Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Bingshan Refrigeration & Heat Transfer
Technologies Co. Ltd.2025 Semiannual Report
August 2025
1Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Section 1 Important Notice Table of Contents and Definitions
The directors and the Board of Directors the supervisors and the Supervisory
Board and Senior staff members of 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.All 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
" Management discussion and analysis" in Section 3 of this Semiannual
Report describes major risks 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 Company plans to distribute no cash dividends no bonus shares and
convert no reserve fund into capital stock.Chairman of the Board of Directors of the Company Mr. Ji Zhijian Financial
Majordomo Mrs. Wang Jinxiu and the head of Accounting Department Mrs.Wu Bin hereby confirm that the financial report of the semi-annual report is
true and complete.This report is written respectively in Chinese and in English. In the event of
any discrepancy between the two above-mentioned versions the Chinese
version shall prevail.
2Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
CONTENTS
Section 1 Important Notice Table of Contents and D....2
Section 2 About the Company and Main Financia Indi....6
Section 3 Management Discussion and Analysis..........8
Section 4 Corporate Governance.......................16
Section 5 Important items............................17
Section 6 Change in Share Capital and Shareholders...19
Section 7 Bond Related Information ..................21
Section 8 Financial Report ..........................22
3Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Reference Documents
1. The accounting statements bearing the signatures and seals of the legal representative the financial majordomo
and the accountants in charge.
2. The original copies of all the Company's documents and the original copies of the bulletins published on the
newspapers designated by the China Securities Regulatory Commission in the report period.
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
4Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Definitions
Defined item Stands for Meaning
Reporting period Stands for From Jan. 1 2025 to Jun. 30 2025
The Company this Company Stands for Bingshan Refrigeration & Heat Transfer Technologies Co.Ltd.Bingshan Engineering Company Stands for Dalian Bingshan Group Engineering Co. Ltd.one of the subsidiaries of the Company where the Company holds 100% of its shares.Sonyo Compressor Stands for Sonyo Compressor (Dalian) Co. Ltd. Formerly Panasonic Appliances Compressor (Dalian) Co. Ltd. one of the subsidiaries of the Company where the Company holds100% of its shares.Sonyo Refrigeration Stands for Sonyo Refrigeration (Dalian) Co. Ltd. Formerly Panasonic Refrigeration (Dalian) Co. Ltd.one of the subsidiary of the Company where the Company holds 100% of its shares.Wuxin Refrigeration Stands for Wuhan New World Refrigeration Industry Co. Ltd. one of the subsidiaries of the Company where the Company holds 100% of its shares.Bingshan Guardian Dalian Bingshan Guardian Automation Co. Ltd. one of the subsidiaries of the Company where the Company holds 100% of its shares.Sonyo Refrigeration System (Dalian) Co. Ltd. Formerly Panasonic Appliances Refrigeration
Sonyo Refrigeration System Stands for System (Dalian) Co. Ltd. one of the subsidiary of the Company where the Company holds
100% of its shares.
5Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Section 2 About the Company and Main Financial Indicators
I. 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
Short form of legal name 冰山冷热
Bingshan Refrigeration & Heat Transfer Technologies Co.Legal English name
Ltd.Abbreviation of legal English name Bingshan
Legal representative Ji Zhijian
II. Contact persons and information
Secretary of the Board of Directors Authorized representative for securities affairs
Name Song Wenbao Du Yu
Address No.106 Liaohe East Road Dalian Economic and No.106 Liaohe East Road Dalian Economic and Technological Development Zone Technological Development Zone
Tel. 0411-87968130 0411-87968822
Fax 0411-87968125 0411-87968125
E-mail 000530@bingshan.com 000530@bingshan.com
III. Other situations
1. Contact of company
If the registered address office address and zip code website email box of the Company had any change in the
report period
□ Applicable √ Not applicable
2. Information disclosure and place of preparation
If the information disclosure and the place of preparation had any change in the report period
□ Applicable √ Not applicable
The name of newspaper for information disclosure selected by the Company the address of the website designated
by China Securities Regulatory Commission for carrying semi-annual report the place where the semi-annual report
of the Company is prepared had no change in the report period. Refer to the Annual Report for 2023 for details.IV. 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
6Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Unit: RMB Yuan
2025.1-6 2024.1-6 Increase/decrease compared with
the same period of last year
Operating revenue 2401232729.35 2463277349.70 -2.52%
Net profit attributable to shareholders of listed companies 79541057.88 78529977.92 1.29%
Net profit belonging to the shareholders of listed companies 74162602.88 67346978.95 10.12%
after the deduction of non-recurring profit and loss
Net cash flow from operating activities -1032514.46 -32585984.75 96.83%
Basic earnings per share 0.09 0.09 0.00%
Diluted earnings per share 0.09 0.09 0.00%
Weighted average return on net asset yield 2.52% 2.55% Decrease 0.03 percentage points
2025.6.30 2024.12.31 Increase/decrease compared with
2024.12.31
Total assets 7453532411.01 7628315487.35 -2.29%
Owner's equity attributable to shareholders of listed
3171015304.523132102966.641.24%
companies
V.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.VI. Non-recurring profits and losses and their amounts
item Amount
Disposal gains and losses of non-current asset 119395.35
Government subsidies included in current profit or loss 4637976.92
When the investment cost of a subsidiary associate or joint venture is less than that of the
investment an enterprise shall enjoy the income generated by the fair value of the identifiable net
assets of the invested entity
Allowance for impairment reversal of receivables tested separately for impairment 654000.03
Gains and losses on debt restructuring -1358198.53
The one-time expenses incurred by the enterprise due to the discontinuation of related business
-2583822.78
activities
Other non-operating revenue or expense 4293412.53
Influence on income tax 457453.96
Influence on minority shareholders -73145.44
Total 5378455.00
7Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Section 3 Management discussion and analysis
I. 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 quick freezer 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 the first half of 2025 rigid demands such as food safety energy security consumption upgrading energy
conservation and carbon reduction and domestic substitution 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 continuously
cultivating advantageous segmented markets such as petrochemicals cold chain logistics beer and dairy
products ship refrigeration ice and snow venues and environmental simulation. It vigorously expands new
businesses such as energy storage thermal management and CCUS actively seizes the domestic market and
strengthens the development of international markets.
1. 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 won bids for multiple high
standard projects such as CNOOC Shell PetroChina Jilin Petrochemical and Sinopec Maoming Petrochemical.The industry influence of the Iceberg 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 multiple key projects including the Guangzhou East Rail
Intermodal Hub Phase I Project the Shenzhen China Railway Comprehensive Cold Chain Logistics Project
and the Shunde Prefabricated Vegetable Project.
3. Air conditioning and environment business
8Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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
its air source heat pump business.
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
chain 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 BYD Intelligent New
Energy Vehicle Comprehensive Testing Field Project.
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.II. Analysis of core competence
The Company focuses on main business of cold and heat; 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 cold-heat 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
9Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
offer high quality and high value-added services more initiative and faster for clients from around the city.Following the technical route of cold and heat balance the Company has independently developed a series of
energy-saving environment-friendly efficient and intelligent cold and heat technologies and products and actively
fulfilled the 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.III. Analysis of main business
In the first half of 2025 the Company focused on the hot and cold business deeply cultivated segmented
markets solidly improved core competitiveness effectively expanded industry influence and continuously
strengthened its main business. In the first half of 2025 the Company achieved an operating revenue of
2401.23 million yuan an decrease of 2.52% year-on-year; The net profit attributable to the shareholders of
the listed company was 79.54 million yuan an increase of 1.29% year-on-year.During the reporting period the Company continued to strive and develop steadily. The falling film opening
screw chiller unit has been tested in practical applications and is now being mass-produced for the market. The
second phase of the photovoltaic project on the roof of the new factory area has been officially connected to
the grid for power generation taking a crucial step towards the construction of a zero carbon factory. The
carbon dioxide transcritical cold and heat integrated coupling unit was selected as an "innovative product" at
the 2025 China Refrigeration Exhibition and the OCCS liquefaction unit won the "gold medal product" at the
2025 China Refrigeration Exhibition. The -95 ℃ low-temperature ethylene cascade unit has been selected
for the "2024 China Refrigeration Society Energy Conservation Carbon Reduction and Environmental
Protection Product Catalog".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 actively serving high-end customers
winning bids for multiple high standard projects such as CNOOC Shell project PetroChina Jilin Petrochemical
project and Sinopec Maoming Petrochemical project. In the field of engineering we have undertaken multiple
key projects including the first phase of the Guangzhou East Rail Intermodal Hub project the comprehensive
cold chain logistics project of Shenzhen State Railway the BYD Intelligent New Energy Vehicle
Comprehensive Testing Field project and the Shunde Prefabricated Vegetable project. In the field of energy
there has been a significant increase in orders for energy storage thermal management projects and CCUS
projects.During the reporting period the subsidiary of the Company Wuhan New World Refrigeration continuously
optimized its products and solutions. The development of oil-free compressors is progressing in an orderly
manner and integrated compressor projects are efficiently coordinated. Focusing on the advantages of natural
gas pressure energy generation mining explosion-proof refrigeration equipment steam compression process
gas compression and other segmented markets we will solidly explore with the help of professional groups.
10Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
During the reporting period the subsidiary of the Company Bingshan Jiade focused on energy-saving and
intelligent control of cold and hot systems and innovated and iterated development. The large-scale
implementation of energy storage products and the two-way breakthrough of industrial energy-saving
technology standardization continue to strengthen the leading advantage. Energy storage customers are
expanding in an orderly manner and energy storage orders are growing rapidly. The standardized energy-
saving solution of "permanent magnet motor+universal frequency conversion+MPC algorithm" has been
launched and the customer application has started strongly.During the reporting period the subsidiary of the Company Sonyo Compressor achieved independent
innovation and qualitative growth. After 218 days of hard work the large-scale vortex intelligent workshop
has been officially completed and launched. Actively innovate and upgrade to assist in the cooling
transformation of data centers. Accelerate the development of overseas markets with the help of China
Customs AEO advanced certification. The 160cc high-efficiency variable frequency scroll compressor for
energy storage has been selected as an "innovative product" at the 2025 China Refrigeration Exhibition.During the reporting period the subsidiary of the Company Sonyo Refrigeration focused on industrial energy
conservation and strengthened innovative growth. Winning multiple key projects including CNOOC Shell
Huizhou Phase III Ethylene Project and MCC Jiaonai 2025 Lithium Bromide Unit Centralized Procurement.The intelligent hybrid air source heat pump unit has been selected as an "innovative product" at the 2025 China
Refrigeration Exhibition. The marine lithium bromide absorption chiller/heater unit has been selected for the
"2024 China Refrigeration Society Energy Conservation Carbon Reduction and Environmental Protection
Product Catalog".During the reporting period the subsidiary of the Company Sonyo Refrigerator focused on product
development and focused on the dual carbon and energy storage fields. The latest research and development
of fluorine pump compressor composite integrated energy storage units as well as orders for high-efficiency
heat management heat exchange units for energy storage batteries continue to grow. The carbon dioxide
transcritical refrigeration system is widely used in commercial applications and multiple projects of the sixth
generation transcritical full injection refrigeration unit have been successfully delivered.Main financial data variations as compared to the same period of last year
Monetary unit: RMB Yuan
Same period of last Increase or decrease from the
Report period Reason for variation
year same period of last year
Operating revenue 2401232729.35 2463277349.70 -2.52%
Operating cost 2009227455.97 2057904806.74 -2.37%
Selling and distribution expenses 106756811.87 110159991.36 -3.09%
Administrative expenses 122649899.56 121498382.07 0.95%
Financial expenses 5470595.13 12342559.76 -55.68%
Income tax 11443201.02 11651682.59 -1.79%
R&D expenses 69166325.91 78544862.47 -11.94%
Net cash flow coming from
-1032514.46-32585984.75-
operating activities
11Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Net cash flow coming from
-58142156.932166996.85-
investment activities
Net cash flow coming from fund-
-116720324.16-92008608.30-26.86%
raising activities
Net increase in cash and cash
-172142356.05-120146306.61-43.28%
equivalents
The net cash flow generated from operating activities has significantly increased year-on-year mainly due to an
increase in sales orders and improved collection of payments;
The net cash flow generated from investment activities decreased significantly year-on-year mainly due to the
disposal of machinery and equipment by Sonyo Compressor in the same period last year;
The net cash flow generated from financing activities has significantly decreased year-on-year mainly due to the
reduction in bank borrowings obtained in the current period.Sales income and costs
Report period Same period of last year Increase or decrease
Proportion to the Proportion to the from the same period
Amount Amount
Sales costs Sales costs of last year
Total sales income 2401232729.35 100% 2463277349.70 100% -2.52%
By industry
Refrigeration and
air-conditioning 2362230695.01 98.38% 2386331445.01 96.88% -1.01%
equipment
Others 39002034.34 1.62% 76945904.69 3.12% -49.31%
By product
Industrial products 1603810566.48 66.79% 1716685325.75 69.69% -6.58%
Installation project 736214313.56 30.66% 659660080.04 26.78% 11.61%
Other products and
services 61207849.31 2.55% 86931943.91 3.53% -29.59%
Domestic sales 2044986306.10 85.16% 2111543473.72 85.72% -3.15%
Foreign sales 356246423.25 14.84% 351733875.98 14.28% 1.28%
Main business structure
Monetary unit: RMB yuan
Increase/decrease
of operating Increase/decrease Gross of operating costs Increase/decrease of gross profit Operating revenue Operating costs profit revenues from the from the same from the same period of last same period of
last year period of last year
year
By industry
Refrigeration and
air-conditioning 2362230695.01 1993534916.62 15.61% -1.02% -1.55% Increase 0.44 percentage points
By product
Industrial products 1603810566.48 1287763516.82 19.71% -7.04% -8.80% Increase1.32 percentage points
Installation project 736214313.56 687979569.56 6.55% 10.40% 10.68% Decrease0.29 percentage points
Other products and
services 22205814.97 17791830.24 19.88% 55.03% 50.48% Increase 8.10 percentage points
By region
Domestic sales 2005984271.76 1712623729.22 14.62% -1.43% -2.21% Increase0.65 percentage points
Foreign sales 356246423.25 280911187.40 21.15% 1.27% 2.47% Decrease0.96 percentage points
12Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
IV. Analysis of the non-main business
□Applicable√Not applicable
V. Analysis of assets & liabilities
1. Remarkable change in assets
Monetary unit: RMB yuan
30-6-202531-12-2024
Amount Proportion to Amount Proportion to Proportion increase/decrease.the total assets the total assets
Monetary funds 860428396.51 11.53% 1042143744.67 13.66% Decrease2.13 percentage points
Accounts receivable 1752845873.73 23.50% 1492234348.90 19.56% Increase 3.94 percentage points
Contract assets 188053458.00 2.52% 184760940.32 2.42% Increase 0.10 percentage points
Inventories 1245158273.82 16.69% 1393653788.81 18.27% Decrease 1.58 percentage points
Investment property 139837714.81 1.87% 117931720.24 1.55% Increase 0.32 percentage points
Long-term equity 502740106.90 6.74% 481973415.36 6.32%
investment Increase 0.42 percentage points
Fixed assets 1201658993.95 16.11% 1211794069.63 15.89% Increase 0.22 percentage points
Construction in progress 56535562.26 0.76% 86221660.80 1.13% Decrease 0.37 percentage points
Right of use assets 19682311.57 0.26% 23318732.46 0.31% Decrease 0.05 percentage points
Short-term loans 150038710.69 2.01% 167283407.26 2.19% Decrease 0.18 percentage points
Contract liabilities 477594504.16 6.40% 645711808.53 8.46% Decrease 2.06 percentage point
Long-term loans 422950000.00 5.67% 547346541.25 7.18% Decrease 1.51 percentage points
Lease liabilities 13540801.22 0.18% 19071845.78 0.25% Decrease 0.07 percentage points
2. The main overseas assets
□ Applicable √ Not applicable
3. Assets & liabilities which are measured by fair value
√ Applicable □ Not applicable
The beginning number is 1683852.59 yuan for other non-current financial assets measured by fair value. There
was no change during the reporting period and the final number is 1683852.59 yuan.
3. Restrictions on asset rights at the end of reporting period
√ Applicable □ Not applicable
Items 2025.6.30 Reasons
Monetary fund 30773360.66 Guarantee money; Frozen funds in bank accounts
Notes Receivable 7680962.04 Pledge
Fixed assets 96530705.63 Pledge
Intangible assets 8266573.44 Pledge
Financing of receivables 72147362.65 Pledge
investment property 39307513.52 Pledge
VI. Analysis of investments
1.The overall situation
√ Applicable □ Not applicable
Investment in the report period (yuan) Investment in the same period of last year (yuan) Amount of variation
58382614.6133848073.6972.48%
13Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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
(2) Derivative investment
□Applicable √ Not applicable
During the reporting period the Company does not exist derivative investment.VII. The material assets and equity sale
1. The material assets sale
□Applicable √Not applicable
2. The material equity sale
□Applicable √Not applicable
VIII. Analysis of major subsidiary companies and mutual shareholding companies
√ Applicable □ Not applicable
Unit: ten thousand yuan (except for registered capital)
operating
Company name Type The main business registered capital total assets net assets Net profit
income
mutual
Sonyo Compressor shareholding Scroll Compressor 442396700 yuan 172728 124893 70195 5721
company
Pipe system connectors
mutual high-speed rail connectors
Bingshan Metal
shareholding hydraulic valve bodies USD 18.0645 million 31905 26587 22305 2784
Technology
company automotive engine parts
etc.Subsidiary companies obtained or disposed in the reporting period
√ Applicable □ Not applicable
The scope of consolidation at the end of the reporting period increased by one compared to the beginning of the
year which is Dalian Bingshan Engineering & Trading (Hong Kong) Co. Ltd.IX. The structured corporate bodies which the Company controlled
□Applicable √Not applicable
X. Main risks the company faces and response measures
(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: gradually increase the proportion of self product revenue strictly implement the project
management system and further strengthen the management of accounts receivable; enhance quality of contract
14Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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.
15Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Section 4 Corporate governance
I. Changes of directors supervisors senior managers of the Company
□Applicable √ Not applicable
II. Profit distribution and dividend payment
□ Applicable √ Not applicable
III．The implementation and effect of equity incentive
□ Applicable √ Not applicable
IV．Major environmental issues
Whether the Company and its major subsidiaries are included in the list of enterprises that are required to disclose
environmental information in accordance with the law
√Yes □ No
Company Name Query index
Wuhan New World Refrigeration Industry Co. Ltd http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/index
https://sthj.deing.cn:8180/Public/Enter/f63ea986-6c8f-4618-8a53-
Sonyo Compressor (Dalian) Co. Ltd.b99092300b69/Annual/654382797975557
V．Social responsibilities
In the first half of 2025 the Company continued to consolidate and expand the achievements of poverty alleviation
and rural revitalization. It organized volunteers to visit the Bingshan Hope School in Yishili Pu Sub-district Jinzhou
District many times to provide love and assistance to students in need. It also delivered heating equipment cotton-
padded clothes and shoes rice flour and oil and other daily necessities to the families of students in need achieving
good results and social responses.
16Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Section 5 Important items
I. Commitments made by the actual controller shareholders related parties
purchasers the company and other relevant parties that have completed their
performance during the reporting period and have not completed their performance
as of the end of the reporting period
□ Applicable √ Not applicable
II. Non-operation capital occupation by holding shareholders and their related
parties in the listed company
□ Applicable √ Not applicable
III. Foreign guarantee in violation of regulations
□ Applicable √ Not applicable
IV. Engagement and dismissal of the accounting firm
□ Applicable √ Not applicable
V. Explain to the “non standard audit report” of this reporting period from the
board of directors board of supervisors of the Company
□Applicable √Not applicable
VI. Explain to the “non standard audit report” last year from the board of directors
of the Company
□Applicable √Not applicable
VII. Bankruptcy restructuring related matters
□ Applicable √ Not applicable
VIII. Major lawsuit issues
□ Applicable √ Not applicable
The Company had no major lawsuit issues in the reporting period.IX. Punishment and rectification
□ Applicable √ Not applicable
X. 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.XI. Important associated transactions
1. Important associated transactions
In the reporting period the total amount of normal associated transactions between the Company and
associated parties was 463470 thousand yuan accounting for 47.63% of the budgeted amount for
the year 2025. This included 140130 thousand yuan accounting for 44.77% of the budgeted amount
for the year 2025 for purchasing supporting products for package projects from associated parties
and 323340 thousand yuan accounting for48.99% of the budgeted amount for the year 2024 from
selling supporting parts and components to associated parties.
2.Associated transactions related to purchases or sales of assets
□ Applicable √ Not applicable
3.Important associated transactions with joint external investments
□ Applicable √ Not applicable
4.Current associated rights of credit and liabilities
□ Applicable √ Not applicable
5. Current associated rights of credit and liabilities with related financial companies
or financial companies that the company holds
□ Applicable √ Not applicable
6. Other associated transactions
√ Applicable □ Not applicable
In order to solve the problems left over from history ensure the integration of real estate and reduce
business risks the Company's subsidiary Sonyo Compressor (Dalian) Co. Ltd. ("Sonyo Compressor
17Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
") participated in the auction of the land use right of the state-owned transferred land after the approval
of the fourth board meeting of the tenth session of the Company. At present Sonyo Compressor has
submitted an application for delisting and the matter is progressing normally.XII．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 Company signed rental contract with MHI Bingshan Refrigeration (Dalian) Co. Ltd. and rent #
6 workshop building located on No. 106 Liaohe East Rd Dalian Economic and Technology
Development Zone to MHI Bingshan Refrigeration (Dalian) Co. Ltd. The rental area is 15259.04
square meters and the rental term till 16th July 2029. The annual rent fee for the current reporting
period is RMB 1.9 million Yuan.The Company signed rental contract with Dalian Bingshan Wisdom Park Co. Ltd. and rent out the
whole land and house of the Company’s old plant locating at No. 888 Southwest Road Shahekou
District Dalian to Dalian Bingshan Wisdom Park Co. Ltd. with rental land area of 167165.61 square
meters and housing area of 105652.43 square meters. The lease term is from April 1 2017 to
December 31 2036. The annual rent fee for the current reporting period is RMB 4.51 million Yuan.
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 provided guarantees for its client Shandong Jiechuang Energy Technology Co. Ltd.Shaanxi Yiming Food Co. Ltd. and Jilin Fuyu Agricultural Technology Co. Ltd. based on financing
leasing business which lasted until the reporting period. The projects isare currently being fulfilled
normally and the guaranteed shareholders and relevant natural persons have provided the Company
with a full amount of joint and several liability guarantee and counter guarantee. The overall risk of
the Company's guarantee is controllable.The above guarantee matters have been reviewed by the board
of directors and are being fulfilled normally.
3.Entrusted Financial Management
□ Applicable √ Not applicable
4. Major contract of daily operation
□ Applicable √ Not applicable
5. Other important contracts
□Applicable √Not applicable
XIII. Description of other important matters
□Applicable √Not applicable
XV. Major matters of the company's subsidiaries
□Applicable √Not applicable
18Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Section 6 Change in Share Capital and Shareholders'
Information
I. Change in share capital
1. Change in share capital
Shares Shares
items （before change） Changes （after change）
number proportion number proportion
I. Non-circulating share capital with restricted
trade conditions 1673662 0.20% -2618 1671044 0.20%
Other domestic shares 1673662 0.20% -2618 1671044 0.20%
II. Circulating share capital 841538845 99.80% 2618 841541463 99.80%
1. Domestically listed ordinary shares 600038845 71.16% 2618 600041463 71.16%
2. Domestically listed foreign shares 241500000 28.64% 0 241500000 28.64%
III. Total shares 843212507 100.00% 0 843212507 100.00%
The reason for the Change in share capital
□ Applicable √ Not applicable
Approval of changes in shares
□ Applicable √ Not applicable
The influence of change in share capital on the recent year and recent issue for basic earnings per share
diluted earnings per share and net assets per share.□ Applicable √ Not applicable
2. The restricted shares changes
□ Applicable √ Not applicable
II. Securities issuance and listing
1. Securities issuance in the report period
□ Applicable √ Not applicable
III. Shareholders and actual controller
1.Number of shareholders and their shareholding
Total number of shareholders in the reporting 67572 Total number of shareholders as of the last month period before disclosure of the annual report 0
Shareholding of top ten shareholders
Number of
Number of
pledged
shares
Name Nature Proportion Total number shares or
with sale
shares
restriction
frozen
Dalian Bingshan Group Co. Ltd. Domestic non-state-owned legal person 20.27% 170916934.00 0 0
Sanyo Electric Co. Ltd. Overseas legal person 8.72% 73503150.00 0 0
Zou Changling Domestic natural person 0.81% 6830000.00 0 0
Lin Zhenming Foreign natural person 0.80% 6710000.00 0 0
Xue Hong Domestic natural person 0.43% 3660000.00 0 0
Chen Niansheng Domestic natural person 0.39% 3249000.00 0 0
Shen Kemin Domestic natural person 0.37% 3115800.00 0 0
Zhang Lianyun Domestic natural person 0.28% 2331500.00 0 0
Chen Naisheng Domestic natural person 0.27% 2311330.00 0 0
Jiang Wenliang Domestic natural person 0.25% 2080000.00 0 0
Shareholding of top ten shareholders without sale restriction
19Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Number of shares without
Name Type of shares
sale restriction
Dalian Bingshan Group Co. Ltd. 170916934.00 RMB denominated ordinary shares
Sanyo Electric Co. Ltd. 73503150.00 Domestically listed foreign shares
Zou Changling 6830000.00 RMB denominated ordinary shares
Lin Zhenming 6710000.00 Domestically listed foreign shares
Xue Hong 3660000.00 Domestically listed foreign shares
Chen Niansheng 3249000.00 RMB denominated ordinary shares
Shen Kemin 3115800.00 RMB denominated ordinary shares
Zhang Lianyun 2331500.00 RMB denominated ordinary shares
Chen Naisheng 2311330.00 RMB denominated ordinary shares
Jiang Wenliang 2080000.00 RMB denominated ordinary shares
Dalian Bingshan Group Co. Ltd. had the association relationship
Notes to the associated relationship and uniform actions of the with Sanyo Electric Co. Ltd. among the above shareholders. Sanyo
above shareholders Electric Co. Ltd. holds 26.6% of Dalian Bingshan Group Co.Ltd.'s equity.At the end of the report period the total number of shareholders of the Company was 67572 including
60416A-share shareholders and 7156 B-share shareholders.
If the Company shareholders had any agreed repurchase transaction in the report period
□ Yes √ No
IV. Changes in shareholding of directors supervisors and senior managers
□ Applicable √ Not applicable
V. Variation in controlling shareholders or actual controllers
Variation in controlling shareholders in the report period
□ Applicable √ Not applicable
There were no changes in the controlling shareholder in the reporting period.Variation in actual controllers in the report period
□ Applicable √ Not applicable
VI .Information on Preferred Stock
□ Applicable √ Not applicable
20Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Section 7 Bond Related Information
□ Applicable √ Not applicable
In the reporting period the Company didn’t own Bond.
21Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Section 8 Financial Report
I. The Company's semiannual financial report has not been audited.II. Accounting statement
BALANCE SHEET
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. June 30 2025 Unit: RMB Yuan
30-June-2025 1-Jan-2025
Items
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 860428396.51 189255337.81 1042143744.67 256913490.58
Financial assets which are measured by fair value and
which changes are recorded in current profit and loss
Derivative financial assets
Transaction financial assets
Notes receivable 331799220.54 88744446.52 352854863.48 72589334.53
Accounts receivable 1745936350.79 530603575.44 1492234348.90 466964861.72
Receivables financing 267919608.64 8111750.52 382073283.27 4679597.82
Accounts paid in advance 203921950.25 82310274.39 164042640.06 85421842.41
Other receivables 53375625.74 35787831.44 45759566.06 128957016.22
Interest receivables
Dividend receivable 3767645.29 3767645.29 11150.00 100000000.00
Inventories 1245158273.82 319878811.10 1393653788.81 325468330.52
Contract assets 188053458.00 88706528.24 184760940.32 73359376.07
Assets held for sale
Non-current asset due within one year 57550.43 57550.43
Other current assets 20545184.31 865457.96 27636378.46 9963685.06
Total current assets 4917195619.03 1344264013.42 5085217104.46 1424317534.93
Non-current assets:
Finance asset held available for sales
Held-to-maturity investment
Long-term account receivable 144227.06 140017.84
Long-term equity investment 502740106.90 2931476813.83 481973415.36 2906530622.51
Other Non-current financial assets 1683852.59 368710.09 1683852.59 368710.09
Investment property 139837714.81 79620870.71 117931720.24 81939998.15
Fixed assets 1201658993.95 568846809.58 1211794069.63 591199135.48
Construction in progress 56535562.26 35385721.41 86221660.80 27671778.14
Right of use assets 19682311.57 22974252.58 23318732.46 10576907.44
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 196708333.20 64099081.10 203999076.19 66109306.96
22Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Expense on Research and Development
Goodwill 286402171.93 286402171.93
Long-term expenses to be apportioned 6313010.92 2808495.21 5719603.26 3315026.79
Deferred income tax asset 104469271.91 33819917.51 103752827.71 33187901.79
Other non-current asset 20161234.88 20161234.88
Total non-current asset 2536336791.98 3739400672.02 2543098382.89 3720899387.35
Total assets 7453532411.01 5083664685.44 7628315487.35 5145216922.28
Current liabilities:
Short-term loans 150038710.69 90000000.00 167283407.26 120327137.01
Financial liabilities which are measured by fair value
and which changes are recorded in current profit and
loss
Derivative financial liabilities
Transaction financial liabilities
Notes payable 506074828.40 113263226.56 569117426.19 108226992.06
Accounts payable 1748249861.06 411969358.93 1601381790.80 351385116.46
Accounts received in advance
Contract liabilities 477594504.16 645711808.53 104206582.50
Wage payable 63696220.62 146734696.02 11354626.22
Taxes payable 23808633.68 30276580.76 12135282.22
Other accounts payable 262577735.03 227361207.96 109923634.05
Interest payable
Dividend payable 42693781.35 42693781.35 533156.00 533156.00
Liabilities held for sale
Non-current liabilities due within one year 206381198.16 182224055.42 161421072.72 140940549.56
Other current liabilities 199958362.35 79781520.25 191009526.67 73756610.21
Total current liabilities 3638380054.15 1119770511.70 3740297516.91 1032256530.29
Non-current liabilities:
Long-term loans 422950000.00 417200000.00 547346541.25 541046541.25
Bonds payable
Preferred stock
Perpetual bond
Lease liability 13540801.22 17651265.91 19071845.78 8626368.06
Long-term account payable 22165994.87 12451396.59
Long-term wage payable
Special Payable
Anticipation liabilities 2968955.79 2703369.53
Deferred income 97930030.07 61393819.39 90733480.29 54972980.29
Deferred income tax liabilities 24578413.20 26601881.56
Other non-current liabilities
Total non-current liabilities 584134195.15 496245085.30 698908515.00 604645889.60
Total liabilities 4222514249.30 1616015597.00 4439206031.91 1636902419.89
Shareholders’ equity
Share capital 843212507.00 843212507.00 843212507.00 843212507.00
23Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Other equity instruments
Preferred stock
Perpetual bond
Capital public reserve 717097098.38 755146592.54 717097098.38 755146592.54
Less: Treasury stock
Other comprehensive income 2208669.73 755146592.54 2208669.73 1246569.06
Special preparation 1531905.35 449374.96
Surplus public reserve 910830538.64 910830538.64 895618513.69 895618513.69
Generic risk reserve
Retained profit 696134585.42 957212881.20 673966177.84 1013090320.10
Total owner’s equity attributable to parent company 3171015304.52 3132102966.64
Minority interests 60002857.19 57006488.80
Total owner’s equity 3231018161.71 3467649088.44 3189109455.44 3508314502.39
Total liabilities and shareholder’s equity 7453532411.01 5083664685.44 7628315487.35 5145216922.28
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
24Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
INCOME STATEMENT
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. January-June 2025 Unit: RMB Yuan
January-June 2025 January-June 2024
Items
Consolidation Parent Company Consolidation Parent Company
I. Total sales 2401232729.35 443470670.15 2463277349.70 404710898.61
II. Total operating cost 2329527483.72 443470670.15 2397140315.69 404710898.61
Including: Operating cost 2009227455.97 382684101.95 2057904806.74 339217302.07
Taxes and associate charges 16256395.28 5477205.69 16689713.29 5763490.09
Selling and distribution expenses 106756811.87 14581396.27 110159991.36 19927691.26
Administrative expenses 122649899.56 39402674.11 121498382.07 34913506.10
R&D expenses 69166325.91 9834164.03 78544862.47 15423258.65
Financial expense 5470595.13 8693536.73 12342559.76 13823860.36
Including: interest expense 12476605.05 8398665.12 17709510.30 13883042.92
interest income 3358019.55 292579.75 5243901.48 548479.34
Add: Other income 8772014.23 2425847.98 17755779.69 1535146.86
Gain/(loss) from investment 23176138.30 22713836.61 22493222.27 27406700.78
Including: income from investment on
affiliated enterprise and jointly enterprise 24534336.83 22713836.61 17218698.46 16979803.35Gain/(loss) from change in fair value (loss as “-“) -14510310.64 -14510310.64Credit impairment loss (loss as “-“) -9867953.80 -2896832.18 -16406220.89 -5253420.94Assets impairment loss (loss as “-“) -3708578.42 -4487134.99 4917988.18 -1332255.11Gain/(loss) from asset disposal (loss as “-“) -63648.71 10550303.70 2703.81III. Operating profit 90013217.23 553308.79 90937796.32 -16509645.16
Add: non-business income 5534007.15 308508.80 5475673.43 4624.78
Less: non-business expense 1566597.08 116697.85 5508956.59 504989.76
IV. Total profit 93980627.30 745119.74 90904513.16 -17010010.14
Less: Income tax 11443201.02 -750091.66 11651682.59 -2490563.24
V. Net profit 82537426.28 1495211.40 79252830.57 -14519446.90
(I) Net profit from continuous operation 82537426.28 1495211.40 79252830.57 -14519446.90
(II)Net profit from discontinuing operation
Net profit attributable to parent company 79541057.88 78529977.92
Minority shareholders’ gains and losses 2996368.40 722852.65
VI. After-tax net amount of other comprehensive
incomes
After-tax net amount of other comprehensive incomes
attributable to owners of the Company
(I) Other comprehensive incomes that will not be
reclassified into gains and losses
1. Changes in net liabilities or assets with a defined
benefit plan upon re-measurement
2. Enjoyable shares in other comprehensive incomes in
invests that cannot be reclassified into gains and losses
under the equity method
(II) Other comprehensive incomes that will be
reclassified into gains and losses
1. Enjoyable shares in other comprehensive incomes in
invests that will be reclassified into gains and losses
under the equity method
25Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
2. Gains and losses on fair value changes of available-
for-sale financial assets
3. Gains and losses on reclassifying held-to-maturity
investments into available-for-sale financial assets
4. Effective hedging gains and losses on cash flows
5. Foreign-currency financial statement translation
difference
6、Others
……
After-tax net amount of other comprehensive incomes
attributable to minority shareholders
VII Total comprehensive income 82537426.28 1495211.40 79252830.57 -14519446.90
Total comprehensive income attributable to parent
company 79541057.88 78529977.92
Total comprehensive income attributable to minority
shareholders 2996368.40 722852.65
VIII. Earnings per share
(I) basic earnings per share 0.09 0.09
(II) diluted earnings per share 0.09 0.09
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
26Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
CASH FLOW STATEMENT
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. January -June 2025 Unit: RMB Yuan
January -June 2025 January -June 2024
Items
Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing
labor services 2052666718.55 301942216.64 1907077005.37 356957447.68
Write-back of tax received 30136813.41 7773364.19 18755550.59
Other cash received concerning operating activities 52565964.76 15930701.50 63426981.44 10607266.66
Subtotal of cash inflow arising from operating activities 2135369496.72 325646282.33 1989259537.40 367564714.34
Cash paid for purchasing commodities and receiving
labor service 1497200184.21 248289092.96 1393125399.43 407046581.00
Cash paid to/for staff and workers 426808924.81 58113306.87 407925055.02 61958999.87
Taxes paid 89098284.19 23062915.04 96739099.30 15612910.27
Other cash paid concerning operating activities 123294617.97 24732332.92 124055968.40 24913279.32
Subtotal of cash outflow arising from operating activities 2136402011.18 354197647.79 2021845522.15 509531770.46
Net cash flows arising from operating activities -1032514.46 -28551365.46 -32585984.75 -141967056.12
II. Cash flows arising from investing activities:
Cash received from recovering investment
Cash received from investment income 11150.00 100000000.00 4378498.20 114364003.20
Net cash received from disposal of fixed intangible and
other long-term assets 229307.68 31636572.34
Net cash received from disposal of subsidiaries and other
units
Other cash received concerning investing activities 50000000.00
Subtotal of cash inflow from investing activities 50240457.68 100000000.00 36015070.54 114364003.20
Cash paid for purchasing fixed intangible and other
long-term assets 58382614.61 9354241.46 33848073.69 2253533.50
Cash paid for investment 3000000.00 16000000.00
Net cash paid for achievement of subsidiaries and other
business units
Other cash paid concerning investing activities 50000000.00
Subtotal of cash outflow from investing activities 108382614.61 12354241.46 33848073.69 18253533.50
Net cash flows arising from investing activities -58142156.93 87645758.54 2166996.85 96110469.70
III. Cash flows arising from financing activities
Cash received from absorbing investment
Including: Cash received from absorbing minority
shareholders' equity investment by subsidiaries
Cash received from loans 132102821.74 90000000.00 252063418.15 209000000.00
Cash received from issuing bonds
Other cash received concerning financing activities 5943611.11 13464836.83
Subtotal of cash inflow from financing activities 138046432.85 90000000.00 265528254.98 209000000.00
Cash paid for settling debts 223984656.45 204729166.67 282052013.02 248700000.00
Cash paid for dividend and profit distributing or interest
paying 9837390.66 8160879.18 14844254.68 13433120.25
Including: dividends or profit paid by subsidiaries to
minority shareholders
Other cash paid concerning financing activities 20944709.90 2952500.00 60640595.58 9783735.91
27Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Subtotal of cash outflow from financing activities 254766757.01 215842545.85 357536863.28 271916856.16
Net cash flows arising from financing activities -116720324.16 -125842545.85 -92008608.30 -62916856.16
IV. Influence on cash due to fluctuation in exchange rate 3752639.50 2281289.59 644.35
V. Net increase of cash and cash equivalents -172142356.05 -66748152.77 -120146306.61 -108772798.23
Add: Balance of cash and cash equivalents at the period -
begin 951579683.60 253995179.54 670440335.98 173113251.05
VI. Balance of cash and cash equivalents at the period–
end 779437327.55 187247026.77 550294029.37 64340452.82
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
28Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd 2025.01-06 Unit: RMB Yuan
2025.01-06
Owners’ equity attributable to parent company
Items
Capital Lessen: Other
Minority Total of
share capital treasury comprehens Special Surplus
Retained
equity owners’ equity
suplus stock ive income preparation reserve
profits
I. balance at the end of last
year 843212507.00 717097098.38 2208669.73 895618513.69 673966177.84 57006488.80 3189109455.44
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
this year 843212507.00 717097098.38 2208669.73 895618513.69 673966177.84 57006488.80 3189109455.44
III. Increase/ decrease of
amount in this year (“-” means 1531905.35 15212024.95 22168407.58 2996368.39 41908706.27
decrease)
(I) Total comprehensive
incomes 79541057.88 2996368.39 82537426.27
(II) Capital increased and
reduced by owners
1. Common shares increased
by shareholders
2. Capital increased by
holders of other equity
instruments
3. Amounts of share-based
payments recognized in
owners’ equity
4. Other
(III) Profit distribution 15212024.95 -57372650.30 -42160625.35
1. Withdrawing surplus
public reserve 15212024.95 -15212024.95
2. Distribution to all owners
(shareholders) -42160625.35 -42160625.35
3. Others
(IV) Internal carrying
forward of owners’ equity
1. New increase of share
capital from capital reserves
2. Convert surplus reserves to
share capital
3. Surplus reserves make up
losses
4. Others
(V) Specific reserve 1531905.35 1531905.35
1. Withdrawn for the period 6326404.28 6326404.28
2. Used in the period 4794498.93 4794498.93
(VI) Other
IV. Balance at the end of this
period 843212507.00 717097098.38 2 208669.73 1531905.35 910830538.64 696134585.42 60002857.19 3231018161.71
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
29Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
2024.01-06
Owners’ equity attributable to parent company
Items Lessen: Other Retained Minority Total of
share capital Capital treasury comprehens Special Surplus equity owners’ equity suplus stock ive income preparation reserve
profits
I. balance at the end of last
year 843212507.00 717097098.38 2208669.73 449374.96 867159439.34 617386488.34 56528848.12 3104042425.87
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
this year 843212507.00 717097098.38 2208669.73 449374.96 867159439.34 617386488.34 56528848.12 3104042425.87
III. Increase/ decrease of
amount in this year (“-” means 772544.07 20853061.88 32380540.83 -1617147.37 52388999.41
decrease)
(I) Total comprehensive
incomes 78529977.92 722852.65 79252830.57
(II) Capital increased and
reduced by owners
1. Common shares increased
by shareholders
2. Capital increased by
holders of other equity
instruments
3. Amounts of share-based
payments recognized in
owners’ equity
4. Other
(III) Profit distribution 20853061.88 -46149437.09 -2340000.02 -27636375.23
1. Withdrawing surplus
public reserve 20853061.88 -46149437.09 -25296375.21
2. Distribution to all owners
(shareholders) -2340000.02 -2340000.02
3. Others
(IV) Internal carrying
forward of owners’ equity
1. New increase of share
capital from capital reserves
2. Convert surplus reserves to
share capital
3. Surplus reserves make up
losses
4. Others
(V) Specific reserve 772544.07 772544.07
1. Withdrawn for the period 772544.07 772544.07
2. Used in the period
(VI) Other
IV. Balance at the end of this
period 843212507.00 717097098.38 2 208669.73 1221919.03 888012501.22 649767029.17 54911700.75 3156431425.28
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
30Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
STATEMENT OF CHANGES IN OWNERS’ EQUITY
2025.01-06
Owners’ equity attributable to parent company
Items Other Lessen: Other Total of owners’
share capital equity Capital Special Surplus equity
instrument suplus
treasury comprehensive preparation reserve Retained profits stock income
I. balance at the end of last
year 843212507.00 755146592.54 1246569.06 895618513.69 1013090320.10 3508314502.39
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
this year 843212507.00 755146592.54 1246569.06 895618513.69 1013090320.10 3508314502.39
III. Increase/ decrease of
amount in this year (“-” means 15212024.95 -55877438.90 -40665413.95
decrease)
(I) Total comprehensive
incomes 1495211.40 1495211.40
(II) Capital increased and
reduced by owners
1. Common shares increased
by shareholders
2. Capital increased by
holders of other equity
instruments
3. Amounts of share-based
payments recognized in
owners’ equity
4. Other
(III) Profit distribution 15212024.95 -57372650.30 -42160625.35
1. Withdrawing surplus
public reserve 15212024.95 -15212024.95
2. Distribution to all owners
(shareholders) -42160625.35 -42160625.35
3. Others
(IV) Internal carrying
forward of owners’ equity
1. New increase of share
capital from capital reserves
2. Convert surplus reserves to
share capital
3. Surplus reserves make up
losses
4. Others
(V) Specific reserve
1. Withdrawn for the period 2345553.55 2345553.55
2. Used in the period 2345553.55 2345553.55
(VI) Other
IV. Balance at the end of this
period 843212507.00 755146592.54 1246569.06 910830538.64 957212881.20 3467649088.44
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
31Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd 2025.01-06 Unit: RMB
Yuan
2024.01-06
Owners’ equity attributable to parent company
Items Other Lessen: Other Total of owners’
share capital equity Capital suplus treasury comprehensive
Special Surplus equity
instrument stock income preparation reserve
Retained profits
I. balance at the end of last
year 843212507.00 755146592.54 1246569.06 867159439.34 990785644.93 3457550752.87
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
this year 843212507.00 755146592.54 1246569.06 867159439.34 990785644.93 3457550752.87
III. Increase/ decrease of
amount in this year (“-” means 20853061.88 -60668883.99 -39815822.11
decrease)
(I) Total comprehensive
incomes -14519446.90 -14519446.90
(II) Capital increased and
reduced by owners
1. Common shares increased
by shareholders
2. Capital increased by
holders of other equity
instruments
3. Amounts of share-based
payments recognized in
owners’ equity
4. Other
(III) Profit distribution 20853061.88 -46149437.09 -25296375.21
1. Withdrawing surplus
public reserve 20853061.88 -20853061.88
2. Distribution to all owners
(shareholders) -25296375.21 -25296375.21
3. Others
(IV) Internal carrying
forward of owners’ equity
1. New increase of share
capital from capital reserves
2. Convert surplus reserves to
share capital
3. Surplus reserves make up
losses
4. Others
(V) Specific reserve
1. Withdrawn for the period 1403878.98 1403878.98
2. Used in the period -1403878.98 -1403878.98
(VI) Other
IV. Balance at the end of this
period 843212507.00 755146592.54 1246569.06 888012501.22 930116760.94 3417734930.76
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
32Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
III. General Information
Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd (the “Company”) 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
RMB350014975Yuan.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 A ordinary shares 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 12th 2015 the Company received new added share capital of
RMB10150000Yuan and the share capital had been verified by DaHua Certified Public
Accountants and had been issued the capital verification report Dahuayanzi [2015]000086 on
March12th 2015.The general meeting for 2015 fiscal year held on 21st April 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 5th
May 2016 and the registered capital was altered to 540247462.00Yuan.The 17thmeeting of the 6th generation of board was held on 4th June 2015 and the 2nd interim
shareholders’ meeting was held on 24th June 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 30th December 2015 approving that new non-public
offering cannot exceeded 38821954 number 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. The share capital stated above has
been verified by DaHua Certified Public Accountants and has been issued the capital
verification report Dahuayanzi [2016]000457 on 31st May 2016.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
33Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
the board of directors to implement the Restricted Share Incentive Plan’ approved on the
3rdprovisional general meeting held on 13th September 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 20th 2016 and set 20th September 2016 as share granted date
and granted 12884000 number of restricted shares to 188 incentive targets at granted price of
5.62Yuan per share. By 22ndNovember 2016 the company has actually received the newly
subscribed registered share capital of 12884000Yuan subscribed by incentive targets. The
share capital stated above has been verified by DaHua Certified Public Accountants and has
been issued the capital verification report Dahuayanzi [2016]001138 on 23rdNovember 2016.On May 20th 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 RMB856478181.00Yuan.On December 18 2017 the Company held the third extraordinary shareholders’ meeting of
2017 which reviewed and approved the Proposal on Repurchasing and Cancelling PartRestricted Stocks of the 2016 Restricted Stock Incentive Plan”. On March 8 2018 after the
completion of repurchase and cancellation the Company implemented the corresponding
capital reduction procedures according to law and the registered capital of the Company was
changed from 856487181 Yuan to 855908981 Yuan.On May 4 2018 the Company held the 21st meeting of the seventh board of directors which
reviewed and approved the Proposal on Repurchasing and Cancelling Party Restricted Stocks
of the 2015 Restricted Stock Incentive Plan. On June 29 2018 after the completion of
repurchase and cancellation the Company implemented the corresponding capital reduction
procedures according to law and the registered capital of the Company was changed from
855908981 Yuan to 855434087 Yuan.
On January 172019 the Company held the first extraordinary shareholders’ meeting of 2019
which reviewed and approved the Proposal on terminating the implementation of 2016
Restricted Stock Incentive Plan of the Company and logouting the restricted stock. On March
42019 the Company has completed the capital reduction process and the registered capital of
the Company was changed from 855434087 Yuan to 843212507 Yuan.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 industrial manufacturing sector mainly engaged in industrial refrigeration
refrigerated and frozen food storage and manufacture and installation of central air-
34Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
conditioning and refrigeration equipment. The scope of business includes research and
development design manufacture sale lease installation and repair of refrigeration and heat
equipment accessories spare parts and energy-saving and environmental protection products;
Technical services technical consultation technical promotion; Design construction
installation repair and maintenance of complete sets of refrigeration and air conditioning
projects mechanical and electrical installation projects steel structure projects anti-corrosion
and heat preservation works; Rental of premises; Transport of ordinary goods; Property
management; Low temperature storage; Import and export of goods and technologies. (With
the exception of projects subject to approval according to law independently carry out business
activities according to law with the business license).This financial report was approved and issued by the Board of Directors of the Company on
August 13 2025.IV. 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 June 60
2025 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.V. 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.
35Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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:
In the notes
to the
Disclosures involved by Materiality criteria set up method and
financial
materiality judgement basis
statements
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
Note VI.3 represents more than 10% of the total
written 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
36Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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 surplus
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.
37Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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
eliminated 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 be
presented separately in the consolidated financial statements under “minority interest of equity”minority interest of profit and loss” “other comprehensive income attributed to minorityinterest” 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
38Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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 transactions
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.
39Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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.Financial 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
40Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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
included 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.
41Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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 profit
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
42Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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
followings: * 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.
43Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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 credit 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
Bank acceptance note portfolio Lower credit risk assessed by the management no
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
44Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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 amortized 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
45Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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
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 )
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
46Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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
measured 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
47Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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.
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 the
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:
48Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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.
(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
49Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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.
(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
50Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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
accounting 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
51Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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 since 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 value rate Annual depreciation rate
Category
(years) (%) (%)
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.
52Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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:
Useful life Estimated net residual Annual depreciation
No Category
(years) value rate (%) 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 5-12 1、3、5、10 7-33.33
4 Electronic equipment &others 3-15 0-1、3、5、10 6-33.33
The 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
53Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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
research 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
54Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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
on 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. Whenconducting 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
55Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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
Employee’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.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
56Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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.when 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
57Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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.
2) 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
58Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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.Where 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
59Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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.
25. 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
60Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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 or
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
61Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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 underlying
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.
62Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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 revised
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
63Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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 in
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
64Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
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 2023 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.
65Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
VI. Taxation
1. The main applicable tax and rate to the Group as follows:
Tax Tax base Tax rate
Value-added tax (VAT) Sales revenue or Purchase 5%、6%、9%、13%
City construction tax Value-added tax payables 7%
Education surcharge Value-added tax payables 3%
Local education surcharge Value-added tax payables 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
Other tax According to the relevant 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%
2. Tax preference
The Company obtained the qualification of high and new technology enterprises on 3rd
December 2020 approved by Dalian Science Technology Bureau Dalian Finance Bureau
Dalian State Tax Bureau and Local tax Bureau. The Certificate No. is GR202021200646 and
the validity duration is three years. According to the tax law the Company can be granted for
66Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
the preferential tax policy of enterprise income tax rate of 15% in three years.The Company’s subsidiary Dalian Bingshan Air-conditioning Equipment Co. Ltd. obtained
the qualification of high and new technology enterprises on 3rd December 2020 approved by
Dalian Science Technology Bureau Dalian Finance Bureau Dalian State Tax Bureau and
Local tax Bureau. The Certificate No. is GR202021200672 and the validity duration is three
years. According to the tax law Bingshan Air-conditioning can be granted for the preferential
tax policy of enterprise income tax rate of 15% in three years.The Company’s subsidiary Dalian Bingshan Guardian Automation Co. Ltd. obtained the
qualification of high and new technology enterprises on 16th November 2018 approved by
Dalian Science Technology Bureau Dalian Finance Bureau Dalian State Tax Bureau and
Local tax Bureau. The Certificate No. is GR20181200562 and the validity duration is three
years. According to the tax law Bingshan Guardian can be granted for the preferential tax
policy of enterprise income tax rate of 15% in three years.The Company’s subsidiary Wuhan New World Refrigeration Industrial Co. Ltd obtained the
qualification of high and new technology enterprises on 15th November 2018 approved by
Hubei Science Technology Bureau Hubei Finance Bureau Hubei State Tax Bureau and Hubei
Local tax Bureau. The Certificate No. is GR201842000605 and the validity duration is three
years. According to the tax law Wuhan New World Refrigeration can be granted for the
preferential tax policy of enterprise income tax rate of 15% in three years.The Company’s subsidiary Dalian Universe Thermal Technology Co. Ltd. obtained the
qualification of high and new technology enterprises on 3rd December 2020 approved by
Dalian Science Technology Bureau Dalian Finance Bureau Dalian State Tax Bureau and
Local tax Bureau. The Certificate No. is GR202021200570 and the validity duration is three
years. According to the tax law Universe can be granted for the preferential tax policy of
enterprise income tax rate of 15% in three years.The Company’s subsidiary Sonyo Compressor(Dalian)Co.Ltd.(hereinafter referred to
as“ Sonyo Compressor” obtained the qualification of high and new technology enterprises on
22nd October 2021 approved by Dalian Science Technology Bureau Dalian Finance Bureau
Dalian State Tax Bureau and Local tax Bureau. The Certificate No. is GR202121200268 and
the validity duration is three years. According to the tax law the Company can be granted for
the preferential tax policy of enterprise income tax rate of 15% in three years.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 on 9th October 2020 approved by Dalian Science Technology Bureau Dalian
Finance Bureau Dalian State Tax Bureau and Local tax Bureau. The Certificate No. is
67Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
GR202021200465 and the validity duration is three years. According to the tax law the
Company can be granted for the preferential tax policy of enterprise income tax rate of 15% in
three years.The Company’s subsidiary Sonyo Refrigeration (Dalian) Co. Ltd.(hereinafter referred to
as“ Sonyo Refrigeration System” obtained the qualification of high and new technology
enterprises on 22th October 2021 approved by Dalian Science Technology Bureau Dalian
Finance Bureau Dalian State Tax Bureau and Local tax Bureau. The Certificate No. is
GR202121200368 and the validity duration is three years. According to the tax law the
Company can be granted for the preferential tax policy of enterprise income tax rate of 15% in
three years.
(2)According to the Announcement on the Policy of Value added Tax Deduction for Advanced
Manufacturing Enterprises issued by the Ministry of Finance and the State Administration of
Taxation (Announcement No. 43 of 2023 of the Ministry of Finance and the State Administration
of Taxation) from January 1 2023 to December 31 2027 advanced manufacturing enterprises
are allowed to deduct an additional 5% of the deductible input tax amount for the current period
to offset the payable value-added tax amount. The tax collection and management matters of
enterprises enjoying this policy shall be implemented in accordance with the current collection
and management regulations. The Company and its subsidiaries Bingshan Air Conditioning
Bingshan Guardian Wuxin Refrigeration Nevis Sonyo Compressor Sonyo Refrigeration enjoy
this preferential policy.VII. Notes to Consolidated Financial Statements
The financial statement data disclosed below unless otherwise specified "beginning" refers to
January 1 2025 "end of period" refers to June 30 2025 "current period" refers to the period
from January 1 to June 30 2025 and "previous period" refers to the period from January 1 to
June 30 2024 with the currency unit being RMB yuan.
1. Cash and cash in bank
Item Closing Balance Opening Balance
Cash on hand 8767.32 28585.88
Cash in bank 839838616.33 1011911100.49
Other cash and cash equivalents 20581012.86 30204058.30
Total 860428396.51 1042143744.67
Note1: within the bank deposits 50217708.30 Yuan was time deposits and interest income;
frozen fund of6650265.95 Yuan guarantee deposit for migrant worker of 351057.41Yuan and
restricted fund for migrant worker salary of 3191024.44 Yuan.Note2: Other monetary funds are bank acceptance deposit 13545500.81Yuan deposit for
68Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
letter of guarantee is 7035512.05Yuan.
2. Notes receivable
(1) Category of notes receivable
Items Closing Balance Opening Balance
Bank acceptance notes 318300275.82 331617161.92
Commercial acceptance notes 13498944.72 21237701.56
Total 331799220.54 352854863.48
Closing Balance Opening Balance
Provision for Provision for
Items Booking balance Book Booking balance
bad debts bad debts Book value
value
Amount % Amount % Amount % Amount %
Including:
332407381.47100.608160.0.1833179922
Notes receivable with 00% 93 % 0.54
100.001421590.40
provision for bad debts by 354276459.03 352854863.48% 5.55 %
combination
Including:
318300275.8295.731830027
Bank acceptance bill 331617161.92 93.60% 331617161.926% 5.82
14107105.654.24608160.4.31134989441421596.27
trade acceptance draft % 93 % .72 22659297.11 6.40% 21237701.56
5.55%
332407381.47100.608160.0.1833179922
Total 100.00 142159 0.4000% 93 % 0.54 354276459.03 352854863.48
%5.55%
Provision for bad debts by combination:
Closing Balance
Items
Booking balance Bad debt provision Provision ratio
Banker's acceptance draft 318300275.82
Trade acceptance draft 14107105.65 608160.93 4.31%
Total 332407381.47 608160.93
Instructions for determining the basis for this combination:
If the bad debt provision for bills receivable is accrued according to the general model of expected
credit loss please refer to the disclosure method of other receivables to disclose the relevant
information of bad debt provision:
□Applicable □Not applicable
(2) Provision for bad debts for the current period:
69Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Provision for bad debts in the current period:
Change during the year
Opening Closing
Category Accrued Collected/reverse Written-
balance Others Balance
d off
Bad debt
provision for 1421595.55 213308.00 1026742.62 608160.93
notes receivable
Total 1421595.55 213308.00 1026742.62 608160.93
Among them the amount of bad debt provision recovered or reversed in the current period is
important:
□Applicable □Not applicable
(3)Notes receivable pledged by the company at the end of the period
Items Closing pledged amount
Bank acceptance notes 7680962.04
Total 7680962.04
(4) Notes receivable endorsed or discounted but not mature at the end of year:
Item Closing amount no more Closing amount still
recognized recognized
Bank acceptance notes 168623428.43
Trade acceptance draft
Total 168623428.43
3. Accounts receivable
(1) Category of accounts receivable
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
13071940.810.56%10264390.3578.52%2807550.46
on individual basis
Bad debt provision
2317416054.7199.44%574287254.3824.78%1743128800.33
on group
Including: aging as
characteristics of 2317416054.71 99.44% 574287254.38 24.78% 1743128800.33
credit risk
Total 2330487995.52 100.00% 584551644.73 25.08% 1745936350.79
(Continued)
70Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Opening balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
13071940.810.63%10264390.3578.52%2807550.46
on individual basis
Bad debt provision
2058783031.9499.37%569356233.5027.65%1489426798.44
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
Provision for bad debts by combination:
Items Closing BalanceBooking balance Provision %
within 1 year 1232846059.48 66350980.97 5.34%
1-2 years 390674215.05 64268429.63 16.45%
2-3 years 239340204.24 73676384.11 30.78%
3-4 years 123592649.74 60845182.81 49.23%
4-5 years 75456738.00 54161758.40 71.78%
more than 5 years 255506188.19 255506188.19 100.00%
Total 2317416054.71 574287254.38
Instructions for determining the basis for this combination:
If the bad debt provision for accounts receivable is accrued according to the general model of
expected credit loss please refer to the disclosure method of other receivables to disclose the
relevant information of bad debt provision:
□Applicable □Not applicable
Disclosure by age
Aging Closing Balance
Within1 year 1232846059.48
1to 2 years 390674215.05
2 to 3 years 240448883.41
More than 3 years 466518837.58
3 to 4 years 129101000.18
4 to 5 years 76371649.22
More than 5 years 261046188.18
Total 2330487995.52
2) Bad debt provision accrued and written-off (withdraw)
Provision for bad debts in the current period:
71Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Change during the period
Opening Closing
Category Accrued Collected/reverse Others
balance Written-off Balance
d
Bad debt
provision
for 579620623.85 12702810.86 1895193.85 6542408.01 665811.88 584551644.73
accounts
receivable
3) Accounts receivable written off in current period
Item Written off amount
Receivable actually written off 6542408.01
4. Contract asset
(1) contract asset
Closing Balance
Items
Booking balance Provision Carrying amount
Undue warranty 208293093.64 26354893.83 181938199.81
Unsettled receivable of revenue
12241527.676126269.486115258.19
recognized over time
Total 208293093.64 26354893.83 181938199.81
(continued)
Opening 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
(3) Category of contract asset based on bad debt provision method
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
1709948.800.78%1709948.80100.00%
on individual basis
Bad debt provision 218824672.51 99.22% 30771214.51 14.06% 188053458.00
72Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
on group
Including: aging as
characteristics of 218824672.51 99.22% 30771214.51 14.06% 188053458.00
credit risk
Total 220534621.31 100.00% 32481163.31 14.73% 188053458.00
(continued)
Opening Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
1709948.800.79%1709948.80100.00%
on individual basis
Bad debt provision
213529722.1499.21%28768781.8213.47%184760940.32
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
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
Company 1 1709948.80 1709948.80 1709948.80 1709948.80 1709948.80
expected
Total 1709948.80 1709948.80 1709948.80 1709948.80 1709948.80 —
73Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
2) Bad debt provisions on group basis
Closing Balance
Aging Accounts Provision for Drawing proportion
receivable bad debts
Within 1 year 122395529.83 7573801.34 6.19%
1 to 2 years 65888713.10 10029677.32 15.22%
2 to 3 years 19943257.86 5958866.17 29.88%
3 to 4 years 4189328.28 2027533.14 48.40%
4 to 5years 4390760.04 3164253.15 72.05%
Over 5 years 2017083.40 2017083.40 100.00%
Total 218824672.51 30771214.51 —
(3) Bad debt provision of current period
Collected/
Category Accrued Written-off Others Reason
reversed
Undue warranty 5896913.16 1266532.01 5896913.16 1266532.01 -
Unsettled receivable of
revenue recognized over 2627948.46 2627948.46 -
time
Total 5896913.16 3894480.47 5896913.16 3894480.47 -
5. Receivables financing
Items Closing Balance Opening Balance
Bank acceptance notes 267919608.64 382073283.27
Total 267919608.64 382073283.27
(2) Category of accounts receivable based on bad debt provision method
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
267919608.64100.00%267919608.64
on group
Including: bank
267919608.64100.00%267919608.64
acceptance notes
Total 267919608.64 100.00% 267919608.64
(Continued)
74Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Opening balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision on group 382073283.27 100.00% 382073283.27
Including: aging as
382073283.27100.00%382073283.27
characteristics of credit risk
Total 382073283.27 100.00% 382073283.27
(3) Pledged notes receivable up to the end of year.
Items Closing pledged amount
Bank acceptance notes 72147362.65
Total 72147362.65
6. Other receivables
Items Closing Balance Opening Balance
Dividends receivable 3767645.29 11150.00
Other receivable 49607980.45 45748416.06
Total 53375625.74 45759566.06
(1) Dividends receivable
1) Classification of Dividends Receivable
Items(or Investee) Closing Balance Opening Balance
Wuhan Iron and Steel Co. Ltd. 11150.00
Dalian Bingshan Group Huahuida Financial Leasing
Co. Ltd. 3220344.00
Jiangsu Jingxue Energy Saving Technology Co. Ltd 547301.29
Total 3767645.29 11150.00
(2). Other receivables
1) Other receivables categorized by nature
Nature Closing Balance Opening Balance
Receivables and Payables 48215839.66 31791903.41
Guarantee deposits 28788999.23 30974881.78
Petty cash 6166644.38 3488045.56
Others 3949413.88 17138048.40
Total 87120897.15 83392879.15
75Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
2) Provision for bad debts
The first phase The second phase The third phase
Provision for bad debts Expected credit losses in the Expected Credit Loss Expected Credit Loss for Total
next 12 months for the duration (No the duration (Credit Credit Devaluation) impairment has occurred)
Balance on January 1 2025 1978205.87 35666257.22 37644463.09
The balance of January 1 2025 in
the current period
Provision for current period 501091.62 32477.90 533569.52
Reversal for current period 660115.91 660115.91
Written-off 5000.00 5000.00
Balance on June 30 2025 1819181.58 35693735.12 37512916.70
Changes in book balances with significant changes in loss provisions in the current period
□Applicable □Not applicable
Disclosure by age
Aging Closing Balance
Within 1 year 37107932.85
1-2 years 4081061.39
2-3 years 3853771.46
Over 3 years 42078131.45
3-4 years 6927082.26
4-5 years 3814376.30
Over 5 years 31336672.89
Total 87120897.15
3) Provisions for bad debts accrued recovered or reversed in the current period
Provision for bad debts in the current period:
Change during the year
Opening Closing
Category Accrued Collected/re Written-
balance Others Balance
versed off
Provision for
bad debts of 37644463.09 533569.52 660115.91 5000.00 37512916.70
other receivables
Total 37644463.09 533569.52 660115.91 5000.00 37512916.70
4) Other receivables from the top 5 debtors
76Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Name Category Closing Balance Aging % of the total OR Closing Balance of Provision
Top 1 Rent 6294004.19 Within 1 year 7.22 230360.55
Top 2 Deposit 2548847.50 4-5 years；over 5 years 2.93 2395944.15
Top 3 Current money 2476894.20 3-4 years 2.84 1297644.87
Top 4 Rent 1932689.79 Within 1 year 2.22 70736.45
Top 5 Rent 1776128.15 Within 1 year 2.04 65006.29
Total 15252435.83 17.25 4059692.31
7. Prepayments
(1) Aging of prepayments
Closing Balance Opening Balance
Items
Amount Percentage Amount Percentage
Within 1 year 164326328.14 80.58% 140193253.25 85.46%
1 to 2 years 21203287.35 10.40% 15625104.20 9.53%
2 to 3 years 13627145.87 6.68% 3927719.36 2.39%
Over 3 years 4765188.89 2.34% 4296563.25 2.62%
Total 203921950.25 164042640.06
(2) Prepayments from the top 5 debtors based on closing balance
The sum of top 5 of prepayment is 77250609.28 Yuan represents37.88% of closing balance
of prepayment.
8. Inventories
(1) Categories of inventories
Closing Balance
Item
Book value Provision for decline Net book value
Raw materials 245057362.49 32589803.17 212467559.32
Working in progress 145622915.42 8637511.69 136985403.73
Finished goods 475612814.07 39691307.34 435921506.73
Cost to fulfill the contract 417031256.52 11200244.06 405831012.46
Self-manufactured semi-
finished products
Goods on transit 52429998.97 52429998.97
Materials on consignment
for further processing 1349354.75 1349354.75
Properties written off debtors 173437.86 173437.86
Low-value consumable 1337277140.08 92118866.26 1245158273.82
Total 245057362.49 32589803.17 212467559.32
77Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
(Continued)
Opening Balance
Item
Book value Provision for decline Net book value
Raw materials 264329161.20 33708343.75 230620817.45
Working in progress 172761094.92 19583788.41 153177306.51
Finished goods 453823794.09 41658999.95 412164794.14
Cost to fulfill the contract 544464520.45 12895734.89 531568785.56
Self-manufactured semi-finished products 11060053.54 11060053.54
Goods on transit 52174151.33 52174151.33
Materials on consignment for further
processing 2674187.81 2674187.81
Properties written off debtors 213692.47 213692.47
Raw materials 1501500655.81 107846867.00 1393653788.81
Total 264329161.20 33708343.75 230620817.45
(2) Provision for decline in the value of inventories
Increase Decrease
Opening Closing
Item Others Reverse/ Others
Balance Accrual Balance
transferred Written- off transferred
Raw materials 33708343.75 83256.97 1201797.55 32589803.17
Working in
19583788.41-17073.1910929203.538637511.69
progress
Finished goods 41658999.95 1639961.95 3607654.56 39691307.34
Cost to fulfill
12895734.891695490.8311200244.06
the contract
Total 107846867.00 1706145.73 17434146.47 92118866.26
Accrual 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 assets due within one year
78Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
Items Closing Balance Opening Balance
Long-term receivables due within one year 57550.43 57550.43
Total 57550.43 57550.43
10. Other current assets
Item Closing Balance Opening Balance
Input VAT to be deducted 16005075.36 23990929.71
The amount of income tax prepaid 2905453.48 2123365.65
Prepaid VAT 503333.71 139723.58
Prepaid expenses 784532.24 114445.28
Contract acquisition cost 346789.52 1267914.24
Total 20545184.31 27636378.46
11. Long term receivable
(1) Details
Item Closing Balance Discounted
rate
Carrying Provisio Book
amount n value
Lease premium 155116.22 10889.16 144227.06
---Unrealized financing income -17483.35 -17483.35
Total 155116.22 10889.16 144227.06
(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 on group 155116.22 100.00 10889.16 7.02 144227.06
Including: bank acceptance notes 155116.22 100.00 10889.16 7.02 144227.06
Total 155116.22 100.00 10889.16 7.02 144227.06
1) The bad debt provision based on group of long-term receivables
Closing Balance
Aging Accounts Provision for bad Drawing proportion
receivable debts (%)
Within 1 year 155116.22 10889.16 7.02%
Total 155116.22 10889.16 ——
79Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2025 Semiannual Report
2) The bad debt provision under expected credit loss model
1st stage 2nd stage 3rd stage
Bad debt Expected credit Expected credit loss within Expected credit loss
Total
provision loss within 12 the whole period (no within the whole period
months impairment) (impairment incurred)
Opening balance 10571.36 - - 10571.36
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 317.80 - - 317.80
Reverse - - - -
Cancelation - - - -
Written off - - - -
Other movement - - - -
Closing balance 10889.16 - - 10889.16
(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
10571.36317.8010889.16
provision
Total 10571.36 317.80 10889.16
8012.Long-term equity investments
Increase/Decrease
Gains and
losses Adjustment of Cash bonus or Provision for
Investee Beginning Provision for balance Increased Decreased recognized other
Change profits impairment Ending balance impairment
under the comprehensive of other equity announced to
of the Others
equity income issue current
method period
Associates — — — — — — — — — — —
Dalian Honjo Chemical
Co. Ltd 10249074.00 133433.43 10382507.43
Keihin-Grand Ocean
Thermal Technology 53322286.73 -376025.05 52946261.68
(Dalian)Co.Ltd.
Dalian Fuji Bingshan
Vending Machine Co. Ltd. 67096098.78 5248104.84 72344203.62
MHI Bingshan
Refrigeration (Dalian) 16746474.97 2199327.03 18945802.00
Co.Ltd.Dalian Fuji Bingshan
Vending Machine Sales
Co. Ltd
Jiangsu Jingxue Insulation
Technology Co.Ltd (N4) 145535400.55 *.** 3220344.00 *.**
Dalian Bingshan Metal
Technology Co.Ltd. 135904723.22 13572735.20 149477458.42
Dalian Bingshan Group
Huahuida Financial Leasing 46632671.24 *.** 547301.29 *.**
Co. Ltd
Wuhan Sikafu Power
Control Equipment Co. Ltd 6486685.87 1801438.30 8288124.17
Total 481973415.36 24534336.83 3767645.29 502740106.90
8113.Other non-current financial assets
Item Closing Balance Opening Balance
Financial assets classified as FVTPL 1683852.59 1683852.59
Including: equity instruments 1683852.59 1683852.59
Total 1683852.59 1683852.59
14. Investment property
(1) Investment property measured as cost model
Item Property& building Land-use-rights Total
I. Initial cost — — —
1. opening balance 246262548.24 26094438.38 272356986.62
2. addition 26411884.96 26411884.96
(1) FA\transferred from CIP 21374110.75 26411884.96
3. decrease 2040449.10 2040449.10
4. closing balance 270633984.10 26094438.38 296728422.48
II. Accumulated depreciation — — —
1. opening balance 140552896.05 13872370.33 154425266.38
2. addition 3144767.42 450573.06 3595340.48
(1) accrued/amortization 3144767.42 450573.06 3595340.48
(2) FA\transferred from CIP
3. decrease 1129899.19 1129899.19
4. closing balance 142567764.28 14322943.39 156890707.67
III. Impairment reserve — — —
1. opening balance - - -
2. addition
3. decrease
4. closing balance
IV. Book value — — —
1. Closing book value 128066219.82 11771494.99 139837714.81
2. Opening book value 105709652.19 12222068.05 117931720.24
(3) Investment property without ownership certificate
82Item Book value Reason
Because the land use right and the plant’s ownership
Plant belong to different person the deed of the plant was not 11756581.06 obtained. In 2023 the land use right is obtained the
certificate of the plant ownership is in progress
15. Fixed assets
Items Closing Book Value Opening Book Value
Fixed asset 1201658993.95 1211794069.63
Fixed asset disposal - -
Total 1201658993.95 1211794069.63
(1) Fixed assets detail
Property& Machinery Transportation
Item Other equipment Total
buildings equipment equipment
I. Initial cost — — — — —
1.Opening balance 992337822.26 1764934321.53 23455664.81 240887426.59 3021615235.19
2. Increase 10281201.31 43380830.73 974735.93 1215878.54 55852646.51
(1) Purchase 2003365.38 534221.78 452502.15 2990089.31
(2) Transferred from
8240752.2128324368.02440514.15763376.3937769010.77
construction-in-progress
(3) Acquired from business
combination
(4) financial lease 2040449.10 13053097.33 15093546.43
3. Decrease 8670426.50 1187807.04 825541.90 10683775.44
(1) Disposal 8670426.50 1187807.04 825541.90 10683775.44
(2) transferred int investment
property
1002619023.5
4.Closing balance 1799643930.89 23242593.70 241278558.10 3066784106.267
II. Accumulated depreciation — — — — —
1.Opening balance 372093415.44 1247262870.08 16914057.97 162661650.26 1798931993.75
2. Increase 14456119.40 43807333.16 693344.66 6465251.84 65422049.06
(1) Accrued 13326220.21 43807333.16 693344.66 6465251.84 64292149.87
(2) Acquired from business
combination
(3) financial lease 1129899.19 1129899.19
3. Decrease 8357880.83 951705.24 729872.47 10039458.54
(1) Disposal 8357880.83 951705.24 729872.47 10039458.54
83Property& Machinery Transportation
Item Other equipment Total
buildings equipment equipment
(2) transferred int investment
property
4.Closing balance 386549534.84 1282712322.41 16655697.39 168207070.12 1854314584.27
III. Impairment reserve — — — — —
1.Opening balance 1125906.87 6836528.22 286519.26 2640217.46 10889171.81
2. Increase
(1)Acquired from business
combination
3. Decrease 78065.67 578.10 78643.77
(1) Disposal 78065.67 578.10 78643.77
4.Closing balance 1125906.87 6758462.55 286519.26 2639639.36 10810528.04
IV.Book value — — — — —
1.Closing book value 614943581.86 510173940.80 6300377.05 70431848.62 1201658993.95
2.Opening book value 619118499.95 510834923.23 6255087.58 75585558.87 1211794069.63
(2) Fixed assets without ownership certificate
Item Book value Reason
Up to June 302024 sum of net book value of the buildings
without ownership certificate is 24654106.29 Yuan they are all
Self -constructed self-constructed buildings which is the property of Sonyo
buildings 28932050.72 Compressor (Dalian)Co. Ltd.Because the land right where the buildings stand on are not
obtained ownership certificate of the buildings are not ready.Rihang Apartment The documents are not ready in full the certificate of the building 1775189.70 ownership can not be obtained.Xinghai Bay The documents are not ready in full the certificate of the building
Public Building 5100915.63 ownership can not be obtained.
16. Construction-in-progress
84Item Closing book value Opening book value
Construction-in-progress 56535562.26 86221660.80
Construction materials -
Total 56535562.26 86221660.80
(1) Construction-in-progress details
Closing balance Opening balance
Item Book
Provision Book Value Book balance Provision Book value
balance
Buildings &
reconstruction 15467437.75 15467437.75 29766943.79 29766943.79
Improvement of
machinery 50803124.07 15064649.38 35738474.69 69390477.81 15064649.38 54325828.43
Software of
intelligent 5329649.82 5329649.82 2128888.58 2128888.58
manufacture
Total 71600211.64 15064649.38 56535562.26 101286310.18 15064649.38 86221660.80
(2) Change in the significant construction in progress
Decrease
Opening Closing
Name Increase Transfer to FA/ Other
balance balance
Intangible assets decrease
Buildings &
reconstruction 50382135.57 1420402.19 20682040.64 31120497.12
Improvement of
machinery 26825229.07 3441126.99 24020836.00 6245520.06
Total 77207364.64 4861529.18 44702876.64 37366017.18
(Continued)
Including:
Percent of
Progress Accumulated accumulate Interest
investment
Name Budget of capitalized d capitalized capitalization Source of fundsagainst
construction interest interest of Rate
budget
the year
Buildings & Self-
reconstruction 53478966.54 67.33% 67.33% - - - financing
Improvement Self-
of machinery 17069787.18 97.36% 97.36% - - - financing
Total 70548753.72 — — — — — —
8517. Right-of-use assets
Property/
Item Machinery
Transportation Electronic
buildings equipment equipment
Land use right Software Total
I. Initial cost — — — — — —
1.Opening balance 16945191.24 1500407.13 172876.63 802669.27 12860244.41 350368.74 32631757.42
2. Increase
(1) lease in
(2) business combination
3. Decrease
(1) Disposal
(2) transferred into FA
4.Closing balance
II. Accumulated
amortization
1.Opening balance 5748173.03 970803.82 89895.91 173911.66 2286444.48 43796.06 9313024.96
2. Increase 2953754.03 237564.48 41490.42 80266.92 285805.56 37539.48 3636420.8
(1) Accrued 2953754.03 237564.48 41490.42 80266.92 285805.56 37539.48 3636420.8
(2) business combination
3. Decrease
(1) Disposal
(2) transferred into FA
4.Closing balance 8701927.06 1208368.30 131386.33 254178.58 2572250.04 81335.54 12949445.85
86Property/
Item Machinery
Transportation Electronic
buildings equipment equipment
Land use right Software Total
III. Impairment reserve — — — — — —
1. Opening balance - - - - - -
2. Increase - - - - - -
3. Decrease - - - - - -
4.Closing balance - - - - - -
IV. Book value — — — — — —
1. Closing book value 8243264.18 292038.83 41490.30 548490.69 10287994.37 269033.20 19682311.57
2. Opening book value 11197018.21 529603.31 82980.72 628757.61 10573799.93 306572.68 23318732.46
8718. Intangible assets
Non-
Item Land use right Patent Patent Others Total
I. Initial cost — — — — —
1.Opening balance 240905737.40 17630188.82 5773680.00 80663366.89 344972973.11
2. Increase 918264.67 918264.67
(1) Purchase 482793.40 482793.40
(2) Transferred from
-435471.27435471.27
construction-in-progress
(3) increase via merge
3. Decrease - - - 1913522.19 1913522.19
(1) Disposal - - - 1913522.19 1913522.19
4.Closing balance 240905737.40 17630188.82 5773680.00 79668109.37 343977715.59
II. Accumulated
—————
amortization
1.Opening balance 77888475.40 11899704.45 5273712.00 45900023.90 140961915.75
2. Increase 2803920.26 714758.10 250002.00 4083033.71 7851714.07
(1) Accrued 2803920.26 714758.10 250002.00 4083033.71 7851714.06
(2) Increase from merger
3. Decrease 1556228.60 1556228.60
(1) Disposal 1556228.60 1556228.60
4.Closing balance 80692395.66 12614462.55 5523714.00 48426829.01 147257401.22
III. Impairment
—————
provision
1. Opening balance 11981.17 11981.17
2. Increase
(1) Increase from merger
3. Decrease
(1) Disposal
4.Closing balance 11981.17 11981.17
IV. Book value — — — — —
1. Closing book value 160213341.74 5015726.27 249966.00 31229299.19 196708333.20
2. Opening book value 163017262.00 5730484.37 499968.00 34751361.82 203999076.19
19. Goodwill
(1) Original cost of goodwill
88Increased during Decreased during
Opening current year current yearName Balance Enterprises Closing Balancemerger Other Disposal Other
increase
Sonyo Compressor (Dalian)Co.Ltd 240922872.80 - - - - 240922872.80
Sonyo Refrigeration (Dalian) Co.Ltd.(N1) 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
89Refrigeration 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 of 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 (1%-8%) discount
rate(10.74%-11.62%) 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.
20. Long-term unamortized expense
Item Opening Other Closing Increase Amortization
Balance Decrease balance
Greenland of new factory 2155945.54 446057.76 1709887.78
Employee’s dormitory use right 1319778.75 60473.82 1259304.93
Membership fee for golf 357500.00 8250.00 349250.00
Renovation and rebuilding 1734482.95 1461838.40 324391.88 2871929.47
Amortization of instruments 111479.45 42801.54 68677.91
Technology entrance fee of cold and
heat machinery 40416.57 21026.27 7482.01 53960.83
Total 5719603.26 1482864.67 889457.01 6313010.92
21. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets without offsetting
90Closing balance Opening balance
Item Deductible Deferred tax Deductible temporary
temporary difference assets difference Deferred tax assets
Provision for impairment of
assets 124533838.58 18828585.85 134581459.34 20319705.43
Deductible losses 7223987.87 1083598.18
Provision for credit
impairment 450139587.68 78028689.10 435919173.38 75919841.22
FA depreciation 54071935.80 8110790.37 54071935.80 8110790.37
Lease liability 2123776.86 422795.78 9109228.24 1470613.49
Unrealized revenue 12912057.50 3228014.38 12912057.50 3228014.38
Government subsidy 12244929.33 1836739.40 12244929.32 1836739.40
Accrued sales discount 16775734.14 2516360.12 16775734.14 2516360.12
Deductible loss 2301229.56 378294.47 2301229.56 378294.47
Unrealized profit from
internal transaction 13034503.47 1955175.52 13034503.47 1955175.52
Others 8684565.80 1302684.86 1460577.94 219086.69
Total 696822158.72 116608129.85 699634816.56 117038219.27
(2) Deferred tax liabilities without offsetting
Closing balance Opening balance
Item Taxable
temporary Deferred tax
Taxable Deferred tax
difference liabilities
temporary
difference liabilities
Revaluation increase in
business combination
asst not under same 203419256.37 30512888.46 216909045.47 32536356.82
control
FA depreciation 39837868.05 5975680.21 40073339.62 6011000.94
Use right of asset 13251579.59 228702.47 8262320.31 1339915.36
Total 256508704.01 36717271.14 265244705.40 39887273.12
(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 assets 12138857.94 104469271.91 13285391.56 103752827.71
Deferred tax liabilities 12138857.94 24578413.20 13285391.56 26601881.56
(4) Unrecognized deferred tax assets details
91Item Closing balance Opening balance
Deductible temporary difference 211404564.04 77793766.46
Deductible loss 456163169.34 518523346.16
Total 667567733.38 596317112.62
(5) Unrecognized deductible loss of deferred tax assets expired years
Year Closing balance Opening balance Notes
20258511750.489324721.56—
202653191704.7654629003.37—
202764968622.4965263403.90—
202855941615.5755941615.57—
202937725073.4537412135.40—
20308559346.098559346.09—
203190555088.0899102467.44—
203220014110.1520100936.15—
203397400322.04117623814.71—
203419295536.2350565901.97—
Total 456163169.34 518523346.16 —
22. Other non-current asset
Closing Balance Opening balance
Category Carrying Carrying
Book value Provision Book value Provision
amount amount
Debt offset housing 21770721.00 1609486.12 20161234.88 21770721.00 1609486.12 20161234.88
Total 21770721.00 1609486.12 20161234.88 21770721.00 1609486.12 20161234.88
23. Assets with restricted ownership or use rights
Item At the period end
Book value Carrying amount Type Restriction
Guarantee
Monetary fund 30773360.66 30773360.66 Frozen
deposit/ frozen bank account
Notes receivable 7680962.04 7680952.04 Pledged Pledged
FA 96530705.63 62400909.71 Pledged Pledged
Intangible asset 8266573.44 5037630.97 Pledged Pledged
Financing of receivable 72147362.65 72147362.65 Pledged Pledged
Investment property 39307513.52 30852723.07 Pledged Pledged
Total 254706477.94 208892939.10 — —
92(continued)
Item At the beginning of the period
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
FA 89706820.32 58150963.78 Pledged Pledged
Intangible asset 8266573.44 5120297.71 Pledged Pledged
Financing of receivable 129115879.46 129115879.46 Pledged Pledged
Investment property 38955728.90 31214402.83 Pledged Pledged
Total 314758067.11 272314608.77 — —
24. Short-term borrowing
(1) Category of short-term borrowing
Loan category Closing balance Opening balance
Credit loan 140192101.14 149334095.56
Factoring loan 4742850.55 15271202.33
Mortgage loan 4000000.00 2000000.00
Pledged loan 1103759.00 678109.37
Total 150038710.69 167283407.26
25. Notes payable
Notes Category Closing balance Opening balance
Commercial acceptance notes 501079228.40 569117426.19
Bank acceptance notes 4995600.00
Total 506074828.40 569117426.19
26. Accounts payable
Item Closing balance Opening balance
Material payments 942249625.73 860628492.89
Project payments 757017262.57 696387654.58
Equipment payments 43402407.76 38362719.82
Others 5580565.00 6002923.51
Total 1748249861.06 1601381790.80
27. Other accounts payable
93Item Closing balance Opening balance
Interest payable - -
Dividend payable 42693781.35 533156.00
Other accounts payable 219883953.68 226828051.96
Total 262577735.03 227361207.96
27.1 Dividend payable
Item Closing balance Opening balance
Ordinary share dividend 42693781.35 533156.00
Total 42693781.35 533156.00
27.2 Other accounts payable
(1) Other payables categorized by payments nature
Payments nature Closing balance Opening balance
Supplier platform 154588037.48 138427047.31
Cash pledge and security deposit 15793923.50 17352388.67
Apply for reimbursement and
unpaid 13448702.02 17093300.41
Receivables and payables 6555803.29 13486275.11
Agency fees 5424237.19 6811472.88
Repair 479591.65 3173010.34
Trade mark and royalty 2618258.31 2403064.87
Others 20975400.24 28081492.37
Total 219883953.68 226828051.96
28. Contract liability
(1) Contract liability
Item Closing balance Opening balance
Received in advance due from unrealized revenue 477594504.16 645711808.53
Total 477594504.16 645711808.53
29. Employee’s payable
(1) Category of employee’s payable
Opening
Item Increase Decrease Closing balance
balance
Short-term employee’s
146537598.85304372470.47387232093.8363677975.49
payable
94Opening
Item Increase Decrease Closing balance
balance
Post-employment benefit –
197097.1737474377.1737653229.2118245.13
defined contribution plan
Termination benefits 2824771.78 2824771.78
Total 146734696.02 344671619.42 427710094.82 63696220.62
(2) Short-term employee’s payables
Opening
Item Increase Decrease Closing balance
balance
Salaries bonus
134604912.37233896836.49315336139.1453165609.72
allowance and subsidy
Welfare 12765899.75 12765899.75
Social insurance 121879.20 25129298.35 25239077.10 12100.45
Include: Medical
98556.2120489479.3620576409.6411625.93
insurance
Supplementary medical
52368.4452368.44
insurance
On-duty injury
12696.162338944.522351166.16474.52
insurance
Maternity insurance 10626.83 2248506.03 2259132.86
Housing funds 82173.00 25694517.35 25569698.39 206991.96
Labor union and training
3619427.605262981.026649797.022232611.60
expenses
Reward bonus and welfare
8109206.6861295.83109840.758060661.76
fund
Others 1561641.68 1561641.68
Total 146537598.85 304372470.47 387232093.83 63677975.49
(3) Defined contribution plan
Opening
Item Increase Decrease Closing balance
balance
Pension 191119.00 36313110.23 36486577.27 17651.96
Unemployment insurance 5978.17 1161266.94 1166651.94 593.17
Total 197097.17 37474377.17 37653229.21 18245.13
30. Tax payable
95Item Closing balance Opening balance
Value-added tax 12427654.06 8385659.83
Enterprise income tax 4397237.32 15275100.75
Individual income tax 321367.24 501446.30
City maintenance and construction tax 1165274.08 833824.30
Real estate tax 2746182.72 2658712.33
Land use tax 1314958.95 1313359.14
Stamp duty 602599.97 711220.14
Education surcharge 832338.63 595588.79
River toll fee 1020.71 1669.18
Total 23808633.68 30276580.76
31. Non-current liabilities due within one year
Item Closing balance Opening balance
Bond payable due within one year 180900000.00 139783355.56
Long-term payable due within one year 15300471.70 15006026.71
Lease obligation due within one year 10180726.46 6631690.45
Total 206381198.16 161421072.72
32. Other current liabilities
Item Closing balance Opening balance
Notes payable endorsed not derecognized 168623428.43 145160311.19
Output Vat to be carried forward 31334933.92 45849215.48
Total 199958362.35 191009526.67
33. Long-term borrowing
(1) Category of long-term borrowing
Category Closing Balance Opening Balance
Pledged loan 417200000.00 501031874.58
Mortgage loan 5750000.00 6300000.00
Guarantee loan 40014666.67
Total 422950000.00 547346541.25
34. Lease obligation
(1) Details of lease obligation
Category Closing Balance Opening Balance
Lease payment 41103394.70 44764698.58
Less: unrecognized finance expense 17381867.02 19061162.35
96Non-current liability due within 1 year 10180726.46 6631690.45
Total 13540801.22 19071845.78
35. Long term accounts payable
Item Closing Balance Opening Balance
Long term accounts payable 22165994.87 12451396.59
Special fund payable - -
Total 22165994.87 12451396.59
35.1Category by nature
Item Closing Balance Opening Balance
Financial lease borrowings 22165994.87 12451396.59
Total 22165994.87 12451396.59
36. Provision
Nature Closing Balance Opening Balance Reason
Warranty 2968955.79 2301229.53 Service after sales
Others 402140.00 —
Total 2968955.79 2703369.53 —
37. Deferred income
(1) Category of deferred income
Item Opening Balance Increase Decrease Closing Balance
Government subsidy 90733480.29 12229265.00 5032715.22 97930030.07
Total 90733480.29 12229265.00 5032715.22 97930030.07
38.Share capital
Increase/decrease（+/-）
Opening New Closing
Item Share Transfer from
balance share others Subtotal balance
dividend capital reserve
issued
Total share
843212507.00-----843212507.00
capital
39.Capital reserves
Items Opening Balance Increase Decrease Closing Balance
Share premium 669193413.27 - - 669193413.27
Other capital reserves 47903685.11 - - 47903685.11
Total 717097098.38 - - 717097098.38
9740.Other comprehensive income
2025.1-6
Items Opening Amount for Less：Previously After-tax Balance Closing Balancethe period Less： After-tax attribute recognized in profit or loss attribute to the
before income to minority into other comprehensive income parent
tax income tax company
shareholder
I.Later can’t reclassified into
profit and loss of other - - - - - - -
comprehensive income
II. Later reclassified into
profit and loss of other 2208669.73 - - - - - 2208669.73
comprehensive income
Other comprehensive income
that can be transferred to profit 2208669.73 - - - - - 2208669.73
or loss under the equity method
Other comprehensive income
total 2208669.73 - - - - - 2208669.73
9841. Special reserve
Item Opening Balance Increase Decrease Closing Balance
Manufacturing safety 6326404.28 4794498.93 1531905.35
Total 6326404.28 4794498.93 1531905.35
42.Surplus reserves
Item Opening Closing
Increase Decrease
Balance Balance
Statutory surplus reserve 381004768.39 381004768.39
Discretionary surplus reserve 514613745.30 15212024.95 529825770.25
Total 895618513.69 15212024.95 910830538.64
43.Undistributed profits
Item 2025-06-30 2024-06-30
Closing balance of last year 673966177.84 617386488.34
Add: Adjustments to the opening balance of
undistributed profits
Including: additional retrospective adjustments
according to the new accounting standards
Change on accounting policy
Correction of prior period significant errors -
Change on combination scope under same
-
control
Other factors -
Opening balance of current year 673966177.84 617386488.34
Add: net profit attributable to shareholders of parent
79541057.88110335139.06
company in the year
Less: Provision for statutory surplus reserves 7606012.47
Provision for any surplus reserves 15212024.95 20853061.88
Provision of general risk
Dividends payable for common shares 42160625.35 25296375.21
Common stock dividends converted to equity -
Others -
Closing balance of current year 696134585.42 673966177.84
9944.Operating revenue and cost
(1) Details
Items 2025.01-06 2024.01-06
Sales revenue Cost of sales Sales revenue Cost of sales
Revenue from principle operation 2362230695.01 1993534916.62 2386331445.01 2024384701.81
Revenue from other operation 39002034.34 15692539.35 76945904.69 33520104.93
Total 2401232729.35 2009227455.97 2463277349.70 2057904806.74
(2) Main revenue and COS details
Northeast China Central China Total
Contract classification
Sales revenue Cost of sales Sales revenue Cost of sales Sales revenue Cost of sales
Classified by products 2252998648.37 1882613774.72 148234080.98 126613681.25 2401232729.35 2009227455.97
Manufacture products 1537395167.90 1232456109.82 66415398.58 55307407.00 1603810566.48 1287763516.82
Project installation 663579747.93 620344180.43 72634565.63 67635389.13 736214313.56 687979569.56
Other products and service 52023732.54 29813484.47 9184116.77 3670885.12 61207849.31 33484369.59
Classified by geography location 2252998648.37 1882613774.72 148234080.98 126613681.25 2401232729.35 2009227455.97
domestic 1896752225.12 1601702587.32 148234080.98 126613681.25 2044986306.10 1728316268.57
overseas 356246423.25 280911187.40 356246423.25 280911187.40
Timing of goods transferred 2252998648.37 1882613774.72 148234080.98 126613681.25 2401232729.35 2009227455.97
At a point 2252998648.37 1882613774.72 148234080.98 126613681.25 2401232729.35 2009227455.97
Over the time
Total 2252998648.37 1882613774.72 148234080.98 126613681.25 2401232729.35 2009227455.97
10045.Taxes and surcharges
Items 2025.01-06 2024.01-06
City construction tax 3907867.19 4191721.90
Education surcharge 2693076.94 2740655.69
Property tax 5414391.06 5346186.58
Land use tax 2712679.52 2714905.32
Vehicle and vessel tax 23497.80 49121.12
Stamp duty 1331459.29 1389274.77
Others 173423.48 257847.91
Total 16256395.28 16689713.29
46. Administrative expenses
Items 2025.01-06 2024.01-06
Employee benefit 68721370.50 62779122.02
Official expense 15774683.57 12880098.25
Depreciation expense 12022085.70 12380628.31
Maintenance and repair expense 1589653.02 2660876.68
Long-term assets amortization 5381646.45 4696609.89
Travel expense 4386732.64 2907381.61
Design consultant and test service expense 3174657.30 6150789.45
Safety production cost 1994019.39 1286894.88
Business entertaining expense 1664947.39 1358411.52
Insurance expense 967662.39 1050875.97
Advertisement expense 168642.18 317148.02
Transportation expense 4238.32 5558.70
Patent trade mark use 4696215.64 5813169.52
Other expense 2103345.07 7210817.25
Total 122649899.56 121498382.07
47.Selling expenses
Items 2025.01-06 2024.01-06
Employee benefit 68196742.22 70800262.71
Official business expense 8567397.72 8848020.72
Maintenance and repair expense 8362840.54 6826899.98
Travel expense 8396214.18 9885383.72
Business entertaining expense 3835075.56 5864137.26
Advertisement and bids expense 4957078.21 2944327.33
Depreciation expense 1107441.98 1228970.66
101Other expense 3334021.46 3761988.98
Total 106756811.87 110159991.36
48.Technology development expense
Items 2025.01-06 2024.01-06
Employee benefit 44006837.73 49067952.99
Raw material 5966648.85 11856892.82
Depreciation and amortization expense 7354601.96 7715801.12
Other expense 11838237.37 9904215.54
Total 69166325.91 78544862.47
49.Financial expenses
Items 2025.01-06 2024.01-06
Interest expenses 44006837.73 49067952.99
Less: interest income 5966648.85 11856892.82
Add: exchange loss 7354601.96 7715801.12
Add: others expenditure 11838237.37 9904215.54
Total 69166325.91 78544862.47
50.Other income
Items 2025.01-06 2024.01-06
Input VAT accelerated deduction 6740857.47 8513525.41
Government subsidy 1812199.32 7934984.31
Personal income tax handling fee refund 215957.44 145820.73
Job stability subsidy 3000.00 808165.00
Insurance premium refund 353284.24
VAT deduction for recruiting poor people
Gain on debt restructuring
Land and property tax preference
VAT return
Return of premium
Total 8772014.23 17755779.69
51.Gain on fair value change e(loss listed as “-”)
Source of gain on FV change 2025.01-06 2024.01-06
Other noncurrent financial assets -14510310.64
Total -14510310.64
52.Investment income
102Items 2025.01-06 2024.01-06
Long-term equity investment gain under equity method 24534336.83 17218698.46
Gain from disposal of long-term equity investment
Gain from FV remeasurement of the shares on obtaining control
Gain from holding of other noncurrent financial assets 4364003.20
Gain from disposal of other no-current financial assets
Gain on debt restructuring -1358198.53 910520.61
Discounting fees for bank acceptance note
Dividend received for other equity instrument held
Total 23176138.30 22493222.27
53.Credit impairment loss (loss listed as “-”)
Items 2025.01-06 2024.01-06
Bad debt loss on notes receivable 813434.62 -612136.60
Bad debt loss on receivable -10807617.01 -15906178.09
Bad debt loss on other receivable 126546.39 112093.80
Bad debt loss on long term receivable -317.80
Total -9867953.80 -16406220.89
54.Assets impairment losses (loss listed as “-”)
Items 2025.01-06 2024.01-06
Loss on impairment of inventory and cost to
-1706145.733548827.87
fulfill the contract obligation
Loss of contract asset impairment -2002432.69 1369160.31
Impairment on other non-current asset
Impairment on construction in progress
Total -3708578.42 4917988.18
55.Gain on assets disposal (loss listed as “-”)
Item 2025.01-06 2024.01-06
Gain on non-current assets disposal -63648.71 10550303.70
Including: gain on non-current assets
-63648.7110550303.70
disposal not classified as held for sale
Including: gain on fixed assets disposal -63648.71 10550303.70
gain on intangible assets disposal
gain on early derecognition of use
-40830.85
right asset
Total -63648.71 10550303.70
56. Non-operating income
103Amounts recognized into non-
Item 2025.01-06 2024.01-06 recurring profit or loss for the
period
Loss claimed reverse 64190.50 64190.50
Penalty received 2374522.71 3067629.25 2374522.71
Payables that cannot be paid 1708642.64 2123403.42 1708642.64
Gain on disposal of non-current asset 96776.27 1481.98 96776.27
Contract withdrawn and received in
advance transferred to non-operating 1224522.13 1224522.13
income
Other items 65352.90 283158.78 65352.90
Total 5534007.15 5475673.43 5534007.15
57.Non-operating expenses
Amounts recognized into
Item 2025.01-06 2024.01-06 non-recurring profit or
loss for the period
Non-current assets scrap loss 422433.35 4420396.06 422433.35
Compensation
Outward donation
Expected loss for open litigation 306937.79 516107.28 306937.79
Others 837225.94 572453.25 837225.94
Total 1566597.08 5508956.59 1566597.08
58. Income tax expenses
(1) Income tax expenses
Items 2025.01-06 2024.01-06
Current income tax expenses 15216378.89 16005090.09
Deferred income tax expenses -3773177.87 -4728395.28
Others 374987.78
Total 11443201.02 11651682.59
(2) Adjustment process of accounting profit and income tax expense
Items Current year
Consolidated total profit this year 93980627.30
Income tax expenses at applicable tax rate 14097094.10
Effect on subsidiary applied to different tax rate 1084214.38
Effect on prior period income tax adjustment 266914.32
104Items Current year
Effect on non-taxable income -61952.97
Effect on use of deductible loss from unrecognized deferred tax assets in
the prior period -4707420.79
Effect on temporary difference or deductible loss from unrecognized
deferred tax assets this year 1664312.27
Deferred tax assets recognized for prior period temporary difference -899960.29
Income tax expense 11443201.02
59.Notes to cash flow statement
(1) Cash relevant to operating activities
1) Cash received relevant to operating activities
Items 2025.01-06 2024.01-06
Deposit returned 26813637.19 19546006.90
Financial funds 12225397.08 6153512.71
Lease premium received 4308103.91 4827543.24
Interest income 3483396.12 3021045.94
Receivable from the 3rd party 160267.63
Compensation 734647.32 498732.48
Received travel expense refund 783253.97 416772.56
Frozen money refund 18333197.58
Others 4217529.17 10469902.40
Total 52565964.76 63426981.44
2) Cash paid relevant to operating activities
Items 2025.01-06 2024.01-06
Expenditure 83116319.48 82964653.33
Deposit paid 27778877.46 25735227.66
Frozen accounts 873417.33 1843055.00
Business travel borrowing 7020182.36 7177139.72
Bank handling charges 1074866.85 1611363.39
Unsettled AR/AP among non-related party 608227.80
Others 3430954.49 4116301.50
Total 123294617.97 124055968.40
(2) Cash relevant to investing activities
1) Significant cash received relevant to investing activities
Items 2025.01-06 2024.01-06
Fixed-term deposit 50000000.00
105Total 50000000.00
2) Other cash paid relevant to investing activities
Items 2025.01-06 2024.01-06
Fixed-term deposit 50000000.00
Total 50000000.00
3) Significant cash paid relevant to investing activities
Items 2025.01-06 2024.01-06
Purchase of long-term asset 58382614.61 33848073.69
Fixed-term deposit 50000000.00
Total 108382614.61 33848073.69
(3) Cash relevant to financing activities
1) Other cash received relevant to financing activities
Items 2025.01-06 2024.01-06
Notes payable to supplier 3943611.11
Sale leaseback and financial lease 2000000.00 13464836.83
Notes discounted
Total 5943611.11 13464836.83
2) Others cash paid relevant to financing activities
Items 2024.01-06 2023.01-06
Payment of guarantee money
Notes payable to supplier 11842104.45 29687571.06
Sale& leaseback and financial lease 4096677.84 12217913.52
Payment factoring 3246537.60 16703418.10
Lease premium payable 1759390.01 2031692.90
Finance lease deposit and handling fee
Discount interest on credit letter
Total 20944709.90 60640595.58
10660.Supplementary information of consolidated cash flow statement
(1) Information
Items 2025.01-06 2024.01-06
1. Adjusting net profit into cash flows of operating
————
activities:
Net profit 82537426.28 79252830.57
Add: Provision for impairment of assets 13576532.22 11488232.70
Provision for impairment of credit
Depreciation of fixed assets Amortization of
67887490.3567157882.50
mineral resources and biological assets
Depreciation of right-of-use assets 3636420.89 5049363.00
Amortization of intangible assets 7851714.06 6555921.51
Amortization of long-term deferred expenses 889457.01 850764.59
Losses on disposal of fixed assets intangible assets
63648.71-10550303.70and long-term assets (income listed with”-”)
Losses on write-off of fixed assets (income listed
325657.084418914.08with”-”)
Change of fair value profit or loss 14510310.64Financial expense (income listed with”-”) 12476605.05 17854195.43Investment loss (income listed with”-”) -23176138.30 -22493222.27
Decrease of deferred tax assets (increase listed
-716444.20-5849741.67with”-”)
Increase of deferred tax liabilities (decrease listed
-2023468.36-3913392.37with”-”)Decrease of inventories (increase listed with”-”) 164223515.73 208299575.18
Decrease of operating receivables (increase listed
-288615900.68-72167535.80with”-”)
Increase of operating payables (decrease listed
-39969030.30-333049779.14with”-”)
Others
Net cash flows arising from operating activities -1032514.46 -32585984.75
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 - -
107Items 2025.01-06 2024.01-06
3. Net increase (decrease) of cash and cash
——
equivalent
Closing balance of cash 779437327.55 550294029.37
Less: Opening balance of cash 951579683.60 670440335.98
Add: Closing balance of cash equivalent - -
Less: Opening balance of cash equivalent - -
Net increase of cash and cash equivalent -172142356.05 -120146306.61
(2) Cash and cash equivalents
Items 2025.01-06 2024.01-06
Cash 779437327.55 951579683.60
Including: Cash on hand 8767.32 28585.88
Bank deposit used for paying at any moment 779437327.55 951579683.60
Other monetary fund for paying at any moment
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 779437327.55 951579683.60
Cash and cash equivalents with restriction within the
--
Company and its subsidiaries of the group
(3) Monetary fund not belonging to cash and cash equivalent
Items 2025.01-06 2024.01-06 Reasons
Fixed term deposit 50000000.00 168000000.00 Held to maturity
Guarantee money for bank acceptance
note 13545500.81 36876793.17 Guarantee money
Guarantee money for guarantee letter 7035512.05 15800743.03 Guarantee money
Frozen 6650265.95 4433975.45 Frozen
Rural workers’ salary account
restriction 3191024.44 250983.28 Special account
Interest receivable 217708.30 4026730.52 Held to maturity
Rural workers’ Guarantee money 351057.41 Guarantee money
Total 80991068.96 229389225.45 —
61.Change of shareholder’s equity
None
62.Monetary category of foreign currency
108(1) Monetary category of foreign currency
Closing Balance Exchange
Item Closing Balance (RMB)
(foreign currency) Rate
Cash — — —
Including：USD 2080426.73 7.1586 14892942.79
JPY 239935087.00 0.049594 11899340.70
Euro 249710.42 8.4024 2098166.83
HK$
Accounts receivable — — —
Including: USD 7672082.91 7.1586 54921372.72
JPY 53734018.00 0.049594 2664884.89
Euro 841762.80 8.4024 7072827.75
GBP
Accounts payable — — —
Including: USD 1095651.47 7.1586 7843330.61
GBP
JPY 83416134.40 0.049594 4136939.77
Other accounts payable — — —
Including: JPY 8304510.00 0.049594 411853.87
63.Lease
(1) As a lessee
Items 2025.01-06 2024.01-06
Interest expense on lease liabilities 836389.40 1749714.52
Short-term lease expense recognized in income statement 839203.46 642606.08
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 1729755.25 1454819.72
Cash inflow from sale and leaseback transactions 765653.09 -
Cash outflow from sale and leaseback transactions 2426991.15 -
(1) As a lessor
Operating lease
Include: income related to variable lease
Items Lease income payments not included in lease payment
receivable
Office and plant 9871506.90 -
109Include: income related to variable lease
Items Lease income payments not included in lease payment
receivable
Apartment -
Total 9871506.90 -
VIII .Research and development expense
Items 2025.01-06 2024.01-06
Employee benefit 44006837.73 49067952.99
Raw material 5966648.85 11856892.82
Depreciation and amortization expense 7354601.96 7715801.12
Other expense 11838237.37 9904215.54
Total 69166325.91 78544862.47
Expensed R&D 69166325.91 78544862.47
IX. Change of Consolidation Scope
The scope of consolidation at the end of the reporting period increased by one compared to the
beginning of the year which is Dalian Bingshan Engineering & Trading (Hong Kong) Co. Ltd.X. Interest in other entity
1.Equity of subsidiaries
(1) Organization structure of group company
Registered Main Shareholding (%)
Name of subsidiaries capital business Registered address Business nature
Obtaining
（10K） address Direct Indirect method
Dalian Bingshan Group
30000.00 Dalian Dalian Installation 100 - Establish
Engineering Co. Ltd.Chengdu Bingshan
Refrigeration Engineering 1000.00 Chengdu Chengdu Service - 51 Establish
Co. Ltd.Dalian Bingshan Group
1800.00 Dalian Dalian Trading 100 - Establish
Sales Co. Ltd.Dalian Bingshan Air-
conditioning Equipment Co. 8254.00 Dalian Dalian Manufacturing 100 - Establish
Ltd.Dalian Bingshan Guardian 5070.07 Dalian Dalian Manufacturing 100 - Establish
110Registered Main Registere Shareholding (%)Name of subsidiaries capital business d address Business nature
Obtaining
Automation Co. Ltd. 10K address method （ ）
Dalian Bingshan-
RYOSETSU Quick Freezing 5757.87 Dalian Dalian Manufacturing 100 - Establish
Equipment Co. Ltd.Wuhan New World
Refrigeration Industrial Co. 20000.00 Wuhan Wuhan Manufacturing 100 - Acquisition
Ltd.Wuhan New World Air-
conditioning Refrigeration 3500.00 Wuhan Wuhan Installation - 100 Establish
Engineering Co. Ltd
Wuhan Lanning Energy
2200.00 Wuhan Wuhan Trading - 100 Acquisition
Technology Co. Ltd.Dalian Universe Thermal
8000.00 Dalian Dalian Manufacturing 55 - Acquisition
Technology Co. Ltd.Dalian Bingshan
Engineering & Trading Co. 3000.00 Dalian Dalian Service 100 - Acquisition
Ltd
Dalian Bingshan
Hong Hong
Engineering & Trading 320.00 Kong Kong Service 100 Acquisition
(Hong Kong) Co. Ltd.Sonyo Compressor
44239.67 Dalian Dalian Manufacturing 100 - Acquisition
(Dalian)Co. Ltd.
Sonyo Refrigeration System
10500.00 Dalian Dalian Manufacturing 100 - Acquisition
(Dalian) Co. Ltd.
Sonyo Refrigeration
21208.47 Dalian Dalian Manufacturing 100 - Acquisition
(Dalian) 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
（1）Change of equity share in subsidiary
None.
1113.Equity in joint venture arrangement or associated enterprise
（1）The important affiliated companies
Shareholding (%)
Name of joint ventures or Main Registered Business Accounting
affiliated companies business address address nature methods
Direct Indirect
Dalian Bingshan Metal Equity
Technology Co. Ltd. Dalian Dalian Manufacturing 49.00 - 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.The key financial
information of affiliated companies
Closing Opening
balance/Current balance/Last
period period
Items
Dalian Bingshan Metal Technology Co.Ltd.Current assets 278789258.68 348867456.94
Including: Cash and cash equivalents
Non-current assets 40260431.18 38884813.91
Total assets 319049689.86 387752270.85
Current liabilities 53180522.14 43335222.77
Non-current liabilities
Total liabilities 53180522.14 43335222.77
Total net asset
Minority interests
Equity to the parent company 265869167.72 344417048.08
Share of net assets according to the shareholding 130275892.18 172208524.04
proportions
Adjusting events
—Goodwill 19269770.94 19269770.94
—Unrealized profits of insider trading
112Closing Opening
balance/Current balance/Last
period period
Items
Dalian Bingshan Metal Technology Co.Ltd.--Others
Book value of equity investment of affiliated
companies 149477458.42 187960208.13
Fair value of equity investment with public offer
Operating income 223050763.81 218341334.10
Financial expense
Income tax expense
Net profit 27838652.85 30169947.69
Net profit of discontinuing operation
Other comprehensive income
Total comprehensive income 27838652.85 30169947.69
The current dividends received from joint
ventures
（3） Summary financial information of insignificant affiliated companies
Items 2025.01-06 2024.01-06
Affiliated company — —
Total book value of investment of affiliated
companies 353262648.48 346068692.14
The total of following items according to the
shareholding proportions — —
Net profit 32372063.31 12308014.93
Other comprehensive income 32372063.31 12308014.93
Total comprehensive income
（4） Significant restrictions of the ability of affiliated companies transferring funds to the
Company.No.
（5） Contingency related to joint venture or affiliated company need to be disclosed.
No.XI. Government Grant
Liability item involved in government grant
113Into non- The value
Items Opening Increase operating Into other offset cost Closing Related to Balance income income and Balance asset/incomeexpense
Deferred asset
income 77249659.43 12099165 4068711.54 85280112.89
Deferred
income 13483820.86 130100 964003.68 12649917.18 asset/income
90733480.2912229265.005032715.2297930030.07—
1. Recognized in income statement
Items 2025.01-06 2024.01-06
Other income 1812199.32 7934984.31
XII. 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 June 302025 the Company’s assets and liabilities dominated in foreign currency are listed
114in RMB as following：
Items June 30 2025 January 1 2025
Monetary fund-USD 14892942.79 11895447.99
Monetary fund-JPY 11899340.70 18978914.14
Monetary fund- EURO 2098166.83 128522.55
Monetary fund- HKD - 84495.39
Receivable -USD 54921372.72 52044382.54
Receivable -GBP 1282811.66
Receivable -JPY 2664884.89 7974729.62
Receivable - EURO 7072827.75 4894436.83
Payables -USD 7843330.61 2476583.44
Payables -JPY 4136939.77 3285251.61
Other payables - JPY 411853.87 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 603850000.00 at fixed interest rate as of June 302025(borrowings of RMB
686000000.00 in December 312024).
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
The 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
115exposure.
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 June 30 2025 the top five customers of receivable accounts balance are 283571237.76Yuan
representing 9.70% 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 June30 2025 the credit limit still available is 843.84 million
Yuan(711.87 million Yuan 2024) and short-term credit limit available is 843.84 million Yuan(711.87
million Yuan 2024).As at June 30 2025 the group’s financial assets and financial liabilities in line with non-discounted cash
flow of the contracts as following：
Currency unity:10kYuan
Items Within 1 year 1-2 years 2-5 years Over 5 years Total
Financial Assets
Cash and cash in bank 86042.84 86042.84
Notes receivable 33179.92 33179.92
Accounts receivable 174593.64 174593.64
Financing receivable 26791.96 26791.96
Other Receivable 5337.56 5337.56
116Contract asset 18805.35 18805.35
Other current asset 2054.52 2054.52
Other non-current financial
168.39
asset 168.39
Long-term receivable 5.93 7.59 0.48
14.00
Financial Liabilities
Short-term loan 15003.87 15003.87
Notes Payable 50607.48 50607.48
Accounts payable 174824.99 174824.99
Other payable 21988.40 21988.40
Employee’s payable 6369.62 6369.62
Tax payable 2380.86 2380.86
Non-current liability due
20638.12 20638.12
within 1 year
Long-term loan 16950.00 24770.00 575.00 42295.00
Lease obligation 141.71 1212.37 1354.08
Long-term payable 544.37 690.27 981.96 2216.60
2. Financial asset transfer
(1) Classified by transfer method
Transfer method Nature Amount Derecognition Basis for derecognition
Bank acceptance bill with high All risk and reward have been
Endorsement of a bill 220482795.79 Y
credit rating transferred
Bank acceptance bill with high All risk and reward have been
Discounting a bill 24923475.96 Y
credit rating transferred
Endorsement/discount Bank/trade acceptance bill with Retain mostly risk and reward including
169727187.43 N
ing of a bill non-high credit rating default risk
All risk and reward have been
Factoring Receivable Y
transferred
Total — 415133459.18 — —
117(2) Derecognized financial asset due to transfer
Derecognized Gain/loss from
Item Transfer method
Amount derecognition
Bank acceptance bill with
Endorsement of a bill 220482795.79
high credit rating
Bank acceptance bill with
Discounting a bill 24923475.96 -73314.55
high credit rating
Factoring without
Receivable -
recourse
Total — 245406271.75 -73314.55
XIII. Related Parties Relationship and Transactions
i. Related parties’ relationship
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
Registered
Registered Business Shareholding Voting power
Parent company capital
address nature percentage (%) percentage (%)
（10K）
Dalian Bingshan
Dalian Manufacture 15858.00 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
118licenses needed)
The Company’s ultimate controller is Dalian Bingshan Group Co. Ltd.
2. 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
Keinin-Grand Ocean Thermal Technology (Dalian) Co. Ltd. Affiliated company of the Company
Dalian Fuji Bingshan Vending Machine Co. Ltd. Affiliated company of the Company
Dalian Fuji Bingshan Vending Machine Sales Co. Ltd. Affiliated company of the Company
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 Co. Ltd. Affiliated company of the Company
Wuhan Sikafu Power Control Equipment Co. Ltd. Affiliated company of its subsidiary
Dalian Bingshan Group Huayida Commercial Factoring Co. LTD Subsidiary of its affiliated company
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 Engineering Co. Ltd. Subsidiary of its affiliated company
Keinin-Grand Ocean New energy Auto Parts (Changchun) Co. LTD Subsidiary of its affiliated company
4. Other related parties
Name of related party Related party relationship
Company under direct/indirect Control of Panasonic Co. Both parties are under the control of or significant
Ltd influence by the same party
Sanyo Corporation Both parties are under the control of or significant influence by the same party
119Name of related party Related party relationship
Panasonic Corporation of China Co. Ltd Directors of the Company also serve as directors
Dalian Spindle Environmental Facilities Co. Ltd. Both parties are under the control of or significant influence by the same party
LINDE HYDROGEN FUELTECH (DALIAN) CO. LTD. Both parties are under the control of or significant influence by the same party
Dalian Fuji Bingshan Control System Co. Ltd. Both parties are under the control of or significant influence by the same party
BAC Dalian Co. Ltd. Both parties are under the control of or significant influence by the same party
Dalian Bingshan Wisdom Park Co. Ltd Both parties are under the control of or significant influence by the same party
Dalian Shentong Electric Co. Ltd. Both parties are under the control of or significant influence by the 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
Sonyo Cold Chain (Dalian) Equipment (Wuhan) Co. LTD Under control of the same ultimate controlling party
Dalian Kangyang Industry Group Co. LTD The directors and senior officers of the Company shall serve as the directors and senior officers of the Company
Dalian State-owned Assets Investment and Management An associated natural person serves as a director of the
Group Co.Ltd. 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. Panasonic ElectricEquipment (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
120India 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 2025.01-06 2024.01-06
Dalian Bingshan Metal Technology Co. Ltd. Purchases of goods 27077598.55 30782824.32
Sonyo Cold Chain (Dalian)Co. Ltd Purchases of goods 41445471.06 27635764.08
Jiangsu Jingxue Insulation Technology Co. Ltd. Purchases of goods 7600991.19 7744955.77
BAC Dalian Co. Ltd. Purchases of goods 12891976.50 4721558.13
Company under direct/indirect Control of Panasonic Co. Ltd Purchases of goods 21681272.45 6077302.57
Dalian Bingshan Part Technology Co. LTD. Purchases of goods 7335508.36 18864725.92
Dalian Honjo Chemical Co. Ltd Purchases of goods 1392076.63 3902513.39
Bingshan Technology Service （Dalian） Co. Ltd. Purchases of goods 9238810.28 1729423.88
Dalian Fuji Bingshan Control System Co. Ltd. Purchases of goods 1999595.78 111504.43
Alphavita Bio-scientific (Dalian) Co. Ltd. Purchases of goods 93428.30
Dalian Shentong Electric Co. Ltd. 4010542.09 3788058.16
Dalian Fuji Bingshan Vending Machine Co. Ltd Purchases of goods 18241.71 1158.38
Dalian Spindle Environmental Facilities Co. Ltd Purchases of goods 4180530.98 349724.76
Dalian Bingshan Wisdom Park Co. Ltd Purchases of goods 1135740.74
Dalian Bingshan Group Co. Ltd. Receive labor services 1886.80
Shanghai Jingxue Freezing Equipment Co. Ltd Purchases of goods 53008.85
Dalian Bingshan Group Huahuida Financial Leasing Co. Ltd Purchases of goods 7208.11 1715.65
Dalian Fuji Bingshan Vending Machine Sales Co. Ltd Purchases of goods 19469.03
(2) Sales of goods/ labour services provision
Related party Content 2025.01-06 2024.01-06
Company under direct/indirect Control of Panasonic Co. Ltd Sales of goods 163578247.40 144059445.50
Sonyo Cold Chain (Dalian) Co. Ltd Sales of goods 68651671.06 53547002.76
BAC Dalian Co. Ltd Sales of goods 61674033.25 44032558.17
Bingshan Technology Service （Dalian） Co. Ltd. Sales of goods 8398179.02 26992915.42
Dalian Fuji Bingshan Vending Machine Co. Ltd Sales of goods 3221321.30 4884735.34
Dalian Bingshan Wisdom Park Co. Ltd Sales of goods 383661.03 4715774.63
MHI Bingshan Refrigeration (Dalian) Co. Ltd. Sales of goods 4776622.01 3738455.62
Alphavita Bio-scientific (Dalian) Co. Ltd. Sales of goods 1615598.37 1680522.42
Dalian Spindle Environmental Facilities Co. Ltd Sales of goods 436300.59 660413.34
121Related party Content 2025.01-06 2024.01-06
Dalian Honjo Chemical Co. Ltd Sales of goods 2173330.51 34400.88
Dalian Bingshan Part Technology Co. LTD Sales of goods 1413576.39 1479174.40
Linde Hydrogen Fueltech (Dalian) Co. Ltd Sales of goods 0.00 66878.51
Dalian Fuji Bingshan Control System Co. Ltd. Sales of goods 1929667.17 251472.27
Dalian Bingshan Metal Technology Co. Ltd. Sales of goods 0.00 163716.81
Dalian Shentong Electric Co. Ltd Sales of goods 249203.55 112355.73
Dalian Jingxue Freezing Equipment Co. Ltd Sales of goods 0.00 41477.53
Dalian Bingshan Group Huahuida Financial Leasing Co. Ltd Sales of goods 2991150.45
Wuhan Sikafu Power Control Equipment Co. Ltd. Sales of goods 70027.60
Sonyo Cold Chain (Dalian) Equipment (Wuhan) Co. LTD Sales of goods 1517802.35
Linde Engineering (Dalian) Co. LTD Sales of goods 8321.10
Dalian Fuji Bingshan Control System Co. Ltd. Sales of goods 249213.96
Dalian Bingshan Group Co. Ltd. Sales of goods 4391.14
(3) Assets Lease
Assets rent out
Current
Lessee Category of
Last period Lease
assets rent out period Lease Income
Income
Dalian Bingshan Wisdom Park Co. Ltd Land/property 4506673.78 4506673.78
MHI Bingshan Refrigeration (Dalian) Co. Ltd. Plant 1904761.90 1904761.90
Sonyo Cold Chain (Dalian)Co. Ltd Plant /Employee 1281079.83 1281178.90
dormitory
Office/ Plant
Company under direct/indirect Control of Panasonic
Co. Ltd /Employee 381668.58
dormitory
Dalian Jingxue Freezing Equipment Co. Ltd Plant and office 381454.77 392463.94
Wuhan Sikafu Power Control Equipment Co. Ltd Plant 496132.49 496132.49
Bingshan Technology Service （Dalian） Co. Ltd. Plant and office 147436.30 163259.51
Dalian Bingshan Part Technology Co. Ltd. Plant and office 385321.13 461009.22
Dalian Spindle Environmental Facilities Co. Ltd. office 880.72 5284.40
Assets under lease
Category of assets Lease premium paid
Lessor
rent in 2025.01-06 2024.01-06
Dalian Bingshan Group Huahuida Financial
Leasing Co. Ltd Fixed asset 2742500.00 1459606.47
Sonyo Cold Chain (Dalian)Co. Ltd Plant 1700966.97 1700966.97
122(Continued)
Interests on lease liabilities Increased right-of-use assets
Lessor
2025.01-062024.01-062025.01-062024.01-06
Dalian Bingshan Group Huahuida
Financial Leasing Co. Ltd 765653.09 456010.73 13053097.33 0.00
Sonyo Cold Chain (Dalian)Co.Ltd 157060.35 198459.63
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 2892533.59 436870.37
Group Co.Ltd.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 VI. 33 longterm borrowings”.Funds borrow from /lent to related party
Name of the related party Amount Starting date Ending date Explanation
Funds in
Dalian Bingshan Group Project fund
Co. Ltd. 40000000.00 2016.03.14 2026.03.13 investment
Dalian Bingshan Group
Huahuida Financial Sale and 13805309.73 2021.11.10 2026.11.09
Leasing Co.Ltd leaseback
Dalian Bingshan Group
Huahuida Financial Sale and 13053097.35 2025.01.21 2030.01.20
Leasing Co.Ltd leaseback
Dalian Bingshan Group
Huahuida Financial Sale and 2000000.00 2024.01.24 2026.01.23
Leasing Co.Ltd leaseback
Dalian Bingshan Group
Huahuida Financial Sale and 8600000.00 2024.07.26 2026.07.25
Leasing Co.Ltd leaseback
Dalian Bingshan Group
Huahuida Financial 1000000.00 2025.03.14 2028.03.13
Leasing Co.Ltd
123Dalian Bingshan Group
Huahuida Financial 1000000.00 2025.04.29 2028.04.28
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
Dalian Bingshan Group
Huayida Commercial 6000000.00 2025.01.15 2027.01.14 Factoring
Factoring Co. Ltd
Dalian Bingshan Group
Huayida Commercial 545993.00 2025.01.17 2025.07.16 Factoring
Factoring Co. Ltd
Dalian Bingshan Group
Huayida Commercial 5000000.00 2025.04.28 2026.04.27 Factoring
Factoring Co. Ltd
Dalian Bingshan Group
Huayida Commercial 2000000.00 2025.05.21 2027.05.20 Factoring
Factoring Co. Ltd
Dalian Bingshan Group
Huayida Commercial 975000.00 2025.06.23 2028.06.22 Factoring
Factoring Co. Ltd
iii. Balances with Related party
1241.Accounts receivable due from related parties
Closing Balance
Item Related party Bad debt
Book Balance
Provision
Accounts receivable Sonyo Cold Chain 88752251.47 5484062.83
(Dalian)Co.Ltd
Accounts receivable BAC Dalian Co. Ltd 30639734.60 2150909.37
Accounts receivable Company under direct/indirect 38657659.77 1332758.70
Control of Panasonic Co.Ltd
Accounts receivable Sonyo Cold Chain Equipment 466857.19 33705.87
(Wuhan) Co. Ltd.Accounts receivable Bingshan Technology Service 8774052.30 595543.60
（Dalian） Co. Ltd.
Accounts receivable Dalian Bingshan Wisdom Park 11690064.58 1702196.90
Co. Ltd
Accounts receivable Dalian Fuji Bingshan Vending 5234987.52 367496.13
Machine Co. Ltd
Accounts receivable Dalian Bingshan Group Huahuida 2798562.50 2798562.50
Financial Leasing Co.Ltd
Accounts receivable MHI Bingshan Refrigeration 4517523.65 317130.17
(Dalian) Co.Ltd.
Accounts receivable Alphavita Bio-scientific (Dalian) 2694012.55 255093.42
Co. Ltd.Accounts receivable Dalian Health and Wellness 1693997.95 118988.86
Industry Group Co. Ltd
Accounts receivable Linde Hydrogen Fueltech 121000.44 20255.47
(Dalian) Co. Ltd
Accounts receivable Dalian Spindle Environmental 378319.85 26558.05
Facilities Co. Ltd
Accounts receivable Dalian Fuji Bingshan Control 1130877.60 79387.61
System Co. Ltd.Accounts receivable Dalian Shentong Electric Co. Ltd 120906.40 8487.63
Accounts receivable Jiangsu Jingxue Insulation
Technology Co.Ltd.Accounts receivable Dalian Bingshan Part Technology 925983.49 25300.74
Co.LTD
Accounts receivable Linde Engineering (Dalian) Co. 31547.17 2214.61
LTD
Other receivable Bingshan Technology Service 400000.00 14640.00
（Dalian） Co. Ltd.
Other receivable Sonyo Cold Chain (Dalian)Co.Ltd
Other receivable Sonyo Cold Chain Equipment 567064.72 20754.57(Wuhan) Co. Ltd.Other receivable Dalian Bingshan Group Huahuida 2142.00 78.40Financial Leasing Co. Ltd
Contract asset Dalian Bingshan Group Huahuida 432562.50 30365.89Financial Leasing Co. Ltd
Contract asset Dalian Bingshan Metal Technology Co.Ltd
125Contract asset Dalian Health and Wellness Industry Group Co. Ltd
Prepayment Dalian Shentong Electric Co. Ltd 9721332.36
Prepayment Dalian Fuji Bingshan Control 1281087.57
System Co. Ltd.Prepayment Company under direct/indirect 1229443.92
Control of Panasonic Co.Ltd
Prepayment Bingshan Technology Service 1774013.54
（Dalian） Co. Ltd.
Prepayment BAC Dalian Co. Ltd
Prepayment Dalian Bingshan Wisdom Park
Co. Ltd
Prepayment Dalian Fuji Bingshan Vending 34115.00
Machine Sales Co. Ltd
Prepayment Dalian Bingshan Group Huahuida 1450.34
Financial Leasing Co. Ltd
(Continued)
Opening Balance
Item Related party Bad debt
Book Balance
Provision
Sonyo Cold Chain
Accounts receivable 70233768.67 5769841.07(Dalian)Co.Ltd
Accounts receivable BAC Dalian Co. Ltd 29726955.86 2086832.30
Company under direct/indirect
Accounts receivable 23124134.38 692390.83Control of Panasonic Co.Ltd
Accounts receivable Sonyo Cold Chain Equipment 9290724.88 653141.38(Wuhan) Co. Ltd.Bingshan Technology Service
Accounts receivable 8120883.28 570086.01
（Dalian） Co. Ltd.
Dalian Bingshan Wisdom Park
Accounts receivable 7476477.33 1390028.46Co. Ltd
Dalian Fuji Bingshan Vending
Accounts receivable 5051832.96 354638.67Machine Co. Ltd
Dalian Bingshan Group Huahuida
Accounts receivable 4224312.50 296546.74Financial Leasing Co.Ltd
MHI Bingshan Refrigeration
Accounts receivable 3105512.32 218006.97(Dalian) Co.Ltd.Alphavita Bio-scientific (Dalian)
Accounts receivable 2265320.79 246626.01Co. Ltd.Dalian Health and Wellness
Accounts receivable 1693997.95 118918.66Industry Group Co. Ltd
Linde Hydrogen Fueltech
Accounts receivable 786500.99 223828.69(Dalian) Co. Ltd
Dalian Spindle Environmental
Accounts receivable 765477.31 53736.51Facilities Co. Ltd
Dalian Fuji Bingshan Control
Accounts receivable 54200.00 7850.40System Co. Ltd.Accounts receivable Dalian Shentong Electric Co. Ltd 50652.00 3555.77
126Accounts receivable Jiangsu Jingxue Insulation 3570.00 1051.32Technology Co.Ltd.
Other receivable Bingshan Technology Service 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 30365.89Financial Leasing Co.Ltd
Dalian Bingshan Metal
Contract asset 9250.00 649.35Technology Co. Ltd.Dalian Health and Wellness
Contract asset 1000.00 70.20Industry Group Co. Ltd
Prepayment Dalian Shentong Electric Co. Ltd 11949284.99
Prepayment Dalian Fuji Bingshan Control 2127955.54System Co. Ltd.Prepayment Company under direct/indirect 1632646.65Control of Panasonic Co.Ltd
Bingshan Technology Service
Prepayment 1327651.07（Dalian） Co. Ltd.Prepayment BAC Dalian Co. Ltd 216202.86
Prepayment Dalian Bingshan Wisdom Park 23888.59Co. Ltd
2.Accounts Payable due from Related Party
Closing Opening
Item Related party
Balance Balance
Accounts Payable Jiangsu Jingxue Insulation Technology 38851419.61 51228592.31Co.Ltd
Accounts Payable Sonyo Cold Chain (Dalian)Co.Ltd 25890483.33 18271180.03
Accounts Payable BAC Dalian Co. Ltd 12246179.01 14755585.47
Accounts Payable Dalian Bingshan Metal Technology 12206584.99 11802602.36Co.Ltd
Accounts Payable Dalian Honjo Chemical Co. Ltd. 3094878.46 7135583.64
Accounts Payable Dalian Bingshan Part Technology Co.LTD 2587809.38 4717413.12
Accounts Payable Jiangsu Jingxue Insulation Environmental 2026200.00 2026200.00Engineering Co.Ltd
Accounts Payable Dalian Shentong Electric Co. Ltd 1758722.25
Accounts Payable Company under direct/indirect Control of 286380.78 1167608.32Panasonic Co.Ltd
Accounts Payable Bingshan Technology Service （Dalian） 341977.98 742017.35Co. Ltd.Accounts Payable Dalian Spindle Environmental Facilities 546194.57 498527.44Co. Ltd
Accounts Payable Dalian Fuji Bingshan Control System Co. 322272.97 322272.97Ltd.Accounts Payable Jiangsu Jingxue Insulation Environmental 207616.60Engineering Co.Ltd
Accounts Payable Dalian Fuji Bingshan Vending Machine 6873.43 5907.73Co. Ltd
127Other payable Dalian Bingshan Group Huayida 7273108.45 7986275.11Commercial Factoring Co. Ltd.
Other payable Dalian Bingshan Group Huahuida 5500000.00Financial Leasing Co. Ltd.Other payable Company under direct/indirect Control of 3030112.18 3416919.14Panasonic Co.Ltd
Other payable Dalian State-owned Assets Investment and 3411248.06 434356.75Management Group Co.Ltd.Other payable Dalian Jingxue Freezing Equipment Co. 70000.00 70000.00Ltd.Other payable Sanyo Corporation 63232.42
Other payable Bingshan Technology Service （Dalian） 14946.50Co. Ltd.Other payable Sonyo Cold Chain (Dalian)Co.Ltd 618018.00
Other payable Dalian Bingshan Wisdom Park Co. Ltd 5204.00
Other payable Wuhan Sikafu Power Control Equipment 65495.00Co. Ltd
Non-current liability Dalian Bingshan Group Huayida
due within 1 year Commercial Factoring Co. Ltd. 9107732.23
Non-current liability Dalian Bingshan Group Huahuida
due within 1 year Financial Leasing Co. Ltd 8298427.74 5898294.48
Long-term payable Dalian Bingshan Group Huahuida Financial Leasing Co. Ltd 3254466.16 2649273.56
Long-term payable Dalian Bingshan Group Huayida Commercial Factoring Co. Ltd. 14161739.46 1557654.53
Short-term Dalian Bingshan Group Huayida
borrowing Commercial Factoring Co. Ltd. 4742850.55 3790267.28
Contract liability Company under direct/indirect Control of Panasonic Co.Ltd 132587.77
Dalian Fuji Bingshan Control System Co.Contract liability 525146.29 38509.12
Ltd.Contract liability Sonyo Cold Chain (Dalian)Co.Ltd 17242.45 15258.81
Contract liability Dalian Honjo Chemical Co. Ltd. 10626.23
Contract liability Bingshan Technology Service （Dalian） 2096674.27Co. Ltd.Other current Company under direct/indirect Control of
liability Panasonic Co.Ltd 12003.20
Other current Dalian Fuji Bingshan Control System Co.liability 5006.18Ltd.Other current
liability Sonyo Cold Chain (Dalian)Co.Ltd 1983.64
Other current
liability Dalian Honjo Chemical Co. Ltd. 1381.41
iv. Related Party Commitment
None
v. Others
128None
XIV. Share-Based Payment
None
XV. Contingency & commitment
1. Commitment
None
2. Contingency
Up to June 30 2025 guarantee obligations undertaken by the Company due to financial
leasing.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 June 30 2025 the balance of the
guarantee obligation of the financial lease is RMB1.2072 million 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 June 30 2025 the balance of the guarantee obligation of
the financial lease is RMB 5.4212million Yuan.Dalian 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-
129RYOSETSU 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 June 30 2025 the balance of the
guarantee obligation of the financial lease is RMB 9.1385million Yuan.Until June 30 2025 the balance of all guarantee obligation of the financial lease is RMB
15.7667 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 June 2024.XVI. Events after the Balance Sheet Date
The Company has no significant subsequent event after the balance sheet date.XVII. Other Significant Events
1. Error correction and effect in previous period
No.
2. Debt Restructuring
No.
3. Asset exchange
(1) The exchange of non-monetary assets
No.
(2) The exchange of other assets
No.
4. Annuity Plan
No.
5. Operation termination
No.
6. Segment Information
The management of the group divided the business into 2 segments based on the geographic area:
130Northeast 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.
2). 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.
(2) The financial information of reporting segments
Amount unit ： Yuan
Items Northeast China Central China Offset Total
1 Operating income 2512376582.95 148234080.98 -259377934.58 2401232729.35
2 Cost 2135750199.83 126613681.25 -253136425.11 2009227455.97
Impairment loss on assets -3209460.34 -1009515.19 510397.11 -3708578.42
Impairment loss on credit -12676772.11 1740489.39 1068328.92 -9867953.80
Depreciation and amortization 74608887.96 4766737.34 79375625.30
Investment income from associates
and joint venture 25592590.79 1801438.30 -2859692.26 24534336.83
Operating profits(loss) 88977732.73 6283860.80 -1280966.23 93980627.30
Income tax 10165093.88 1041298.24 236808.90 11443201.02
Net profit(loss) 78812638.85 5242562.56 -1517775.13 82537426.28
Total assets 9883261586.47 475628129.56 -2905357305.02 7453532411.01
Total liabilities 4502625077.22 395401765.96 -675512593.88 4222514249.30
(3) Others
None
1317. 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.XVIII. Notes to the Main Items of the Financial Statements of Parent Company
1. Accounts receivable
(1) Bad debt provisions under accounting aging analysis method:
Aging Closing Balance Opening Balance
Within 1 year 334419871.73 252493482.65
1-2 years 147643689.48 168666036.29
2-3 years 62269851.29 55975990.70
Over 3 years 147783330.69 148746595.23
3-4 years 58587035.45 38330982.87
4-5 years 31277402.44 55105024.02
Over 5 years 57918892.80 55310588.34
Total 692116743.19 625882104.87
(2) Accounts receivable category
Closing Balance
Item Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision on group 692116743.19 100.00 161513167.75 23.34 530603575.44
(1) Accounting age as 474695386.03 68.59 161513167.75 34.02 313182218.28
characters
(2) Related party within 217421357.16 31.41 217421357.16
consolidation scope
Total 692116743.19 100.00 161513167.75 23.34 530603575.44
(Continued)
Opening Balance
Item Booking balance Provision Booking
Amount % Amount % balance
Bad debt provision on group 625882104.87 100.00% 158917243.15 25.39 466964861.72
(1) Accounting age as
characters 474142917.60 75.76% 158917243.15 33.52 315225674.45
(2) Related party within
consolidation scope 151739187.27 24.24% 151739187.27
Total 625882104.87 100.00% 158917243.15 25.39 466964861.72
132(3) Bad debt provision
Change during the year
Closing
Category Opening balance Accrued Collected/
Written-off Other Balance
reversed
Bad debt
158917243.152595924.609595.009595.00161513167.75
provision
Total 158917243.15 2595924.60 9595.00 9595.00 161513167.75
(4) Based on closing balance ranking sum of the top five significant receivable and contract
asset are179 997619.29Yuan representing 22.55% of total receivables and contract asset at the
year end. 68724326.5Yuan bad debt provision is provided respectively.
2. Other Receivables
Item Closing Balance Opening Balance
Interest receivable - -
Dividend receivable 3767645.29 100000000.00
Other receivable 32020186.15 28957016.22
Total 35787831.44 128957016.22
2.1 Dividend receivable
Item Closing Balance Opening Balance
Sonyo Compressor (Dalian)Co. Ltd. 100000000.00
Jiangsu Jingxue Insulation Environmental Engineering Co. Ltd 3220344.00
Dalian Bingshan Group Huahuida Financial Leasing Co. Ltd 547301.29
Total 3767645.29 100000000.00
2.2 Other receivable
(1) The category of other receivables
Items Closing Balance Opening Balance
Receivables and payables 23517835.18 20032160.00
Petty cash 1476505.48 904835.68
Deposits 7482237.78 7181055.11
Others 128825.00 1306589.74
Total 32605403.44 29424640.53
(2) Other receivable listed by account aging
133Aging Closing Balance Opening Balance
Within 1 year 5809913.98 4758618.79
1-2 years 2316302.83 1177004.63
2-3 years 1177004.63 1805617.00
Over 3 years 23302182.00 21683400.11
3-4 years 1705617.00 115000.00
4-5 years 50000.00 20210000.00
Over 5 years 21546565.00 1358400.11
Total 32605403.44 29424640.53
(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
on group 32605403.44 100.00 585217.29 1.79 32020186.15
(1) Accounting age
as characters 12605403.44 38.66 585217.29 4.64 12020186.15
(2) Related party
within
consolidation 20000000.00 61.34 20000000.00
scope
Total 32605403.44 100.00 585217.29 1.79 32020186.15
(continued)
Opening Balance
Item Booking balance Provision Booking value
Amount % Amount %
Bad debt provision on
individual - - - - -
Bad debt provision on
group 29424640.53 100.00 467624.31 1.59 28957016.22
(3) Accounting age as
characters 9392480.53 31.92 467624.31 4.98 8924856.22
(4) Related party
within 20032160.00 68.08 20032160.00
consolidation scope
134Total 29424640.53 100.00 467624.31 1.59 28957016.22
1) Bad debt provisions on group basis
Closing Balance
Aging Provision for bad Drawing Proportion
Accounts receivable
debts (%)
Within 1 year 5809913.98 212642.85 3.66%
1-2 years 2316302.83 84776.68 3.66%
2-3 years 1177004.63 43078.37 3.66%
3-4 years 1705617.00 62425.58 3.66%
4-5 years 50000.00 1830.00 3.66%
Over 5 years 1546565.00 180463.81 11.67%
Total 12605403.44 585217.29 ——
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 339059.31 128565.00 467624.31
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 117592.98 117592.98
Reverse
Cancelation
Written off
Other movement
Closing balance 456652.29 128565.00 585217.29
135(4) Bad debt provision details
Change during the year
Opening Closing
Category Accrued Collected/ Written-
balance Others Balance
reversed off
Bad debt
467624.31117592.9585217.29
provision 8
Total 467624.31 117592.98 585217.29
(5) Other receivables from the top 5 debtors
Closing
Closing % of
Name Category Aging Balance of
Balance the total
Provision
No.1 Receivables and payables 20000000.00 Over5 years 61.34
No.2 Other deposit 1100000.00 Over5 years 3.37 40260.00
No.3 Bid deposit 800000.00 2-3 years 2.45 29280.00
No.4 Bid deposit 800000.00 3-4 years 2.45 29280.00
No.5 Receivables and payables 551280.00 1-2 years 1.69 20176.85
Total — 23251280.00 — 71.30 118996.85
1363. 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 2438830861.29 2438830861.29 2432830861.29 2432830861.29
Investment of affiliates
492645952.54492645952.54473699761.22473699761.22
and JV
Total 2931476813.83 2931476813.83 2906530622.51 2906530622.51
(2) Investments of subsidiaries
Provision for Increase/Decrease
Beginning impairment Provision for Investee balance at beginning Increased Decreased Provision for Others Ending balance impairment
of year impairment at year end
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 69272185.00 6000000.00 75272185.00
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
137Provision for Increase/Decrease
Investee Beginning impairment
Provision for
balance at beginning Increased Decreased Provision for Others Ending balance impairment
of year impairment at year end
Wuhan New World Refrigeration
Industrial Co. Ltd 184674910.81 184674910.81
Dalian Bingshan Engineering &
Trading Co. Ltd 71537064.86 71537064.86
Sonyo 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 2432830861.29 6000000.00 2438830861.29
(3) Joint ventures& affiliated companies
Increase/Decrease
Provision for Gains and Adjustment Provision
Investee Beginning losses balance impairment Increased Decreased recognized of other Changes of Cash bonus or
Provision
for Others Ending balance
for
at beginning impairment
of year under the
comprehens other equity profits announced
ive income impairment at year endequity method
1. Affiliated company
Dalian Honjo 8462105.73 114371.51 8576477.24
Chemical Co. Ltd
Keinin-Grand Ocean
Thermal Technology 53322286.73 -376025.05 52946261.68
(Dalian) Co. Ltd
Dalian Fuji Bingshan
Vending Machine 67096098.78 5248104.84 72344203.62
Co. Ltd
MHI Bingshan
Refrigeration (Dalian) 16746474.97 2199327.03 18945802.00
Co. Ltd.
138Increase/Decrease
Beginning Provision for
Gains and Adjustment Provision
Investee balance impairment
losses
Increased Decreased recognized of other Changes of Cash bonus or
Provision Ending balance for
at beginning under the comprehens other equity profits announced
for Others impairment
of year impairment at year endequity method ive income
Dalian Fuji Bingshan
Vending Machine
Sales Co. Ltd
Jiangsu Jingxue
Insulation Technology 145535400.55 *.** 3220344.00 *.**
Co. Ltd
Bingshan Metal
Technical Service 135904723.22 13572735.20 149477458.42
（Dalian） Co. Ltd.
Dalian Bingshan
Group Huahuida
Financial Leasing 46632671.24 *.** 547301.29 *.**
Co. Ltd
Total 473699761.22 22713836.61 3767645.29 492645952.54
1394. Operating revenue and cost
2025.01-062024.01-06
Item
Revenue Cost Revenue Cost
Revenue from main
427380027.99373168293.00385581466.34327057614.66
operation
Revenue from other
16090642.169515808.9519129432.2712159687.41
operation
Total 443470670.15 382684101.95 404710898.61 339217302.07
5. Investment income
Items 2025.01-06 2024.01-06
Long-term equity investment gain under cost method 6062894.23
Long-term equity investment gain under equity method 22713836.61 16979803.35
Gain from holding of other non-current financial assets 4364003.20
Discounting fees for bank acceptance note
Gain from disposing long-term equity investment
Gain from disposal of other non-current financial assets
Gain on debt restructuring - -
Total 22713836.61 27406700.78
6. Others
None
XIX. Approval of Financial Statements
The parent and consolidated financial statements of the Company were approved by the Board
of Directors of the Company on August 13 2025.
140XX. Supplementary Information to the Financial Statements
1. Return on equity and earnings per share
Earnings per share
Weighted
(EPS)
Profit of report period average return
Basic Diluted
on net assets
EPS EPS
Net profit attributable to shareholders of parent
2.52%0.090.09
company
Net profit after deducting non-recurring gains and
2.35%0.090.09
losses attributable to shareholders of parent company
Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd
August 14 2025
141
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