Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Bingshan Refrigeration & Heat Transfer
Technologies Co. Ltd.2026 Semiannual Report
August 2026
1Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Section 1 Important Notice Table of Contents and Definitions
The directors and the Board of Directors 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. 2026 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 ..................... 15
Section 5 Important items .......................... 16
Section 6 Change in Share Capital and Shareholders.. 18
Section 7 Bond Related Information ................. 20
Section 8 Financial Report ..........................21
3Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 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. 2026 Semiannual Report
Definitions
Defined item Stands for Meaning
Reporting period Stands for From Jan. 1 2026 to Jun. 30 2026
The Company this Company Stands for Bingshan Refrigeration & Heat Transfer Technologies Co.Ltd.Bingshan Engineering Stands for Dalian Bingshan Group Engineering Co. Ltd.one of the subsidiaries of the Company wherethe Company holds 100% of its shares.Bingshan Guardian Stands for Dalian Bingshan Guardian Automation Co. Ltd. one of the subsidiaries of the Companywhere the Company holds 100% of its shares.Sonyo Compressor (Dalian) Co. Ltd. Formerly Panasonic Appliances Compressor (Dalian)
Sonyo Compressor Stands for 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.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. 2026 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
Legal English name Bingshan Refrigeration & Heat Transfer Technologies Co. 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 andTechnological 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 2025 for
details.IV. Main accounting data and financial indicators
Did the Company retroactively adjust or restate the accounting data of previous years
√ Applicable □ Not applicable
The reason for the retroactive adjustment is the same control enterprise merger.
6Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Unit: RMB Yuan
2025.1-6 Increase/decrease compared
2026.1-6 with previous 2025.1-6
Before adjustment After adjustment After adjustment
Operating revenue 2179670345.56 2380320781.91 2385274786.05 -8.62%
Net profit attributable to shareholders of
47142616.0778290437.7878543776.29-39.98%
listed companies
Net profit belonging to the shareholders
of listed companies after the deduction of 30733552.15 72911982.78 72911982.78 -57.85%
non-recurring profit and loss
Net cash flow from operating activities -97657176.10 -1032514.46 -968304.83 -
Basic earning per share 0.06 0.09 0.09 -33.33%
Diluted earnings per share 0.06 0.09 0.09 -33.33%
Weighted average return on net asset
1.49% 2.49% 2.50% Decrease 1.01 percentage points
yield
2025.12.31 Increase/decrease compared
2026.6..30 with previous year
Before adjustment After adjustment After adjustment
Total assets 7441700389.64 7596536378.75 7607143933.63 -2.17%
Owner's equity attributable to
3159322787.793153969751.793154703294.560.15%
shareholders of listed 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 -133199.26
Government subsidies included in current profit or loss 11718151.12
Allowance for impairment reversal of receivables tested separately for impairment 2512140.03
The net profit and loss of the subsidiary period from the beginning to the consolidation date of
34179.37
the company under the same control.Gains and losses on debt restructuring 2573327.11
The one-time expenses incurred by the enterprise due to the discontinuation of related business
-688062.75
activities
Other non-operating revenue or expense 2154776.76
Influence on income tax 1576781.10
Influence on minority shareholders 185467.36
Total 16409063.92
7Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 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 2026 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 multiple high
standard projects such as Three Barrel Oil and Chengxin Chemical.
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 Taizhou Jiaojiang
Yudu Town project Zhengzhou Dahe Huiji project Guangzhou Jiangnan Fruit and Vegetable project and
Shandong Linqing Agricultural Products project.
3. Air conditioning and environment business
In recent years relying on the complete industrial chain the Company has continuously carried out
8Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
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.
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.
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 continued to sign orders for energy storage thermal management
projects and CCUS projects.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-layered 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 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
9Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
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 2026 the Company focused on the hot and cold business deeply cultivated segmented
markets and continuously strengthened its main business. In the first half of 2026 the Company achieved an
operating revenue of 2179.67 million yuan a decrease of 8.62% year-on-year; The net profit attributable to
the shareholders of the listed company was 47.14 million yuan a decrease of 39.98% year-on-year mainly
due to the rising prices of raw materials and intensified market competition.During the reporting period the Company's subsidiary Bingshan Engineering continued to deepen its focus
in niche markets. In the product sector it actively served high-end clients securing contracts for several
high-standard projects such as those for the Three Major Oil Companies and Chengxin Chemical. In the
engineering sector it undertook key projects including the Taizhou Jiaojiang Fish Town Zhengzhou Dahan
Huiji Guangzhou Jiangnan Fruit and Vegetable and Shandong Linqing Agricultural Product projects. In the
energy sector orders for energy storage thermal management and CCUS continued to be signed.During the reporting period the Company's subsidiary Bingshan Guardian's Cold & Heat System achieved
new milestones in intelligent energy-saving control. The next-generation Model Predictive Control (MPC)
algorithm was successfully implemented in Bingshan's cold and heat equipment applications progressing
steadily. The development of MPC energy-saving algorithms embedded in edge controllers has reached
phased results. The Hardware-in-the-Loop testing platform for energy storage temperature control systems
was pragmatically established significantly enhancing development efficiency.During the reporting period the Company's subsidiary Sonyo Compressor achieved independent innovation
and high-quality growth. The series development of high-horsepower scroll compressors progressed steadily
while DC inverter scroll compressors suitable for data center temperature control systems were actively
promoted. Focusing on the heat pump sector it continued to deepen its expansion in the European market.Through cost reduction and efficiency improvement it sought to mitigate the impact of rising bulk material
prices. It was recognized as one of the 100 National 5G Factory Model Application Practice Projects and
selected as a 2026 Liaoning Provincial Intelligent and Digital Transformation Benchmark Enterprise.During the reporting period the subsidiary of the Company Sonyo Refrigeration focused on industrial
energy conservation and innovative green growth. Signed a contract for the absorption type Class II heat
pump project with the largest steam production capacity in a single domestic project achieving efficient
coupling of waste heat recovery and steam production. The specialized lithium bromide unit for offshore
platforms has been successfully developed. Awarded as a national level green factory.During the reporting period the subsidiary of the Company Sonyo Refrigeration System made new
progress in product development. The prototype development of the transcritical CO2 air-cooled integrated
unit has been completed assisting in the expansion of overseas markets. Optimization and upgrade of marine
10Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
OCCS compression module and liquefaction module. Launching a new generation of vanadium liquid flow
energy storage temperature control system actively promoting the development of new customers.Main financial data variations as compared to the same period of last year
Monetary unit: RMB Yuan
Increase or decrease from the
Report period Same period of last year
same period of last year
Operating revenue 2179670345.56 2385274786.05 -8.62%
Operating cost 1830321338.64 1993539200.73 -8.19%
Selling and distribution expenses 94846927.33 106758706.39 -11.16%
Administrative expenses 122206345.73 123348672.93 -0.93%
Financial expenses 15247914.85 5500121.52 177.23%
Income tax 8162939.58 11443201.02 -28.67%
R&D expenses 67347702.62 69166325.91 -2.63%
Net cash flow coming from operating activities -97657176.10 -968304.83 -
Net cash flow coming from investment activities -41473545.06 -58197181.93 28.74%
Net cash flow coming from fund-raising activities -106708896.83 -117191683.16 8.94%
Net increase in cash and cash equivalents -249538870.96 -172604530.42 -39.35%
Note 1: Financial expenses increased significantly primarily due to foreign exchange losses incurred during
the current period.Note 2: The decrease in income tax expense was primarily due to the reduction in total profit for the current
period.Note 3: The net cash flow generated from operating activities has significantly decreased year-on-year
mainly due to a decrease in current period payments.Sales income and costs
Report period Same period of last year
Increase or decrease from the
Proportion to the Proportion to the
Amount Amount same period of last year
Sales costs Sales costs
Total sales income 2179670345.56 100% 2385274786.05 100% -8.62%
By industry
Refrigeration and
air-conditioning 2128242559.30 97.64% 2346491455.81 98.37% -9.30%
equipment
Others 51427786.26 2.36% 38783330.24 1.63% 32.60%
By product
Industrial products 1563458060.44 71.73% 1608983274.72 67.45% -2.83%
Installation project 564784498.86 25.91% 715302366.12 29.99% -21.04%
Other products and
services 51427786.26 2.36% 60989145.21 2.56% -15.68%
Domestic sales 1900015946.83 87.17% 2029028362.80 85.06% -6.36%
Foreign sales 279654398.73 12.83% 356246423.25 14.94% -21.50%
Main business structure
Monetary unit: RMB yuan
11Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Increase/decrease
of operating Increase/decrease
Operating revenue Operating costs Gross of operating costs Increase/decrease of gross profitprofit revenues from thesame period of from the same from the same period of last year
last year period of last year
By industry
Refrigeration and
air-conditioning 2128242559.30 1805895464.58 15.15% -9.30% -8.71% decrease 0.55 percentage points
By product
Industrial products 1563458060.44 1277617577.52 18.28% -2.83% -1.12% decrease1.41 percentage points
Installation project 564784498.86 528277887.06 6.46% -21.04% -20.95% decrease 0.10 percentage points
By region
Domestic sales 1848588160.57 1579153916.73 14.58% -8.89% -7.79% decrease 0.05 percentage points
Foreign sales 279654398.73 226741547.85 18.92% -21.50% -19.28% decrease 2.23 percentage points
IV. Analysis of the non-main business
□Applicable√Not applicable
V. Analysis of assets & liabilities
1. Remarkable change in assets
Monetary unit: RMB yuan
30-6-202631-12-2025
Amount Proportion to Proportion to Proportion increase/decrease.the total assets Amount the total assets
Monetary funds 621705465.37 8.35% 881961122.28 11.59% Decrease 3.24 percentage points
Accounts receivable 1826609128.67 24.55% 1635556614.58 21.50% Increase 3.05 percentage points
Contract assets 164032341.04 2.20% 161816928.39 2.13% Increase 0.07 percentage points
Inventories 1401211017.51 18.83% 1439914414.18 18.93% Decrease 0.10 percentage points
Investment property 133159366.12 1.79% 121350188.47 2.00% Decrease 0.21 percentage points
Long-term equity
investment 494479222.61 6.64% 483028918.31 6.35% Increase 0.29 percentage points
Fixed assets 1210192835.36 16.26% 1261222376.24 16.58% Decrease 0.32 percentage points
Construction in progress 18185186.15 0.24% 15669392.61 0.21% Increase 0.03 percentage points
Right of use assets 15911036.97 0.21% 18009137.49 0.24% Decrease 0.03 percentage points
Short-term loans 204665086.56 2.75% 201836464.89 2.65% Increase 0.10 percentage points
Contract liabilities 477122097.44 6.41% 525086822.72 6.90% Decrease 0.49 percentage point
Long-term loans 304100000.00 4.09% 368328245.18 4.84% Decrease 0.75 percentage points
Lease liabilities 12393294.67 0.17% 16563173.78 0.22% Decrease 0.05 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 2026.6.30 Reasons
Monetary fund 38536737.16 Guarantee money; Frozen funds in bank accounts
Notes Receivable 850000.00 Pledge
Financing of receivables 587572.14 Pledge
12Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Items 2026.6.30 Reasons
Fixed assets 59480216.27 Pledge
Intangible assets 5008531.57 Pledge
investment property 29889269.11 Pledge
Total 134352326.25
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
30623238.5958438274.61-47.60%
Note: The investment amount during the reporting period decreased by 47.60% mainly due to the purchase of a
high-power production line by its subsidiary Sonyo Compressor in the same period last year.
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 164700.78 119308.12 66146.11 4675.27
company
Pipe system connectors
mutual high-speed rail connectors
Bingshan Metal
shareholding hydraulic valve bodies USD 18.0645 million 34106.92 26840.80 22816.41 2459.09
Technology
company automotive engine parts
etc.Subsidiary companies obtained or disposed in the reporting period
√ Applicable □ Not applicable
13Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
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 Part Technology Co. Ltd. and decreased by one compared to the beginning of
the year which is Wuhan Lan Ning Energy Technology 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
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.XI. Implementation of Market Value Management System and Valuation Enhancement Plan
Has the Company established a market value management system.□Applicable √Not applicable
Has the Company disclosed a plan to increase its valuation.√Applicable □Not applicable
Due to the fact that the B-share prices have been consistently lower than the net asset value the Company has
formulated the "Valuation Enhancement Plan" aiming to increase the Company's valuation from several
dimensions such as business improvement mergers and acquisitions cash dividends information disclosure
investor relations management and social responsibility. For detailed information please refer to the relevant
announcement disclosed by the Company on April 24 2026.XII. Implementation of the Action Plan for "Double Improvement of Quality and Return"
Has the Company disclosed the announcement of the "Double Improvement of Quality and Return" action plan.□Applicable √Not applicable
14Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Section 4 Corporate governance Environmental and Social
Responsibility
I. Changes of directors and senior managers of the Company
√Applicable □ Not applicable
II. Profit distribution and dividend payment
Name Position held Type Date Reason
Nakamichi Tetsuya Director Resignation Apr.72026 Job transfer
Nishimoto Shigeyuki Director Elected May 212026 Job transfer
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
Sonyo Compressor (Dalian) Co. Ltd. https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
V．Social responsibilities
In the first half of 2026 based on the solid progress of the rural revitalization assistance work the Company
further expanded its public welfare scope and actively carried out charity education assistance and social
volunteer services. The specific work is as follows:
1. Continue to do a good job in the paired assistance work with Songlin Village Guangmingshan Town
Zhuanghe City. Provide maintenance for the air conditioning equipment of the cultural activity venue for the
villagers.
2. Actively organize employees to participate in voluntary blood donation activities and encourage all employees
to actively participate.
3. Organize volunteers to enter the Bingshan Hope School carry out charity education assistance at the same time
set up public welfare lecture halls to popularize refrigeration knowledge in order to help with talent cultivation
through love-based education assistance and protect the growth of students with love.
15Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 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
The Company and related personnel received the Regulatory Rectification Measures Decision
(Administrative Regulatory Measures [2026] No. 7) issued by the Dalian Regulatory Bureau of the
China Securities Regulatory Commission on March 2 2026 which required the Company to rectify
issues related to related-party transactions corporate governance revenue recognition and other
matters. Upon receiving the regulatory measures decision the Company promptly assigned
responsibilities and implemented corrective actions diligently. As of the end of the reporting period
the aforementioned issues had been fully rectified. For details refer to the "Rectification Report on
the Regulatory Rectification Measures Taken by the Dalian CSRC Against the Company and Related
Personnel" disclosed by the Company on March 26 2026 on the Cninfo website.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 456500 thousand yuan accounting for 41.61% of the budgeted amount for
the year 2026. This included 125420 thousand yuan accounting for 36.23% of the budgeted amount
for the year 2026 for purchasing supporting products for package projects from associated parties
and 331080 thousand yuan accounting for 44.08% of the budgeted amount for the year 2026 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
16Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
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
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 1.9139 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 6.1403 million
Yuan.
2. Guaranteeing status
√ Applicable □ Not applicable
The Company provided guarantees for its client Shandong Jiechuang Energy Technology Co. Ltd.and Jilin Fuyu Agricultural Technology Co. Ltd. based on financing leasing business which lasted
until the reporting period.As of the date of this report all guaranteed debts of Shandong Jiechuang Energy Technology Co.Ltd. have been fully settled and the Company has not assumed any guarantee liability.Due to its own operational issues Jilin Province Fuyu Agricultural Technology Co. Ltd. delayed
repayment. Its subsidiary Dalian Bingshan RYOSETSU Quick Freezing Equipment Co. Ltd.("Bingshan RYOSETSU ") will advance rental payments monthly starting from August 2026 with a
total advance amount of 9.1385 million yuan. Based on these advances Bingshan RYOSETSU has
accrued a provision of 1.3016 million yuan in its interim financial statements for the first half of
2026. For details please refer to the Company's announcement titled "Announcement on
Subsidiary's Partial Guarantee Liability Performance" disclosed on August 5 2026.
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
17Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 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 1595782 0.19% 0 1595782 0.19%
Other domestic shares 1595782 0.19% 0 1595782 0.19%
II. Circulating share capital 841616725 99.81% 0 841616725 99.81%
1. Domestically listed ordinary shares 600116725 71.17% 0 600116725 71.17%
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 61890 Total number of shareholders as of the last monthperiod 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-ownedlegal person 20.27% 170916934 0 0
Sanyo Electric Co. Ltd. Overseas legal person 8.72% 73503150 0 0
Lin Zhenming Foreign natural person 0.80% 6710000 0 0
Wu xiaodong Domestic natural person 0.53% 4445400 0 0
Xue Hong Domestic natural person 0.43% 3660000 0 0
Han Wentao Domestic natural person 0.38% 3181300 0 0
Chen Naisheng Domestic natural person 0.27% 2311330 0 0
Gao wenbin Domestic natural person 0.25% 2071600 0 0
Zhao Guoqing Domestic natural person 0.24% 2050600 0 0
Chao huang Investment Co. Ltd. Overseas legal person 0.24% 2037000 0 0
Shareholding of top ten shareholders without sale restriction
18Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Number of shares without
Name Type of shares
sale restriction
Dalian Bingshan Group Co. Ltd. 170916934 RMB denominated ordinary shares
Sanyo Electric Co. Ltd. 73503150 Domestically listed foreign shares
Lin Zhenming 6710000 Domestically listed foreign shares
Wu xiaodong 4445400 Domestically listed foreign shares
Xue Hong 3660000 Domestically listed foreign shares
Han Wentao 3181300 RMB denominated ordinary shares
Chen Naisheng 2311330 RMB denominated ordinary shares
Gao wenbin 2071600 RMB denominated ordinary shares
Zhao Guoqing 2050600 RMB denominated ordinary shares
Chao huang Investment Co. Ltd. 2037000 Domestically listed foreign 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.above shareholders Sanyo 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 61890
including 55153 A-share shareholders and 6737 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
19Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Section 7 Bond Related Information
□Applicable √ Not applicable
In the reporting period the Company didn’t own Bond.
20Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 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 2026 Unit: RMB Yuan
30-June-2026 1-Jan-2026
Items
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 621705465.37 113515135.42 881961122.28 168256281.11
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 267365854.50 47305528.08 327073361.42 68484896.13
Accounts receivable 1826609128.67 554007883.87 1635556614.58 463332443.22
Receivables financing 359361883.76 6979764.00 335509461.15 13757310.58
Accounts paid in advance 174821372.60 53625122.62 155949650.91 65122891.32
Other receivables 39566910.35 41659004.14 43092575.59 191936403.02
Interest receivables
Dividend receivable 10542431.14 3767645.29 160000000.00
Inventories 1401211017.51 343200107.59 1439914414.18 332344633.33
Contract assets 164032341.04 85654431.14 161816928.39 81471465.36
Assets held for sale
Non-current asset due within one year 388297.01 359632.86
Other current assets 25920339.90 781103.82 34899376.92 4225339.08
Total current assets 4880982610.71 1246728080.68 5016133138.28 1388931663.15
Non-current assets:
Finance asset held available for sales
Held-to-maturity investment
Long-term account receivable 1215310.60 1215818.17
Long-term equity investment 494479222.61 2907311253.08 483028918.31 2894643627.80
Other Non-current financial assets 1683852.59 368710.09 1683852.59 368710.09
Investment property 133159366.12 131432747.11 121350188.47 119792927.12
Fixed assets 1210192835.36 547827097.74 1261222376.24 582725753.84
Construction in progress 18185186.15 902769.43 15669392.61
Right of use assets 15911036.97 24193146.66 18009137.49 25719058.05
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 245247816.89 60308441.86 252007735.29 65079359.37
21Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Expense on Research and Development
Goodwill 286402171.93 286402171.93
Long-term expenses to be apportioned 5741453.87 1795432.05 6036271.48 2301963.63
Deferred income tax asset 126541496.49 37976519.09 125344507.42 38320227.77
Other non-current asset 21958029.35 3985197.86 19040425.35 731843.86
Total non-current asset 2560717778.93 3716101314.97 2591010795.35 3729683471.53
Total assets 7441700389.64 4962829395.65 7607143933.63 5118615134.68
Current liabilities:
Short-term loans 204665086.56 120000000.00 201836464.89 138089585.21
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 638705442.61 99390540.81 665364289.18 113282771.39
Accounts payable 1764645833.58 383636727.71 1664582164.08 387588325.46
Accounts received in advance
Contract liabilities 477122097.44 67208810.94 525086822.72 63052699.58
Wage payable 44765823.85 123043.61 125177034.62 8535633.24
Taxes payable 21106180.53 3623326.96 19752816.57 3070077.04
Other accounts payable 282454141.82 201743771.31 242101014.95 150943100.70
Interest payable
Dividend payable 42693781.35 42693781.35 533156.00 533156.00
Liabilities held for sale
Non-current liabilities due within one year 197567039.79 177980481.56 237446970.64 215298994.11
Other current liabilities 146876468.46 44815474.29 184739239.53 64935733.49
Total current liabilities 3777908114.64 1098522177.19 3866086817.18 1144796920.22
Non-current liabilities:
Long-term loans 304100000.00 304100000.00 368328245.18 368328245.18
Bonds payable
Preferred stock
Perpetual bond
Lease liability 12393294.67 18425192.21 16563173.78 19917432.95
Long-term account payable 16350240.32 18845786.63
Long-term wage payable
Special Payable
Anticipation liabilities 3036070.48 2300208.22
Deferred income 81589929.36 45469741.11 92793132.73 55223748.78
Deferred income tax liabilities 26903219.27 28734303.46
Other non-current liabilities
Total non-current liabilities 444372754.10 367994933.32 527564850.00 443469426.91
Total liabilities 4222280868.74 1466517110.51 4393651667.18 1588266347.13
Shareholders’ equity
Share capital 843212507.00 843212507.00 843212507.00 843212507.00
22Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Other equity instruments
Preferred stock
Perpetual bond
Capital public reserve 717097098.38 695623539.31 717830641.15 695623539.31
Less: Treasury stock
Other comprehensive income 2208669.73 1246569.06 2208669.73 1246569.06
Special preparation 3046119.31 1988616.80
Surplus public reserve 947945927.76 947945927.76 923202335.01 923202335.01
Generic risk reserve
Retained profit 645812465.61 1008283742.01 666260524.87 1067063837.17
Total owner’s equity attributable to parent company 3159322787.79 3154703294.56
Minority interests 60096733.11 58788971.89
Total owner’s equity 3219419520.90 3496312285.14 3213492266.45 3530348787.55
Total liabilities and shareholder’s equity 7441700389.64 4962829395.65 7607143933.63 5118615134.68
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
23Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
INCOME STATEMENT
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. January-June 2026 Unit: RMB Yuan
January-June 2026 January-June 2025
Items
Consolidation Parent Company Consolidation Parent Company
I. Total sales 2179670345.56 346561321.87 2385274786.05 443470670.15
II. Total operating cost 2146041230.74 363321390.89 2314570743.85 460673078.78
Including: Operating cost 1830321338.64 292026055.49 1993539200.73 382684101.95
Taxes and associate charges 16071001.57 5814451.28 16257716.37 5477205.69
Selling and distribution expenses 94846927.33 7316787.36 106758706.39 14581396.27
Administrative expenses 122206345.73 38567001.16 123348672.93 39402674.11
R&D expenses 67347702.62 12268147.45 69166325.91 9834164.03
Financial expense 15247914.85 7328948.15 5500121.52 8693536.73
Including: interest expense 9944756.95 7300079.89 12504559.82 8398665.12
interest income 2255910.41 65474.93 3358417.93 292579.75
Add: Other income 12714406.39 7215540.26 8794590.75 2425847.98
Gain/(loss) from investment 14172398.96 20233457.88 23176138.30 22713836.61
Including: income from investment on
affiliated enterprise and jointly enterprise 12042631.59 10259952.57 24534336.83 22713836.61Gain/(loss) from change in fair value (loss as “-“)Credit impairment loss (loss as “-“) -4728515.12 -1587585.55 -9867633.85 -2896832.18Assets impairment loss (loss as “-“) -1195665.68 -382692.15 -3673034.11 -4487134.99Gain/(loss) from asset disposal (loss as “-“) -77707.59 -49988.53 -55842.88 0.00III. Operating profit 54514031.78 8668662.89 89078260.41 553308.79
Add: non-business income 2680136.04 0.00 5555600.15 308508.80
Less: non-business expense 580850.95 200831.27 1650514.85 116697.85
IV. Total profit 56613316.87 8467831.62 92983345.71 745119.74
Less: Income tax 8162939.58 343708.68 11443201.02 -750091.66
V. Net profit 48450377.29 8124122.94 81540144.69 1495211.40
(I) Net profit from continuous operation 48450377.29 8124122.94 81540144.69 1495211.40
(II)Net profit from discontinuing operation
Net profit attributable to parent company 47142616.07 78543776.29
Minority shareholders’ gains and losses 1307761.22 2996368.40
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
24Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 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 48450377.29 8124122.94 81540144.69 1495211.40
Total comprehensive income attributable to parent
company 47142616.07 78543776.29
Total comprehensive income attributable to minority
shareholders 1307761.22 2996368.40
VIII. Earnings per share
(I) basic earnings per share 0.06 0.09
(II) diluted earnings per share 0.06 0.09
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
25Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
CASH FLOW STATEMENT
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. January -June 2026 Unit: RMB Yuan
January -June 2026 January -June 2025
Items
Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing
labor services 1914634361.48 303341666.00 2056386028.88 301942216.64
Write-back of tax received 22385580.77 89516.28 30136813.41 7773364.19
Other cash received concerning operating activities 41678584.27 5431070.37 52687039.90 15930701.50
Subtotal of cash inflow arising from operating activities 1978698526.52 308862252.65 2139209882.19 325646282.33
Cash paid for purchasing commodities and receiving
labor service 1480933219.32 291128142.53 1495668849.55 248289092.96
Cash paid to/for staff and workers 420007507.12 62897103.90 430434443.85 58113306.87
Taxes paid 60869392.00 9104389.04 90036455.03 23062915.04
Other cash paid concerning operating activities 114545584.18 26820392.49 124038438.59 24732332.92
Subtotal of cash outflow arising from operating activities 2076355702.62 389950027.96 2140178187.02 354197647.79
Net cash flows arising from operating activities -97657176.10 -81087775.31 -968304.83 -28551365.46
II. Cash flows arising from investing activities:
Cash received from recovering investment
Cash received from investment income 160000000.00 11150.00 100000000.00
Net cash received from disposal of fixed intangible and
other long-term assets 791693.53 229942.68
Net cash received from disposal of subsidiaries and other
units
Other cash received concerning investing activities 50000000.00 50000000.00
Subtotal of cash inflow from investing activities 50791693.53 160000000.00 50241092.68 100000000.00
Cash paid for purchasing fixed intangible and other
long-term assets 30623238.59 7511727.01 58438274.61 9354241.46
Cash paid for investment 1420000.00 3000000.00 3000000.00
Net cash paid for achievement of subsidiaries and other
business units
Other cash paid concerning investing activities 60222000.00 50000000.00
Subtotal of cash outflow from investing activities 92265238.59 10511727.01 108438274.61 12354241.46
Net cash flows arising from investing activities -41473545.06 149488272.99 -58197181.93 87645758.54
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 151681236.67 70000000.00 132102821.74 90000000.00
Cash received from issuing bonds
Other cash received concerning financing activities 5559746.47 5943611.11
Subtotal of cash inflow from financing activities 157240983.14 70000000.00 138046432.85 90000000.00
Cash paid for settling debts 243876930.69 188500000.00 223984656.45 204729166.67
Cash paid for dividend and profit distributing or interest
paying 9043102.97 7002303.78 9837390.66 8160879.18
Including: dividends or profit paid by subsidiaries to
minority shareholders
Other cash paid concerning financing activities 11029846.31 3037500.00 21416068.90 2952500.00
26Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Subtotal of cash outflow from financing activities 263949879.97 198539803.78 255238116.01 215842545.85
Net cash flows arising from financing activities -106708896.83 -128539803.78 -117191683.16 -125842545.85
IV. Influence on cash due to fluctuation in exchange rate -3699252.97 3752639.50
V. Net increase of cash and cash equivalents -249538870.96 -60139306.10 -172604530.42 -66748152.77
Add: Balance of cash and cash equivalents at the period
-begin 722021877.01 166413226.11 951579683.60 253995179.54
VI. Balance of cash and cash equivalents at the
period–end 472483006.05 106273920.01 778975153.18 187247026.77
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
27Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd 2026.01-06 Unit: RMB Yuan
2026.01-06
Owners’ equity attributable to parent company
Items Lessen: Other Minority Total of
share capital Capital treasury comprehens Special Surplus
Retained
suplus preparation reserve profits
equity owners’ equity
stock ive income
I. balance at the end of last
year 843212507.00 717097098.38 2208669.73 1988616.80 923202335.01 666260524.87 58788971.89 3212758723.68
1. Change of accounting
policy
2. Correction of errors in
previous period
2. Others 733542.77 733542.77
II. Balance at the beginning of
this year 843212507.00 717830641.15 2208669.73 1988616.80 923202335.01 666260524.87 58788971.89 3213492266.45
III. Increase/ decrease of
amount in this year (“-” -733542.77 1057502.51 24743592.75 -20448059.26 1307761.22 5927254.45
means decrease)
(I) Total comprehensive
incomes 47142616.07 1307761.22 48450377.29
(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 -733542.77 24743592.75 -67590675.33 -43580625.35
1. Withdrawing surplus
public reserve -733542.77 24743592.75 -24743592.75 -43580625.35
2. Distribution to all owners
(shareholders) -42160625.35 -42160625.35
3. Others -733542.77 -686457.23 -1420000.00
(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 1057502.51 1057502.51
1. Withdrawn for the period 6638471.74 6638471.74
2. Used in the period 5580969.23 5580969.23
(VI) Other
IV. Balance at the end of this
period 843212507.00 717097098.38 2208669.73 3046119.31 947945927.76 645812465.61 60096733.11 3219419520.90
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
28Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
2025.01-06
Owners’ equity attributable to parent company
Items
Capital Lessen: Other Retained
Minority Total of
share capital suplus treasury comprehens
Special Surplus equity owners’ equity
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 (“-” 1531905.35 15212024.95 21358170.60 2996368.40 41098469.30
means decrease)
(I) Total comprehensive
incomes 78543776.29 2996368.40 81540144.69
(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 -57185605.69 -41973580.74
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 2208669.73 1531905.35 910830538.64 695324348.44 60002857.20 3230207924.74
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
29Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd 2026.01-06 Unit: RMB Yuan
2026.01-06
Owners’ equity attributable to parent company
Items Other Capital Lessen: Other
Total of owners’
share capital equity suplus treasury comprehensive
Special Surplus equity
instrument stock income preparation reserve
Retained profits
I. balance at the end of last
year 843212507.00 695623539.31 1246569.06 923202335.01 1067063837.17 3530348787.55
1. Change of accounting
policy
2. Correction of errors in
previous period
II. Balance at the beginning of
this year 843212507.00 695623539.31 1246569.06 923202335.01 1067063837.17 3530348787.55
III. Increase/ decrease of
amount in this year (“-” 24743592.75 --58780095.16 -34036502.41
means decrease)
(I) Total comprehensive
incomes 8124122.94 8124122.94
(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 24743592.75 -66904218.10 -42160625.35
1. Withdrawing surplus
public reserve 24743592.75 -24743592.75
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 2615616.06 2615616.06
2. Used in the period 2615616.06 2615616.06
(VI) Other
IV. Balance at the end of this
period 843212507.00 695623539.31 1246569.06 947945927.76 1008283742.01 3496312285.14
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
30Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
2025.01-06
Owners’ equity attributable to parent company
Items Other Capital Lessen: Other
Total of owners’
share capital equity Special Surplussuplus treasury comprehensive preparation reserve Retained profits
equity
instrument 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 (“-” 15212024.95 -55877438.90 -40665413.95
means 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. 2026 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
32Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
authorized 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.
33Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
The Company is in industrial manufacturing sector mainly engaged in industrial refrigeration
refrigerated and frozen food storage and manufacture and installation of central
air-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 12 2026.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 andAccounting 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
reporting period ended as of June 30 2026 operating performance cash flow of the
Company and the group for the reporting period then ended truly and fully.
2. Accounting period
34Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
The group adopts the Gregorian calendar year as accounting period from Jan 1 to Dec 31.
3. Operating cycle
The group sets twelve months for one operating cycle.
4. Functional currency
The group adopts RMB as functional currency.
5. Materiality criteria set up method and basis
The financial statements preparation and disclosure are in line with materiality. For those
matters to be disclosed and need judgement for materiality materiality criteria set up method
and basis are as follows:
In the notes to
Disclosures involved by the financial Materiality criteria set up method and
materiality judgement statements basis
Significant receivables with Single provision is over 10 million Yuan and
individual provision for bad Note VI.3 represents more than 10% of the total
debts provision
Single provision is over 10 million Yuan and
Collection or reverse of
Note VI.3 represents more than 10% of the total
significant receivables
provision
Single provision is over 10 million Yuan and
Significant receivables written
Note VI.3 represents more than 10% of the total
off
provision
Significant construction in
Note XVI.16 Single project budget over 30 million Yuan
progress
The book value of long-term equity
investment in a single investee accounts for
more than 10% of the group's net assets and
the amount is greater than 100 million Yuan
Significant JV or associates Note VIII.3
or the gain or loss on investment under the
long-term equity investment equity method
accounts for more than 10% of the group's
consolidated net profit
Subsidiary’s net assets are more than10% of
Significant subsidiary the group asses and its net profit is more than
10% of consolidated profit
35Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 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
36Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
plan.
7. Criteria of control judgment and method of preparation of consolidated financial
statements
Consolidation scope is determined on the control basis including the Company and all
subsidiaries controlled by the Company. Control criteria is that the group has the power over
the investees enjoy the variable return by involving the relative activities of the investees and
also has the impact on the return amount through the power over the investees.If subsidiaries adopt different accounting policy or have different accounting period from the
parent company appropriated adjustments shall be made in accordance with the Company
policy in preparation of the consolidated financial statements.All significant intergroup transactions outstanding balances and unrealized profit shall be
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 bepresented separately in the consolidated financial statements under “minority interest ofequity” minority interest of profit and loss” “other comprehensive income attributed tominority interest” and “total comprehensive income attributed to minority interest” title.If a subsidiary is acquired under common control its operation results and cash flow shall be
consolidated since the beginning of the consolidation period. When preparing the comparative
consolidated financial statements adjustments shall be made to relevant items of comparative
figures as regarded that reporting entity established through consolidation has been always
existing since the point when the ultimate controlling party starts to have the control.If a subsidiary is acquired not under common control its operation results and cash flow shall
be consolidated since the beginning of the consolidation period. In preparation of the
consolidated financial statements adjustments shall be made to subsidiary’s financial
statements based on the fair value of its all identifiable assets liability or contingent liability
on the acquisition date.When the group partially disposes of the long –term equity investment in subsidiary without
losing the control over it in the consolidated financial statements the difference between
disposals price and respective disposed value of share of net assets in the subsidiary since the
acquisition date or combination date shall be adjusted for capital surplus or share premium
no enough capital surplus then adjusted for retained earnings.When the group partially disposes of the long –term equity investment in subsidiary and lose
37Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
the control over it in preparation of consolidated financial statements remaining share of
interest in the subsidiary shall be remeasured on the date of losing control. Sum of the share
disposal consideration and fair value of remaining portion of shareholding minus the share of
the net assets in the subsidiary held based on the previous shareholding percentage since the
acquisition date or combination date the balance of above is recognized as investment
gain/loss for the period and goodwill shall be written off accordingly. Other comprehensive
income relevant to share investment in subsidiary shall be transferred to investment gain /loss
for the period on the date of losing control.When the group partially disposes of the long –term equity investment in subsidiary and lose
the control over it by stages if all disposing transactions are bundled each individual
transaction shall be seen as a transaction of disposal of a subsidiary by losing control. The
difference between the disposal price and the share of the net assets in the subsidiary held
before the date of losing control shall be recognize as other comprehensive income until the
date of losing control where it is transferred into investment gain/ loss for the current period.If the equity investment in the subsidiary is disposed of by stages through multiple
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
38Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
the current profits and losses. Invested capital in foreign currency shall be converted into
reporting currency at FX rate at when the investment is received and no foreign exchange
difference arises between capital received and monetary items.
10. Financial instruments
（1） Recognition and derecognition of financial instruments
The group shall recognize a financial asset or a financial liability when becoming party to the
contractual provisions of the instrument.An entity shall derecognize a financial asset(or a part of it or a group of similar financial asset)
when and only when: 1) the contractual rights to the cash flows from the financial asset
expire or 2) the entity transfers contractual rights to receive the cash flows of a financial asset
or assumes a contractual obligation to pay those cash flows received to the 3rd party in full
amount in time according to the ‘passing-through’ agreement and the entity substantially
transfers all the risks and rewards of ownership of the financial asset in nature or the entity
neither transfers nor retains substantially all the risks and rewards of ownership of the
financial asset but the entity has not retained control.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
39Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
personnel the risks affecting the performance of financial assets and the way in which they
are managed and the way in which the relevant business managers are remunerated. In
assessing whether the objective is to collect contract cash flows the group needs to make an
analytical judgment on the reasons timing frequency and value of the sale of the financial
assets before the maturity date.In determining the contract cash flow characteristics the group is required to determine
whether the contract cash flow is only the payment of principal and interest based on the
outstanding principal (including the assessment of the time value of money correction
judging any significant difference between it and the baseline cash flow/ for financial assets
containing early repayment characteristics is required to determine whether the fair value of
early repayment features is very small).Financial assets are measured at fair value at the initial recognition but accounts receivable or
notes receivable arising from the sale of goods or provision of services etc. do not contain a
significant financing component or do not consider the financing component of less than one
year the initial measurement is based on the transaction price.For financial assets that are measured at fair value the related transaction costs are directly
included in current profit or loss and those costs of other categories of financial assets are
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
40Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
income impairment loss and foreign exchange difference. When this type of financial assets
is derecognized accumulated gain or loss previously in the other comprehensive income shall
be out of it and accounted into retained earnings when the financial asset is derecognized. The
financial assets of this category include: receivable financing.
3) Equity instruments measured at fair value through other comprehensive income
The group may make an irrevocable election for particular investments in equity instruments
that it would be measured at fair value through other comprehensive income but once the
election is made it is irrevocable. The group only recognizes the dividend (apart from the
dividend as investment cost pay back) into profit and loss and fair value movement
subsequently will be recognized into comprehensive income and no need for impairment
provision. When this type of financial assets is derecognized accumulated gain or loss
previously in the other comprehensive income shall be out of it and accounted into retained
earnings when the financial asset is derecognized. The financial asset of this category is
equity instruments.
4) A financial asset measured as fair value through profit or loss
Apart from classified as the amortized cost financial assets and as fair value through other
comprehensive income financial assets a financial asset is classified as fair value through
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
41Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Effective interest method is applied to financial liabilities as subsequently measured at
amortized cost
2) Financial liability as it measured at fair value through profit or loss
Financial liability measured at fair value through profit or loss including tradable financial
liability (derivative instrument of financial liability included) and designated as financial
liability measured at fair value through profit or loss. Tradeable financial liability (including
derivate instrument of financial liability) are subsequently measured at fair value. The net
gain or loss arising from changes in fair value are recorded in profit or loss for the period in
which they are incurred. Financial liability designated as it measured at fair value through
profit or loss shall be subsequently measured at fair value except for changes in fair value
caused by changes in the group's own credit risk which are recognized in other
comprehensive income other changes in fair value are recognized in profit or loss for the
current period; The group recognizes all fair value changes (including the amount affected by
changes in its own credit risk) in profit or loss if the inclusion of changes in fair value
caused by changes in its own credit risk in other comprehensive income would cause or
widen the accounting mismatch in profit or loss for the current period.
（4） Financial instrument impairment
Based on expected credit loss the group shall apply the impairment requirements for the
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.
42Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
When assessing expected credit losses the group considers all reasonable and supportable
information including that which is forward-looking. In making these judgments and
estimates the group extrapolates the expected changes in the debtor's credit risk based on
historical repayment data combined with factors such as economic policies macroeconomic
indicators and industry risks. Different estimates may affect the provision for impairment and
the provision already made may not equal the actual amount of impairment losses in the
future.
1) Impairment testing method of receivable and contract asset
For receivable notes receivable and contract asset etc. which don’t contain significant
financing component and arise from sales of products and service provision the group adopts
simplified method to account expected credit loss provision at an amount equal to the whole
lifetime expected credit losses.For lease premium receivable trade receivable containing significant financing component
and contract asset the group adopts simplified method to account expected credit loss
provision at an amount equal to the whole lifetime expected credit losses.The group determines the expected credit loss of trade receivable on the basis of portfolios
with common characteristics of credit risk which are considered by expected credit loss
measurement reflection by reference to historical experience of credit loss and by
comparison of receivable past due days/ receivable age with default risk rate unless the single
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
43Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
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
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
44Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
when the substantial all risks and rewards to the financial asset has been retained. When the
all risks and rewards of the financial asset are neither transferred nor retained but the group
has given up its control of the financial asset the financial asset shall be derecognized and
recognize the asset and liability originated. Where control of the financial asset is not
relinquished the relevant financial asset shall be recognized according to the extent to which
it continues to be involved in the transferred financial asset and the relevant liability shall be
recognized accordingly.In the case where the financial asset as a whole qualifies for the derecognition conditions the
difference between the carrying value of transferred financial asset at the derecognition date
and the sum of the consideration received for transfer and the accumulated amount of changes
in fair value in respect of the amount of partial derecognition ( financial assets involved in
transfer must qualify the following conditions: * the financial asset is held within a
business model whose objective is not only for collecting contractual cash flows but also for
sale; * the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest based on the principal amount outstanding)
that was previously recorded under other comprehensive income is transferred into profit or
loss for the period.In the case where only part of the financial asset qualifies for derecognition the carrying
amount of financial asset being transferred is allocated between the portions that to be
derecognized and the portion that continued to be recognized according to their relative fair
value. The difference between the amount of consideration received for the transfer and the
accumulated amount of changes in fair value that was previously recorded in other
comprehensive income for the asset partially qualified for derecognition (financial assets
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
45Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
following standards: * if the group cannot unconditionally avoid paying cash or financial
asset to fulfil a contractual obligation the contractual obligation is qualified or financial
liability. For certain financial instrument although there are no clear terms and conditions to
include obligation of paying cash or other financial liability contractual obligation may
indirectly be formed through other terms and conditions. * the group’s own equity
instrument shall also be considered whether it is the substitute of cash financial asset or it is
the remaining equity after the issuer deducts liability enjoyed by the equity holder if it must
or can be used to settle a financial asset. If the former the instrument is a financial liability of
the issuer otherwise it is an equity instrument of the issuer. In certain circumstances financial
instrument contract is classified as financial liability if financial instrument contract specifies
the Company must or can use its own equity to settle the financial instrument the contractual
amount of right or obligation equals to that of the numbers of own equity instrument available
or to be paid multiplied by fair value when settling nevertheless the amount is fixed or
varied partially or fully based on the its own equity’s market price(such as interest rate
certain commodity’s or financial instrument’s price variance).When classifying a financial instrument (or its component) in the consolidated statements the
group takes all terms and conditions agreed by the its member and instrument holder into
consideration. If the group because of the instrument as a whole bears settlement obligation
by paying cash other financial asset or other means resulted in financial liability the
instrument shall be classified as financial liability.
（7） Derivative financial instrument
The group uses derivative financial instruments such as foreign exchange forward contracts
commodity forward contracts and interest rate swaps to hedge exchange rate risk commodity
price risk and interest rate risk respectively. Derivative financial instruments are initially
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
46Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Inventories are raw material low-valuable consumable goods on transit working-in-progress
finished goods and cost to fulfil the contract etc.The inventories are processed on perpetual inventory system and are measured at their actual
cost on acquisition. Weighted average cost method is taken for measuring the inventory
dispatched or used. Low value consumables and packaging materials is recognized in the
income statement by one-off method.At the balance sheet date inventory is measured at the lower of cost and net realizable value.If the cost of the inventory is higher than its net realizable value a provision is made for the
decline in the price of the inventory and it is accounted in the current profit or loss. Net
realizable value is the amount of the estimated selling price of inventory in daily activities
less the estimated costs to be incurred at completion estimated selling expenses and related
taxes.Impairment provision for the group's raw materials/goods in stock/WIP/ cost to fulfil the
contract is made on an individual inventory item and when determining its net realizable
value the inventory of goods in stock and materials used for sale are determined at the
estimated selling price of the inventory less estimated selling expenses and related taxes;
Inventory of materials held for use in production is determined at the estimated selling price
of the finished goods produced less the estimated costs to be incurred up to completion
estimated selling expenses.
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
47Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
contract as a contract liability when the payment is made or the payment is due (whichever is
earlier).
13. Assets relevant to contract cost
(1) Assets recognition methods in relation to contract cost
Assets relevant to contract cost in the group include cost to fulfill the contract and cost to
obtain a contract. Cost to fulfill the contract is presented under inventory and other
non-current assets. Cost to obtain a contract is presented under other current assets and other
non-current assets.If the costs incurred in fulfilling a contract with a customer are not within the scope of
another Standard such as inventory fixed assets or intangible assets an entity shall
recognize an asset from the costs incurred to fulfill a contract only if those costs meet all of
the following criteria: the costs relate directly to a contract or to an anticipated contract
including direct labor direct materials and overheads which is clearly stated to be borne by
the client and any other cost in line with the contract; the costs enhance resources of the group
that will be used in performance obligations in the future; and the costs are expected to be
recovered.An asset as the incremental costs of obtaining a contract with a customer shall be recognized
if the group expects to recover those costs. The group may recognize the incremental costs of
obtaining a contract as an expense when incurred if the amortization period of the asset t is
one year or less. The incremental costs of obtaining a contract are those costs that the group
incurs to obtain a contract with a customer that it would not have incurred if the contract had
not been obtained (for example a sales commission). Other expenses incurred in order to
obtain a contract rather than the incremental cost and expected to be recovered (regardless of
whether the contract is obtained such as travelling expenses) shall be recognized as an
expense when incurred unless those costs are explicitly chargeable to the customer.
(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
48Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
is expected to obtain due to the transfer of the commodities related to the asset; * Estimate
the costs to be incurred for the transfer of the relevant goods
14. Long-term equity investment
Long term equity investments are the equity investment in subsidiary in associated company
and in joint venture.
(1) Judgement on control joint control and significant influence
Equity investments in which the group has a significant impact on the investee are
investments in associates.Significant influence refers to having the power to participate in the decision-making of the
financial and operational policies of the investee but not being able to control or jointly
control the formulation of these policies with other parties. Significant influence exists when
the entity directly or indirectly owned 20% or more but less than 50% voting shares in the
investee unless there is explicit evidence that the company cannot participate in the
production and operation decisions of the investee or have control over the investee.When having less than 20% voting shares the group’s significant influence still exists if the
followings are taken into accounts: representation on the board of directors or equivalent
governing body of the investee participation in financial or operating activities
policy-making processes material transactions between the investor and the investee
interchange of managerial personnel or provision of essential technical information etc.The group’s joint venture investment is an equity investment whereby the parties have jointly
control over it and have rights to the net assets of the investee. Joint control is the
contractually agreed sharing of control of an arrangement which exists only when decisions
about the relevant activities require the unanimous consent of the parties sharing control. The
group’s judgement on joint control is based on the joint arrangement that all participants or
combinations of participants collectively control the arrangement and that decisions relating
to the activities of the arrangement must be made with the unanimous consent of those
participants who collectively control the arrangement.
(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
49Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
company. If the carrying amount of net assets at the combination date in the acquired
company is negative investment shall be recognized at zero.If long-term equity investment is acquired through business combination not under common
control initial investment cost shall be the combination cost. If the equity investment of
investee not under common control is acquired by stages and it’s not a bundled transaction
the carrying amount of the equity investment held previously plus newly increased investment
cost are taken as the initial investment cost.Apart from the long-term equity investments acquired through business combination the cost
of investment for the long-term equity investments acquired by cash payment is the amount of
cash paid relevant direct expense tax and other necessary expenses for the investment. For
long-term equity investment acquired by issuing equity instruments the cost of investment is
the fair value of the equity instrument issued.The Company adopts cost model for investment in subsidiary on separate financial statement.Under cost model the long-term equity investment is measured at initial investment cost.When more investment is added it shall increase the carrying amount of investment by
adjusting the fair value of additional investment and relevant transaction expenses. Cash
dividend or profit declared by investee shall be recognized as investment gain/loss for the
period based on the proportion share in the investee.The Company adopts equity method for investment in joint venture and affiliate. Under
equity method if the initial investment cost is greater than the share of fair value of the
identifiable net assets in the investee the initial investment cost of long-term equity
investment is no need to be adjusted; If the initial investment cost is less than the share of fair
value of the identifiable net assets in the investee the difference shall be recorded into the
current profit and loss and the cost of long-term equity investment shall be adjusted at the
same time.Long-term equity investment subsequently under equity method shall be adjusted for it
carrying amount according to the share of equity increase or decrease in the investee. The
Company shall recognize its share of the investee’s net gain or losses after the investee’s net
profit adjustment based on the fair value of the investee’s individual identifiable assets at
the acquisition date after making appropriate adjustments thereto in conformity with the
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
50Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
investments in investee are written down to zero except where the group is obliged to bear
additional losses.The difference between the book value of long-term equity investment and actual acquisition
cost shall be recognized in the gain or loss of investment when the long-term equity
investment is disposed of.For long-term investments accounted under equity method other comprehensive income
recorded shall be accounted on the same basis as the investee directly disposing of related
assets or liability when equity method is not used any longer. The movements of
shareholder’s equity other than the net profit or loss other comprehensive income and profit
distribution previously recorded in the shareholder’s equity of the Company are recycled to
investment income for the period on disposal.If the remaining equity after the partially disposal is still accounted for under the equity
method the relevant other comprehensive income previously recognized under the equity
method is treated on the same basis as the direct disposal of the relevant assets or liabilities
by the investee and is carried forward on a proportional basis and the owner's equity which
is apart from net profit and loss other comprehensive income and profit distribution of the
investee shall be recognized and proportionally transfers to current investment income.Where the entity has no longer joint control or significant influence in the investee company
as a result of partially disposal of the investment the remaining investment will be accounted
for in line with the Recognition and Measurement of Financial Instruments Standard -No 22
of Accounting Standards for Business Enterprises(No7 Caikuai [2017]) and the difference
between the fair value of remaining investment at the date of losing joint control or
significant influence and its carrying amount shall be recognized in the profit or loss for the
year.Where the entity has no longer control over the investee company as a result of partially
disposal of the investment the remaining investment will be changed to be accounted for
using equity method providing remaining joint control or significant influence over the
investee company. The difference between carrying amount of disposed investment and
consideration received actually shall be recognized as investment gain or loss for the period
and investment shall be adjusted accordingly as if it was accounted for under equity model
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
51Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
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.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
52Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
construction period the capitalized borrowing cost and other related expenses before the
construction reaches the condition expected for use.Constructions in progress are transferred to fixed assets based on the construction budget and
actual costs on the date when completing and achieving estimated usable status and the fixed
assets should be depreciated in the next month. Adjustment will be made upon confirmation
of their actual values after implementing the completion and settlement procedures.The construction in progress shall be transferred to fixed assets when it reaches the expected
usable state and the criteria are as follows:
Items Criteria of transferring to FA
Property and Buildings Earlier of actual starting of use and completion of inspection
Machinery equipment Earlier of actual starting of use and completion of installation / inspection
18. Intangible asset
The group’s intangible assets include use right of land patents non-patented technologies and
others. They are measured at actual cost at acquisition day. For acquired assets the actual cost
is measured at actual price paid and relevant other expenses. Invested intangible asset shall be
measured at actual cost as contracted or agreed value however fair value will be taken if the
contracted or agreed value is not fair.
(1) Useful life and the basis for recognition estimation amortization method or review
procedure
Use right of land shall be amortized evenly within the amortization period since the remised
date. Patents technologies and other intangible assets are amortized over the shortest of their
estimated useful life contractual beneficial period and useful life specified in the law.Amortization charge is included in the cost of assets or expenses as appropriate for the
period according to the usage of the assets. At the end of the year for definite life of
intangible assets their estimated useful life and amortization method shall be assessed. Any
change shall be treated as change on accounting estimate.
(2) The scope and accounting of research and development
The group separates the expenditure on internal research and development projects into
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.
53Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
(b)its intention to complete the intangible asset and use or sell it.(c)how the intangible asset will generate probable future economic benefits. Among other
things the entity can demonstrate the existence of a market for the output of the intangible
asset or the intangible asset itself or if it is to be used internally the usefulness of the
intangible asset.(d)the availability of adequate technical financial and other resources to complete the
development and to use or sell the intangible asset.(e)its ability to measure reliably the expenditure attributable to the intangible asset during its
development.Any expenditure not qualifying for the above conditions shall be accounted into profit and
loss account.The projects expenditure will go to the development stage and start to be capitalized after
meeting the above conditions and passing the technical feasibility and economic feasibility
studies and being approved after evaluation.
19. Impairment of long-term assets
The group assesses whether there is any indication that long-term equity investment
investment property under cost model fixed assets construction in progress right-of-use
asset and intangible assets with definite useful life may be impaired. If there is any indication
that an asset may be impaired the asset will be tested for impairment. Goodwill and
intangible asset with infinite useful life and development cost not reaching available for use
status are tested for impairment annually no matter there is any indication of impairment or
not.
(1) Non-current asset impairment excluding financial asset (expect goodwill)
When testing the impairment the group recognized the recoverable amount of an asset which
the higher of its fair value less costs to sell and the present value of the future cash flows
expected to be derived from the asset. After impairment test any difference of carrying
amount over its recoverable amount shall be recognized as impairment loss.The group estimates recoverable amount based on an individual asset. If it is not possible to
estimate the recoverable amount of an individual asset the recoverable amount is determined
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
54Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
value of future cash flows management must estimate the expected future cash flows of the
asset or group of assets and select an appropriate discount rate to determine the present value
of future cash flows.
(2) Goodwill impairment
The group allocates the carrying value of the goodwill generated from the business
combination to the relevant asset group or to the relevant asset group combination which is
difficult to allocate to the relevant asset group，in a reasonable way from the date of purchase.When conducting impairment tests on goodwill contained within the related asset group or
asset group combination if there are signs of impairment in the asset group or asset group
combination related to goodwill the impairment test shall firstly be conducted on the asset
group or asset group combination excluding goodwill and the recoverable amount shall be
calculated and compared with the relevant carrying value so to recognize the corresponding
impairment loss; Then an impairment test is conducted on the asset group or asset group
combination containing goodwill to compare the carrying value with the recoverable amount.If the recoverable amount is lower than the carrying value the impairment loss amount is first
offset against the carrying value of goodwill allocated to the asset group or asset group
combination and then offset the carrying value of the asset group and asset group
combination based on the proportion of the carrying value of other assets in the asset group or
asset group combination without goodwill.The methodology parameters and assumptions of the goodwill impairment test are referred in
Notes VI.19.Once the impairment loss on the assets is recognized it can not be reversed in a subsequent
period.
20. Long-term prepaid expense
The group's long-term prepaid expense refers to landscape fees renovation &decoration
expenses and other expenses paid and should be allocated over 1year.It will be amortized
evenly within its beneficial period. The remaining unamortized expense should be charged
into income statement if long-term prepaid expense can not bring the beneficial inflows.Landscape fees will be amortized for 10 years and renovation& decoration fees will be
amortized for 5-10 years.
21. Employee benefits
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
55Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
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 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
56Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
commodities;
3) the contract has explicit payment terms related to the transferred goods;
4) the contract has commercial substance where the performance of the contract will change
the company's future cash flow risk time distribution or amount;
5) the consideration to which the company is entitled as a result of the transfer of goods to the
customer is likely to be recovered.When the group transfers control of a good or service over time it satisfies a performance
obligation and recognizes revenue over time only if one of the following criteria is met
otherwise it shall be the performance obligation at a point in time.
1) the customer simultaneously receives and consumes the benefits provided by the entity’s
performance as the entity performs
2) the group’s performance creates or enhances an asset (for example work in progress)
that the customer controls as the asset is created or enhanced
3) the group’s performance does not create an asset with an alternative use to the entity and
the entity has an enforceable right to payment for performance completed to date
(1) Revenue policy from sales
The group’s revenue mainly includes income from sale of goods and installation of the whole
set of refrigeration engineering project.Based on the actual situation the group recognizes the revenue as the followings；
1) Domestic sales: the sales contract with customers generally includes the performance of
obligation of transferring goods. The group recognizes the revenue at the time when the
arrival acceptance is completed by customers having taken all followings into consideration:
present debt collection right entitled to the sales of goods the transfer of the main risks and
rewards in the ownership of the goods the transfer of the legal ownership entitled to the
goods the transfer of physical assets the acceptance of goods by customers.
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
57Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
according to the performance progress which is determined by the percentage of the
cumulative actual cost to expected total contract cost. When the performance progress can not
be estimated reasonably the group recognizes the revenue to the extent where the already
incurred cost can be compensated until the performance progress can be decided.
(2) Determining and allocating the transaction price
If the contract includes two or more performance obligations at the inception date of contract
the group shall allocate the transaction price to each performance obligation identified in the
contract on a relative standalone selling price ratio basis and measure the revenue at the
allocated transaction price to each performance. If any solid evidence indicates that contract
discount is only relevant to one or some (not all) performance obligations the discount shall
be allocated into the one or these performance obligations.An amount of consideration can vary because of cash discounts price guarantee. The group
determines the best estimate of the variable consideration in line with the expectation or the
amount that most probably incurred but includes in the transaction price the variable
consideration not exceeding the amount that is highly unlikely to result in a material reversal
of cumulative revenue recognized when the relevant uncertainty is eliminated.The group accounts for consideration payable to a customer as a reduction of the transaction
price and therefore of revenue unless the payment to the customer is in exchange for a
distinct good or service. Accordingly the revenue shall be recognized at the later of the
revenue recognition and the consideration paid to a customer.For sales with a right of return the group recognizes the revenue for the consideration
expected to have the right to receive arising from transferring the goods to customers when
the customer receives the control right over the relevant goods and recognizes the expected
refund amount as provision. At the same time receivable of return cost as an asset shall be
recognized for the carrying value of the returned goods when it is expected to be transferred
less expected cost for getting it back (including decline in value) and net amount of the above
asset cost shall be carried over to the cost. At every balance sheet date the group will reassess
the future sales returns and remeasure the above assets and liabilities.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
58Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
sold and it is the quality assurance for promising the goods are in commodity with the agreed
standards and shall be accounted for as Note III、22 provision.
24. Government grants
Government grant shall be recognized only when all attached conditions are met and the grant
is possibly received. Where a government grant is in the form of a transfer of monetary asset
it is measured at the amount received. Where a government grant is made on the basis of
fixed amount or conclusive evidence indicates relevant conditions for financial support are
met and expect to probably receive the fund it is measured at the amount receivable. Where a
government grant is in the form of a transfer of non-monetary asset it is measured at fair
value. If fair value cannot be determined reliably it is measured at a nominal amount of
RMB1 Yuan.Assets-related government grant is the government fund obtained by the group for the
purpose of long-term assets purchase and construction or establishment in the other forms.Income-related grants are the grant given by the government apart from the assets-related
grants. If no grant objective indicated clearly in the government documents the group shall
judge it according to the principle mentioned above. If the grant is difficult to be separated it
shall be considered as income-related grant as a whole.Assets-related government grants are recognized as deferred income which shall be evenly
amortized to profit or loss over the useful life of the related asset. Any assets are sold
transferred disposed of or impaired earlier than their useful life expired date the remaining
balance of deferred income which hasn’t been allocated shall be carried forward to the
income statement when the assets are disposed of.Income-related government grants that is a compensation for related expenses or losses to be
incurred in subsequent periods are recognized as deferred income and credited to the relevant
period when the related expenses are incurred. Government grants relating to compensation
for related expenses or losses already incurred are charged directly to the profit or loss for the
period. Government grants related to daily business shall be recognized as other income in
accordance with business nature or offsetting related expenses otherwise shall be recognized
as non-operating income or expenses.
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
59Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
followings : (1) temporary differences arise from the initial recognition of goodwill or the
initial recognition of assets or liabilities arising from non-business combinations that do not
affect accounting profits or taxable income (or deductible losses); (2) The group is able to
control the timing of the reversal of taxable temporary differences related to investments in
subsidiaries associates and joint ventures and such temporary differences are likely not to be
reversed in the foreseeable future.The group recognizes deferred income tax assets for deductible temporary differences
deductible losses and tax deductions that are likely to be obtained to offset future taxable
income except for the following situations: (1) the initial recognition of assets or liabilities
arising from non-business combination transactions where temporary differences do not affect
accounting profits or taxable income (or deductible losses); (2) Deductible temporary
differences related to investments in subsidiaries associates and joint ventures that cannot
simultaneously meet the following conditions: temporary differences are likely to be reversed
in the foreseeable future and taxable income is likely to be obtained in the future to offset
deductible temporary differences.The group recognizes deferred income tax assets for all unused deductible losses to the extent
that there is likely to be sufficient taxable income to offset the deductible losses. The
management uses plenty of judgment to estimate the timing and amount of future taxable
income combined with tax planning strategies to determine the amount of deferred income
tax assets which results in uncertainty.On the balance sheet date deferred income tax assets and deferred income tax liabilities are
measured at the applicable tax rate during the expected period of asset recovery or liability
settlement.When the following conditions are met simultaneously the group shall present the deferred
income tax assets and deferred income tax liabilities at the net amount after offsetting: The
group has the legal right to settle the current income tax assets and deferred income tax
liabilities at the net amount; Deferred income tax assets and deferred income tax liabilities are
related to the income tax levied by the same tax collection and management authority on the
same taxpayer or on different taxpayers. However in the future within the term when each
significant deferred income tax asset and deferred income tax liability to be reversed the
involved taxpayers intend to settle the current income tax assets and liabilities on a net basis
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
60Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
asset) for a period of time in exchange for consideration.At inception of a contract the group shall assess whether the contract is or contains a lease.A contract is or contains a lease if the contract conveys the right to control the use of an or
many identified assets for a period of time in exchange for consideration.For a contract that is or contains several leases the group shall separate the contract and
account each lease separately. The group shall account for each lease component separately
from non-lease components of the contract if the contract contains lease and non-lease
components. Each leasing part is accounted for according to the leasing standards while the
non-leasing part is accounted for according to other applicable accounting standards. If the
contract includes both leasing and non-leasing parts the group as the lessor will split the
leasing and non-leasing parts and conduct accounting treatment separately. Each leasing part
will be accounted for according to the leasing standards while the non-leasing part will be
accounted for according to other applicable accounting standards. As the lessee the group
chooses not to separate the lease and non-lease and joins each leased part and its non- leased
parts separately into a lease accounting treatment shall be carried out in accordance with
leasing standards; However if the contract includes embedded derivative instruments that
should be split the group will not merge them with the leasing portion for accounting
treatment.
(2) As a leasee
1) Recognition
At the commencement date the group as a lessee shall recognize a right-of-use asset and a
lease obligation except short-term lease and low value asset lease.Right-of-use assets represents a lessee’s right to use an underlying asset for the lease term
and is initially measured at cost.The cost of the right-of-use asset shall comprise:
* the amount of the initial measurement of the lease liability
* any lease payments made at or before the commencement date less any lease incentives
received which is the incremental cost for the lease
* any initial direct costs incurred by the lessee which is the incremental cost
* an estimate of costs to be incurred by the lessee in dismantling and removing the
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
61Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
accordingly.The group shall follow the following principles when determining the depreciation life of the
right-of-use asset: if the ownership of the leased asset can be reasonably determined at the
end of the lease term depreciation shall be calculated and deducted during the remaining
service life of the leased asset; Where it is not certain that the ownership of the leased asset
can be acquired at the end of the lease term depreciation shall be calculated at the shorter of
the lease term and the remaining service life of the leased asset. The depreciation amount
shall be accounted into cost of assets or profit and loss account.At the commencement date a lessee shall measure the lease liability at the present value of
the lease payments that are not paid at that date.The lease payments included in the measurement of the lease liability comprise the following
payments for the right to use the underlying asset during the lease term that are not paid at the
commencement date: * fixed payments (including in-substance fixed payments) less any
lease incentives receivable;* variable lease payments that depend on an index or a rate
initially measured using the index or rate as at the commencement date;* the exercise price
of a purchase option if the lessee is reasonably certain to exercise that option; * payments
of penalties for terminating the lease if the lessee will certainly exercise an option to
terminate the lease during the lease term;* amounts expected to be payable by the lessee
under residual value guarantees.When calculating the present value of the lease payments interest rate implicit in the lease
shall be used. If the rate cannot be readily determined the group shall use the lessee’s
incremental borrowing rate. Interest on the lease liability in each period during the lease term
shall be calculated based on a constant periodic rate of interest and be recognized as in profit
or loss unless its capitalization.After the lease commencement date the group increases the carrying amount of lease liability
when recognizing the interest on lease liability and; decreases the carrying amount of lease
liability when making lease payment. The group remeasures the lease liability in accordance
with the present value of revised lease payment when the followings incur: * change of
in-substance fixed payments (subject to original discounting rate) * change of amounts
expected to be payable under residual value guarantees(subject to original discounting rate)
* change of an index or a rate used for future lease payments(subject to revised discounting
rate) * change in assessment of a buy option(subject to revised discounting rate) *
change in assessment of a renew option or termination option or actual situation(subject to
revised discounting rate).
2) Short-term lease and low value asset lease
62Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
The group has chosen not to recognize the right-of-use asset and lease liability for short-term
lease (lease term less than 12 months) and low value asset (30000 Yuan) when it is single
leased new asset. In this case lease payment will be accounted directly in profit or loss or on
the straight-line basis in profit or loss.
3) Sales and lease back
The group as a seller and a lease within the sales and lease back transaction assesses whether
the transfer of the asset is a sale. If the transfer of assets is not a sale the group shall continue
to recognize the transferred assets and at the same time recognize a financial liability equal to
the transfer income (Note VI. 34 lease). If the transfer of assets is a sale the group shall
measure the right-of-use asset arising from the leaseback at the proportion of the previous
carrying amount of the asset that relates to the right of use retained by the group. Accordingly
the group shall recognize only the amount of any gain or loss that relates to the rights
transferred to the buyer-lessor.
(3) As a lessor
The group as a lessor classified it as a finance lease if it transfers substantially all the risks
and rewards incidental to ownership of an underlying asset unless an operating lease.
1) Financing lease
At the commencement date the group shall recognize the lease payment receivable and
derecognize of finance lease asset. When initially measuring the lease payment receivable net
lease investment value shall be used for the lease payment receivable.Net lease investment value equals to the any residual value guarantees plus the PV of undue
lease receivable discounted at the interest rate implicit in the lease. The group shall recognize
interest income over the lease term based on a constant periodic rate. The variable lease
payment obtained by the group related to operating leases which are not included in the net
lease investment shall be accounted for in the current profit and loss when actually incurred
2) Operating lease
Lease payment received shall be recognized as lease income on a straight-line basis within the
period.The initial direct expenses incurred by the group in relation to operating leases are capitalized
to the cost of leasing the underlying asset and are recognized in profit or loss by instalments
over the lease period on the same basis as rental income. Variable lease payments made by the
group in relation to operating leases that are not included in lease collections are recognized
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
63Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
effective date of the modification considering any received in advance or lease payments
receivable relating to the original lease as part of the lease payments receivable for the new
lease
27. Fair value measurement
The group measures investment property derivative financial instruments and equity
instruments at fair value at each balance sheet date. Fair value refers to the price that market
participants can receive by selling an asset or can pay for transferring a liability in an orderly
transaction that takes place on the measurement date.Assets and liabilities measured or disclosed at fair value in the financial statements are
determined to belong to the different fair value level based on the lowest level of input values
that are significant to the fair value measurement as a whole: level 1 input is the unadjusted
quoted price for identical asset or liability available at the active market on the measurement
date; level 2 input is the directly or indirectly observable input for relevant asset or liability
apart from level 1 input; level 3 input is the unobservable input for relevant asset or liability.
(For levels 1 and 2) For financial instruments traded in an active market the group determines
their fair value by their active market quotes; For financial instruments that are not traded in
an active market the group uses valuation techniques to determine their fair value and the
valuation model used is mainly the discounted cash flow model. The input of valuation
techniques mainly includes: risk-free interest rate of debt credit premium and liquidity
premium; estimator coefficient. and liquidity discount of equity.
(For level 3) The fair value of level 3 is determined on the basis of the group's valuation
models such as the discounted cash flow model. The group also considers the initial
transaction price recent transactions of the same or similar financial instruments or full
third-party transactions of comparable financial instruments. As at 31 December 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.
28. Significant changes in accounting policies and estimates
(1) On December 5 2025 the Ministry of Finance issued the "Interpretation No. 19 of the
Enterprise Accounting Standards" (Finance and Accounting [2025] No. 32) to regulate non
same control
64Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
The recognition and measurement of compensatory assets in business combinations the
treatment of capital reserves when disposing of subsidiaries acquired through business
combinations under the same control the termination of recognition of financial liabilities
settled through electronic payment systems the refinement of cash flow characteristics (SPPI)
evaluation of financial asset contracts and the classification disclosure of fair value changes
in FVOCI equity instrument investments will be implemented from January 1 2026.
(2) On June 4 2026 the Ministry of Finance issued the "Interpretation of Enterprise
Accounting Standards No. 20" (Finance and Accounting [2026] No. 7) which further refines
the evaluation of cash flow characteristics of financial asset contracts (non recourse financial
assets and contract linked instruments) and the foreign currency conversion and disclosure
when the currency lacks convertibility. It will be implemented from the date of issuance.After evaluation the Group is currently not involved in the relevant matters stipulated in this
interpretation and all provisions of Interpretation No. 19 and No. 20 have no impact on the
Group's financial statements.
65Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 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 Air-conditioning Equipment Co. Ltd. 15%
Dalian Bingshan Guardian Automation Co. Ltd. 15%
Dalian Bingshan-RYOSETSU Quick Freezing Equipment Co. Ltd. 25%
Wuhan NewWorld Refrigeration Industrial Co. Ltd. 15%
Dalian Bingshan Engineering & Trading Co. Ltd 25%
Dalian Universe Thermal Technology Co. Ltd. 25%
Chengdu Bingshan Refrigeration Engineering Co. Ltd. 25%
Wuhan NewWorld Air-conditioning Refrigeration Engineering Co. Ltd 25%
Sonyo Compressor(Dalian)Co. Ltd. 15%
Sonyo Refrigeration System (Dalian) Co. Ltd. 15%
Sonyo Refrigeration (Dalian) Co. Ltd. 15%
HKD profit ≤ 2
Bingshan International Trade (Hong Kong) Limited million 8.25%;HKD profit>2
million 16.5%
Dalian Bingshan Part Technology Co. Ltd. 5%
2. Tax preference
The Company obtained the qualification of high and new technology enterprises on December
2023 approved by Dalian Science Technology Bureau Dalian Finance Bureau Dalian State
66Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Tax Bureau and Local tax Bureau. The Certificate No. is GR202321201041 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 Dalian Bingshan Air-conditioning Equipment Co. Ltd. obtained
the qualification of high and new technology enterprises on December 2023 approved by
Dalian Science Technology Bureau Dalian Finance Bureau Dalian State Tax Bureau and
Local tax Bureau. The Certificate No. is GR202321201161 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 December 2024 approved by Dalian
Science Technology Bureau Dalian Finance Bureau Dalian State Tax Bureau and Local tax
Bureau. The Certificate No. is GR202421200978 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 November 2024 approved by Hubei
Science Technology Bureau Hubei Finance Bureau Hubei State Tax Bureau and Hubei Local
tax Bureau. The Certificate No. is GR202442000336 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 Sonyo Compressor(Dalian)Co. Ltd.(hereinafter referred to
as“ Sonyo Compressor” obtained the qualification of high and new technology enterprises on
December 2024 approved by Dalian Science Technology Bureau Dalian Finance Bureau
Dalian State Tax Bureau and Local tax Bureau. The Certificate No. is GR202421200617 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 December 2023 approved by Dalian Science Technology Bureau Dalian
Finance Bureau Dalian State Tax Bureau and Local tax Bureau. The Certificate No. is
GR202321201152 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
67Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
as“ Sonyo Refrigeration System” obtained the qualification of high and new technology
enterprises on December 2024 approved by Dalian Science Technology Bureau Dalian
Finance Bureau Dalian State Tax Bureau and Local tax Bureau. The Certificate No. is
GR202421200850 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.VII. Notes to Consolidated Financial Statements
The financial statement data disclosed below unless otherwise specified "beginning" refers
to January 1 2026 "end of period" refers to June 30 2026 "current period" refers to the
period from January 1 to June 30 2026 and "previous period" refers to the period from
January 1 to June 30 2025 with the currency unit being RMB yuan.
1. Cash and cash in bank
Item Closing Balance Opening Balance
Cash on hand 9678.51 11965.04
Cash in bank 593956472.54 825008807.79
Other cash and cash equivalents 27739314.32 56940349.45
Total 621705465.37 881961122.28
Note1: within the bank deposits 110685722.16 Yuan was time deposits and interest income;
frozen fund of 10578125.84 Yuan and guarantee deposit for migrant worker of
219297.00Yuan.
Note2: Other monetary funds are bank acceptance deposit 8410882.68Yuan deposit for
letter of guarantee is 19328431.64 Yuan.
2. Notes receivable
(1) Category of notes receivable
Items Closing Balance Opening Balance
Bank acceptance notes 252177833.63 315005979.40
Commercial acceptance notes 15188020.87 12067382.02
Total 267365854.50 327073361.42
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 %
68Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Including:
Notes receivable with 100
2682173748515200.3267365328384177100.0131080.4327073360.4
provision for bad debts by .00.58 .08 2% 854.50 .79 0% 17.37 0% 2
%
combination
Including:
25217783394.25217731500597995.93315005979.4
Bank acceptance bill .63 02% 833.63 .40 % 0
16039540.5.98515205.315188013378198.131089.8
trade acceptance draft 4.07% 12067381.0295 8% .08 1% 20.87 39 17.37 0%
100
Total 268217374 851520 0.3 267365 328384177 100.0 13108 0.4 327073360.4.00.58.082%854.50.790%17.370%2
%
Provision for bad debts by combination:
Closing Balance
Items
Booking balance Bad debt provision Provision ratio
Banker's acceptance draft 252177833.63
Trade acceptance draft 16039540.95 851520.08 5.31%
Total 268217374.58 851520.08
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:
Provision for bad debts in the current period:
Opening Change during the year Closing
Category
balance Accrued Collected/reversed Written-off Others Balance
Bad debt
provision for 1310816.37 352740.37 812036.66 851520.08
notes receivable
Total 1310816.37 352740.37 812036.66 851520.08
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 850000.00
Total 850000.00
69Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
(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 108166431.13
Trade acceptance draft 2069044.00
Total 110235475.13
3. Accounts receivable
(1) Category of accounts receivable
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
13037034.360.53%10229483.9078.46%2807550.46
on individual basis
Bad debt provision
2439962224.4299.47%616160646.2125.25%1823801578.21
on group
Including: aging as
characteristics of 2439962224.42 99.47% 616160646.21 25.25% 1823801578.21
credit risk
Total 2452999258.78 100.00% 626390130.11 25.54% 1826609128.67
(Continued)
Opening balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
13037034.360.58%10229483.9078.46%2807550.46
on individual basis
Bad debt provision
2249684720.0599.42%616935655.9327.42%1632749064.12
on group
Including: aging as
characteristics of 2249684720.05 99.42% 616935655.93 27.42% 1632749064.12
credit risk
Total 2262721754.41 100.00% 627165139.83 27.72% 1635556614.58
Aging Closing Balance
Within1 year 1276004089.43
70Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
1to 2 years 400904978.52
2 to 3 years 228567724.18
More than 3 years 547522466.65
3 to 4 years 156643898.93
4 to 5 years 128842669.64
More than 5 years 262035898.08
Total 2452999258.78
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
Items Closing BalanceBooking balance Provision %
within 1 year 1276004089.43 61012443.01 4.78%
1-2 years 400904978.52 65473950.74 16.33%
2-3 years 228567724.18 68586779.36 30.01%
3-4 years 155535219.76 76425287.43 49.14%
4-5 years 123369225.65 89081198.81 72.21%
more than 5 years 255580986.88 255580986.88 100.00%
Total 2439962224.42 616160646.21
2) Bad debt provision accrued and written-off (withdraw)
Provision for bad debts in the current period:
Opening Change during the period Closing
Category
balance Accrued Collected/reversed Written-off Others Balance
Bad debt
provision
for 627165139.83 9021624.31 5125657.82 6863711.02 2192734.81 626390130.11
accounts
receivable
3) Accounts receivable written off in current period
Item Written off amount
Receivable actually written off 6863711.02
4. Contract asset
(1) contract asset
71Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Closing Balance
Items
Booking balance Provision Carrying amount
Undue warranty 183850261.71 24475993.01 159374268.70
Unsettled receivable of revenue
9858623.295200550.954658072.34
recognized over time
Total 193708885.00 29676543.96 164032341.04
(continued)
Opening balance
Items
Booking balance Provision Carrying amount
Undue warranty 178324350.44 22629454.12 155694896.32
Unsettled receivable of revenue
12453644.066331611.996122032.07
recognized over time
Total 190777994.50 28961066.11 161816928.39
(2) Category of contract asset based on bad debt provision method
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
1709948.800.88%1709948.80100.00%
on individual basis
Bad debt provision
191998936.2099.12%27966595.1614.57%164032341.04
on group
Including: aging as
characteristics of 191998936.20 99.12% 27966595.16 14.57% 164032341.04
credit risk
Total 193708885.00 100.00% 29676543.96 15.32% 164032341.04
(continued)
Opening Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
1709948.800.90%1709948.80100.00%
on individual basis
Bad debt provision
189068045.7099.10%27251117.3114.41%161816928.39
on group
Including: aging as 189068045.70 99.10% 27251117.31 14.41% 161816928.39
72Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Opening Balance
Items Booking balance Provision
Booking value
Amount % Amount %
characteristics of
credit risk
Total 190777994.50 100.00% 28961066.11 15.18% 161816928.39
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 2 1709948.80 1709948.80 1709948.80 1709948.80 100.00%
expected
Total 1709948.80 1709948.80 1709948.80 1709948.80 —
2) Bad debt provisions on group basis
Closing Balance
Aging Accounts Provision for Drawing proportion
receivable bad debts
Within 1 year 98253066.73 5588730.02 5.69%
1 to 2 years 65624623.67 10247750.62 15.62%
2 to 3 years 15627626.53 4550754.06 29.12%
3 to 4 years 9289438.01 4582479.77 49.33%
4 to 5years 744346.72 537046.15 72.15%
Over 5 years 2459834.54 2459834.54 100.00%
Total 191998936.20 27966595.15
(3) Bad debt provision of current period
Collected/
Category Accrued Written-off Others Reason
reversed
Undue warranty 2052651.39 989102.00 -
Unsettled receivable of
revenue recognized over -348071.54 -
time
Total 1704579.85 989102.00 -
5. Receivables financing
73Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Items Closing Balance Opening Balance
Bank acceptance notes 359361883.76 335509461.15
Total 359361883.76 335509461.15
(2) Category of accounts receivable based on bad debt provision method
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
359361883.76100.00%359361883.76
on group
Including: bank
359361883.76100.00%359361883.76
acceptance notes
Total 359361883.76 100.00% 359361883.76
(Continued)
Opening balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision on group 335509461.15 100.00% 335509461.15
Including: aging as
335509461.15100.00%335509461.15
characteristics of credit risk
Total 335509461.15 100.00% 335509461.15
(3) Pledged notes receivable up to the end of year.
Items Closing pledged amount
Bank acceptance notes 587572.14
Total 587572.14
6. Other receivables
Items Closing Balance Opening Balance
Dividends receivable 592327.29
Other receivable 38974583.06 43092575.59
Total 39566910.35 43092575.59
(1) Dividends receivable
1) Classification of Dividends Receivable
74Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Items(or Investee) Closing Balance Opening Balance
Dalian Bingshan Group Huahuida Financial Leasing
Co. Ltd. 592327.29
Total 592327.29
(2). Other receivables
1) Other receivables categorized by nature
Nature Closing Balance Opening Balance
Receivables and Payables 30897088.95 31017128.68
Guarantee deposits 35105173.36 2363019.14
Petty cash 6174651.80 31012852.10
Others 4573536.57 16337618.12
Total 76750450.68 80730618.04
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 (CreditCredit Devaluation) impairment has occurred)
Balance on January 1 2026 1605096.85 36182621.68 37787718.53
The balance of January 1 2026 in
the current period
Provision for current period 5420.43 5420.43
Reversal for current period -48955.35 147059.82 98104.47
Written-off 107882.86 2072.52 109955.38
Balance on June 30 2026 1448258.64 36333029.41 37775867.62
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 21591772.37
1-2 years 8441313.27
2-3 years 3090349.74
Over 3 years 43627015.30
3-4 years 1857474.58
4-5 years 5928081.39
Over 5 years 35841459.33
Total 76750450.68
3) Provisions for bad debts accrued recovered or reversed in the current period
Provision for bad debts in the current period:
75Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Change during the year
Opening Closing
Category Accrued Collected/re Written-
balance Others Balance
versed off
Provision for bad
debts of other 37787718.53 98104.47 109955.38 37775867.62
receivables
Total 37787718.53 98104.47 109955.38 37775867.62
4) Other receivables from the top 5 debtors
Name Category Closing Balance Aging % of the total OR Closing Balance of Provision
Export Tax
Top 1 2809523.12 Within 1 year 3.66% 102828.55
Rebate
Top 2 Deposit 2476894.20 4-5 years 3.23% 1719212.26
Top 3 Rent 2329229.79 Within 1 year 3.03% 85249.81
Top 4 Deposit 2049000.00 over 5 years 2.67% 2049000.00
Top 5 Deposit 1317572.92 over 5 years 1.72% 45324.51
Total 10982220.03 14.31% 4001615.13
7. Prepayments
(1) Aging of prepayments
Closing Balance Opening Balance
Items
Amount Percentage Amount Percentage
Within 1 year 152054125.00 86.98% 130253296.15 83.53%
1 to 2 years 16916626.71 9.68% 17677825.17 11.34%
2 to 3 years 1355386.05 0.78% 3468541.58 2.22%
Over 3 years 4495234.84 2.57% 4549988.01 2.91%
Total 174821372.60 155949650.91
(2) Prepayments from the top 5 debtors based on closing balance
The sum of top 5 of prepayment is 52008117.20 Yuan represents 29.75% of closing
balance of prepayment.
8. Inventories
(1) Categories of inventories
76Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Closing Balance
Item
Book value Provision for decline Net book value
Cost to fulfill the contract 433989598.35 9393149.14 424596449.21
Finished goods 541614439.30 23883238.93 517731200.37
Raw materials 259087349.18 25179253.61 233908095.57
Working in progress 203606340.11 32068406.53 171537933.58
Self-manufactured
semi-finished products 47733831.27 47733831.27
Goods on transit 3437245.40 3437245.40
Materials on consignment
for further processing 2119205.40 2119205.40
Low-value consumable 147056.71 147056.71
Total 1491735065.72 90524048.21 1401211017.51
(Continued)
Opening Balance
Item
Book value Provision for decline Net book value
Cost to fulfill the contract 521572675.61 9498861.27 512073814.34
Finished goods 503904845.74 32267732.46 471637113.28
Raw materials 250506901.06 31927475.12 218579425.94
Working in progress 197085943.16 33444367.83 163641575.33
Self-manufactured semi-finished
products 48763726.74 48763726.74
Goods on transit 23330604.92 351397.26 22979207.66
Materials on consignment for further
processing 2055950.08 2055950.08
Low-value consumable 183600.81 183600.81
Total 1547404248.12 107489833.94 1439914414.18
(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 31927475.12 20037.95 6768259.46 25179253.61
Working in
33444367.831375961.3032067598.34
progress
Finished goods 32267732.46 460149.88 8844643.41 23884047.12
Cost to fulfill
9498861.27105712.139393149.14
the contract
Goods on 351397.26 351397.26
77Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Increase Decrease
Opening Closing
Item Others Reverse/ Others
Balance Accrual Balance
transferred Written- off transferred
transit
Total 107489833.94 480187.83 17445973.56 90524048.21
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
Working in progress 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
Items Closing Balance Opening Balance
Long-term receivables due within one year 388297.01 359632.86
Total 388297.01 359632.86
10. Other current assets
Item Closing Balance Opening Balance
Input VAT to be deducted 22468593.17 29743674.42
Prepaid VAT 806676.67 3213956.72
The amount of income tax prepaid 970258.02 1898839.02
Contract acquisition cost 1245928.91 28301.88
Prepaid expenses 428883.13 14604.88
Total 25920339.90 34899376.92
11. Long term receivable
(1) Details
Item Closing Balance Discounted
rate
Carrying
Provision Book value
amount
Installment payment for selling 1886800.00 121072.55 1765727.45
78Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
goods
Unrealized financing income -162119.84 -162119.84 3.5%-4.35%
Transfer of long-term
receivables due within one 417613.48 29316.47 388297.01
year
Total 1307066.68 91756.08 1215310.60
(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 1307066.68 100.00% 91756.08 7.02% 1215310.60
Including: using aging as a
combination of credit risk 1724680.16 100.00% 121072.55 7.02% 1603607.61
characteristics
Transfer of long-term receivables due
417613.4829316.477.02%388297.01
within one year
Total 1307066.68 100.00% 91756.08 7.02% 1215310.60
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 1307066.68 91756.08 7.02%
Total 1307066.68 91756.08
2) The bad debt provision under expected credit loss model
1st stage 2nd stage 3rd stage
Bad debt Expected credit loss within Expected credit loss
Expected credit loss Total
provision the whole period (no within the whole period
within 12 months
impairment) (impairment incurred)
Opening balance 91794.40 91794.40
Opening balance
————
during the year
--transfer to the 2nd
----
stage
--transfer to the 3rd - - - -
79Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
stage
--reverse to the 2nd
----
stage
----reverse to the
----
1st stage
Accrued -38.32 -38.32
Reverse - - - -
Cancelation - - - -
Written off - - - -
Other movement - - - -
Closing balance 91756.08 91756.08
(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
91794.40-38.3291756.08
provision
Total 91794.40 -38.32 91756.08
8012.Long-term equity investments
Increase/Decrease
Gains and
Beginning losses Adjustment of Change Cash bonus or
Provision for
Investee recognized other profits impairment
Ending Provision for
balance Increased Decreased under the comprehensive of other
balance impairment
equity announced to
of the Others
equity income issue current
method period
Associates — — — — — — — — — — —
Dalian Honjo Chemical
Co. Ltd 10709370.90 236269.52 10945640.42
Keihin-Grand Ocean
Thermal Technology 49614057.86 -1538958.16 48075099.70
(Dalian)Co.Ltd.
Dalian Fuji Bingshan
Vending Machine Co. Ltd. 67119564.34 -596912.66 66522651.68
MHI Bingshan
Refrigeration (Dalian) 17053051.54 -1456899.31 15596152.23
Co.Ltd.Dalian Fuji Bingshan
Vending Machine Sales Co.Ltd
Jiangsu Jingxue Insulation
Technology Co.Ltd (N4) 143558044.80 *.** *.**
Dalian Bingshan Metal
Technology Co.Ltd. 138895377.85 12049558.21 150944936.06
Dalian Bingshan Group
Huahuida Financial Leasing 47438452.34 *.** 592327.29 *.**
Co. Ltd
Wuhan Sikafu Power
Control Equipment Co. Ltd 6809145.00 1671353.48 8480498.48
PT BINGSHAN MAKMUR
1831853.6877572.751909426.43
INDONESTA
Total 483028918.31 12042631.59 592327.29 494479222.61
81Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
13.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 254728632.83 26094438.38 280823071.21
2. addition 12337300.00 2949800.00 15287100.00
(1) FA\transferred from CIP 12337300.00 2949800.00 15287100.00
3. decrease
4. closing balance 267065932.83 29044238.38 296110171.21
II. Accumulated depreciation — — —
1. opening balance 145078623.65 14394259.09 159472882.74
2. addition 3105243.16 372679.19 3477922.35
(1) accrued/amortization 2905790.12 260944.38 3166734.50
(2) FA\transferred from CIP 199453.04 111734.81 311187.85
3. decrease
4. closing balance 148183866.81 14766938.28 162950805.09
III. Impairment reserve — — —
1. opening balance - - -
2. addition
3. decrease
4. closing balance
IV. Book value — — —
1. Closing book value 118882066.02 14277300.10 133159366.12
2. Opening book value 109650009.18 11700179.29 121350188.47
(3) Investment property without ownership certificate
There are no investment properties with incomplete property ownership certificates this year.
82Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
15. Fixed assets
Items Closing Book Value Opening Book Value
Fixed asset 1210192835.36 1261222376.24
Total 1210192835.36 1261222376.24
(1) Fixed assets detail
Property& Machinery Transportation
Item Other equipment Total
buildings equipment equipment
I. Initial cost — — — — —
1105295981.5
1.Opening balance 1810219662.82 22852217.83 241035515.65 3179403377.800
2. Increase 4943793.58 11595714.04 2322076.13 2494278.37 21355862.12
(1) Purchase 1306272.22 1421238.94 1621687.80 4349198.96
(2) Transferred from
4943793.589776293.96900837.19872590.5716493515.30
construction-in-progress
(3) Acquired from business
combination
(4) financial lease 513147.86 513147.86
3. Decrease 12467895.56 5841696.73 2337055.24 234877.96 20881525.49
(1) Disposal 130595.56 5841696.73 2337055.24 234877.96 8544225.49
(2) transferred into investment
12337300.0012337300.00
property
1097771879.5
4.Closing balance 1815973680.13 22837238.72 243294916.06 3179877714.432
II. Accumulated depreciation — — — — —
1.Opening balance 403059216.58 1320306591.30 16694318.28 168008078.22 1908068204.38
2. Increase 15814548.44 36266232.88 693278.58 6180513.79 58954573.69
(1) Accrued 15814548.44 36248822.50 693278.58 6180513.79 58937163.31
(2) Acquired from business
combination
(3) financial lease 17410.38 17410.38
3. Decrease 209509.37 4926203.90 1968988.95 224595.86 7329298.08
(1) Disposal 10056.33 4926203.90 1968988.95 224595.86 7129845.04
(2) transferred into investment
199453.04199453.04
property
4.Closing balance 418664255.65 1351646620.28 15418607.91 173963996.15 1959693479.99
III. Impairment reserve — — — — —
1.Opening balance 1113828.33 6211608.15 286519.26 2500841.44 10112797.18
83Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Property& Machinery Transportation
Item Other equipment Total
buildings equipment equipment
2. Increase
(1)Acquired from business
combination
3. Decrease 121398.10 121398.10
(1) Disposal 121398.10 121398.10
4.Closing balance 1113828.33 6090210.05 286519.26 2500841.44 9991399.08
IV.Book value — — — — —
1.Closing book value 677993795.54 458236849.80 7132111.55 66830078.47 1210192835.36
2.Opening book value 701122936.59 483701463.37 5871380.29 70526595.99 1261222376.24
16. Construction-in-progress
Item Closing book value Opening book value
Construction-in-progress 18185186.15 15669392.61
Total 18185186.15 15669392.61
(1) Construction-in-progress details
Closing balance Opening balance
Item Book
Provision Book Value Book balance Provision Book value
balance
Installation and
renovation of
machine tools 14398228.32 14398228.32 11030187.67 11030187.67
and mechanical
equipment
Software of
intelligent 3556795.41 3556795.41 4639204.94 4639204.94
manufacture
Buildings &
reconstruction 230162.42 230162.42
Total 18185186.15 18185186.15 15669392.61 15669392.61
(2) Change in the significant construction in progress
Decrease
Opening Closing
Name Increase Transfer to FA/ Other
balance balance
Intangible assets decrease
84Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Decrease
Opening Closing
Name Increase Transfer to FA/ Other
balance balance
Intangible assets decrease
Installation and
renovation of
machine tools and 19883984.10805702.49 15628331.54 663127.04 14398228.32
mechanical 41
equipment
Total 19883984.10805702.49 15628331.54 663127.04 14398228.32
41
(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
Installation and
renovation of
machine tools Self-16804182.27 85.68% 85.68% - - -
and mechanical financing
equipment
Total 16804182.27 — — — — — —
85Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
17. Right-of-use assets
Property/
Item Machinery
Transportation Electronic
equipment equipment Land use right Software Totalbuildings
I. Initial cost — — — — — —
1.Opening balance 4948117.80 708849.56 138314.79 802669.27 17862985.32 350368.74 24811305.48
2. Increase 87392.07 87392.07
(1) lease in 87392.07 87392.07
(2) business combination
3. Decrease 708849.56 708849.56
(1) Disposal
(2) transferred into FA 708849.56 708849.56
4.Closing balance 5035509.87 138314.79 802669.27 17862985.32 350368.74 24189847.99
II. Accumulated
amortization
1.Opening balance 3138925.92 179575.36 5532.55 334445.50 3024813.64 6802167.99 118875.02
2. Increase 969273.78 16835.19 33195.59 80266.92 535942.62 1673053.58 37539.48
(1) Accrued 969273.78 16835.19 33195.59 80266.92 535942.62 1673053.58 37539.48
(2) business combination
3. Decrease 196410.55 196410.55
(1) Disposal
(2) transferred into FA 196410.55 196410.55
4.Closing balance 4108199.70 38728.14 414712.42 3560756.26 156414.50 8278811.02
86Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Property/
Machinery Transportation ElectronicItem equipment equipment Land use right Software Totalbuildings
III. Impairment reserve — — — — — —
1. Opening balance - - - - - -
2. Increase - - - - - -
3. Decrease - - - - - -
4.Closing balance - - - - - -
IV. Book value — — — — — —
1. Closing book value 927310.17 99586.65 387956.85 14302229.06 193954.24 15911036.97
2. Opening book value 1809191.88 529274.20 132782.24 468223.77 14838171.68 231493.72 18009137.49
87Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
18. Intangible assets
Patent Non-Item Land use right Patent Others Total
I. Initial cost — — — — —
1.Opening balance 303943754.23 26921167.30 5773680.00 61910331.37 398548932.90
2. Increase 603427.54 4174721.49 4778149.03
(1) Purchase 311320.75 311320.75
(2) Transferred from
4466828.284466828.28
construction-in-progress
(3) increase via merge
3. Decrease 2949800.00 2949800.00
(1) Transfer to investment
2949800.002949800.00
real estate
4.Closing balance 300993954.23 27524594.84 5773680.00 66085052.86 400377281.93
II. Accumulated
—————
amortization
1.Opening balance 84162553.69 16638357.45 5773680.00 39954625.30 146529216.44
2. Increase 4525401.33 1454085.71 2720515.20 8700002.24
(1) Accrued 4525401.33 1454085.71 2720515.20 8700002.24
(2) Increase from merger
3. Decrease 111734.81 111734.81
(1) Transfer to investment
111734.81111734.81
real estate
4.Closing balance 88576220.21 18092443.16 5773680.00 42675140.50 155117483.87
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 212417734.02 9432151.68 23397931.19 245247816.89
2. Opening book value 219781200.54 10282809.85 21943724.90 252007735.29
88Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
19. Goodwill
(1) Original cost of goodwill
Increased 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. 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
89Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
asset of acquiree 1307657127.20Yuan and cost of combination on acquisition date.In 2022 the Company purchased 30% of the shareholdings of Sonyo Refrigeration System
(Dalian) Co. Ltd. from Panasonic Corporation of china Co. LTD and 25% shareholdings of Sonyo
Refrigeration System (Dalian) Co. Ltd from Panasonic Appliances cold Chain (Dalian)Co.Ltd. The
negotiated share transfer consideration of 81735060.00 Yuan. After the transaction Sonyo
Compressor (Dalian)Co. Ltd became a subsidiary. This transaction is a business combination not
under same control cost of combination is the FV of previous shareholdings on acquisition date plus
55% shareholdings acquisition consideration which is 111456900.00Yuan in total. Goodwill of
5671836.12 Yuan is recognized for the difference between the share of FV of net identifiable asset
of acquire 105785063.87Yuan and cost 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 (2.81%-7.05%)
discount rate(10.51%-12.64%) 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 ClosingIncrease Amortization
Balance Decrease balance
Greenland of new factory 1263830.02 446057.76 817772.26
Employee’s dormitory use right 1181300.40 69239.16 1112061.24
Membership fee for golf 341000.00 8250.00 332750.00
Renovation and rebuilding 1306463.02 678899.08 236639.94 1748722.16
Amortization of instruments 46194.67 17286.25 28908.42
Software maintenance fee 254951.67 58684.68 196266.99
Technology entrance fee of cold and
heat machinery 1642531.70 59699.50 197258.40 1504972.80
Total 6036271.48 738598.58 1033416.19 5741453.87
21. Deferred tax assets and deferred tax liabilities
90Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
(1) Deferred tax assets without offsetting
Closing balance Opening balance
Item Deductible Deferredtax Deductibletemporary
temporarydifference assets difference Deferredtaxassets
Provision for credit
impairment 497235687.66 88405153.91 482046079.42 85510657.91
Asset impairment provision 111214834.46 16806749.53 125545107.70 18940837.38
Depreciation of fixed assets 67744518.27 10161677.74 67744518.27 10161677.74
Unrealized income 15884175.46 3971043.86 15884175.46 3971043.86
Advance sales rebate 24531204.35 3679680.65 24531204.35 3679680.65
government grants 20001854.62 3000278.19 22104227.00 3315634.05
Unrealized profits from
internal transactions 13034503.47 1955175.52 13034503.47 1955175.52
Lease liability 11203019.79 1803414.42 8577510.50 1409588.02
Accrued expenses 6622174.17 993326.13 6622174.17 993326.13
Provisions 2300208.22 378141.28 2300208.22 378141.28
Safety production cost 1988616.80 298292.52 1988616.80 298292.52
Other 8809354.66 1321403.20 8809354.66 1321403.20
Total 780570151.93 132774336.95 779187680.02 131935458.26
(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 180537796.27 26903219.27 191185027.14 28677754.07
control
FA depreciation 36063279.93 5432111.76 36122663.18 5418399.49
Use right of asset 4361837.69 800728.70 7014886.01 1172551.35
Total 220962913.89 33136059.73 234322576.33 35268704.91
(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 6232840.46 126541496.49 6590950.84 125344507.42
Deferred tax liabilities 6232840.46 26903219.27 6590950.84 28734303.46
(4) Unrecognized deferred tax assets details
91Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Item Closing balance Opening balance
Deductible temporary difference 151888392.95 172621148.01
Deductible loss 568188633.71 558446860.19
Total 720077026.66 731068008.20
(5) Unrecognized deductible loss of deferred tax assets expired years
Year Closing balance Opening balance Notes
202653191704.76—
202754808491.4559632432.63—
202876743902.5445912286.80—
202944176121.0619343941.93—
20308961796.8945422360.64—
203158634944.4772081580.29—
203251128402.7920027310.15—
203333367800.85117597741.11—
2034197361964.229895002.62—
203543005209.44115342499.26—
Total 568188633.71 558446860.19 —
22. Other non-current asset
Closing Balance Opening balance
Category Carrying
Book value Provision Book value Provision Carrying amount
amount
Debt offset housing 19428587.00 1455755.51 17972831.49 19428587.00 1455755.51 17972831.49
Prepaid equipment
3985197.863985197.861067593.861067593.86
payment
Total 23413784.86 1455755.51 21958029.35 20496180.86 1455755.51 19040425.35
23. Assets with restricted ownership or use rights
Item At the period end
Book value Carrying amount Type Restriction
Guarantee
Monetary fund 38536737.16 38536737.16 Frozen
deposit/ frozen bank account
Notes receivable 850000.00 850000.00 Pledged Pledged
Financing of receivable 587572.14 587572.14 Pledged Pledged
FA 94117633.35 59480216.27 Pledged Pledged
Intangible asset 8266573.44 5008531.57 Pledged Pledged
Investment property 38955728.90 29889269.11 Pledged Pledged
92Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Total 181314244.99 134352326.25 — —
(continued)
Item At the beginning of the period
Book value Carrying amount Type Restriction
Guarantee
Monetary fund 59004453.72 59004453.72 Frozen deposit/ frozen
bank account
Notes receivable Pledged Pledged
Financing of receivable 2720000.00 2720000.00 Pledged Pledged
FA 89706820.32 56697340.72 Pledged Pledged
Intangible asset 8266573.44 5091198.31 Pledged Pledged
Investment property 38955728.90 30395181.55 Pledged Pledged
Total 198653576.38 153908174.30 — —
24. Short-term borrowing
(1) Category of short-term borrowing
Loan category Closing balance Opening balance
Credit loan 177191600.00 176711185.21
Factoring loan 22875802.82 19276014.68
Mortgage loan 2000000.00 3000000.00
Pledged loan 2597683.74 2849265.00
Total 204665086.56 201836464.89
25. Notes payable
Notes Category Closing balance Opening balance
Bank acceptance notes 638705442.61 665364289.18
Total 638705442.61 665364289.18
26. Accounts payable
Item Closing balance Opening balance
Material payments 1026656839.07 963708735.52
Project payments 679194091.37 659245594.97
Equipment payments 52429277.10 36132610.35
Others 6365626.04 5495223.24
Total 1764645833.58 1664582164.08
27. Other accounts payable
93Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Item Closing balance Opening balance
Interest payable - -
Dividend payable 42693781.35 533156.00
Other accounts payable 239760360.47 241567858.95
Total 282454141.82 242101014.95
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 189426283.69 176455533.29
Apply for reimbursement and
unpaid 14687008.76 17916678.89
Cash pledge and security deposit 15162526.30 15586100.96
Agency fees 2959421.97
Repair fees 268539.61 1684332.73
Receivables and payables 315650.70 737505.99
Trade mark and royalty 229728.24 162319.48
Others 19670623.17 26065965.64
Total 239760360.47 241567858.95
28. Contract liability
(1) Contract liability
Item Closing balance Opening balance
Received in advance due from unrealized revenue 477122097.44 525086822.72
Total 477122097.44 525086822.72
29. Employee’s payable
(1) Category of employee’s payable
Opening
Item Increase Decrease Closing balance
balance
Short-term employee’s
125045129.28303700425.89383994879.1644750676.01
payable
94Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Opening
Item Increase Decrease Closing balance
balance
Post-employment benefit
16880.3436496140.1736497872.6715147.84
–defined contribution plan
Termination benefits 115025.00 688062.75 803087.75
Total 125177034.62 340884628.81 421295839.58 44765823.85
(2) Short-term employee’s payables
Opening
Item Increase Decrease Closing balance
balance
Salaries bonus
113305752.31236227948.08307602260.6341931439.76
allowance and subsidy
Welfare 138867.90 10513446.47 10607906.87 44407.50
Social insurance 10435.11 22396329.05 22397427.64 9336.52
Include: Medical
10025.8920075783.1520076787.249021.80
insurance
On-duty injury
409.221795794.041795888.54314.72
insurance
Maternity insurance 484157.63 484157.63
Housing funds 944.76 26663049.62 26662977.62 1016.76
Labor union and training
3544367.445312804.766668354.452188817.75
expenses
Reward bonus and welfare
8044761.761263391.208732495.24575657.72
fund
Others 1323456.71 1323456.71
Total 125045129.28 303700425.89 383994879.16 44750676.01
(3) Defined contribution plan
Opening
Item Increase Decrease Closing balance
balance
Pension 16368.80 35365854.34 35367534.34 14688.80
Unemployment
511.541130285.831130338.33459.04
insurance
Total 16880.34 36496140.17 36497872.67 15147.84
30. Tax payable
Item Closing balance Opening balance
Enterprise income tax 4761877.27 9815321.28
95Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Value-added tax 9234677.72 3632033.88
Real estate tax 2895102.58 2987873.81
Land use tax 1652378.23 1343645.06
City maintenance and construction tax 902182.78 361550.05
Stamp duty 715429.83 775147.93
Education surcharge 601823.55 216192.20
Individual income tax 300096.18 577158.49
Environmental tax 42612.39 43893.87
Total 21106180.53 19752816.57
31. Non-current liabilities due within one year
Item Closing balance Opening balance
Long term loans due within one year 182250000.00 219320544.93
Long-term payable due within one year 11227411.77 14883189.60
Lease obligation due within one year 4089628.02 3243236.11
Total 197567039.79 237446970.64
32. Other current liabilities
Item Closing balance Opening balance
Notes payable endorsed not derecognized 107933791.39 145365603.31
Output Vat to be carried forward 38942677.07 39373636.22
Total 146876468.46 184739239.53
33. Long-term borrowing
(1) Category of long-term borrowing
Category Closing Balance Opening Balance
Pledged loan 272700000.00 333902223.70
Guarantee loan 31400000.00 34426021.48
Total 304100000.00 368328245.18
34. Lease obligation
Category Closing Balance Opening Balance
Lease payment 33229979.92 37530642.51
Less: unrecognized finance expense 16747057.23 17790446.86
Non-current liability due within 1 year 4089628.02 3177021.87
Total 12393294.67 16563173.78
35. Long term accounts payable
Item Closing Balance Opening Balance
Long term accounts payable 16350240.32 18845786.63
96Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Total 16350240.32 18845786.63
35.1Category by nature
Item Closing Balance Opening Balance
Financial lease borrowings 16350240.32 18845786.63
Total 16350240.32 18845786.63
36. Provision
Nature Closing Balance Opening Balance Reason
Warranty 1734500.48 2300208.22
Others 1301570.00
Total 3036070.48 2300208.22
37. Deferred income
Item Opening Balance Increase Decrease Closing Balance
Government subsidy 92793132.73 1296628.04 12499831.41 81589929.36
Total 92793132.73 1296628.04 12499831.41 81589929.36
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 48637227.88 733542.77 47903685.11
Total 717830641.15 733542.77 717097098.38
9740.Other comprehensive income
2026.1-6
Items OpeningBalance Amount for the Less：Previously recognized Less： After-tax After-tax attribute Closing Balance
period before in profit or loss into other income attribute to the to minority
income tax comprehensive income tax parent company shareholder
I.Later can’t reclassified into
profit and loss of other - - - - - - -
comprehensive income
II. Later reclassified into profit
and loss of other 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
98Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
41. Special reserve
Item Opening Balance Increase Decrease Closing Balance
Manufacturing
1988616.806638471.745580969.233046119.31
safety
Total 1988616.80 6638471.74 5580969.23 3046119.31
42.Surplus reserves
Item Opening Closing
Increase Decrease
Balance Balance
Statutory surplus reserve 393376564.76 393376564.76
Discretionary surplus reserve 529825770.25 24743592.75 554569363.00
Total 923202335.01 24743592.75 947945927.76
43.Undistributed profits
Item 2026-06-30 2025-06-30
Closing balance of last year 666260524.87 673966177.84
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 666260524.87 673966177.84
Add: net profit attributable to shareholders of
47142616.0762038793.70
parent company in the year
Less: Provision for statutory surplus reserves 12371796.37
Provision for any surplus reserves 24743592.75 15212024.95
Dividends payable for common shares 42160625.35 42160625.35
Others 686457.23
Closing balance of current year 645812465.61 666260524.87
99Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
44.Operating revenue and cost
(1) Details
Items 2026.01-06 2025.01-06
Sales revenue Cost of sales Sales revenue Cost of sales
Revenue from principle operation 2128242559.30 1805895464.58 2346491455.81 1978257633.93
Revenue from other operation 51427786.26 24425874.06 38783330.24 15281566.80
Total 2179670345.56 1830321338.64 2385274786.05 1993539200.73
(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
Manufacture products 1477019811.63 1199221339.15 86438248.81 78396238.37 1563458060.44 1277617577.52
Project installation 512279953.82 479070761.30 52504545.04 49207125.76 564784498.86 528277887.06
Other products and service 46411184.37 22216425.84 5016601.89 2209448.22 51427786.26 24425874.06
Classified by geography location
domestic 1756056551.09 1473766978.44 143959395.74 129812812.35 1900015946.83 1603579790.79
overseas 279654398.73 226741547.85 143959395.74 129812812.35 279654398.73 226741547.85
Timing of goods transferred
At a point 2035710949.82 1700508526.29 143959395.74 129812812.35 2179670345.56 1830321338.64
Over the time
Total 2035710949.82 1700508526.29 143959395.74 129812812.35 2179670345.56 1830321338.64
100Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
45.Taxes and surcharges
Items 2026.01-06 2025.01-06
Property tax 6082883.58 5414391.06
City construction tax 3062701.83 3905022.67
Education surcharge 2160059.19 2691045.12
Land use tax 3312866.73 2712679.52
Stamp duty 1382756.19 1337054.70
Vehicle and vessel tax 13684.08 24079.08
Others 56049.97 173444.22
Total 16071001.57 16257716.37
46. Administrative expenses
Items 2026.01-06 2025.01-06
Employee benefit 67141914.20 69120056.85
Official expense 14631844.27 16084202.44
Depreciation expense 9986789.59 12023632.08
Maintenance and repair expense 1560419.03 1589653.02
Long-term assets amortization 7885938.56 5381646.45
Travel expense 2562093.15 4386732.64
Design consultant and test service expense 10627779.77 3174657.30
Safety production cost 1586060.83 1994019.39
Business entertaining expense 1299449.35 1671259.39
Insurance expense 924475.78 967662.39
Advertisement expense 984424.94 168642.18
Transportation expense 900.00 4238.32
Patent trade mark use 218200.04 4696215.64
Other expense 2796056.22 2086054.84
Total 122206345.73 123348672.93
47.Selling expenses
Items 2026.01-06 2025.01-06
Employee benefit 64984403.22 68196742.22
Official business expense 8078131.96 8567397.72
Travel expense 6817788.21 8396214.18
Business entertaining expense 4774930.70 3835075.56
Advertisement and bids expense 3187197.22 4957078.21
Maintenance and repair expense 2852746.59 8364735.06
Depreciation expense 1057933.38 1107441.98
101Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Other expense 3093796.05 3334021.46
Total 94846927.33 106758706.39
48.Technology development expense
Items 2026.01-06 2025.01-06
Employee benefit 45913711.45 44006837.73
Raw material 9010232.35 5966648.85
Depreciation and amortization expense 7635126.23 7354601.96
Other expense 4788632.59 11838237.37
Total 67347702.62 69166325.91
49.Financial expenses
Items 2026.01-06 2025.01-06
Interest expenses 9944756.95 12504559.82
Less: interest income 2255910.41 3358417.93
Add: exchange loss 6617411.80 -4839403.93
Add: others expenditure 941656.51 1193383.56
Total 15247914.85 5500121.52
50.Other income
Items 2026.01-06 2025.01-06
Government subsidy 6943766.80 1812199.32
Input VAT accelerated deduction 5345742.59 6763433.99
Personal income tax handling fee refund 274897.00 215957.44
Land tax and property tax reduction and
150000.00
exemption
Total 12714406.39 8794590.75
51.Investment income
Items 2026.01-06 2025.01-06
Long-term equity investment gain under equity method 12042631.59 24534336.83
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
Gain from disposal of other no-current financial assets
Gain on debt restructuring 2573327.11 -1358198.53
Discounting fees for bank acceptance note -443559.74
Dividend received for other equity instrument held
102Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Total 14172398.96 23176138.30
52.Credit impairment loss (loss listed as “-”)
Items 2026.01-06 2025.01-06
Bad debt loss on notes receivable 459296.29 813434.62
Bad debt loss on receivable -3895966.49 -10807297.06
Bad debt loss on other receivable 11850.91 126546.39
Bad debt loss on long term receivable 38.32 -317.80
Impairment losses related to financial
-1301570.00
guarantees
Bad debt loss on long-term receivables due
-2164.15
within one year
Total -4728515.12 -9867633.85
53.Assets impairment losses (loss listed as “-”)
Items 2026.01-06 2025.01-06
Loss on impairment of inventory and cost to
-480187.83-1670601.42
fulfill the contract obligation
Loss of contract asset impairment -715477.85 -2002432.69
Total -1195665.68 -3673034.11
54.Gain on assets disposal (loss listed as “-”)
Item 2026.01-06 2025.01-06
Gain on non-current assets disposal -77707.59 -55842.88
Including: gain on non-current assets
-77707.59-55842.88
disposal not classified as held for sale
Including: gain on fixed assets disposal -77707.59 -55842.88
gain on intangible assets disposal
gain on early derecognition of use
right asset
Total -77707.59 -55842.88
55. Non-operating income
Amounts recognized into
Item 2026.01-06 2025.01-06 non-recurring profit or loss
for the period
Verified accounts payable 312122.61 1708642.64 312122.61
Transfer of advance receipts for contract 764464.00 1224522.13 764464.00
Fines compensation gains 1425093.60 2378322.71 1425093.60
103Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Claim loss reversal 115446.52 64190.50 115446.52
Gains from disposal of non current assets 23286.26 114569.27 23286.26
Other items 39723.05 65352.90 39723.05
Total 2680136.04 5555600.15 2680136.04
56.Non-operating expenses
Amounts recognized into
Item 2026.01-06 2025.01-06 non-recurring profit or
loss for the period
Non-current assets scrap loss 91702.63 422433.35 91702.63
Compensation 64777.10 306937.79 64777.10
Outward donation 100000.00 100000.00
Others
Total 580850.95 1650514.85 580850.95
57. Income tax expenses
(1) Income tax expenses
Items 2026.01-06 2025.01-06
Current income tax expenses 11278042.30 15216378.89
Deferred income tax expenses -3115102.72 -3773177.87
Total 8162939.58 11443201.02
(2) Adjustment process of accounting profit and income tax expense
Items Current year
Consolidated total profit this year 56613316.87
Income tax expenses at applicable tax rate 8491997.53
Effect on subsidiary applied to different tax rate 50453.09
Effect on prior period income tax adjustment 1864499.82
Effect on non-taxable income -888946.82
The impact of non deductible costs expenses and losses -265986.71
The impact of using previously unrecognized deferred tax assets on
deductible losses 115152.19
The impact of deductible temporary differences or deductible losses on
unrecognized deferred tax assets in this period 2007970.76
Deferred income tax assets recognized for temporary differences in the
previous period 716737.11
Additional deduction for R&D expenses -3928937.39
Income tax expense 8162939.58
58.Notes to cash flow statement
104Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
(1) Cash relevant to operating activities
1) Cash received relevant to operating activities
Items 2026.01-06 2025.01-06
Deposit returned 14211689.12 26813637.19
Financial funds 1637458.98 12248012.99
Lease premium received 12783959.98 4308103.91
Interest income 2476635.55 3483794.50
Receivable from the 3rd party 3506690.35 1369647.62
Compensation 61778.62 734747.32
Received travel expense refund 189453.65 783253.97
Others 6810918.02 2945842.40
Total 41678584.27 52687039.90
2) Cash paid relevant to operating activities
Items 2026.01-06 2025.01-06
Expenditure 83992489.15 91140894.61
Deposit paid 21891126.60 27778877.46
Accounts receivable and payable 1606936.34 1285840.71
Bank charges 777961.17 1103994.86
Account freeze 5398160.38 873417.33
Others 878910.54 1855413.62
Total 114545584.18 124038438.59
(2) Cash relevant to investing activities
1) Other cash received relevant to investing activities
Items 2026.01-06 2026.01-06
Fixed-term deposit 50000000.00 50000000.00
Total 50000000.00 50000000.00
2) Other cash paid relevant to investing activities
Items 2026.01-06 2025.01-06
Fixed-term deposit 60222000.00 50000000.00
Total 60222000.00 50000000.00
3) Significant cash paid relevant to investing activities
Items 2026.01-06 2025.01-06
Purchase and construct long-term assets 30623238.59 58438274.61
105Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Total 30623238.59 58438274.61
(3) Cash relevant to financing activities
1) Other cash received relevant to financing activities
Items 2026.01-06 2025.01-06
Notes payable to supplier 5559746.47 3943611.11
Sale leaseback and financial lease 2000000.00
Total 5559746.47 5943611.11
2) Others cash paid relevant to financing activities
Items 2026.01-06 2025.01-06
Sale& leaseback and financial lease 9163975.98 4096677.84
Payment factoring 3500.00 3246537.60
Lease premium payable 1862370.33 2230749.01
Supply chain bills 11842104.45
Total 11029846.31 21416068.90
106Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
59.Supplementary information of consolidated cash flow statement
(1) Information
Items 2026.01-06 2025.01-06
1.Adjusting net profit into cash flows of operating
————
activities:
Net profit 48450377.29 81540144.69
Add: Provision for impairment of assets 5924180.80 13551577.29
Depreciation of fixed assets Amortization of
62103897.8168106319.31
mineral resources and biological assets
Depreciation of right-of-use assets 1673053.58 3939345.17
Amortization of intangible assets 8700002.24 7851714.06
Amortization of long-term deferred expenses 1033416.19 889457.01
Losses on disposal of fixed assets intangible assets
77707.5955842.88and long-term assets (income listedwith”-”)
Losses on write-off of fixed assets (income listed
68416.37307864.08with”-”)
Change of fair value profit or lossFinancial expense (income listedwith”-”) 9944756.95 12504559.82Investment loss (income listedwith”-”) -14172398.96 -23176138.30
Decrease of deferred tax assets (increase listed
8342706.65-716444.20with”-”)
Increase of deferred tax liabilities (decrease listed
-11314230.52-2042066.61with”-”)Decrease of inventories (increase listedwith”-”) 55669182.40 164041830.93
Decrease of operating receivables (increase listed
-172835088.93-288449462.61with”-”)
Increase of operating payables (decrease listed
-101323155.56-39372848.35with”-”)
Others
Net cash flows arising from operating activities -97657176.10 -968304.83
2. Significant investment and financing activities
——
unrelated to cash income and expenses
Liabilities transferred to capital - -
Convertible bonds within 1 year - -
Financing leased fixed assets - -
3. Net increase (decrease) of cash and cash
——
equivalent
107Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Items 2026.01-06 2025.01-06
Closing balance of cash 472483006.05 779698019.84
Less: Opening balance of cash 722021877.01 952302550.26
Add: Closing balance of cash equivalent — —
Less: Opening balance of cash equivalent — —
Net increase of cash and cash equivalent -249538870.96 -172604530.42
(2) Cash and cash equivalents
Items 2026.01-06 2025.01-06
Cash 472483006.05 722021877.01
Including: Cash on hand 9678.51 11965.04
Bank deposit used for paying at any moment 472473327.54 722009911.97
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 472483006.05 722021877.01
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 2026.01-06 2025.01-06 Reasons
Fixed term deposit 110000000.00 50000000.00
Guarantee money for bank acceptance
note 8410882.68 13545500.81
Guarantee money for guarantee letter 19328431.64 7035512.05
Frozen 10578125.84 6650265.95
Rural workers’ salary account restriction 685722.16 3191024.44
Interest receivable 217708.30
Rural workers’ Guarantee money 219297.00 351057.41
Total 149222459.32 80991068.96 —
60.Change of shareholder’s equity
None
61.Monetary category of foreign currency
(1) Monetary category of foreign currency
108Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Closing Balance Exchange
Item Closing Balance (RMB)
(foreign currency) Rate
Cash — — —
Including：USD 2009214.31 6.8109 13684557.74
Euro 11078.73 7.7671 86049.60
JPY 439713013.00 0.042045 18487733.63
HK$ 431397.24 0.8699 375255.20
Accounts receivable — — —
Including: USD 8870519.68 6.8109 60416222.49
Euro 2287603.20 7.7671 17768042.81
GBP 140443.58 9.4346 1325029.00
JPY 66461232.16 0.042045 2794362.51
Accounts payable — — —
Including: USD 1567922.11 6.8109 10678960.70
JPY 59540181.30 0.042045 2503366.92
62.Lease
As a lessee
Items 2026.01-06 2025.01-06
Interest expense on lease liabilities 43360.69 836389.40
Short-term lease expense recognized in income statement 716486.26 839203.46
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 1393699.80 1729755.25
Cash inflow from sale and leaseback transactions - 765653.09
Cash outflow from sale and leaseback transactions - 4426991.15
As a lessor
Operating lease
Include: income related to variable lease
Items Lease income payments not included in lease payment
receivable
Office and plant 14171858.30 -
Total 14171858.30 -
VIII .Research and development expense
Items 2026.01-06 2025.01-06
Employee benefit 45913711.45 44006837.73
109Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Items 2026.01-06 2025.01-06
Raw material 9010232.35 5966648.85
Depreciation and amortization expense 7635126.23 7354601.96
Other expense 4788632.59 11838237.37
Total 67347702.62 69166325.91
Expensed R&D 67347702.62 69166325.91
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 Part Technology Co. Ltd.The scope of consolidation at the end of the reporting period decreased by one compared to the
beginning of the year which is Wuhan Lanning Energy Technology Co. Ltd.X. Interest in other entity
1.Equity of subsidiaries
(1) Organization structure of group company
Registered Main Registere Shareholding (%)Name of subsidiaries capital business Business nature Obtaining
10K address d 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
Air-conditioning Equipment 8254.00 Dalian Dalian Manufacturing 100 - Establish
Co. Ltd.Dalian Bingshan Guardian
5070.07 Dalian Dalian Manufacturing 100 - Establish
Automation Co. Ltd.Dalian
Bingshan-RYOSETSU
5757.87 Dalian Dalian Manufacturing 100 - Establish
Quick Freezing Equipment
Co. Ltd.Wuhan New World
20000.00 Wuhan Wuhan Manufacturing 100 - Acquisition
Refrigeration Industrial Co.
110Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Name of subsidiaries Registered Main Registere Business nature Shareholding (%) Obtaining
capital business d address method
Ltd.Wuhan New World
Air-conditioning
3500.00 Wuhan Wuhan Installation - 100 Establish
Refrigeration Engineering
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 75 25 Acquisition
(Dalian) Co. Ltd.
Sonyo Refrigeration
21208.47 Dalian Dalian Manufacturing 100 - Acquisition
(Dalian) Co. Ltd.
Dalian Bingshan Part
1000.00 Dalian Dalian Manufacturing - 100 Acquisition
Technology 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.
111Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
3.Equity in joint venture arrangement or associated enterprise
（1）The important affiliated companies
Shareholding (%)
Name of joint ventures or Mainbusiness Registered Business Accountingaffiliated companies 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 298973530.21 278789258.68
Non-current assets 42095631.56 40260431.18
Total assets 341069161.77 319049689.86
Current liabilities 72661176.36 53180522.14
Non-current liabilities
Total liabilities 72661176.36 53180522.14
Minority interests
Equity to the parent company 268407985.41 265869167.72
Share of net assets according to the shareholding
proportions 131519912.85 130275892.18
Adjusting events
—Goodwill 19269770.94 19269770.94
—Unrealized profits of insider trading
--Others
Book value of equity investment of affiliated
companies 150944936.06 149477458.42
112Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Closing Opening
balance/Current balance/Last
period period
Items
Dalian Bingshan Metal Technology
Co. Ltd.Fair value of equity investment with public offer
Operating income 228164148.83 223050763.81
Financial expense
Income tax expense
Net profit 24590935.13 27838652.85
Net profit of discontinuing operation
Other comprehensive income
Total comprehensive income 24590935.13 27838652.85
The current dividends received from joint
ventures
（3） Summary financial information of insignificant affiliated companies
Items 2026.01-06 2025.01-06
Affiliated company — —
Total book value of investment of affiliated
companies 343534286.55 353262648.48
The total of following items according to the
shareholding proportions — —
Net profit 2895438.89 32372063.31
Other comprehensive income 2895438.89 32372063.31
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
Items Opening
Into non-
Increase operatin Into other
The value Related to
Balance income offset cost
Closing
g income and expense Balance
asset/incom
e
113Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Deferred asset
income 80325538.53 5877138.76 3675769.92 70772629.85
Deferred asset/incom
income 11685913.91 948614.40 10737299.51 e
Deferred
income 781680.29 1296628.04 1216628.04 781680.29 80000.00 income
92793132.731296628.047093766.805406064.6181589929.36—
1. Recognized in income statement
Items 2026.01-06 2025.01-06
Other income 7093766.80 1812199.32
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 302026 the Company’s assets and liabilities dominated in foreign
currency are listed in RMB as following：
114Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Items June 30 2026 January 1 2026
Monetary fund-USD 13684557.74 10539621.43
Monetary fund-JPY 18487733.63 13409787.49
Monetary fund- EURO 86049.60 400386.29
Monetary fund- HKD 375255.20 336511.67
Receivable -USD 60416222.49 60641684.16
Receivable -GBP 1325029.00 1325029.00
Receivable -JPY 2794362.51 4945567.88
Receivable - EURO 17768042.81 5539903.08
Payables -USD 10678960.70 9830989.06
Payables -JPY 2503366.92 2478880.79
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 665541600.00 at fixed interest rate as of June
302026(borrowings of RMB 766921600.00 in December 31 2025).
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.
(2) 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
exposure.The group 's monetary fund was in bank with higher credit rating so there was no significant credit risk
115Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
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 2026 the top five customers of receivable accounts balance are 308105190.47 Yuan
representing 11.64% 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 June 30 2026 the credit limit still available is 982.34
million Yuan(765.66 million Yuan 2025) and short-term credit limit available is 982.34 million
Yuan(765.66 million Yuan 2025).As at June 30 2026 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 62170.55 62170.55
Notes receivable 26736.59 26736.59
Accounts receivable 182660.91 182660.91
Financing receivable 35936.19 35936.19
Other Receivable 3956.69 3956.69
Contract asset 18805.35 18805.35
Other current asset 2592.03 2592.03
116Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Other non-current financial 168.39 168.39
asset
Long-term receivable 38.61 82.92 121.53
Financial Liabilities
Short-term loan 20466.51 20466.51
Notes Payable 63870.54 63870.54
Accounts payable 176464.58 176464.58
Other payable 21988.40 21988.40
Employee’s payable 4476.58 4476.58
Tax payable 2110.62 2110.62
Non-current liability due 19756.70 19756.70
within 1 year
Long-term loan 15550.00 14910.00 30410.00
Lease obligation 362.76 876.57 1239.33
Long-term payable 1635.02 1635.02
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 257999105.00 Y
credit rating transferred
Bank acceptance bill with high All risk and reward have been
Discounting a bill 23033997.15 Y
credit rating transferred
Endorsement/discounti Bank/trade acceptance bill with Retain mostly risk and reward including
110531475.13 N
ng of a bill non-high credit rating default risk
All risk and reward have been
Factoring Receivable 7190000.00 Y
transferred
Total — 398754577.28 — —
(2) Derecognized financial asset due to transfer
117Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Derecognized Gain/loss from
Item Transfer method
Amount derecognition
Bank acceptance bill with
Endorsement of a bill 257999105.00
high credit rating
Bank acceptance bill with
Discounting a bill 23033997.15 -69838.86
high credit rating
Factoring without
Receivable 7190000.00 -219456.37
recourse
Total — 288223102.15 -289295.23
XIII. Related Parties Relationship and Transactions
i. Related parties’ relationship
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
Registered Business Registered Shareholding Voting power
Parent company
address nature capital（10K） percentage (%) percentage (%)
Dalian Bingshan
Dalian Manufacture 11108.00 20.27 20.27
Group Co. Ltd.Note: Dalian Bingshan Group Co. Ltd. is a Sino –foreign joint venture located No.106 Liaohe
East Road DDZ Dalian China. The legal representative of Dalian Bingshan Group Co. Ltd. is
Mr. Ji Zhijian and the registered capital is RMB158.58 million. The registered business
operation period is from 3rd July 1985 to 2nd July 2035. The business scope includes research
development manufacture sales service and installment of refrigeration equipment cooling
and freezing equipment different size of air-conditioners petrochemical equipment electronic
and electronic- control products home electronic appliance environment protect equipment and
etc. (unless the licenses needed)
The Company’s ultimate controller is Dalian Bingshan Group Co. Ltd.
118Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
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
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
Wuhan Sikafu Power Control Equipment Co. Ltd. Affiliated company of its subsidiary
PT BINGSHANMAKMUR INDONESTA Affiliated company of its subsidiary
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 significantinfluence by the same party
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 significantinfluence by the same party(Within the past 12 months)
LINDE HYDROGEN FUELTECH (DALIAN) CO. LTD. Both parties are under the control of or significantinfluence by the same party
119Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Name of related party Related party relationship
Linde Engineering (Dalian) Co. Ltd. Both parties are under the control of or significantinfluence by the same party
Dalian Shentong Electric Co. Ltd Both parties are under the control of or significantinfluence by the same party
Dalian Fuji Bingshan Control System Co. Ltd. Both parties are under the control of or significantinfluence by the same party
BAC Dalian Co. Ltd. Both parties are under the control of or significantinfluence by the same party
Dalian Bingshan Wisdom Park Co. Ltd. The Company director serves as a director of thatcompany
Dalian Binggu Hotel Management Co. Ltd. The Company director serves as a director of that
company
Dalian Xiangu Intelligent Technology Co. Ltd. The Company director serves as a director of that
company
Alphavita Bio-scientific (Dalian) Co. Ltd. The Company director serves as a director of thatcompany
Bingshan Technology Service （Dalian） Co. Ltd. Under control of the same ultimate controlling party
Sonyo Cold Chain (Dalian) Co. Ltd. The Company director serves as a director of thatcompany
Sonyo Cold Chain (Dalian) Equipment (Wuhan) Co. LTD The Company director serves as a director of thatcompany
Dalian Kangyang Industry Group Co. LTD The Company director serves as a director of thatcompany
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. PanasonicElectric Equipment (China）Co.Ltd. Panasonic Appliances Air-Conditioning and Refrigeration
Corporation Panasonic Home Appliances (China) Co.Ltd. Panasonic
Procurement(CHINA)Co.Ltd. Panasonic Industry (China) Co. Ltd. Panasonic Home
Appliances(Hangzhou)Co.Ltd. Singapore Panasonic Cold Chain Asia Panasonic Sales Taiwan
Co Ltd..Panasonic Appliances Air-Conditioning Malaysia Sdn.Bhd.、Panasonic Cold Chain Poland Sp. Z
O.O. 、 Panasonic Connect Co.Ltd.Media Entertainment Business Division 、 Panasonic
Corporation、 Panasonic Corporation Appliances Company Heating＆Cooling Solutions Bd
Commercial Air-Conditionin 、 Panasonic Corporation Appliances Company 、 Panasonic
Corporation Heating & Ventilation A/C Company Heating And Cooling Devices Business
Division、Panasonic Corporation Heating & Ventilation Ac Company Commercial Equipment
Solutions Business Division、Panasonic Do Brasil Limitada Miami Branch、Panasonic Heating
And Ventilation Air-Conditioning CzechS.R.O.、Panasonic Hong Kong Co.Ltd.、Panasonic
120Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
India 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 2026.01-06 2025.01-06
BAC Dalian Co. Ltd. Purchases of goods 4879054.03 12891976.50
Bingshan Technology Service （Dalian） Co. Ltd. Purchases of goods 4178879.64 9238810.28
Sonyo Cold Chain (Dalian)Co. Ltd Purchases of goods 59222021.14 41445471.06
Alphavita Bio-scientific (Dalian) Co. Ltd. Purchases of goods 186856.60 93428.30
Dalian Honjo Chemical Co. Ltd Purchases of goods 11409168.93 1392076.63
Dalian Bingshan Group Huahuida Financial Leasing Co. Ltd Purchases of goods 81392.27 7208.11
Dalian Bingshan Metal Technology Co. Ltd. Purchases of goods 26299959.10 28338772.07
Dalian Fuji Bingshan Control System Co. Ltd. Purchases of goods 1158277.88 1999595.78
Dalian Fuji Bingshan Vending Machine Co. Ltd Purchases of goods 1305.15 18241.71
Dalian Fuji Bingshan Vending Machine Sales Co. Ltd Purchases of goods 19469.03
Dalian Jingxue Insulation Technology Co. Ltd. Purchases of goods 188197.35 1999595.78
Dalian Shentong Electric Co. Ltd. Purchases of goods 2851649.36 4010542.09
Jiangsu Jingxue Insulation Technology Co. Ltd. Purchases of goods 1160344.94 7600991.19
Shanghai Jingxue Insulation Technology Co. Ltd. Purchases of goods 870030.99
Company under direct/indirect Control of Panasonic Co. Ltd Purchases of goods 10139961.55 21681272.45
Dalian Spindle Environmental Facilities Co. Ltd Purchases of goods 1830566.22 4180530.98
Dalian Bingshan Wisdom Park Co. Ltd Receive laborservices 898329.32 1135740.74
Dalian Bingshan Group Co. Ltd. Receive laborservices 65696.01 21681272.45
Dalian Binggu Hotel Management Co. Ltd. Receive laborservices 1188.12 4180530.98
(2) Sales of goods/ labour services provision
Related party Content 2026.01-06 2025.01-06
Company under direct/indirect Control of Panasonic Co. Ltd Sales of goods 137983652.70 163578247.40
Sonyo Cold Chain (Dalian) Co. Ltd Sales of goods 81293578.23 68651671.06
BAC Dalian Co. Ltd Sales of goods 89089916.14 61674033.25
Bingshan Technology Service （Dalian） Co. Ltd. Sales of goods 9141932.95 8423665.24
Dalian Fuji Bingshan Vending Machine Co. Ltd Sales of goods 1514999.69 3221321.30
Dalian Bingshan Wisdom Park Co. Ltd Sales of goods 304214.17 383661.03
MHI Bingshan Refrigeration (Dalian) Co. Ltd. Sales of goods 3078477.58 4776622.01
121Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Related party Content 2026.01-06 2025.01-06
Alphavita Bio-scientific (Dalian) Co. Ltd. Sales of goods 761706.90 1615598.37
Dalian Honjo Chemical Co. Ltd Sales of goods 2862249.94 2173330.51
Dalian Fuji Bingshan Control System Co. Ltd. Sales of goods 1929667.17
Dalian Bingshan Metal Technology Co. Ltd. Sales of goods 1098503.06 296199.40
Dalian Shentong Electric Co. Ltd Sales of goods 108600.87 249203.55
Dalian Jingxue Freezing Equipment Co. Ltd Sales of goods 51556.08 0.00
Dalian Bingshan Group Huahuida Financial Leasing Co. Ltd Sales of goods 2991150.45
Wuhan Sikafu Power Control Equipment Co. Ltd. Sales of goods 25957.36 70027.60
Sonyo Cold Chain (Dalian) Equipment (Wuhan) Co. Ltd. Sales of goods 3540225.50 1517802.35
Linde Engineering (Dalian) Co. Ltd. Sales of goods 8321.10
Dalian Bingshan Group Co. Ltd. Sales of goods 84905.66 0.00
Dalian Spindle Environmental Facilities Co. Ltd Sales of goods 131801.94 436300.59
Supply labor
Dalian Fuji Bingshan Control System Co. Ltd. 249213.96services
Supply labor
Dalian Bingshan Group Co. Ltd. 8606.62 4391.14services
Supply labor
Dalian Shentong Electric Co. Ltd 2644.50 7002.84services
(3) Assets Lease
Assets rent out
Current
Category of Last period LeaseLessee assets rent out period Lease Income
Income
Dalian Bingshan Wisdom Park Co. Ltd Land/property 6140264.35 4506673.78
MHI Bingshan Refrigeration (Dalian) Co. Ltd. Plant 1913862.82 1904761.90
Sonyo Cold Chain (Dalian) Equipment (Wuhan) Co. Plant /Employee
Ltd. 4461437.08 1281079.83dormitory
Office/ Plant
Company under direct/indirect Control of Panasonic
Co. Ltd /Employee 387405.72 381668.58
dormitory
Dalian Jingxue Freezing Equipment Co. Ltd Plant and office 326408.92 381454.77
Wuhan Sikafu Power Control Equipment Co. Ltd Plant 360522.94 496132.49
Bingshan Technology Service （Dalian） Co. Ltd. Plant and office 163289.51 147436.30
Dalian Xiangu Intelligent Technology Co. Ltd. Equipment 272787.61
Dalian Spindle Environmental Facilities Co. Ltd. Office 880.72
Assets under lease
122Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Category of assets Lease premium paid
Lessor
rent in 2026.01-06 2025.01-06
Dalian Bingshan Group Huahuida Financial
Leasing Co. Ltd Fixed asset 3113463.00 3446272.00
Sonyo Cold Chain (Dalian)Co. Ltd Plant 1700966.97
(Continued)
Interests on lease liabilities Increased right-of-use assets
Lessor
2026.01-062025.01-062026.01-062025.01-06
Dalian Bingshan Group Huahuida
Financial Leasing Co. Ltd 719720.24 793607.86 13053097.33
Sonyo Cold Chain (Dalian)Co. Ltd 157060.35
Funds borrow from /lent to related party
Name of the related party Amount Starting date Ending date Explanation
Funds in
Dalian Bingshan Group Huahuida Financial Leasing 14750000.0 Sale and
Co.Ltd 2025.1.21 2030.1.200 leaseback
Dalian Bingshan Group Huahuida Financial Leasing 13805309.7 Sale and
Co.Ltd 2021.11.10 2026.11.93 leaseback
Dalian Bingshan Group Huahuida Financial Leasing Sale and
Co.Ltd 4000000.00 2025.9.29 2027.9.28 leaseback
Dalian Bingshan Group Huahuida Financial Leasing Sale and
Co.Ltd 2000000.00 2025.10.9 2027.10.8 leaseback
Dalian Bingshan Group Huahuida Financial Leasing Sale and
Co.Ltd 1000000.00 2025.3.14 2028.3.13 leaseback
Dalian Bingshan Group Huahuida Financial Leasing Sale and
Co.Ltd 1000000.00 2025.4.29 2028.4.28 leaseback
Dalian Bingshan Group Huahuida Financial Leasing Sale and
Co.Ltd 8600000.00 2024.7.26 2026.7.25 leaseback
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 5000000.00 2025.7.23 2026.7.22 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 1801481.40 2025.8.13 2026.8.12 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 830733.36 2025.8.22 2026.8.21 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 1200000.00 2024.8.26 2026.8.25 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 1500000.00 2025.9.25 2026.9.24 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 2500000.00 2025.10.9 2026.10.8 Factoring
Dalian Bingshan Group Huayida Commercial 1800000.00 2024.10.31 2026.10.30 Factoring
123Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Factoring Co. Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 926252.20 2025.11.19 2026.11.18 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 6000000.00 2025.1.15 2027.1.14 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 2000000.00 2025.5.21 2027.5.20 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 975000.00 2025.6.23 2028.6.22 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 3000000.00 2026.2.12 2027.2.1 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 6000000.00 2026.3.25 2027.3.25 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 2000000.00 2026.3.31 2027.3.25 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 2000000.00 2026.4.1 2027.4.20 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 2000000.00 2026.4.9 2027.4.20 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 3500000.00 2026.4.23 2027.4.25 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 4000000.00 2026.4.24 2027.4.20 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 1362600.00 2026.5.26 2026.9.30 Factoring
Dalian Bingshan Group Huayida Commercial
Factoring Co. Ltd 3000000.00 2026.6.25 2026.9.24 Factoring
iii. Balances with Related party
1.Accounts receivable due from related parties
Closing Balance
Item Related party
Book Balance Bad debt Provision
Accounts receivable Sonyo Cold Chain (Dalian)Co. Ltd. 75178026.79 4245678.65
Accounts receivable BAC Dalian Co. Ltd 47633756.22 3343889.68
Accounts receivable Company under direct/indirect Control of
Panasonic Co. Ltd. 28979825.68 611717.96
Accounts receivable Bingshan Technology Service（Dalian）Co. Ltd. 16129190.14 1340826.01
Accounts receivable Sonyo Cold Chain Equipment (Wuhan) Co. Ltd. 11364602.43 797795.09
Accounts receivable Dalian Bingshan Wisdom Park Co. Ltd. 13459491.87 2599142.73
Accounts receivable Dalian Fuji Bingshan Vending Machine Co. Ltd. 2265667.82 159049.88
Accounts receivable Alphavita Bio-scientific (Dalian) Co. Ltd. 1987379.63 150572.06
Accounts receivable Linde Hydrogen Fueltech (Dalian) Co. Ltd. 1539244.44 136865.17
Accounts receivable MHI Bingshan Refrigeration (Dalian) Co. Ltd. 2902070.24 215035.08
Accounts receivable Dalian Health and Wellness Industry Group Co.Ltd 984924.15 303652.12
Accounts receivable PT BINGSHAN MAKMUR INDONESTA 704650.00 85040.66
124Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Accounts receivable Dalian Bingshan Group Huahuida Financial
Leasing Co. Ltd. 432562.50 72410.96
Accounts receivable Linde Engineering (Dalian) Co. Ltd. 22144.33 3706.96
Accounts receivable Dalian Shentong Electric Co. Ltd 16118.00 927.69
Contract asset Bingshan Technology Service（Dalian）Co. Ltd. 598400.65 19262.80
Contract asset Sonyo Cold Chain (Dalian)Co. Ltd. 6200.00 435.24
Other receivable Bingshan Technology Service（Dalian）Co. Ltd. 417280.00 15272.45
Other receivable Wuhan Sikafu Power Control Equipment Co.Ltd. 10535.84 385.61
Other receivable Dalian Bingshan Group Huayida CommercialFactoring Co. Ltd. 23573.33 862.78
Prepayment Dalian Shentong Electric Co. Ltd 5506668.65
Prepayment BAC Dalian Co. Ltd 474.60
Prepayment Shanghai Jingxue Insulation Technology Co. Ltd. 54431.10
Prepayment Company under direct/indirect Control of
Panasonic Co. Ltd. 166529.92
Prepayment Jiangsu Jingxue Insulation Technology Co. Ltd. 13610.00
Prepayment Dalian Fuji Bingshan Control System Co. Ltd. 113072.02
Prepayment Sonyo Cold Chain (Dalian)Co. Ltd. 399893.11
Prepayment Dalian Bingshan Group Huahuida Financial
Leasing Co. Ltd. 2408.46
(Continued)
Opening Balance
Item Related party
Book Balance Bad debt Provision
Accounts receivable Sonyo Cold Chain (Dalian)Co. Ltd. 82215721.94 5771543.68
Accounts receivable BAC Dalian Co. Ltd 32884151.56 2308467.44
Accounts receivable Company under direct/indirect Control of
Panasonic Co. Ltd. 24865710.98 714583.39
Accounts receivable Bingshan Technology Service （Dalian） Co. 15980737.70 1284841.10
Ltd.Accounts receivable Sonyo Cold Chain Equipment (Wuhan) Co.Ltd. 6843953.97 482102.58
Accounts receivable Dalian Bingshan Wisdom Park Co. Ltd 6779040.11 2315259.55
Accounts receivable Dalian Fuji Bingshan Vending Machine Co.Ltd 4694192.49 329532.31
Accounts receivable Alphavita Bio-scientific (Dalian) Co. Ltd. 2894365.08 232267.21
Accounts receivable Linde Hydrogen Fueltech (Dalian) Co. Ltd 1539244.44 136865.17
Accounts receivable MHI Bingshan Refrigeration (Dalian) Co. Ltd. 1381095.17 101569.87
Accounts receivable Dalian Health and Wellness Industry Group
Co. Ltd 1295691.15 216898.70
Accounts receivable PT BINGSHAN MAKMUR INDONESTA 451337.50 31683.89
Accounts receivable Dalian Bingshan Group Huahuida Financial
Leasing Co. Ltd. 432562.50 30365.89
Accounts receivable Linde Engineering (Dalian) Co. LTD 22144.33 3706.96
125Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Accounts receivable Dalian Shentong Electric Co. Ltd 2202.00 154.58
Contract asset Bingshan Technology Service （Dalian） Co. 598400.65 19262.80Ltd.Contract asset Sonyo Cold Chain (Dalian)Co. Ltd. 6200.00 435.24
Other receivable Bingshan Technology Service （Dalian） Co. 400000.00 14640.00Ltd.Other receivable Wuhan Skaff Power Control Equipment Co.Ltd. 12748.03 466.58
Other receivable Dalian Bingshan Group Huayida CommercialFactoring Co. Ltd.Prepayment Dalian Shentong Electric Co. Ltd 6639791.89
Prepayment BAC Dalian Co. Ltd 385423.52
Prepayment Shanghai Jingxue Insulation Technology Co.Ltd. 383059.40
Prepayment Company under direct/indirect Control of
Panasonic Co. Ltd. 336456.94
Prepayment Jiangsu Jingxue Insulation Technology Co.Ltd. 125062.72
Prepayment Dalian Fuji Bingshan Control System Co. Ltd. 113072.02
Prepayment Sonyo Cold Chain (Dalian)Co. Ltd. 58800.00
Prepayment Dalian Bingshan Group Huahuida Financial
Leasing Co. Ltd. 221.70
2.Accounts Payable due from Related Party
Closing Opening
Item Related party
Balance Balance
Accounts Payable Jiangsu Jingxue Insulation Technology Co.Ltd 22675429.27 34252465.26
Accounts Payable Sonyo Cold Chain (Dalian)Co. Ltd. 59140071.88 33900564.23
Accounts Payable Bingshan Technology Service （Dalian） Co. Ltd. 6515036.53 14357617.55
Accounts Payable Dalian Bingshan Metal Technology Co. Ltd 12094904.38 12076246.08
Accounts Payable BAC Dalian Co. Ltd 2643868.78 10433242.08
Accounts Payable Dalian Honjo Chemical Co. Ltd. 9571044.77 3006167.36
Accounts Payable Dalian Shentong Electric Co. Ltd 1965060.47 1410292.94
Accounts Payable Company under direct/indirect Control of PanasonicCo. Ltd 2537325.19 1322559.18
Accounts Payable Jiangsu Jingxue Insulation Environmental EngineeringCo. Ltd 1017525.00
Accounts Payable Dalian Bingshan Part Technology Co. Ltd. 1309278.51
Accounts Payable Dalian Fuji Bingshan Control System Co. Ltd. 528991.64 528991.64
Accounts Payable Dalian Fuji Bingshan Vending Machine Co. Ltd 24819.94 23514.79
Other payable Dalian State-owned Assets Investment and ManagementGroup Co. Ltd. 239013.54 3639632.23
Other payable Dalian Fuji Bingshan Control System Co. Ltd. 1296055.00 1340000.00
Other payable Company under direct/indirect Control of PanasonicCo. Ltd 229728.24 1015476.74
Other payable Dalian Jingxue Freezing Equipment Co. Ltd. 70000.00 70000.00
Other payable Wuhan Sikafu Power Control Equipment Co. Ltd 65495.00 65495.00
Other payable Sanyo Corporation 19249.06
126Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Other payable Dalian Bingshan Group Huayida Commercial FactoringCo. Ltd. 31885.32
Long-term Dalian Bingshan Group Huahuida Financial Leasing
payable Co. Ltd 1155972.91 18175681.99
Long-term Dalian Bingshan Group Huayida Commercial Factoring
payable Co. Ltd. 670104.64
Non-current
liability due Dalian Bingshan Group Huahuida Financial LeasingCo. Ltd 7155176.23 6388277.92within 1 year
Non-current
liability due Dalian Bingshan Group Huayida Commercial FactoringCo. Ltd. 4341155.78 6103062.21within 1 year
Short-term Dalian Bingshan Group Huayida Commercial Factoring
borrowing Co. Ltd. 22875802.82 11383996.49
Contract liability Dalian Honjo Chemical Co. Ltd. 266308.00
Contract liability Sonyo Cold Chain (Dalian) Co. Ltd. 190455.04
Company under direct/indirect Control of Panasonic
Contract liability 42.54 14845.32
Co. Ltd.Contract liability PT BINGSHAN MAKMUR INDONESTA 7200940.00
Other current
liability Sonyo Cold Chain (Dalian)Co. Ltd. 24759.15
Accounts Payable Dalian Jingxue Insulation Technology Co. Ltd. 32310.00
Other payable Dalian Bingshan Wisdom Park Co. Ltd 3559.80
Other payable Jiangsu Jingxue Insulation Technology Co. Ltd. 10091410.31
iv. Related Party Commitment
None
v. Others
None
XIV. Share-Based Payment
None
XV. Contingency & commitment
1. Commitment
None
2. Contingency
Up to June 30 2026 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
127Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
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
2026 the balance of the guarantee obligation of the financial lease is RMB 1.2072 million
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-
RYOSETSU as a seller singed finance lease contract with Huahuida as both a buyer and a
lessor and Jinlin Fuyu as a lessee. The contract price is 20.50million Yuan. In case the lease
premium is delayed by the lessee Bingshan- RYOSETSU needs to pay lease premium on
behalf of the lessee and be obliged to the buy back responsibility. Due to operational issues
with Jilin Fuyu repayment has been delayed. Bingshan- RYOSETSU received a "Notice of
Advance Payment Performance for Jilin Fuyu Project" from Huahuida on July 30 2026
requiring it to fulfill its guarantee responsibilities. Bingshan- RYOSETSU will advance
monthly rent starting from August 2026 with a total advance payment of 9.1385 million
yuan. In view of the above situation Bingshan- RYOSETSU has provisioned an estimated
liability of 1.3016 million yuan in its 2026 semi-annual financial statements.Until June 30 2026 the balance of all guarantee obligation of the financial lease is RMB
10.3457 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 2026.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.
128Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
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: Northeast China and Central China. The Northeast is the Company’s general headquarters
and the subsidiaries registered in Dalian. The Central includes Chengdu Bingshan Refrigeration
Engineering Co. Ltd Wuhan New World Refrigeration Industrial Co. Ltd and its subsidiary
Wuhan NewWorld 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
1Operating income 2289995778.22 147006355.80 -257331788.46 2179670345.56
129Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Items Northeast China Central China Offset Total
2Cost 1955900255.24 131487132.05 -257066048.65 1830321338.64
Impairment loss on assets 68305329.65 4209163.46 72514493.11
Impairment loss on credit -1277599.51 -124148.67 206082.50 -1195665.68
Depreciation and amortization -5284904.35 1981336.05 -1424946.82 -4728515.12
Investment income from associates
and joint venture 12733981.46 1671353.48 -2362703.35 12042631.59
Operating profits(loss) 72490558.56 -3194830.98 -12682410.71 56613316.87
Income tax 8719535.32 12360.29 -568956.03 8162939.58
Net profit(loss) 63771023.24 -3207191.27 -12113454.68 48450377.29
Total assets 9848438359.88 485237784.49 -2891975754.73 7441700389.64
Total liabilities 4490548653.99 414616698.10 -682884483.35 4222280868.74
(3) Others
None
7. Other important transactions and matters affect the investor's decision
The group hasn’t had other important transactions and matters affect the investor's decision in
this period.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 396283498.87 329107924.75
1-2 years 117603771.03 96447719.64
2-3 years 54841024.37 44816338.73
Over 3 years 186990814.79 193088054.03
3-4 years 22870349.83 47569524.37
4-5 years 69890063.76 24935003.49
Over 5 years 94230401.20 120583526.17
Total 755719109.06 663460037.15
(2) Accounts receivable category
130Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Closing Balance
Item Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision on group 755719109.06 100.00% 201711225.19 26.69% 554007883.87
(1) Accounting age as
characters 490188321.50 64.86% 201711225.19 41.15% 288477096.31
(2) Related party within
consolidation scope 265530787.56 35.14% 0.00 0.00% 265530787.56
Total 755719109.06 100.00% 201711225.19 26.69% 554007883.87
(Continued)
Opening Balance
Item Booking balance Provision Booking
Amount % Amount % balance
Bad debt provision on group 663460037.15 100.00% 200127593.93 30.16% 463332443.22
(1) Accounting age as
characters 450095572.09 67.84% 200127593.93 44.46% 249967978.16
(2) Related party within
consolidation scope 213364465.06 32.16% 0.00% 213364465.06
Total 663460037.15 100.00% 200127593.93 30.16% 463332443.22
(3) Bad debt provision
Change during the year
Closing
Category Opening balance Accrued Collected/
Written-off Other Balance
reversed
Bad debt
200127593.931583631.26201711225.19
provision
Total 200127593.93 1583631.26 201711225.19
2. Other Receivables
Item Closing Balance Opening Balance
Interest receivable - -
Dividend receivable 10542431.14 160000000.00
Other receivable 31116573.00 31936403.02
Total 41659004.14 191936403.02
2.1 Dividend receivable
Item Closing Balance Opening Balance
131Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Sonyo Refrigeration System (Dalian)Co. Ltd. 9950103.85
Dalian Bingshan Group Huahuida Financial Leasing Co. Ltd 592327.29
Sonyo Compressor (Dalian)Co. Ltd. 160000000.00
Total 10542431.14 160000000.00
2.2 Other receivable
(1) The category of other receivables
Items Closing Balance Opening Balance
Receivables and payables 21935014.23 21672864.74
Petty cash 8766312.16 10098294.00
Deposits 1128186.89 802756.27
Others 177051.00 283625.00
Total 32006564.28 32857540.01
(2) Other receivable listed by account aging
Aging Closing Balance Opening Balance
Within 1 year 3087641.25 6364219.32
1-2 years 3223483.68 2169795.06
2-3 years 1505759.72 906004.63
Over 3 years 24189679.63 23417521.00
3-4 years 906004.63 1755617.00
4-5 years 1621771.00 50000.00
Over 5 years 21661904.00 21611904.00
Total 32006564.28 32857540.01
(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 32006564.28 100.00% 889991.28 2.78% 31116573.00
(1) Accounting age
as characters 12006564.28 37.51% 889991.28 7.41% 11116573.00
(2) Related party
within 20000000.00 62.49% 20000000.00
consolidation
132Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
scope
Total 32006564.28 100.00% 889991.28 2.78% 31116573.00
(continued)
Opening Balance
Item Booking balance Provision Booking value
Amount % Amount %
Bad debt provision on
individual - - - - -
Bad debt provision on
group 32857540.01 100.00% 921136.99 2.80% 31936403.02
(3) Accounting age as
characters 12857540.01 39.13% 921136.99 7.16% 11936403.02
(4) Related party
within 20000000.00 60.87% 20000000.00
consolidation scope
Total 32857540.01 100.00% 921136.99 2.80% 31936403.02
1) Bad debt provisions on group basis
Closing Balance
Aging Provision for bad Drawing Proportion
Accounts receivable
debts (%)
Within 1 year 3087641.25 113781.67 3.69%
1-2 years 3223483.68 117205.51 3.64%
2-3 years 1505759.72 173509.80 11.52%
3-4 years 906004.63 33994.68 3.75%
4-5 years 1621771.00 59356.82 3.66%
Over 5 years 1661904.00 392142.80 23.60%
Total 12006564.28 889991.28
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 422418.52 498718.47 921136.99
Opening balance
————
during the year
133Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
--transfer to the
2nd stage
--transfer to the
3rd stage
--reverse to the
2nd stage
----reverse to the
1st stage
Accrued -31145.71 -31145.71
Reverse
Cancelation
Written off
Other movement
Closing balance 391272.81 498718.47 889991.28
(4) Bad debt provision details
Change during the year
Opening Closing
Category Accrued Collected/
balance Written-off Others Balance
reversed
Bad debt
921136.99-31145.71889991.28
provision
Total 921136.99 -31145.71 889991.28
(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 62.49%
No.2 Other deposit 1100000.00 Over5 years 3.44% 40260.00
No.3 Bid deposit 800000.00 4-5 years 2.50% 29280.00
No.4 Bid deposit 800000.00 3-4 years 2.50% 29280.00
No.5 Bid deposit 800000.00 1-2 years 2.50% 29280.00
Total — 23500000.00 — 73.43% 128100.00
134Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
3. 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 2425108433.14 2425108433.14 2422108433.14 2422108433.14
Investment of affiliates
482202819.94482202819.94472535194.66472535194.66
and JV
Total 2907311253.08 2907311253.08 2894643627.80 2894643627.80
(2) Investments of subsidiaries
Provision 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
Dalian Bingshan Group Engineering
Co. Ltd 293749675.77 293749675.77
Dalian Bingshan Air-Conditioning
Equipment Co. Ltd 75272185.00 75272185.00
Dalian Bingshan Guardian
Automation Co. Ltd 54638361.52 3000000.00 57638361.52
Dalian Bingshan-RYOSETSU Quick
Freezing Equipment Co. Ltd 59356051.19 59356051.19
Dalian Universe Thermal Technology
Co. Ltd 48287589.78 48287589.78
Wuhan NewWorld Refrigeration
Industrial Co. Ltd 184674910.81 184674910.81
135Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Provision 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
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 2422108433.14 3000000.00 2425108433.14
(3) Joint ventures& affiliated companies
Increase/Decrease
Adjustme Provision
Provision for Gains and losses nt of for
Investee Beginningbalance impairment Increased Decreased recognized under other Changes of
Cash bonus or Provision Ending balance impairme
at beginning the equity comprehe other equity profits for Others nt
of year method nsive announced impairment at year
income end
1. Affiliated company
Dalian Honjo
Chemical Co. Ltd 8856645.93 202516.73 9059162.66
Keinin-Grand Ocean
Thermal Technology 49614057.86 -1538958.16 48075099.70
(Dalian) Co. Ltd
Dalian Fuji Bingshan
Vending Machine Co. 67119564.34 -596912.66 66522651.68
Ltd
MHI Bingshan
Refrigeration (Dalian) 17053051.54 -1456899.31 15596152.23
Co. Ltd.Dalian Fuji Bingshan
Vending Machine
136Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
Increase/Decrease
Adjustme Provision
Provision for Gains and losses nt of for
Investee Beginningbalance impairment Increased Decreased recognized under other Changes of
Cash bonus or Provision
profits for Others Ending balance
impairme
at beginning the equity comprehe other equity nt
of year method nsive announced impairment at year
income end
Sales Co. Ltd
Jiangsu Jingxue
Insulation Technology 143558044.80 *.** *.**
Co. Ltd
Bingshan Metal
Technical Service 138895377.85 12049558.21 150944936.06
（Dalian） Co. Ltd.
Dalian Bingshan
Group Huahuida
Financial Leasing 47438452.34 *.** 592327.29 *.**
Co. Ltd
Total 472535194.66 10259952.57 592327.29 482202819.94
472535194.6610259952.57592327.29482202819.94
137Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
4. Operating revenue and cost
2026.01-062025.01-06
Item
Revenue Cost Revenue Cost
Revenue from main
322302088.59277870383.74427380027.99373168293.00
operation
Revenue from other
24259233.2814155671.7516090642.169515808.95
operation
Total 346561321.87 292026055.49 443470670.15 382684101.95
5. Investment income
Items 2026.01-06 2025.01-06
Long-term equity investment gain under cost method 9950103.85
Long-term equity investment gain under equity method 10259952.57 22713836.61
Gain on debt restructuring 58274.10
Bank acceptance bill discount fee -34872.64
Total 20233457.88 22713836.61
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 12 2026.
138Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd. 2026 Semiannual Report
XX. 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
1.49%0.060.06
company
Net profit after deducting non-recurring gains and
0.97%0.040.04
losses attributable to shareholders of parent company
Bingshan Refrigeration & Heat Transfer Technologies Co. Ltd
August 12 2026
139
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