-banks
Cash paid for claims of direct insurance contracts
Net increase of loans to other banks
Cash paid for interest fee and commission
Cash paid for dividends of insurance policies
Cash paid to and on behalf of employees 756915550.24 735972826.45
Payments of taxes and surcharges 176680947.47 190790155.61
Cash paid relating to other operating activities 235026121.95 290422923.95
Sub-total of cash outflows from operating activities 4046151693.11 4293570859.43
Net cash flows from operating activities 237154274.44 -24440667.74
2. Cash flows from investment activities:
Cash received from return of investments 45841618.00 -
Cash received from investments income 252459403.89 44342521.09
Net cash received from disposal of fixed assets intangible
32620564.761668006.05
assets and other long-term assets
Net cash received from disposal of subsidiaries and other
business units
Cash received relating to other investing activities 268000000.00
Sub-total of cash inflows from investing activities 598921586.65 46010527.14
Cash paid to acquire fixed assets intangible assets and
78719169.3189321945.50
other long-term assets
Cash paid for investments
54Net increase in pledged deposits
Net cash paid to acquire subsidiaries and other business
-12056951.02
units
Cash paid relating to other investing activities 150000000.00 168000000.00
Sub-total of cash outflow from investing activities 228719169.31 269378896.52
Net cash flows from investing activities 370202417.34 -223368369.38
3. Cash flows from financing activities
Cash received from investment absorption
Including: Cash received by subsidiaries from
investment absorpotion of non-controlling interest
Cash received from loans granted 320155297.55 385643636.90
Cash received relating to other financing activities 25044611.52 65675932.80
Sub-total of cash inflows from financing activities 345199909.07 451319569.70
Cash paid for settlement of borrowings 527254659.28 341900000.00
Cash paid for dividends profits appropriation or payments
57066184.9241772038.58
of interest
Including: Dividens and profits paid to non-controlling
interest
Cash paid relating to other financing activities 90702937.55 70690408.48
Sub-total of cash outflows from financing activities 675023781.75 454362447.06
Net cash flows from financing activities -329823872.68 -3042877.36
4. Effect of changes in foreign exchange rate on cash and cash
3606528.52-369552.71
equivalents
5. Net increase in cash and cash equivalents 281139347.62 -251221467.19
Add: Cash and cash equivalents at beginning of year 670440335.98 921661803.17
6. Cash and cash equivalents at end of year 951579683.60 670440335.98
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiuthe person in charge of the accounting office:Wu Bin
55Cash Flow Statement of Parent Company
Name of Enterprise： Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd Amount Unit :RMB
Item Current year Last year
1.Cash flow from operating activities
Cash receipts from sale of goods or rendering of services 848888657.18 1051980732.24
Refunds of taxes - -
Other cash receipts in operating activities 34563283.45 41293162.40
Sub-total of cash inflows from operating activities 883451940.63 1093273894.64
Cash payments for goods and services acquired 713836118.74 838210003.11
Cash payments to and on behalf of employees 111473766.42 117935562.40
Tax and duties payments 32861684.04 47714652.88
Other cash payments for operating activities 53929712.27 61625120.00
Sub-total of cash outflows from operating activities 912101281.47 1065485338.39
Net cash flows from operating activities -28649340.84 27788556.25
2.Cash flows from investing activities
Cash receipts from return of investments 45841618.00
Cash receipts from investments income 368507803.12 71227317.94
Net cash receipts from disposal of fixed assets intangible assets and other
611082.5033000.00
long-term assets
Net cash receipts from disposal of subsidiaries and other businesses
Other cash receipts in investing activities
Sub-total of cash inflows from investing activities 414960503.62 71260317.94
Cash payments for acquired fixed assets intangible assets and other long-term
4821677.1015937868.92
assets
Cash payments for investment 16000000.00 253285500.00
Net cash payments for acquisition of subsidiaries and other businesses
Other cash payments in investing activities
Sub-total of cash outflows from investing activities 20821677.10 269223368.92
Net cash flows from investment activities 394138826.52 -197963050.98
3.Cash flows from financing activities
Cash received from capital injection
Cash receipts from borrowings 229000000.00 336000000.00
Other cash receipts in financing activities
56Sub-total of cash inflows from financing activities 229000000.00 336000000.00
Cash paid for settlement of borrowings 447170833.33 296900000.00
Cash paid for dividends profits appropriation or payments of interest 50616061.71 35400176.36
Other cash payments in financing activities 15648719.37 21382927.78
Sub-total of cash outflows from financing activities 513435614.41 353683104.14
Net cash flows from financing activities -284435614.41 -17683104.14
4.Effect of changes in foreign exchange rate on cash and cash equivalents -171942.78 -61918.58
5.Net increases in cash and cash equivalents 80881928.49 -187919517.45
Add: the beginning balance of cash and cash equivalent 173113251.05 361032768.50
6.The ending balance of cash and cash equivalent 253995179.54 173113251.05
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiu the person in charge of the accounting office:Wu Bin
57Consolidated Statement of Changes in Shareholer's Equity
For the Year of 2024
Name of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd Amount Unit:RMB
Current year
Equity attributable to the equity holders of the Company
Item Paid-up capital Other equity instrument Other △General
Less: Treasury Undistributed Minority interests Total equity
(share capital) Capital reserves comprehensive Special reserves Surplus reserves risk Others Sub-total
shares profits
preference perpetual income provision
others
share bond
1. Balance at end of last year 843212507.00 - - - 717097098.38 - 2208669.73 449374.96 867159439.34 - 617386488.34 - 3 047513577.75 56528848.12 3104042425.87
Add: Changes in accounting policies - -
Correction of prior periods errors -
Business combination within the same control -
Others -
2. Balance at beginning of current year 8 43212507.00 - - - 717097098.38 - 2208669.73 449374.96 867159439.34 - 617386488.34 - 3047513577.75 56528848.12 3104042425.87
3. Increase/ Decrease for current year (Decrease listed
--------449374.9628459074.35-56579689.50-84589388.89477640.6885067029.57
with "-")
（Ⅰ）Total of comprehensive income - 110335139.06 110335139.06 3346840.71 113681979.77
（Ⅱ）Capital contribution and reduction - - - - - - - - - - - - - - -
1.Ordinary share - -
2.Capital contributed by other equity instrument holders - -
3.Share-based payments charged to equity - -
4.Others - -（III）Profit appropriations - - - - - - - - 28459074.35 - -53755449.56 - -25296375.21 -2869200.03 - 28165575.24
1.Appropriation to surplus reserves 28459074.35 -28459074.35 - -
2.Appropriation to general risks provision - -
3.Appropriation to equity holders (or shareholders) -25296375.21 -25296375.21 -2869200.03 -28165575.24
4.Others - -（IV）Transfer within equity - - - - - - - - - - - - - - -
1.Transfer of capital reserve to capital (share capital) - -
2.Transfer of surplus reserves to capital (share capital) - -
3.Surplus reserves making up of losses - -
4.Carried over the change in net asset/liability from
--
remeasurment on defined benefit plan
5.Transfer of other comprehensive to retained earnings - -
6.Others - -
（V）Special reserves - - - - - - - -449374.96 - - -449374.96 - -449374.96
1.Provision for special reserve 9641589.11 9641589.11 9 641589.11
2.Utilisation of special reserve 10090964.07 10090964.07 1 0090964.07（VI）Others - -
4、Balance at end of current year 8 43212507.00 - - - 717097098.38 - 2208669.73 - 895618513.69 - 673966177.84 - 3132102966.64 57006488.80 3189109455.44
legal representative： financial controller： accounting supervisor ：
58Consolidated Statement of Changes in Shareholer's Equity(continued)
Last year
Equity attributable to the equity holders of the Company
Item Paid-up capital Other equity instrument Other △General
Less: Treasury Undistributed Minority interests Total equity
(share capital) Capital reserves comprehensive Special reserves Surplus reserves risk Others Sub-total
shares profits
preference perpetual income provision
others
share bond
1. Balance at end of last year 843212507.00 - - - 7 17097098.38 - 2208669.73 - 825226634.15 - 618445922.58 - 3006190831.84 54077970.99 3060268802.83
Add: Changes in accounting policies -4594.76 -65810.05 -70404.81 -7761.79 -78166.60
Correction of prior periods errors -
Business combination within the same control -
Others -
2. Balance at beginning of current year 843212507.00 - - - 7 17097098.38 - 2208669.73 - 825222039.39 - 618380112.53 - 3006120427.03 54070209.20 3060190636.23
3. Increase/ Decrease for current year (Decrease listed
-------449374.9641937399.95--993624.19-41393150.722458638.9243851789.64
with "-")
（Ⅰ）Total of comprehensive income - 49375900.83 49375900.83 4798638.92 54174539.75
（Ⅱ）Capital contribution and reduction - - - - - - - - - - - - - - -
1.Ordinary share - -
2.Capital contributed by other equity instrument holders - -
3.Share-based payments charged to equity - -
4.Others - -（III）Profit appropriations - - - - - - - - 41937399.95 - -50369525.02 - - 8432125.07 -2340000.00 - 10772125.07
1.Appropriation to surplus reserves 41937399.95 -41937399.95 - -
2.Appropriation to general risks provision - -
3.Appropriation to equity holders (or shareholders) -8432125.07 -8432125.07 -2340000.00 -10772125.07
4.Others - -（IV）Transfer within equity - - - - - - - - - - - - - - -
1.Transfer of capital reserve to capital (share capital) - -
2.Transfer of surplus reserves to capital (share capital) - -
3.Surplus reserves making up of losses - -
4.Carried over the change in net asset/liability from
--
remeasurment on defined benefit plan
5.Transfer of other comprehensive to retained earnings - -
6.Others - -
（V）Special reserves - - - - - - - 449374.96 - - 449374.96 - 449374.96
1.Provision for special reserve 1 3214150.71 13214150.71 1 3214150.71
2.Utilisation of special reserve 1 2764775.75 12764775.75 1 2764775.75（VI）Others - -
4、Balance at end of current year 843212507.00 - - - 7 17097098.38 - 2208669.73 449374.96 867159439.34 - 617386488.34 - 3047513577.75 56528848.12 3104042425.87
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiu the person in charge of the accounting office:Wu Bin
59Statement of Changes in Shareholer's Equity of Parent Company
For the Year of 2024
Name of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd
Current year
Item Paid-up capital
Other equity instrument Other
Less: Treasury
(share capital) Capital reserves comprehensive Special reserves Surplus reserves Undistributed profits Others Total equity
shares
preference perpetual income
others
share bond
1. Balance at end of last year 8 43212507.00 755146592.54 1246569.06 867159439.34 9 90785644.93 3457550752.87
Add: Changes in accounting policies -
Correction of prior periods errors -
Others -
2. Balance at beginning of current year 843212507.00 - - - 755146592.54 - 1246569.06 - 867159439.34 9 90785644.93 - 3457550752.87
3. Increase/ Decrease for current year (Decrease listed
--------28459074.3522304675.17-50763749.52
with "-")
（Ⅰ）Total of comprehensive income - 76060124.73 7 6060124.73
（Ⅱ）Capital contribution and reduction - - - - - - - - - - - -
1.Ordinary share -
2.Capital contributed by other equity instrument holders -
3.Share-based payments charged to equity -
4.Others -（III）Profit appropriations - - - - - - - - 28459074.35 -53755449.56 - -25296375.21
1.Appropriation to surplus reserves 28459074.35 -28459074.35 -
2.Appropriation to equity holders (or shareholders) -25296375.21 - 25296375.21
3.Others -（IV）Transfer within equity - - - - - - - - - - - -
1.Transfer of capital reserve to capital (share capital) -
2.Transfer of surplus reserves to capital (share capital) -
3.Surplus reserves making up of losses -
4.Carried over the change in net asset/liability from
-
remeasurment on defined benefit plan
5.Transfer of other comprehensive to retained earnings -
6.Others -
（V）Special reserves - - - - - - - - - - - -
1.Provision for special reserve 3418435.92 3418435.92
2.Utilisation of special reserve 3418435.92 3418435.92（VI）Others -
4、Balance at end of current year 8 43212507.00 - - - 755146592.54 - 1246569.06 - 895618513.69 1013090320.10 - 3508314502.39
legal representative： financial controller： accounting supervisor ：
60Statement of Changes in Shareholer's Equity of Parent Company(continued)
Name of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd For the Year of 2024 Amount Unit:RMB
Last year
Paid-up capital Other equity instrumentItem OtherLess: Treasury Special
(share capital) Capital reserves comprehensive Surplus reserves Undistributed profits Others Total equity
shares reserves
preference perpetual income
others
share bond
1. Balance at end of last year 8 43212507.00 755146592.54 1246569.06 825226634.15 936931213.43 3361763516.18
Add: Changes in accounting policies -4594.76 -41352.87 -45947.63
Correction of prior periods errors -
Others -
2. Balance at beginning of current year 843212507.00 - - - 755146592.54 - 1246569.06 - 825222039.39 9 36889860.56 - 3361717568.55
3. Increase/ Decrease for current year (Decrease listed
--------41937399.9553895784.37-95833184.32
with "-")
（Ⅰ）Total of comprehensive income - 104265309.39 104265309.39
（Ⅱ）Capital contribution and reduction - - - - - - - - - - - -
1.Ordinary share -
2.Capital contributed by other equity instrument holders -
3.Share-based payments charged to equity -
4.Others -（III）Profit appropriations - - - - - - - - 41937399.95 -50369525.02 - -8432125.07
1.Appropriation to surplus reserves 4 1937399.95 -41937399.95 -
2.Appropriation to equity holders (or shareholders) -8432125.07 -8432125.07
3.Others -（IV）Transfer within equity - - - - - - - - - - - -
1.Transfer of capital reserve to capital (share capital) -
2.Transfer of surplus reserves to capital (share capital) -
3.Surplus reserves making up of losses -
4.Carried over the change in net asset/liability from
-
remeasurment on defined benefit plan
5.Transfer of other comprehensive to retained earnings -
6.Others -
（V）Special reserves - - - - - - - - - - - -
1.Provision for special reserve -
2.Utilisation of special reserve -（VI）Others -
4、Balance at end of current year 843212507.00 - - - 755146592.54 - 1246569.06 - 867159439.34 990785644.93 - 3457550752.87
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiu the person in charge of the accounting office:Wu Bin
61I. General Information
Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd (the “Company”) previously
named as Dalian Refrigeration Company Limited was reorganized and reformed from main
part of former Dalian Refrigeration Factory. On December 8 1993 the Company went to the
public as a listed company at Shenzhen Stock Exchange Market. On March 20 1998 the
Company successfully went to the public at B share market and listed at Shenzhen Stock
Exchange Market with total share capital of RMB350014975.00Yuan. The registered
address is No. 106 East Liaohe Road Dalian Economic and Technological Development
Zone Liaoning Province as same as the headquarters’ address. The unified social credit code
is 912102002423613009 on the business license.According to the 13th meeting of the 6th generation of board extraordinary general meeting
for 2015 fiscal year and ' Restricted share incentive plan (draft)' the Company planned to
introduce an ordinary share to incentive objectives which was 10150000 number of shares
would be granted to 41 share incentive objectives at granted price of RMB5.56Yuan per share.Up to March 12 2015 the Company received new added share capital of
RMB10150000.00Yuan.The general meeting for 2015 fiscal year held on April 21 2016 approved the profit
distribution policy for the year of 2015 which agrees the profit distribution based on the total
360164975 number of shares as share capital paid share dividend of 5 common shares for
every 10 shares through capital reserve. The policy stated above was fully implemented on
May 5 2016 and the registered capital was altered to 540247462.00Yuan.The 17thmeeting of the 6th generation of board was held on June 4 2015 and the 2nd interim
shareholders’ meeting was held on June 24 2015 meeting deliberated and passed the
proposal of non-public offering of ‘A shares’. China’s Securities Regulatory Commission
issued SFC license [2015]3137 on December 30 2015 approving that new non-public
offering cannot exceeded 38821954 numbers of shares. The company implemented the post
meeting procedures for China’s Securities Regulatory Commission which is regarding
adjustment of bottom price and the number of the shares issued after the implementation of
profit distribution policy of 2015 in May 2016 and accordingly revised the upper limit of
non-public offering of share to58645096 number of new ‘A shares’. The company issued the
non-public offering of 58645096 number of ‘A shares’ to 7 investors and as a result the
total number of shares of the Company is changed to 598892558 shares and the par value is
1yuan per share and the total share capital is 598892558.00Yuan.
According to the ‘Restricted Share Incentive Plan(draft) of Dalian Refrigeration Company
Limited for the year of 2016’ and the ‘Proposal regarding the shareholders’ meeting
authorized the board of directors to implement the Restricted Share Incentive Plan’ approved
62on the 3rd provisional general meeting held on September 13 2016 the 9th meeting of the 7th
generation of board deliberated and passed the ‘Proposal about granting the restricted shares
to incentive targets’ on September 20 2016 and set September 20 2016 as share granted date
and granted 12884000 number of restricted shares to 118 incentive targets at granted price
of 5.62Yuan per share. By November 22 2016 The Company has actually received the
newly subscribed registered share capital of 12884000.00Yuan subscribed by incentive
targets.On May 19 2017 the general meeting for 2016 fiscal year was held and profit appropriation
scheme for 2016 FY was approved which was every 10 shares will be increased by 4 shares
through capital reserve based on the total 611776558 number of shares. After the profit
appropriation scheme the registered capital was changed to RMB856487181.00Yuan.On December 28 2017 The Company held the 3rd extraordinary shareholders meeting in
2017 and reviewed and approved the “Proposal on Repurchasing and Retiring PartiallyRestricted Stocks of the 2016 Restricted Stock Incentive Plan”. On March 8 2018 after The
Company's repurchase and cancellation The Company implemented the corresponding
capital reduction procedures according to law. The registered capital of The Company was
changed from 856487181.00Yuan to 855908981.00 Yuan.On May 4 2018 The Company held the 21st meeting of the 7th Board of Directors andreviewed and approved the “Proposal on Repurchasing and Retiring Partially RestrictedStocks of the 2015 Restricted Stock Incentive Plan". On June 29 2018 after The Company's
repurchase and cancellation The Company implemented the corresponding capital reduction
procedures according to law. The registered capital of The Company was changed from
855908981.00 Yuan to 855434087 .00Yuan.
On January 17th 2019 the 1st interim shareholders’ meeting was held and approved for“Proposal on Termination of the 2016 Restricted Stock Incentive Plan and Repurchasing andRetiring Restricted Stocks Plan”. Up to February 25th 2019 The Company has completed the
repurchasing and retiring stocks plan respectively The Company shall perform the
corresponding capital reduction procedures in accordance with the law and the registered
capital decreased from 855434087.00Yuan to 843212507.00Yuan.On December 20th 2019 The Company held the 7th meeting of the 8th Board of Directors and
approved to change The Company’s name from Dalian Refrigeration Company Limited to
Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd.The company is in general equipment manufacturing industry. The main business activities
are the research and development production and sales of various industrial refrigeration
components as well as the design production and installation of complete engineering
projects. The main products include: scroll type piston type screw type compressor units
cold water machine and other refrigeration equipment and all kinds of complete sets of
63refrigeration projects.
This financial report is approved by the board of directors on April 242024. The financial
statements will be reviewed at general meeting.II. Financial Statements Preparation Basis
（1） Preparing basis
The group’s financial statements are prepared according to the actual occurred transactions
and events and in accordance with ‘Accounting Standards for Business Enterprises’ its
application guidelines interpretations and other relevant provisions promulgated by the
Ministry of Finance (collectively referred to as "Accounting Standards for Business
Enterprises") and " No. 15 of Information Disclosure and Reporting Rules for Publicly Listed
Companies - General Provisions for Financial Reports" (revised in 2023) promulgated by the
China Securities Regulatory Commission (hereinafter referred to as the "CSRC").
（2） Going concern
The group has assessed the capacity to continually operate within 12 months since December
31 2023 and hasn’t found the major issues impacting on the sustainable operation ability.
The Company’s financial statements are prepared on the basis of going concern assumption.III. Significant Accounting Policies and Accounting Estimates
1. Declaration for compliance with accounting standards for business enterprises
The financial statements are prepared in line with the requirements of Accounting Standard
for Business Enterprise and reflect the relative information of the financial position for the
year ended as of December 31 2023 operating performance cash flow of the Company and
the group for the year then ended truly and fully.
2. Accounting period
The group adopts the Gregorian calendar year as accounting period from Jan 1 to Dec 31.
3. Operating cycle
The group sets twelve months for one operating cycle.
4. Functional currency
The group adopts RMB as functional currency.
5. Materiality criteria set up method and basis
The financial statements preparation and disclosure are in line with materiality. For those
matters to be disclosed and need judgement for materiality materiality criteria set up method
and basis are as follows:
64In the notes to
Disclosures involved by the financial Materiality criteria set up method and
materiality judgement statements basis
Significant receivables with Single provision is over 10 million Yuan and
individual provision for bad Note VI.3 represents more than 10% of the total
debts provision
Single provision is over 10 million Yuan and
Collection or reverse of
Note VI.3 represents more than 10% of the total
significant receivables
provision
Single provision is over 10 million Yuan and
Significant receivables written
Note VI.3 represents more than 10% of the total
off
provision
Significant construction in
Note XVI.16 Single project budget over 30 million Yuan
progress
The book value of long-term equity
investment in a single investee accounts for
more than 10% of the group's net assets and
the amount is greater than 100 million Yuan
Significant JV or associates Note VIII.3
or the gain or loss on investment under the
long-term equity investment equity method
accounts for more than 10% of the group's
consolidated net profit
Subsidiary’s net assets are more than10% of
Significant subsidiary the group asses and its net profit is more than
10% of consolidated profit
6. Accounting for business combination under same control and not under same control
（1） Business combination under the same control
Business combination under the same control is the situation where entities participating the
merger are controlled by the same party or controlled by parties under same ultimate control
before and after merger and the control is not temporary.The group as an acquirer the assets and liabilities that the group obtained in a business
combination under the same control should be measured on the basis of their carrying amount
of the acqiree in the ultimate control party’s consolidated financial statements on the
combining date. As for the balance between the carrying amount of the net assets obtained by
the combining party and the carrying amount of the consideration paid by it the capital
65surplus shall be adjusted. If the capital surplus is not sufficient to be offset the retained
earnings shall be adjusted.
（2） Business combination not under same control
Business combination not under the same control is the situation where entities participating
the merger are not controlled by the same party or not controlled by parties under same
ultimate control before and after merger.When the group is an acquirer for a business combination not under same control the asset
liability and contingent liability obtained shall be measured at the fair value on the
acquisition date. The difference when combination cost exceeds proportionate share of the
fair value of identifiable net assets of acquire should be recognized as goodwill. If the
combination cost is less than proportionate share of the fair value of identifiable net assets of
acquiree firstly fair value of identifiable asset liability or contingent liability shall be
reviewed and so the fair value of non-monetary assets or equity instruments issued in the
combination consideration after review still the combination cost is less than proportionate
share of the fair value of identifiable net assets of acquire the difference should be recognized
as non-operating income.If a business consolidation not under common control is finally achieved in stages when
preparing the consolidated financial statements the acquirer shall remeasure its previously
held equity interest in the acquiree at its fair value on acquisition date and recognize the gain
or loss as investment income for the current period. Other comprehensive income under
equity method accounting rising from the interest held in acquiree in relation to the period
before the acquisition and changes in the value of its other equity other than net profit or loss
other comprehensive income and profit appropriation shall be transferred to investment gain
or loss for the period in which the acquisition incurs excluding the other comprehensive
income from the movement on the remeasurement of ne asset or liability of defined benefit
plan.
7. Criteria of control judgment and method of preparation of consolidated financial
statements
Consolidation scope is determined on the control basis including the Company and all
subsidiaries controlled by the Company. Control criteria is that the group has the power over
the investees enjoy the variable return by involving the relative activities of the investees and
also has the impact on the return amount through the power over the investees.If subsidiaries adopt different accounting policy or have different accounting period from the
parent company appropriated adjustments shall be made in accordance with the Company
policy in preparation of the consolidated financial statements.All significant intergroup transactions outstanding balances and unrealized profit shall be
66eliminated in full when preparing the consolidated financial statements. Portion of the
subsidiary’s equity not belonging to the parent profit loss for the current period portion of
other comprehensive income and total comprehensive belonging to minority interest shall bepresented separately in the consolidated financial statements under “minority interest ofequity” minority interest of profit and loss” “other comprehensive income attributed tominority interest” and “total comprehensive income attributed to minority interest” title.If a subsidiary is acquired under common control its operation results and cash flow shall be
consolidated since the beginning of the consolidation period. When preparing the comparative
consolidated financial statements adjustments shall be made to relevant items of comparative
figures as regarded that reporting entity established through consolidation has been always
existing since the point when the ultimate controlling party starts to have the control.If a subsidiary is acquired not under common control its operation results and cash flow shall
be consolidated since the beginning of the consolidation period. In preparation of the
consolidated financial statements adjustments shall be made to subsidiary’s financial
statements based on the fair value of its all identifiable assets liability or contingent liability
on the acquisition date.When the group partially disposes of the long –term equity investment in subsidiary without
losing the control over it in the consolidated financial statements the difference between
disposals price and respective disposed value of share of net assets in the subsidiary since the
acquisition date or combination date shall be adjusted for capital surplus or share premium
no enough capital surplus then adjusted for retained earnings.When the group partially disposes of the long –term equity investment in subsidiary and lose
the control over it in preparation of consolidated financial statements remaining share of
interest in the subsidiary shall be remeasured on the date of losing control. Sum of the share
disposal consideration and fair value of remaining portion of shareholding minus the share of
the net assets in the subsidiary held based on the previous shareholding percentage since the
acquisition date or combination date the balance of above is recognized as investment
gain/loss for the period and goodwill shall be written off accordingly. Other comprehensive
income relevant to share investment in subsidiary shall be transferred to investment gain /loss
for the period on the date of losing control.When the group partially disposes of the long –term equity investment in subsidiary and lose
the control over it by stages if all disposing transactions are bundled each individual
transaction shall be seen as a transaction of disposal of a subsidiary by losing control. The
difference between the disposal price and the share of the net assets in the subsidiary held
before the date of losing control shall be recognize as other comprehensive income until the
date of losing control where it is transferred into investment gain/ loss for the current period.If the equity investment in the subsidiary is disposed of by stages through multiple
67transactions until the control is lost and it is not a bundled transaction each transaction shall
be accounted for separately according to whether the control is lost.
8. Cash and cash equivalent
The cash listed on the cash flow statements of the Company refers to cash on hand and bank
deposit. The cash equivalents refer to short-term (normally with original maturities of three
months or less) and liquid investments which are readily convertible to known amounts of
cash and subject to an insignificant risk of changes in value.
9. Translation of foreign currency
（1） Foreign currency transaction
Foreign currency transactions are translated at the spot exchange rate issued by People’s Bank
of China (“PBOC”) on the 1st day of the month when the transactions are accounted initially.At the balance sheet date foreign currency monetary items should be converted into reporting
currency at the balance sheet date’s spot exchange rate. Exchange differences should be taken
into the current profits and losses except special foreign currency borrowings for construction
and producing assets which are qualifying for assets capitalization should be capitalized.Foreign currency non-monetary items which are recorded in historical cost should be still
recorded at the spot exchange rate when the transaction occurred and no change on reporting
currency amount. Foreign currency non-monetary items which are measured at fair value
should be recorded in the spot exchange rate at the date measuring the fair value and the
differences should be recognized as profit and loss from fair value changes and included in
the current profits and losses. Invested capital in foreign currency shall be converted into
reporting currency at FX rate at when the investment is received and no foreign exchange
difference arises between capital received and monetary items.
10. Financial instruments
（1） Recognition and derecognition of financial instruments
The group shall recognize a financial asset or a financial liability when becoming party to the
contractual provisions of the instrument.An entity shall derecognize a financial asset(or a part of it or a group of similar financial asset)
when and only when: 1) the contractual rights to the cash flows from the financial asset
expire or 2) the entity transfers contractual rights to receive the cash flows of a financial asset
or assumes a contractual obligation to pay those cash flows received to the 3rd party in full
amount in time according to the ‘passing-through’ agreement and the entity substantially
transfers all the risks and rewards of ownership of the financial asset in nature or the entity
neither transfers nor retains substantially all the risks and rewards of ownership of the
financial asset but the entity has not retained control.
68Financial liabilities shall be derecognized if the obligation of the liability is fulfilled
cancelled or expired. An exchange between an existing borrower and lender of debt
instruments with substantially different terms shall be accounted for as an extinguishment of
the original financial liability and the recognition of a new financial liability. Similarly a
substantial modification of the terms an existing financial liability shall be accounted for as an
extinguishment of the original financial liability and the recognition of a new financial
liability. The difference between the carrying amount of a financial liability extinguished and
the consideration paid including any non-cash assets transferred or liabilities assumed shall
be recognized in profit or loss.A regular way purchase or sale of financial assets shall be recognized and derecognized as
applicable using trade date accounting or settlement date accounting.
（2） Classification and measurement of financial assets
At initial recognition the group shall classify financial assets as measured at amortized cost
fair value through other comprehensive income or fair value through profit or loss on the
basis of both the group’s business model for managing the financial assets and the contractual
cash flow characteristics of the financial asset. Only when the business model for managing
the financial assets is changed the affected financial assets shall be reclassified.In determining the business model the group considers among others the way in which the
company evaluates and reports the performance of financial assets to key management
personnel the risks affecting the performance of financial assets and the way in which they
are managed and the way in which the relevant business managers are remunerated. In
assessing whether the objective is to collect contract cash flows the group needs to make an
analytical judgment on the reasons timing frequency and value of the sale of the financial
assets before the maturity date.In determining the contract cash flow characteristics the group is required to determine
whether the contract cash flow is only the payment of principal and interest based on the
outstanding principal (including the assessment of the time value of money correction
judging any significant difference between it and the baseline cash flow/ for financial assets
containing early repayment characteristics is required to determine whether the fair value of
early repayment features is very small).Financial assets are measured at fair value at the initial recognition but accounts receivable or
notes receivable arising from the sale of goods or provision of services etc. do not contain a
significant financing component or do not consider the financing component of less than one
year the initial measurement is based on the transaction price.For financial assets that are measured at fair value the related transaction costs are directly
included in current profit or loss and those costs of other categories of financial assets are
69included in their initial recognized amounts.
Financial assets subsequent measurement based on the classification
1) A financial asset measured at amortized cost
A financial asset shall be measured at amortized cost if both of the following conditions are
met: * the financial asset is held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows;* the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding. The financial assets of this category include: monetary fund
receivable notes receivable and other receivables.
2) Debt instruments measured at fair value through other comprehensive income
A financial asset shall be measured at fair value through other comprehensive income if both
of the following conditions are met: * the financial asset is held within a business model
whose objective is achieved by both collecting contractual cash flows and selling financial
assets and * the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.The effective interest rate is applied to interest income. A gain or loss arising from a financial
asset measured at fair value through other comprehensive income which is not part of
hedging relationship shall be recognized in other comprehensive income apart from interest
income impairment loss and foreign exchange difference. When this type of financial assets
is derecognized accumulated gain or loss previously in the other comprehensive income shall
be out of it and accounted into retained earnings when the financial asset is derecognized. The
financial assets of this category include: receivable financing.
3) Equity instruments measured at fair value through other comprehensive income
The group may make an irrevocable election for particular investments in equity instruments
that it would be measured at fair value through other comprehensive income but once the
election is made it is irrevocable. The group only recognizes the dividend (apart from the
dividend as investment cost pay back) into profit and loss and fair value movement
subsequently will be recognized into comprehensive income and no need for impairment
provision. When this type of financial assets is derecognized accumulated gain or loss
previously in the other comprehensive income shall be out of it and accounted into retained
earnings when the financial asset is derecognized. The financial asset of this category is
equity instruments.
4) A financial asset measured as fair value through profit or loss
Apart from classified as the amortized cost financial assets and as fair value through other
comprehensive income financial assets a financial asset is classified as fair value through
70profit or loss. The group shall subsequently measure this financial asset at its fair value
except for hedging accounting any gain or loss on FVTPL shall be accounted into profit and
loss. The financial assets of this category include: tradable financial asset other non-current
financial asset.A financial asset shall be classified as fair value through profit or loss if it is recognized
contingent consideration through business combination which is not under same control
situation.
（3） Classification basis for recognition and measurement of financial liability
Except for the financial guarantee contract commitments to provide a loan at a below-market
interest rate and financial liabilities that arise when a transfer of a financial asset does not
qualify for derecognition or when the continuing involvement approach applies the group
shall initially classify all financial liabilities as it measured at amortized cost or financial
liabilities at fair value through profit or loss. For financial liabilities that are measured at fair
value the related transaction costs are directly included in current profit or loss and those
costs of other categories of financial assets are included in their initial recognized amounts.Financial liabilities subsequent measurement based on the classification
1) Financial liabilities as it subsequently measured at amortized cost
Effective interest method is applied to financial liabilities as subsequently measured at
amortized cost
2) Financial liability as it measured at fair value through profit or loss
Financial liability measured at fair value through profit or loss including tradable financial
liability (derivative instrument of financial liability included) and designated as financial
liability measured at fair value through profit or loss. Tradeable financial liability (including
derivate instrument of financial liability) are subsequently measured at fair value. The net
gain or loss arising from changes in fair value are recorded in profit or loss for the period in
which they are incurred. Financial liability designated as it measured at fair value through
profit or loss shall be subsequently measured at fair value except for changes in fair value
caused by changes in the group's own credit risk which are recognized in other
comprehensive income other changes in fair value are recognized in profit or loss for the
current period; The group recognizes all fair value changes (including the amount affected by
changes in its own credit risk) in profit or loss if the inclusion of changes in fair value
caused by changes in its own credit risk in other comprehensive income would cause or
widen the accounting mismatch in profit or loss for the current period.
（4） Financial instrument impairment
Based on expected credit loss the group shall apply the impairment requirements for the
71followings: * a financial asset measured at amortized cost; * debt investment measured
at fair value and changes in fair value is through other comprehensive income; * lease
receivable; * a contractual asset and financial guarantee contract.Expected credit loss is the weighted average of credit losses with the respective risks of a
default occurring as the weights. A credit loss herein is referred to as the present value at
original effective rate of the difference between the contractual cash flows that are due to the
group under the contract; and the cash flows that the Company expects to receive that's the
present value of the total cash shortage. The group shall measure expected credit losses of a
financial instrument in a way that reflects: * an unbiased and probability-weighted amount
that is determined by evaluating a range of possible outcomes; * the time value of money;
and * reasonable and supportable information that is available without undue cost or effort at
the reporting date about past events current conditions and forecasts of future economic
conditions.Expected credit loss of financial instrument is assessed individually and portfolio. The group
assesses the expected credit loss based on the portfolio in accordance with the common
characteristics of credit risk which involves type of financial instrument credit risk grade and
age of trade receivables.When assessing expected credit losses the group considers all reasonable and supportable
information including that which is forward-looking. In making these judgments and
estimates the group extrapolates the expected changes in the debtor's credit risk based on
historical repayment data combined with factors such as economic policies macroeconomic
indicators and industry risks. Different estimates may affect the provision for impairment and
the provision already made may not equal the actual amount of impairment losses in the
future.
1) Impairment testing method of receivable and contract asset
For receivable notes receivable and contract asset etc. which don’t contain significant
financing component and arise from sales of products and service provision the group adopts
simplified method to account expected credit loss provision at an amount equal to the whole
lifetime expected credit losses.For lease premium receivable trade receivable containing significant financing component
and contract asset the group adopts simplified method to account expected credit loss
provision at an amount equal to the whole lifetime expected credit losses.The group determines the expected credit loss of trade receivable on the basis of portfolios
with common characteristics of credit risk which are considered by expected credit loss
measurement reflection by reference to historical experience of credit loss and by
comparison of receivable past due days/ receivable age with default risk rate unless the single
72credit loss is separately recognized for contractual payments that is significant in amount and
credit impaired. If certain client is significant different from others in terms of credit risk
characteristics or the client’s credit risk has significantly increased such as experiencing
severe finance difficulty its expected credit loss is obviously higher than it to be at
accounting age the group will make separate credit loss provision for this client’s receivable.* Portfolio category and recognition basis of receivable ( contract asset)
The group classifies accounts receivable (and contract assets) according to the similarity and
relevance of credit risk characteristics based on information such as age nature of payments
credit risk exposure historical debt collection etc. For accounts receivable (and contract
assets) the group determines that aging is the primary factor affecting its credit risk and
therefore the group assesses its expected credit losses on the basis of aging portfolios. The
group calculates the overdue age based on the payment date agreed in the contract.No expected credit loss is recognized for receivables from related party within consolidated
scope as the group assesses its credit risk is relatively low.* Portfolio category and recognition basis of notes receivable
Portfolio category Expected credit loss accounting estimate policy
Lower credit risk assessed by the management no
Bank acceptance note portfolio
expected credit loss recognition
Commercial acceptance note Same as receivables portfolio and provided for excepted
portfolio credit loss allowance based on expected credit loss rate
2) Impairment testing method of debt investment other debt investment loan commitments
and financial guarantee contracts
With the exception of financial assets (such as debt investments other debt investments) loan
commitments and financial guarantee contracts for which the simplified measurement method
is adopted above the group adopts the general method (three-stage method) for the provision
of expected credit losses. At each balance sheet date the group assesses whether its credit risk
has increased significantly since the initial recognition and if the credit risk has not increased
significantly since the initial recognition in the first stage the group measures the loss
provision at an amount equivalent to the expected credit loss over the next 12 months and
calculates interest income based on the carrying balance and effective interest rate; If the
credit risk has increased significantly since the initial recognition but no credit impairment
has occurred in the second stage the group measures the loss provision at an amount
equivalent to the expected credit loss over the entire duration and calculates interest income
based on the carrying balance and effective interest rate; If credit impairment occurs after
initial recognition in the third stage the group measures the loss provision at an amount
equivalent to the expected credit loss over the entire duration and calculates interest income at
73amortized costs and effective interest rates. For financial instruments with only low credit risk
at the balance sheet date the group assumes that their credit risk has not increased
significantly since initial recognition
The whole life expected credit loss refers to the expected credit loss caused by all possible
default events during the whole expected life of the financial instrument. Expected credit
losses over the next 12 months are expected credit losses resulting from defaults on financial
instruments that may occur within 12 months after the balance sheet date (or if the expected
duration of the financial instrument is less than 12 months) and are part of the overall
expected credit losses over the life of the financial instrument.Criteria of significant increase in credit risk and definition of credit impaired assets are
disclosed on Note X.1
（5） Recognition and measurement of transfer of financial assets
A financial asset is derecognized when the financial asset has been transferred together with
substantial all risks and rewards to the transferee. A financial asset can not be derecognized
when the substantial all risks and rewards to the financial asset has been retained. When the
all risks and rewards of the financial asset are neither transferred nor retained but the group
has given up its control of the financial asset the financial asset shall be derecognized and
recognize the asset and liability originated. Where control of the financial asset is not
relinquished the relevant financial asset shall be recognized according to the extent to which
it continues to be involved in the transferred financial asset and the relevant liability shall be
recognized accordingly.In the case where the financial asset as a whole qualifies for the derecognition conditions the
difference between the carrying value of transferred financial asset at the derecognition date
and the sum of the consideration received for transfer and the accumulated amount of changes
in fair value in respect of the amount of partial derecognition ( financial assets involved in
transfer must qualify the following conditions: * the financial asset is held within a
business model whose objective is not only for collecting contractual cash flows but also for
sale; * the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest based on the principal amount outstanding)
that was previously recorded under other comprehensive income is transferred into profit or
loss for the period.In the case where only part of the financial asset qualifies for derecognition the carrying
amount of financial asset being transferred is allocated between the portions that to be
derecognized and the portion that continued to be recognized according to their relative fair
value. The difference between the amount of consideration received for the transfer and the
accumulated amount of changes in fair value that was previously recorded in other
comprehensive income for the asset partially qualified for derecognition (financial assets
74involved in transfer must qualify the following conditions:* the financial asset is held
within a business model whose objective is not only for collecting contractual cash flows but
also for sale; ; * the contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest based on the principal amount
outstanding ) and the above-mentioned allocated carrying amount is charged to profit or loss
for the period.Where the assets continue to be involved by providing financial guarantees for the transferred
financial assets the assets that continue to be involved in the same form are recognized at the
lower of the carrying value of the financial assets and the amount of the financial guarantees.Financial guarantee amount means the maximum amount of consideration received that will
be required to be repaid.
（6） Distinguish between financial liability and equity instrument and accounting
Financial liability and equity instrument shall be distinguished in accordance with the
following standards: * if the group cannot unconditionally avoid paying cash or financial
asset to fulfil a contractual obligation the contractual obligation is qualified or financial
liability. For certain financial instrument although there are no clear terms and conditions to
include obligation of paying cash or other financial liability contractual obligation may
indirectly be formed through other terms and conditions. * the group’s own equity
instrument shall also be considered whether it is the substitute of cash financial asset or it is
the remaining equity after the issuer deducts liability enjoyed by the equity holder if it must
or can be used to settle a financial asset. If the former the instrument is a financial liability of
the issuer otherwise it is an equity instrument of the issuer. In certain circumstances financial
instrument contract is classified as financial liability if financial instrument contract specifies
the Company must or can use its own equity to settle the financial instrument the contractual
amount of right or obligation equals to that of the numbers of own equity instrument available
or to be paid multiplied by fair value when settling nevertheless the amount is fixed or
varied partially or fully based on the its own equity’s market price(such as interest rate
certain commodity’s or financial instrument’s price variance).When classifying a financial instrument (or its component) in the consolidated statements the
group takes all terms and conditions agreed by the its member and instrument holder into
consideration. If the group because of the instrument as a whole bears settlement obligation
by paying cash other financial asset or other means resulted in financial liability the
instrument shall be classified as financial liability.
（7） Derivative financial instrument
The group uses derivative financial instruments such as foreign exchange forward contracts
commodity forward contracts and interest rate swaps to hedge exchange rate risk commodity
price risk and interest rate risk respectively. Derivative financial instruments are initially
75measured at their fair value on the date the derivative transaction contract is signed and are
subsequently measured at their fair value. A derivative instrument with a positive fair value is
recognized as an asset and a negative fair value is recognized as a liability.Except hedging accounting all gain or loss from the FV movement of derivative instrument
shall be recognized in the income statement.
（8） Financial asset and financial liability offset
Financial asset and financial liability shall be presented in the balance sheet separately and
cannot be offset unless the following conditions are all met: * the Company has the legal
right to recognized offset amount and the right is enforceable. * the Company plans to
receive or a legal obligation to pay cash at net amount.
11. Inventories
Inventories are raw material low-valuable consumable goods on transit working-in-progress
finished goods and cost to fulfil the contract etc.The inventories are processed on perpetual inventory system and are measured at their actual
cost on acquisition. Weighted average cost method is taken for measuring the inventory
dispatched or used. Low value consumables and packaging materials is recognized in the
income statement by one-off method.At the balance sheet date inventory is measured at the lower of cost and net realizable value.If the cost of the inventory is higher than its net realizable value a provision is made for the
decline in the price of the inventory and it is accounted in the current profit or loss. Net
realizable value is the amount of the estimated selling price of inventory in daily activities
less the estimated costs to be incurred at completion estimated selling expenses and related
taxes.Impairment provision for the group's raw materials/goods in stock/WIP/ cost to fulfil the
contract is made on an individual inventory item and when determining its net realizable
value the inventory of goods in stock and materials used for sale are determined at the
estimated selling price of the inventory less estimated selling expenses and related taxes;
Inventory of materials held for use in production is determined at the estimated selling price
of the finished goods produced less the estimated costs to be incurred up to completion
estimated selling expenses and
12. Contract asset and contact liability
(1) Contract asset
Contract asset is an entity’s right to consideration in exchange for goods or services that the
entity has transferred to a customer when that right is conditioned on something other than the
passage of time. For example the group sold two goods that can be clearly distinguished to
76the client then the group has the right to consideration in exchange of the goods because one
of the goods are delivered but the consideration’s collection is conditioned on the other
goods delivery in this case the right to consideration shall be recognized as contract asset.Expected credit loss recognition of contract asset is referred to the Note III、10 Provision for
impairment of financial assets.
(2) Contract liability
An entity’s obligation to transfer goods or services to a customer for which the entity has
received consideration (or the amount is due) from the customer. If a customer pays
consideration or the group has a right to an amount of consideration that is unconditional
before the group transfers a good or service to the customer the group shall present the
contract as a contract liability when the payment is made or the payment is due (whichever is
earlier).
13. Assets relevant to contract cost
(1) Assets recognition methods in relation to contract cost
Assets relevant to contract cost in the group include cost to fulfill the contract and cost to
obtain a contract. Cost to fulfill the contract is presented under inventory and other
non-current assets. Cost to obtain a contract is presented under other current assets and other
non-current assets.If the costs incurred in fulfilling a contract with a customer are not within the scope of
another Standard such as inventory fixed assets or intangible assets an entity shall
recognize an asset from the costs incurred to fulfill a contract only if those costs meet all of
the following criteria: the costs relate directly to a contract or to an anticipated contract
including direct labor direct materials and overheads which is clearly stated to be borne by
the client and any other cost in line with the contract; the costs enhance resources of the group
that will be used in performance obligations in the future; and the costs are expected to be
recovered.An asset as the incremental costs of obtaining a contract with a customer shall be recognized
if the group expects to recover those costs. The group may recognize the incremental costs of
obtaining a contract as an expense when incurred if the amortization period of the asset t is
one year or less. The incremental costs of obtaining a contract are those costs that the group
incurs to obtain a contract with a customer that it would not have incurred if the contract had
not been obtained (for example a sales commission). Other expenses incurred in order to
obtain a contract rather than the incremental cost and expected to be recovered (regardless of
whether the contract is obtained such as travelling expenses) shall be recognized as an
expense when incurred unless those costs are explicitly chargeable to the customer.
77(2) Amortization of asset relevant to contract cost
An asset recognized in accordance with contract cost shall be amortized on a systematic basis
that is consistent with the transfer to the customer of the goods or services to which the asset
relates.
(3) Impairment of asset relevant to contract cost
If the carrying value of the group's assets related to the contract cost is higher than the
following two differences the group will make the impairment provision for the excessive
part and recognize the asset impairment loss: * The remaining consideration that the group
is expected to obtain due to the transfer of the commodities related to the asset; * Estimate
the costs to be incurred for the transfer of the relevant goods
14. Long-term equity investment
Long term equity investments are the equity investment in subsidiary in associated company
and in joint venture.
(1) Judgement on control joint control and significant influence
Equity investments in which the group has a significant impact on the investee are
investments in associates.Significant influence refers to having the power to participate in the decision-making of the
financial and operational policies of the investee but not being able to control or jointly
control the formulation of these policies with other parties. Significant influence exists when
the entity directly or indirectly owned 20% or more but less than 50% voting shares in the
investee unless there is explicit evidence that the company cannot participate in the
production and operation decisions of the investee or have control over the investee.When having less than 20% voting shares the group’s significant influence still exists if the
followings are taken into accounts: representation on the board of directors or equivalent
governing body of the investee participation in financial or operating activities
policy-making processes material transactions between the investor and the investee
interchange of managerial personnel or provision of essential technical information etc.The group’s joint venture investment is an equity investment whereby the parties have jointly
control over it and have rights to the net assets of the investee. Joint control is the
contractually agreed sharing of control of an arrangement which exists only when decisions
about the relevant activities require the unanimous consent of the parties sharing control. The
group’s judgement on joint control is based on the joint arrangement that all participants or
combinations of participants collectively control the arrangement and that decisions relating
to the activities of the arrangement must be made with the unanimous consent of those
participants who collectively control the arrangement.
78(2) Accounting
The group initially measures the long-term investment in line with the initial cost for
acquiring the investment.The initial investment cost for long-term equity investment acquired through business
combination under common control is the carrying amount presented in the consolidated
financial statements of the share of net assets at the combination date in the acquired
company. If the carrying amount of net assets at the combination date in the acquired
company is negative investment shall be recognized at zero.If long-term equity investment is acquired through business combination not under common
control initial investment cost shall be the combination cost. If the equity investment of
investee not under common control is acquired by stages and it’s not a bundled transaction
the carrying amount of the equity investment held previously plus newly increased investment
cost are taken as the initial investment cost.Apart from the long-term equity investments acquired through business combination the cost
of investment for the long-term equity investments acquired by cash payment is the amount of
cash paid relevant direct expense tax and other necessary expenses for the investment. For
long-term equity investment acquired by issuing equity instruments the cost of investment is
the fair value of the equity instrument issued.The Company adopts cost model for investment in subsidiary on separate financial statement.Under cost model the long-term equity investment is measured at initial investment cost.When more investment is added it shall increase the carrying amount of investment by
adjusting the fair value of additional investment and relevant transaction expenses. Cash
dividend or profit declared by investee shall be recognized as investment gain/loss for the
period based on the proportion share in the investee.The Company adopts equity method for investment in joint venture and affiliate. Under
equity method if the initial investment cost is greater than the share of fair value of the
identifiable net assets in the investee the initial investment cost of long-term equity
investment is no need to be adjusted; If the initial investment cost is less than the share of fair
value of the identifiable net assets in the investee the difference shall be recorded into the
current profit and loss and the cost of long-term equity investment shall be adjusted at the
same time.Long-term equity investment subsequently under equity method shall be adjusted for it
carrying amount according to the share of equity increase or decrease in the investee. The
Company shall recognize its share of the investee’s net gain or losses after the investee’s net
profit adjustment based on the fair value of the investee’s individual identifiable assets at
the acquisition date after making appropriate adjustments thereto in conformity with the
79accounting policies and accounting period and offsetting the unrealized profit or loss from
the inter-group transactions not constituting the business between the entity and its
associates and joint ventures according to the shareholding attributable to the group (full
amount of loss shall be recognized if the inter-group transaction is impairment loss). The
group recognizes net losses incurred by investee to the extent that the carrying value of
long-term equity investments and other long-term interests substantially constituting net
investments in investee are written down to zero except where the group is obliged to bear
additional losses.The difference between the book value of long-term equity investment and actual acquisition
cost shall be recognized in the gain or loss of investment when the long-term equity
investment is disposed of.For long-term investments accounted under equity method other comprehensive income
recorded shall be accounted on the same basis as the investee directly disposing of related
assets or liability when equity method is not used any longer. The movements of
shareholder’s equity other than the net profit or loss other comprehensive income and profit
distribution previously recorded in the shareholder’s equity of the Company are recycled to
investment income for the period on disposal.If the remaining equity after the partially disposal is still accounted for under the equity
method the relevant other comprehensive income previously recognized under the equity
method is treated on the same basis as the direct disposal of the relevant assets or liabilities
by the investee and is carried forward on a proportional basis and the owner's equity which
is apart from net profit and loss other comprehensive income and profit distribution of the
investee shall be recognized and proportionally transfers to current investment income.Where the entity has no longer joint control or significant influence in the investee company
as a result of partially disposal of the investment the remaining investment will be accounted
for in line with the Recognition and Measurement of Financial Instruments Standard -No 22
of Accounting Standards for Business Enterprises(No7 Caikuai [2017]) and the difference
between the fair value of remaining investment at the date of losing joint control or
significant influence and its carrying amount shall be recognized in the profit or loss for the
year.Where the entity has no longer control over the investee company as a result of partially
disposal of the investment the remaining investment will be changed to be accounted for
using equity method providing remaining joint control or significant influence over the
investee company. The difference between carrying amount of disposed investment and
consideration received actually shall be recognized as investment gain or loss for the period
and investment shall be adjusted accordingly as if it was accounted for under equity model
80since acquisition. Where the entity has on longer joint control or significant influence in the
investee as a result of disposal the investment shall be accounted for in accordance with the
Recognition and Measurement of Financial Instruments Standard -No 22 of Accounting
Standards for Business Enterprises(No7 Caikuai [2017]) and difference between the carrying
amount and disposal consideration shall be recognized as investment gain or loss for the
period and the difference between the fair value of remaining investment at the date of losing
control and its carrying amount shall be recognized in the profit or loss for the year.
15. Investment property
Investment property is held to earn rentals or for capital appreciation or both and includes
property building and use right of land. They are measured at cost model.Investment property is depreciated or amortized on straight line basis and its expected useful
life net residual value rate and annual depreciation rate is as follows:
Useful life Estimated net residual Annual
Category
(years) value rate (%) depreciation rate
Use right of land 50 0 2
Property and Buildings 40 3/10 2.25-2.43
16. Fixed assets
Recognition criteria of fixed assets: defined as the tangible assets which are held for the
purpose of producing goods rendering services leasing or for operation & management and
have more than one year of useful life.Fixed assets shall be recognized when the economic benefit probably flows into the group and
its cost can be measured reliably. Fixed assets include: building machinery transportation
equipment electronic equipment and others.All fixed assets shall be depreciated unless the fixed assets had been fully depreciated and are
still being used and land is separately measured. Straight-line depreciation method is adopted
by the group. Estimated net residual value rate useful life depreciation rate as follows:
Estimated net
Useful life Annual depreciation
No Category residual value rate
(years) rate (%)
(%)
1 Property and Buildings 20-40 3、5、10 2.25-4.85
2 Machinery equipment 5-22 0.5-1、3、5、10 4.09-19.90
3 Transportation equipment 3-15 1、3、5、10 6-33.33
4 Electronic equipment &others 3-15 0-1、3、5、10 6-33.33
81The group should review the estimated useful life estimated net residual value and
depreciation method at the end of each year. If any change has occurred it shall be regarded
as a change in the accounting estimates.
17. Construction in progress
The cost of construction in progress is determined according to the actual construction
expenditure including the necessary construction expenditure incurred during the
construction period the capitalized borrowing cost and other related expenses before the
construction reaches the condition expected for use.Constructions in progress are transferred to fixed assets based on the construction budget and
actual costs on the date when completing and achieving estimated usable status and the fixed
assets should be depreciated in the next month. Adjustment will be made upon confirmation
of their actual values after implementing the completion and settlement procedures.The construction in progress shall be transferred to fixed assets when it reaches the expected
usable state and the criteria are as follows:
Items Criteria of transferring to FA
Property and Buildings Earlier of actual starting of use and completion of inspection
Machinery equipment Earlier of actual starting of use and completion of installation / inspection
18. Intangible asset
The group’s intangible assets include use right of land patents non-patented technologies and
others. They are measured at actual cost at acquisition day. For acquired assets the actual cost
is measured at actual price paid and relevant other expenses. Invested intangible asset shall be
measured at actual cost as contracted or agreed value however fair value will be taken if the
contracted or agreed value is not fair.
(1) Useful life and the basis for recognition estimation amortization method or review
procedure
Use right of land shall be amortized evenly within the amortization period since the remised
date. Patents technologies and other intangible assets are amortized over the shortest of their
estimated useful life contractual beneficial period and useful life specified in the law.Amortization charge is included in the cost of assets or expenses as appropriate for the
period according to the usage of the assets. At the end of the year for definite life of
intangible assets their estimated useful life and amortization method shall be assessed. Any
change shall be treated as change on accounting estimate.
(2) The scope and accounting of research and development
The group separates the expenditure on internal research and development projects into
82research phase expenditure and development phase expenditure. At research phase
expenditure are expenses directly relevant to research activity including R&D employee’s
salary materials depreciation technology cooperation cost and assessment testing fees. At
development phase expenses can be capitalized only when meeting the following conditions:
(a)the technical feasibility of completing the intangible asset so that it will be available for
use or sale.(b)its intention to complete the intangible asset and use or sell it.(c)how the intangible asset will generate probable future economic benefits. Among other
things the entity can demonstrate the existence of a market for the output of the intangible
asset or the intangible asset itself or if it is to be used internally the usefulness of the
intangible asset.(d)the availability of adequate technical financial and other resources to complete the
development and to use or sell the intangible asset.(e)its ability to measure reliably the expenditure attributable to the intangible asset during its
development.Any expenditure not qualifying for the above conditions shall be accounted into profit and
loss account.The projects expenditure will go to the development stage and start to be capitalized after
meeting the above conditions and passing the technical feasibility and economic feasibility
studies and being approved after evaluation.
19. Impairment of long-term assets
The group assesses whether there is any indication that long-term equity investment
investment property under cost model fixed assets construction in progress right-of-use
asset and intangible assets with definite useful life may be impaired. If there is any indication
that an asset may be impaired the asset will be tested for impairment. Goodwill and
intangible asset with infinite useful life and development cost not reaching available for use
status are tested for impairment annually no matter there is any indication of impairment or
not.
(1) Non-current asset impairment excluding financial asset (expect goodwill)
When testing the impairment the group recognized the recoverable amount of an asset which
the higher of its fair value less costs to sell and the present value of the future cash flows
expected to be derived from the asset. After impairment test any difference of carrying
amount over its recoverable amount shall be recognized as impairment loss.The group estimates recoverable amount based on an individual asset. If it is not possible to
estimate the recoverable amount of an individual asset the recoverable amount is determined
83on the basis of the asset groups or asset portfolio to which the asset belongs. Asset portfolio is
determined based on whether the major cash inflow generated by the asset group is
independent from the cash inflow of other assets or the asset portfolio.Net amount which FV less disposal cost is reference to the agreed sale price or observable
market price for similar asset within the arm length transaction. When estimating the present
value of future cash flows management must estimate the expected future cash flows of the
asset or group of assets and select an appropriate discount rate to determine the present value
of future cash flows.
(2) Goodwill impairment
The group allocates the carrying value of the goodwill generated from the business
combination to the relevant asset group or to the relevant asset group combination which is
difficult to allocate to the relevant asset group，in a reasonable way from the date of purchase.When conducting impairment tests on goodwill contained within the related asset group or
asset group combination if there are signs of impairment in the asset group or asset group
combination related to goodwill the impairment test shall firstly be conducted on the asset
group or asset group combination excluding goodwill and the recoverable amount shall be
calculated and compared with the relevant carrying value so to recognize the corresponding
impairment loss; Then an impairment test is conducted on the asset group or asset group
combination containing goodwill to compare the carrying value with the recoverable amount.If the recoverable amount is lower than the carrying value the impairment loss amount is first
offset against the carrying value of goodwill allocated to the asset group or asset group
combination and then offset the carrying value of the asset group and asset group
combination based on the proportion of the carrying value of other assets in the asset group or
asset group combination without goodwill.The methodology parameters and assumptions of the goodwill impairment test are referred in
Notes VI.19.Once the impairment loss on the assets is recognized it can not be reversed in a subsequent
period.
20. Long-term prepaid expense
The group's long-term prepaid expense refers to landscape fees renovation &decoration
expenses and other expenses paid and should be allocated over 1year.It will be amortized
evenly within its beneficial period. The remaining unamortized expense should be charged
into income statement if long-term prepaid expense can not bring the beneficial inflows.Landscape fees will be amortized for 10 years and renovation& decoration fees will be
amortized for 5-10 years.
21. Employee benefits
84Employee’s benefit comprises short-term benefit post-employment benefit termination
benefit and other long-term employee’s benefit.Short-term benefit includes salary bonus allowance welfare social insurance housing funds
labor union expense staff training expense during the period in which the service rendered
by the employees the actually incurred short term employee benefits shall be recognized as
liability and shall be recognized in P&L or related cost of assets based on benefit objective
allocated from the service rendered by employees.Post-employment benefits include the basic pension scheme and unemployment insurance etc.Based on the risk and obligation borne by the Company post-employment benefits are
classified into defined contribution plan and defined benefit plan. For defined contribution
plan liability shall be recognized based on the contributed amount made by the Company to
separate entity at the balance sheet date in exchange of employee service for the period and it
shall be recorded into current profit and loss account or relevant cost of assets in accordance
with beneficial objective.Termination benefits are employee benefits payable as a result of either the group’s decision
to terminate an employee’s employment before the contract due date or an employee’s
decision to accept voluntary redundancy in exchange for those benefits. The group shall
recognize the termination benefits as a liability and an expense on the earlier date (1) when
the group cannot unilateral withdraw the termination benefits due to employment termination
plan or due to redundancy suggestion or (2) when the group can recognize the restricting cost
or expense arising from paying termination benefits.Other long-term employee’s benefit refers to all other employee benefits other than short-term
benefit post-employment benefit and termination benefit.
22. Provision
When the Company has transactions such as commitment to externals discounting the trade
acceptance note unsettled litigation or arbitration which meets the following criterion
provision should be recognized: It is the Company's present obligation; carrying out the
obligation will probably cause the Company's economic benefit outflow; the obligation can
be reliably measured.Provision is originally measured on the best estimate of outflow for paying off the present
obligations. When determining the best estimate need to consider the risk uncertainty time
value of monetary relevant to contingent items. The group needs to review the present best
estimate and accordingly adjust the carrying value of the provision account.
23. Revenue recognition and measurement
The group recognizes revenue when it has fulfilled its contractual performance obligations i.e.
85when the customer has obtained control of the relevant goods or services. Control right of
goods or services refers to the ability to direct the use of and obtain substantially all of the
remaining benefits from the asset.If the contract between the group and the customer meets the following five conditions at the
same time the group has fulfilled the performance obligation when the customer obtains the
control of the relevant goods or services and the revenue is recognized:
1) the parties to the contract have approved the contract and promised to fulfill their own
obligations;
2) the contract specifies the rights and obligations of parties related to the transferred
commodities;
3) the contract has explicit payment terms related to the transferred goods;
4) the contract has commercial substance where the performance of the contract will change
the company's future cash flow risk time distribution or amount;
5) the consideration to which the company is entitled as a result of the transfer of goods to the
customer is likely to be recovered.When the group transfers control of a good or service over time it satisfies a performance
obligation and recognizes revenue over time only if one of the following criteria is met
otherwise it shall be the performance obligation at a point in time.
1) the customer simultaneously receives and consumes the benefits provided by the entity’s
performance as the entity performs
2) the group’s performance creates or enhances an asset (for example work in progress)
that the customer controls as the asset is created or enhanced
3) the group’s performance does not create an asset with an alternative use to the entity and
the entity has an enforceable right to payment for performance completed to date
(1) Revenue policy from sales
The group’s revenue mainly includes income from sale of goods and installation of the whole
set of refrigeration engineering project.Based on the actual situation the group recognizes the revenue as the followings；
1) Domestic sales: the sales contract with customers generally includes the performance of
obligation of transferring goods. The group recognizes the revenue at the time when the
arrival acceptance is completed by customers having taken all followings into consideration:
present debt collection right entitled to the sales of goods the transfer of the main risks and
rewards in the ownership of the goods the transfer of the legal ownership entitled to the
goods the transfer of physical assets the acceptance of goods by customers.
862) Export sales: the group will recognize the sales revenue after completing the customs
declaration and export procedures.Revenue from installation of the whole set of refrigeration engineering project. In the
refrigeration installation contract between the group and the customer since the equipment
sales and installation services cannot be distinguished separately the entire project contract is
regarded as a single performance obligation and the revenue of the single performance
obligation is recognized at the completion of the customer acceptance. when a performance
obligation over time is satisfied revenue shall be recognized within the contract term
according to the performance progress which is determined by the percentage of the
cumulative actual cost to expected total contract cost. When the performance progress can not
be estimated reasonably the group recognizes the revenue to the extent where the already
incurred cost can be compensated until the performance progress can be decided.
(2) Determining and allocating the transaction price
If the contract includes two or more performance obligations at the inception date of contract
the group shall allocate the transaction price to each performance obligation identified in the
contract on a relative standalone selling price ratio basis and measure the revenue at the
allocated transaction price to each performance. If any solid evidence indicates that contract
discount is only relevant to one or some (not all) performance obligations the discount shall
be allocated into the one or these performance obligations.An amount of consideration can vary because of cash discounts price guarantee. The group
determines the best estimate of the variable consideration in line with the expectation or the
amount that most probably incurred but includes in the transaction price the variable
consideration not exceeding the amount that is highly unlikely to result in a material reversal
of cumulative revenue recognized when the relevant uncertainty is eliminated.The group accounts for consideration payable to a customer as a reduction of the transaction
price and therefore of revenue unless the payment to the customer is in exchange for a
distinct good or service. Accordingly the revenue shall be recognized at the later of the
revenue recognition and the consideration paid to a customer.For sales with a right of return the group recognizes the revenue for the consideration
expected to have the right to receive arising from transferring the goods to customers when
the customer receives the control right over the relevant goods and recognizes the expected
refund amount as provision. At the same time receivable of return cost as an asset shall be
recognized for the carrying value of the returned goods when it is expected to be transferred
less expected cost for getting it back (including decline in value) and net amount of the above
asset cost shall be carried over to the cost. At every balance sheet date the group will reassess
the future sales returns and remeasure the above assets and liabilities.
87Where a significant financing component exists in the contract the transaction price shall be
measured at the assumed price that the payment is made by cash when the client receives the
control right of goods or services. The difference between the promised consideration and the
determined transaction price shall be amortized within the contract period using effective
interest rate and it is the discounting rate at which the dominated price of the contract
consideration is discounted to the cash price.According to the agreement or the regulation etc. the group provide warranty for the goods
sold and it is the quality assurance for promising the goods are in commodity with the agreed
standards and shall be accounted for as Note III、22 provision.
24. Government grants
Government grant shall be recognized only when all attached conditions are met and the grant
is possibly received. Where a government grant is in the form of a transfer of monetary asset
it is measured at the amount received. Where a government grant is made on the basis of
fixed amount or conclusive evidence indicates relevant conditions for financial support are
met and expect to probably receive the fund it is measured at the amount receivable. Where a
government grant is in the form of a transfer of non-monetary asset it is measured at fair
value. If fair value cannot be determined reliably it is measured at a nominal amount of
RMB1 Yuan.Assets-related government grant is the government fund obtained by the group for the
purpose of long-term assets purchase and construction or establishment in the other forms.Income-related grants are the grant given by the government apart from the assets-related
grants. If no grant objective indicated clearly in the government documents the group shall
judge it according to the principle mentioned above. If the grant is difficult to be separated it
shall be considered as income-related grant as a whole.Assets-related government grants are recognized as deferred income which shall be evenly
amortized to profit or loss over the useful life of the related asset. Any assets are sold
transferred disposed of or impaired earlier than their useful life expired date the remaining
balance of deferred income which hasn’t been allocated shall be carried forward to the
income statement when the assets are disposed of.Income-related government grants that is a compensation for related expenses or losses to be
incurred in subsequent periods are recognized as deferred income and credited to the relevant
period when the related expenses are incurred. Government grants relating to compensation
for related expenses or losses already incurred are charged directly to the profit or loss for the
period. Government grants related to daily business shall be recognized as other income in
accordance with business nature or offsetting related expenses otherwise shall be recognized
as non-operating income or expenses.
8825. Deferred tax assets and deferred tax liabilities
The deferred income tax assets or the deferred income tax liabilities should be recognized
according to the differences (temporary difference) between the carrying amount of the assets
or liabilities and its tax base and the difference between the carrying amount of tax base item
and its tax base.Deferred tax liability shall be recognized for all taxable temporary difference apart from the
followings : (1) temporary differences arise from the initial recognition of goodwill or the
initial recognition of assets or liabilities arising from non-business combinations that do not
affect accounting profits or taxable income (or deductible losses); (2) The group is able to
control the timing of the reversal of taxable temporary differences related to investments in
subsidiaries associates and joint ventures and such temporary differences are likely not to be
reversed in the foreseeable future.The group recognizes deferred income tax assets for deductible temporary differences
deductible losses and tax deductions that are likely to be obtained to offset future taxable
income except for the following situations: (1) the initial recognition of assets or liabilities
arising from non-business combination transactions where temporary differences do not affect
accounting profits or taxable income (or deductible losses); (2) Deductible temporary
differences related to investments in subsidiaries associates and joint ventures that cannot
simultaneously meet the following conditions: temporary differences are likely to be reversed
in the foreseeable future and taxable income is likely to be obtained in the future to offset
deductible temporary differences.The group recognizes deferred income tax assets for all unused deductible losses to the extent
that there is likely to be sufficient taxable income to offset the deductible losses. The
management uses plenty of judgment to estimate the timing and amount of future taxable
income combined with tax planning strategies to determine the amount of deferred income
tax assets which results in uncertainty.On the balance sheet date deferred income tax assets and deferred income tax liabilities are
measured at the applicable tax rate during the expected period of asset recovery or liability
settlement.When the following conditions are met simultaneously the group shall present the deferred
income tax assets and deferred income tax liabilities at the net amount after offsetting: The
group has the legal right to settle the current income tax assets and deferred income tax
liabilities at the net amount; Deferred income tax assets and deferred income tax liabilities are
related to the income tax levied by the same tax collection and management authority on the
same taxpayer or on different taxpayers. However in the future within the term when each
significant deferred income tax asset and deferred income tax liability to be reversed the
involved taxpayers intend to settle the current income tax assets and liabilities on a net basis
89or acquire assets and settle debts simultaneously.
26. Lease
(1) Lease identification
Lease: A contract or part of a contract that conveys the right to use an asset (the underlying
asset) for a period of time in exchange for consideration.At inception of a contract the group shall assess whether the contract is or contains a lease.A contract is or contains a lease if the contract conveys the right to control the use of an or
many identified assets for a period of time in exchange for consideration.For a contract that is or contains several leases the group shall separate the contract and
account each lease separately. The group shall account for each lease component separately
from non-lease components of the contract if the contract contains lease and non-lease
components. Each leasing part is accounted for according to the leasing standards while the
non-leasing part is accounted for according to other applicable accounting standards. If the
contract includes both leasing and non-leasing parts the group as the lessor will split the
leasing and non-leasing parts and conduct accounting treatment separately. Each leasing part
will be accounted for according to the leasing standards while the non-leasing part will be
accounted for according to other applicable accounting standards. As the lessee the group
chooses not to separate the lease and non-lease and joins each leased part and its non- leased
parts separately into a lease accounting treatment shall be carried out in accordance with
leasing standards; However if the contract includes embedded derivative instruments that
should be split the group will not merge them with the leasing portion for accounting
treatment.
(2) As a leasee
1) Recognition
At the commencement date the group as a lessee shall recognize a right-of-use asset and a
lease obligation except short-term lease and low value asset lease.Right-of-use assets represents a lessee’s right to use an underlying asset for the lease term
and is initially measured at cost.The cost of the right-of-use asset shall comprise:
* the amount of the initial measurement of the lease liability
* any lease payments made at or before the commencement date less any lease incentives
received which is the incremental cost for the lease
* any initial direct costs incurred by the lessee which is the incremental cost
* an estimate of costs to be incurred by the lessee in dismantling and removing the
90underlying asset restoring the site on which it is located or restoring the underlying asset to
the condition required by the terms and conditions of the lease unless those costs are incurred
to produce inventories. Where the group remeasures the lease liability in accordance with the
relevant provisions of the leasing standard the carrying value of right-of-use asset is adjusted
accordingly.The group shall follow the following principles when determining the depreciation life of the
right-of-use asset: if the ownership of the leased asset can be reasonably determined at the
end of the lease term depreciation shall be calculated and deducted during the remaining
service life of the leased asset; Where it is not certain that the ownership of the leased asset
can be acquired at the end of the lease term depreciation shall be calculated at the shorter of
the lease term and the remaining service life of the leased asset. The depreciation amount
shall be accounted into cost of assets or profit and loss account.At the commencement date a lessee shall measure the lease liability at the present value of
the lease payments that are not paid at that date.The lease payments included in the measurement of the lease liability comprise the following
payments for the right to use the underlying asset during the lease term that are not paid at the
commencement date: * fixed payments (including in-substance fixed payments) less any
lease incentives receivable;* variable lease payments that depend on an index or a rate
initially measured using the index or rate as at the commencement date;* the exercise price
of a purchase option if the lessee is reasonably certain to exercise that option * payments of
penalties for terminating the lease if the lessee will certainly exercise an option to terminate
the lease during the lease term.* amounts expected to be payable by the lessee under
residual value guarantees;
When calculating the present value of the lease payments interest rate implicit in the lease
shall be used. If the rate cannot be readily determined the group shall use the lessee’s
incremental borrowing rate. Interest on the lease liability in each period during the lease term
shall be calculated based on a constant periodic rate of interest and be recognized as in profit
or loss unless its capitalization.After the lease commencement date the group increases the carrying amount of lease liability
when recognizing the interest on lease liability and; decreases the carrying amount of lease
liability when making lease payment. The group remeasures the lease liability in accordance
with the present value of revised lease payment when the followings incur: * change of
in-substance fixed payments (subject to original discounting rate) * change of amounts
expected to be payable under residual value guarantees(subject to original discounting rate)
* change of an index or a rate used for future lease payments(subject to revised discounting
rate) * change in assessment of a buy option(subject to revised discounting rate) *
change in assessment of a renew option or termination option or actual situation(subject to
91revised discounting rate).
2) Short-term lease and low value asset lease
The group has chosen not to recognize the right-of-use asset and lease liability for short-term
lease (lease term less than 12 months) and low value asset (30000 Yuan) when it is single
leased new asset. In this case lease payment will be accounted directly in profit or loss or on
the straight-line basis in profit or loss.
3) Sales and lease back
The group as a seller and a lease within the sales and lease back transaction assesses whether
the transfer of the asset is a sale. If the transfer of assets is not a sale the group shall continue
to recognize the transferred assets and at the same time recognize a financial liability equal to
the transfer income (Note VI. 34 lease). If the transfer of assets is a sale the group shall
measure the right-of-use asset arising from the leaseback at the proportion of the previous
carrying amount of the asset that relates to the right of use retained by the group. Accordingly
the group shall recognize only the amount of any gain or loss that relates to the rights
transferred to the buyer-lessor.
(3) As a lessor
The group as a lessor classified it as a finance lease if it transfers substantially all the risks
and rewards incidental to ownership of an underlying asset unless an operating lease.
1) Financing lease
At the commencement date the group shall recognize the lease payment receivable and
derecognize of finance lease asset. When initially measuring the lease payment receivable net
lease investment value shall be used for the lease payment receivable.Net lease investment value equals to the any residual value guarantees plus the PV of undue
lease receivable discounted at the interest rate implicit in the lease. The group shall recognize
interest income over the lease term based on a constant periodic rate. The variable lease
payment obtained by the group related to operating leases which are not included in the net
lease investment shall be accounted for in the current profit and loss when actually incurred
2) Operating lease
Lease payment received shall be recognized as lease income on a straight-line basis within the
period.The initial direct expenses incurred by the group in relation to operating leases are capitalized
to the cost of leasing the underlying asset and are recognized in profit or loss by instalments
over the lease period on the same basis as rental income. Variable lease payments made by the
group in relation to operating leases that are not included in lease collections are recognized
92in profit or loss for the period when they are actually incurred.
The group shall account for a modification to an operating lease as a new lease from the
effective date of the modification considering any received in advance or lease payments
receivable relating to the original lease as part of the lease payments receivable for the new
lease
27. Fair value measurement
The group measures investment property derivative financial instruments and equity
instruments at fair value at each balance sheet date. Fair value refers to the price that market
participants can receive by selling an asset or can pay for transferring a liability in an orderly
transaction that takes place on the measurement date.Assets and liabilities measured or disclosed at fair value in the financial statements are
determined to belong to the different fair value level based on the lowest level of input values
that are significant to the fair value measurement as a whole: level 1 input is the unadjusted
quoted price for identical asset or liability available at the active market on the measurement
date; level 2 input is the directly or indirectly observable input for relevant asset or liability
apart from level 1 input; level 3 input is the unobservable input for relevant asset or liability.
(For levels 1 and 2) For financial instruments traded in an active market the group determines
their fair value by their active market quotes; For financial instruments that are not traded in
an active market the group uses valuation techniques to determine their fair value and the
valuation model used is mainly the discounted cash flow model. The input of valuation
techniques mainly includes: risk-free interest rate of debt credit premium and liquidity
premium; estimator coefficient. and liquidity discount of equity.
(For level 3) The fair value of level 3 is determined on the basis of the group's valuation
models such as the discounted cash flow model. The group also considers the initial
transaction price recent transactions of the same or similar financial instruments or full
third-party transactions of comparable financial instruments. As at 31 December 2024 level 3
financial assets measured at fair value are valued by using significant unobserved inputs such
as discount rates but their fair value is not materially sensitive to reasonable changes in these
significant unobserved inputs.The group uses the market approach to determine the fair value of unlisted equity investments.This requires the group to determine comparable listed companies select market coefficient
estimate liquidity discounts etc. and is therefore subject to uncertainty.
28. Changes in Accounting Policies Accounting Estimates
(1) Change in significant accounting policies
In November 2023 the Ministry of Finance issued Interpretation of Accounting Standards for
93Business Enterprises No. 17 (Finance and Accounting [2023] No. 21) (hereinafter referred to
as "Interpretation No. 17") which includes "I. Division of current liabilities and non-current
liabilities; Disclosure of supplier financing arrangements; Accounting for sales and leaseback
transactions " and comes into effect from January 1 2024. The implementation of the
relevant provisions of Interpretation No. 17 has no effect on the financial statements of the
Group during the reporting period.In December 2024 the Ministry of Finance issued Interpretation of Accounting Standards for
Business Enterprises No. 18 (Finance and Accounting (2024) No. 24) (hereinafter referred to
as "Interpretation No. 18") which came into effect as of the date of issuance. "I. Subsequent
measurement of investment premises held as an infrastructure project under the floating fee
method"; "II. Accounting for quality assurance in the category of assurance that is not part of
a single performance obligation". The implementation of the relevant provisions of
Interpretation No. 18 has no impact on the financial statements of the Group during the
reporting period.
(2) Changes in significant accounting estimates
No.IV. Taxation
1. The main applicable tax and rate to the Company as follows:
Tax Tax base Tax rate
Value-added tax (VAT) Revenue of sales goods or services 5%、6%、9%、13%、
City construction tax Actual VAT paid 5%、7%
Education surcharge Actual VAT paid 3%
Local education surcharge Actual VAT paid 2%
Enterprise income tax (EIT) Current period taxable profit 15% or 25%
70% of cost of own property or
Real estate tax 1.2% or 12%
revenue from leasing property
Land use tax Land using right area Fixed amount per square meter
According to the relevant
Other tax
provisions of the state and local
Notes for tax entities with different EIT rate
Tax entities EIT rate
Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd 15%
Dalian Bingshan Group Engineering Co. Ltd. 25%
Dalian Bingshan Group Sales Co. Ltd. 25%
Dalian Bingshan Air-conditioning Equipment Co. Ltd. 15%
94Dalian Bingshan Guardian Automation Co. Ltd. 15%
Dalian Bingshan-RYOSETSU Quick Freezing Equipment Co. Ltd. 25%
Wuhan New World Refrigeration Industrial Co. Ltd. 15%
Dalian Bingshan Engineering & Trading Co. Ltd 25%
Dalian Universe Thermal Technology Co.Ltd. 15%
Chengdu Bingshan Refrigeration Engineering Co. Ltd. 25%
Wuhan New World Air-conditioning Refrigeration Engineering Co. Ltd 25%
Wuhan Lanning Energy Technology Co. Ltd 25%
Sonyo Compressor (Dalian)Co.Ltd. 15%
Sonyo Refrigeration System (Dalian) Co. Ltd. 15%
Sonyo Refrigeration (Dalian) Co. Ltd. 15%
95IV. Taxation
1. The main applicable tax and rate to the Company as follows:
Tax Tax base Tax rate
Value-added tax (VAT) Revenue of sales goods or services 5%、6%、9%、13%、
City construction tax Actual VAT paid 5%、7%
Education surcharge Actual VAT paid 3%
Local education surcharge Actual VAT paid 2%
Enterprise income tax (EIT) Current period taxable profit 15% or 25%
70% of cost of own property or
Real estate tax 1.2% or 12%
revenue from leasing property
Land use tax Land using right area Fixed amount per square meter
According to the relevant
Other tax
provisions of the state and local
Notes for tax entities with different EIT rate
Tax entities EIT rate
Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd 15%
Dalian Bingshan Group Engineering Co. Ltd. 25%
Dalian Bingshan Group Sales Co. Ltd. 25%
Dalian Bingshan Air-conditioning Equipment Co. Ltd. 15%
Dalian Bingshan Guardian Automation Co. Ltd. 15%
Dalian Bingshan-RYOSETSU Quick Freezing Equipment Co. Ltd. 25%
Wuhan New World Refrigeration Industrial Co. Ltd. 15%
Dalian Bingshan Engineering & Trading Co. Ltd 25%
Dalian Universe Thermal Technology Co.Ltd. 15%
Chengdu Bingshan Refrigeration Engineering Co. Ltd. 25%
Wuhan New World Air-conditioning Refrigeration Engineering Co. Ltd 25%
Wuhan Lanning Energy Technology Co. Ltd 25%
Sonyo Compressor (Dalian)Co.Ltd. 15%
Sonyo Refrigeration System (Dalian) Co. Ltd. 15%
Sonyo Refrigeration (Dalian) Co. Ltd. 15%
962. Tax preference
(1) The Company obtained the qualification of high and new technology enterprises in
December 2023. The Certificate No. is GR202321201041. According to the tax bureau
approval the Company can be granted for the preferential tax policy of enterprise income tax
rate of 15% from FY2023 to FY2025.The Company’s subsidiary Dalian Bingshan Air-conditioning Equipment Co. Ltd. obtained the
qualification of high and new technology enterprises in December 2023. The Certificate No. is
GR202321201161. According to the tax bureau approval the Company can be granted for the
preferential tax policy of enterprise income tax rate of 15% from FY2023 to FY2025.The Company’s subsidiary Dalian Bingshan Guardian Automation Co. Ltd. obtained the
qualification of high and new technology enterprises in December 2024 The Certificate No. is
GR202421200978. According to the tax bureau approval the Company can be granted for the
preferential tax policy of enterprise income tax rate of 15% from FY2024 to FY2026.The Company’s subsidiary Wuhan New World Refrigeration Industrial Co. Ltd obtained the
qualification of high and new technology enterprises in November 2024. The Certificate No. is
GR202442000336. According to the tax bureau approval the Company can be granted for the
preferential tax policy of enterprise income tax rate of 15% from FY2024 to FY2026.The Company’s subsidiary Dalian Universe Thermal Technology Co.Ltd. obtained the
qualification of high and new technology enterprises in December 2023. The Certificate No. is
GR202321200114. According to the tax bureau approval the Company can be granted for the
preferential tax policy of enterprise income tax rate of 15% from FY2023 to FY2025.The Company’s subsidiary Sonyo Compressor (Dalian)Co.Ltd.(hereinafter referred to as
“Sonyo Compressor” obtained the qualification of high and new technology enterprises in
December 2024. The Certificate No. is GR202421200617. According to the tax bureau
approval the Company can be granted for the preferential tax policy of enterprise income tax
rate of 15% from FY2024 to FY2026.The Company’s subsidiary Sonyo Refrigeration System (Dalian) Co. Ltd.(hereinafter referred
to as “Sonyo Refrigeration System” obtained the qualification of high and new technology
enterprises in December 2023. The Certificate No. is GR202321201152. According to the tax
bureau approval the Company can be granted for the preferential tax policy of enterprise
income tax rate of 15% from FY2023 to FY2025.The Company’s subsidiary Sonyo Refrigeration (Dalian) Co. Ltd.(hereinafter referred to as
“Sonyo Refrigeration” obtained the qualification of high and new technology enterprises in
December 2024. The Certificate No. is GR202421200850. According to the tax bureau
approval the Company can be granted for the preferential tax policy of enterprise income tax
rate of 15% from FY2024 to FY2026.
(2) According to the Announcement of the Ministry of Finance and Tax Administration on the
accelerate VAT Deduction for advanced manufacturing enterprise (Announcement No. 43 2023)
within the period from January 1st 2023 to December 31st2027 the advance enterprises are
97allowed for input VAT deduction at 5% acceleration rate during the current period. The
Company and its subsidiaries Dalian Bingshan Air-conditioning Equipment Dalian Bingshan
Guardian Automation Wuhan New World Refrigeration Dalian Universe Thermal Sonyo
Compressor Sonyo Refrigeration and Sonyo Refrigeration System enjoy the tax preference.V. Notes to Consolidated Financial Statements
The following disclosure date on this financial statement without special indication “opening”
refers to January 1 2024; “closing” refers to December 31 2024; “current period” refers to the
period from January 1 2024 to December 31 2024; and “last period” refers to the period from
January 1 2023 to December 31 2023; with the currency unit RMB.
1. Monetary fund
Item Closing Balance Opening Balance
Cash on hand 28585.88 70750.93
Cash in bank 1011911100.49 863950616.72
Other cash and cash equivalents 30204058.30 87018202.46
Total 1042143744.67 951039570.11
Including: sum of deposits overseas
Note1: within the bank deposits 50406111.11 Yuan was time deposits and interest income;
frozen fund of 6512838.08 Yuan guarantee deposit for migrant worker of 251006.12
Yuan and restricted fund for migrant worker salary of 3190047.46 Yuan.Note2: Other monetary funds are bank acceptance deposit 15278927.28 Yuan deposit for
letter of guarantee is 14925131.02 Yuan.
2. Notes receivable
(1) Category of notes receivable
Items Closing Balance Opening Balance
Bank acceptance notes 331617161.92 335914443.51
Trade acceptance notes 21237701.56 17514478.91
Total 352854863.48 353428922.42
(2) Categories according to bad debts provision method
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debts 354276459.03 1 00.00 1421595.55 0.40 352854863.48
98provision based on
group
Including: bank
331617161.9293.60--331617161.92
acceptance notes
Trade acceptance
22659297.116.401421595.556.2721237701.56
notes
Total 354276459.03 1 00.00 1421595.55 0.40 352854863.48
(Continued)
Opening balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debts
provision based on 354313722.61 100.00 884800.19 0.25 353428922.42
group
Including: bank
335914443.5194.81--335914443.51
acceptance notes
Trade acceptance
18399279.105.19884800.194.8117514478.91
notes
Total 354313722.61 100.00 884800.19 0.25 353428922.42
99Categories based on group
Closing Balance
Items
Booking balance Provision Provision（%）
Bank acceptance notes 331617161.92 - -
Trade acceptance notes 22659297.11 1421595.55 6.27
Total 354276459.03 1421595.55 —
(3) Bad debt provision of notes receivable accrued collected and reversed
Change during the year
Opening
Category Collected/ Closing Balance
balance Accrued Written-off
reversed
Bad debt
884800.19626722.1189926.75-1421595.55
provision
Total 884800.19 626722.11 89926.75 - 1421595.55
(4) Pledged notes receivable up to the end of year.
Items Closing pledged amount
Bank acceptance notes 8555115.03
Total 8555115.03
(5) Notes receivable endorsed or discounted but not mature at the end of year
Item Closing amount Closing amount still
derecognized recognized
Bank acceptance notes 144157056.07
Trade acceptance notes 1681364.49
Total 145838420.56
(6) Notes receivable written off: none
3. Accounts receivable
(1) Aging of accounts receivable
Account Age Closing Balance Opening Balance
Within 1 year（incl 1 year） 995252568.14 1075007175.23
1-2 years 360274915.33 406082608.66
2-3 years 231407610.78 207201791.50
Over 3 years 484919878.50 453345639.16
100Of which: 3-4years 113036063.46 140135046.24
4-5years 125797609.62 48619109.18
Over 5 years 246086205.42 264591483.74
Total 2071854972.75 2141637214.55
(2) Category of accounts receivable based on bad debt provision method
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
13071940.810.6310264390.3578.522807550.46
on individual basis
Bad debt provision
2058783031.9499.37569356233.5027.651489426798.44
on group
Including: aging as
characteristics of 2058783031.94 99.37 569356233.50 27.65 1489426798.44
credit risk
Total 2071854972.75 100.00 579620623.85 27.98 1492234348.90
(Continued)
Opening balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
14372020.850.6711564470.3980.472807550.46
on individual basis
Bad debt provision
2127265193.7099.33553638820.0026.031573626373.70
on group
Including: aging as
characteristics of 2127265193.70 99.33 553638820.00 26.03 1573626373.70
credit risk
Total 2141637214.55 100.00 565203290.39 26.39 1576433924.16
1011) Bad debt provisions on individual basis
Opening balance Closing Balance
Name Accounts Provision for Accounts Provision for Proportion Reason
receivable bad debts receivable bad debts (%)
Full
Company recovery
6496000.005244096.206496000.005244096.2080.73
1 is not
expected
Other Recovery
company 7876020.85 6320374.19 6575940.81 5020294.15 76.34 is not
1 expected
Total 14372020.85 11564470.39 13071940.81 10264390.35 —
2) Bad debt provisions on group basis
Closing Balance
Aging Accounts Provision for Drawing proportion
receivable bad debts (%)
Within 1 year 995252568.14 56084512.67 5.64
1 to 2 years 360274915.33 59855315.02 16.61
2 to 3 years 229848838.06 70601786.26 30.72
3 to 4 years 107977806.57 52580990.59 48.70
4 to 5years 124882698.42 89687423.54 71.82
Over 5 years 240546205.42 240546205.42 100.00
Total 2058783031.94 569356233.50 —
(1) Bad debt provision of current period
Change during the year
Opening Closing
Category Collected/
balance Accrued Written-off Others Balance
reversed
Bad debt
565203290.3937834982.0022044663.664992404.373619419.49579620623.85
provision
Total 565203290.39 37834982.00 22044663.66 4992404.37 3619419.49 579620623.85
102(4) Accounts receivable written off in current period
Item Written off amount
Receivable actually written off 4992404.37
(5) Top 5 receivables and contract assets
The sum of top 5 of receivables and contract assets is 262076417.63Yuan represents 11.46%
of closing balance of receivables and contract assets and bad debt provision of
61059997.71Yuan shall be made.
4. Contract asset
(1) contract asset
Closing Balance
Items
Booking balance Provision Carrying amount
Undue warranty 198615784.30 21724512.68 176891271.62
Unsettled receivable of revenue
16623886.648754217.947869668.70
recognized over time
Total 215239670.94 30478730.62 184760940.32
(continued)
Opening balance
Items
Booking balance Provision Carrying amount
Undue warranty 265440261.85 37369046.20 228071215.65
Unsettled receivable of revenue
18840435.979834772.919005663.06
recognized over time
Total 284280697.82 47203819.11 237076878.71
(2) Significant change of the account
Items Amount Reason
Undue warranty -66824477.55 Change of consolidation scope
Unsettled receivable of revenue
-2216549.33 Settled during the year
recognized over time
Total -69041026.88
103(3) Category of contract asset based on bad debt provision method
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
1709948.800.791709948.80100.00-
on individual basis
Bad debt provision
213529722.1499.2128768781.8213.47184760940.32
on group
Including: aging as
characteristics of 213529722.14 99.21 28768781.82 13.47 184760940.32
credit risk
Total 215239670.94 100.00 30478730.62 14.16 184760940.32
(continued)
Opening Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
1709948.800.601709948.80100.00-
on individual basis
Bad debt provision
282570749.0299.4045493870.3116.10237076878.71
on group
Including: aging as
characteristics of 282570749.02 99.40 45493870.31 16.10 237076878.71
credit risk
Total 284280697.82 100.00 47203819.11 16.60 237076878.71
1) Bad debt provisions on individual basis
Opening balance Closing Balance
Name Accounts Provision for Accounts Provision for Proportion Reason
receivable bad debts receivable bad debts (%)
Recovery is not
Other companie2 1709948.80 1709948.80 1709948.80 1709948.80 100.00
expected
Total 1709948.80 1709948.80 1709948.80 1709948.80 —
1042) Bad debt provisions on group basis
Closing Balance
Aging Accounts Provision for Drawing proportion
receivable bad debts (%)
Within 1 year 130206254.23 8187690.23 6.29
1 to 2 years 59666466.96 9087331.73 15.23
2 to 3 years 13388704.45 4091459.94 30.56
3 to 4 years 3289473.18 1613907.81 49.06
4 to 5years 4274438.84 3084007.63 72.15
Over 5 years 2704384.48 2704384.48 100.00
Total 213529722.14 28768781.82 ——
(4) Bad debt provision of current period
Change during the year
Opening Closing
Category Collected/
balance Accrued Written-off Others Balance
reversed
Undue warranty 37369046.20 - 15936503.20 - - 2 1432543.00
Unsettled
receivable of
revenue 9834772.91 - 788585.29 - - 9046187.62
recognized over
time
Total 47203819.11 - 16725088.49 - - 3 0478730.62
(5) Contract asset actually written off
None
5. Finance receivable
(1) Category of finance receivable
Items Closing Balance Opening Balance
Bank acceptance notes 382073283.27 303585218.53
Total 382073283.27 303585218.53
(2) Category of accounts receivable based on bad debt provision method
Closing Balance
Items
Booking balance Provision Booking value
105Amount % Amount %
Bad debt provision
382073283.27100.00--382073283.27
on group
Including: bank
382073283.27100.00--382073283.27
acceptance notes
Total 382073283.27 100.00 - - 3 82073283.27
(Continued)
Opening balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
303585218.53100.00--303585218.53
on group
Including: aging as
characteristics of 303585218.53 100.00 - - 303585218.53
credit risk
Total 303585218.53 100.00 - - 303585218.53
(3) Pledged notes receivable up to the end of year.
Items Closing pledged amount
Bank acceptance notes 129115879.46
Total 129115879.46
6. Other receivables
Items Closing Balance Opening Balance
Dividend receivable 11150.00 14495.00
Other receivables 45748416.06 41381728.27
Total 45759566.06 41396223.27
6.1. Dividends receivable
(1) Classification
Company Closing Balance Opening Balance
Wuhan Steel and Electricity Co. Ltd. 11150.00 14495.00
Total 11150.00 14495.00
6.2. Other receivables
(1) The categories of other receivable according to nature
Items Closing Balance Opening Balance
106Receivables and payables 31791903.41 33092423.14
Security deposit 30974881.78 30103093.46
Petty cash 3488045.56 3669152.52
Others 17138048.40 11397105.01
Total 83392879.15 78261774.13
(2) Aging of other receivable
Account Age Closing Balance Opening Balance
Within 1 year（incl 1 year） 33984236.78 23517039.35
1-2 years 2933743.71 8134653.15
2-3 years 4459628.80 9354562.84
Over 3 years 42015269.86 37255518.79
Of which: 3-4years 6493865.77 24151505.82
4-5years 23958940.09 6300480.70
Over 5 years 11562464.00 6803532.27
Total 83392879.15 78261774.13
(3) Category of other receivable based on bad debt provision method
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
24816580.9429.7624816580.94100.00-
on individual basis
Bad debt provision
58576298.2170.2412827882.1521.9045748416.06
on group
Including: aging as
characteristics of 58576298.21 70.24 12827882.15 21.90 45748416.06
credit risk
Total 83392879.15 100.00 37644463.09 45.14 45748416.06
107(Continued)
Opening balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
24935080.9431.8624935080.94100.00-
on individual basis
Bad debt provision
53326693.1968.1411944964.9222.4041381728.27
on group
Including: aging as
characteristics of 53326693.19 68.14 11944964.92 22.40 41381728.27
credit risk
Total 78261774.13 100.00 36880045.86 47.12 41381728.27
1) Bad debt provisions on individual basis
Opening balance Closing Balance
Name Accounts Provision for bad Accounts Provision for bad Proportion Reason
receivable debts receivable debts (%)
Transfer of debt Recovery is not
20132963.7920132963.7920132963.7920132963.79100.00
receivables expected
Dalian Shengda
Recovery is not
Construction 3878617.15 3878617.15 3878617.15 3878617.15 100.00
expected
Engineering Co. Ltd
QINGDAO FREE
TRADE PORT
ZONE
applied for enforcement
INTERNATIONAL
500000.00 500000.00 500000.00 500000.00 100.00 and is not expected to be
COLD CHAIN
recovered in full
LOGISTICS
TRADE CENTER
CO.LTD.Mudanjiang Preserved in litigation
Zhongnongpi Cold and not expected to be
300000.00300000.00300000.00300000.00100.00
Chain Logistics Co. recovered
Ltd
Wuhan Xinlian
Technology
118500.00118500.00---
Development Co.Ltd
108Recovery is not
Chen xiujuan 2000.00 2000.00 2000.00 2000.00 100.00
expected
Recovery is not
Chen yanhao 1600.00 1600.00 1600.00 1600.00 100.00
expected
Recovery is not
Zheng Jinlian 1400.00 1400.00 1400.00 1400.00 100.00
expected
Total 24935080.94 24935080.94 24816580.94 24816580.94 —
2) Bad debt provisions on group basis
Closing Balance
Aging Accounts Provision for Drawing proportion
receivable bad debts (%)
Within 1 year 33984236.78 1232619.56 3.63
1 to 2 years 2933743.71 157057.23 5.35
2 to 3 years 4459628.80 667033.45 14.96
3 to 4 years 5666505.77 2046836.21 36.12
4 to 5years 2439947.50 1499593.16 61.46
Over 5 years 9092235.65 7224742.54 79.46
Total 58576298.21 12827882.15 —
3) The bad debt provision of other receivables
1st stage 2nd stage 3rd stage Total
Expected credit
Bad debt Expected credit Expected credit loss
loss within the
provision loss within 12 within the whole period
whole period (no
months (impairment incurred)
impairment)
Opening
2343658.22-34536387.6436880045.86
balance
Opening
balance during — — — —
the year
--transfer to the
2nd stage
--transfer to the
-10980.00-10980.00-
3rd stage
--reverse to the
----
2nd stage
----reverse to - - - -
109the 1st stage
Accrued 421712.21 - 2537193.32 2958905.53
Reverse 776184.56 - 1299803.74 2075988.30
Cancelation - - - -
Written off - - 118500.00 118500.00
Other
----
movement
Closing
1978205.87-35666257.2237644463.09
balance
(4) Provision for bad debt
Change during the year
Opening Closing
Category Accrued Collected/
balance Written-off Others Balance
reversed
Bad debt
36880045.862958905.532075988.30118500.00-37644463.09
provision
Total 36880045.86 2958905.53 2075988.30 118500.00 - 3 7644463.09
(5) Other receivables written off in current period: none.
Item Amount to be written off
Other receivables written off actually 118500.00
110(6) Other receivables from the top 5 debtors based on closing balance
Closing
Closing % of
Name Category Aging Balance of
Balance total
Provision
State tax office Tax refund 7783496.66 Within 1 year 9.33 284875.98
Wuhan Xinlian
Technology Rental 3284533.27 Within 1 year 3.94 120213.92
Development Co. Ltd
Moyu County 4-5years
Deposit 2548847.50 3.06 2348040.21
Agricultural Bureau Over 5 years
Hangzhou Zhonghong
New Energy Deposit 2476894.20 3-4years 2.97 1297644.87
Technology Co. Ltd
Chengdu BOE
Optoelectronics Deposit 2000000.00 Within 1 year 2.40 73200.00
Technology Co. Ltd
Total 18093771.63 - 21.70 4123974.98
7. Prepayments
(1) Aging of prepayments
Closing Balance Opening Balance
Items Amount Percentage Amount Percentage
(%)(%)
Within 1 year 140193253.25 85.46 133068644.50 86.75
1 to 2 years 15625104.20 9.53 12010696.67 7.83
2 to 3 years 3927719.36 2.39 2578747.06 1.68
Over 3 years 4296563.25 2.62 5730572.25 3.74
Total 164042640.06 100.00 153388660.48 100.00
(2) Prepayments from the top 5 debtors based on closing balance
The sum of top 5 of prepayment is 79026004.94Yuan represents 48.17% of closing
balance of prepayment.
8. Inventories
(1) Categories of inventories
Closing Balance
Item
Book value Provision for decline Net book value
Cost to fulfill the contract 544464520.45 12895734.89 531568785.56
Finished goods 453823794.09 41658999.95 412164794.14
Raw materials 264329161.20 33708343.75 230620817.45
111Working in progress 172761094.92 19583788.41 153177306.51
Self-manufactured
52174151.33-52174151.33
semi-finished products
Goods on transit 11060053.54 - 11060053.54
Materials on consignment
2674187.81-2674187.81
for further processing
Low-value consumable 213692.47 - 213692.47
Total 1501500655.81 107846867.00 1393653788.81
(Continued)
Opening Balance
Item
Book value Provision for decline Net book value
Cost to fulfill the contract 657703661.17 15425401.03 642278260.14
Finished goods 524399789.91 47832216.91 476567573.00
Raw materials 282868685.78 31011520.30 251857165.48
Working in progress 211744888.60 10130805.54 201614083.06
Self-manufactured
35347357.53-35347357.53
semi-finished products
Materials on consignment
21317653.8660394.1821257259.68
for further processing
Goods on transit 8313813.04 821759.89 7492053.15
Properties written off debtors 2708646.00 1149186.00 1559460.00
Low-value consumable 166267.10 - 166267.10
Total 1744570762.99 106431283.85 1638139479.14
112(2) Provision for decline in the value of inventories and contract fulfillment costs
Increase Decrease
Item Opening Balance Reverse/ Closing Balance
Accrual Others transferred Others transferred
Written- off
Raw materials 31011520.30 4481212.92 1784389.47 33708343.75
WIP 10130805.54 10084266.95 631284.08 19583788.41
Finished goods 47832216.91 14429151.40 20602368.36 41658999.95
Cost to fulfill the contract 15425401.03 219548.10 2749214.24 12895734.89
Materials on consignment
60394.18-60394.18--
for further processing
Goods on transit 821759.89 - 821759.89 -
Properties written off
1149186.00-1149186.00-
debtors
Total 106431283.85 29153785.19 27738202.04 107846867.00
113Accrual for provision for decline in the value of inventories
Basis for net realizable value Reasons for
Item
recognition reverse/write-off
Raw materials The amount deducting the expected Sold
WIP cost to product completion selling Sold
Finished goods expense and relative tax from the Sold
Cost to fulfill the contract estimated selling price. Sold
9. Non-current asset due within one year
Item Closing Balance Opening Balance
Long term receivable due within 1 year 57550.43 -
Total 57550.43 -
10. Other current assets
Item Closing Balance Opening Balance
Input VAT to be deducted 23990929.71 18112002.39
Prepaid income tax 2123365.65 3216096.82
Contract acquisition cost 1267914.24 4532291.00
Prepaid VAT 139723.58 198895.83
Prepaid expenses 114445.28 15056.29
Total 27636378.46 26074342.33
11. Long term receivable
(1) Details
Item Closing Balance Discounted
rate
Carrying
Provision Book value
amount
Lease premium 150589.20 10571.36 140017.84
---Unrealized financing income -22010.37 - - 22010.37
Total 150589.20 10571.36 140017.84
114(2) Category of long-term receivable based on bad debt provision method
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
150589.2010010571.367.02140017.84
on group
Including: bank
150589.2010010571.367.02140017.84
acceptance notes
Total 150589.20 100 10571.36 7.02 140017.84
1) The bad debt provision based on group of long-term receivables
Closing Balance
Aging Accounts Provision for Drawing proportion
receivable bad debts (%)
Within 1 year 150589.20 10571.36 7.02
Total 150589.20 10571.36 ——
1152) The bad debt provision under expected credit loss model
1st stage 2nd stage 3rd stage
Bad debt Expected credit Expected credit loss Expected credit loss
Total
provision loss within 12 within the whole period within the whole period
months (no impairment) (impairment incurred)
Opening
----
balance
Opening
balance during — — — —
the year
--transfer to the
----
2nd stage
--transfer to the
----
3rd stage
--reverse to the
----
2nd stage
----reverse to
----
the 1st stage
Accrued 10571.36 - - 10571.36
Reverse - - - -
Cancelation - - - -
Written off - - - -
Other
----
movement
Closing balance 10571.36 - - 10571.36
(3) Bad debt provision of long-term receivable for the year
Change during the year
Opening Closing
Category Accrued Collected/
balance Written-off Others Balance
reversed
Bad debt
-10571.36---10571.36
provision
Total - 10571.36 - - - 10571.36
11612.Long-term equity investments
Increase/Decrease
Gains and
Provision
losses Adjustment of Cash bonus
Beginning for Provision for
Investee
balance recognized other Change of or profits impairment
Ending balance
Increased Decreased Others impairment
under the comprehensive other equity announced to of the
current
equity income issue
period
method
Associates
Dalian Honjo
9892253.52 - - 356820.48 10249074.00 - Chemical Co. Ltd
Keihin-Grand Ocean
Thermal Technology 57579975.00 - - -4257688.27 53322286.73 -
(Dalian)Co.Ltd.
Dalian Fuji
Bingshan Vending 67610418.09 - - -514319.31 67096098.78 -
Machine Co. Ltd.MHI Bingshan
Refrigeration 16543655.54 - - 202819.43 16746474.97 -
(Dalian) Co.Ltd.
Dalian Fuji
Bingshan Vending
-----
Machine Sales Co.Ltd
Jiangsu Jingxue
Insulation
144354903.91 - - 4400840.64 3220344.00 145535400.55 - Technology Co.Ltd
(N4)
Dalian Bingshan
Metal Technology 173250850.13 - 34931610.00 28344672.03 30759188.94 135904723.22 -
Co.Ltd.
117Dalian Bingshan
Group Huahuida
46050456.55 - 1218624.64 636409.95 46632671.24 Financial Leasing -
Co. Ltd
Wuhan Sikafu
Power Control 5992434.76 - 494251.11 6486685.87 -
Equipment Co. Ltd
Total 521274947.50 - 34931610.00 30246020.75 34615942.89 481973415.36 -
11813.Other non-current financial assets
Item Closing Balance Opening Balance
Financial assets classified as FVTPL 1683852.59 164024771.63
Including: equity instruments 1683852.59 164024771.63
Total 1683852.59 164024771.63
14. Investment property
(1) Investment property measured as cost model
Property&
Item Land-use-rights Total
building
I. Initial cost
1. opening balance 246173617.85 26094438.38 272268056.23
2. addition 4838025.49 - 4838025.49
(1) FA\transferred from CIP 4838025.49 - 4838025.49
3. decrease 4749095.10 - 4749095.10
(1) disposal 2708646.00 - 2708646.00
(2) others 2040449.10 - 2040449.10
4. closing balance 246262548.24 26094438.38 272356986.62
II. Accumulated depreciation — — —
1. opening balance 135327893.16 13350481.57 148678374.73
2. addition 6315185.06 521888.76 6837073.82
(1) accrued/amortization 5663731.15 521888.76 6185619.91
(2) FA\transferred from CIP 651453.91 - 651453.91
3. decrease 1090182.17 - 1090182.17
(1) disposal 8743.66 8743.66
(2) others 1081438.51 1081438.51
4. closing balance 140552896.05 13872370.33 154425266.38
III. Impairment reserve — — —
1. opening balance - - -
2. addition - - -
3. decrease - - -
4. closing balance - - -
IV. Book value — — —
1. Closing book value 105709652.19 12222068.05 117931720.24
2. Opening book value 110845724.69 12743956.81 123589681.50
119(2) Investment property without ownership certificate
Item Book value Reason
Because the land use right and the plant’s ownership
belong to different person the deed of the plant was
Plant
11756581.06 not obtained. In 2023 the land use right is obtained
the certificate of the plant ownership is in progress
The documents are not ready in full the certificate of
Rihang Apartment 918201.57
the building ownership can not be obtained
15. Fixed assets
Items Closing Book Value Opening Book Value
Fixed asset 1211794069.63 1291851402.46
Fixed asset disposal - -
Total 1211794069.63 1291851402.46
(1) Fixed assets detail
Property& Machinery Transportation Other
Item equipment Total
buildings equipment equipment
I. Initial cost
1.Opening
984762292.941860863124.5126414272.96248448105.423120487795.83
balance
2. Increase 12183574.51 56432801.76 1566348.74 18736019.07 88918744.08
(1) Purchase - 5903608.99 1264136.35 2824527.38 9992272.72
(2) Transferred
from
10143125.4150529192.77302212.3915911491.6976886022.26
construction-in-
progress
(3) financial lease - - - - -
(4) investment 2040449.10 - - - 2040449.10
3. Decrease 4608045.19 152361604.74 4524956.89 26296697.90 187791304.72
(1) Disposal 2478665.70 152361604.74 4524956.89 26296697.90 185661925.23
(2) transferred to
investment 2129379.49 - - - 2129379.49
property
4.Closing balance 992337822.26 1764934321.53 23455664.81 240887426.59 3021615235.19
II. Accumulated
depreciation
1.Opening
343048484.831281264893.7718926836.54169991538.161813231753.30
balance
1202. Increase 30542895.37 91310418.67 1541494.28 14020350.18 137415158.50
(1) Accrued 29461456.86 91310418.67 1541494.28 14020350.18 136333719.99
(2) Investment 1081438.51 - - - 1081438.51
3. Decrease 1497964.76 125312442.36 3554272.85 21350238.08 151714918.05
(1) Disposal 846510.85 125312442.36 3554272.85 21350238.08 151063464.14
(2) transferred to
651453.91---651453.91
investment
4.Closing balance 372093415.44 1247262870.08 16914057.97 162661650.26 1798931993.75
III. Impairment
reserve
1.Opening
1125906.8710009682.05286519.263982531.8915404640.07
balance
2. Increase
3. Decrease - 3173153.83 - 1342314.43 4515468.26
(1) Disposal - 3173153.83 - 1342314.43 4515468.26
4.Closing balance 1125906.87 6836528.22 286519.26 2640217.46 10889171.81
IV.Book value
1.Closing book
619118499.95510834923.236255087.5875585558.871211794069.63
value
2.Opening book
640587901.24569588548.697200917.1674474035.371291851402.46
value
121(2)Fixed assets without ownership certificate
Item Book value Reason
Self-constructed buildings of Sonyo Compressor and
Self -constructed
Sonyo Refrigeration without the land use right the
buildings 29824686.02
certificate of the plant ownership can not be obtained.The documents are not ready in full the certificate of the
Rihang Apartment 918201.63
building ownership can not be obtained.
16. Construction-in-progress
Item Closing book value Opening book value
Construction-in-progress 86221660.80 114801351.21
Construction materials - -
Total 86221660.80 114801351.21
(1) Construction-in-progress details
Closing balance Opening balance
Item
Book balance Provision Book Value Book balance Provision Book value
Buildings &
29766943.79-29766943.79
reconstruction 26282803.78 - 26282803.78
Improvement of
69390477.8115064649.3854325828.43
machinery 83833793.88 - 83833793.88
Software of
intelligent 2128888.58 - 2128888.58 4684753.55 - 4684753.55
manufacture
Total 101286310.18 15064649.38 86221660.80 114801351.21 - 114801351.21
122(2) Change in the significant construction in progress
Decrease
Opening Transfer to Closing
Name Increase Other
balance FA/ Intangible balance
decrease
assets
Improvement of
59648413.5211465158.3020731436.25-50382135.57
machinery
Buildings &
24020836.005588447.112784054.04-26825229.07
reconstruction
Total 83669249.52 17053605.41 23515490.29 - 77207364.64
(Continued)
Including: Interest
Percent of Progress
Accumulated accumulated capitaliza
investment of Source
Name Budget capitalized capitalized tion
against constructi of funds
interest interest of the Rate
budget (%) on
year (%)
Improvement Self-
of machinery 66438917.61 81.77 81.77 -
financing
Buildings & Self-
reconstruction 31404649.19 94.79 94.79 - financing
Total 97843566.80 — — — — —
(3) Impairment provision
Opening Closing
Item Increase Decrease Reason
balance balance
Buildings &
reconstruction - 15064649.38 - 15064649.38 Suspended
Total - 15064649.38 - 15064649.38 —
12317. Right-of-use assets
Property/ Transportation Electronic
Item Machinery Land use right Software Total
buildings equipment equipment
I. Initial cost
1.Opening balance 22301098.69 1500407.13 - 996991.93 15403548.97 40202046.72
2. Increase 1268280.29 - 172876.63 - - 350368.74 1791525.66
(1) lease in 1268280.29 - 172876.63 - - 350368.74 1791525.66
3. Decrease 6624187.74 - - 194322.66 2543304.56 - 9361814.96
(1) Disposal 6624187.74 - - 194322.66 2543304.56 - 9361814.96
4.Closing balance 16945191.24 1500407.13 172876.63 802669.27 12860244.41 350368.74 32631757.42
II. Accumulated
amortization
1.Opening balance 5090415.92 637746.67 - 162220.54 3763606.51 - 9653989.64
2. Increase 3949530.98 333057.15 89895.91 206013.70 1066142.53 43796.06 5688436.33
(1) Accrued 333057.15 89895.91 206013.70 1066142.53 43796.06 5688436.33 3949530.98
3. Decrease 3291773.87 - - 194322.58 2543304.56 - 6029401.01
(1) Disposal 3291773.87 - - 194322.58 2543304.56 - 6029401.01
4.Closing balance 5748173.03 970803.82 89895.91 173911.66 2286444.48 43796.06 9313024.96
III. Impairment reserve — — — — — - —
1. Opening balance - - - - - - -
2. Increase - - - - - - -
3. Decrease - - - - - - -
4.Closing balance - - - - - - -
124IV. Book value — — — — — - —
1. Closing book value 11197018.21 529603.31 82980.72 628757.61 10573799.93 306572.68 23318732.46
2. Opening book value 17210682.77 862660.46 - 834771.39 11639942.46 - 30548057.08
12518. Intangible assets
Non-
Item Land use right Patent Others Total Patent
I. Initial cost
1.Opening balance 240905737.40 17630188.82 5773680.00 74249345.48 338558951.70
2. Increase - - - 8427931.79 8427931.79
(1) Purchase - - - 6858843.13 6858843.13
(2) Transferred from
---1569088.661569088.66
construction-in-progress
(3) increase via merge
3. Decrease - - - 2013910.38 2013910.38
(1) Disposal - - - 2013910.38 2013910.38
4.Closing balance 240905737.40 17630188.82 5773680.00 80663366.89 344972973.11
II. Accumulated
amortization
1.Opening balance 71901377.46 10470188.25 4773708.00 40847535.60 127992809.31
2. Increase 5987097.94 1429516.20 500004.00 7043398.68 14960016.82
(1) Accrued 5987097.94 1429516.20 500004.00 7043398.68 14960016.82
3. Decrease - - - 1990910.38 1990910.38
(1) Disposal - - - 1990910.38 1990910.38
4.Closing balance 77888475.40 11899704.45 5273712.00 45900023.90 140961915.75
III. Impairment
provision
1. Opening balance - - - 11981.17 11981.17
2. Increase - - - - -
(1) Accrued - - - - -
3. Decrease - - - - -
(1) Disposal - - - - -
4.Closing balance - - - 11981.17 11981.17
IV. Book value
1. Closing book value 163017262.00 5730484.37 499968.00 34751361.82 203999076.19
2. Opening book value 169004359.94 7160000.57 999972.00 33389828.71 210554161.22
19. Goodwill
(1) Original cost of goodwill
126Opening
Name Increased Decreased Closing Balance
Balance
Sonyo Compressor (Dalian)Co.Ltd 240922872.80 - - 240922872.80
-
Sonyo Refrigeration (Dalian) Co. Ltd. 38056663.52 - 38056663.52
Sonyo Refrigeration System (Dalian) -
Co. Ltd. 5671836.12 - 5671836.12
Dalian Universe Thermal Technology -
Co.Ltd. 1440347.92 - 1440347.92
Dalian Bingshan Group Engineering -
Co. Ltd 310451.57 - 310451.57
Total - 286402171.93 - 286402171.93
(2) Goodwill impairment provision
In the year 2015 the book value of equity investment of Dalian Universe Thermal Technology Co.Ltd exceeds the
fair value of the proportion of the acquired company’s identifiable net asset. The difference between the book value of
equity investment of 48 287589.78 Yuan and the identifiable net asset’s fair value of Dalian Sanyo High-efficient
Refrigeration System Co. Ltd of 46847241.86 Yuan on the acquisition date of July 31st 2015 is recognized as
goodwill of 1440347.92 Yuan on The Company consolidated financial report at the end of the year.In the year 2016 Dalian Bingshan Group Engineering Co. Ltd purchases shares of Dalian Bingshan Baoan Leisure
Industry Co. Ltd and gains control. The transferred price is based on the net asset of Dalian BingshanBaoan Leisure
Industry Co. Ltd on June 30th 2016. Negotiated with Dalian Bingshan Baoan Leisure Industry Co. Ltd’s shareholder
Baoan Water Project (China) Limited Company the transfer price is the combination cost on the purchasing date which
is 5359548.42 Yuan the fair value of proportion of Dalian BingshanBaoan Leisure Industry Company’s identifiable net
asset is 5049096.85 Yuan on the purchasing day therefore goodwill is 310451.57Yuan on the purchasing date. Dalian
Bingshan Group Engineering Co. Ltd absorbed Dalian Bingshan Baoan Leisure Industry Co. Ltd in 2019.In 2022 the Company purchased 60% of the shareholdings of Sonyo Compressor (Dalian)Co.Ltd from Sanyo
Electric (China)Co.Ltd and negotiated with Sanyo Electric (China)Co.Ltd to determine the share transfer
consideration of 929148000.00 Yuan. After the transaction Sonyo Compressor (Dalian)Co.Ltd became a subsidiary.This transaction is a business combination not under same control cost of combination is the FV of previous
shareholdings on acquisition date plus 60% shareholdings acquisition consideration which is 1548580000Yuan in
total. Goodwill of 240922872.80 Yuan is recognized for the difference between the share of FV of net identifiable asset
of acquiree 1307657127.20Yuan and cost of combination on acquisition date.In 2022 the Company purchased 30% of the shareholdings of Sonyo Refrigeration System (Dalian) Co. Ltd. from
Panasonic Corporation of china Co. LTD and 25% shareholdings of Sonyo Refrigeration System (Dalian) Co. Ltd from
Panasonic Appliances cold Chain (Dalian)Co.Ltd. The negotiated share transfer consideration of 81735060.00 Yuan.After the transaction Sonyo Compressor (Dalian)Co.Ltd became a subsidiary. This transaction is a business
combination not under same control cost of combination is the FV of previous shareholdings on acquisition date plus
55% shareholdings acquisition consideration which is 111456900.00Yuan in total. Goodwill of 5671836.12 Yuan is
recognized for the difference between the share of FV of net identifiable asset of acquire 105785063.87Yuan and cost
127of combination on acquisition date.
In 2023 the Company purchased 40% of the shareholdings of Sonyo Refrigeration (Dalian) Co. Ltd. from
Panasonic Corporation of China Co. LTD and 60% shareholdings of Sonyo Refrigeration (Dalian) Co. Ltd from Sanyo
Electric (China)Co.Ltd. This transaction is a business combination not under same control cost of combination is the
consideration of 145285500.00 Yuan for share transfer. Goodwill of 38056663.52Yuan is recognized for the
difference between the share of FV of net identifiable asset of acquire. 107228836.48Yuan and cost of combination on
acquisition date.The book value of goodwill from business combination shall be allocated into the relevant asset group using the
reasonable method since acquisition date and be tested for impairment on related asset groups containing goodwill by
professional appraisal companies or use evaluation models to predict the recoverable amount of related asset groups
containing goodwill in accordance with the present value of future cash flows including gross profit rate sales growth
rate (4.04%-5.21%) discount rate(10.12%-11.33%) and other parameters in the next 5 years. No goodwill impairment
has been found when the recoverable amount of asset group for testing is higher than its book value.
12820. Long-term unamortized expense
Opening Other Closing
Item Increase Amortization
Balance Decrease balance
Greenland of new factory 3048061.06 - 892115.52 - 2155945.54
Employee’s dormitory use
1458257.10-138478.35-1319778.75
right
Membership fee for golf 374000.00 - 16500.00 - 357500.00
Renovation and rebuilding 142091.33 2140100.03 547708.41 - 1734482.95
Amortization of instruments 315236.61 34159.28 237916.44 - 111479.45
Software maintenance 8675.50 43362.83 11621.76 - 40416.57
Total 5346321.60 2217622.14 1844340.48 - 5719603.26
21. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets without offsetting
Item Closing balance Opening balance
Deductible Deferred tax Deductible Deferred tax assets
temporary difference assets temporary difference
Provision for
435919173.3875919841.22
credit impairment 445951688.75 81048834.24
Provision for
impairment of 134581459.34 2 0319705.43 153519850.70 23185410.37
assets
FA depreciation 54071935.80 8110790.37 48341817.47 7251272.60
Accrued sales
16775734.142516360.12
discount 17125319.07 2568797.86
Unrealized profit
13034503.471955175.52
from intra-group 13034503.47 1955175.52
Unrealized
12912057.503228014.38
revenue 11170890.18 2792722.55
Government
12244929.321836739.40
grant
Lease liability 9109228.24 1470613.49 52799814.74 8006670.79
Deductible loss 7223987.87 1083598.18
Provision 2301229.56 378294.47 4544802.83 714830.47
Safety cost 449375.00 67406.25
Others 1460577.94 219086.69 1138175.07 170726.26
Total 699634816.56 117038219.27 748076237.28 127761846.91
129(2) Deferred tax liabilities without offsetting
Item Closing balance Opening balance
Taxable Deferred tax Taxable Deferred tax
temporary liabilities temporary liabilities
difference difference
Revaluation increase in
business combination
216909045.4732536356.82
asst not under same 253978835.91 38096825.39
control
Change on FV of other
non-current financial - - 151430911.13 22714636.67
assets
FA depreciation 40073339.62 6011000.94 44655750.06 6698362.51
Use right of asset 8262320.31 1339915.36 48864566.94 7414624.88
Total 265244705.40 39887273.12 498930064.04 74924449.45
(3) Net deferred tax asset or liability
Offset
Offset amount at Closing balance of amount at the Opening balance of
Item
the year-end net of DTA/DTL beginning of net of DTA/DTL
the year
Deferred tax
13285391.56103752827.7114112987.38113648859.53
assets
Deferred tax
13285391.5626601881.5614112987.3860811462.07
liabilities
(4) Unrecognized deferred tax assets details
Item Closing balance Opening balance
Deductible temporary difference 77793766.46 227656543.59
Deductible loss 518523346.16 553968553.34
Total 596317112.62 781625096.93
130(5) Unrecognized deductible loss of deferred tax assets expired years
Year Closing balance Opening balance Notes
2024-7735166.14-
20259324721.568950922.50-
202654629003.3754629003.37-
202765263403.9067364986.52-
202855941615.5755969301.70-
202937412135.4039791411.14-
20308559346.097689545.97-
203199102467.44126221649.87-
203220100936.1544819905.64-
2033117623814.71140796660.49-
203450565901.97--
Total 518523346.16 553968553.34 -
22. Other non-current asset
Closing Balance Opening balance
Category Carrying Carrying
Book value Provision Book value Provision
amount amount
Debt
offset 21770721.00 1609486.12 20161234.88 21770721.00 1527371.56 20243349.44
housing
Total 21770721.00 1609486.12 20161234.88 21770721.00 1527371.56 20243349.44
13123. Assets with restricted ownership or use rights
Item At the year end
Book value Carrying amount Type Restriction
Guarantee
Monetary fund 40157949.96 40157949.96 Frozen deposit/ frozen
bank account
Notes receivable 8555115.03 8555115.03 Pledged Pledged
Financing of receivable 129115879.46 129115879.46 Pledged Pledged
FA 89706820.32 58150963.78 Mortgage Mortgage
Intangible asset 8266573.44 5120297.71 Mortgage Mortgage
Investment property 38955728.90 31214402.83 Mortgage Mortgage
Total 314758067.11 272314608.77
(continued)
Item At the beginning of the year
Book value Carrying amount Type Restriction
Guarantee
Monetary fund 110277531.37 110277531.37 Frozen deposit/ frozen
bank account
Notes receivable 4939655.20 4939655.20 Pledged Pledged
Financing of receivable 99078000.87 99078000.87 Pledged Pledged
FA 89720897.99 60540912.88 Mortgage Mortgage
Intangible asset 8266573.44 5421865.27 Mortgage Mortgage
Investment property 38955728.90 32097825.31 Mortgage Mortgage
Total 351238387.77 312355790.90
13224. Short-term borrowing
(1) Category of short-term borrowing
Loan category Closing balance Opening balance
Credit loan 149334095.56 256686746.70
Factoring loan 15271202.33 2976345.47
Mortgage loan 2000000.00 2624692.21
Pledged loan 678109.37 -
Total 167283407.26 262287784.38
25. Notes payable
Notes Category Closing balance Opening balance
Bank acceptance notes 569117426.19 670720999.48
Total 569117426.19 670720999.48
26. Accounts payable
Item Closing balance Opening balance
Material payments 860628492.89 931983444.51
Project payments 696387654.58 675076736.92
Equipment payments 38362719.82 43234911.60
Others 6002923.51 5540269.98
Total 1601381790.80 1655835363.01
27. Other accounts payable
Item Closing balance Opening balance
Dividend payable 533156.00 533156.00
Other accounts payable 226828051.96 278270996.17
Total 227361207.96 278804152.17
27.1 Dividend payable
Item Closing balance Opening balance
Ordinary share dividend 533156.00 533156.00
Total 533156.00 533156.00
13327.2 Other accounts payable
(1) Other payables categorized by payments nature
Payments nature Closing balance Opening balance
Supplier platform 138427047.31 179737197.47
Cash pledge and security deposit 17352388.67 14448796.02
Apply for reimbursement and
unpaid 17093300.41
24617613.80
Payable 13486275.11 22407941.90
Agency fees 6811472.88 5317884.69
Repair 3173010.34 4676404.47
Trade mark and royalty 2403064.87 2531401.13
Others 28081492.37 24533756.69
Total 226828051.96 278270996.17
28. Contract liability
(1) Contract liability
Item Closing balance Opening balance
Received in advance due from unrealized revenue 645711808.53 787685294.53
Total 645711808.53 787685294.53
29. Employee’s payable
(1) Category of employee’s payable
Opening
Item Increase Decrease Closing balance
balance
Short-term employee’s
149352510.11675208893.85678023805.11146537598.85
payable
Post-employment benefit
–defined contribution 11203.35 73583788.19 73397894.37 197097.17
plan
Termination benefits 133400.00 6774379.53 6907779.53 -
Total 149497113.46 755567061.57 758329479.01 146734696.02
134(2) Short-term employee’s payables
Opening
Item Increase Decrease Closing balance
balance
Salaries bonus
136231457.30532862205.86534488750.79134604912.37
allowance and subsidy
Welfare - 30904645.77 30904645.77 -
Social insurance 6925.69 46424681.15 46309727.64 121879.20
Include: Medical
6654.1137078780.2836986878.1898556.21
insurance
Supplemental
-40806.5840806.58-
insurance
On-duty injury
271.584853413.974840989.3912696.16
insurance
Maternity insurance - 4451680.32 4441053.49 10626.83
Housing funds 178155.98 50495763.15 50591746.13 82173.00
Labor union and training
4008680.4010910703.8011299956.603619427.60
expenses
Reward bonus and welfare
8927290.74-818084.068109206.68
fund
Others - 3610894.12 3610894.12 -
Total 149352510.11 675208893.85 678023805.11 146537598.85
(3) Defined contribution plan
Opening Closing
Item Increase Decrease
balance balance
Pension 10863.84 71341405.46 71161150.30 191119.00
Unemployment insurance 339.51 2242382.73 2236744.07 5978.17
Total 11203.35 73583788.19 73397894.37 197097.17
30. Tax payable
Item Closing balance Opening balance
Enterprise income tax 15275100.75 10958503.00
Value-added tax 8385659.83 5013411.92
Real estate tax 2658712.33 2589711.66
Land use tax 1313359.14 1313078.49
City maintenance and construction tax 833824.30 551839.60
Stamp duty 711220.14 879269.28
Education surcharge 595588.79 514426.82
135Individual income tax 501446.30 394171.13
River toll fee 1669.18 2080.36
Total 30276580.76 22216492.26
31. Non-current liabilities due within one year
Item Closing balance Opening balance
Long-term borrowings due within one year 139783355.56 119400000.00
Long-term payable due within one year 15006026.71 24636926.13
Lease obligation due within one year 6631690.45 6608421.51
Total 161421072.72 150645347.64
32. Other current liabilities
Item Closing balance Opening balance
Notes payable endorsed not derecognized 145160311.19 148957983.15
Output Vat to be carried forward 45849215.48 54357881.28
Total 191009526.67 203315864.43
33. Long-term borrowing
(1) Category of long-term borrowing
Category Closing Balance Opening Balance
Pledged loan 501031874.58 609700000.00
Mortgage loan 6300000.00 -
Guarantee loan 40014666.67 70000000.00
Total 547346541.25 679700000.00
Note 1: Pledged loan of 0.6 billion Yuan is for business combination in 2022 which comprises
0.3 billion Yuan from Dalian Zhoushuizi Branch of China Construction Bank Corporation 5years with 2.75%
borrowing rate. 50% shareholdings of Sonyo Compressor (Dalian)Co.Ltd and 37.5% shareholdings of Sonyo
Refrigeration System (Dalian) Co. Ltd. were pledged. China Construction Bank Corporation will complete the
guarantee in February 2023. 0.3 billion Yuan from Dalian Branch of Bank of Communications Co.Ltd. 7 years
with 2.75% borrowing rate. 50% shareholdings of Sonyo Compressor (Dalian)Co.Ltd and 37.5% shareholdings of
Sonyo Refrigeration System (Dalian) Co. Ltd. were pledged. Dalian Branch of Bank of Communications Co.Ltd
will complete the guarantee in February 2023. In 2025 50 million Yuan loan is planned to pay back to
Construction bank and 46 million Yuan loan to Communications bank.Note 2: Pledged loan includes a new loan of 87 million Yuan in 2023 for acquisition of Sonyo Refrigeration
(Dalian) Co. Ltd. held by Panasonic Corporation of China Co. LTD and Sanyo Electric (China)Co.Ltd. The loan
is expired by 7 years with 2.75% borrowing rate. Up to December 31 2024 the closing balance is 74million Yuan
and will be repaid 13 million Yuan in 2025.Note 3: In year 2016 the Development Fund from China Development Bank gave support to the Company’s
136intelligent and green equipment of cold chain and service industry base project and provided special fund to the
Company’s holding shareholder Bingshan Group. The fund is160 million Yuan with 10year’s expiration at 1.2%
rate. Once the fund arrived Bingshan Group gave it to the Company at the same rate of 1.2% in lump sum. The
above fund needed to be warranted by the Company. The guarantee seems to be given for the holding shareholder
but it is for the Company itself in fact. Up to December 31 2024 the closing balance is 70 million Yuan and will
be repaid 30 million Yuan in 2025.
34. Lease obligation
(1) Details of lease obligation
Category Closing balance Opening balance
Lease payment 44764698.58 38276477.18
Less: unrecognized finance expense 19061162.35 7533068.70
Non-current liability due within 1 year 6631690.45 6608421.51
Net lease liability 19071845.78 24134986.97
35. Long term accounts payable
Item Closing Balance Opening Balance
Long term accounts payable 12451396.59 10331937.30
Total 12451396.59 10331937.30
13735.1Category by nature
Nature Closing Balance Opening Balance
Financial lease borrowings 12451396.59 10331937.30
Total 12451396.59 10331937.30
36. Provision
Nature Closing Balance Opening Balance Reason
Warranty 2301229.53 4544802.88 —
Others 402140.00 - —
Total 2703369.53 4544802.88 —
37. Deferred income
(1) Category of deferred income
Item Opening Balance Increase Decrease Closing Balance
Government subsidy 98274267.80 684168.00 8224955.51 90733480.29
Total 98274267.80 684168.00 8224955.51 90733480.29
138(1) Government subsidy
To non- The value offset cost Related with asset/
Government subsidy item Opening Balance Increase To other income Others Closing Balance
operating income and expense this year income
Application of NH3 and CO2 instead of R22 screw refrigerating
18573486.16 - - 1928452.02 - - 16645034.14 Asset Related
machine combined condensing unit
Compressor IC system 2800820.83 - - 368769.72 - - 2432051.11 Asset related
Ultrasonic intelligent defrost technology 2449028.62 - - 384824.40 - - 2064204.22 Asset related
R290 replacement of R22 large industrial screw unit 16258329.00 - - 1223666.04 - - 15034662.96 Asset related
R290 replacement of R22 industrial double stage screw unit 5934600.00 - - 621393.00 - - 5313207.00 Asset related
Ultrasonic defrost sample project 142500.00 - - 30000.00 - - 112500.00 Asset related
Contribution to subsidiary company relocation 36762000.00 - - 1114000.00 - - 35648000.00 Asset related
Asset
Eco Compressor project 14867771.19 - - 2553850.33 - - 12313920.86
/ Income related
Asset
Meat storage technology and equipment 485732.00 684168.00 - - - - 1169900.00
/ Income related
Total 98274267.80 684168.00 - 8224955.51 90733480.29 —
13938.Share capital
Increase/decrease（+/-）
Transfer
Item Opening balance New share Share from Closing balance
Others Subtotal
issued dividend capital
reserve
Total share capital 843212507.00 - - - - - 843212507.00
39.Capital reserves
Opening
Items Increase Decrease Closing Balance
Balance
Share premium 669193413.27 - - 669193413.27
Other capital reserves 47903685.11 - - 47903685.11
Total 717097098.38 - - 717097098.38
14040.Other comprehensive income
Current year
Opening
Items
Balance Amount for the Less：Previously recognized in Less： After-tax After-tax attribute
Closing Balance
period before profit or loss into other income attribute to the to minority
income tax comprehensive income tax parent company shareholder
I.Later can’t reclassified into
profit and loss of other - - - - - - -
comprehensive income
II. Later reclassified into profit
and loss of other comprehensive 2208669.73 - - - - - 2208669.73
income
Other comprehensive income that
can be transferred to profit or loss 2208669.73 - - - - - 2208669.73
under the equity method
Other comprehensive income
total 2208669.73 - - - - - 2208669.73
14141. Special reserve
Item Opening Balance Increase Decrease Closing Balance
Manufacturing
449374.969641589.1110090964.07-
safety
Total 449374.96 9641589.11 1 0090964.07 -
42.Surplus reserves
Item Opening Closing
Increase Decrease
Balance Balance
Statutory surplus reserve 373398755.92 7606012.47 381004768.39
Discretionary surplus reserve 493760683.42 20853061.88 514613745.30
Total 867159439.34 28459074.35 895618513.69
Note: The Company made profit distribution during the reporting period. According to the resolution of the
2023 annual General meeting of shareholders the discretionary surplus reserve of RMB20853061.88 will be
appropriated based on 20% of the net profit of the statutory financial report for FY2023; Statutory surplus reserve
of 7606012.47 Yuan shall be appropriated based on 10% of the net profit of the parent company this year.
43.Undistributed profits
Item Current year Last year
Closing balance of last year 617386488.34 618445922.58
Add: Adjustments to the opening balance of
--65810.05
undistributed profits
Including: additional retrospective adjustments
--65810.05
according to the new accounting standards
Opening balance of current year 617386488.34 618380112.53
Add: net profit attributable to shareholders of
110335139.0649375900.83
parent company in the year
Less: Provision for statutory surplus reserves 7606012.47 10426530.94
Provision for discretionary surplus reserves 20853061.88 31510869.01
Dividends payable for common shares 25296375.21 8432125.07
Closing balance of current year 673966177.84 617386488.34
14244.Operating revenue and cost
(1) Details
Items Current year Last year
Sales revenue Cost of sales Sales revenue Cost of sales
Revenue from principle operation 4435315179.34 3715591847.99 4708789817.06 3931870621.80
Revenue from other operation 95832029.64 48216368.20 107151650.64 73726836.39
Total 4531147208.98 3763808216.19 4815941467.70 4005597458.19
(2) Main revenue and COS details
Contract classification Northeast China Central China Total
Sales revenue Cost of sales Sales revenue Cost of sales Sales revenue Cost of sales
Classified by products 4377863106.52 3648054729.45 1 5 3 284102.46 115753486.74 4531147208.98 3763808216.19
Manufacture products 3205706578.00 2567700529.27 117286263.50 91479352.86 3322992841.50 2659179882.13
Project installation 1090071347.44 1039457365.52 19657337.89 16151351.23 1109728685.33 1055608716.75
Other products and service 82085181.08 40896834.66 16340501.07 8122782.65 98425682.15 49019617.31
Classified by geography location 4377863106.52 3648054729.45 1 53284102.46 115753486.74 4531147208.98 3763808216.19
domestic 3761872931.25 3170994675.32 153284102.46 115753486.74 3915157033.71 3286748162.06
overseas 615990175.27 477060054.13 - - 615990175.27 477060054.13
Timing of goods transferred 4377863106.52 3648054729.45 1 53284102.46 115753486.74 4531147208.98 3763808216.19
At a point 4324319033.35 3 598191853.05 153284102.46 115753486.74 4477603135.81 3713945339.79
Over the time 53544073.17 49862876.40 - - 53544073.17 49862876.40
Total 4377863106.52 3 648054729.45 1 5 3284102.46 115753486.74 4531147208.98 3763808216.19
14345.Taxes and surcharges
Items Current year Last year
Property tax 10687349.62 10073731.86
City construction tax 9022845.50 9012910.60
Education surcharge 6471029.87 6439924.63
Land use tax 5427544.54 5015774.62
Stamp duty 2988502.65 3354441.63
Vehicle and vessel tax 48080.08 48250.80
Others 18497.60 23642.94
Total 34663849.86 33968677.08
46.Selling expenses
Items Current year Last year
Employee benefit 152109707.56 141519344.86
Business travel expense 24263543.79 25719851.30
Official business expense 24204767.58 25483586.78
Business entertaining expense 16792673.00 15227636.78
Maintenance and repair expense 13375783.32 17803113.38
Advertisement and bids expense 4689987.05 4936902.38
Depreciation expense 2411651.93 2257182.91
Other expense 2862415.72 914408.09
Total 240710529.95 233862026.48
47. Administrative expenses
Items Current year Last year
Employee benefit 160039888.99 127272720.89
Official expense 29418682.12 28493919.83
Depreciation expense 21417108.80 25264201.98
Long-term assets amortization 14348155.12 11646085.10
Design consultant and test service expense 13245807.87 8075373.29
Maintenance and repair expense 11254680.61 16475833.99
Patent trade mark use 10685467.52 9372566.10
Business travel expense 7654226.60 6514713.45
Other taxes and fee 3924000.03 3686510.53
Safety production cost 3880395.28 3062462.68
Business entertaining expense 3557038.72 2738569.12
Insurance expense 2645035.92 1435356.69
144Advertisement expense 583431.31 814999.22
Other expense 2710495.81 5714932.63
Total 285364414.70 250568245.50
48.Technology development expense
Items Current year Last year
Employee benefit 91123015.98 102598481.06
Raw material 33426263.16 20934040.54
Depreciation and amortization expense 17272044.93 14685194.95
Other expense 13704991.50 25968001.16
Total 155526315.57 164185717.71
49.Financial expenses
Items Current year Last year
Interest expenses 33022192.73 37918133.57
Less: interest income 9280290.94 10558433.14
Add: exchange loss -3407833.33 -299066.17
Add: others expenditure 2667787.47 3097443.21
Total 23001855.93 30158077.47
50.Other income
Items Current year Last year
Government subsidy 18269439.71 12002208.32
Input VAT accelerated deduction 15785855.84 17504090.47
Insurance premium refund 2137900.00 367800.00
Job stability subsidy 1221189.00 111468.81
Personal income tax handling fee refund 403935.18 180238.52
VAT deduction for recruiting poor people - 12350.00
Gain on debt restructuring - 1512.39
Total 37818319.73 30179668.51
14551.Gain on fair value change
Source of gain on FV change Current year Last year
Other non-current financial assets 27205532.40 14073910.32
Total 27205532.40 14073910.32
52.Investment income
Items Current year Last year
Long-term equity investment gain under
30246020.75-4884731.99
equity method
Gain from holding of other non-current
5411654.405796799.24
financial assets
Gain from disposal of other non-current
33277105.94-
financial assets
Gain on debt restructuring 2154769.80 1790089.90
Discounting fees for bank acceptance note -737835.68 -1595528.43
Total 70351715.21 1106628.72
53.Credit impairment loss (loss listed as “-”)
Items Current year Last year
Bad debt loss on receivable -15790318.34 -68147779.35
Bad debt loss on other receivable -882917.23 -1885950.98
Bad debt loss on notes receivable -536795.36 91074.58
Bad debt loss on long term receivable -10571.36 210600.00
Total -17220602.29 -69732055.75
54.Assets impairment losses (loss listed as “-”)
Items Current year Last year
Loss on impairment of inventory and cost to
-29153785.19-17646037.59
fulfill the contract obligation
Loss of contract asset impairment 16725088.49 4767716.49
Impairment on other non-current asset -82114.56 -1527371.56
Impairment on construction in progress -15064649.38 -
Total -27575460.64 -14405692.66
14655.Gain on assets disposal (loss listed as “-”)
Item Current year Last year
Gain on non-current assets disposal 5010221.27 -1184930.14
Including: gain on non-current assets
5010221.27-1184930.14
disposal not classified as held for sale
Including: gain on fixed assets disposal 5185071.48 -689706.84
gain on intangible assets disposal - -433100.00
gain on early derecognition of use
-174850.21-62123.30
right asset
Total 5010221.27 -1184930.14
56. Non-operating income
（1） Non-operating income list
Amounts recognized into
Item Current year Last year non-recurring profit or
loss for the year
Payable written-off 6083744.04 1895792.78 6083744.04
Penalty received 3117992.73 2021941.14 3117992.73
Loss claimed reverse 1186292.67 10206786.86 1186292.67
Gain on donation 128800.00 - 128800.00
Gain on disposal of
41493.0539884.1441493.05
non-current asset
Other items 923931.55 369517.17 923931.55
Total 11482254.04 14533922.09 11482254.04
57.Non-operating expenses
Amounts recognized into
Item Current year Last year non-recurring profit or
loss for the year
Non-current assets scrap loss 5809971.12 5511195.40 5809971.12
Compensation 2322513.96 952429.15 2322513.96
Expected loss on pending litigation 241996.39 - 241996.39
Outward donation 60000.00 360000.00 60000.00
Others 1066222.01 142852.98 1066222.01
Total 9500703.48 6966477.53 9500703.48
14758. Income tax expenses
(1) Income tax expenses
Items Current year Last year
Current income tax expenses 36274871.93 25126696.59
Deferred income tax expenses -24313548.68 -14094997.51
Total 11961323.25 11031699.08
(2) Adjustment process of accounting profit and income tax expense
Items Current year
Consolidated total profit this year 125643303.02
Income tax expenses at applicable tax rate 18846495.45
Effect on subsidiary applied to different tax rate 3738359.93
Effect on prior period income tax adjustment 3220667.98
Effect on non-taxable income -5210951.26
Effect on non-deductible cost expense and loss 2146835.15
Effect on use of deductible loss from unrecognized deferred tax assets in
-8839865.32
the prior period
Deferred tax assets recognized for prior period temporary difference -1959289.59
Effect on temporary difference or deductible loss from unrecognized
19449340.23
deferred tax assets this year
R&D expenditure accelerated deduction -19430269.32
Income tax expense 11961323.25
14859. Notes to cash flow statement
(1) Cash relevant to operating activities
1) Cash received relevant to operating activities
Items Current year Last year
Deposit returned 41482792.46 56211426.27
Lease premium received 25014316.79 34669117.40
Government grants 12106148.33 15077248.10
Interest income 11356266.86 8914720.67
Receivable from the 3rd party 6651943.84 3001285.07
Compensation 2246739.02 2497389.05
Received travel expense refund 2155963.19 1834601.94
Frozen money refund 20924320.43 550487.90
Others 3048070.46 4072381.79
Total 124986561.38 126828658.19
2) Cash paid relevant to operating activities
Items Current year Last year
Expenditure 173808996.79 202530612.54
Deposit paid 37902779.65 50899935.96
Business travel borrowing 7894695.20 8978717.58
Frozen accounts 6236821.19 21363555.30
Bank handling charges 2901472.22 3533466.20
Unsettled AR/AP among non-related party 3439560.21 181386.21
Others 2841796.69 2935250.16
Total 235026121.95 290422923.95
(2) Cash relevant to investing activities
1) Significant cash received relevant to investing activities
Items Current year Last year
Cash dividend 40030942.29 44342521.09
Investment recoup 45841618.00 -
Gain on disposal of equity investment 212428461.60 -
Total 298301021.89 44342521.09
2) Cash received relevant to investing activities
Items Current year Last year
149Fixed-term deposit -principle 268000000.00 -
Total 268000000.00 -
3) Significant cash paid relevant to investing activities
Items Current year Last year
Purchase of long-term asset 78719169.31 89321945.50
Fixed-term deposit -principle 150000000.00 -
Total 228719169.31 89321945.50
4) Other cash paid relevant to investing activities
Items Current year Last year
Fixed-term deposit 150000000.00 168000000.00
Total 150000000.00 168000000.00
(3) Cash relevant to financing activities
1) Other cash received relevant to financing activities
Items Current year Last year
Notes payable to supplier 9964739.15 55956005.87
Sale leaseback and financial lease 2000000.00 6600000.00
Notes discounted 1598937.32 3119926.93
Others 11480935.05
Total 25044611.52 65675932.80
2) Others cash paid relevant to financing activities
Items Current year Last year
Payment of guarantee money 20338159.55 39502750.62
Notes payable to supplier 47750000.00 13629318.00
Sale& leaseback and financial lease 18074898.60 10891978.68
Lease premium payable 3879173.06 6585497.64
Others 660706.34 80863.54
Total 90702937.55 70690408.48
15060. Supplementary information of consolidated cash flow statement
(1) Information
Items Current year Last year
1. Adjusting net profit into cash flows of operating —— ——
activities:
Net profit 113681979.77 54174539.75
Add: Provision for impairment of assets 27575460.64 14405692.66
Provision for impairment of credit 17220602.29 69732055.75
Depreciation of fixed assets Amortization of
142519339.90135625135.60
mineral resources and biological assets
Depreciation of right-of-use assets 5688436.33 11340839.21
Amortization of intangible assets 14960016.82 13570693.11
Amortization of long-term deferred expenses 1844340.48 1545642.28
Losses on disposal of fixed assets intangible assets
-5010221.271184930.14and long-term assets (income listed with”-”)
Losses on scrap of fixed assets (income listed
5768478.075471311.26with”-”)
Change of fair value profit or loss -27205532.40 -14073910.32Financial expense (income listed with”-”) 33022192.73 37918133.57Investment loss (income listed with”-”) -70351715.21 -1106628.72
Decrease of deferred tax assets (increase listed
9896031.82-21471717.58with”-”)
Increase of deferred tax liabilities (decrease listed
-34209580.51864530.06with”-”)Decrease of inventories (increase listed with”-”) 243070107.18 -257408322.60
Decrease of operating receivables (increase listed
45124178.28-500972621.69with”-”)
Increase of operating payables (decrease listed
-286439840.48424759029.78with”-”)
Others - -
Net cash flows arising from operating activities 237154274.44 -24440667.74
2. Significant investment and financing activities
—
unrelated to cash income and expenses
Liabilities transferred to capital -
Convertible bonds within 1 year -
Financing leased fixed assets -
3. Net increase (decrease) of cash and cash —
151equivalent
Closing balance of cash 951579683.60 670440335.98
Less: Opening balance of cash 670440335.98 921661803.17
Add: Closing balance of cash equivalent -
Less: Opening balance of cash equivalent -
Net increase of cash and cash equivalent 281139347.62 -251221467.19
(2) Cash and cash equivalents
Items Current year Last year
Cash 951579683.60 670440335.98
Including: Cash on hand 28585.88 70750.93
Bank deposit used for paying at any moment 951551097.72 670303450.55
Other monetary fund for paying at any moment 66134.50
Deposit fund in central bank available for payment -
Cash equivalent -
Including: bonds investment with maturity in 3 months -
Closing balance of cash and cash equivalents 951579683.60 670440335.98
(3) Monetary fund not belonging to cash and cash equivalent
Items Current year Last year Reasons
Fixed term deposit 50000000.00 168000000.00 Held to maturity
Guarantee money for bank
15278927.28 44200486.65 Guarantee money
acceptance note
Guarantee money for guarantee
14925131.02 41547977.10 Guarantee money
letter
Frozen 6512838.08 21578536.32 Frozen
Interest receivable 406111.11 2321702.76 Held to maturity
Rural workers’ salary account
3190047.46 1731234.30 Special account
restriction
Rural workers guarantee fund 251006.12 1219297.00 Guarantee money
Total 90564061.07 280599234.13 —
61. Change of shareholder’s equity
None
62. Monetary category of foreign currency
(1) Monetary category of foreign currency
Closing Balance Exchange
Item Closing Balance (RMB)
(foreign currency) Rate
152Cash
Including：USD 1654811.64 7.1884 11895447.99
JPY 410505789.00 0.046233 18978914.14
Euro 17077.82 7.5257 128522.55
Accounts receivable — —
Including: USD 7240050.99 7.1884 52044382.54
JPY 172489988.00 0.046233 7974729.62
Euro 650363.00 7.5257 4894436.83
GBP 140443.58 9.0765 1274736.15
Accounts payable
Including: USD 344524.99 7.1884 2476583.44
JPY 71058586.00 0.046233 3285251.61
Other accounts payable — —
Including: USD 120594.09 7.1884 866878.56
JPY 34222156.10 0.046233 1582192.94
63. Lease
(1) As a lessee
Items Current year Last year
Interest expense on lease liabilities 1545658.27 1043053.19
Short-term lease expense recognized in income statement 2052986.01 4114059.87
Low-value asset lease expense recognized in income
--
statement (excl short-term lease)
Income from the sublease of the right-of-use the assets - -
Sum of cash outflows related to leases 5240197.61 8453910.59
Cash inflow from sale and leaseback transactions 2000000.00 6600000.00
Cash outflow from sale and leaseback transactions 3330252.62 10891978.68
153(2) As a lessor
Operating lease
Include: income related to variable lease
Items Lease income payments not included in lease payment
receivable
Office and plant 11230884.64
Total 11230884.64 -
VI. Research and development expense
Items Current year Last year
Labor cost 91123015.98 102598481.06
Material cost 33426263.16 20934040.54
Depreciation and amortization 17272044.93 14685194.95
Others 13704991.50 25968001.16
Total 155526315.57 164185717.71
Expensed R&D 155526315.57 164185717.71
Capitalized R&D
154VII. Change of Consolidation Scope
None
VIII. Interest in other entity
1.Equity of subsidiaries
（1） Organization structure of group company
Registered
Main Shareholding (%)
capital Registered Obtaining
Name of subsidiaries business Business nature
(million address
address Direct Indirect
methodYuan）
Dalian Bingshan Group
300.00 Dalian Dalian Installation 100 - Establish
Engineering Co. Ltd.Chengdu Bingshan
Refrigeration Engineering 10.00 Chengdu Chengdu Service - 51 Establish
Co. Ltd.Dalian Bingshan Group Sales
18.00 Dalian Dalian Trading 100 - Establish
Co. Ltd.Dalian Bingshan
Air-conditioning Equipment 82.54 Dalian Dalian Manufacturing 100 - Establish
Co. Ltd.Dalian Bingshan Guardian
50.70 Dalian Dalian Manufacturing 100 - Establish
Automation Co. Ltd.Dalian
Bingshan-RYOSETSU
57.58 Dalian Dalian Manufacturing 100 - Establish
Quick Freezing Equipment
Co. Ltd.Wuhan New World
Refrigeration Industrial Co. 200.00 Wuhan Wuhan Manufacturing 100 - Acquisition
Ltd.Wuhan New World
Air-conditioning
35.00 Wuhan Wuhan Installation - 100 Establish
Refrigeration Engineering
Co. Ltd
Wuhan Lanning Energy
22.00 Wuhan Wuhan Trading - 100 Acquisition
Technology Co. Ltd.Dalian Universe Thermal
80.00 Dalian Dalian Manufacturing 55 - Acquisition
Technology Co.Ltd.
155Dalian Bingshan Engineering
30.00 Dalian Dalian Service 100 - Acquisition
& Trading Co. Ltd
Sonyo Compressor
442.40 Dalian Dalian Manufacturing 100 - Acquisition
(Dalian)Co.Ltd.
Sonyo Refrigeration System
105.00 Dalian Dalian Manufacturing 100 - Acquisition
(Dalian) Co. Ltd.
Sonyo Refrigeration (Dalian)
212.08 Dalian Dalian Manufacturing 100 - Acquisition
Co. Ltd.
1) All the proportion of shareholding in subsidiaries were the same with voting right.
2) The Company held over 50% voting right in subsidiaries and could control these subsidiaries with over
50% voting right.
（2） There are no significant non-subsidiaries.
2.Change of equity share in subsidiary which is still under control
There is no change of equity share in subsidiary
3.Equity in joint venture arrangement or associated enterprise
（1） The important affiliated companies
Shareholding (%)
Main
Name of joint ventures or Registered Business Accounting
business
affiliated companies address nature methods
address
Direct Indirect
Dalian Bingshan Metal Equity
Dalian Dalian Manufacturing 49.00 Technology Co. Ltd. - method
1) The Company has the same percentage of shareholding and voting right in joint-venture or affiliated company.
2) The Company doesn’t have joint venture or affiliated companies which have no significant influence although being
held 20% or more voting rights.
（2） The key financial information of affiliated companies
Closing balance/Current year
Items Closing balance/Current year Dalian Bingshan
Metal Technology Co. Ltd.
156Current assets 256248904.13
Including: Cash and cash equivalents 80025332.42
Non-current assets 42099190.29
Total assets 298348094.42
Current liabilities 60317579.55
Non-current liabilities -
Total liabilities 60317579.55
Total net asset 238030514.87
Minority interests -
Equity to the parent company 238030514.87
Share of net assets according to the shareholding
116634952.28
proportions
Adjusting events -
—Goodwill 19269770.94
—Unrealized profits of insider trading -
--Others -
Book value of equity investment of affiliated companies 135904723.22
Fair value of equity investment with public offer -
Operating income 432254731.20
Financial expense -2035716.59
Income tax expense 9817260.94
Net profit 58136954.23
Net profit of discontinuing operation -
Other comprehensive income -
Total comprehensive income 58136954.23
The current dividends received from joint ventures 30759188.94
157(Continued)
Opening balance/Last year
Items Dalian Fuji Bingshan Vending Jiangsu Jingxue Insulation Dalian Bingshan Metal
Machine Co. Ltd Technology Co.Ltd Technology Co. Ltd.Current assets 279515256.77 1513841724.68 334413727.30
Including: Cash and cash equivalents 18195178.30 151387053.19 163.052.296.71
Non-current assets 190659275.57 301638618.76 38148931.23
Total assets 470174532.34 1815480343.44 372562658.53
Current liabilities 300289317.09 943431015.22 58315558.14
Non-current liabilities 32367401.38 40353776.15 -
Total liabilities 332656718.47 983784791.37 58315558.14
Total net asset 137517813.87 831695552.07 314247100.39
Minority interests - 274736.66 -
Equity to the parent company 137517813.87 831420815.41 314247100.39
Share of net assets according to the
shareholding proportions 67383728.80 123964843.58 153981079.19
Adjusting events - - -
—Goodwill 226689.29 20390060.33 19269770.94
—Unrealized profits of insider trading - - -
--Others - - -
Book value of equity investment of affiliated
companies 67610418.09 144354903.91 173250850.13
Fair value of equity investment with public
offer - - -
Operating income 209845287.10 1152098034.96 464881380.24
158Financial expense 11084822.85 1934530.46 -2682355.04
Income tax expense -353797.35 4996495.33 10449723.61
Net profit -85684074.85 38019504.83 63729802.01
Net profit of discontinuing operation - - -
Other comprehensive income - - -
Total comprehensive income -85684074.85 38019504.83 63729802.01
The current dividends received from joint
ventures - 1610172.00 33134422.30
159（1） Summary financial information of insignificant affiliated companies
Items Current year Last year
Affiliated company — —
Total book value of investment of affiliated
346068692.14136058775.37
companies
The total of following items according to the
——
shareholding proportions
Net profit -7939529.15 3826157.59
Other comprehensive income - -
Total comprehensive income -7939529.15 3826157.59
（2） Significant restrictions of the ability of affiliated companies transferring funds
to the Company.No.
（3） Contingency related to joint venture or affiliated company need to be
disclosed.No.IX. Government Grant
1. Liability item involved in government grant
Into non- The value
Opening Into other Closing Related to
Items Increase operating offset cost
Balance income Balance asset/income
income and expense
Deferred asset
82920764.61--5671105.18-77249659.43
income
Deferred asset/income
15353503.19684168.00-2553850.33-13483820.86
income
98274267.80684168.00-8224955.51-90733480.29—
2. Recognized in income statement
Items Current year Last year
Other income 19798839.71 12002208.32
160X. Risk Related to Financial Instruments
The main financial instruments held by the group are borrowings accounts receivable accounts
payable other non-current financial asset etc. The detailed explanation is referred to the note
No.V. The related risks of these financial instruments and the risk management policy conducted
to reduce these risks by the group are introduced as below. The group management conducts to
manage and monitor these risks exposure and control these risks under certain risk level.
1. Objectives and policies of each risk management
The objectives of risk management conducted by the Company are to reach the balance between
risk and profit return by reducing the negative influence to operating performance to the
minimum level as well as maximizing the shareholders’ and other investors’ profits. Based on
these objectives the basic risk management policy is to recognize and analyze all sorts of risk
that the Company faced with to set up the proper risk tolerance bottom line conducting risk
management as well as to monitor these risks in a timely and effective manner and to ensure
these risks under the limit level.
(1) Market risk
1) Exchange rate risk
Most of the Company’s business is located in China and settled with RMB. But the Company
defined exchange rate risk of assets liabilities dominated in foreign currency and future
transaction dominated in foreign currency (mainly including USD JPY EUROHKD and GBP).The financial department of the Company monitors the Company’s foreign currency transaction
and the scale of foreign assets and liabilities and decreases exchange rate risk. During the
current year the Company did not agree any forward foreign exchange contract or currency
swap contract .As at 31st December 2024 the Company’s assets and liabilities dominated in
foreign currency are listed in RMB as following：
161Items December 31 2024 January 1 2024
Monetary fund-USD 11895447.99 5900837.69
Monetary fund-JPY 18978914.14 5352282.10
Monetary fund- EURO 128522.55 346986.51
Monetary fund- HKD - 84495.39
Receivable -USD 52044382.54 50158313.38
Receivable -GBP 1282811.66 -
Receivable -JPY 7974729.62 3847098.27
Receivable - EURO 4894436.83 5426571.06
Payables -USD 2476583.44 7966726.35
Payables -JPY 3285251.61 1794696.33
Other payables - JPY 1582192.94 -
The group paid close attention to the effect on FX risk.
2) Interest rate risk
The interest risk of the group incurred from bank loan risk of a floating interest rate of financial
liabilities that lead to the group facing cash flow interest rate risk financial liabilities with a fixed
interest rate lead to the group facing cash flow interest rate risk. The company determined the proportion
of fixed interest rate and floating interest rate according the current market circumstance. The group’s
interest-bearing debt is borrowings of RMB 686000000.00 at fixed interest rate as of December
312024(borrowings of RMB 799100000.00 in2023).
The financial department of the group continuously monitors the interest rates level and the
management would make some adjustment to lower the interest rate risk according to the latest market
situation. Climbing interest rate will increase the cost of newly increased interest-bearing liability and
interest expense for unsettled interest-bearing liability at floating rate and have adverse effect on the
business performance.
3) Price risk
The price risk of the Company is mainly commodity price risk. The Company sells products at market
prices. As the national economy enters the "new normal" the manufacturing industry is under great
economic downward pressure and the drastic fluctuations of bulk material prices have a certain impact
on the group 's operations.
(1) Credit risk
162The credit risk of the group comes from monetary fund notes receivable accounts receivable and other
accounts receivable etc. The management made credit policies and monitored changes of this credit
exposure.The group 's monetary fund was in bank with higher credit rating so there was no significant credit risk
nor significant losses due to the default of other entity. Upper limit policy is adopted to avoid any credit
risk from financial institution.The group made relevant policy to control credit risk exposure from receivable other receivable and
notes receivable. The group assesses the client’s credit background according to the client’s financial
performance possibility of obtaining guarantee from the 3rd party credit record and other factors such
as current market. The group will periodically monitor the credit situation of the client and will take
measures such as prompt letter shorten credit period or cancel the credit to ensure the overall credit risk
within the controllable scope.As at 31st December 2024 the top five customers of receivable accounts balance are
262076417.63Yuan representing 11.46% of sum of receivable and contract assets.
(3) Liquidity risk
Liquidity risk was referred to the risk of shortage of funds incurred when the enterprise fulfills the
obligation of settlement by cash or other financial assets. The way to manage the liquidity risk is to
ensure enough fund available to fulfill the liability by due date in prevention from unacceptable loss of
or reputation damage to the group. The group periodically analyze the liability structure and expiry date
and the financial department of the group continued to monitors the short term or long-term capital
needs to ensure maintain plenty of cash flow. And the same time they also monitor the condition of bank
loan agreements and obtain commitments from banks to reduce liquidity risks.The fund mainly comes from bank loan. By December 31st 2024 the credit limit still available is 711.87
million Yuan(618.30 million Yuan 2023) and short-term credit limit available is 711.87 million
Yuan(618.30 million Yuan 2023).As at 31st December 2024 the group’s financial assets and financial liabilities in line with
non-discounted cash flow of the contracts as following：
163Currency unity:10kYuan
Within 1
Items 1-2 years 2-5 years Over 5 years Total
year
Financial Assets
Cash and cash in bank 104214.37 104214.37
Notes receivable 35285.49 35285.49
Accounts receivable 149223.43 149223.43
Financing receivable 38207.33 38207.33
Other Receivable 4574.84 4574.84
Contract asset 18476.09 18476.09
Other current asset 2763.64 2763.64
Other non-current
168.39168.39
financial asset
Long-term receivable 5.93 7.59 0.48 14.00
Financial Liabilities
Short-term loan 16728.34 16728.34
Notes Payable 56911.74 56911.74
Accounts payable 160138.18 160138.18
Other payable 22682.81 22682.81
Employee’s payable 14673.47 14673.47
Tax payable 3027.66 3027.66
Non-current liability
16142.1116142.11
due within 1 year
Long-term loan 44134.65 4000.00 6600.00 54734.65
Lease obligation 346.79 637.44 922.96 1907.19
Long-term payable 554.87 690.27 1245.14
1642. Financial asset transfer
(1) Classified by transfer method
Transfer
Nature Amount Derecognition Basis for derecognition
method
Bank acceptance
Endorsement All risk and reward
bill with high credit 386371303.27 Y
of a bill have been transferred
rating
Bank acceptance
Discounting All risk and reward
bill with high credit 33231779.38 Y
a bill have been transferred
rating
Bank/trade
Endorsement Retain mostly risk and
acceptance bill with
/discounting 174902890.29 N reward including
non-high credit
of a bill default risk
rating
All risk and reward
Factoring Receivable 13478950.00 Y
have been transferred
Total — 607984922.94 — —
(2) Derecognized financial asset due to transfer
Derecognized Gain/loss from
Item Transfer method
Amount derecognition
Bank acceptance bill with
Endorsement of a bill 386371303.27 -
high credit rating
Bank acceptance bill with
Discounting a bill 33231779.38 -89454.91
high credit rating
Factoring without
Receivable 13478950.00 -
recourse
Total — 433082032.65 -89454.91
XI. Disclosure of Fair Value
1. Amount and measurement level of the assets and liabilities measured at fair value at the year
165end
Fair value at the year end
1stItems level 2
nd level 3rd level
measurement of measurement of measurement of Total
FV FV FV
Financial assets
Continuously — — — —
measured at FV
Receivable financing - 382073283.27 382073283.27
Other non-current
-1683852.591683852.59
financial asset
Total - 382073283.27 1683852.59 383757135.86
2. Basis for Market price of first level measurement of fair value
None.
3. For continuous and discontinuous 2nd level of FV valuation technique adopted and
key parameter quantitive and qualitive information.Bank acceptance notes (receivable financing) as measured at fair value through other
comprehensive income is within this scope. Bank acceptance notes held by the group mainly
are high credit grading from the large commercial bank. As the remaining maturity is short and
credit risk is very low on the balance sheet date the book value of bank acceptance notes
receivable is similar to fair value.
4. For continuous and discontinuous 3rd level of FV valuation technique adopted and
key parameter quantitive and qualitive information.As of December 31 2024 the book value of the share investment in Guotai Junan Investment
Management Co.Ltd and Wuhan Steel and Power Co.Ltd is 1683852.59 Yuan. It is
presented as other non-current financial asset in accordance with No.22- financial instrument
recognition and measurement of Accounting Standards for Business Enterprises. Having
considered there is neither active market for invested company’s share nor market price is
available for reference and it is not feasible to obtain the relevant observable input value. FV
of the investment is measured at cost by taking influence factor of FV into consideration.
1665. For continuous 3rd level of FV adjusted information of opening and closing balance
and sensitivity analysis of unobservable parameter.None.
6. Assets continuously measured at fair value have switched among different level during
the year.None.
7. Changes of valuation technique and reasons for changes
None.
8. Assets and liability are disclosed at FV rather than measured at FV
None.XII. Related Parties Relationship and Transactions
i. Related parties’ relationship
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
Parent Registered Business Registered Shareholding Voting
company address nature capital percentage power
(%) percentage
(%)
Dalian
Bingshan
Dalian Manufacture 158580000.00 20.27 20.27
Group Co.Ltd.Note: Dalian Bingshan Group Co. Ltd. is a Sino –foreign joint venture located No.106 Liaohe
East Road DDZ Dalian China. The legal representative of Dalian Bingshan Group Co. Ltd. is
Mr. Ji Zhijian and the registered capital is RMB158.58 million. The registered business
operation period is from 3rd July 1985 to 2nd July 2035. The business scope includes research
development manufacture sales service and installment of refrigeration equipment cooling
and freezing equipment different size of air-conditioners petrochemical equipment electronic
and electronic- control products home electronic appliance environment protect equipment and
etc. (unless the licenses needed)
1672. Subsidiaries
Referrer to the content in the Note “VIII. 1. (1) Organization structure of group company”.
3. Affiliated company and joint ventureThe information of the affiliated company and joint venture please refers to the note “VIII. 3.(1)The significant affiliated company and joint venture’. The Company had transactions with
related parties during the current period or last period including:
Names of the joint ventures or affiliated company Relationships with the Company
Dalian Fuji Bingshan Vending Machine Co. Ltd. Affiliated company of the Company
Dalian Fuji Bingshan Vending Machine Sales Co.Affiliated company of the Company
Ltd.Jiangsu Jingxue Insulation Technology Co.Ltd. Affiliated company of the Company
MHI Bingshan Refrigeration (Dalian) Co.Ltd. Affiliated company of the Company
Dalian Honjo Chemical Co. Ltd. Affiliated company of the Company
Dalian Bingshan Metal Technology Co.Ltd. Affiliated company of the Company
Dalian Bingshan Group Huahuida Financial Leasing
Affiliated company of the Company
Co. Ltd.SONGZ -Grand Ocean Thermal Technology (Dalian)
Affiliated company of the Company
Co. Ltd.Dalian Bingshan Group Huayida Financial Leasing
Subsidiary of its affiliated company
Co. Ltd.Dalian Jingxue Freezing Equipment Co. Ltd. Subsidiary of its affiliated company
Shanghai Jingxue Freezing Equipment Co. Ltd. Subsidiary of its affiliated company
Jiangsu Jingxue Insulation Environmental
Subsidiary of its affiliated company
Engineering Co.Ltd.SONGZ -Grand Ocean New Energy Vehicle Spare
Subsidiary of its affiliated company
Part (Changchun) .Ltd.Wuhan Sikafu Power Control Equipment Co. Ltd. Affiliate of its subsidiary
4. Other related parties
Name of related party Related party relationship
Company under direct/indirect Control of Panasonic under control of or significant influence by the
Co.Ltd same party
under control of or significant influence by the
Sanyo Corporation
same party
Dalian Spindle Environmental Facilities Co. Ltd. under control of or significant influence by the
168same party
LINDE HYDROGEN FUELTECH (DALIAN) CO. under control of or significant influence by the
LTD. same party
under control of or significant influence by the
Dalian Shentong Electric Co. Ltd.same party
under control of or significant influence by the
Dalian Fuji Bingshan Control System Co. Ltd.same party
under control of or significant influence by the
BAC Dalian Co. Ltd.same party
under control of or significant influence by the
Dalian Bingshan Wisdom Park Co. Ltd
same party
Dalian Bingshan Part Technology Co.LTD. Under control of the same ultimate controlling party
Alphavita Bio-scientific (Dalian) Co. Ltd. Under control of the same ultimate controlling party
Bingshan Technology Service （Dalian） Co. Ltd. Under control of the same ultimate controlling party
Sonyo Cold Chain(Dalian) Co. Ltd. Under control of the same ultimate controlling party
Under control of the same ultimate controlling
Sonyo Cold Chain Equipment (Wuhan) Co. Ltd.party’s subsidiary
Directors and senior officers of the Company
serve as directors and senior officers in Dalian
Dalian Health and Wellness Industry Group Co. Ltd
Zhonghuida Refrigeration Technology Co. Ltd
Company
Dalian State-owned Assets Investment and An associated natural person serves as a director of
Management Group Co.Ltd. the company
Note: Companies under direct/indirect Control of Panasonic Co.Ltd are:
Panasonic Electric Taiwan Co.Ltd. Wanbao(Guangzhou) Compressor Co.Ltd Panasonic
Electronic Devices(Jiangmen)Co.Ltd. Panasonic R&D Center Suzhou Co.Ltd Dalian Branch
Panasonic Corporation Panasonic Industry (China) Co. Ltd. Shanghai Branch Appliances
Microwave Oven(Shanghai) Co.Ltd. Panasonic Motor(Hangzhou)Co.Ltd. PanasonicElectric Equipment (China）Co.Ltd. Panasonic Appliances Air-Conditioning and Refrigeration
Corporation Panasonic Home Appliances (China) Co.Ltd. Panasonic
Procurement(CHINA)Co.Ltd. Panasonic Industry (China) Co. Ltd. Panasonic Home
Appliances(Hangzhou)Co.Ltd. Singapore Panasonic Cold Chain Asia Panasonic Sales Taiwan
Co Ltd..Panasonic Appliances Air-Conditioning Malaysia Sdn.Bhd.、Panasonic Cold Chain Poland Sp. Z
O.O. 、 Panasonic Connect Co.Ltd.Media Entertainment Business Division 、 Panasonic
Corporation、Panasonic Corporation Appliances Company Heating＆Cooling Solutions Bd
Commercial Air-Conditionin 、 Panasonic Corporation Appliances Company 、 Panasonic
Corporation Heating & Ventilation A/C Company Heating And Cooling Devices Business
Division、Panasonic Corporation Heating & Ventilation Ac Company Commercial Equipment
Solutions Business Division、Panasonic Do Brasil Limitada Miami Branch、Panasonic Heating
And Ventilation Air-Conditioning CzechS.R.O.、Panasonic Hong Kong Co.Ltd.、Panasonic
169India Pvt Ltd (Apin)、Panasonic Industrial Devices Sales Company Of America、Panasonic
Industrial Devices Sales Taiwan Co.Ltd.、Panasonic Industrial Devices Sales(M)Sdn Bhd、
Panasonic Industry Europe Gmbh、Panasonic Industry Sales Asia Pacific、Panasonic Life
Solutions India Private Limited、Panasonic Operational Excellence Co.Ltd.、Panasonic
Operational Excellence Co.Ltd.（Pex）、Panasonic Taiwan Co.Ltd.、Panasonic A.P.Sales
(Thailand)Co.Ltd、Panasonic Corporation、Panasonic Corporation Appliances Company.ii. Related Party transactions
1. Purchase of goods offer and receive labour services etc inter-group transactions
(1) Purchase of goods/receive labour services
Related party Content Current year Last year
Dalian Bingshan Metal Technology
Purchases of goods 62734659.74 63809032.17
Co.Ltd.Sonyo Cold Chain (Dalian)Co.Ltd Purchases of goods 58961755.22 40499927.26
Jiangsu Jingxue Insulation
Purchases of goods 35868159.33 28067092.90
Technology Co.Ltd.Company under direct/indirect
Purchases of goods 26696668.01 13763555.55
Control of Panasonic Co.Ltd
Bingshan Technology Service
Purchases of goods 21254763.30 5575811.09
（Dalian） Co. Ltd.
Dalian Honjo Chemical Co. Ltd Purchases of goods 14418121.76 10305185.60
Dalian Bingshan Part Technology
Purchases of goods 14257101.84 10775437.38
Co.LTD.Dalian Shentong Electric Co. Ltd. Purchases of goods 10593486.97 1680077.95
BAC Dalian Co. Ltd. Purchases of goods 9499080.31 18579088.19
Dalian Spindle Environmental
Purchases of goods 1168153.45 780949.56
Facilities Co. Ltd
Dalian Fuji Bingshan Control System
Purchases of goods 970858.76 5029475.45
Co. Ltd.Dalian Bingshan Wisdom Park Co.Purchases of goods 161184.48 80441.60
Ltd
Alphavita Bio-scientific (Dalian) Co.Purchases of goods
93428.30 4466987.61 Ltd.
Receive labor
Sanyo Corporation 79389.43 1621316.09
services
Dalian Fuji Bingshan Vending
Purchases of goods 68141.59 35398.23
Machine Sales Co. Ltd
Receive labor
Sonyo Cold Chain (Dalian)Co.Ltd 59669.09
services
Shanghai Jingxue Freezing
Purchases of goods 53008.85
Equipment Co. Ltd
Dalian Jingxue Freezing Equipment
Purchases of goods 28300.88
Co. Ltd.
170Dalian Bingshan Group Huahuida
Purchases of goods 15337.41
Financial Leasing Co. Ltd.Dalian Fuji Bingshan Vending
Purchases of goods 9597.63 505497.50
Machine Co. Ltd
Dalian Bingshan Group Co. Ltd. Purchases of goods 943.40
Bingshan Technology Service Receive labor
-2011933.16
（Dalian） Co. Ltd. services
Dalian Bingshan Wisdom Park Co. Receive labor
-47169.81
Ltd services
Receive labor
Dalian Bingshan Group Co. Ltd. - 24452.83
services
Total 256991809.75 207658829.93
(2) Sales of goods/ labour services provision
Related party Content Current year Last year
Company under direct/indirect Control
Sales of goods 294094000.19 285292151.76
of Panasonic Co.Ltd
Sonyo Cold Chain(Dalian)Co.Ltd Sales of goods 124892254.77 138639729.84
BAC Dalian Co. Ltd Sales of goods 102516304.77 69977098.57
Bingshan Technology Service （Dalian）
Sales of goods 53199272.20 32203558.67
Co. Ltd.Dalian Bingshan Group Huahuida
Sales of goods 13053097.35 -
Financial Leasing Co. Ltd.Sonyo Cold Chain Equipment (Wuhan)
Sales of goods 12938062.52 -
Co. Ltd.Dalian Fuji Bingshan Vending Machine
Sales of goods 9294419.14 16843047.06
Co. Ltd
Dalian Health and Wellness Industry
Sales of goods 6653136.22 -
Group Co. Ltd
MHI Bingshan Refrigeration (Dalian)
Sales of goods 5359262.29 7181290.12
Co.Ltd.Alphavita Bio-scientific (Dalian) Co.Sales of goods 3226307.14 4522436.41
Ltd.Dalian Honjo Chemical Co. Ltd Sales of goods 2416987.78 1863564.01
Dalian Bingshan Part Technology
Sales of goods 2306804.62 1742813.23
Co.LTD
Dalian Spindle Environmental Facilities
Sales of goods 1256946.19 3665307.02
Co. Ltd
Dalian Bingshan Wisdom Park Co. Ltd Sales of goods 531283.99 13402551.72
Dalian Fuji Bingshan Control System
Sales of services 417570.36 414608.77
Co. Ltd.
171Dalian Shentong Electric Co. Ltd Sales of goods 412111.48 120092.03
Dalian Fuji Bingshan Control System
Sales of goods 209722.13 153752.97
Co. Ltd.Bingshan Technology Service （Dalian）
Sales of goods 163716.81 -
Co. Ltd.Dalian Jingxue Freezing Equipment Co.Sales of goods 85702.88 96698.39
Ltd
Linde Hydrogen Fueltech (Dalian) Co.Sales of goods 67265.46 794939.42
Ltd
Dalian Bingshan Wisdom Park Co. Ltd Sales of services - 141509.43
Dalian Bingshan Group Co. Ltd. Sales of service - 43018.86
Dalian Bingshan Group Co. Ltd. Sales of goods - 26445.02
Total 633094228.29 577124613.30
(3) Assets Lease
1) Assets rent out
Category of Current year Last year Lease
Lessee
assets rent out Lease Income Income
Dalian Bingshan Wisdom Park
Land/property 9013347.56 9013347.56
Co. Ltd
MHI Bingshan Refrigeration
Plant 3809523.80 3809523.80
(Dalian) Co.Ltd.
Linde Hydrogen Fueltech
Plant 2792899.62 2360040.71
(Dalian) Co. Ltd
Sonyo Cold Chain Plant /Employee
1760363.322160513.31
(Dalian)Co.Ltd dormitory
Company under direct/indirect Plant/ office /
763337.161483508.26
Control of Panasonic Co.Ltd dormitory
Dalian Bingshan Part
Plant and office 846330.36 194954.13
Technology Co.Ltd.Dalian Jingxue Freezing
Plant and office 784927.88 784927.88
Equipment Co. Ltd.Wuhan Sikafu Power Control
Plant 721045.88 721045.88
Equipment Co. Ltd
Bingshan Technology Service
Plant and office 310725.81 355081.77
（Dalian） Co. Ltd.
Dalian Bingshan Group Co.Office 66055.05 66055.05
Ltd.Dalian Spindle Environmental
Office 5284.40 20069.72
Facilities Co. Ltd.
1722) Assets under lease
Category of Lease premium paid
Lessor assets rent in
Current year Last year
Dalian Bingshan Group Huahuida
Fixed asset 573090.24 25173657.70
Financial Leasing Co. Ltd
Sonyo Cold Chain(Dalian)Co.Ltd Plant 2456952.29 -
(Continued)
Interests on lease liabilities Increased right-of-use assets
Lessor
Current year Last year Current year Last year
Dalian Bingshan
Group Huahuida
69055.292067080.20--
Financial Leasing Co.Ltd
Sonyo Cold
378902.66
Chain(Dalian)Co.Ltd
(4) Lease under short term
Category of Current year Last year Lease
Lessee
assets rent out Lease Income Income
Dalian State-owned Assets
Investment and Management Land 873740.74 873740.74
Group Co.Ltd.
(5) Warranty provided by Related Parties
The national development fund planned to support the Company’s intelligent and green
equipment of cold chain and service industry base project and provide the special fund to thecontrolling shareholder of the Company Bingshan Group. Please refer to the “ Note V. 33 longterm borrowings”.
(6) Funds borrow from /lent to related party
Starting Ending
Name of the related party Amount Explanation
date date
Funds in
Dalian Bingshan Group Project fund
Co. Ltd. 160000000.00 2016.03.14 2026.03.13 investment
Dalian Bingshan Group 13805309.73 2021.11.10 2026.11.09 Sale and
173Huahuida Financial leaseback
Leasing Co.Ltd
Dalian Bingshan Group
Sale and
Huahuida Financial 6600000.00 2023.02.24 2025.02.23 leaseback
Leasing Co.Ltd
Dalian Bingshan Group
Sale and
Huahuida Financial 2000000.00 2024.01.24 2026.01.23 leaseback
Leasing Co.Ltd
Dalian Bingshan Group
Sale and
Huahuida Financial 8600000.00 2024.07.26 2026.07.25 leaseback
Leasing Co.Ltd
Dalian Bingshan Group
Huayida Commercial 8000000.00 2024.01.19 2026.01.18 Factoring
Factoring Co. Ltd
Dalian Bingshan Group
Huayida Commercial 1000000.00 2024.06.19 2026.06.18 Factoring
Factoring Co. Ltd
Dalian Bingshan Group
Huayida Commercial 6400000.00 2024.07.31 2028.07.30 Factoring
Factoring Co. Ltd
Dalian Bingshan Group
Huayida Commercial 1000000.00 2024.07.26 2026.07.25 Factoring
Factoring Co. Ltd
Dalian Bingshan Group
Huayida Commercial 1200000.00 2024.08.26 2026.08.25 Factoring
Factoring Co. Ltd
Dalian Bingshan Group
Huayida Commercial 3000000.00 2024.09.14 2025.09.13 Factoring
Factoring Co. Ltd
Dalian Bingshan Group
Huayida Commercial 2564370.38 2024.10.23 2025.10.22 Factoring
Factoring Co. Ltd
Dalian Bingshan Group
Huayida Commercial 1800000.00 2024.10.31 2026.10.30 Factoring
Factoring Co. Ltd
Dalian Bingshan Group
Huayida Commercial 3000000.00 2024.11.15 2025.11.14 Factoring
Factoring Co. Ltd
Dalian Bingshan Group
Huayida Commercial 6000000.00 2024.12.15 2025.11.15 Factoring
Factoring Co. Ltd
Dalian Bingshan Group
Huayida Commercial 4000000.00 2024.12.27 2025.12.26 Factoring
Factoring Co. Ltd
(7) Asset transfer and debt restructuring among the related parties
Transaction Current year Last year
Item
Purchase shareholdings of
Sanyo Corporation - 87171300.00
affiliated company
Panasonic Corporation of Purchase shareholdings of - 58114200.00
174China Co. Ltd affiliated company
Total - 145285500.00
(8) Management Remuneration
Item Current year Last year
Total remuneration 5140400.00 5033700.00
(9) Other transactions with related party
None
iii. Balances with Related party
1.Accounts receivable due from related parties
Closing Balance
Item Related party Bad debt
Book Balance
Provision
Accounts receivable Sonyo Cold Chain
70233768.675769841.07
(Dalian)Co.Ltd
Accounts receivable BAC Dalian Co. Ltd 29726955.86 2086832.30
Accounts receivable Company under direct/indirect
23124134.38692390.83
Control of Panasonic Co.Ltd
Accounts receivable Sonyo Cold Chain Equipment
9290724.88653141.38
(Wuhan) Co. Ltd.Accounts receivable Bingshan Technology Service
8120883.28570086.01
（Dalian） Co. Ltd.
Accounts receivable Dalian Bingshan Wisdom Park
7476477.331390028.46
Co. Ltd
Accounts receivable Dalian Fuji Bingshan Vending
5051832.96354638.67
Machine Co. Ltd
Accounts receivable Dalian Bingshan Group Huahuida
Financial Leasing Co.Ltd 4224312.50 296546.74
Accounts receivable MHI Bingshan Refrigeration
3105512.32218006.97
(Dalian) Co.Ltd.
Accounts receivable Alphavita Bio-scientific (Dalian)
2265320.79246626.01
Co. Ltd.Accounts receivable Dalian Health and Wellness
1693997.95118918.66
Industry Group Co. Ltd
Accounts receivable Linde Hydrogen Fueltech
786500.99223828.69
(Dalian) Co. Ltd
Accounts receivable Dalian Spindle Environmental
765477.3153736.51
Facilities Co. Ltd
175Accounts receivable Dalian Fuji Bingshan Control
54200.007850.40
System Co. Ltd.Accounts receivable Dalian Shentong Electric Co. Ltd 50652.00 3555.77
Accounts receivable Jiangsu Jingxue Insulation
3570.001051.32
Technology Co.Ltd.Bingshan Technology Service
Other receivable 400000.00 14640.00
（Dalian） Co. Ltd.
Sonyo Cold Chain
Other receivable 260719.09 18302.48
(Dalian)Co.Ltd
Dalian Bingshan Group Huahuida
Contract asset 432562.50 30365.89
Financial Leasing Co. Ltd
Dalian Bingshan Metal
Contract asset 9250.00 649.35
Technology Co.Ltd
Dalian Health and Wellness
Contract asset 1000.00 70.20
Industry Group Co. Ltd
Prepayment Dalian Shentong Electric Co. Ltd 11949284.99 -
Prepayment Dalian Fuji Bingshan Control
2127955.54-
System Co. Ltd.Prepayment Company under direct/indirect
1632646.65-
Control of Panasonic Co.Ltd
Prepayment Bingshan Technology Service
1327651.07-
（Dalian） Co. Ltd.
Prepayment BAC Dalian Co. Ltd 216202.86 -
Prepayment Dalian Bingshan Wisdom Park
23888.59-
Co. Ltd
(Continued)
Opening Balance
Item Related party Bad debt
Book Balance
Provision
Accounts receivable Sonyo Cold Chain
84045272.254997695.76
(Dalian)Co.Ltd
Accounts receivable BAC Dalian Co. Ltd 28426981.24 1995574.08
Accounts receivable Company under direct/indirect
12595875.91174589.96
Control of Panasonic Co.Ltd
Accounts receivable Dalian Bingshan Wisdom Park
10199546.41807170.38
Co. Ltd
Accounts receivable Dalian Fuji Bingshan Vending
6270661.55440200.44
Machine Co. Ltd
Accounts receivable MHI Bingshan Refrigeration
3390197.07237991.83
(Dalian) Co.Ltd.
Accounts receivable Alphavita Bio-scientific (Dalian)
2791425.71200691.99
Co. Ltd.Accounts receivable Dalian Bingshan Part Technology
1606085.4452796.80
Co.LTD
176Accounts receivable Dalian Spindle Environmental
1072064.5675258.93
Facilities Co. Ltd
Accounts receivable Bingshan Technology Service
965375.2267769.34
（Dalian） Co. Ltd.
Accounts receivable Linde Hydrogen Fueltech
909470.99139380.02
(Dalian) Co. Ltd
Accounts receivable Dalian Bingshan Group Huahuida
138450.009719.19
Financial Leasing Co. Ltd
Accounts receivable Dalian Fuji Bingshan Control
54200.006410.69
System Co. Ltd.Bingshan Technology Service
Other receivable 100000.00 100000.00
（Dalian） Co. Ltd.
Dalian Fuji Bingshan Vending
Other receivable 48000.00 7608.00
Machine Co. Ltd
Wuhan Sikafu Power Control
Other receivable 4287.61 156.93
Equipment Co. Ltd.Prepayment Jiangsu Jingxue Insulation
4088975.80-
Technology Co.Ltd.Prepayment Company under direct/indirect
1152192.68-
Control of Panasonic Co.Ltd
Sonyo Cold Chain
Prepayment 636235.00 -
(Dalian)Co.Ltd
Prepayment BAC Dalian Co. Ltd 216191.11 -
Dalian Fuji Bingshan Vending
Prepayment 176869.45 -
Machine Co. Ltd
Dalian Fuji Bingshan Vending
Prepayment 77000.00 -
Machine Sales Co. Ltd.Bingshan Technology Service
Prepayment 74297.11 -
（Dalian） Co. Ltd.
Prepayment Dalian Bingshan Part Technology
13806.00-
Co.LTD
Contract asset Dalian Bingshan Wisdom Park
550000.0038610.00
Co. Ltd
1. Accounts Payable due from Related Party
Closing Opening
Item Related party
Balance Balance
Accounts Jiangsu Jingxue Insulation
51228592.3165052640.75
Payable Technology Co.Ltd
Accounts
Sonyo Cold Chain (Dalian)Co.Ltd 18271180.03 10067451.24
Payable
Accounts
BAC Dalian Co. Ltd 14755585.47 21731458.82
Payable
Accounts Dalian Bingshan Metal Technology
11802602.369745165.83
Payable Co.Ltd
Accounts
Dalian Honjo Chemical Co. Ltd. 7135583.64 6672533.86
Payable
177Accounts Dalian Bingshan Part Technology
4717413.126266070.43
Payable Co.LTD
Accounts Jiangsu Jingxue Insulation
2026200.002896300.00
Payable Environmental Engineering Co.Ltd
Accounts
Dalian Shentong Electric Co. Ltd 1758722.25
Payable
Accounts Company under direct/indirect
1167608.32864418.25
Payable Control of Panasonic Co.Ltd
Accounts Bingshan Technology Service
742017.35126241.74
Payable （Dalian） Co. Ltd.Accounts Dalian Spindle Environmental
498527.44794006.00
Payable Facilities Co. Ltd
Accounts Dalian Fuji Bingshan Control
322272.97502571.47
Payable System Co. Ltd.Accounts Jiangsu Jingxue Insulation
207616.60
Payable Environmental Engineering Co.Ltd
Accounts Dalian Fuji Bingshan Vending
5907.73
Payable Machine Co. Ltd
Dalian Bingshan Group Huayida
Other payable 7986275.11 15000000.00
Commercial Factoring Co. Ltd.Dalian Bingshan Group Huahuida
Other payable 5500000.00 7407941.90
Financial Leasing Co. Ltd.Company under direct/indirect
Other payable 3416919.14 3273305.50
Control of Panasonic Co.Ltd
Dalian State-owned Assets
Other payable Investment and Management Group 434356.75
Co.Ltd.Dalian Jingxue Freezing Equipment
Other payable 70000.00
Co. Ltd.Other payable Sanyo Corporation 63232.42
Bingshan Technology Service
Other payable 14946.50 104625.50
（Dalian） Co. Ltd.
Other payable Sonyo Cold Chain (Dalian)Co.Ltd - 91779.71
Jiangsu Jingxue Insulation
Other payable - 70000.00
Environmental Engineering Co.Ltd
Non-current
Dalian Bingshan Group Huayida
liability due 9107732.23
Commercial Factoring Co. Ltd.within 1 year
Non-current
Dalian Bingshan Group Huahuida
liability due 5898294.48 25140961.04
Financial Leasing Co. Ltd
within 1 year
Long-term Dalian Bingshan Group Huahuida
2649273.5610331937.30
payable Financial Leasing Co. Ltd
Long-term Dalian Bingshan Group Huayida
1557654.53
payable Commercial Factoring Co. Ltd.Short-term Dalian Bingshan Group Huayida
3790267.282976345.47
borrowing Commercial Factoring Co. Ltd.
178Company under direct/indirect
Contract liability 132587.77 313952.83
Control of Panasonic Co.Ltd
Dalian Fuji Bingshan Control
Contract liability 38509.12
System Co. Ltd.Contract liability Sonyo Cold Chain (Dalian)Co.Ltd 15258.81 35605.27
Contract liability Dalian Honjo Chemical Co. Ltd. 10626.23
Bingshan Technology Service
Contract liability - 2337426.58
（Dalian） Co. Ltd.
Linde Hydrogen Fueltech (Dalian)
Contract liability - 2138974.27
Co. Ltd
Other current Company under direct/indirect
12003.2035021.95
liability Control of Panasonic Co.Ltd
Other current Dalian Fuji Bingshan Control
5006.18
liability System Co. Ltd.Other current
Sonyo Cold Chain (Dalian)Co.Ltd 1983.64 4628.68
liability
Other current
Dalian Honjo Chemical Co. Ltd. 1381.41
liability
Other current Linde Hydrogen Fueltech (Dalian)
-319616.84
liability Co. Ltd
Other current Bingshan Technology Service
-303865.45
liability （Dalian） Co. Ltd.Other current Linde Hydrogen Fueltech (Dalian)
--
liability Co. Ltd
Other current Bingshan Technology Service
--
liability （Dalian） Co. Ltd.Dalian Bingshan Group Huahuida
Lease payable - 656980.83
Financial Leasing Co. Ltd
i. Related Party Commitment
None
ii. Others
None
XIII. Share-Based Payment
None
XIV. Contingency & commitment
1. Commitment
None
1792. Contingency
The Company sold water chiller and heat pump to Shangdong Jiechuang Energy
Technology Co.Ltd (“Shandong Jiechuang”) in the form of financial lease. The Company
as a seller singed finance lease contract with Huahuida as both a buyer and a lessor and
Shandong Jiechuang as a lessee. The contract price is 6.998million Yuan. Shandong
Jiechuang had made 10% down payment and remaining 6.2982million Yuan is underlined
the leasing contract amount. In case the lease premium is delayed by the lessee the
Company needs to pay lease premium on behalf of the lessee and be obliged to the buy
back responsibility. Shandong Jiechuang issued an unconditional irrevocable and joint
liability counter guarantee and the Company is the beneficiary. Guarantee scope covers the
full liability because of the sales in the form of financial lease. As at 31 December 2024
the balance of the guarantee obligation of the financial lease is RMB2011900.00 Yuan.The Company sold refrigerating house equipment to Liuyang Zhongjie Technology
Investment Co.Ltd (“Liuyang Zhongjie”) in the form of financial lease. The Company as a
seller singed finance lease contract with Huahuida as both a buyer and a lessor and Liuyang
Zhongjie as a lessee. The contract price is 9.831million Yuan. In case the lease premium is
delayed by the lessee the Company needs to pay lease premium on behalf of the lessee and
be obliged to the buy back responsibility. Liuyang Zhongjie issued an unconditional
irrevocable and joint liability counter guarantee and the Company is the beneficiary.Guarantee scope covers the full liability because of the sales in the form of financial lease.As at 31 December 2024 the balance of the guarantee obligation of the financial lease is
RMB2129000.00 Yuan.The Company sold refrigeration equipment air conditioning and production line equipment
to Shanxi Yiming Food Co. Ltd (‘Shanxi Yiming’) in the form of financial lease. The
Company as a seller singed finance lease contract with Huahuida as both a buyer and a
lessor and Shanxi Yiming as a lessee. The contract price is 28.2311million Yuan. In case
the lease premium is delayed by the lessee the Company needs to pay lease premium on
behalf of the lessee and be obliged to the buy back responsibility. Shareholders Shanxi
Yiming and nature person issued an unconditional irrevocable and joint liability counter
guarantee and the Company is the beneficiary. Guarantee scope covers the full liability
because of the sales in the form of financial lease. As at 31 December 2024 the balance of
the guarantee obligation of the financial lease is RMB 8.135million Yuan.
180Dalian Bingshan-RYOSETSU Quick Freezing Equipment Co.Ltd (‘Bingshan-
RYOSETSU’) the subsidiary of the Company sold refrigeration equipment to Jilin Fuyu
Agricultural Technology Co. Ltd (‘Jinlin Fuyu’) in the form of financial lease. Bingshan-
RYOSETSU as a seller singed finance lease contract with Huahuida as both a buyer and a
lessor and Jinlin Fuyu as a lessee. The contract price is 20.50million Yuan. In case the lease
premium is delayed by the lessee Bingshan- RYOSETSU needs to pay lease premium on
behalf of the lessee and be obliged to the buy back responsibility. Shareholders Jinlin Fuyu
and nature person issued an unconditional irrevocable and joint liability counter guarantee
and Bingshan- RYOSETSU is the beneficiary. Guarantee scope covers the full liability
because of the sales in the form of financial lease. As at 31 December 2024 the balance of
the guarantee obligation of the financial lease is RMB 10.7512million Yuan.Until 31 December 2024 the balance of all guarantee obligation of the financial lease is
RMB 23.0271 million Yuan. There is no situation where the Company needs to undertake
the liability as the lessees’ default.There are no other significant or contingent matters to be disclosed until December 2024
XV. Events after the Balance Sheet Date
1. Unadjusted significant events
None
2. Information about profit distribution
Item Content
Planned profit/ dividend distribution 42160625.35
The 3rd meeting of the 10th generation of board
approved the profit appropriation policy for the
year of 2024 based on 843212507.00
Profit/dividend approved for
numbers of share in total paying out cash
distribution declaration
dividend of 0.5Yuan for every 10 shares
(before tax) and cash dividend of B shares are
paid in Hong Kong dollars.
3. Sales Return
There is no significant sales return after the balance sheet date.
1814. Others
Except the subsequent event disclosed above the Company has no other significant
subsequent event.XVI. Other Significant Events
1. Error correction and effect in previous period
None.
2. Debt Restructuring
None.
3. Asset exchange
(1) The exchange of non-monetary assets
None.
(2) The exchange of other assets
None.
4. Annuity Plan
None.
5. Operation termination
None.
6. Segment Information
The management of the group divided the business into 2 segments based on the geographic
area: Northeast China and Central China. The Northeast is the Company’s general headquarters
and the subsidiaries registered in Dalian. The Central includes Chengdu Bingshan Refrigeration
Engineering Co. Ltd Wuhan New World Refrigeration Industrial Co. Ltd and its subsidiary
Wuhan Lanning Energy Technology Co. Ltd. and Wuhan New World Air-conditioning Refrigeration
Engineering Co. Ltd.
(1) The basis and accounting policies of reporting segments
The internal organization structure management requirements and internal report scheme are
the determination basis for the Company to set the operating segments. The segments are those
satisfied the following requirements.
1). The segment can generate revenue and incur expenses.
1822). The management personnel can regularly evaluate the operation results of segments and
allocate resource assess its performance.
3). The financial situation operation results cash flow and other accounting information of
segments can be acquired.The group confirms the report segments based on the operating segments. The transfer price
among segments is set base on the market price. The assets and related expenses in common use
are allocated to different segments based on their proportion of revenue.
183(2) The financial information of reporting segments：
Items Northeast China Central China Offset Total
1 Operating income 4844889579.60 223444799.45 -537187170.07 4531147208.98
2 Cost 4076891799.35 212571959.31 -525655542.47 3763808216.19
Impairment loss on
assets -19229984.12 -8707129.61 361653.09 -27575460.64
Impairment loss on
credit -17221525.83 -4450358.42 4451281.96 -17220602.29
Depreciation and
amortization 136361622.94 10017634.57 -149150.00 146230107.51
3 Investment
income from associates - - - -
and joint venture
4 Operating
profits(loss) 247351049.26 -15817862.84 -105889883.40 125643303.02
5 Income tax 9975816.20 627028.44 1358478.61 11961323.25
6 Net profit(loss) 237375233.06 -16444891.28 -107248362.01 113681979.77
7 Total assets 10087183612.11 443956681.39 -2902824806.15 7628315487.35
8 Total liabilities 4751720458.28 373083443.78 -685597870.15 4439206031.91
(3) Others
None
7. Other important transactions and matters affect the investor's decision
The group hasn’t had other important transactions and matters affect the investor's decision in
this period.XVII. Notes to the Main Items of the Financial Statements of Parent Company
1841. Accounts receivable
(1) Bad debt provisions under accounting aging analysis method:
Aging Closing Balance Opening Balance
Within 1 year 252493482.65 457075717.70
1-2 years 168666036.29 124339052.45
2-3 years 55975990.70 58073083.27
Over 3 years 148746595.23 109679441.52
3-4 years 38330982.87 49782646.14
4-5 years 55105024.02 2186288.76
Over 5 years 55310588.34 57710506.62
Total 625882104.87 749167294.94
(2) Accounts receivable category
Closing Balance
Item Booking balance Provision Booking value
Amount % Amount %
Bad debt provision
625882104.87100.00158917243.1525.39466964861.72
on group
(1) Accounting age
474142917.6075.76158917243.1533.52315225674.45
as characters
(2) Related party
within
151739187.2724.24--151739187.27
consolidation
scope
Total 625882104.87 100.00 158917243.15 25.39 466964861.72
185(Continued)
Opening Balance
Item Booking balance Provision Booking
Amount % Amount % balance
Bad debt provision
749167294.94100.00136234112.0318.18612933182.91
on group
(1) Accounting age
492240628.8665.71136234112.0327.68356006516.83
as characters
(2) Related party
within
256926666.0834.29--256926666.08
consolidation
scope
Total 749167294.94 100.00 136234112.03 18.18 612933182.91
1861) Bad debt provisions on group basis
Closing Balance
Aging Provision for bad Drawing Proportion
Accounts receivable
debts (%)
Within 1 year 179204272.90 12580139.96 7.02
1-2 years 90216058.77 15102168.24 16.74
2-3 years 55975990.70 17257397.93 30.83
3-4 years 38330982.87 18908673.85 49.33
4-5 years 55105024.02 39758274.83 72.15
Over 5 years 55310588.34 55310588.34 100.00
Total 474142917.60 158917243.15 ——
(3) Bad debt provision
Change during the year
Category Opening balance Closing Balance
Accrued Collected/
Written-off Other
reversed
Bad debt
136234112.0322667304.12--15827.00158917243.15
provision
Total 136234112.03 22667304.12 - - 15827.00 158917243.15
(4) Top 5 receivable and contract assets
Based on closing balance ranking sum of the top five significant receivable and contract asset are
267902529.92Yuan representing 42.80% of total receivables and contract asset at the year end
42061046.61Yuan bad debt provision is provided respectively.
2. Other Receivables
Item Closing Balance Opening Balance
Dividend receivable 100000000.00 110000000.00
Other receivable 28957016.22 28883665.74
Total 128957016.22 138883665.74
1872.1 Dividend receivable
Item Closing Balance Opening Balance
Sonyo Compressor (Dalian)Co.Ltd. 100000000.00 110000000.00
Total 100000000.00 110000000.00
2.2 Other receivable
(1) The category of other receivables
Items Closing Balance Opening Balance
Receivables and payables 20032160.00 20260866.63
Deposits 7181055.11 8478407.11
Petty cash 904835.68 580451.46
Others 1306589.74 -
Total 29424640.53 29319725.20
(2) Other receivable listed by account aging
Aging Closing Balance Opening Balance
Within 1 year 4758618.79 3049940.86
1-2 years 1177004.63 3316384.23
2-3 years 1805617.00 1315000.00
Over 3 years 21683400.11 21638400.11
3-4 years 115000.00 20210000.00
4-5 years 20210000.00 229835.11
Over 5 years 1358400.11 1198565.00
Total 29424640.53 29319725.20
(3) Other receivable classified by provision method
Closing Balance
Item Booking balance Provision Booking value
Amount % Amount %
Bad debt provision
-----
on individual
Bad debt provision
29424640.53100.00467624.311.5928957016.22
on group
(1) Accounting age
9392480.5331.92467624.314.988924856.22
as characters
(2) Related party
within 20032160.00 68.08 - - 20032160.00
consolidation
188scope
Total 29424640.53 100.00 467624.31 1.59 28957016.22
(continued)
Opening Balance
Item Booking balance Provision Booking value
Amount % Amount %
Bad debt provision
-----
on individual
Bad debt provision
29319725.20100.00436059.461.49
on group 28883665.74
(3) Accounting age
9319725.2031.79436059.464.68
as characters 8883665.74
(4) Related party
within
20000000.0068.21--20000000.00
consolidation
scope
Total 29319725.20 100.00 436059.46 1.49 28883665.74
1) Bad debt provisions on group basis
Closing Balance
Aging Provision for bad Drawing Proportion
Accounts receivable
debts (%)
Within 1 year 4726458.79 172988.39 3.66
1-2 years 1177004.63 43078.37 3.66
2-3 years 1805617.00 66085.58 3.66
3-4 years 115000.00 4209.00 3.66
4-5 years 210000.00 7686.00 3.66
Over 5 years 1358400.11 173576.97 12.78
Total 9392480.53 467624.31 ——
2) The bad debt provision of other receivable
1st stage 2nd stage 3rd stage
Expected Expected credit Expected credit loss
bad debt
credit loss loss within the within the whole Total
provision
within 12 whole period(no period(impairment
months impairment) incurred)
Opening balance 287321.36 - 148738.10 436059.46
Opening balance
————
during the year
189--transfer to the
2nd stage
--transfer to the
3rd stage
--reverse to the
2nd stage
----reverse to the
1st stage
Accrued 51737.95 51737.95
Reverse 20173.10 20173.10
Cancelation
Written off
Other movement
Closing balance 339059.31 128 565.00. 467624.31
(4) Bad debt provision details
Change during the year
Category Opening balance Accrued Collected/ Closing Balance
Written-off Others
reversed
Bad debt provision 436059.46 51737.95 20173.10 - - 467624.31
Total 436059.46 51737.95 20173.10 - - 467624.31
(5) Other receivables from the top 5 debtors
Closing
Closing % of
Name Category Aging Balance of
Balance the total
Provision
Wuhan New World
Refrigeration Industrial Receivable 20000000.00 4-5 years 67.97 -
Co. Ltd
Deta Town Gas Other deposit 1100000.00 Over5 years 3.74 40260.00
Xinjiang Jinghui New
Bid deposit 800000.00 1-2 years 2.72 29280.00
Materials Co. Ltd
Inner Mongolia Daquan
Bid deposit 800000.00 2-3 years 2.72 29280.00
New Energy Co. Ltd
Dalian Yongsheng
Hardware and Electrical Others 680400.00 Within 1 year 2.31 24902.64
Co. Ltd
Total — 23380400.00 — 79.46 123722.64
1903. Long-term equity investments
(1) Category of long-term equity investments
Closing Balance Opening Balance
Item
Closing Balance Provision Book Value Opening Balance Provision Book Value
Investment of subsidiaries 2432830861.29 - 2432830861.29 2416830861.29 - 2416830861.29
Investment of affiliates
473699761.22-473699761.22513550283.58-513550283.58
and JV
Total 2906530622.51 - 2906530622.51 2930381144.87 - 2930381144.87
(2) Investments of subsidiaries
Provision for Increase/Decrease
Provision for
impairment
Investee Beginning balance Provision for Ending balance impairment
at beginning of Increased Decreased Others
impairment at year end
year
Dalian Bingshan Group Engineering Co.Ltd 293749675.77 - - - - - 293749675.77 -
Dalian Bingshan Group Sales Co. Ltd 20722428.15 - - - - - 20722428.15 -
Dalian Bingshan Air-Conditioning
Equipment Co. Ltd 53272185.00 - 16000000.00 - - - 69272185.00 -
Dalian Bingshan Guardian Automation
Co. Ltd 50638361.52 - - - - - 50638361.52 -
Dalian Bingshan-RYOSETSU Quick
Freezing Equipment Co. Ltd 59356051.19 - - - - - 59356051.19 -
Dalian Universe Thermal Technology
Co.Ltd 48287589.78 - - - - - 48287589.78 -
Wuhan New World Refrigeration
Industrial Co. Ltd 184674910.81 - - - - - 184674910.81 -
Dalian Bingshan Engineering & Trading
Co. Ltd 71537064.86 - - - - - 71537064.86 -
191Sonyo Compressor (Dalian)Co.Ltd 1380455603.23 - - - - - 1380455603.23 -
Sonyo Refrigeration System (Dalian) Co.Ltd 108851490.98 - - - - - 108851490.98 -
Sonyo Refrigeration (Dalian) Co. Ltd 145285500.00 - - - - - 145285500.00 -
Total 2416830861.29 - 16000000.00 - - - 2432830861.29 -
(3) Joint ventures& affiliated companies
Provision
for
Increase/Decrease Ending balance
impairment
Beginning at year end
Investee
balance Provision for Gains and losses Adjustment
Changes Cash bonus or Provision
impairment recognized under of other
Increased Decreased of other profits for Others
at beginning the equity comprehensi
equity announced impairment
of year method ve income
1. Affiliated
company
Dalian Honjo
8160024.36---302081.37-----8462105.73-
Chemical Co. Ltd
Keinin-Grand
Ocean Thermal
57579975.00 - - - -4257688.27 - - - - - 53322286.73 Technology -
(Dalian) Co. Ltd
Dalian Fuji
Bingshan Vending 67610418.09 - - - -514319.31 - - - - - 67096098.78 -
Machine Co. Ltd
MHI Bingshan
Refrigeration 16543655.54 - - - 202819.43 - - - - - 16746474.97 -
(Dalian) Co. Ltd.
Dalian Fuji
Bingshan Vending
Machine Sales Co. - - - - - - - - - -
--
Ltd
Jiangsu Jingxue
Insulation 144354903.91 - - - 4400840.64 - - 3220344.00 - - 145535400.55 -
Technology Co.Ltd
Bingshan Metal
30759188.94135904723.22
Technical Service 173250850.13 - - 34931610.00 28344672.03 - - - - -
192（Dalian） Co.
Ltd.Dalian Bingshan
Group Huahuida
46050456.55 - - - 1218624.64 - - 636409.95 - - 46632671.24 Financial Leasing -
Co. Ltd
Total 513550283.58 - - 34931610.00 29697030.53 - 34615942.89 - - 473788407.15 -
1934. Operating revenue and cost
Item Current year Last year
Revenue Cost Revenue Cost
Revenue from main
659943953.87583283354.161075630556.46894335541.56
operation
Revenue from other
36515698.2021115829.8771936541.2455064727.51
operation
Total 696459652.07 604399184.03 1147567097.70 949400269.07
5. Investment income
Items Current year Last year
Long-term equity investment gain under cost method 106062894.23 137049291.85
Long-term equity investment gain under equity method 29697030.53 -5506787.08
Gain from holding of other non-current financial assets 5400504.40 5782304.24
Gain from disposal of other non-current financial assets 33277105.94 -
Discounting fees for bank acceptance note -159492.41 -159560.15
Gain on debt restructuring -130005.76 -
Total 174148036.93 137165248.86
6. Others
None
XVIII. Supplementary Information to the Financial Statements
1. Non-operating profit or loss
Items Current year Notes
Gain or loss from disposal of non-current assets (including written off part of the
-758256.80
impairment provision)
Government grants recorded into profit or loss 19490628.71
The gain or loss of fair value changes arising from the holding of financial assets and
financial liabilities by non-financial enterprises and the loss or profit arising from the 60482638.34
disposal of them apart from the effective hedging for the normal business operation.Expenses for using funds from non-financial institution recognized in current
-
profit/loss
Profits/loss from investments or management of assets entrusted by others -
Investment income on entrusted loan -
Assets impairment provision accrued due to force majeure e.g.: suffering natural
-
disasters
Reversal of impairment provision of accounts receivable separately tested for 4324906.64
194impairment
Gains from acquisition of subsidiary or associates when initial cost is less than the fair
-
value of identifiable net asset of invested company
Net gain/loss of subsidiary from combination under same control between the
-
beginning of year and consolidation date.Profits/loss from non-monetary assets exchange -
Profit or loss from debts restructuring 2154769.80
One-off expenses incurred for discontinued operation activities such as the expense of
-6774379.53
relocating employees
Effects of gain/loss from one-off adjustments of gain/loss based on laws and
-
regulations of taxation and accounting.Share payment arising from the cancellation or modification of share incentive plans -
For cash settled share payment gains and losses arising from changes in the fair value
-
of employee payable after the exercise date
The profits/gains from changes of fair value for investment property subsequently
-
measured at fair value model
Gain/loss on excessive part from the transaction where the trading price is obviously
-
unfair.Gains/ loss from contingencies beyond the normal business -402140.00
Custodian fees obtained from entrusted operations -
Non-operating revenue and expense besides the above items 8152168.63
Other profit or loss -
Subtotal 86670335.79
Effect on income tax 10575731.10
Attributable to minority shareholders’ equity (after tax) 27843.47
Total 76066761.22
2. Return on equity and earnings per share
Weighted average Earnings per share (EPS)
Profit of report period return on net assets Basic Diluted EPS
(%) EPS
Net profit attributable to shareholders of parent company 3.57 0.13 0.13
Net profit after deducting non-recurring gains and losses
1.110.040.04
attributable to shareholders of parent company
Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd
April 24 2025
195
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