Bingshan Refrigeration & Heat Transfer
Technologies Co., Ltd.
2024 Annual Report
April, 2025
Section 1 Important Notice, Table of Contents, and Definitions
The directors and the Board of Directors, the supervisors and the SupervisoryBoard, and Senior staff members of Bingshan Refrigeration & Heat TransferTechnologies Co., Ltd. (hereinafter referred to as the Company) hereby confirmthat there are not any important omissions, fictitious statements or seriousmisleading carried in this report, and shall take all responsibilities, individualand/or joint, for the reality, accuracy and completeness of the whole contents.
Chairman of the Board of Directors of the Company Mr. Ji Zhijian, FinancialMajordomo Mrs. Wang Jinxiu and the head of Accounting Department Mrs. WuBin hereby confirm that the financial report of the annual report is true andcomplete.
All the directors have attended this Board meeting of the Company.
There is no significant risk having adverse influence on attainment of theCompany's future development strategy and business targets. The paragraph "The prospect of the Company's future development " in Section 3 of this AnnualReport describes major risks the Company may be confronted with, includingthe risk of Increasing market competition risk, and the Accounts receivable is onthe high side. See the related sections for the countermeasures to be taken by theCompany.
The profit distribution proposal reviewed and adopted at this Board meeting ofthe Company is: Based on the total capital stock of 843,212,507 shares, thedividend of RMB 0.5 in cash (including tax) will be distributed for every 10shares; The Company will not transfer the capital reserve to increase capitalstock.
This report is written respectively in Chinese and in English. In the event of anydiscrepancy between the two above-mentioned versions, the Chinese versionshall prevail.
CONTENTS
Section 1 Important Notice, Table of Contents, andDefinitions……………………………………………………………...................................................…………...2
Section 2 About the Company and Main Financial Indicators ...... 6
Section 3 Management discussion and analysis ...... 9
Section 4 Corporate governance ...... 20
Section 5 Environmental and social responsibility ...... 29Section6Importantitems……………………………………………………………………………………….……30Section 7 Change in Share Capital and Shareholders' Information…………………………………… ...……... ...33Section 8 Information on Preferred Stock ...... 36
Section 9 Information on Corporate bonds ...... 37
Section 10 Financial Report ...... 38
Reference Documents
The accounting statements bearing the signatures and seals of the legal representative, the financial majordomoand the accountants in charge.
2. The original copies of all the Company's documents and the original copies of the bulletins published on thenewspapers 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 YuTel: 0086-411-87968130Fax: 0086-411-87968125
Definitions
| Defined item | Stands for | Meaning |
| Reporting period | Stands for | From Jan. 1, 2024 to Dec. 31 2024 |
| The Company, this Company | Stands for | Bingshan Refrigeration & Heat Transfer Technologies Co.,Ltd. |
| Bingshan Engineering | Stands for | Dalian Bingshan Group Engineering Co., Ltd., one of the subsidiaries of the Company where the Company holds 100% of its shares. |
| Sonyo Compressor | Stands for | Sonyo Compressor (Dalian) Co., Ltd., one of the subsidiaries of the Company, where the Company holds100% of its shares. |
| Sonyo Refrigeration | Stands for | Sonyo Refrigeration (Dalian) Co., Ltd., one of the subsidiary of the Company, where the Company holds 100% of its shares indirectly. |
| Wuxin Refrigeration | Stands for | Wuhan New World Refrigeration Industry Co., Ltd., one of the subsidiaries of the Company where the Company holds 100% of its shares. |
| Bingshan Guardian | Stands for | Dalian Bingshan Guardian Automation Co., Ltd. one of the subsidiaries of the Company where the Company holds 100% of its shares. |
| Sonyo Refrigerator | Stands for | Sonyo Refrigeration System (Dalian) Co., Ltd., one of the subsidiary of the Company, where the Company holds 100% of its shares indirectly. |
Section 2 About the Company and Main Financial Indicators
Company information
| Short form of the stock | Bingshan; Bingshan B |
| Stock code | 000530; 200530 |
| Listed stock exchange | Shenzhen Stock Exchange |
| Legal name in Chinese | 冰山冷热科技股份有限公司 |
| Legal name abbreviation in Chinese | 冰山冷热 |
| Legal English name | Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. |
| Legal English name abbreviation | Bingshan |
| Legal representative | Ji Zhijian |
| Registered address | No.106, Liaohe East Road, Dalian Economic and Technological Development Zone |
| Post code of Registered address | 116630 |
| Historical changes of the Company's registered address | Due to the overall relocation, the registered address of the Company was changed from 888 Southwest Road, Shahekou District, Dalian to 106 Liaohe East Road, Dalian Economic and Technological Development Zone in March 2017. |
| Office address | No.106, Liaohe East Road, Dalian Economic and Technological Development Zone |
| Post code of Office address | 116630 |
| Internet web site of the Company | www.bingshan.cn |
| E-mail of the Company | 000530@bingshan.com |
II. Contact persons and information
| Secretary of the Board of Directors | Authorized representative for securities affairs | |
| Name | Song Wenbao | Du Yu |
| Address | Bingshan Securities﹠Legal Affairs No.106, Liaohe East Road, Dalian Economic and Technological Development Zone | Bingshan Securities﹠Legal AffairsNo.106, Liaohe East Road, Dalian Economic and Technological Development Zone |
| Tel. | 0411-87968130 | 0411-87968822 |
| Fax | 0411-87968125 | 0411-87968125 |
| 000530@bingshan.com | 000530@bingshan.com |
III. Information disclosure and place of preparation for inquiry
| Stock exchange website where companies disclose annual reports | Shenzhen Stock Exchange |
| Name of the newspaper designated the address of the website for publishing this Annual Report | China Securities Daily, Securities Times and http://www.cninfo.com.cn |
| Place where this Annual Report was prepared for inquiry | Securities﹠Legal Affairs Department of the Company |
IV. Alteration to the registration
| Organization code | 912102002423613009 |
| Change in main business since the Company was listed | No change |
| Changes in the holding shareholder | No change |
V. Other related information
Accounting firm engaged by the Company
| Name of accounting firm | ShineWing CPAs (Special General Partnership) |
| Office location of accounting firm | 9/F,A Building No.,8 north street of Chao Yang Men, Dong Cheng District Beijing, China |
| Name of signing certified public accountant | Sui Guojun, Zhang Shizhuo |
Sponsor the Company appointed for performance of the consistent supervision duty in the reporting period
□ Applicable √ Not applicable
Financial consultant the Company appointed for performance of the consistent supervision duty in the reportingperiod
□ Applicable √ Not applicable
VI. Main accounting data and financial indicatorsDid the Company retroactively adjust or restate the accounting data of previous years due to change in theaccounting policy and correction of accounting mistakes?
□Applicable √ Not applicable
| 2024 | 2023 | Increase/decrease compared with previous year | 2022 | |
| Operating revenue | 4,531,147,208.98 | 4,815,941,467.70 | -5.91% | 2,893,085,310.29 |
| Net profit attributable to shareholders of listed companies | 110,335,139.06 | 49,375,900.83 | 123.46% | 18,731,969.48 |
| Net profit belonging to the shareholders of listed companies after the deduction of non-recurring profit and loss | 34,268,377.84 | 16,483,449.17 | 107.90% | -272,983,508.15 |
| Net cash flow from operating activities | 237,154,274.44 | -24,440,667.74 | - | -56,247,299.36 |
| Basic earnings per share | 0.13 | 0.06 | 116.67% | 0.02 |
| Diluted earnings per share | 0.13 | 0.06 | 116.67% | 0.02 |
| Weighted average return on net asset yield | 3.57% | 1.63% | Increase 1.94 percentage points | 0.61% |
| 2024.12.31 | 2023.12.31 | Increase/decrease compared with previous year | 2022.12.31 | |
| Total assets | 7,628,315,487.35 | 8,162,848,294.25 | -6.55% | 7,601,935,329.60 |
| Owner's equity attributable to shareholders of listed companies | 3,132,102,966.64 | 3,047,513,577.75 | 2.78% | 3,006,120,427.03 |
The lower of the Company’s net profit before and after deduction of non-recurring gains and losses in the mostrecent three fiscal years are all negative, and the audit report in the last year shows that the Company's ability tocontinue operations is uncertain
□ Applicable √ Not applicable
The lower of the net profit before and after non-recurring gains and losses is negative
□ Applicable √ Not applicable
VII.1.Difference of accounting data between as per Chinese accounting standards and as perInternational Accounting Standards
□ Applicable √ Not applicable
2. Difference of accounting data between as per Chinese accounting standards and as perForeign Accounting StandardsThe difference of accounting data between as per Chinese Accounting Standards and as per InternationalAccounting Standards was 0.
3.Explanation of reasons for differences in accounting data under domestic and foreignaccounting standards
√Applicable □Not applicable
The difference of accounting data between as per Chinese Accounting Standards and as per InternationalAccounting Standards was 0.
VIII. The quarter main financial indicators
| the first quarter | the second quarter | the third quarter | the fourth quarter | |
| Operating revenue | 1,160,307,673.73 | 1,302,969,675.97 | 1,251,298,834.59 | 816,571,024.69 |
| Net profit attributable to shareholders of listed companies | 29,260,174.46 | 49,269,803.46 | 16,044,687.93 | 15,760,473.21 |
| Net profit belonging to the shareholders of listed companies after the deduction of non-recurring profit and loss | 24,431,907.94 | 42,915,071.01 | 3,705,366.38 | -36,783,967.49 |
| Net cash flow from operating activities | -158,187,622.10 | 125,601,637.35 | -12,700,245.43 | 282,440,504.62 |
IX. Non-recurring profits and losses and their amounts
| item | 2024 | 2023 | 2022 |
| Disposal gains and losses of non-current asset | -758,256.80 | -6,656,241.40 | 109,194,830.34 |
| Government subsidies included in current profit or loss | 19,490,628.71 | 8,263,130.89 | 11,878,746.43 |
| Debt restructuring gains and losses | 2,154,769.80 | 1,791,602.29 | 230,467.42 |
| Profit or loss arising from contingencies unrelated to the normal operation of the company | -402,140.00 | 10,206,786.86 | -2,019,000.00 |
| Disposal gains from investments on financial assets available for sale, and gains from fair value change of financial assets available for sale | 60,482,638.34 | 14,073,910.32 | -3,694,509.36 |
| Reversal of impairment provisions for accounts receivable subject to separate impairment testing | 4,324,906.64 | 3,784,207.57 | |
| The one-time expenses incurred by the enterprise due to the discontinuation of related business activities | -6,774,379.53 | 3,928,060.93 | |
| Other non-operating revenue or expense | 2,831,968.96 | 8,754,118.59 | |
| Other profit and loss items that meet the definition of non recurring profit and loss | 8,152,168.63 | 170,729,805.79 | |
| Influence on income tax | 10,575,731.10 | 5,162,725.13 | 2,961,966.70 |
| Influence on minority shareholders | 27,843.47 | 168,249.63 | 397,014.88 |
| Total | 76,066,761.22 | 32,892,451.66 | 291,715,477.63 |
Section 3 Management discussion and analysis
The industry situation of the Company during the reporting period
1. Industry development trend
In recent years, the refrigeration and air conditioning industry has played an increasingly prominent role innational strategies such as food safety, energy security, consumption upgrading, energy conservation and carbonreduction. The high-end, digital, green, and service-oriented development of the industry has been rapid.In 2024, the refrigeration and air conditioning industry is still facing a complex domestic and international marketsituation, with intensified market competition, difficulties in improving efficiency, and high accounts receivable,which continue to plague the operation and development of the industry.In 2025, industry development will continue to differentiate and competition will continue to intensify. Thetransformation and upgrading of leading enterprises in the industry will be accelerated, high-quality developmentwill be more stable, and new quality productivity will be cultivated in an orderly manner.
2. Challenges and opportunities faced by the Company
(1)Opportunities faced by the Company
Energy conservation, carbon reduction, and improving energy efficiency have become a consensus in the wholesociety; The overall orderly promotion of the national "dual carbon" strategy; Guided by the development plan ofcold chain logistics, the demand for cold chain equipment in the market is expected to increase; The issuance ofnew cold storage design standards has increased the opportunities for the use of ammonia refrigerants; The ice andsnow economy will receive policy support, and the construction projects of ice and snow venues will increase.With its strong technological foundation, innovative business model, and institutional advantages, the Companycan better seize the above opportunities.
(2)Challenges faced by the Company
The cultivation of energy conservation and emission reduction market still needs time; the transformation andupgrading process is complex.
II. The Company’s Main business during the reporting period
Focusing on the hot and cold industry, the Company is committed to the development of industrialrefrigeration and heating business, commercial refrigeration business, air conditioning and environmentbusiness, engineering and service business and new business fields, covering the key areas of the hot andcold 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 absorptionrefrigeration machines/units, as well as pressure vessels, combination warehouses, controlled atmospherefresh-keeping warehouses, refrigeration stations, etc. The company provides product sales andcomprehensive solutions for both domestic and international markets, with self operated sales as the mainfocus and channel sales as a supplement.In 2024, rigid demands such as food safety, energy security, energy conservation and carbon reduction, andequipment updates will benefit the refrigeration and air conditioning industry; At the same time, therefrigeration 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 andchallenges, the company focuses on the hot and cold business, continues to deeply cultivate advantageoussegmented markets such as cold chain logistics, petrochemicals, beer and dairy products, ship refrigeration,ice and snow venues, and environmental simulation, vigorously expands new businesses such as energystorage thermal management and CCUS, and actively expands and seizes the domestic market.
1. Industrial refrigeration and heating business
Industrial refrigeration is an important field reflecting the core technology of the Company. After years ofdevelopment, the Company has been close to the technical level of the main international competitors in thefield of industrial refrigeration, and has achieved catching up in some fields. Based on the traditionalrefrigeration, the Company realizes the balance of cold and heat through the utilization of heat, which greatlyimproves the energy utilization rate.During the reporting period, the Company actively served high-end customers and signed multiple highstandard projects in areas such as petroleum refining integration, fine chemicals, and new materials. Theindustry influence of Bingshan brand continued to increase.
2. Commercial refrigeration business
Commercial refrigeration is the Company's core business. In China, the Company takes the lead in openingup the green intelligent cold chain from the first kilometer of the field to the last 100 meters of the residentialcommunity, which is the competitive advantage of the Company.Focusing on food refrigeration, the Company has patented products pre-cooling from the field, all kinds ofquick freezing equipment and refrigeration facilities of various specifications, and China's leading experiencein the design and installation of large-scale ammonia and carbon dioxide refrigerators. On the basis ofabsorbing 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 andrefrigeration.During the reporting period, the Company signed several key projects, including supply and sales cold chainlogistics, Linshui County Cold Chain Logistics Park, Beijing's first launch project, Guangzhou Yihai Kerryproject, and the third phase of the Grand Mansion project.
3. Air conditioning and environment business
In recent years, relying on the complete industrial chain, the Company has continuously carried outtransformation and upgrading in the field of air conditioning and environment, developed moreenergy-saving and environmental protection products around the blue sky project, and accelerated thetransformation and upgrading from air treatment to environmental governance.At present, the Company has developed a series of innovative products around the market segments ofcommercial air conditioning, central air conditioning and special air conditioning, and providescorresponding solutions in different segments around these innovative products. For hospitals, electronicfactories, high-end real estate, rail transit and other fields, provide targeted solutions.During the reporting period, the subsidiary of the Company, Bingshan Air Conditioning, vigorouslydeveloped the air source heat pump business. The new air source heat pump product focuses on ultra-lowtemperature and high energy efficiency, and can achieve ultra-low temperature heating of -40℃. It isactively promoted in cold regions such as Northeast and Northwest China.
4. Engineering and service business
Cold and hot engineering and service are the Company's advantageous business fields. In recent years, theCompany has realized transformation and upgrading from the manufacturer of cold and hot equipment to theservice provider of comprehensive solution of cold and hot through the development of engineering andservice industry, and realized the dual wheel drive of the enterprise, and provided more professional andaccurate services to each segment market, and constantly created new value for customers and realizedcommon growth.At present, the Company focuses on petrochemical technology, refrigeration, central air conditioning, ice andsnow 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 tomanufacturing, 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 servicesfor customers through the form of project general contracting and financial leasing.During the reporting period, the Company signed multiple key projects including the China NationalPharmaceutical Group Pharmaceutical Logistics Project, Great Wall Motors Wind Tunnel, and BaotouVanke Ice and Snow Center. The indoor ice and snow venue project of Shanghai Lingang Yaoxue Ice andSnow World was completed and delivered.
5. New business
With the deepening of China's economic transformation and upgrading, as well as the continuousintroduction of environmental governance policies, the domestic industrial energy conservation andenvironmental protection industry is growing rapidly, the level of energy conservation and consumptionreduction of enterprises and the comprehensive utilization of resources is constantly improving, and theenergy industrial structure has changed. Strengthening the optimal utilization of energy has become adevelopment trend. For low-grade energy recycling, the Company provides customers with a series ofenergy-saving, environmental protection, efficient new products, in line with the national strategicrequirements of energy conservation, carbon reduction and sustainable development, and contributesprofessional wisdom to the national carbon peak and carbon neutral strategy.During the reporting period, the Company made good progress in new businesses such as energy storagethermal management and CCUS, with a significant increase in orders.
III. Analysis of core competenceThe Company focuses on main business of refrigeration and heating; independent R&D and jointventure partnerships are cooperate with each other effectively; capital resources integration andbusiness model innovation are in a positive interaction; the community of business and interest arebeing multi-storey created; the develop mode with Bingshan characteristic are formed.The Company has the integrated refrigeration and heating industrial chain for offering kinds ofcomprehensive 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 networkon/off-line, and can offer high quality and high value-added services more initiative and faster forclients from around the city.The Company follows the technical route of thermal balance and has independently developed aseries of energy-saving, environmentally friendly, efficient, and intelligent thermal technologies andproducts, professionally empowering food safety and energy security, and actively fulfilling its dualcarbon 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 sustainablegrowth is increasingly clear.During the reporting period, the Company focused on the hot and cold business, deeply cultivatedthe 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.
IV. Analysis of main business
1. summarize
In 2024, the Company focuses on the hot and cold business, deeply cultivates segmented markets, solidlyenhances core competitiveness, effectively expands industry influence, and continuously strengthens its mainbusiness. In 2024, the Company achieved an operating revenue of 4,531.15 million yuan, an decrease of
5.91% year-on-year; The net profit attributable to the shareholders of the listed company was 110.34 millionyuan, an increase of 123.46% year-on-year.
During the reporting period, the Company continued to strive and develop steadily. Optimize the incentivepolicy for all employees, strengthen market and product planning, and simplify key business processes. Givefull play to the advantages of differentiation and strengthen the exploration of new fields. Guided bycustomer needs, accelerate the development of innovative products. The Company's "Multi energyComplementary Series Technology and Equipment for Achieving Zero Carbon Goals in the Meat Industry"has passed the scientific and technological evaluation of the China Meat Association, and the overall projecthas reached the international advanced level, with individual devices and technologies reaching theinternational leading level. The Company's key technology research and industrialization of the falling filmsemi closed screw chiller unit won the second prize of Liaoning Provincial Science and Technology ProgressAward. The -95℃ ethylene ultra-low temperature cascade unit has been selected as an innovative product atthe 2024 China Refrigeration Exhibition. Successfully passed the ISO50001 energy management systemcertification.
During the reporting period, the subsidiary of the Company, Bingshan Engineering Company, continued todeeply cultivate the segmented market. In the field of product business, it actively serves high-end customersand have signed multiple high standard projects in areas such as petroleum refining integration, finechemicals, and new materials. In the field of engineering, several key projects including the Linshui CountyCold Chain Logistics Park project, the Beijing debut project, the Guangzhou Yihai Kerry project, theDazhuang Phase III project, and the Baotou Vanke Ice and Snow Center have successfully won bids. TheShanghai Lingang Yaoxue Ice and Snow World Indoor Ice and Snow Venue project has been completed anddelivered. In the field of energy, the rapid promotion of energy storage thermal management projects andCCUS projects has led to a significant increase in orders.
During the reporting period, the subsidiary of the Company, Wuhan New World Refrigeration, continuouslyoptimized its products and solutions. Based on market trends, focus on breakthroughs in advantageous areassuch as natural gas pressure energy generation, mining explosion-proof refrigeration devices, water vaporcompression, and process gas compression. Breaking through technological barriers, the 100000 cubic meterMRC natural gas liquefaction unit of the New Land Energy project has successfully operated. Professionalassistance in energy security has led to a significant increase in orders in the coal mining industry. Themining explosion-proof refrigeration device has been selected as an innovative product at the 2024 ChinaRefrigeration Exhibition.
During the reporting period, the subsidiary of the Company, Bingshan Guardian, focused on energy-savingand intelligent control of cold and hot systems, and innovated and iterated development. The batterymanagement system (BMS) of energy storage power stations is being commercialized on a large scale, andthe energy storage inverter system (PCS) is actively expanding. It was selected as a pilot demonstration
enterprise in the "5G+Industrial Internet" integrated application pilot area. The practice of digital workshopconstruction with the goal of improving efficiency has won the first prize of Dalian Enterprise ManagementInnovation Achievement.
During the reporting period, the subsidiary of the Company, Sonyo Compressor, achieved independentinnovation and qualitative growth. Actively expanding into the European and South American markets, withrapid growth in export revenue. Effectively responding to the rise in raw material prices and steadilyimproving actual profitability. The development of R290 environmentally friendly refrigerant models is fullyunderway, and specialized models for energy storage and liquid cooling are being accelerated for promotion.The high-efficiency scroll compressor with an evaporation temperature of -42℃ for ultra-low ambienttemperature air source heat pumps has been selected as an innovative product at the 2024 ChinaRefrigeration Exhibition. Received the title of "National Green Factory".
During the reporting period, the subsidiary of the Company, Sonyo Refrigeration, focused on industrialenergy conservation and amplified synergies. Establish an overseas business unit, quickly connect overseaschannels, and vigorously promote the export of lithium bromide absorption refrigeration units. Solidlyexpand new products and applications based on vacuum technology and waste heat recovery technology. Thenew product of gas electric hybrid air source heat pump fills the gap in the domestic industry. The Stirlingwaste heat generator unit has been selected as an innovative product at the 2024 China RefrigerationExhibition.
During the reporting period, the subsidiary of the Company, Sonyo Refrigerator, focused on productdevelopment and focused on new areas of dual carbon and energy storage. The orders for high-efficiencythermal management heat exchange units for energy storage batteries have significantly increased, andproduction capacity has rapidly improved. The carbon dioxide transcritical refrigeration system is widelyused in commercial applications, and the sixth generation transcritical full injection refrigeration unit hasbeen successfully developed. The world's first set of marine carbon dioxide transcritical refrigerationequipment carbon capture system has been independently developed and applied in an orderly manner.
2. Sales income and costs
(1) Sales income structure
| 2024 | 2023 | Year-on-year increase/decrease | |||
| Amount | Proportion to the Sales costs | Amount | Proportion to the Sales costs | ||
| Total sales income | 4,531,147,208.98 | 100% | 4,815,941,467.70 | 100% | -5.91% |
| By industry | |||||
| Refrigeration and air-conditioning equipment | 4,435,315,179.34 | 97.89% | 4,708,789,817.06 | 97.78% | -5.81% |
| Others | 95,832,029.64 | 2.11% | 107,151,650.64 | 2.22% | -10.56% |
| By product | |||||
| Industrial product | 3,322,992,841.50 | 73.34% | 3,357,438,836.06 | 69.72% | -1.03% |
| Installation works | 1,109,728,685.33 | 24.49% | 1,294,663,341.77 | 26.88% | -14.28% |
| Others | 98,425,682.15 | 2.17% | 163,839,289.87 | 3.40% | -39.93% |
| Domestic sales | 3,915,157,033.71 | 86.41% | 4,278,214,645.22 | 88.83% | -8.49% |
| Foreign sales | 615,990,175.27 | 13.59% | 537,726,822.48 | 11.17% | 14.55% |
(2) Main business structure
| Operating revenue | Operating costs | Gross profit | Increase/decrease of operating revenues on a year-on-year basis | Increase/decrease of operating costs on a year-on-year basis | Increase/decrease of gross profit on a year-on-year basis | |
| By industry | ||||||
| Refrigeration and air-conditioning | 4,435,315,179.34 | 3,715,591,847.99 | 16.23% | -5.81% | -5.50% | Decrease 0.27 percentage points |
| By product | ||||||
| Industrial product | 3,322,992,841.50 | 2,659,179,882.13 | 19.98% | 5.32% | 6.66% | Increase 0.11 percentage points |
| Installation works | 1,109,728,685.33 | 1,055,608,716.75 | 4.88% | -30.74% | -29.29% | Decrease 2.77 percentage points |
| Others | 2,593,652.51 | 803,249.11 | 69.03% | -95.42% | -98.25% | Increase 50.17 percentage points |
| By region | ||||||
| Domestic sales | 3,819,325,004.07 | 3,238,531,793.86 | 15.21% | -8.43% | -8.40% | Decrease 0.03 percentage points |
| Foreign sales | 615,990,175.27 | 477,060,054.13 | 22.55% | 14.55% | 20.31% | Decrease 3.71 percentage points |
| By sales model | ||||||
| Total | 4,435,315,179.34 | 3,715,591,847.99 | 16.23% | -5.81% | -5.50% | Decrease 0.27 percentage points |
（3）Was the Company's sales income on material objects more than that on labor service?
√ Yes □ No
| Industry category | Item | 2024 | 2023 | Year-on-year increase/decrease |
| Main refrigeration unit for industrial or commercial use | Sales volume | 914,435 | 836,513 | 9.32% |
| Production output | 919,335 | 873,086 | 5.30% | |
| Inventory level | 109,973 | 108,409 | 1.44% |
Reason for change in the related data by 30% or higher on a year-on-year basis? Applicable √ Not applicable
（4）Performance of major sales contracts and major procurement contracts signed by the company up tothe reporting period? Applicable √ Not applicable
（5）Sales cost structure
| Industry category | Item | 2024 | 2023 | Year-on-year increase/decrease | ||
| Amount | Proportion to the operating costs | Amount | Proportion to the operating costs | |||
| Refrigeration and air-conditioning | Direct materials | 3,152,291,175.61 | 83.75% | 3,289,266,971.15 | 82.12% | -4.16% |
| Labor wages | 398,210,368.01 | 10.58% | 484,370,022.22 | 12.09% | -17.79% | |
| Depreciation | 61,579,139.06 | 1.64% | 75,764,314.69 | 1.89% | -18.72% | |
| Utilities | 27,430,609.69 | 0.73% | 31,810,562.98 | 0.79% | -13.77% | |
| Others | 124,296,923.81 | 3.30% | 124,385,587.16 | 3.11% | -0.07% | |
| Total operating costs | 3,763,808,216.19 | 100.00% | 4,005,597,458.19 | 100.00% | -6.04% | |
(6) Was the Company's consolidated range change during the reporting period?
□ Applicable √ Not applicable
(7) Major change or adjustment in the Company's products or service in the reporting period
□ Applicable √ Not applicable
(8) Information on the Company's major customers and major suppliers
Information on the Company's major customers
| Total sales volume from top five customers (yuan) | 547,658,294.00 |
| Proportion of the total sales volume from top five customers to the annual sales volume | 12.09% |
| Proportion of the related party total sales volume from top five customers to the annual sales volume | 5.02% |
Information on the Company's major suppliers
| Total purchase volume from top five suppliers (yuan) | 473,228,931.50 |
| Proportion of the total purchase volume from top five suppliers to the annual purchases volume | 15.68% |
| Proportion of the related party total purchase volume from top five suppliers to the annual purchases volume | 2.08% |
Information on the Company's top five suppliers
| No. | Name of supplier | Purchase volume (yuan) | Proportion to the annual purchase volume |
| 1 | Supplier 1 | 159,214,306.94 | 5.27% |
| 2 | Supplier 2 | 94,952,310.25 | 3.15% |
| 3 | Supplier 3 | 78,945,273.85 | 2.62% |
| 4 | Supplier 4 | 77,382,380.72 | 2.56% |
| 5 | Supplier 5 | 62,734,659.74 | 2.08% |
| Total | —— | 473,228,931.50 | 15.68% |
3. Expenses
| 2024 | 2023 | Increase/decrease of gross profit on a year-on-year basis | Explain for major changes | |
| Selling expenses | 240,710,529.95 | 233,862,026.48 | 2.93% | Financial expenses have significantly decreased, mainly due to a reduction in bank loans and interest rate cuts during the reporting period, resulting in a decrease in interest expenses. |
| Administrative expenses | 285,364,414.70 | 250,568,245.50 | 13.89% | |
| Financial expenses | 23,001,855.93 | 30,158,077.47 | -23.73% | |
| R&D expenses | 155,526,315.57 | 164,185,717.71 | -5.27% |
4. R&D expenditure
Information on R&D expenditure
| 2024 | 2023 | Increase/decrease on a year-on-year basis | |
| The quantity of the person engaged in R&D | 548 | 560 | -2.14% |
| The quantity proportion of the person engaged in R&D | 12.96% | 12.95% | Increase 0.01 percentage points |
| The spending amount on R&D（yuan） | 155,526,315.57 | 164,185,717.71 | -5.27% |
| R&D spending accounts for the proportion of revenue | 3.43% | 3.41% | Increase 0.02 percentage points |
| The amount of R&D investment capitalization（yuan） | 0.00 | 0.00 | 0.00% |
| Capitalize R&D investment for the proportion of R&D spending | 0.00% | 0.00% | 0.00% |
Reasons for the remarkable change in R&D spending accounts for the proportion of revenue compared with theprevious year
| No. | Name of customer | Sales volume (yuan) | Proportion to the annual sales volume |
| 1 | Customer 1 | 124,892,254.77 | 2.76% |
| 2 | Customer 2 | 107,824,472.35 | 2.38% |
| 3 | Customer 3 | 106,464,917.08 | 2.35% |
| 4 | Customer 4 | 105,960,345.03 | 2.34% |
| 5 | Customer 5 | 102,516,304.77 | 2.26% |
| Total | —— | 547,658,294.00 | 12.09% |
□ Applicable √ Not applicable
Reasons for the substantial changes in the capitalization rate of R&D investment and its rationality
□ Applicable √ Not applicable
5. Cash flows
| Item | 2024 | 2023 | Year-on-year increase/decrease |
| Sub-total of cash inflows from operating activities | 4,283,305,967.55 | 4,269,130,191.69 | 0.33% |
| Sub-total of cash outflows from operating activities | 4,046,151,693.11 | 4,293,570,859.43 | -5.76% |
| Net amount of cash flow generated in operating activities | 237,154,274.44 | -24,440,667.74 | - |
| Sub-total of cash inflows from investing activities | 598,921,586.65 | 46,010,527.14 | 1,201.71% |
| Sub-total of cash outflows from investing activities | 228,719,169.31 | 269,378,896.52 | -15.09% |
| Net amount of cash flow generated in investing activities | 370,202,417.34 | -223,368,369.38 | - |
| Sub-total of cash inflows from financing activities | 345,199,909.07 | 451,319,569.70 | -23.51% |
| Sub-total of cash outflows from financing activities | 675,023,781.75 | 454,362,447.06 | 48.57% |
| Net amount of cash flow generated in financing activities | -329,823,872.68 | -3,042,877.36 | - |
| Net increase in cash and cash equivalents | 281,139,347.62 | -251,221,467.19 | - |
Reason for change in the related data by 30% or higher on a year-on-year basis
√ Applicable □ Not applicable
1. The net cash flow generated from operating activities has significantly increased year-on-year, mainly due tostrengthened accounts receivable management, and improved collection of payments.
2. The net cash flow generated from investment activities increased significantly year-on-year, mainly due to thedisposal of Guotai Junan shares held by the company during the reporting period.
3. The net cash flow generated from financing activities decreased significantly year-on-year, mainly due to anincrease in the repayment of bank loans during the reporting period.
Reason for remarkable difference between the cash flows from the Company's operating activities in the reportingperiod and the net annual profit.
□Applicable √ Not applicable
V. Analysis of the non-main business
□ Applicable √ Not applicable
VI. Analysis of assets & liabilities
1. Remarkable change in assets
Monetary unit: RMB yuan
| 2024.12.31 | 2024.1.1 | Proportion increase/decrease | Explain for major changes | |||
| Amount | Proportion to the total assets | Amount | Proportion to the total assets | |||
| Monetary funds | 1,042,143,744.67 | 13.66% | 951,039,570.11 | 11.65% | Increase 2.01 percentage points | |
| Accounts receivable | 1,492,234,348.90 | 19.56% | 1,576,433,924.16 | 19.31% | Increase 0.25 percentage points | |
| Contract assets | 184,760,940.32 | 2.42% | 237,076,878.71 | 2.90% | Decrease 0.48 percentage points | |
| Inventories | 1,393,653,788.81 | 18.27% | 1,638,139,479.14 | 20.07% | Decrease 1.80 percentage points | |
| Investment property | 117,931,720.24 | 1.55% | 123,589,681.50 | 1.51% | Increase 0.04 percentage points | |
| Long-term equity investment | 481,973,415.36 | 6.32% | 521,274,947.50 | 6.39% | Decrease 0.07 percentage points | |
| Fixed assets | 1,211,794,069.63 | 15.89% | 1,291,851,402.46 | 15.83% | Increase 0.06 percentage points | |
| Construction in progress | 86,221,660.80 | 1.13% | 114,801,351.21 | 1.41% | Decrease 0.28 percentage points | |
| Use right assets | 23,318,732.46 | 0.31% | 30,548,057.08 | 0.37% | Decrease 0.06 percentage points | |
| Short-term loans | 167,283,407.26 | 2.19% | 262,287,784.38 | 3.21% | Decrease 1.02 percentage points | |
| Contract liabilities | 645,711,808.53 | 8.46% | 787,685,294.53 | 9.65% | Decrease 1.19 percentage points | |
| Long-term loans | 547,346,541.25 | 7.18% | 679,700,000.00 | 8.33% | Decrease 1.15 percentage points | |
| Lease liabilities | 19,071,845.78 | 0.25% | 24,134,986.97 | 0.30% | Decrease 0.05 percentage points |
2. Assets & liabilities which are measured by fair value
√ Applicable □ Not applicable
Other non-current financial asset measured in fair value is 164,024,771.63 yuan at the year beginning，and1,683,852.59 yuan at the year end.Restrictions on asset rights as of the end of the reporting periodBy the end of reporting period, the Company’s asset rights 314,758,067.11 yuan was limited, the reason for thelimitation: the deposit and the bank account were frozen; bank pledge; mortgage.VII. Analysis of investments
1.The overall situation
√ Applicable □ Not applicable
| Investment in 2024(yuan) | Investment in 2023(yuan) | Amount of variation |
| 78,719,169.31 | 89,321,945.50 | -11.87% |
2.The significant equity investment during the reporting period
□Applicable √Not applicable
3 The significant non-equity investment during the reporting period
□Applicable √Not applicable
4.The financial asset investment
(1) The securities investment
√ Applicable □ Not applicable
| Stock code | Stock abbreviation | Initial investment cost | Accounting measurement model | Book value at the beginning | Changes in the profit and loss of the fair value in this period | Accumulative change of fair value credited to equity | Current sale amount | Report period profit and loss | Book value in the ending | Accounting subjects | Source of funds |
| 601211 | Guotai Haitong | 10,910,008.00 | fair value measurement | 162,340,919.04 | 27,205,532.40 | 0.00 | 224,933,847.16 | 65,883,142.74 | 0.00 | Other Non-current financial assets | Own funds |
| total | 10,910,008.00 | -- | 162,340,919.04 | 27,205,532.40 | 0.00 | 224,933,847.16 | 65,883,142.74 | 0.00 | -- | ||
(2) Derivative investment
□Applicable √ Not applicable
During the reporting period, the Company does not exist derivative investment.
5. The use of funds raised
□Applicable √ Not applicable
VIII. The material assets and equity sale
1. The material assets sale
□Applicable √Not applicable
2. The material equity sale
□Applicable √Not applicable
IX. Analysis of major subsidiary companies and mutual shareholding companies
√ Applicable □ Not applicable
Unit: ten thousand yuan (except for registered capital)
| Company name | Type | The main business | registered capital | total assets | net assets | Operating income | Net profit |
| Sonyo Compressor | subsidiary | Manufacture and sales of gas compression machinery | RMB 442.3967million | 182,323 | 119,018 | 144,965 | 12,839 |
| Bingshan Metal | mutual shareholding company | High-grade building hardware, plumbing equipment | USD 18,064.5 thousand | 29,835 | 23,803 | 43,225 | 5,814 |
Subsidiary companies obtained or disposed in the reporting period
□Applicable √Not applicable
X. The structured corporate bodies which the Company controlled
□Applicable √Not applicable
XI. Development prospect of the CompanyMajor risks faced and countermeasures adopted by the Company
(1)Increasing market competition risk
Countermeasures: focus on hot and cold industries, deeply cultivate segmented markets; quickly enhance productand engineering capabilities; orderly improving the level of intelligent manufacturing and service-orientedmanufacturing; accelerate the transformation and upgrading of inherent undertakings, improve quality andefficiency; accelerate the cultivation of new driving forces and increase differentiated competitive advantages.
(2)Risk of high level of trade receivables
Countermeasures: strictly implement the project management system and further strengthen the management ofaccounts receivable; enhance quality of contract through intensified customer credit assessment and contractappraisal; effective control of increase in trade receivables by reduction of guarantee deposits, and taking bankcredit 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 compositionsolutions and incentive policy to accelerate settlement of trade receivables with relatively long aging.
In 2025, the Company will follow the business policy of "stabilizing growth, adjusting structure and cultivatingnew energy", focus on cold and hot business, and further develop cold chain logistics, petrochemical industry,ship refrigeration, ice and snow venues CCUS、 Segmented markets such as energy storage and thermalmanagement, solidly enhancing core competitiveness, effectively expanding industry influence, continuouslystrengthening main business, and striving to achieve rapid growth.
XII. Record of investigation, communication, and other activities in the reporting period
√Applicable □Not applicable
For details, please seehttp://irm.cninfo.com.cn/ircs/company/companyDetail?stockcode=000530&orgId=gssz0000530XIII. Implementation of Market Value Management System and Valuation EnhancementPlanHas the Company established a market value management system.
□Applicable √Not applicable
Has the Company disclosed a plan to increase its valuation.
□Applicable √Not applicable
XIIII. Implementation of the Action Plan for "Double Improvement of Quality and Return"
Has the Company disclosed the announcement of the "Double Improvement of Quality and Return" action plan.
□Applicable √Not applicable
Section 4 Corporate governance
I. Basic situation of corporate governance
Within the reporting period, the Company centered around the operation subject as “Leading innovation, Creatingvalue”, relying on the opportunity of overall relocation and transformation of the Company, to further deepen andperfect the normative internal control system and upgrade the governing level of the Company continuously.
There were no problems with the Company concerning horizontal competition caused by restructures and otherreasons. The main normal associated transactions between the Company and the associated companies includedpurchasing the supporting products for package projects from the associated companies, and selling the supportingparts and components to the associated companies and providing them with the labor service. Associatedtransactions between the Company and the associated companies are necessary for normal production andoperation and helpful for the Company’s healthy development, and therefore will continue. The Company willstrictly follow the related decision-making procedures and fulfill the obligation in information disclosure in orderto further regulate associated transactions.Was there any deviation of the Company's corporate governance from the requirements in the Company Law andChina Securities Regulatory Commission's regulations?
□ Yes √ No
There was no deviation of the Company's corporate governance from the requirements in the Company Law andChina Securities Regulatory Commission's regulations.
II. Status of the Company's business, staff, asset, organization and finance separations fromthe holding shareholder
The Company was separated from the holding shareholder in business, staff, asset, organization and finance, andhas the independent and complete business and operation capability.
III. Horizontal competitions
□ Applicable √ Not applicable
IV Shareholders’ general meeting convened in the reporting period
1. Annual Shareholders’ general meeting within this reporting period
| Session number of meeting | The type of the meeting | The proportion of participate investors | date | Disclosing date | Disclosing index |
| 2023 Annual Shareholders’ General Meeting | Annual Shareholders’ general meeting | 29.42% | May 23, 2024 | May 24, 2024 | http://www.cninfo.com.cn |
| The first Extraordinary General Meeting of Shareholders in 2024 | Extraordinary General Meeting of Shareholders | 29.87% | Dec. 27, 2024 | Dec. 28, 2024 | http://www.cninfo.com.cn |
V. Information on the Company’s Directors, Supervisors, Senior Management and Staff
1. basic information
| Name | Position | Office-holding state | Sex | Age | Starting date of office term | Ending date of office term | Shares held at beginning of period (shares) | Increase on holding of shares in this period (shares) | Decrease in holding of shares in this period (share) | Shares held at the end of period (shares) |
| Ji Zhijian | Chairman | Incumbent | M | 57 | Dec.27, 2014 | Dec.26, 2027 | 1,528,830 | 0 | 0 | 1,528,830 |
| Cai Liyong | Vice chairman/ General manager | Incumbent | M | 51 | Jan.1, 2024 | Dec.26, 2027 | 0 | 0 | 0 | 0 |
| Xu Wei | Director | Incumbent | M | 46 | Dec.27, 2024 | Dec.26, 2027 | 0 | 0 | 0 | 0 |
| Kinoshita Ayumu | Director | Incumbent | M | 52 | May 23, 2024 | Dec.26, 2027 | 0 | 0 | 0 | 0 |
| Nishimoto Shigeyuki | Director | Incumbent | M | 58 | Jun.5, 2019 | Dec.26, 2027 | 0 | 0 | 0 | 0 |
| Song Wenbao | Director/ Board secretary | Incumbent | M | 51 | Jan.12, 2022 | Dec.26, 2027 | 593,880 | 0 | 0 | 593,880 |
| Zhai Yunling | Independent director | Incumbent | M | 61 | May 14, 2021 | May 13, 2027 | 0 | 0 | 0 | 0 |
| Liu Yuanyuan | Independent director | Incumbent | F | 50 | May 14, 2021 | May 13, 2027 | 0 | 0 | 0 | 0 |
| Yao Hong | Independent director | Incumbent | F | 51 | May 14, 2021 | May 13, 2027 | 0 | 0 | 0 | 0 |
| Hu Xitang | Chairman of the board of Supervisors | Incumbent | M | 57 | Jan.17, 2019 | Dec.26, 2027 | 0 | 0 | 0 | 0 |
| Dai Yuling | Supervisor | Incumbent | F | 47 | Jan.21, 2016 | Dec.26, 2027 | 0 | 0 | 0 | 0 |
| Li Sheng | Supervisor | Incumbent | M | 45 | May 15, 2020 | Dec.26, 2027 | 0 | 0 | 0 | 0 |
| Yang Fuhua | Deputy general manager | Incumbent | M | 53 | Jan.12, 2022 | Dec.26, 2027 | 0 | 0 | 0 | 0 |
| Wang Jinxiu | Chief Financial Officer | Incumbent | F | 54 | May 14, 2021 | Dec.26, 2027 | 5,000 | 0 | 0 | 5,000 |
| Yin Xide | Former vice chairman | leave office | M | 53 | Jan.1, 2021 | Apr.9, 2024 | 90,080 | 0 | 0 | 90,080 |
| Fan Wen | Former director | leave office | M | 60 | Jan.12, 2022 | Dec.27, 2024 | 7,770 | 0 | 0 | 7,770 |
| Dono Shigeru | Former director | leave office | M | 63 | Jan.12, 2022 | Apr.9, 2024 | 0 | 0 | 0 | 0 |
| Lu Jun | Former deputy general manager | leave office | M | 59 | Jan.12, 2022 | Dec.27, 2024 | 2,500 | 800 | 600 | 2,700 |
| Total | 2,228,060 | 800 | 600 | 2,228,260 |
During the reporting period, whether any directors or supervisors leave office or seniormanagers are dismissed
√Applicable □Not applicable
The Board of Directors of the Company received written resignation reports from directors Yin Xide and DonoShigeru on April 9, 2024. Due to job changes, Mr. Yin Xide has requested to resign from his positions as a director,vice chairman, and member of the compensation and assessment committee of the Company's Board of Directors,while Mr. Dono Shigeru has requested to resign from his position as a director of the Company's Board of Directors.
After resigning from the aforementioned positions, Mr. Yin Xide and Mr. Dono Shigeru will no longer hold anypositions in the Company.
Changes of directors, supervisors, senior managers of the Company
| Name | Position held | Type | Date | Reason |
| Cai Liyong | General manager | Appointed | Jan. 1, 2024 | |
| Xu Wei | Director | Elected | Dec. 27, 2024 | |
| Kinoshita Ayumu | Director | Elected | May 23, 2024 | |
| Yin Xide | Former vice chairman | Leave office | Apr. 9, 2024 | Resignation due to job changes |
| Dono Shigeru | Former director | Leave office | Apr. 9, 2024 | Resignation due to job changes |
| Fan Wen | Former director | Leave office upon expiration of term | Dec. 27, 2024 | |
| Lu Jun | Former deputy general manager | Leave office upon expiration of term | Dec. 27, 2024 |
Office holding
Professional background, main work experiences and the main duties and responsibilities of incumbent directors,supervisors, senior managers of the Company
| Name | Position held | Professional background | Main work experience | main duties and responsibilities |
| Ji Zhijian | Chairman | doctorate degree in management of the Dalian University of Technology | Successively acting as GM, Chairman of Panasonic Cold-Chain.; Chairman and President of Dalian Bingshan Group Co., Ltd.; Chairman of the Company. | Related responsibilities of the Chairman |
| Cai Liyong | Vice chairman GM | Heilongjiang University of Commerce majoring in refrigeration and freezing | served as the General Manager of Dalian Bingshan Ryosetsu Quick Freezing Equipment Co., Ltd., the General Manager of Wuhan New World Refrigeration Industry Co., Ltd., and the General Manager of Bingshan Sonyo Refrigeration (Dalian) Co., Ltd. Starting from January 1, 2024, appointed as the General Manager of the Company. | Related responsibilities of GM |
| Xu Wei | Director | Master of Thermal Energy and Power Engineering, Xi'an Jiaotong University | Formerly served as the General Manager of Dalian Bingshan Wisdom Park Development Co., Ltd. From January 2021 to December 2023, served as the Assistant to the President of Dalian Bingshan Group Co., Ltd. From January 2024, appointed as Vice President of Dalian Bingshan Group Co., Ltd. | Related responsibilities of the Director |
| Kinoshita Ayumu | Director | Graduated from Kansai University in Japan | Formerly served as Executive Vice President of Panasonic Corporation and President and CEO of China Northeast Asia Company. From March 2024, appointed as a director of Dalian Bingshan Group Co., Ltd. From May 2024, appointed as a director of the Company. | elated responsibilities of the Director |
| Nishimoto Shigeyuki | Director | graduated from Meiji university | served as the director of Financial Planning Room and Finance Department System Overall Room of Panasonic Corporation | Related responsibilities of |
| Headquarter; the director of Regional Financial Integration Room, CFO of Panasonic Corporation China & Northeast Asia Company; the supervisor of Dalian Bingshan Group Co., LTD. | the Director | |||
| Song Wenbao | Director and Board Secretary | graduate from Zhejiang University，CFA | Successively acting as representative for securities affairs, board secretary of the Company. | Related responsibilities of Board Secretary |
| Zhai Yunling | Independent director | Doctor of Law, professor, lawyer | Professor of Law School of Dalian Maritime University, lawyer of Beijing Jincheng Tongda (Dalian) Law Firm, legal adviser of Dalian Municipal People's Government, member/arbitrator of Dalian Arbitration Commission | Related responsibilities of the Independent director |
| Liu Yuanyuan | Independent director | Doctor of Accounting | Professor of Accounting School of Dongbei University of Finance and Economics, Director of Sino-German Management Control Research Center, independent director of China Railway Tielong Container Logistics Co., LTD.,; independent director of Kincai (Liaoning) Life Science and Technology Co., LTD. | Related responsibilities of the Independent director |
| Yao Hong | Independent director | graduate from China University of Political Science and Law，professor of law | Doctor of Management, School of Economics and Management, Dalian University of Technology, Independent director of Harbin Hattou Investment Co., LTD., Independent director of Fushun Special Steel Co., Ltd. | Related responsibilities of the Independent director |
Hu Xitang
| Hu Xitang | Chairman of Board of Supervisors | graduated from Nanjing University of Science and Technology | served as the chairman of the labor union of the Company. | Related responsibilities of the Supervisor |
| Dai Yuling | Supervisor | Senior Accountant | acting as the chief of the Financial Dept. of Dalian Bingshan Group Company Ltd. | Related responsibilities of the Supervisor |
Li Sheng
| Li Sheng | Supervisor | graduated from Dalian University of Technology |
acting as the Director of Operation Management Department ofDalian Bingshan Group Company Ltd；chief of the Financial Dept. ofthe Company.
| Related responsibilities of the Supervisor | ||||
| Yang Fuhua | DGM | graduated from Xi 'an Jiaotong University, Senior Engineer | served as engineer, deputy director and director of complete set design Department of the Company; served as deputy General Manager of Dalian Bingshan Group Engineering Co., LTD; served as chief engineer of the Company's business Headquarters and deputy Head of the Research and development Headquarters. | Related responsibilities of DGM |
| Wang Jinxiu | CFO | Senior accountant | served as cost accountant in finance Department of the Company and Minister of Finance Department of DalianBingshan Air Conditioning Equipment Co., LTD.; served as the Director of the Financial Management Department of the Company. served as Chief Financial Officer since May 2021. | Related responsibilities of CFO |
Office holding in shareholder unit
√ Applicable □ Not applicable
| Name of office holder | Shareholder unit name | Position held in shareholder unit | If receiving remuneration or allowance from shareholder unit |
| Ji Zhijian | Dalian Bingshan Group Co., Ltd. | Chairman of the Board, President | Yes |
| Xu Wei | Dalian Bingshan Group Co., Ltd. | Director, Vice President | Yes |
| Kinoshita Ayumu | Dalian Bingshan Group Co., Ltd. | Director | No |
| Nishimoto Shigeyuki | Dalian Bingshan Group Co., Ltd. | Supervisor | No |
| Song Wenbao | Dalian Bingshan Group Co., Ltd. | Supervisor | No |
Office holding in other units
√ Applicable □ Not applicable
| name | unit name | Position held in other unit | If receiving remuneration or allowance from other unit |
| Ji Zhijian | Dalian Zhong Huida Refrigeration Technology Co., Ltd. | Chairman | No |
| Dalian Fu Lida Refrigeration Technology Co., Ltd. | Chairman | No | |
| Dalian Bo Lida Refrigeration Technology Co., Ltd. | Chairman | No | |
| Cai Liyong | Wuhan New World Refrigeration Industrial Co., Ltd. | Chairman | No |
| Sonyo Refrigeration (Dalian) Co., Ltd. | Chairman | No | |
| Sonyo Refrigeration System (Dalian) Co., Ltd. | Chairman | No | |
| Dalian Bingshan Group Construction Co., Ltd. | Chairman | No | |
| Xu Wei | Dalian Hui Lida Refrigeration Technology Co., Ltd. | Chairman | No |
| Liu Yuanyuan | China Railway Tielong Container Logistics Co., Ltd. | Independent director | Yes |
| Kincai (Liaoning) Life Science and Technology Co., Ltd. | Independent director | Yes | |
| Yao Hong | Harbin Hattou Investment Co., Ltd. | Independent director | Yes |
| Fushun Special Steel Co. Ltd. | Independent director | Yes | |
| Yang Fuhua | Dalian Fuji Bingshan Control Systems Co., Ltd. | Chairman | No |
3. Remuneration paid to directors, supervisors, and senior managementDecision-making procedure, decision-making basis and actual payment of remuneration for directors, supervisorsand senior managementDecision-making procedure: the Company's remuneration plan for directors and supervisors was proposed by theCompany's Remuneration and Evaluation Committee of the Board of Directors, and after approval by the Boardof Directors, submitted to the general meeting for adoption and put into effect. The Company’s remuneration planfor senior management was put into effect after approval by the Company’s Board of Directors.Decision-making basis: it was decided on the basis of main responsibilities and importance of the concernedposition and the remuneration level of similar positions in other similar enterprises and evaluated and rewardedthrough the Company’s examination procedure for assets operation performance.The total amount of remunerations actually ( pre-tax ) paid by the Company to directors, supervisors, and seniormanagement was 5,140,400 yuan.
Particulars about the annual remuneration of directors, supervisors and senior staff members
| Name | Annual remuneration and allowance( pre-tax )paid by the Company (ten thousand yuan) |
| Ji Zhijian | 0 |
| Cai Liyong | 112.85 |
| Xu Wei | 0 |
| Kinoshita Ayumu | 0 |
| Nishimoto Shigeyuki | 0 |
| Song Wenbao | 66.35 |
| Zhai Yunling | 8 |
| Liu Yuanyuan | 8 |
| Yao Hong | 8 |
| Hu Xitang | 82.33 |
| Dai Yuling | 0 |
| Li Sheng | 34.54 |
| Yang Fuhua | 65.11 |
| Wang Jinxiu | 64.59 |
| Yin Xide | 0 |
| Dono Shigeru | 0 |
| Fan Wen | 0 |
| Lu Jun | 64.27 |
| Total | 514.04 |
VI. Performance of directors' duties during the reporting period
1.The situation of the board of Directors during this reporting period
| The meeting time | Date of meeting | Date of disclosure | The meeting resolution |
| 19th Meeting of 9th Session of the Board | January 23,2024 | January 25,2024 | http://www.cninfo.com.cn |
| 20th Meeting of 9th Session of the Board | April 24,2024 | April 26,2024 | http://www.cninfo.com.cn |
| 21th Meeting of 9th Session of the Board | August 14,2024 | August 15,2024 | http://www.cninfo.com.cn |
| 22th Meeting of 9th Session of the Board | October 23,2024 | October 24,2024 | http://www.cninfo.com.cn |
| 23th Meeting of 9th Session of the Board | December 10,2024 | December 11,2024 | http://www.cninfo.com.cn |
| 24th Meeting of 9th Session of the Board | December 19,2024 | December 20,2024 | http://www.cninfo.com.cn |
| 1st Meeting of 10th Session of the Board | December 27,2024 | December 28,2024 | http://www.cninfo.com.cn |
2. Attendance of directors at the board of directors and general meetings of shareholders
During the reporting period, all directors were present in person at all board meetings where they were required tobe present.
3.Objections raised by directors to matters related to the company
□ Applicable √ Not applicable
4. Other instructions for the performance of directors' duties
□ Applicable √ Not applicable
VII. Execution of duties of the special committees under the Board of Directors in thereporting period
The audit committee under the Board of Directors of the Company performs its duties in accordance with thedetailed rules for the implementation of the audit committee under the Board of Directors and the workingprocedures for the annual report of the audit committee, supervises the Company's internal audit system and itsimplementation, reviews the Company's financial information and its disclosure, and evaluates the work ofexternal audit institutions.In the evaluation of the Company's internal control, the audit committee actively plays its responsibilities oforganization, leadership and supervision. According to the identification standard of internal control defects of theCompany, the annual internal control evaluation report of the Company was reviewed, and ShineWing Certified
Public Accountants was entrusted to conduct internal control audit. It is considered that the current situation of theCompany's internal control system meets the relevant requirements and has been well implemented. The annualinternal control evaluation report of the Company truthfully reflects the above facts.During the annual audit of the company, the audit committee actively communicated and effectively coordinatedwith the audit institution ShineWing certified public accountants. Before and after the audit, we have repeatedlyurged the audit institutions to promote the audit work with quality and quantity on the audit work plan and workprogress. After the completion of the audit, the annual financial report and annual report of the company werecarefully reviewed, and it was considered that the financial report of the company was comprehensive and true,and the financial report and other information disclosed by the company were objective and true, which trulyreflected the annual financial situation of the company.The Audit Committee believes that ShineWing Certified Public Accountants can abide by the independent,objective and fair practice standards in providing annual audit services for the Company, audit the Company instrict accordance with the new accounting standards, actively communicate with the audit committee andindependent directors, be diligent and responsible, and better complete the annual audit of the Company.The remuneration and assessment committee under the Board of Directors of the Company performed its duties inaccordance with the implementation rules of the remuneration and assessment committee of the Board ofDirectors of the Company, and reviewed the annual remuneration of the directors, supervisors and seniormanagers of the Company.
VIII. Work of the Board of SupervisorsWas there any risk with the Company found by the Board of Supervisors in their supervision activities in thereporting period?
□ Applicable √ Not applicable
The Board of Supervisors had no objections to the matters under supervision in the reporting period.IX Status of the Company's staff
1. As of Dec. 31, 2024 the Company and its subsidiary had 4,229 enrolled employees, including 2,370 personsengaged in production; 583 persons engaged in marketing; 548 persons engaged in engineering and technology;75 persons engaged in financing; and 653 persons engaged in management.
2. As of Dec. 31, 2024, among enrolled employees of the Company and its subsidiary, 143 persons have theeducational background of Master or higher; 1,312 persons have the educational background of university; 1,306persons have the educational background of junior college; and 1,468 persons have the educational background ofsecondary technical school or lower.
3. The Company applied the employee job performance wage system with distribution according to positions andperformance of an employee.
4. The Company formulated the annual training plan and gave purposeful training to an employee in considerationof his/her post requirement.
5. Labor outsourcing
□ Applicable √ Not applicable
X. Profit distribution and dividend paymentBy giving consideration to both the return to shareholders and the Company's long-term development, and incombination of the Company's profit made in this year, the Company formulated the 2023 annual dividenddistribution plan of paying the cash of 0.3 yuan for every 10 shares. Reviewed and adopted at the Company'sgeneral meeting, the Company's Board of Directors has implemented the plan in July 2024.Formulation and implementation of the Company's cash dividend distribution policy in the reporting periodcomplied with the Company's Articles of Association and the general meeting's resolution, and the dividenddistribution standard and proportion were defined and clear and the applicable decision-making procedure andsystem were complete. The independent directors agreed on it and the legal rights and interests of minorityshareholders were well protected.
| If the regulations of the Articles of Association or the requirements of the shareholders of the company meeting are met: | Yes |
| If the dividend payout standard and proportion is definite and clear-cut: | Yes |
| If relevant decision-making procedure and mechanism is complete: | Yes |
| If the independent directors have performed their duties and played their due role: | Yes |
| If small and medium shareholders have the opportunity to sufficiently express their opinions and appeals and if their legal rights and interests are sufficiently protected: | Yes |
| If the condition and procedure for adjusting or changing the cash dividend payout policy is compliant and transparent: | Yes |
The Company made profit in the reporting period and the undistributed profit of the parent company was positivebut no cash dividend distribution plan was proposed.
□ Applicable √ Not applicable
Profit distribution preplan, and preplan of share-granting with capital accumulation fund of the Company
| Bonus shares to be presented for every 10 shares (shares) | 0 |
| Dividend to be distributed for every 10 shares (RMB yuan) (including tax) | 0.5 |
| Equity base for distribution preplan (shares) | 843,212,507 |
| Total amount of cash dividend distribution (RMB yuan) (including tax) | 42,160,625.35 |
| Profit distributable to the shareholders in the current year | 1,033,943,381.98 |
| Proportion of cash dividend distribution accounting for total profit distribution | 100% |
| Cash dividend distribution policy: | |
| When the development stage of the company belongs to a growth period with important fund disbursement arrangement(s), the proportion of cash dividend distribution accounting for this profit distribution should reach 20% at minimum when conducting profit distribution. | |
| Notes to details about preplan for profit distribution or capital stock increase with capital reserve | |
| According to the audit by ShineWing CPAs (Special General Partnership), the net profit made by the parent company of the Company in 2024 was RMB 76.06 million and 10% of the net profit (RMB 7.606 million) was drawn as the legal surplus reserve. Therefore, the profit distributable to the shareholders in the current year was RMB 68.454 million. Plus the initial undistributed profit of RMB 990.786 million and minus the dividend of RMB 25.296 million of common shares paid in 2023, the accumulated profit distributable to the shareholders was RMB 1,033.944 million. The Company’s profit distribution preplan for 2024: Based on the net profit made by the parent Company of the Company in 2024 (76.06 million), 20% of the net profit (RMB 15.212 million) will be drawn as the free surplus reserve; Based on the total capital stock of 843,212,507 shares, the dividend of RMB 0.5 in cash (including tax) will be distributed for every 10 shares, the total cash dividend is RMB 42.161 million, and the cash dividend for B share is converted and paid in Hong Kong dollars. The above preplan shall be submitted to the 2024 shareholders’ general meeting for review and approval. | |
XI．The implementation and effect of equity incentive
□ Applicable √ Not applicable
XII．Internal control system construction and implementation during the reporting period
1. Internal control construction and implementation
During the reporting period, the Company made positive innovation, took the initiative to change, and vigorouslypromoted organizational strengthening. Implement market-centered integrated operation through organizationalrestructuring, business process reengineering and management system revision. Through the project managementsystem, fully implement the project budget, control the whole process of operation, ensure profits and preventrisks.
2. Details of material weakness in the internal control found in the reporting period described in the reporton self-evaluation of internal control.
□ Applicable √ Not applicable
There was no material weakness in the internal control found in the reporting period.
XIII．Management and control of subsidiaries during the reporting period
During the reporting period, the Company focused on strengthening the management control of subsidiaries fromthe following aspects:
(1) The Company carefully identified, strictly managed and dynamically adjusted the directors, supervisors andsenior managers assigned to subsidiaries;
(2) The Company participated in the whole process of the preparation of the annual business plan of itssubsidiaries, made reasonable suggestions and gave appropriate guidance;
(3) The Company conducted monthly/quarterly tracking and annual assessment on the implementation of businessplans and compliance operations of subsidiaries.
XIV．Report on self-evaluation of internal control or internal control audit report
1. Report on self-evaluation of internal control
| Details of material weakness in the internal control found in the reporting period described in the report on self-evaluation of internal control | |
| There was no material weakness in the internal control found in the reporting period. | |
| Date of disclosing the full text of the report on self-evaluation of internal control | Apr. 24, 2025 |
| Disclosure reference to the full text of the report on self-evaluation of internal control | For the 2024 annual report on self-evaluation of internal control of the Company, visit the website www.cninfo.com.cn. |
2. Internal control audit report
| Description of the deliberation opinions in the internal control audit report | |
| We think that as of Dec. 31, 2024, Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. had maintained an effective internal control over the financial reports in all material aspects according to Basic Enterprise Internal Control Specification and relevant regulations. | |
| Date of disclosing the full text of the internal control audit report | Apr. 24, 2025 |
| Disclosure reference to the full text of the internal control audit report | For the 2024 annual internal control audit report of the Company, visit the website www.cninfo.com.cn. |
Did the accounting firm issue the internal control audit report with nonstandard opinions?
□ Applicable √ Not applicable
Was the internal control audit report issued by the accounting firm consistent with the opinion in theself-evaluation report of the Board of Directors?
√Yes □ No
XV. Rectification of problems in self inspection of special actions for governance of listedcompaniesNone
Section 5 Environmental and social responsibilityI．Major environmental issuesThe listed company and its subsidiaries whether belong to heavy pollution industry formulated by the stateenvironmental protection department
√Yes □ No
Bingshan Sonyo Compressor (Dalian) Co., Ltd., and Wuhan New World Refrigeration Industry Co., Ltd,subsidiaries of the Company, are key pollutant discharge units announced by the environmental protectiondepartment.Administrative penalties imposed for environmental problems during the reporting period
□Yes √ No
II．Social responsibilitiesThe specific content of the Company's performance of social responsibility can be found in the SocialResponsibility Report disclosed on www.cninfo.com.cn on April 24, 2025.
III. We consolidated and expanded our achievements in poverty alleviation and rural revitalizationIn 2024, the Company continued to consolidate and expand the achievements of poverty alleviation and ruralrevitalization, and communicated with Songlin Village in Guangmingshan Town, Zhuanghe City to meet theneeds of daily maintenance of the air conditioning equipment in the village cultural activity center. It also invested60,000 yuan to continue to assist in the construction of rural street lighting projects. At present, 50 streetlightshave been installed on the roads where villagers gather for travel. In addition, the company organized volunteersto go to Bingshan Hope School in Shilibao Street, Jinzhou District to carry out the "Love for Education and WarmWinter Action" activity, warming up disadvantaged students with true feelings and demonstrating corporate socialresponsibility and responsibility in the new era with dedication.
Section 6 Important items
I Implementation of commitments
1. Commitments of the Company or its shareholders holding 5% or higher of the shares in the reportingperiod or carried to the reporting period
√Applicable □Not applicable
According to the relevant provisions of the "Self regulatory Guidelines for Listed Companies on the ShenzhenStock Exchange No. 8- Major Asset Restructuring", the important commitments and performance made byrelevant parties during the 2022 major asset restructuring process of the Company are detailed in the Company'sannouncement on the performance of commitments made by relevant parties during the major asset restructuringdisclosed on CNINFO on April 24, 2025.
2. The company's assets or projects have earnings forecasts, and the reporting period is still in the period ofearnings forecasts. The company explains the reasons why the assets or projects have reached the originalearnings forecasts.
□Applicable √Not applicable
II. Non-operation capital occupation by holding shareholders and their related parties in thelisted company
□Applicable √Not applicable
The Company had no capital occupation by the holding shareholders and their related parties in the listedcompany within this reporting period.III. Foreign guarantee in violation of regulations
□ Applicable √ Not applicable
IV. Explain to the “non standard audit report” last year from the board of directors of theCompany
□Applicable √Not applicable
V. Explain to the “non standard audit report” from the board of directors, board ofsupervisors of the Company
□Applicable √Not applicable
VI. Change in accounting policies, accounting estimates and accounting methods or correctionof major accounting mistakes in the reporting period, which should be retroactively restatedcompared with the financial statements of the previous year
√Applicable □Not applicable
In November 2023, the Ministry of Finance issued Interpretation No. 17 of the Enterprise Accounting Standards(Finance and Accounting [2023] No. 21) (hereinafter referred to as "Interpretation No. 17"), which includes "1.Classification of current liabilities and non current liabilities; 2. Disclosure of supplier financing arrangements; 3.Accounting treatment of post-sale leaseback transactions", to be implemented from January 1, 2024. TheCompany shall implement the relevant provisions of Interpretation No. 17 from the date of the regulation, and theimplementation shall have no impact on the financial statements during the reporting period.
In December 2024, the Ministry of Finance issued Interpretation No. 18 of the Enterprise Accounting Standards(Finance and Accounting [2024] No. 24) (hereinafter referred to as "Interpretation No. 18"), which will come intoeffect from the date of issuance. 1. Regarding the subsequent measurement of investment properties held as basicprojects under the floating fee method, and 2. Regarding the accounting treatment of quality assurance that doesnot belong to individual performance obligations. The Company shall implement the relevant provisions ofInterpretation No. 18 from the date of the regulation, and the implementation shall have no impact on the financialstatements during the reporting period.
VII. Change in the range of consolidated statements compared with the financial statementsof the previous year
□Applicable √Not applicable
VIII. Engagement and dismissal of the accounting firm
Currently engaged accounting firm
| Name of domestic accounting firm | ShineWing CPAs (Special General Partnership) |
| Remuneration paid to the domestic accounting firm (in 10 thousand yuan) | 107 |
| Continuous audit service years of the domestic accounting firm | 9 |
| Name of certified public accountants with the domestic accounting firm | Sui Guojun, Zhang Shizhuo |
| Continuous audit service years of the certified public accountants | Sui Guojun 2 years, Zhang Shizhuo 4 years |
If the CPA firm retaining was changed in this period
□Applicable √Not applicable
Employment of internal control audit accounting firm, financial advisor or sponsor
√ Applicable □ Not applicable
During the reporting period, the Company hired ShineWing CPAs (Special General Partnership) as the Company's2024 audit institution to conduct an integrated audit of the Company's financial reports and internal control.
IX. Facing suspend and terminate listing after the annual report disclosure
□ Applicable √ Not applicable
X. Bankruptcy restructuring related matters
□ Applicable √ Not applicable
XI. Major lawsuit and arbitration issues
□ Applicable √ Not applicable
XII. Punishment and rectification
□ Applicable √ Not applicable
XIII．The credibility of companies and its controlling shareholder, actual controller
√ Applicable □ Not applicable
The controlling shareholder of the Company and the Company don’t exist situation such as unfulfilled the court’seffective judgments or failed to pay duly a large amount of debt during the reporting period.XIV．Important associated transactions
1. Related party transactions related to daily operations
During the reporting period, the total amount of normal associated transactions between the Company andassociated parties was 890.09 million yuan, accounting for 96.48% of the budgeted amount for the year 2024. Thisincluded 256.99 million yuan, accounting for 82.11% of the budgeted amount for the year 2024, for purchasingsupporting products for package projects from associated parties, and 633.1 million yuan, accounting for 104.32%of the budgeted amount for the year 2024, from selling supporting parts and components to associated parties.
Associated transactions related to purchases or sales of assets
□Applicable √ Not applicable
Important associated transactions with joint external investments
□ Applicable √ Not applicable
4. Associated transactions related to rights and debts
□ Applicable √ Not applicable
5. Associated transactions with related financial companies
□ Applicable √ Not applicable
6. The transactions between the financial company controlled by the company and its related parties
□ Applicable √ Not applicable
7. Other associated transactions
√ Applicable □ Not applicable
During the reporting period, the subsidiary of the Company, Bingshan Sonyo Compressor, collaborated withPanasonic to plan production capacity reasonably, optimize production layout, and improve production efficiencyWanbao (Guangzhou) Compressor Co., Ltd. has signed a transfer agreement to transfer some of its machinery andequipment, as well as supporting inspection tools and molds, to Panasonic Wanbao Compressor. This transactionconstitutes a related party transaction, as detailed in the Company's disclosure of the "Announcement on RelatedParty Transactions of the Company's Subsidiaries Selling Machinery Equipment and Inspection Tools and Molds"(2024-003).
XVII. Major contract and its performance
1. Hosting, contracting and leasing status
(1) the hosting status
□ Applicable √ Not applicable
(2)the contracting status
□ Applicable √ Not applicable
(3) the leasing status
√ Applicable □ Not applicable
The 13th meeting of the 7th board of directors of the Company was held on April 22, 2017, and approved to rentout the old plant and land located in No 888, South West RD, Shahekou Districit, Dalian to Bingshan Wisdom.The lease contract is from April 1, 2017 to December 31, 2036. The Company has signed the “estate leasingcontract” with Dalian Bingshan Wisdom based on the requirement of utilization of old land and plant and newbusiness foster plan. Current year’s lease premium is RMB 9.01 million.On July 31, 2014, the Company and Lingzhong Bingshan Refrigeration (Dalian) Co., Ltd. signed a supplementaryagreement to modify the house lease contract, and rent out the Building No. 6 of Workshop No. 106, Liaohe EastRoad, Dalian Development Zone, to Lingzhong Bingshan Refrigeration (Dalian) Co., Ltd.. The rental area is15,259.04 square meters, and lease period will end on July 16, 2029, the annual rent is RMB 3.81 million.
2. Guaranteeing status
√Applicable □ Not applicable
China Development Fund provides support for the Company's cold chain green intelligent equipment and serviceindustrialization base project, and provides special funds to the controlling shareholder of the Company, BingshanGroup. The above-mentioned special fund amount is 160 million yuan, with a term of 10 years and a rate of 1.2%.After the above special funds are in place, Bingshan Group has fully allocated them to the Company in a one-timemanner without increasing the rate. The implementation of the above-mentioned special funds requires theCompany to provide guarantees and continue until the reporting period. This guarantee is in the form of aguarantee for the controlling shareholder, but in fact, it is a guarantee for the Company to obtain financial supportfor itself.The Company provides guarantees for clients Guizhou Waterfall Cold Chain Food Investment Co., Ltd., LiuyangZhongjie Technology Investment Co., Ltd., Shandong Jiechuang Energy Technology Co., Ltd., Shaanxi YimingFood Co., Ltd., and Jilin Fuyu Agricultural Technology Co., Ltd. based on financing leasing business, which willcontinue until the reporting period. In the normal performance of the above-mentioned project, the guaranteedshareholder and relevant natural persons provided the company with full joint and several liability guarantee andcounter guarantee, and the overall guarantee risk of the Company is controllable.
3. Entrust others to cash assets management
(1)Trust management
□Applicable √Not applicable
(2)Entrusted loans
□Applicable √Not applicable
(3)Other important contracts
□ Applicable √ Not applicable
XIX. Other important matters
□ Applicable √ Not applicable
XX. Other important matters of subsidiary company
□ Applicable √ Not applicable
Section 7 Change in Share Capital and Shareholders' Information
I. Change in share capital
1. Change in share capital
| items | Shares （before change） | Shares （after change） | ||
| number | proportion | number | proportion | |
| I. Non-circulating share capital with restricted trade conditions | 1,670,894 | 0.20% | 1,673,812 | 0.20% |
| II. Circulating share capital | 841,541,613 | 99.80% | 841,538,695 | 99.80% |
| 1. Domestically listed ordinary shares | 600,041,613 | 71.16% | 600,038,695 | 71.16% |
| 2. Domestically listed foreign shares | 241,500,000 | 29.64% | 241,500,000 | 29.64% |
| III. Total shares | 843,212,507 | 100.00% | 843,212,507 | 100.00% |
Approval of changes in shares
□ Applicable √Not applicable
The restricted shares changes
□ Applicable √Not applicable
II. Securities issuance and listing
1. Securities issuance in the report period
□ Applicable √ Not applicable
2. Change in total shares of the Company and structure of shareholders
□ Applicable √ Not applicable
3. Internal staff shares
□ Applicable √ Not applicable
III. Shareholders and actual controller
1. Number of shareholders and their shareholding
| Total number of shareholders in the reporting period | 71,366 | Total number of shareholders as of the last month before disclosure of the annual report | 68,984 | |||||
| Shareholding of top ten shareholders | ||||||||
| Name | Nature | Proportion | Total number | Number of shares with sale restriction | Number of pledged shares or shares frozen | |||
| Dalian Bingshan Group Co., Ltd. | Domestic non-state-owned legal person | 20.27% | 170,916,934 | 0 | 0 | |||
| Sanyo Electric Co., Ltd. | Overseas legal person | 8.72% | 73,503,150 | 0 | 0 | |||
| Xu Yayun | Domestic natural person | 1.89% | 15,909,891 | |||||
| Xu Hongliang | Domestic natural person | 0.92% | 7,776,761 | |||||
| Lin Zhenming | Domestic natural person | 0.80% | 6,710,000 | |||||
| Cao Yifan | Domestic natural person | 0.76% | 6,410,000 | |||||
| Xue Hong | Domestic natural person | 0.43% | 3,660,000 | |||||
| Li Xiaohua | Domestic natural person | 0.38% | 3,220,408 | |||||
| Shi Jiangen | Domestic natural person | 0.38% | 3,219,690 | |||||
| Chen Yong | Domestic natural person | 0.32% | 2,700,000 | ||||
| Shareholding of top ten shareholders without sale restriction | |||||||
| Name | Number of shares without sale restriction | Type of shares | |||||
| Dalian Bingshan Group Co., Ltd. | 170,916,934 | RMB denominated ordinary shares | |||||
| Sanyo Electric Co., Ltd. | 73,503,150 | Domestically listed foreign shares | |||||
| Xu Yayun | 15,909,891 | RMB denominated ordinary shares | |||||
| Xu Hongliang | 7,776,761 | RMB denominated ordinary shares | |||||
| Lin Zhenming | 6,710,000 | Domestically listed foreign shares | |||||
| Cao Yifan | 6,410,000 | Domestically listed foreign shares | |||||
| Xue Hong | 3,660,000 | Domestically listed foreign shares | |||||
| Li Xiaohua | 3,220,408 | RMB denominated ordinary shares | |||||
| Shi Jiangen | 3,219,690 | RMB denominated ordinary shares | |||||
| Chen Yong | 2,700,000 | RMB denominated ordinary shares | |||||
| Notes to the associated relationship and uniform actions of the above shareholders | Dalian Bingshan Group Co., Ltd. had the association relationship with Sanyo Electric Co., Ltd. among the above shareholders. Sanyo Electric Co., Ltd. holds 26.6% of Dalian Bingshan Group Co., Ltd.'s equity. | ||||||
| Explanation on the participation of the top 10 ordinary shareholders in margin trading and securities lending business | None | ||||||
2. Controlling shareholder of the Company
| Name of holding shareholder | Legal representative | Founding date | Unified social credit code | Main business |
| Dalian Bingshan Group Co., Ltd. | Ji Zhijian | Jul. 3, 1985 | 912102002412917931 | Research, development, manufacture, sales, service and installation of industrial refrigeration products, freezing and cold storage products, large-, medium- and small-size air-conditioning products, petrochemical equipment products, electronic and electric control products, home appliance products and environment protection products. |
| Shares held by the holding shareholder in other overseas and domestic listed companies as the holding shareholder or ordinary shareholder in the reporting period | None | |||
Change in the holding shareholder in the reporting period
□ Applicable √ Not applicable
3. Actual controller of the Company
The company has no actual controller.According to the actual situation of the Company and its controlling shareholder, and compared with the relatedlaws and regulations including Company Law of People’s Republic of China, Management Regulation on Listing
Company Acquisition and Stock Listing Rules of Shenzhen Stock Exchange, with the confirmation of LiaoningHuaxia law firm, the Company released the Public Notice on Not Having Actual Controller.(No: 2015-025),)which was published on B04 of China Securities, A19 of HK Commercial Daily and Cninfo website on April 242015.
100% 100%
24.97% 8.28% 13.3% 20.2% 26.6% 6.65%
20.27%
The actual controller controlled the Company through a trust or other asset management
□ Applicable √ Not applicable
4. Other legal-person shareholders holding of 10% or more shares
□ Applicable √ Not applicable
5.、controlling shareholders, actual controllers, restructuring the constraint to the stake and othercommitments underweight
□ Applicable √ Not applicable
| State-owned Assets Supervision and Administration Commission ofDalian Municipality Government | Dalian Equipment Manufacture Investment Co., Ltd. | Dalian State-owned Assets Management Co., Ltd. | Dayang Co., Ltd. | Dalan Zhonghuida Refrigeration Technology Co., Ltd. | Sanyo Electric Co., Ltd. | Panasonic Corporation of China |
Dalian Bingshan Group Co., Ltd.
Dalian Bingshan Group Co., Ltd.Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Section 8 Information on Preferred Stock
□ Applicable √ Not applicable
In the reporting period, the Company didn’t own preferred stock.
Section 9 Information on Corporate bonds
□ Applicable √ Not applicable
In the reporting period, the Company didn’t own corporate bonds.
Section 10 Financial ReportTo the shareholders of Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd
1. Opinion
We have audited the accompanying financial statements of Bingshan Refrigeration & Heat TransferTechnologies Co., Ltd (“Bingshan Refrigeration & Heat Company”), which comprise the consolidatedand company’s balance sheets as at 31 December 2024, and the consolidated and company’s incomestatements, the consolidated and company’s cash flow statements, the consolidated and company’sstatements of changes in equity for the year then ended, and notes to these financial statements.In our opinion, the accompanying financial statements have been prepared in accordance with therequirements of Accounting Standards for Business Enterprises, in all material respects and present fairlythe consolidated and the financial position of Bingshan Refrigeration & Heat Company as at 31December 2024, and of their consolidated and the company’s financial performance and cash flows forthe year then ended.
2. Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing for Chinese Certified PublicAccountants. Our responsibilities under those standards are further described in the “Auditor’sResponsibilities for the Audit of the Financial Statements” section of our report. We are independent ofBingshan Refrigeration & Heat Company in accordance with the Code of Ethics for Chinese CertifiedPublic Accountants, and we have fulfilled our other ethical responsibilities of the code. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit.
3. Key Audit Matters
Key audit matters are those matters that we consider, in our professional judgment, were of mostsignificance in our audit of the financial statements of the current period. These matters were addressedin the context of our audit of the financial statements as a whole and, in forming our audit opinionthereon, and we do not express a separate opinion on these matters.
| Revenue Recognition | |
| Key Audit Matter | How the matter was addressed in the audit |
| As stated in the Note ‘ No.44,V. Notes to Consolidated Financial Statements’, revenue on the consolidated statements for the year ended as of December 31, 2024, is 4,531.1472 million Yuan. Revenue of Bingshan Refrigeration & Heat | The main audit procedures carried out for addressing the key audit matters are as follows: 1. Understand and evaluate effectiveness of design and operation of the management’s internal control over revenue 2. Carried out analytical review and evaluate the reasonableness of sales income and gross profit margin by segmenting the business and sales in conjunction with industry development and actual situation of Bingshan Refrigeration & Heat Company. |
| Company and its subsidiaries mainly come from sales of products and installation project. We consider the revenue as the key audit matter, because of the significance of revenue to the overall financial statements, and also the inherent risk of revenue manipulation by the management so for the special purpose. | 3. Sampling test the sales contracts, identify the clause and condition in respect to the contract performance obligation, consideration and risk and reward transfer of the ownership. Evaluate the revenue recognition of Bingshan Refrigeration & Heat Company whether it is in line with the accounting standards. 4. Sampling select product sales revenue record, reconcile to sales invoice, contracts, dispatch note, acceptance note; Sampling select installation sales revenue record, reconcile to invoice, installation contracts and completion report and Evaluate the recognition of revenue whether is in line with the accounting standards 5. Checking actual installation cost by reviewing the contract budget, contract, invoice and supportive document with signature for the equipment received to evaluate the cost whether it really incurred. 6. Combined with receivable audit, perform confirmation procedures for key clients 7. Perform cut-off test so to ensure whether the transaction is recorded into the appropriate accounting period. |
4. Other Information
The management of Bingshan Refrigeration & Heat Company (hereinafter referred to as the“Management”) is responsible for the other information. The other information comprises theinformation included in the Bingshan Refrigeration & Heat Company 2024 annual report, but does notinclude the financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the other informationand, in doing so, consider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materially misstated.If, based on the work we have performed, we conclude that there is a material misstatement of the otherinformation, we are required to report that fact. We have nothing to report in this regard.
5. Responsibilities of the Management and Those Charged with Governance for the FinancialStatements
The Management is responsible for the preparation of the financial statements in accordance with
Accounting Standards for Business Enterprises to achieve fair presentation; and designing, implementing
and maintaining internal control which is necessary to enable that the financial statements are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Management is responsible for assessing Bingshan
Refrigeration & Heat Company’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the Management eitherintends to liquidate Bingshan Refrigeration & Heat Company or to cease operations, or have no realisticalternative but to do so.Those charged with governance are responsible to overseeing Bingshan Refrigeration & Heat Company’sfinancial reporting process.
6. Auditor’s Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with auditing standards will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are generally considered material if, individuallyor in the aggregate, they could reasonably be expected to influence the economic decisions of users takenon the basis of these financial statements.During the course of audit in accordance with auditing standards, we exercise professional judgment andmaintain professional skepticism. We also carry out the following works:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidencethat is sufficient and appropriate to provide a basis for our audit. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error, as fraud may involvecollusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of its internal control (this sentence would be deleted in circumstance when we are alsoresponsible to issue an opinion on the effectiveness of internal control in conjunction with the audit of thefinancial statements).
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the Management.
(4) Conclude on the appropriateness of the Management’s use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on Bingshan Refrigeration & Heat Company’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are required to drawattention in our auditor’s report to the related disclosures in the financial statements in accordance withthe auditing standards or, if such disclosures are inadequate, we shall modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,future events or conditions may cause Bingshan Refrigeration & Heat Company to cease to continue as agoing concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and alsowhether the financial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
(6) Obtain sufficient and appropriate audit evidence with respect to the financial information ofBingshan Refrigeration & Heat entities or business activities, and issue an audit opinion. We areresponsible for guiding, supervising and performing group audits and take full responsibility for auditopinions.We communicate with those charged with governance regarding, among other matters, the planned scopeand timing of the audit and significant audit findings etc., including any significant deficiencies ininternal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with thoserelevant ethical requirements regarding independence, and to communicate with them all relationshipsand other matters that may reasonably be thought to bear on our independence and related safeguards,where applicable.From the matters communicated with those charged with governance, we determine those matters thatwere of most significance in the audit of the financial statements of the current period and are thereforethe key audit matters. We describe these matters in our auditor’s report unless law or regulationprohibited public disclosure about the matter or when, in rare circumstances, we determine that a mattershould not be communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.
| ShineWing Certified Public Accountants( LLP) | CPA： Sui Guojun (Engagement Partner) | |
| CPA： Zhang Shizhuo | ||
| China, Beijing | April 22, 2025 |
Consolidated Balance SheetName of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd Amount Unit:RMB
| ITEMS | 31 December 2024 | 01 January 2024 |
| Current Assets: | ||
| Monetary funds | 1,042,143,744.67 | 951,039,570.11 |
| Settlement provision | ||
| Loans to banks and other financial institutions | ||
| Financial asset held for trading | ||
| Derivative financial assets | ||
| Notes receivable | 352,854,863.48 | 353,428,922.42 |
| Accounts receivable | 1,492,234,348.90 | 1,576,433,924.16 |
| Receivable financing | 382,073,283.27 | 303,585,218.53 |
| Prepayments | 164,042,640.06 | 153,388,660.48 |
| Insurance receivables | ||
| Reinsurance Receivable | ||
| ProVsion of reinsurance contract reserve receivable | ||
| Other receivables | 45,759,566.06 | 41,396,223.27 |
| including: interest receivable | ||
| diVdend receivable | 11,150.00 | 14,495.00 |
| Financial assets purchased under agreement to resell | ||
| Inventories | 1,393,653,788.81 | 1,638,139,479.14 |
| Contractual asset | 184,760,940.32 | 237,076,878.71 |
| Held for sale assets | ||
| Non-current assets due within 1-year | 57,550.43 | |
| Other current assets | 27,636,378.46 | 26,074,342.33 |
| Total Current Assets | 5,085,217,104.46 | 5,280,563,219.15 |
| Non-Current Assets： | ||
| Loan and payment on other's behalf disbursed | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | 140,017.84 | |
| Long-term equity investment | 481,973,415.36 | 521,274,947.50 |
| Other equity instrument investment | ||
| Other non-current financial assets | 1,683,852.59 | 164,024,771.63 |
| Investments properties | 117,931,720.24 | 123,589,681.50 |
| Fixed assets | 1,211,794,069.63 | 1,291,851,402.46 |
| Construction in process | 86,221,660.80 | 114,801,351.21 |
| Production biological assets | ||
| Oil-gas assets | ||
| Right-of-use assets | 23,318,732.46 | 30,548,057.08 |
| Intangible assets | 203,999,076.19 | 210,554,161.22 |
| Development cost | ||
| Goodwill | 286,402,171.93 | 286,402,171.93 |
| Long-term prepaid expense | 5,719,603.26 | 5,346,321.60 |
| Deferred tax asset | 103,752,827.71 | 113,648,859.53 |
| Other non-current assets | 20,161,234.88 | 20,243,349.44 |
| Total Non-current Assets | 2,543,098,382.89 | 2,882,285,075.10 |
| Total Assets | 7,628,315,487.35 | 8,162,848,294.25 |
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiuthe person in charge of the accounting office:Wu Bin
Consolidated Balance Sheet (continued)
Name of Enterprise：
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd Amount Unit:RMB
| ITEMS | 31 December 2024 | 01 January 2024 |
| Current Liabilities: | ||
| Short-term borrowings | 167,283,407.26 | 262,287,784.38 |
| Loans from central bank | ||
| Loans from other banks | ||
| Financial liability held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | 569,117,426.19 | 670,720,999.48 |
| Accounts payable | 1,601,381,790.80 | 1,655,835,363.01 |
| Advance received | ||
| Contractual liability | 645,711,808.53 | 787,685,294.53 |
| Financial assets sold under agreements to repurchase | ||
| Deposits received and hold for others | ||
| Entrusted trading of securities | ||
| Entrusted underwriting of securities | ||
| Employee pay payables | 146,734,696.02 | 149,497,113.46 |
| Taxes and duties payable | 30,276,580.76 | 22,216,492.26 |
| Other payables | 227,361,207.96 | 278,804,152.17 |
| including: interest payable | ||
| dividend payable | 533,156.00 | 533,156.00 |
| Fees and commissions payable | ||
| Amount due to reinsurance | ||
| Held for sale liabilities | ||
| Non-current liabilities due within 1-year | 161,421,072.72 | 150,645,347.64 |
| Other current liabilities | 191,009,526.67 | 203,315,864.43 |
| Total Current Liabilities | 3,740,297,516.91 | 4,181,008,411.36 |
| Non-current Liabilities: | ||
| Insurance contract provision | ||
| Long-term borrowings | 547,346,541.25 | 679,700,000.00 |
| Bonds Payable | ||
| including: preference share | ||
| perpetual debt | ||
| Lease liability | 19,071,845.78 | 24,134,986.97 |
| Long-term payables | 12,451,396.59 | 10,331,937.30 |
| Long-term employee payables | ||
| Provision | 2,703,369.53 | 4,544,802.88 |
| Deferred income | 90,733,480.29 | 98,274,267.80 |
| Deferred Tax liabilities | 26,601,881.56 | 60,811,462.07 |
| Other non-current liabilities | ||
| Total Non-current Liabilities | 698,908,515.00 | 877,797,457.02 |
| Total Liabilities | 4,439,206,031.91 | 5,058,805,868.38 |
| Owners Equity(or Shareholders Equity): | ||
| Paid-in capital（Share capital) | 843,212,507.00 | 843,212,507.00 |
| Other equity instrument | ||
| Including:preference share | ||
| perpetual capital securities | ||
| Capital reserve | 717,097,098.38 | 717,097,098.38 |
| Less: Treasury stock | ||
| Other comprehensive income | 2,208,669.73 | 2,208,669.73 |
| Chartered reserve | - | 449,374.96 |
| Surplus reserves | 895,618,513.69 | 867,159,439.34 |
| △Provision for general risk | ||
| Undistributed profit | 673,966,177.84 | 617,386,488.34 |
| Equity attributable to equity holders of the Company | 3,132,102,966.64 | 3,047,513,577.75 |
| *Minority interest | 57,006,488.80 | 56,528,848.12 |
| Total Equity | 3,189,109,455.44 | 3,104,042,425.87 |
| Total Liabilities and Equity | 7,628,315,487.35 | 8,162,848,294.25 |
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiuthe person in charge of the accounting office:Wu Bin
Balance Sheet of Parent Company
Name of Enterprise：
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd Amount Unit:RMB
| ITEMS | 31 December 2024 | 01 January 2024 |
| Current Assets: | ||
| Monetary funds | 256,913,490.58 | 177,430,880.63 |
| Tradable financial asset | ||
| Derivative financial assets | ||
| Notes receivable | 72,589,334.53 | 64,984,113.98 |
| Accounts receivable | 466,964,861.72 | 612,933,182.91 |
| Receivable financing | 4,679,597.82 | 13,562,917.97 |
| Prepayments | 85,421,842.41 | 62,988,427.81 |
| Other receivables | 128,957,016.22 | 138,883,665.74 |
| including: interest receivable | ||
| dividend receivable | 100,000,000.00 | 110,000,000.00 |
| Inventories | 325,468,330.52 | 394,763,078.40 |
| Contractual assets | 73,359,376.07 | 106,401,142.42 |
| Held for sale assets | ||
| Non-current assets due within 1-year | ||
| Other current assets | 9,963,685.06 | 3,046,484.01 |
| Total Current Assets | 1,424,317,534.93 | 1,574,993,893.87 |
| Non-Current Assets： | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investment | 2,906,530,622.51 | 2,930,381,144.87 |
| Other equity instrument investment | ||
| Other non-current financial assets | 368,710.09 | 162,709,629.13 |
| Investments properties | 81,939,998.15 | 86,587,170.43 |
| Fixed assets | 591,199,135.48 | 632,491,373.17 |
| Construction in process | 27,671,778.14 | 42,867,809.00 |
| Production biological assets |
| Oil-gas assets | ||
| Right-of-use assets | 10,576,907.44 | 13,360,039.29 |
| Intangible assets | 66,109,306.96 | 68,437,853.58 |
| Development cost | ||
| Goodwill | ||
| Long-term unamortized expense | 3,315,026.79 | 4,434,379.95 |
| Deferred tax asset | 33,187,901.79 | 27,809,290.39 |
| Other non-current assets | ||
| Total Non-current Assets | 3,720,899,387.35 | 3,969,078,689.81 |
| Total Assets | 5,145,216,922.28 | 5,544,072,583.68 |
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiuthe person in charge of the accounting office:Wu Bin
Balance Sheet of Parent Company (continued)
Name of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd Amount Unit:RMB
| ITEMS | 31 December 2024 | 01 January 2024 |
| Current Liabilities: | ||
| Short-term borrowings | 120,327,137.01 | 219,000,000.00 |
| Financial liability held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | 108,226,992.06 | 172,920,936.32 |
| Accounts payable | 351,385,116.46 | 418,383,161.14 |
| Advance received | ||
| Contractual liability | 104,206,582.50 | 108,021,877.17 |
| Employee pay payables | 11,354,626.22 | 12,109,637.82 |
| Taxes and duties payable | 12,135,282.22 | 3,523,630.66 |
| Other payables | 109,923,634.05 | 174,010,076.60 |
| including: interest payable | ||
| dividend payable | 533,156.00 | 533,156.00 |
| Held for sale liabilities | ||
| Non-current liabilities due within 1-year | 140,940,549.56 | 134,539,973.21 |
| Other current liabilities | 73,756,610.21 | 69,349,185.65 |
| Total Current Liabilities | 1,032,256,530.29 | 1,311,858,478.57 |
| Non-current Liabilities: | ||
| Long-term borrowings | 541,046,541.25 | 679,700,000.00 |
| Bonds Payable | ||
| including: preference share | ||
| perpetual debt | ||
| Lease liability | 8,626,368.06 | 10,878,947.77 |
| Long-term payables | ||
| Long-term employee payables | ||
| Provision for liabilities | ||
| Deferred income | 54,972,980.29 | 61,369,767.80 |
| Deferred Tax liabilities | - | 22,714,636.67 |
| Other non-current liabilities | ||
| Total Non-current Liabilities | 604,645,889.60 | 774,663,352.24 |
| Total Liabilities | 1,636,902,419.89 | 2,086,521,830.81 |
| Owners Equity(or Shareholders Equity): | ||
| Paid-in capital（Share capital) | 843,212,507.00 | 843,212,507.00 |
| Other equity instrument |
| Including:preference share | ||
| perpetual capital securities | ||
| Capital reserve | 755,146,592.54 | 755,146,592.54 |
| Less: Treasury stock | ||
| Other comprehensive income | 1,246,569.06 | 1,246,569.06 |
| Chartered reserve | ||
| Surplus reserves | 895,618,513.69 | 867,159,439.34 |
| Undistributed profit | 1,013,090,320.10 | 990,785,644.93 |
| Total Equity | 3,508,314,502.39 | 3,457,550,752.87 |
| Total Liabilities and Equity | 5,145,216,922.28 | 5,544,072,583.68 |
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiuthe person in charge of the accounting office:Wu Bin
Consolidated Income StatementName of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd Amount Unit:RMB
| Item | Current year | Last year |
| Ⅰ、Total operating revenue | 4,531,147,208.98 | 4,815,941,467.70 |
| Including: Operating revenue | 4,531,147,208.98 | 4,815,941,467.70 |
| Interest income | ||
| Earned premiums | ||
| Fees and commission income | ||
| Ⅱ、Total cost of operation | 4,503,075,182.20 | 4,718,340,202.43 |
| Including: Cost of operation | 3,763,808,216.19 | 4,005,597,458.19 |
| Interest expenses | ||
| Fees and commission expenses | ||
| Payments to surrenders of insurance contracts | ||
| Net amount of insurance claims expenses | ||
| Net charges of provision for insurance contracts | ||
| Dividends policy expenses | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 34,663,849.86 | 33,968,677.08 |
| Selling and distribution expenses | 240,710,529.95 | 233,862,026.48 |
| Administrative expenses | 285,364,414.70 | 250,568,245.50 |
| R&D | 155,526,315.57 | 164,185,717.71 |
| Financial expenses | 23,001,855.93 | 30,158,077.47 |
| Including: Interest expenses | 33,022,192.73 | 37,918,133.57 |
| Interest income | 9,280,290.94 | 10,558,433.14 |
| add: other income | 37,818,319.73 | 30,179,668.51 |
| investment income (Loss listed with "-") | 70,351,715.21 | 1,106,628.72 |
| Including: income from investments in associates and joint ventures | 30,246,020.75 | -4,884,731.99 |
| Gain arising from derecognition of financial asset measured at amortized cost | ||
| Exchange gain (Loss listed with "-") | ||
| Gain on hedging of net exposure (Loss listed with "-") | ||
| Gain on FV change (Loss listed with "-") | 27,205,532.40 | 14,073,910.32 |
| Loss on impairment of credit(Loss listed with "-") | -17,220,602.29 | -69,732,055.75 |
| Loss on impairment of assets(Loss listed with "-") | -27,575,460.64 | -14,405,692.66 |
| Gain on asset disposal(Loss listed with "-") | 5,010,221.27 | -1,184,930.14 |
| Ⅲ、Operating profit (Loss listed with "-") | 123,661,752.46 | 57,638,794.27 |
| Add: Non-operating income | 11,482,254.04 | 14,533,922.09 |
| Less: Non-operating expenses | 9,500,703.48 | 6,966,477.53 |
| Ⅳ、 Total profit (Loss listed with "-") | 125,643,303.02 | 65,206,238.83 |
| Less: Income tax expenses | 11,961,323.25 | 11,031,699.08 |
| Ⅴ、Net profit (Net loss listed with "-") | 113,681,979.77 | 54,174,539.75 |
| (I) Classification by continuity | 113,681,979.77 | 54,174,539.75 |
| 1、Net profit from continuing operation | 113,681,979.77 | 54,174,539.75 |
| 2、Net profit from discontinuing operation | ||
| (II) Classification by ownership | 113,681,979.77 | 54,174,539.75 |
| 1、Net profit attributable to equity holders(shareholders) of the Company | 110,335,139.06 | 49,375,900.83 |
| 2、Minority interest | 3,346,840.71 | 4,798,638.92 |
| Ⅵ、 Other comprehensive income net off tax | - | - |
| Net other comprehensive income net off tax attributable to equity holders(shareholders) of the parent company | - | - |
| (Ⅰ)Items that may not be reclassified subsequently to the income statement | - | - |
| 1.Change in net asset/liability from remeasurment on defined benefit plan | ||
| 2.Under equity method, proportionate share of other comprehensive income in invested company that may not be reclassified subsequently to the income statement | ||
| 3.FV change of other equity instrument investment | ||
| 4.FV change of own credit risk | ||
| 5.Others | ||
| (Ⅱ)Items that may be reclassified subsequently to the income statement | - | - |
| 1.Under equity method, proportionate share of other comprehensive income invested company that may be reclassified subsequently to the income statement | ||
| 2.FV change of other debt instrument investment | ||
| 3.Financial assets reclassfied into other comprehensive income | ||
| 4.Credit impairment provision of other debt investment | ||
| 5.Cash flow hedges effective portion | ||
| 6.Foreign currency translation difference | ||
| 7.Others | ||
| Net other comprehensive income net off tax attributable to Minority interest | ||
| Ⅶ、Total comprehensive income | 113,681,979.77 | 54,174,539.75 |
| Total comprehensive income attributable to parent Company | 110,335,139.06 | 49,375,900.83 |
| Total comprehensive income attributable to minority interest | 3,346,840.71 | 4,798,638.92 |
| Ⅷ、 Earnings per share | ||
| (Ⅰ)Basic earnings per share | 0.13 | 0.06 |
| (Ⅱ)Diluted earnings per share | 0.13 | 0.06 |
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiuthe person in charge of the accounting office:Wu Bin
Income Statement of Parent Company
Name of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co., LtAmount Unit:RMB
| Item | Current year | Last year |
| Ⅰ、Operating revenue | 696,459,652.07 | 1,147,567,097.70 |
| Less: Cost of operation | 604,399,184.03 | 949,400,269.07 |
| Taxes and surcharges | 11,978,974.98 | 12,915,605.84 |
| Selling and distribution expenses | 51,122,858.42 | 58,418,856.46 |
| Administrative expenses | 90,534,796.55 | 83,623,829.67 |
| R&D | 21,804,970.80 | 34,643,670.44 |
| Financial expenses | 27,283,214.03 | 30,961,451.10 |
| Including: Interest expenses | 26,750,004.75 | 30,060,509.49 |
| Interest income | 609,808.44 | 928,862.25 |
| Add: Other income | 12,306,792.38 | 13,476,491.91 |
| Investment income (Loss listed with "-") | 174,148,036.93 | 137,165,248.86 |
| Including: income from investments in associates and joint ventures | 29,697,030.53 | -5,506,787.08 |
| Gain arising from derecognition of financial asset measured at amortized cost | ||
| Gain on hedging of net exposure (Loss listed with "-") | ||
| Gain on FV change (Loss listed with "-") | 27,205,532.40 | 14,073,910.32 |
| Loss on impairment of credit(Loss listed with "-") | -22,722,877.37 | -26,975,462.06 |
| Loss on impairment of assets(Loss listed with "-") | -19,598,707.34 | -15,398,757.36 |
| Gain on asset disposal(Loss listed with "-") | -1,269,088.31 | 25,669.74 |
| Ⅱ、Operating profit (Loss listed with "-") | 59,405,341.95 | 99,970,516.53 |
| Add: Non-operating income | 269,878.27 | - |
| Less: Non-operating expenses | 1,128,310.68 | 451,394.65 |
| Ⅲ、 Total profit (Loss listed with "-") | 58,546,909.54 | 99,519,121.88 |
| Less: Income tax expenses | -17,513,215.19 | -4,746,187.51 |
| Ⅳ、Net profit (Net loss listed with "-") | 76,060,124.73 | 104,265,309.39 |
| 1、Net profit from continuing operation | 76,060,124.73 | 104,265,309.39 |
| 2、Net profit from discontinuing operation | ||
| Ⅴ、 Other comprehensive income net off tax | - | - |
| (Ⅰ)Items that may not be reclassified subsequently to the income statement | - | - |
| 1.Change in net asset/liability from remeasurment on defined benefit plan | ||
| 2.Under equity method, proportionate share of other comprehensive income in invested company that may not be reclassified subsequently to the income statement | ||
| 3.FV change of other equity instrument investment | ||
| 4.FV change of own credit risk | ||
| 5.Others | ||
| (Ⅱ)Items that may be reclassified subsequently to the income statement | - | - |
| 1.Under equity method, proportionate share of other comprehensive income invested company that may be reclassified subsequently to the income statement | ||
| 2.FV change of other debt instrument investment | ||
| 3.Financial assets reclassfied into other comprehensive income | ||
| 4.Credit impairment provision of other debt investment | ||
| 5.Cash flow hedges effective portion | ||
| 6.Foreign currency translation difference | ||
| 7.Others | ||
| Ⅵ、Total comprehensive income | 76,060,124.73 | 104,265,309.39 |
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiu the person in charge of the accounting office:Wu Bin
Consolidated Cash Flow Statement
Name of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co., LtAmount Unit:RMB
| Item | Current year | Last year |
| 1. Cash flows from operating activities: | ||
| Cash received from sales of goods and rendering of services | 4,132,863,246.10 | 4,113,893,219.72 |
| Net increase in deposits from customers and inter-banks deposits | ||
| Net increase in loans from central bank | ||
| Net increase in loans from other financial institutions | ||
| Cash receipts of premium of direct insurance contracts | ||
| Net cash received from reinsurance contracts | ||
| Net increase in deposits from insurance policy holders and investment | ||
| Cash receipts of interest, fees and commission | ||
| Net increase in placement from banks and other financial institution | ||
| Net increase in sales and repurchase operations | ||
| Entrusted trading of securities | ||
| Cash received from taxes refund | 25,456,160.07 | 28,408,313.78 |
| Cash received relating to other operating activities | 124,986,561.38 | 126,828,658.19 |
| Sub-total of cash inflows from operating activities | 4,283,305,967.55 | 4,269,130,191.69 |
| Cash paid for goods and services | 2,877,529,073.45 | 3,076,384,953.42 |
| Net increase in loans and disbursement to customers | ||
| Net increase in deposit with central bank and inter-banks | ||
| Cash paid for claims of direct insurance contracts | ||
| Net increase of loans to other banks | ||
| Cash paid for interest, fee and commission | ||
| Cash paid for dividends of insurance policies | ||
| Cash paid to and on behalf of employees | 756,915,550.24 | 735,972,826.45 |
| Payments of taxes and surcharges | 176,680,947.47 | 190,790,155.61 |
| Cash paid relating to other operating activities | 235,026,121.95 | 290,422,923.95 |
| Sub-total of cash outflows from operating activities | 4,046,151,693.11 | 4,293,570,859.43 |
| Net cash flows from operating activities | 237,154,274.44 | -24,440,667.74 |
| 2. Cash flows from investment activities: | ||
| Cash received from return of investments | 45,841,618.00 | - |
| Cash received from investments income | 252,459,403.89 | 44,342,521.09 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 32,620,564.76 | 1,668,006.05 |
| Net cash received from disposal of subsidiaries and other business units | ||
| Cash received relating to other investing activities | 268,000,000.00 | |
| Sub-total of cash inflows from investing activities | 598,921,586.65 | 46,010,527.14 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 78,719,169.31 | 89,321,945.50 |
| Cash paid for investments |
| Net increase in pledged deposits | ||
| Net cash paid to acquire subsidiaries and other business units | - | 12,056,951.02 |
| Cash paid relating to other investing activities | 150,000,000.00 | 168,000,000.00 |
| Sub-total of cash outflow from investing activities | 228,719,169.31 | 269,378,896.52 |
| Net cash flows from investing activities | 370,202,417.34 | -223,368,369.38 |
| 3. Cash flows from financing activities | ||
| Cash received from investment absorption | ||
| Including: Cash received by subsidiaries from investment absorpotion of non-controlling interest | ||
| Cash received from loans granted | 320,155,297.55 | 385,643,636.90 |
| Cash received relating to other financing activities | 25,044,611.52 | 65,675,932.80 |
| Sub-total of cash inflows from financing activities | 345,199,909.07 | 451,319,569.70 |
| Cash paid for settlement of borrowings | 527,254,659.28 | 341,900,000.00 |
| Cash paid for dividends, profits appropriation or payments of interest | 57,066,184.92 | 41,772,038.58 |
| Including: Dividens and profits paid to non-controlling interest | ||
| Cash paid relating to other financing activities | 90,702,937.55 | 70,690,408.48 |
| Sub-total of cash outflows from financing activities | 675,023,781.75 | 454,362,447.06 |
| Net cash flows from financing activities | -329,823,872.68 | -3,042,877.36 |
| 4. Effect of changes in foreign exchange rate on cash and cash equivalents | 3,606,528.52 | -369,552.71 |
| 5. Net increase in cash and cash equivalents | 281,139,347.62 | -251,221,467.19 |
| Add: Cash and cash equivalents at beginning of year | 670,440,335.98 | 921,661,803.17 |
| 6. Cash and cash equivalents at end of year | 951,579,683.60 | 670,440,335.98 |
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiuthe person in charge of the accounting office:Wu Bin
Cash Flow Statement of Parent CompanyName of Enterprise： Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd Amount Unit :RMB
| Item | Current year | Last year |
| 1.Cash flow from operating activities | ||
| Cash receipts from sale of goods or rendering of services | 848,888,657.18 | 1,051,980,732.24 |
| Refunds of taxes | - | - |
| Other cash receipts in operating activities | 34,563,283.45 | 41,293,162.40 |
| Sub-total of cash inflows from operating activities | 883,451,940.63 | 1,093,273,894.64 |
| Cash payments for goods and services acquired | 713,836,118.74 | 838,210,003.11 |
| Cash payments to and on behalf of employees | 111,473,766.42 | 117,935,562.40 |
| Tax and duties payments | 32,861,684.04 | 47,714,652.88 |
| Other cash payments for operating activities | 53,929,712.27 | 61,625,120.00 |
| Sub-total of cash outflows from operating activities | 912,101,281.47 | 1,065,485,338.39 |
| Net cash flows from operating activities | -28,649,340.84 | 27,788,556.25 |
| 2.Cash flows from investing activities | ||
| Cash receipts from return of investments | 45,841,618.00 | |
| Cash receipts from investments income | 368,507,803.12 | 71,227,317.94 |
| Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets | 611,082.50 | 33,000.00 |
| Net cash receipts from disposal of subsidiaries and other businesses | ||
| Other cash receipts in investing activities | ||
| Sub-total of cash inflows from investing activities | 414,960,503.62 | 71,260,317.94 |
| Cash payments for acquired fixed assets, intangible assets and other long-term assets | 4,821,677.10 | 15,937,868.92 |
| Cash payments for investment | 16,000,000.00 | 253,285,500.00 |
| Net cash payments for acquisition of subsidiaries and other businesses | ||
| Other cash payments in investing activities | ||
| Sub-total of cash outflows from investing activities | 20,821,677.10 | 269,223,368.92 |
| Net cash flows from investment activities | 394,138,826.52 | -197,963,050.98 |
| 3.Cash flows from financing activities | ||
| Cash received from capital injection | ||
| Cash receipts from borrowings | 229,000,000.00 | 336,000,000.00 |
| Other cash receipts in financing activities |
| Sub-total of cash inflows from financing activities | 229,000,000.00 | 336,000,000.00 |
| Cash paid for settlement of borrowings | 447,170,833.33 | 296,900,000.00 |
| Cash paid for dividends, profits appropriation or payments of interest | 50,616,061.71 | 35,400,176.36 |
| Other cash payments in financing activities | 15,648,719.37 | 21,382,927.78 |
| Sub-total of cash outflows from financing activities | 513,435,614.41 | 353,683,104.14 |
| Net cash flows from financing activities | -284,435,614.41 | -17,683,104.14 |
| 4.Effect of changes in foreign exchange rate on cash and cash equivalents | -171,942.78 | -61,918.58 |
| 5.Net increases in cash and cash equivalents | 80,881,928.49 | -187,919,517.45 |
| Add: the beginning balance of cash and cash equivalent | 173,113,251.05 | 361,032,768.50 |
| 6.The ending balance of cash and cash equivalent | 253,995,179.54 | 173,113,251.05 |
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiu the person in charge of the accounting office:Wu Bin
| Consolidated Statement of Changes in Shareholer's Equity | |||||||||||||||||
| For the Year of 2024 | |||||||||||||||||
| 1.Provision for special reserve9,641,589.11 9,641,589.11 9,641,589.11 2.Utilisation of special reserve10,090,964.07 10,090,964.07 10,090,964.07 | Amount Unit:RMB | ||||||||||||||||
| Item | Current year | ||||||||||||||||
| Equity attributable to the equity holders of the Company | Minority interests | Total equity | |||||||||||||||
| Paid-up capital(share capital) | Other equity instrument | Capital reserves | Less: Treasuryshares | Othercomprehensiveincome | Special reserves | Surplus reserves | △Generalriskprovision | Undistributedprofits | Others | Sub-total | |||||||
| （VI）Others- - | |||||||||||||||||
| 4、Balance at end of current year843,212,507.00 - - - 717,097,098.38 - 2,208,669.73 - 895,618,513.69 - 673,966,177.84 - 3,132,102,966.64 57,006,488.80 3,189,109,455.44 | |||||||||||||||||
| legal representative： financial controller： accounting supervisor ： | |||||||||||||||||
Consolidated Statement of Changes in Shareholer's Equity(continued)
| preferenceshare | perpetualbond |
others
1. Balance at end of last year843,212,507.00 - - - 717,097,098.38 - 2,208,669.73 - 825,226,634.15 - 618,445,922.58 - 3,006,190,831.84 54,077,970.99 3,060,268,802.83Add: Changes in accounting policies-4,594.76 -65,810.05 -70,404.81 -7,761.79 -78,166.60Correction of prior periods errors-Business combination within the same control-Others-
2. Balance at beginning of current year843,212,507.00 - - - 717,097,098.38 - 2,208,669.73 - 825,222,039.39 - 618,380,112.53 - 3,006,120,427.03 54,070,209.20 3,060,190,636.23
| Item | 1.Provision for special reserve13,214,150.71 13,214,150.71 13,214,150.71 2.Utilisation of special reserve12,764,775.75 12,764,775.75 12,764,775.75 | |||||||||||||
| Minority interests | Total equity | |||||||||||||
| Paid-up capital(share capital) | Other equity instrument | Capital reserves | Less: Treasuryshares | Othercomprehensiveincome | Special reserves | Surplus reserves | △Generalriskprovision | Undistributedprofits | Others | Sub-total | ||||
| （VI）Others- - | ||||||||||||||
| 4、Balance at end of current year843,212,507.00 - - - 717,097,098.38 - 2,208,669.73 449,374.96 867,159,439.34 - 617,386,488.34 - 3,047,513,577.75 56,528,848.12 3,104,042,425.87 | ||||||||||||||
Last year
| Last year | |
| Equity attributable to the equity holders of the Company | |
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiu the person in charge of the accounting office:Wu Bin
| Statement of Changes in Shareholer's Equity of Parent Company | ||||||||||||
| For the Year of 2024 | ||||||||||||
| 1.Provision for special reserve3,418,435.92 3,418,435.92 2.Utilisation of special reserve3,418,435.92 3,418,435.92 | ||||||||||||
| Item | Current year | |||||||||||
| Paid-up capital(share capital) | Other equity instrument | Capital reserves | Less: Treasuryshares | Othercomprehensiveincome | Special reserves | Surplus reserves | Undistributed profits | Others | Total equity | |||
| （VI）Others- | ||||||||||||
| 4、Balance at end of current year843,212,507.00 - - - 755,146,592.54 - 1,246,569.06 - 895,618,513.69 1,013,090,320.10 - 3,508,314,502.39 | ||||||||||||
| legal representative： financial controller： accounting supervisor ： | ||||||||||||
Statement of Changes in Shareholer's Equity of Parent Company(continued)Name of Enterprise：Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd For the Year of 2024 Amount Unit:RMB
| preferenceshare | perpetualbond |
others
1. Balance at end of last year843,212,507.00 755,146,592.54 1,246,569.06 825,226,634.15 936,931,213.43 3,361,763,516.18Add: Changes in accounting policies-4,594.76 -41,352.87 -45,947.63Correction of prior periods errors-Others-
2. Balance at beginning of current year843,212,507.00 - - - 755,146,592.54 - 1,246,569.06 - 825,222,039.39 936,889,860.56 - 3,361,717,568.55
| Item | Last year | |||||||||
| Paid-up capital(share capital) | Other equity instrument | Capital reserves | Less: Treasuryshares | Othercomprehensiveincome | Specialreserves | Surplus reserves | Undistributed profits | Others | Total equity | |
| 1.Provision for special reserve- 2.Utilisation of special reserve- | ||||||||||
| （VI）Others- | ||||||||||
| 4、Balance at end of current year843,212,507.00 - - - 755,146,592.54 - 1,246,569.06 - 867,159,439.34 990,785,644.93 - 3,457,550,752.87 | ||||||||||
legal representative:Ji Zhijian head of the accounting work:Wang Jinxiu the person in charge of the accounting office:Wu Bin
I. General InformationBingshan Refrigeration & Heat Transfer Technologies Co., Ltd (the “Company”) previouslynamed as Dalian Refrigeration Company Limited, was reorganized and reformed from mainpart of former Dalian Refrigeration Factory. On December 8, 1993, the Company went to thepublic as a listed company at Shenzhen Stock Exchange Market. On March 20, 1998, theCompany successfully went to the public at B share market and listed at Shenzhen StockExchange Market with total share capital of RMB350,014,975.00Yuan. The registeredaddress is No. 106 East Liaohe Road, Dalian Economic and Technological DevelopmentZone, Liaoning Province, as same as the headquarters’ address. The unified social credit codeis 912102002423613009 on the business license.According to the 13
th meeting of the 6
thgeneration of board, extraordinary general meetingfor 2015 fiscal year and ' Restricted share incentive plan (draft)', the Company planned tointroduce an ordinary share to incentive objectives, which was 10,150,000 number of shareswould be granted to 41 share incentive objectives at granted price of RMB5.56Yuan per share.Up to March 12, 2015, the Company received new added share capital ofRMB10,150,000.00Yuan.The general meeting for 2015 fiscal year held on April 21, 2016 approved the profitdistribution policy for the year of 2015, which agrees the profit distribution based on the total360,164,975 number of shares as share capital, paid share dividend of 5 common shares forevery 10 shares through capital reserve. The policy stated above was fully implemented onMay 5, 2016, and the registered capital was altered to 540,247,462.00Yuan.The 17
thmeeting of the 6
th generation of board was held on June 4, 2015 and the 2
ndinterimshareholders’ meeting was held on June 24, 2015, meeting deliberated and passed theproposal of non-public offering of ‘A shares’. China’s Securities Regulatory Commissionissued SFC license [2015]3137 on December 30, 2015, approving that new non-publicoffering cannot exceeded 38,821,954 numbers of shares. The company implemented the postmeeting procedures for China’s Securities Regulatory Commission, which is regardingadjustment of bottom price and the number of the shares issued after the implementation ofprofit distribution policy of 2015 in May, 2016, and accordingly revised the upper limit ofnon-public offering of share to58,645,096 number of new ‘A shares’. The company issued thenon-public offering of 58,645,096 number of ‘A shares’ to 7 investors, and as a result, thetotal number of shares of the Company is changed to 598,892,558 shares, and the par value is1yuan per share and the total share capital is 598,892,558.00Yuan.According to the ‘Restricted Share Incentive Plan(draft) of Dalian Refrigeration CompanyLimited for the year of 2016’ and the ‘Proposal regarding the shareholders’ meetingauthorized the board of directors to implement the Restricted Share Incentive Plan’ approved
on the 3
rdprovisional general meeting held on September 13, 2016, the 9
th
meeting of the 7
th
generation of board deliberated and passed the ‘Proposal about granting the restricted sharesto incentive targets’ on September 20, 2016 and set September 20
, 2016 as share granted date,and granted 12,884,000 number of restricted shares to 118 incentive targets at granted priceof 5.62Yuan per share. By November 22, 2016, The Company has actually received thenewly subscribed registered share capital of 12,884,000.00Yuan subscribed by incentivetargets.On May 19, 2017, the general meeting for 2016 fiscal year was held and profit appropriationscheme for 2016 FY was approved, which was every 10 shares will be increased by 4 sharesthrough capital reserve based on the total 611,776,558 number of shares. After the profitappropriation scheme, the registered capital was changed to RMB856,487,181.00Yuan.On December 28, 2017, The Company held the 3rd extraordinary shareholders meeting in2017, and reviewed and approved the “Proposal on Repurchasing and Retiring PartiallyRestricted Stocks of the 2016 Restricted Stock Incentive Plan”. On March 8, 2018, after TheCompany's repurchase and cancellation, The Company implemented the correspondingcapital reduction procedures according to law. The registered capital of The Company waschanged from 856,487,181.00Yuan to 855,908,981.00 Yuan.On May 4, 2018, The Company held the 21
st meeting of the 7
thBoard of Directors, andreviewed and approved the “Proposal on Repurchasing and Retiring Partially RestrictedStocks of the 2015 Restricted Stock Incentive Plan". On June 29, 2018, after The Company'srepurchase and cancellation, The Company implemented the corresponding capital reductionprocedures according to law. The registered capital of The Company was changed from855,908,981.00 Yuan to 855,434,087 .00Yuan.On January 17
th, 2019, the 1
stinterim shareholders’ meeting was held and approved for“Proposal on Termination of the 2016 Restricted Stock Incentive Plan and Repurchasing andRetiring Restricted Stocks Plan”. Up to February 25
th, 2019, The Company has completed therepurchasing and retiring stocks plan, respectively The Company shall perform thecorresponding capital reduction procedures in accordance with the law and the registeredcapital decreased from 855,434,087.00Yuan to 843,212,507.00Yuan.On December 20
th, 2019, The Company held the 7
th meeting of the 8
thBoard of Directors andapproved to change The Company’s name from Dalian Refrigeration Company Limited toBingshan Refrigeration & Heat Transfer Technologies Co., Ltd.The company is in general equipment manufacturing industry. The main business activitiesare the research and development, production and sales of various industrial refrigerationcomponents, as well as the design, production and installation of complete engineeringprojects. The main products include: scroll type, piston type, screw type compressor units,cold water machine and other refrigeration equipment and all kinds of complete sets of
refrigeration projects.This financial report is approved by the board of directors on April 24,2024. The financialstatements will be reviewed at general meeting.II. Financial Statements Preparation Basis
（1） Preparing basis
The group’s financial statements are prepared according to the actual occurred transactionsand events, and in accordance with ‘Accounting Standards for Business Enterprises’, itsapplication guidelines, interpretations and other relevant provisions promulgated by theMinistry of Finance (collectively referred to as "Accounting Standards for BusinessEnterprises") and " No. 15 of Information Disclosure and Reporting Rules for Publicly ListedCompanies - General Provisions for Financial Reports" (revised in 2023) promulgated by theChina 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 December31, 2023, and hasn’t found the major issues impacting on the sustainable operation ability.The Company’s financial statements are prepared on the basis of going concern assumption.III. Significant Accounting Policies and Accounting Estimates
1. Declaration for compliance with accounting standards for business enterprisesThe financial statements are prepared in line with the requirements of Accounting Standardfor Business Enterprise, and reflect the relative information of the financial position for theyear ended as of December 31, 2023, operating performance, cash flow of the Company andthe group for the year then ended truly and fully.
2. Accounting period
The group adopts the Gregorian calendar year as accounting period from Jan 1 to Dec 31.
3. Operating cycle
The group sets twelve months for one operating cycle.
4. Functional currency
The group adopts RMB as functional currency.
5. Materiality criteria set up method and basis
The financial statements preparation and disclosure are in line with materiality. For thosematters to be disclosed and need judgement for materiality, materiality criteria set up methodand basis are as follows:
| Disclosures involved by materiality judgement | In the notes to the financial statements | Materiality criteria set up method and basis |
| Significant receivables with individual provision for bad debts | Note VI.3 | Single provision is over 10 million Yuan and represents more than 10% of the total provision |
| Collection or reverse of significant receivables | Note VI.3 | Single provision is over 10 million Yuan and represents more than 10% of the total provision |
| Significant receivables written off | Note VI.3 | Single provision is over 10 million Yuan and represents more than 10% of the total provision |
| Significant construction in progress | Note XVI.16 | Single project budget over 30 million Yuan |
| Significant JV or associates | Note VIII.3 | 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, 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 |
| Significant subsidiary | Subsidiary’s net assets are more than10% of the group asses and its net profit is more than 10% of consolidated profit |
6. Accounting for business combination under same control and not under same control
（1） Business combination under the same control
Business combination under the same control is the situation where entities participating themerger are controlled by the same party or controlled by parties under same ultimate controlbefore and after merger and the control is not temporary.The group, as an acquirer, the assets and liabilities that the group obtained in a businesscombination under the same control should be measured on the basis of their carrying amountof the acqiree in the ultimate control party’s consolidated financial statements on thecombining date. As for the balance between the carrying amount of the net assets obtained bythe 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 retainedearnings shall be adjusted.
（2） Business combination not under same control
Business combination not under the same control is the situation where entities participatingthe merger are not controlled by the same party or not controlled by parties under sameultimate 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 theacquisition date. The difference, when combination cost exceeds proportionate share of thefair value of identifiable net assets of acquire should be recognized as goodwill. If thecombination cost is less than proportionate share of the fair value of identifiable net assets ofacquiree, firstly, fair value of identifiable asset, liability or contingent liability shall bereviewed, and so the fair value of non-monetary assets or equity instruments issued in thecombination consideration , after review, still the combination cost is less than proportionateshare of the fair value of identifiable net assets of acquire, the difference should be recognizedas non-operating income.If a business consolidation not under common control is finally achieved in stages, whenpreparing the consolidated financial statements, the acquirer shall remeasure its previouslyheld equity interest in the acquiree at its fair value on acquisition date and recognize the gainor loss as investment income for the current period. Other comprehensive income, underequity method accounting rising from the interest held in acquiree in relation to the periodbefore 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 gainor loss for the period in which the acquisition incurs, excluding the other comprehensiveincome from the movement on the remeasurement of ne asset or liability of defined benefitplan.
7. Criteria of control judgment and method of preparation of consolidated financialstatementsConsolidation scope is determined on the control basis including the Company and allsubsidiaries controlled by the Company. Control criteria is that the group has the power overthe investees, enjoy the variable return by involving the relative activities of the investees andalso 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 theparent company, appropriated adjustments shall be made in accordance with the Companypolicy 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 thesubsidiary’s equity not belonging to the parent, profit, loss for the current period, portion ofother 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 beconsolidated since the beginning of the consolidation period. When preparing the comparativeconsolidated financial statements, adjustments shall be made to relevant items of comparativefigures as regarded that reporting entity established through consolidation has been alwaysexisting 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 shallbe consolidated since the beginning of the consolidation period. In preparation of theconsolidated financial statements, adjustments shall be made to subsidiary’s financialstatements based on the fair value of its all identifiable assets, liability or contingent liabilityon the acquisition date.When the group partially disposes of the long –term equity investment in subsidiary withoutlosing the control over it, in the consolidated financial statements, the difference, betweendisposals price and respective disposed value of share of net assets in the subsidiary since theacquisition 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 losethe control over it, in preparation of consolidated financial statements, remaining share ofinterest in the subsidiary shall be remeasured on the date of losing control. Sum of the sharedisposal consideration and fair value of remaining portion of shareholding minus the share ofthe net assets in the subsidiary held based on the previous shareholding percentage since theacquisition date or combination date, the balance of above is recognized as investmentgain/loss for the period and goodwill shall be written off accordingly. Other comprehensiveincome relevant to share investment in subsidiary shall be transferred to investment gain /lossfor the period on the date of losing control.When the group partially disposes of the long –term equity investment in subsidiary and losethe control over it by stages, if all disposing transactions are bundled, each individualtransaction shall be seen as a transaction of disposal of a subsidiary by losing control. Thedifference between the disposal price and the share of the net assets in the subsidiary heldbefore the date of losing control, shall be recognize as other comprehensive income until thedate 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 shallbe 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 bankdeposit. The cash equivalents refer to short-term (normally with original maturities of threemonths or less) and liquid investments which are readily convertible to known amounts ofcash 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 Bankof China (“PBOC”) on the 1
st
day of the month when the transactions are accounted initially.At the balance sheet date, foreign currency monetary items should be converted into reportingcurrency at the balance sheet date’s spot exchange rate. Exchange differences should be takeninto the current profits and losses except special foreign currency borrowings for constructionand producing assets which are qualifying for assets capitalization, should be capitalized.Foreign currency non-monetary items, which are recorded in historical cost, should be stillrecorded at the spot exchange rate when the transaction occurred and no change on reportingcurrency 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 thedifferences should be recognized as profit and loss from fair value changes and included inthe current profits and losses. Invested capital in foreign currency shall be converted intoreporting currency at FX rate at when the investment is received, and no foreign exchangedifference 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 thecontractual 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 assetexpire, 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 3
rdparty in fullamount in time according to the ‘passing-through’ agreement and the entity substantiallytransfers all the risks and rewards of ownership of the financial asset in nature, or the entityneither transfers nor retains substantially all the risks and rewards of ownership of thefinancial 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 debtinstruments with substantially different terms shall be accounted for as an extinguishment ofthe original financial liability and the recognition of a new financial liability. Similarly, asubstantial modification of the terms an existing financial liability shall be accounted for as anextinguishment of the original financial liability and the recognition of a new financialliability. The difference between the carrying amount of a financial liability extinguished andthe consideration paid, including any non-cash assets transferred or liabilities assumed, shallbe recognized in profit or loss.A regular way purchase or sale of financial assets shall be recognized and derecognized, asapplicable, 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 thebasis of both the group’s business model for managing the financial assets and the contractualcash flow characteristics of the financial asset. Only when the business model for managingthe 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 thecompany evaluates and reports the performance of financial assets to key managementpersonnel, the risks affecting the performance of financial assets and the way in which theyare managed, and the way in which the relevant business managers are remunerated. Inassessing whether the objective is to collect contract cash flows, the group needs to make ananalytical judgment on the reasons, timing, frequency and value of the sale of the financialassets before the maturity date.In determining the contract cash flow characteristics, the group is required to determinewhether the contract cash flow is only the payment of principal and interest based on theoutstanding principal, (including the assessment of the time value of money correction,judging any significant difference between it and the baseline cash flow/ for financial assetscontaining early repayment characteristics, is required to determine whether the fair value ofearly repayment features is very small).Financial assets are measured at fair value at the initial recognition, but accounts receivable ornotes receivable arising from the sale of goods or provision of services, etc., do not contain asignificant financing component or do not consider the financing component of less than oneyear, the initial measurement is based on the transaction price.For financial assets that are measured at fair value, the related transaction costs are directlyincluded 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 aremet: ①the financial asset is held within a business model whose objective is to hold financialassets in order to collect contractual cash flows;②the contractual terms of the financial assetgive rise on specified dates to cash flows that are solely payments of principal and interest onthe 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 incomeA financial asset shall be measured at fair value through other comprehensive income if bothof the following conditions are met: ①the financial asset is held within a business modelwhose objective is achieved by both collecting contractual cash flows and selling financialassets and ②the contractual terms of the financial asset give rise on specified dates to cashflows 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 financialasset measured at fair value through other comprehensive income, which is not part ofhedging relationship shall be recognized in other comprehensive income apart from interestincome, impairment loss and foreign exchange difference. When this type of financial assetsis derecognized, accumulated gain or loss previously in the other comprehensive income shallbe out of it and accounted into retained earnings when the financial asset is derecognized. Thefinancial assets of this category include: receivable financing.
3) Equity instruments measured at fair value through other comprehensive incomeThe group may make an irrevocable election for particular investments in equity instrumentsthat it would be measured at fair value through other comprehensive income, but once theelection is made, it is irrevocable. The group only recognizes the dividend (apart from thedividend as investment cost pay back) into profit and loss and fair value movementsubsequently will be recognized into comprehensive income and no need for impairmentprovision. When this type of financial assets is derecognized, accumulated gain or losspreviously in the other comprehensive income shall be out of it and accounted into retainedearnings when the financial asset is derecognized. The financial asset of this category isequity 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 othercomprehensive 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 andloss. The financial assets of this category include: tradable financial asset other non-currentfinancial asset.A financial asset shall be classified as fair value through profit or loss if it is recognizedcontingent consideration through business combination, which is not under same controlsituation.
（3） Classification, basis for recognition and measurement of financial liabilityExcept for the financial guarantee contract, commitments to provide a loan at a below-marketinterest rate and financial liabilities that arise when a transfer of a financial asset does notqualify for derecognition or when the continuing involvement approach applies, the groupshall initially classify all financial liabilities as it measured at amortized cost or financialliabilities at fair value through profit or loss. For financial liabilities that are measured at fairvalue, the related transaction costs are directly included in current profit or loss, and thosecosts of other categories of financial assets are included in their initial recognized amounts.Financial liabilities subsequent measurement based on the classification
1) Financial liabilities as it subsequently measured at amortized cost
Effective interest method is applied to financial liabilities as subsequently measured atamortized 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 financialliability (derivative instrument of financial liability included) and designated as financialliability measured at fair value through profit or loss. Tradeable financial liability (includingderivate instrument of financial liability) are subsequently measured at fair value. The netgain or loss arising from changes in fair value are recorded in profit or loss for the period inwhich they are incurred. Financial liability designated as it measured at fair value throughprofit or loss shall be subsequently measured at fair value, except for changes in fair valuecaused by changes in the group's own credit risk, which are recognized in othercomprehensive income, other changes in fair value are recognized in profit or loss for thecurrent period; The group recognizes all fair value changes (including the amount affected bychanges in its own credit risk) in profit or loss if the inclusion of changes in fair valuecaused by changes in its own credit risk in other comprehensive income would cause orwiden 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: ① a financial asset measured at amortized cost; ② debt investment measuredat fair value and changes in fair value is through other comprehensive income; ③ leasereceivable; ④ a contractual asset and financial guarantee contract.Expected credit loss is the weighted average of credit losses with the respective risks of adefault occurring as the weights. A credit loss herein is referred to as the present value, atoriginal effective rate, of the difference between the contractual cash flows that are due to thegroup under the contract; and the cash flows that the Company expects to receive, that's thepresent value of the total cash shortage. The group shall measure expected credit losses of afinancial instrument in a way that reflects: ①an unbiased and probability-weighted amountthat is determined by evaluating a range of possible outcomes; ② the time value of money;and ③reasonable and supportable information that is available without undue cost or effort atthe reporting date about past events, current conditions and forecasts of future economicconditions.Expected credit loss of financial instrument is assessed individually and portfolio. The groupassesses the expected credit loss based on the portfolio in accordance with the commoncharacteristics of credit risk which involves type of financial instrument, credit risk grade, andage of trade receivables.When assessing expected credit losses, the group considers all reasonable and supportableinformation, including that which is forward-looking. In making these judgments andestimates, the group extrapolates the expected changes in the debtor's credit risk based onhistorical repayment data combined with factors such as economic policies, macroeconomicindicators and industry risks. Different estimates may affect the provision for impairment, andthe provision already made may not equal the actual amount of impairment losses in thefuture.
1) Impairment testing method of receivable and contract asset
For receivable, notes receivable and contract asset etc., which don’t contain significantfinancing component and arise from sales of products and service provision, the group adoptssimplified method to account expected credit loss provision at an amount equal to the wholelifetime 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 lossprovision 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 portfolioswith common characteristics of credit risk, which are considered by expected credit lossmeasurement reflection, by reference to historical experience of credit loss and bycomparison 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 andcredit impaired. If certain client is significant different from others in terms of credit riskcharacteristics, or the client’s credit risk has significantly increased, such as experiencingsevere finance difficulty, its expected credit loss is obviously higher than it to be ataccounting age, the group will make separate credit loss provision for this client’s receivable.
① Portfolio category and recognition basis of receivable ( contract asset)
The group classifies accounts receivable (and contract assets) according to the similarity andrelevance of credit risk characteristics based on information such as age, nature of payments,credit risk exposure, historical debt collection, etc. For accounts receivable (and contractassets), the group determines that aging is the primary factor affecting its credit risk andtherefore, the group assesses its expected credit losses on the basis of aging portfolios. Thegroup 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 consolidatedscope as the group assesses its credit risk is relatively low.
② Portfolio category and recognition basis of notes receivable
| Portfolio category | Expected credit loss accounting estimate policy |
| Bank acceptance note portfolio | Lower credit risk assessed by the management, no expected credit loss recognition |
| Commercial acceptance note portfolio | Same as receivables portfolio and provided for excepted credit loss allowance based on expected credit loss rate |
2) Impairment testing method of debt investment, other debt investment, loan commitments
and financial guarantee contractsWith the exception of financial assets (such as debt investments, other debt investments), loancommitments and financial guarantee contracts for which the simplified measurement methodis adopted above, the group adopts the general method (three-stage method) for the provisionof expected credit losses. At each balance sheet date, the group assesses whether its credit riskhas increased significantly since the initial recognition, and if the credit risk has not increasedsignificantly since the initial recognition, in the first stage, the group measures the lossprovision at an amount equivalent to the expected credit loss over the next 12 months andcalculates interest income based on the carrying balance and effective interest rate; If thecredit risk has increased significantly since the initial recognition but no credit impairmenthas occurred, in the second stage, the group measures the loss provision at an amountequivalent to the expected credit loss over the entire duration and calculates interest incomebased on the carrying balance and effective interest rate; If credit impairment occurs afterinitial recognition, in the third stage, the group measures the loss provision at an amountequivalent 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 riskat the balance sheet date, the group assumes that their credit risk has not increasedsignificantly since initial recognitionThe whole life expected credit loss refers to the expected credit loss caused by all possibledefault events during the whole expected life of the financial instrument. Expected creditlosses over the next 12 months are expected credit losses resulting from defaults on financialinstruments that may occur within 12 months after the balance sheet date (or if the expectedduration of the financial instrument is less than 12 months) and are part of the overallexpected credit losses over the life of the financial instrument.Criteria of significant increase in credit risk and definition of credit impaired assets aredisclosed 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 withsubstantial all risks and rewards to the transferee. A financial asset can not be derecognizedwhen the substantial all risks and rewards to the financial asset has been retained. When theall risks and rewards of the financial asset are neither transferred nor retained, but the grouphas given up its control of the financial asset, the financial asset shall be derecognized andrecognize the asset and liability originated. Where control of the financial asset is notrelinquished, the relevant financial asset shall be recognized according to the extent to whichit continues to be involved in the transferred financial asset, and the relevant liability shall berecognized accordingly.In the case where the financial asset as a whole qualifies for the derecognition conditions, thedifference between the carrying value of transferred financial asset at the derecognition dateand the sum of the consideration received for transfer and the accumulated amount of changesin fair value in respect of the amount of partial derecognition ( financial assets involved intransfer must qualify the following conditions: ① the financial asset is held within abusiness model whose objective is not only for collecting contractual cash flows but also forsale; ②the contractual terms of the financial asset give rise on specified dates to cash flowsthat 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 orloss for the period.In the case where only part of the financial asset qualifies for derecognition, the carryingamount of financial asset being transferred is allocated between the portions that to bederecognized and the portion that continued to be recognized according to their relative fairvalue. The difference between the amount of consideration received for the transfer and theaccumulated amount of changes in fair value that was previously recorded in othercomprehensive income for the asset partially qualified for derecognition (financial assets
involved in transfer must qualify the following conditions:① the financial asset is heldwithin a business model whose objective is not only for collecting contractual cash flows butalso for sale; ; ②the contractual terms of the financial asset give rise on specified dates tocash flows that are solely payments of principal and interest based on the principal amountoutstanding ) and the above-mentioned allocated carrying amount is charged to profit or lossfor the period.Where the assets continue to be involved by providing financial guarantees for the transferredfinancial assets, the assets that continue to be involved in the same form are recognized at thelower 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 willbe required to be repaid.
（6） Distinguish between financial liability and equity instrument and accountingFinancial liability and equity instrument shall be distinguished in accordance with thefollowing standards: ① if the group cannot unconditionally avoid paying cash or financialasset to fulfil a contractual obligation, the contractual obligation is qualified or financialliability. For certain financial instrument, although there are no clear terms and conditions toinclude obligation of paying cash or other financial liability, contractual obligation mayindirectly be formed through other terms and conditions. ②the group’s own equityinstrument shall also be considered whether it is the substitute of cash, financial asset or it isthe remaining equity, after the issuer deducts liability, enjoyed by the equity holder , if it mustor can be used to settle a financial asset. If the former, the instrument is a financial liability ofthe issuer, otherwise it is an equity instrument of the issuer. In certain circumstances, financialinstrument contract is classified as financial liability, if financial instrument contract specifiesthe Company must or can use its own equity to settle the financial instrument, the contractualamount of right or obligation equals to that of the numbers of own equity instrument availableor to be paid multiplied by fair value when settling, nevertheless the amount is fixed, orvaried 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, thegroup takes all terms and conditions agreed by the its member and instrument holder intoconsideration. If the group because of the instrument, as a whole, bears settlement obligationby paying cash, other financial asset or other means resulted in financial liability, theinstrument 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, commodityprice 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 aresubsequently measured at their fair value. A derivative instrument with a positive fair value isrecognized 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 instrumentshall 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 andcannot be offset, unless the following conditions are all met: ①the Company has the legalright to recognized offset amount and the right is enforceable. ②the Company plans toreceive or a legal obligation to pay cash at net amount.
11. Inventories
Inventories are raw material, low-valuable consumable, goods on transit, working-in-progress,finished goods, and cost to fulfil the contract etc.The inventories are processed on perpetual inventory system, and are measured at their actualcost on acquisition. Weighted average cost method is taken for measuring the inventorydispatched or used. Low value consumables and packaging materials is recognized in theincome 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 thedecline in the price of the inventory and it is accounted in the current profit or loss. Netrealizable value is the amount of the estimated selling price of inventory in daily activitiesless the estimated costs to be incurred at completion, estimated selling expenses and relatedtaxes.Impairment provision for the group's raw materials/goods in stock/WIP/ cost to fulfil thecontract is made on an individual inventory item, and when determining its net realizablevalue, the inventory of goods in stock and materials used for sale are determined at theestimated 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 priceof the finished goods produced less the estimated costs to be incurred up to completion,estimated selling expenses and
12. Contract asset and contact liability
(1) Contract asset
Contract asset is an entity’s right to consideration in exchange for goods or services that theentity has transferred to a customer when that right is conditioned on something other than thepassage 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 oneof the goods are delivered, but the consideration’s collection is conditioned on the othergoods 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 forimpairment of financial assets.
(2) Contract liability
An entity’s obligation to transfer goods or services to a customer for which the entity hasreceived consideration (or the amount is due) from the customer. If a customer paysconsideration, or the group has a right to an amount of consideration that is unconditionalbefore the group transfers a good or service to the customer, the group shall present thecontract as a contract liability when the payment is made or the payment is due (whichever isearlier).
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 toobtain a contract. Cost to fulfill the contract is presented under inventory and othernon-current assets. Cost to obtain a contract is presented under other current assets and othernon-current assets.If the costs incurred in fulfilling a contract with a customer are not within the scope ofanother Standard such as inventory , fixed assets or intangible assets , an entity shallrecognize an asset from the costs incurred to fulfill a contract only if those costs meet all ofthe 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 bythe client and any other cost in line with the contract; the costs enhance resources of the groupthat will be used in performance obligations in the future; and the costs are expected to berecovered.An asset as the incremental costs of obtaining a contract with a customer shall be recognizedif the group expects to recover those costs. The group may recognize the incremental costs ofobtaining a contract as an expense when incurred if the amortization period of the asset t isone year or less. The incremental costs of obtaining a contract are those costs that the groupincurs to obtain a contract with a customer that it would not have incurred if the contract hadnot been obtained (for example, a sales commission). Other expenses incurred in order toobtain a contract rather than the incremental cost, and expected to be recovered (regardless ofwhether the contract is obtained such as travelling expenses) shall be recognized as anexpense 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 basisthat is consistent with the transfer to the customer of the goods or services to which the assetrelates.
(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 thefollowing two differences, the group will make the impairment provision for the excessivepart and recognize the asset impairment loss: ① The remaining consideration that the groupis expected to obtain due to the transfer of the commodities related to the asset; ② Estimatethe 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 companyand 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 areinvestments in associates.Significant influence refers to having the power to participate in the decision-making of thefinancial and operational policies of the investee, but not being able to control or jointlycontrol the formulation of these policies with other parties. Significant influence exists whenthe entity directly or indirectly owned 20% or more but less than 50% voting shares in theinvestee, unless there is explicit evidence that the company cannot participate in theproduction 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 thefollowings are taken into accounts: representation on the board of directors or equivalentgoverning body of the investee, participation in financial or operating activitiespolicy-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 jointlycontrol over it and have rights to the net assets of the investee. Joint control is thecontractually agreed sharing of control of an arrangement, which exists only when decisionsabout the relevant activities require the unanimous consent of the parties sharing control. Thegroup’s judgement on joint control is based on the joint arrangement that all participants orcombinations of participants collectively control the arrangement and that decisions relatingto the activities of the arrangement must be made with the unanimous consent of thoseparticipants who collectively control the arrangement.
(2) Accounting
The group initially measures the long-term investment in line with the initial cost foracquiring the investment.The initial investment cost for long-term equity investment acquired through businesscombination under common control, is the carrying amount presented in the consolidatedfinancial statements of the share of net assets at the combination date in the acquiredcompany. If the carrying amount of net assets at the combination date in the acquiredcompany is negative, investment shall be recognized at zero.If long-term equity investment is acquired through business combination not under commoncontrol, initial investment cost shall be the combination cost. If the equity investment ofinvestee 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 investmentcost are taken as the initial investment cost.Apart from the long-term equity investments acquired through business combination, the costof investment for the long-term equity investments acquired by cash payment is the amount ofcash paid, relevant direct expense, tax and other necessary expenses for the investment. Forlong-term equity investment acquired by issuing equity instruments, the cost of investment isthe 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 byadjusting the fair value of additional investment and relevant transaction expenses. Cashdividend or profit declared by investee shall be recognized as investment gain/loss for theperiod based on the proportion share in the investee.The Company adopts equity method for investment in joint venture and affiliate. Underequity method, if the initial investment cost is greater than the share of fair value of theidentifiable net assets in the investee, the initial investment cost of long-term equityinvestment is no need to be adjusted; If the initial investment cost is less than the share of fairvalue of the identifiable net assets in the investee , the difference shall be recorded into thecurrent profit and loss, and the cost of long-term equity investment shall be adjusted at thesame time.Long-term equity investment subsequently, under equity method, shall be adjusted for itcarrying amount according to the share of equity increase or decrease in the investee. TheCompany shall recognize its share of the investee’s net gain or losses after the investee’s netprofit adjustment, based on the fair value of the investee’s individual identifiable assets atthe acquisition date, after making appropriate adjustments thereto in conformity with the
accounting policies and accounting period, and offsetting the unrealized profit or loss fromthe inter-group transactions, not constituting the business, between the entity and itsassociates and joint ventures according to the shareholding attributable to the group (fullamount of loss shall be recognized if the inter-group transaction is impairment loss). Thegroup recognizes net losses incurred by investee to the extent that the carrying value oflong-term equity investments and other long-term interests substantially constituting netinvestments in investee are written down to zero, except where the group is obliged to bearadditional losses.The difference between the book value of long-term equity investment and actual acquisitioncost shall be recognized in the gain or loss of investment when the long-term equityinvestment is disposed of.For long-term investments accounted under equity method, other comprehensive incomerecorded shall be accounted on the same basis as the investee directly disposing of relatedassets or liability when equity method is not used any longer. The movements ofshareholder’s equity, other than the net profit or loss, other comprehensive income and profitdistribution previously recorded in the shareholder’s equity of the Company are recycled toinvestment income for the period on disposal.If the remaining equity after the partially disposal is still accounted for under the equitymethod, the relevant other comprehensive income previously recognized under the equitymethod, is treated on the same basis as the direct disposal of the relevant assets or liabilitiesby the investee and is carried forward on a proportional basis, and the owner's equity, whichis apart from net profit and loss, other comprehensive income and profit distribution of theinvestee, shall be recognized and proportionally transfers to current investment income.Where the entity has no longer joint control or significant influence in the investee companyas a result of partially disposal of the investment, the remaining investment will be accountedfor in line with the Recognition and Measurement of Financial Instruments Standard -No 22of Accounting Standards for Business Enterprises(No7 Caikuai [2017]), and the differencebetween the fair value of remaining investment at the date of losing joint control orsignificant influence and its carrying amount shall be recognized in the profit or loss for theyear.Where the entity has no longer control over the investee company as a result of partiallydisposal of the investment, the remaining investment will be changed to be accounted forusing equity method providing remaining joint control or significant influence over theinvestee company. The difference between carrying amount of disposed investment andconsideration 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 theinvestee as a result of disposal, the investment shall be accounted for in accordance with theRecognition and Measurement of Financial Instruments Standard -No 22 of AccountingStandards for Business Enterprises(No7 Caikuai [2017]), and difference between the carryingamount and disposal consideration shall be recognized as investment gain or loss for theperiod, and the difference between the fair value of remaining investment at the date of losingcontrol 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 includesproperty, 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 usefullife, net residual value rate and annual depreciation rate is as follows:
| Category | Useful life (years) | Estimated net residual value rate (%) | Annual depreciation rate |
| Use right of land | 50 | 0 | 2 |
| Property and Buildings | 40 | 3/10 | 2.25-2.43 |
16. Fixed assets
Recognition criteria of fixed assets: defined as the tangible assets which are held for thepurpose of producing goods, rendering services, leasing or for operation & management, andhave more than one year of useful life.Fixed assets shall be recognized when the economic benefit probably flows into the group andits cost can be measured reliably. Fixed assets include: building, machinery, transportationequipment, electronic equipment and others.All fixed assets shall be depreciated unless the fixed assets had been fully depreciated and arestill being used and land is separately measured. Straight-line depreciation method is adoptedby the group. Estimated net residual value rate, useful life, depreciation rate as follows:
| No | Category | Useful life (years) | Estimated net residual value rate (%) | Annual depreciation rate (%) |
| 1 | Property and Buildings | 20-40 | 3、5、10 | 2.25-4.85 |
| 2 | Machinery equipment | 5-22 | 0.5-1、3、5、10 | 4.09-19.90 |
| 3 | Transportation equipment | 3-15 | 1、3、5、10 | 6-33.33 |
| 4 | Electronic equipment &others | 3-15 | 0-1、3、5、10 | 6-33.33 |
The group should review the estimated useful life, estimated net residual value anddepreciation method at the end of each year. If any change has occurred, it shall be regardedas a change in the accounting estimates.
17. Construction in progress
The cost of construction in progress is determined according to the actual constructionexpenditure, including the necessary construction expenditure incurred during theconstruction period, the capitalized borrowing cost and other related expenses before theconstruction reaches the condition expected for use.Constructions in progress are transferred to fixed assets based on the construction budget andactual costs on the date when completing and achieving estimated usable status, and the fixedassets should be depreciated in the next month. Adjustment will be made upon confirmationof their actual values after implementing the completion and settlement procedures.The construction in progress shall be transferred to fixed assets when it reaches the expectedusable 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 andothers. They are measured at actual cost at acquisition day. For acquired assets, the actual costis measured at actual price paid and relevant other expenses. Invested intangible asset shall bemeasured at actual cost as contracted or agreed value, however fair value will be taken if thecontracted or agreed value is not fair.
(1) Useful life and the basis for recognition, estimation, amortization method or reviewprocedureUse right of land shall be amortized evenly within the amortization period since the remiseddate. Patents, technologies and other intangible assets are amortized over the shortest of theirestimated 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 theperiod according to the usage of the assets. At the end of the year, for definite life ofintangible assets, their estimated useful life and amortization method shall be assessed. Anychange 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’ssalary, materials, depreciation, technology cooperation cost and assessment testing fees. Atdevelopment 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 foruse or sale.(b)its intention to complete the intangible asset and use or sell it.(c)how the intangible asset will generate probable future economic benefits. Among otherthings, the entity can demonstrate the existence of a market for the output of the intangibleasset or the intangible asset itself or, if it is to be used internally, the usefulness of theintangible asset.(d)the availability of adequate technical, financial and other resources to complete thedevelopment and to use or sell the intangible asset.(e)its ability to measure reliably the expenditure attributable to the intangible asset during itsdevelopment.Any expenditure not qualifying for the above conditions shall be accounted into profit andloss account.The projects expenditure will go to the development stage and start to be capitalized aftermeeting the above conditions, and passing the technical feasibility and economic feasibilitystudies, 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-useasset and intangible assets with definite useful life may be impaired. If there is any indicationthat an asset may be impaired, the asset will be tested for impairment. Goodwill andintangible asset with infinite useful life and development cost not reaching available for usestatus, are tested for impairment annually no matter there is any indication of impairment ornot.
(1) Non-current asset impairment excluding financial asset (expect goodwill)When testing the impairment, the group recognized the recoverable amount of an asset, whichthe higher of its fair value less costs to sell and the present value of the future cash flowsexpected to be derived from the asset. After impairment test, any difference of carryingamount 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 toestimate 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 isdetermined based on whether the major cash inflow generated by the asset group isindependent 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 observablemarket price for similar asset within the arm length transaction. When estimating the presentvalue of future cash flows, management must estimate the expected future cash flows of theasset or group of assets and select an appropriate discount rate to determine the present valueof future cash flows.
(2) Goodwill impairment
The group allocates the carrying value of the goodwill generated from the businesscombination to the relevant asset group or to the relevant asset group combination which isdifficult 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 orasset group combination, if there are signs of impairment in the asset group or asset groupcombination related to goodwill, the impairment test shall firstly be conducted on the assetgroup or asset group combination excluding goodwill, and the recoverable amount shall becalculated and compared with the relevant carrying value so to recognize the correspondingimpairment loss; Then, an impairment test is conducted on the asset group or asset groupcombination 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 firstoffset against the carrying value of goodwill allocated to the asset group or asset groupcombination, and then offset the carrying value of the asset group and asset groupcombination based on the proportion of the carrying value of other assets in the asset group orasset group combination without goodwill.The methodology, parameters and assumptions of the goodwill impairment test are referred inNotes VI.19.Once the impairment loss on the assets is recognized, it can not be reversed in a subsequentperiod.
20. Long-term prepaid expense
The group's long-term prepaid expense refers to landscape fees, renovation &decorationexpenses and other expenses paid and should be allocated over 1year.It will be amortizedevenly within its beneficial period. The remaining unamortized expense should be chargedinto 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 beamortized for 5-10 years.
21. Employee benefits
Employee’s benefit comprises short-term benefit, post-employment benefit, terminationbenefit and other long-term employee’s benefit.Short-term benefit includes salary, bonus, allowance, welfare, social insurance, housing funds,labor union expense, staff training expense, during the period in which the service renderedby the employees, the actually incurred short term employee benefits shall be recognized asliability and shall be recognized in P&L or related cost of assets based on benefit objectiveallocated 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 areclassified into defined contribution plan and defined benefit plan. For defined contributionplan, liability shall be recognized based on the contributed amount made by the Company toseparate entity at the balance sheet date in exchange of employee service for the period and itshall be recorded into current profit and loss account or relevant cost of assets in accordancewith beneficial objective.Termination benefits are employee benefits payable as a result of either the group’s decisionto terminate an employee’s employment before the contract due date or an employee’sdecision to accept voluntary redundancy in exchange for those benefits. The group shallrecognize the termination benefits as a liability and an expense on the earlier date (1) whenthe group cannot unilateral withdraw the termination benefits due to employment terminationplan or due to redundancy suggestion, or (2) when the group can recognize the restricting costor expense arising from paying termination benefits.Other long-term employee’s benefit refers to all other employee benefits other than short-termbenefit, post-employment benefit and termination benefit.
22. Provision
When the Company has transactions such as commitment to externals, discounting the tradeacceptance note, unsettled litigation or arbitration which meets the following criterion,provision should be recognized: It is the Company's present obligation; carrying out theobligation will probably cause the Company's economic benefit outflow; the obligation canbe reliably measured.Provision is originally measured on the best estimate of outflow for paying off the presentobligations. When determining the best estimate, need to consider the risk, uncertainty, timevalue of monetary relevant to contingent items. The group needs to review the present bestestimate 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 ofgoods or services refers to the ability to direct the use of, and obtain substantially all of theremaining benefits from, the asset.If the contract between the group and the customer meets the following five conditions at thesame time, the group has fulfilled the performance obligation when the customer obtains thecontrol 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 ownobligations;
2) the contract specifies the rights and obligations of parties related to the transferredcommodities;
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 changethe 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 thecustomer is likely to be recovered.When the group transfers control of a good or service over time, it satisfies a performanceobligation 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 andthe 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 wholeset 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 ofobligation of transferring goods. The group recognizes the revenue at the time when thearrival 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 andrewards in the ownership of the goods, the transfer of the legal ownership entitled to thegoods, the transfer of physical assets, the acceptance of goods by customers.
2) Export sales: the group will recognize the sales revenue after completing the customsdeclaration and export procedures.Revenue from installation of the whole set of refrigeration engineering project. In therefrigeration installation contract between the group and the customer, since the equipmentsales and installation services cannot be distinguished separately, the entire project contract isregarded as a single performance obligation, and the revenue of the single performanceobligation is recognized at the completion of the customer acceptance. when a performanceobligation over time is satisfied, revenue shall be recognized within the contract termaccording to the performance progress, which is determined by the percentage of thecumulative actual cost to expected total contract cost. When the performance progress can notbe estimated reasonably, the group recognizes the revenue to the extent where the alreadyincurred 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 thecontract on a relative standalone selling price ratio basis and measure the revenue at theallocated transaction price to each performance. If any solid evidence indicates that contractdiscount is only relevant to one or some (not all) performance obligations, the discount shallbe allocated into the one or these performance obligations.An amount of consideration can vary because of cash discounts, price guarantee. The groupdetermines the best estimate of the variable consideration in line with the expectation or theamount that most probably incurred, but includes, in the transaction price, the variableconsideration not exceeding the amount that is highly unlikely to result in a material reversalof cumulative revenue recognized when the relevant uncertainty is eliminated.The group accounts for consideration payable to a customer as a reduction of the transactionprice and, therefore, of revenue unless the payment to the customer is in exchange for adistinct good or service. Accordingly, the revenue shall be recognized at the later of therevenue recognition and the consideration paid to a customer.For sales with a right of return, the group recognizes the revenue for the considerationexpected to have the right to receive arising from transferring the goods to customers whenthe customer receives the control right over the relevant goods, and recognizes the expectedrefund amount as provision. At the same time, receivable of return cost, as an asset, shall berecognized for the carrying value of the returned goods when it is expected to be transferredless expected cost for getting it back (including decline in value) and net amount of the aboveasset cost shall be carried over to the cost. At every balance sheet date, the group will reassessthe future sales returns and remeasure the above assets and liabilities.
Where a significant financing component exists in the contract, the transaction price shall bemeasured at the assumed price that the payment is made by cash when the client receives thecontrol right of goods or services. The difference between the promised consideration and thedetermined transaction price shall be amortized within the contract period using effectiveinterest rate, and it is the discounting rate at which the dominated price of the contractconsideration is discounted to the cash price.According to the agreement or the regulation etc., the group provide warranty for the goodssold and it is the quality assurance for promising the goods are in commodity with the agreedstandards 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 grantis 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 offixed amount or conclusive evidence indicates relevant conditions for financial support aremet and expect to probably receive the fund, it is measured at the amount receivable. Where agovernment grant is in the form of a transfer of non-monetary asset, it is measured at fairvalue. If fair value cannot be determined reliably, it is measured at a nominal amount ofRMB1 Yuan.Assets-related government grant is the government fund obtained by the group for thepurpose 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-relatedgrants. If no grant objective indicated clearly in the government documents, the group shalljudge it according to the principle mentioned above. If the grant is difficult to be separated, itshall be considered as income-related grant as a whole.Assets-related government grants are recognized as deferred income, which shall be evenlyamortized 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 remainingbalance of deferred income which hasn’t been allocated shall be carried forward to theincome statement when the assets are disposed of.Income-related government grants that is a compensation for related expenses or losses to beincurred in subsequent periods are recognized as deferred income and credited to the relevantperiod when the related expenses are incurred. Government grants relating to compensationfor related expenses or losses already incurred are charged directly to the profit or loss for theperiod. Government grants related to daily business, shall be recognized as other income inaccordance with business nature or offsetting related expenses, otherwise, shall be recognizedas 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 recognizedaccording to the differences (temporary difference) between the carrying amount of the assetsor liabilities and its tax base and the difference between the carrying amount of tax base itemand its tax base.Deferred tax liability shall be recognized for all taxable temporary difference apart from thefollowings : (1) temporary differences arise from the initial recognition of goodwill or theinitial recognition of assets or liabilities arising from non-business combinations that do notaffect accounting profits or taxable income (or deductible losses); (2) The group is able tocontrol the timing of the reversal of taxable temporary differences related to investments insubsidiaries, associates, and joint ventures, and such temporary differences are likely not to bereversed 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 taxableincome, except for the following situations: (1) the initial recognition of assets or liabilitiesarising from non-business combination transactions where temporary differences do not affectaccounting profits or taxable income (or deductible losses); (2) Deductible temporarydifferences related to investments in subsidiaries, associates, and joint ventures that cannotsimultaneously meet the following conditions: temporary differences are likely to be reversedin the foreseeable future, and taxable income is likely to be obtained in the future to offsetdeductible temporary differences.The group recognizes deferred income tax assets for all unused deductible losses to the extentthat there is likely to be sufficient taxable income to offset the deductible losses. Themanagement uses plenty of judgment to estimate the timing and amount of future taxableincome, combined with tax planning strategies, to determine the amount of deferred incometax assets, which results in uncertainty.On the balance sheet date, deferred income tax assets and deferred income tax liabilities aremeasured at the applicable tax rate during the expected period of asset recovery or liabilitysettlement.When the following conditions are met simultaneously, the group shall present the deferredincome tax assets and deferred income tax liabilities at the net amount after offsetting: Thegroup has the legal right to settle the current income tax assets and deferred income taxliabilities at the net amount; Deferred income tax assets and deferred income tax liabilities arerelated to the income tax levied by the same tax collection and management authority on thesame taxpayer or on different taxpayers. However, in the future, within the term when eachsignificant deferred income tax asset and deferred income tax liability to be reversed, theinvolved 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 underlyingasset) 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 ormany 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 andaccount each lease separately. The group shall account for each lease component separatelyfrom non-lease components of the contract if the contract contains lease and non-leasecomponents. Each leasing part is accounted for according to the leasing standards, while thenon-leasing part is accounted for according to other applicable accounting standards. If thecontract includes both leasing and non-leasing parts, the group, as the lessor, will split theleasing and non-leasing parts and conduct accounting treatment separately. Each leasing partwill be accounted for according to the leasing standards, while the non-leasing part will beaccounted for according to other applicable accounting standards. As the lessee, the groupchooses not to separate the lease and non-lease, and joins each leased part and its non- leasedparts separately into a lease, accounting treatment shall be carried out in accordance withleasing standards; However, if the contract includes embedded derivative instruments thatshould be split, the group will not merge them with the leasing portion for accountingtreatment.
(2) As a leasee
1) Recognition
At the commencement date, the group as a lessee shall recognize a right-of-use asset and alease 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:
① the amount of the initial measurement of the lease liability,
② any lease payments made at or before the commencement date, less any lease incentivesreceived, which is the incremental cost for the lease
③ any initial direct costs incurred by the lessee which is the incremental cost
④ 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 tothe condition required by the terms and conditions of the lease, unless those costs are incurredto produce inventories. Where the group remeasures the lease liability in accordance with therelevant provisions of the leasing standard, the carrying value of right-of-use asset is adjustedaccordingly.The group shall follow the following principles when determining the depreciation life of theright-of-use asset: if the ownership of the leased asset can be reasonably determined at theend of the lease term, depreciation shall be calculated and deducted during the remainingservice life of the leased asset; Where it is not certain that the ownership of the leased assetcan be acquired at the end of the lease term, depreciation shall be calculated at the shorter ofthe lease term and the remaining service life of the leased asset. The depreciation amountshall 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 ofthe lease payments that are not paid at that date.The lease payments included in the measurement of the lease liability comprise the followingpayments for the right to use the underlying asset during the lease term that are not paid at thecommencement date: ① fixed payments (including in-substance fixed payments) less anylease incentives receivable;② variable lease payments that depend on an index or a rate,initially measured using the index or rate as at the commencement date;③ the exercise priceof a purchase option if the lessee is reasonably certain to exercise that option ④ payments ofpenalties for terminating the lease, if the lessee will certainly exercise an option to terminatethe lease during the lease term.⑤ amounts expected to be payable by the lessee underresidual value guarantees;When calculating the present value of the lease payments, interest rate implicit in the leaseshall be used. If the rate cannot be readily determined, the group shall use the lessee’sincremental borrowing rate. Interest on the lease liability in each period during the lease termshall be calculated based on a constant periodic rate of interest, and be recognized as in profitor loss unless its capitalization.After the lease commencement date, the group increases the carrying amount of lease liabilitywhen recognizing the interest on lease liability and; decreases the carrying amount of leaseliability when making lease payment. The group remeasures the lease liability in accordancewith the present value of revised lease payment, when the followings incur: ①change ofin-substance fixed payments (subject to original discounting rate) ② change of amountsexpected to be payable under residual value guarantees(subject to original discounting rate)
③ change of an index or a rate used for future lease payments(subject to revised discountingrate) ④ change in assessment of a buy option(subject to revised discounting rate) ⑤change in assessment of a renew option or termination option or actual situation(subject to
revised discounting rate).
2) Short-term lease and low value asset lease
The group has chosen not to recognize the right-of-use asset and lease liability for short-termlease (lease term less than 12 months) and low value asset (30,000 Yuan) when it is singleleased new asset. In this case, lease payment will be accounted directly in profit or loss or onthe 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 whetherthe transfer of the asset is a sale. If the transfer of assets is not a sale, the group shall continueto recognize the transferred assets and at the same time recognize a financial liability equal tothe transfer income (Note VI. 34 lease). If the transfer of assets is a sale, the group shallmeasure the right-of-use asset arising from the leaseback at the proportion of the previouscarrying 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 rightstransferred 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 risksand 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 andderecognize of finance lease asset. When initially measuring the lease payment receivable, netlease 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 unduelease receivable discounted at the interest rate implicit in the lease. The group shall recognizeinterest income over the lease term based on a constant periodic rate. The variable leasepayment obtained by the group related to operating leases, which are not included in the netlease 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 theperiod.The initial direct expenses incurred by the group in relation to operating leases are capitalizedto the cost of leasing the underlying asset and are recognized in profit or loss by instalmentsover the lease period on the same basis as rental income. Variable lease payments made by thegroup 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 theeffective date of the modification, considering any received in advance or lease paymentsreceivable relating to the original lease as part of the lease payments receivable for the newlease
27. Fair value measurement
The group measures investment property, derivative financial instruments and equityinstruments at fair value at each balance sheet date. Fair value refers to the price that marketparticipants can receive by selling an asset or can pay for transferring a liability in an orderlytransaction that takes place on the measurement date.Assets and liabilities measured or disclosed at fair value in the financial statements aredetermined to belong to the different fair value level based on the lowest level of input valuesthat are significant to the fair value measurement as a whole: level 1 input is the unadjustedquoted price for identical asset or liability available at the active market on the measurementdate; level 2 input is the directly or indirectly observable input for relevant asset or liabilityapart 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 determinestheir fair value by their active market quotes; For financial instruments that are not traded inan active market, the group uses valuation techniques to determine their fair value, and thevaluation model used is mainly the discounted cash flow model. The input of valuationtechniques mainly includes: risk-free interest rate of debt, credit premium and liquiditypremium; 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 valuationmodels, such as the discounted cash flow model. The group also considers the initialtransaction price, recent transactions of the same or similar financial instruments, or fullthird-party transactions of comparable financial instruments. As at 31 December 2024, level 3financial assets measured at fair value are valued by using significant unobserved inputs suchas discount rates, but their fair value is not materially sensitive to reasonable changes in thesesignificant unobserved inputs.The group uses the market approach to determine the fair value of unlisted equity investments.This requires the group to determine comparable listed companies, select market coefficient,estimate liquidity discounts, etc., and is therefore subject to uncertainty.
28. Changes in Accounting Policies, Accounting Estimates
(1) Change in significant accounting policies
In November 2023, the Ministry of Finance issued Interpretation of Accounting Standards for
Business Enterprises No. 17 (Finance and Accounting [2023] No. 21) (hereinafter referred toas "Interpretation No. 17"), which includes "I. Division of current liabilities and non-currentliabilities; Disclosure of supplier financing arrangements; Accounting for sales and leasebacktransactions ", and comes into effect from January 1, 2024. The implementation of therelevant provisions of Interpretation No. 17 has no effect on the financial statements of theGroup during the reporting period.In December 2024, the Ministry of Finance issued Interpretation of Accounting Standards forBusiness Enterprises No. 18 (Finance and Accounting (2024) No. 24) (hereinafter referred toas "Interpretation No. 18"), which came into effect as of the date of issuance. "I. Subsequentmeasurement of investment premises held as an infrastructure project under the floating feemethod"; "II. Accounting for quality assurance in the category of assurance that is not part ofa single performance obligation". The implementation of the relevant provisions ofInterpretation No. 18 has no impact on the financial statements of the Group during thereporting period.
(2) Changes in significant accounting estimates
No.IV. Taxation
1. The main applicable tax and rate to the Company as follows:
| Tax | Tax base | Tax rate |
| Value-added tax (VAT) | Revenue of sales goods or services | 5%、6%、9%、13%、 |
| City construction tax | Actual VAT paid | 5%、7% |
| Education surcharge | Actual VAT paid | 3% |
| Local education surcharge | Actual VAT paid | 2% |
| Enterprise income tax (EIT) | Current period taxable profit | 15% or 25% |
| Real estate tax | 70% of cost of own property or revenue from leasing property | 1.2% or 12% |
| Land use tax | Land using right area | Fixed amount per square meter |
| Other tax | According to the relevant provisions of the state and local |
Notes for tax entities with different EIT rate
| Tax entities | EIT rate |
| Bingshan Refrigeration & Heat Transfer Technologies Co. ,Ltd | 15% |
| Dalian Bingshan Group Engineering Co., Ltd. | 25% |
| Dalian Bingshan Group Sales Co., Ltd. | 25% |
| Dalian Bingshan Air-conditioning Equipment Co., Ltd. | 15% |
| Dalian Bingshan Guardian Automation Co., Ltd. | 15% |
| Dalian Bingshan-RYOSETSU Quick Freezing Equipment Co., Ltd. | 25% |
| Wuhan New World Refrigeration Industrial Co., Ltd. | 15% |
| Dalian Bingshan Engineering & Trading Co., Ltd | 25% |
| Dalian Universe Thermal Technology Co.,Ltd. | 15% |
| Chengdu Bingshan Refrigeration Engineering Co., Ltd. | 25% |
| Wuhan New World Air-conditioning Refrigeration Engineering Co., Ltd | 25% |
| Wuhan Lanning Energy Technology Co., Ltd | 25% |
| Sonyo Compressor (Dalian)Co.,Ltd. | 15% |
| Sonyo Refrigeration System (Dalian) Co., Ltd. | 15% |
| Sonyo Refrigeration (Dalian) Co., Ltd. | 15% |
IV. Taxation
1. The main applicable tax and rate to the Company as follows:
| Tax | Tax base | Tax rate |
| Value-added tax (VAT) | Revenue of sales goods or services | 5%、6%、9%、13%、 |
| City construction tax | Actual VAT paid | 5%、7% |
| Education surcharge | Actual VAT paid | 3% |
| Local education surcharge | Actual VAT paid | 2% |
| Enterprise income tax (EIT) | Current period taxable profit | 15% or 25% |
| Real estate tax | 70% of cost of own property or revenue from leasing property | 1.2% or 12% |
| Land use tax | Land using right area | Fixed amount per square meter |
| Other tax | According to the relevant provisions of the state and local |
Notes for tax entities with different EIT rate
| Tax entities | EIT rate |
| Bingshan Refrigeration & Heat Transfer Technologies Co. ,Ltd | 15% |
| Dalian Bingshan Group Engineering Co., Ltd. | 25% |
| Dalian Bingshan Group Sales Co., Ltd. | 25% |
| Dalian Bingshan Air-conditioning Equipment Co., Ltd. | 15% |
| Dalian Bingshan Guardian Automation Co., Ltd. | 15% |
| Dalian Bingshan-RYOSETSU Quick Freezing Equipment Co., Ltd. | 25% |
| Wuhan New World Refrigeration Industrial Co., Ltd. | 15% |
| Dalian Bingshan Engineering & Trading Co., Ltd | 25% |
| Dalian Universe Thermal Technology Co.,Ltd. | 15% |
| Chengdu Bingshan Refrigeration Engineering Co., Ltd. | 25% |
| Wuhan New World Air-conditioning Refrigeration Engineering Co., Ltd | 25% |
| Wuhan Lanning Energy Technology Co., Ltd | 25% |
| Sonyo Compressor (Dalian)Co.,Ltd. | 15% |
| Sonyo Refrigeration System (Dalian) Co., Ltd. | 15% |
| Sonyo Refrigeration (Dalian) Co., Ltd. | 15% |
2. Tax preference
(1) The Company obtained the qualification of high and new technology enterprises inDecember, 2023. The Certificate No. is GR202321201041. According to the tax bureauapproval, the Company can be granted for the preferential tax policy of enterprise income taxrate of 15% from FY2023 to FY2025.The Company’s subsidiary, Dalian Bingshan Air-conditioning Equipment Co., Ltd. obtained thequalification of high and new technology enterprises in December, 2023. The Certificate No. isGR202321201161. According to the tax bureau approval, the Company can be granted for thepreferential tax policy of enterprise income tax rate of 15% from FY2023 to FY2025.The Company’s subsidiary, Dalian Bingshan Guardian Automation Co., Ltd. obtained thequalification of high and new technology enterprises in December, 2024 The Certificate No. isGR202421200978. According to the tax bureau approval, the Company can be granted for thepreferential tax policy of enterprise income tax rate of 15% from FY2024 to FY2026.The Company’s subsidiary, Wuhan New World Refrigeration Industrial Co., Ltd obtained thequalification of high and new technology enterprises in November, 2024. The Certificate No. isGR202442000336. According to the tax bureau approval, the Company can be granted for thepreferential tax policy of enterprise income tax rate of 15% from FY2024 to FY2026.The Company’s subsidiary, Dalian Universe Thermal Technology Co.,Ltd. obtained thequalification of high and new technology enterprises in December, 2023. The Certificate No. isGR202321200114. According to the tax bureau approval, the Company can be granted for thepreferential tax policy of enterprise income tax rate of 15% from FY2023 to FY2025.The Company’s subsidiary, Sonyo Compressor (Dalian)Co.,Ltd.(hereinafter referred to as“Sonyo Compressor” obtained the qualification of high and new technology enterprises inDecember, 2024. The Certificate No. is GR202421200617. According to the tax bureauapproval, the Company can be granted for the preferential tax policy of enterprise income taxrate of 15% from FY2024 to FY2026.The Company’s subsidiary, Sonyo Refrigeration System (Dalian) Co., Ltd.(hereinafter referredto as “Sonyo Refrigeration System” obtained the qualification of high and new technologyenterprises in December, 2023. The Certificate No. is GR202321201152. According to the taxbureau approval, the Company can be granted for the preferential tax policy of enterpriseincome tax rate of 15% from FY2023 to FY2025.The Company’s subsidiary, Sonyo Refrigeration (Dalian) Co., Ltd.(hereinafter referred to as“Sonyo Refrigeration” obtained the qualification of high and new technology enterprises inDecember, 2024. The Certificate No. is GR202421200850. According to the tax bureauapproval, the Company can be granted for the preferential tax policy of enterprise income taxrate of 15% from FY2024 to FY2026.
(2) According to the Announcement of the Ministry of Finance and Tax Administration on theaccelerate VAT Deduction for advanced manufacturing enterprise (Announcement No. 43, 2023),within the period from January 1st, 2023 to December 31st,2027, the advance enterprises are
allowed for input VAT deduction at 5% acceleration rate during the current period. TheCompany and its subsidiaries, Dalian Bingshan Air-conditioning Equipment, Dalian BingshanGuardian Automation, Wuhan New World Refrigeration, Dalian Universe Thermal, SonyoCompressor, Sonyo Refrigeration and Sonyo Refrigeration System enjoy the tax preference.
V. Notes to Consolidated Financial Statements
The following disclosure date on this financial statement without special indication, “opening”refers to January 1, 2024; “closing” refers to December 31, 2024; “current period” refers to theperiod from January 1, 2024 to December 31, 2024; and “last period” refers to the period fromJanuary 1, 2023 to December 31, 2023; with the currency unit RMB.
1. Monetary fund
| Item | Closing Balance | Opening Balance |
| Cash on hand | 28,585.88 | 70,750.93 |
| Cash in bank | 1,011,911,100.49 | 863,950,616.72 |
| Other cash and cash equivalents | 30,204,058.30 | 87,018,202.46 |
| Total | 1,042,143,744.67 | 951,039,570.11 |
| Including: sum of deposits overseas |
Note1: within the bank deposits, 50,406,111.11 Yuan was time deposits and interest income;frozen fund of 6,512,838.08 Yuan, guarantee deposit for migrant worker of 251,006.12Yuan and restricted fund for migrant worker salary of 3,190,047.46 Yuan.Note2: Other monetary funds are bank acceptance deposit 15,278,927.28 Yuan, deposit for
letter of guarantee is 14,925,131.02 Yuan.
2. Notes receivable
(1) Category of notes receivable
| Items | Closing Balance | Opening Balance |
| Bank acceptance notes | 331,617,161.92 | 335,914,443.51 |
| Trade acceptance notes | 21,237,701.56 | 17,514,478.91 |
| Total | 352,854,863.48 | 353,428,922.42 |
(2) Categories according to bad debts provision method
| Items | Closing Balance | ||||
| Booking balance | Provision | Booking value | |||
| Amount | % | Amount | % | ||
| Bad debts | 354,276,459.03 | 100.00 | 1,421,595.55 | 0.40 | 352,854,863.48 |
| provision based on group | |||||
| Including: bank acceptance notes | 331,617,161.92 | 93.60 | - | - | 331,617,161.92 |
| Trade acceptance notes | 22,659,297.11 | 6.40 | 1,421,595.55 | 6.27 | 21,237,701.56 |
| Total | 354,276,459.03 | 100.00 | 1,421,595.55 | 0.40 | 352,854,863.48 |
(Continued)
| Items | Opening balance | ||||
| Booking balance | Provision | Booking value | |||
| Amount | % | Amount | % | ||
| Bad debts provision based on group | 354,313,722.61 | 100.00 | 884,800.19 | 0.25 | 353,428,922.42 |
| Including: bank acceptance notes | 335,914,443.51 | 94.81 | - | - | 335,914,443.51 |
| Trade acceptance notes | 18,399,279.10 | 5.19 | 884,800.19 | 4.81 | 17,514,478.91 |
| Total | 354,313,722.61 | 100.00 | 884,800.19 | 0.25 | 353,428,922.42 |
Categories based on group
| Items | Closing Balance | ||
| Booking balance | Provision | Provision（%） | |
| Bank acceptance notes | 331,617,161.92 | - | - |
| Trade acceptance notes | 22,659,297.11 | 1,421,595.55 | 6.27 |
| Total | 354,276,459.03 | 1,421,595.55 | — |
(3) Bad debt provision of notes receivable accrued, collected and reversed
| Category | Opening balance | Change during the year | Closing Balance | ||
| Accrued | Collected/ reversed | Written-off | |||
| Bad debt provision | 884,800.19 | 626,722.11 | 89,926.75 | - | 1,421,595.55 |
| Total | 884,800.19 | 626,722.11 | 89,926.75 | - | 1,421,595.55 |
(4) Pledged notes receivable up to the end of year.
| Items | Closing pledged amount |
| Bank acceptance notes | 8,555,115.03 |
| Total | 8,555,115.03 |
(5) Notes receivable endorsed or discounted but not mature at the end of year
| Item | Closing amount derecognized | Closing amount still recognized |
| Bank acceptance notes | 144,157,056.07 | |
| Trade acceptance notes | 1,681,364.49 | |
| Total | 145,838,420.56 |
(6) Notes receivable written off: none
3. Accounts receivable
(1) Aging of accounts receivable
| Account Age | Closing Balance | Opening Balance |
| Within 1 year（incl 1 year） | 995,252,568.14 | 1,075,007,175.23 |
| 1-2 years | 360,274,915.33 | 406,082,608.66 |
| 2-3 years | 231,407,610.78 | 207,201,791.50 |
| Over 3 years | 484,919,878.50 | 453,345,639.16 |
| Of which: 3-4years | 113,036,063.46 | 140,135,046.24 |
| 4-5years | 125,797,609.62 | 48,619,109.18 |
| Over 5 years | 246,086,205.42 | 264,591,483.74 |
| Total | 2,071,854,972.75 | 2,141,637,214.55 |
(2) Category of accounts receivable based on bad debt provision method
| Items | Closing Balance | ||||
| Booking balance | Provision | Booking value | |||
| Amount | % | Amount | % | ||
| Bad debt provision on individual basis | 13,071,940.81 | 0.63 | 10,264,390.35 | 78.52 | 2,807,550.46 |
| Bad debt provision on group | 2,058,783,031.94 | 99.37 | 569,356,233.50 | 27.65 | 1,489,426,798.44 |
| Including: aging as characteristics of credit risk | 2,058,783,031.94 | 99.37 | 569,356,233.50 | 27.65 | 1,489,426,798.44 |
| Total | 2,071,854,972.75 | 100.00 | 579,620,623.85 | 27.98 | 1,492,234,348.90 |
(Continued)
| Items | Opening balance | ||||
| Booking balance | Provision | Booking value | |||
| Amount | % | Amount | % | ||
| Bad debt provision on individual basis | 14,372,020.85 | 0.67 | 11,564,470.39 | 80.47 | 2,807,550.46 |
| Bad debt provision on group | 2,127,265,193.70 | 99.33 | 553,638,820.00 | 26.03 | 1,573,626,373.70 |
| Including: aging as characteristics of credit risk | 2,127,265,193.70 | 99.33 | 553,638,820.00 | 26.03 | 1,573,626,373.70 |
| Total | 2,141,637,214.55 | 100.00 | 565,203,290.39 | 26.39 | 1,576,433,924.16 |
1) Bad debt provisions on individual basis
| Name | Opening balance | Closing Balance | ||||
| Accounts receivable | Provision for bad debts | Accounts receivable | Provision for bad debts | Proportion (%) | Reason | |
| Company 1 | 6,496,000.00 | 5,244,096.20 | 6,496,000.00 | 5,244,096.20 | 80.73 | Full recovery is not expected |
| Other company 1 | 7,876,020.85 | 6,320,374.19 | 6,575,940.81 | 5,020,294.15 | 76.34 | Recovery is not expected |
| Total | 14,372,020.85 | 11,564,470.39 | 13,071,940.81 | 10,264,390.35 | — | |
2) Bad debt provisions on group basis
| Aging | Closing Balance | ||
| Accounts receivable | Provision for bad debts | Drawing proportion (%) | |
| Within 1 year | 995,252,568.14 | 56,084,512.67 | 5.64 |
| 1 to 2 years | 360,274,915.33 | 59,855,315.02 | 16.61 |
| 2 to 3 years | 229,848,838.06 | 70,601,786.26 | 30.72 |
| 3 to 4 years | 107,977,806.57 | 52,580,990.59 | 48.70 |
| 4 to 5years | 124,882,698.42 | 89,687,423.54 | 71.82 |
| Over 5 years | 240,546,205.42 | 240,546,205.42 | 100.00 |
| Total | 2,058,783,031.94 | 569,356,233.50 | — |
(1) Bad debt provision of current period
| Category | Opening balance | Change during the year | Closing Balance | |||
| Accrued | Collected/ reversed | Written-off | Others | |||
| Bad debt provision | 565,203,290.39 | 37,834,982.00 | 22,044,663.66 | 4,992,404.37 | 3,619,419.49 | 579,620,623.85 |
| Total | 565,203,290.39 | 37,834,982.00 | 22,044,663.66 | 4,992,404.37 | 3,619,419.49 | 579,620,623.85 |
(4) Accounts receivable written off in current period
| Item | Written off amount |
| Receivable actually written off | 4,992,404.37 |
(5) Top 5 receivables and contract assets
The sum of top 5 of receivables and contract assets is 262,076,417.63Yuan, represents 11.46%of closing balance of receivables and contract assets and bad debt provision of61,059,997.71Yuan shall be made.
4. Contract asset
(1) contract asset
| Items | Closing Balance | ||
| Booking balance | Provision | Carrying amount | |
| Undue warranty | 198,615,784.30 | 21,724,512.68 | 176,891,271.62 |
| Unsettled receivable of revenue recognized over time | 16,623,886.64 | 8,754,217.94 | 7,869,668.70 |
| Total | 215,239,670.94 | 30,478,730.62 | 184,760,940.32 |
(continued)
| Items | Opening balance | ||
| Booking balance | Provision | Carrying amount | |
| Undue warranty | 265,440,261.85 | 37,369,046.20 | 228,071,215.65 |
| Unsettled receivable of revenue recognized over time | 18,840,435.97 | 9,834,772.91 | 9,005,663.06 |
| Total | 284,280,697.82 | 47,203,819.11 | 237,076,878.71 |
(2) Significant change of the account
| Items | Amount | Reason |
| Undue warranty | -66,824,477.55 | Change of consolidation scope |
| Unsettled receivable of revenue recognized over time | -2,216,549.33 | Settled during the year |
| Total | -69,041,026.88 |
(3) Category of contract asset based on bad debt provision method
| Items | Closing Balance | ||||
| Booking balance | Provision | Booking value | |||
| Amount | % | Amount | % | ||
| Bad debt provision on individual basis | 1,709,948.80 | 0.79 | 1,709,948.80 | 100.00 | - |
| Bad debt provision on group | 213,529,722.14 | 99.21 | 28,768,781.82 | 13.47 | 184,760,940.32 |
| Including: aging as characteristics of credit risk | 213,529,722.14 | 99.21 | 28,768,781.82 | 13.47 | 184,760,940.32 |
| Total | 215,239,670.94 | 100.00 | 30,478,730.62 | 14.16 | 184,760,940.32 |
(continued)
| Items | Opening Balance | ||||
| Booking balance | Provision | Booking value | |||
| Amount | % | Amount | % | ||
| Bad debt provision on individual basis | 1,709,948.80 | 0.60 | 1,709,948.80 | 100.00 | - |
| Bad debt provision on group | 282,570,749.02 | 99.40 | 45,493,870.31 | 16.10 | 237,076,878.71 |
| Including: aging as characteristics of credit risk | 282,570,749.02 | 99.40 | 45,493,870.31 | 16.10 | 237,076,878.71 |
| Total | 284,280,697.82 | 100.00 | 47,203,819.11 | 16.60 | 237,076,878.71 |
1) Bad debt provisions on individual basis
| Name | Opening balance | Closing Balance | ||||
| Accounts receivable | Provision for bad debts | Accounts receivable | Provision for bad debts | Proportion (%) | Reason | |
| Other companie2 | 1,709,948.80 | 1,709,948.80 | 1,709,948.80 | 1,709,948.80 | 100.00 | Recovery is not expected |
| Total | 1,709,948.80 | 1,709,948.80 | 1,709,948.80 | 1,709,948.80 | — | |
2) Bad debt provisions on group basis
| Aging | Closing Balance | ||
| Accounts receivable | Provision for bad debts | Drawing proportion (%) | |
| Within 1 year | 130,206,254.23 | 8,187,690.23 | 6.29 |
| 1 to 2 years | 59,666,466.96 | 9,087,331.73 | 15.23 |
| 2 to 3 years | 13,388,704.45 | 4,091,459.94 | 30.56 |
| 3 to 4 years | 3,289,473.18 | 1,613,907.81 | 49.06 |
| 4 to 5years | 4,274,438.84 | 3,084,007.63 | 72.15 |
| Over 5 years | 2,704,384.48 | 2,704,384.48 | 100.00 |
| Total | 213,529,722.14 | 28,768,781.82 | —— |
(4) Bad debt provision of current period
| Category | Opening balance | Change during the year | Closing Balance | |||
| Accrued | Collected/ reversed | Written-off | Others | |||
| Undue warranty | 37,369,046.20 | - | 15,936,503.20 | - | - | 21,432,543.00 |
| Unsettled receivable of revenue recognized over time | 9,834,772.91 | - | 788,585.29 | - | - | 9,046,187.62 |
| Total | 47,203,819.11 | - | 16,725,088.49 | - | - | 30,478,730.62 |
(5) Contract asset actually written off
None
5. Finance receivable
(1) Category of finance receivable
| Items | Closing Balance | Opening Balance |
| Bank acceptance notes | 382,073,283.27 | 303,585,218.53 |
| Total | 382,073,283.27 | 303,585,218.53 |
(2) Category of accounts receivable based on bad debt provision method
| Items | Closing Balance | ||
| Booking balance | Provision | Booking value | |
| Amount | % | Amount | % | ||
| Bad debt provision on group | 382,073,283.27 | 100.00 | - | - | 382,073,283.27 |
| Including: bank acceptance notes | 382,073,283.27 | 100.00 | - | - | 382,073,283.27 |
| Total | 382,073,283.27 | 100.00 | - | - | 382,073,283.27 |
(Continued)
| Items | Opening balance | ||||
| Booking balance | Provision | Booking value | |||
| Amount | % | Amount | % | ||
| Bad debt provision on group | 303,585,218.53 | 100.00 | - | - | 303,585,218.53 |
| Including: aging as characteristics of credit risk | 303,585,218.53 | 100.00 | - | - | 303,585,218.53 |
| Total | 303,585,218.53 | 100.00 | - | - | 303,585,218.53 |
(3) Pledged notes receivable up to the end of year.
| Items | Closing pledged amount |
| Bank acceptance notes | 129,115,879.46 |
| Total | 129,115,879.46 |
6. Other receivables
| Items | Closing Balance | Opening Balance |
| Dividend receivable | 11,150.00 | 14,495.00 |
| Other receivables | 45,748,416.06 | 41,381,728.27 |
| Total | 45,759,566.06 | 41,396,223.27 |
6.1. Dividends receivable
(1) Classification
| Company | Closing Balance | Opening Balance |
| Wuhan Steel and Electricity Co., Ltd. | 11,150.00 | 14,495.00 |
| Total | 11,150.00 | 14,495.00 |
6.2. Other receivables
(1) The categories of other receivable according to nature
| Items | Closing Balance | Opening Balance |
| Receivables and payables | 31,791,903.41 | 33,092,423.14 |
| Security deposit | 30,974,881.78 | 30,103,093.46 |
| Petty cash | 3,488,045.56 | 3,669,152.52 |
| Others | 17,138,048.40 | 11,397,105.01 |
| Total | 83,392,879.15 | 78,261,774.13 |
(2) Aging of other receivable
| Account Age | Closing Balance | Opening Balance |
| Within 1 year（incl 1 year） | 33,984,236.78 | 23,517,039.35 |
| 1-2 years | 2,933,743.71 | 8,134,653.15 |
| 2-3 years | 4,459,628.80 | 9,354,562.84 |
| Over 3 years | 42,015,269.86 | 37,255,518.79 |
| Of which: 3-4years | 6,493,865.77 | 24,151,505.82 |
| 4-5years | 23,958,940.09 | 6,300,480.70 |
| Over 5 years | 11,562,464.00 | 6,803,532.27 |
| Total | 83,392,879.15 | 78,261,774.13 |
(3) Category of other receivable based on bad debt provision method
| Items | Closing Balance | ||||
| Booking balance | Provision | Booking value | |||
| Amount | % | Amount | % | ||
| Bad debt provision on individual basis | 24,816,580.94 | 29.76 | 24,816,580.94 | 100.00 | - |
| Bad debt provision on group | 58,576,298.21 | 70.24 | 12,827,882.15 | 21.90 | 45,748,416.06 |
| Including: aging as characteristics of credit risk | 58,576,298.21 | 70.24 | 12,827,882.15 | 21.90 | 45,748,416.06 |
| Total | 83,392,879.15 | 100.00 | 37,644,463.09 | 45.14 | 45,748,416.06 |
(Continued)
| Items | Opening balance | ||||
| Booking balance | Provision | Booking value | |||
| Amount | % | Amount | % | ||
| Bad debt provision on individual basis | 24,935,080.94 | 31.86 | 24,935,080.94 | 100.00 | - |
| Bad debt provision on group | 53,326,693.19 | 68.14 | 11,944,964.92 | 22.40 | 41,381,728.27 |
| Including: aging as characteristics of credit risk | 53,326,693.19 | 68.14 | 11,944,964.92 | 22.40 | 41,381,728.27 |
| Total | 78,261,774.13 | 100.00 | 36,880,045.86 | 47.12 | 41,381,728.27 |
1) Bad debt provisions on individual basis
| Name | Opening balance | Closing Balance | ||||
| Accounts receivable | Provision for bad debts | Accounts receivable | Provision for bad debts | Proportion (%) | Reason | |
| Transfer of debt receivables | 20,132,963.79 | 20,132,963.79 | 20,132,963.79 | 20,132,963.79 | 100.00 | Recovery is not expected |
| Dalian Shengda Construction Engineering Co., Ltd | 3,878,617.15 | 3,878,617.15 | 3,878,617.15 | 3,878,617.15 | 100.00 | Recovery is not expected |
| QINGDAO FREE TRADE PORT ZONE INTERNATIONAL COLD CHAIN LOGISTICS TRADE CENTER CO.,LTD. | 500,000.00 | 500,000.00 | 500,000.00 | 500,000.00 | 100.00 | applied for enforcement and is not expected to be recovered in full |
| Mudanjiang Zhongnongpi Cold Chain Logistics Co., Ltd | 300,000.00 | 300,000.00 | 300,000.00 | 300,000.00 | 100.00 | Preserved in litigation and not expected to be recovered |
| Wuhan Xinlian Technology Development Co., Ltd | 118,500.00 | 118,500.00 | - | - | - | |
| Chen xiujuan | 2,000.00 | 2,000.00 | 2,000.00 | 2,000.00 | 100.00 | Recovery is not expected |
| Chen yanhao | 1,600.00 | 1,600.00 | 1,600.00 | 1,600.00 | 100.00 | Recovery is not expected |
| Zheng Jinlian | 1,400.00 | 1,400.00 | 1,400.00 | 1,400.00 | 100.00 | Recovery is not expected |
| Total | 24,935,080.94 | 24,935,080.94 | 24,816,580.94 | 24,816,580.94 | — |
2) Bad debt provisions on group basis
| Aging | Closing Balance | ||
| Accounts receivable | Provision for bad debts | Drawing proportion (%) | |
| Within 1 year | 33,984,236.78 | 1,232,619.56 | 3.63 |
| 1 to 2 years | 2,933,743.71 | 157,057.23 | 5.35 |
| 2 to 3 years | 4,459,628.80 | 667,033.45 | 14.96 |
| 3 to 4 years | 5,666,505.77 | 2,046,836.21 | 36.12 |
| 4 to 5years | 2,439,947.50 | 1,499,593.16 | 61.46 |
| Over 5 years | 9,092,235.65 | 7,224,742.54 | 79.46 |
| Total | 58,576,298.21 | 12,827,882.15 | — |
3) The bad debt provision of other receivables
| Bad debt provision | 1st stage | 2nd stage | 3rd stage | Total |
| Expected credit loss within 12 months | Expected credit loss within the whole period (no impairment) | Expected credit loss within the whole period (impairment incurred) | ||
| Opening balance | 2,343,658.22 | - | 34,536,387.64 | 36,880,045.86 |
| Opening balance during the year | — | — | — | — |
| --transfer to the 2nd stage | ||||
| --transfer to the 3rd stage | -10,980.00 | - | 10,980.00 | - |
| --reverse to the 2nd stage | - | - | - | - |
| ----reverse to | - | - | - | - |
| the 1st stage | ||||
| Accrued | 421,712.21 | - | 2,537,193.32 | 2,958,905.53 |
| Reverse | 776,184.56 | - | 1,299,803.74 | 2,075,988.30 |
| Cancelation | - | - | - | - |
| Written off | - | - | 118,500.00 | 118,500.00 |
| Other movement | - | - | - | - |
| Closing balance | 1,978,205.87 | - | 35,666,257.22 | 37,644,463.09 |
(4) Provision for bad debt
| Category | Opening balance | Change during the year | Closing Balance | |||
| Accrued | Collected/ reversed | Written-off | Others | |||
| Bad debt provision | 36,880,045.86 | 2,958,905.53 | 2,075,988.30 | 118,500.00 | - | 37,644,463.09 |
| Total | 36,880,045.86 | 2,958,905.53 | 2,075,988.30 | 118,500.00 | - | 37,644,463.09 |
(5) Other receivables written off in current period: none.
| Item | Amount to be written off |
| Other receivables written off actually | 118,500.00 |
(6) Other receivables from the top 5 debtors based on closing balance
| Name | Category | Closing Balance | Aging | % of total | Closing Balance of Provision |
| State tax office | Tax refund | 7,783,496.66 | Within 1 year | 9.33 | 284,875.98 |
| Wuhan Xinlian Technology Development Co., Ltd | Rental | 3,284,533.27 | Within 1 year | 3.94 | 120,213.92 |
| Moyu County Agricultural Bureau | Deposit | 2,548,847.50 | 4-5years Over 5 years | 3.06 | 2,348,040.21 |
| Hangzhou ZhonghongNew Energy Technology Co., Ltd | Deposit | 2,476,894.20 | 3-4years | 2.97 | 1,297,644.87 |
| Chengdu BOE Optoelectronics Technology Co., Ltd | Deposit | 2,000,000.00 | Within 1 year | 2.40 | 73,200.00 |
| Total | 18,093,771.63 | - | 21.70 | 4,123,974.98 |
7. Prepayments
(1) Aging of prepayments
| Items | Closing Balance | Opening Balance | ||
| Amount | Percentage (%) | Amount | Percentage (%) | |
| Within 1 year | 140,193,253.25 | 85.46 | 133,068,644.50 | 86.75 |
| 1 to 2 years | 15,625,104.20 | 9.53 | 12,010,696.67 | 7.83 |
| 2 to 3 years | 3,927,719.36 | 2.39 | 2,578,747.06 | 1.68 |
| Over 3 years | 4,296,563.25 | 2.62 | 5,730,572.25 | 3.74 |
| Total | 164,042,640.06 | 100.00 | 153,388,660.48 | 100.00 |
(2) Prepayments from the top 5 debtors based on closing balance
The sum of top 5 of prepayment is 79,026,004.94Yuan, represents 48.17% of closingbalance of prepayment.
8. Inventories
(1) Categories of inventories
| Item | Closing Balance | ||
| Book value | Provision for decline | Net book value | |
| Cost to fulfill the contract | 544,464,520.45 | 12,895,734.89 | 531,568,785.56 |
| Finished goods | 453,823,794.09 | 41,658,999.95 | 412,164,794.14 |
| Raw materials | 264,329,161.20 | 33,708,343.75 | 230,620,817.45 |
| Working in progress | 172,761,094.92 | 19,583,788.41 | 153,177,306.51 |
| Self-manufactured semi-finished products | 52,174,151.33 | - | 52,174,151.33 |
| Goods on transit | 11,060,053.54 | - | 11,060,053.54 |
| Materials on consignment for further processing | 2,674,187.81 | - | 2,674,187.81 |
| Low-value consumable | 213,692.47 | - | 213,692.47 |
| Total | 1,501,500,655.81 | 107,846,867.00 | 1,393,653,788.81 |
(Continued)
| Item | Opening Balance | ||
| Book value | Provision for decline | Net book value | |
| Cost to fulfill the contract | 657,703,661.17 | 15,425,401.03 | 642,278,260.14 |
| Finished goods | 524,399,789.91 | 47,832,216.91 | 476,567,573.00 |
| Raw materials | 282,868,685.78 | 31,011,520.30 | 251,857,165.48 |
| Working in progress | 211,744,888.60 | 10,130,805.54 | 201,614,083.06 |
| Self-manufactured semi-finished products | 35,347,357.53 | - | 35,347,357.53 |
| Materials on consignment for further processing | 21,317,653.86 | 60,394.18 | 21,257,259.68 |
| Goods on transit | 8,313,813.04 | 821,759.89 | 7,492,053.15 |
| Properties written off debtors | 2,708,646.00 | 1,149,186.00 | 1,559,460.00 |
| Low-value consumable | 166,267.10 | - | 166,267.10 |
| Total | 1,744,570,762.99 | 106,431,283.85 | 1,638,139,479.14 |
(2) Provision for decline in the value of inventories and contract fulfillment costs
| Item | Opening Balance | Increase | Decrease | Closing Balance | ||
| Accrual | Others transferred | Reverse/ Written- off | Others transferred | |||
| Raw materials | 31,011,520.30 | 4,481,212.92 | 1,784,389.47 | 33,708,343.75 | ||
| WIP | 10,130,805.54 | 10,084,266.95 | 631,284.08 | 19,583,788.41 | ||
| Finished goods | 47,832,216.91 | 14,429,151.40 | 20,602,368.36 | 41,658,999.95 | ||
| Cost to fulfill the contract | 15,425,401.03 | 219,548.10 | 2,749,214.24 | 12,895,734.89 | ||
| Materials on consignment for further processing | 60,394.18 | -60,394.18 | - | - | ||
| Goods on transit | 821,759.89 | - | 821,759.89 | - | ||
| Properties written off debtors | 1,149,186.00 | - | 1,149,186.00 | - | ||
| Total | 106,431,283.85 | 29,153,785.19 | 27,738,202.04 | 107,846,867.00 | ||
Accrual for provision for decline in the value of inventories
| Item | Basis for net realizable value recognition | Reasons for reverse/write-off |
| Raw materials | The amount deducting the expected cost to product completion, selling expense and relative tax from the estimated selling price. | Sold |
| WIP | Sold | |
| Finished goods | Sold | |
| Cost to fulfill the contract | Sold |
9. Non-current asset due within one year
| Item | Closing Balance | Opening Balance |
| Long term receivable due within 1 year | 57,550.43 | - |
| Total | 57,550.43 | - |
10. Other current assets
| Item | Closing Balance | Opening Balance |
| Input VAT to be deducted | 23,990,929.71 | 18,112,002.39 |
| Prepaid income tax | 2,123,365.65 | 3,216,096.82 |
| Contract acquisition cost | 1,267,914.24 | 4,532,291.00 |
| Prepaid VAT | 139,723.58 | 198,895.83 |
| Prepaid expenses | 114,445.28 | 15,056.29 |
| Total | 27,636,378.46 | 26,074,342.33 |
11. Long term receivable
(1) Details
| Item | Closing Balance | Discounted rate | ||
| Carrying amount | Provision | Book value | ||
| Lease premium | 150,589.20 | 10,571.36 | 140,017.84 | |
| ---Unrealized financing income | -22,010.37 | - | -22,010.37 | |
| Total | 150,589.20 | 10,571.36 | 140,017.84 | |
(2) Category of long-term receivable based on bad debt provision method
| Items | Closing Balance | ||||
| Booking balance | Provision | Booking value | |||
| Amount | % | Amount | % | ||
| Bad debt provision on group | 150,589.20 | 100 | 10,571.36 | 7.02 | 140,017.84 |
| Including: bank acceptance notes | 150,589.20 | 100 | 10,571.36 | 7.02 | 140,017.84 |
| Total | 150,589.20 | 100 | 10,571.36 | 7.02 | 140,017.84 |
1) The bad debt provision based on group of long-term receivables
| Aging | Closing Balance | ||
| Accounts receivable | Provision for bad debts | Drawing proportion (%) | |
| Within 1 year | 150,589.20 | 10,571.36 | 7.02 |
| Total | 150,589.20 | 10,571.36 | —— |
2) The bad debt provision under expected credit loss model
| Bad debt provision | 1st stage | 2nd stage | 3rd stage | Total |
| Expected credit loss within 12 months | Expected credit loss within the whole period (no impairment) | Expected credit loss within the whole period (impairment incurred) | ||
| Opening balance | - | - | - | - |
| Opening balance during the year | — | — | — | — |
| --transfer to the 2nd stage | - | - | - | - |
| --transfer to the 3rd stage | - | - | - | - |
| --reverse to the 2nd stage | - | - | - | - |
| ----reverse to the 1st stage | - | - | - | - |
| Accrued | 10,571.36 | - | - | 10,571.36 |
| Reverse | - | - | - | - |
| Cancelation | - | - | - | - |
| Written off | - | - | - | - |
| Other movement | - | - | - | - |
| Closing balance | 10,571.36 | - | - | 10,571.36 |
(3) Bad debt provision of long-term receivable for the year
| Category | Opening balance | Change during the year | Closing Balance | |||
| Accrued | Collected/ reversed | Written-off | Others | |||
| Bad debt provision | - | 10,571.36 | - | - | - | 10,571.36 |
| Total | - | 10,571.36 | - | - | - | 10,571.36 |
12.Long-term equity investments
| Investee | Beginning balance | Increase/Decrease | Ending balance | Provision for impairment | |||||||
| Increased | Decreased | Gains and losses recognized under the equity method | Adjustment of other comprehensive income | Change of other equity | Cash bonus or profits announced to issue | Provision for impairment of the current period | Others | ||||
| Associates | |||||||||||
| Dalian Honjo Chemical Co., Ltd | 9,892,253.52 | - | - | 356,820.48 | 10,249,074.00 | - | |||||
| Keihin-Grand Ocean Thermal Technology (Dalian)Co.,Ltd. | 57,579,975.00 | - | - | -4,257,688.27 | 53,322,286.73 | - | |||||
| Dalian Fuji Bingshan Vending Machine Co., Ltd. | 67,610,418.09 | - | - | -514,319.31 | 67,096,098.78 | - | |||||
| MHI Bingshan Refrigeration (Dalian) Co.,Ltd. | 16,543,655.54 | - | - | 202,819.43 | 16,746,474.97 | - | |||||
| Dalian Fuji Bingshan Vending Machine Sales Co., Ltd | - | - | - | - | - | ||||||
| Jiangsu Jingxue Insulation Technology Co.,Ltd (N4) | 144,354,903.91 | - | - | 4,400,840.64 | 3,220,344.00 | 145,535,400.55 | - | ||||
| Dalian Bingshan Metal Technology Co.,Ltd. | 173,250,850.13 | - | 34,931,610.00 | 28,344,672.03 | 30,759,188.94 | 135,904,723.22 | - | ||||
| Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd | 46,050,456.55 | - | 1,218,624.64 | 636,409.95 | 46,632,671.24 | - | |||||
| Wuhan Sikafu Power Control Equipment Co., Ltd | 5,992,434.76 | - | 494,251.11 | 6,486,685.87 | - | ||||||
| Total | 521,274,947.50 | - | 34,931,610.00 | 30,246,020.75 | 34,615,942.89 | 481,973,415.36 | - |
13.Other non-current financial assets
| Item | Closing Balance | Opening Balance |
| Financial assets classified as FVTPL | 1,683,852.59 | 164,024,771.63 |
| Including: equity instruments | 1,683,852.59 | 164,024,771.63 |
| Total | 1,683,852.59 | 164,024,771.63 |
14. Investment property
(1) Investment property measured as cost model
| Item | Property& building | Land-use-rights | Total |
| I. Initial cost | |||
| 1. opening balance | 246,173,617.85 | 26,094,438.38 | 272,268,056.23 |
| 2. addition | 4,838,025.49 | - | 4,838,025.49 |
| (1) FA\transferred from CIP | 4,838,025.49 | - | 4,838,025.49 |
| 3. decrease | 4,749,095.10 | - | 4,749,095.10 |
| (1) disposal | 2,708,646.00 | - | 2,708,646.00 |
| (2) others | 2,040,449.10 | - | 2,040,449.10 |
| 4. closing balance | 246,262,548.24 | 26,094,438.38 | 272,356,986.62 |
| II. Accumulated depreciation | — | — | — |
| 1. opening balance | 135,327,893.16 | 13,350,481.57 | 148,678,374.73 |
| 2. addition | 6,315,185.06 | 521,888.76 | 6,837,073.82 |
| (1) accrued/amortization | 5,663,731.15 | 521,888.76 | 6,185,619.91 |
| (2) FA\transferred from CIP | 651,453.91 | - | 651,453.91 |
| 3. decrease | 1,090,182.17 | - | 1,090,182.17 |
| (1) disposal | 8,743.66 | 8,743.66 | |
| (2) others | 1,081,438.51 | 1,081,438.51 | |
| 4. closing balance | 140,552,896.05 | 13,872,370.33 | 154,425,266.38 |
| III. Impairment reserve | — | — | — |
| 1. opening balance | - | - | - |
| 2. addition | - | - | - |
| 3. decrease | - | - | - |
| 4. closing balance | - | - | - |
| IV. Book value | — | — | — |
| 1. Closing book value | 105,709,652.19 | 12,222,068.05 | 117,931,720.24 |
| 2. Opening book value | 110,845,724.69 | 12,743,956.81 | 123,589,681.50 |
(2) Investment property without ownership certificate
| Item | Book value | Reason |
| Plant | 11,756,581.06 | Because the land use right and the plant’s ownership belong to different person, the deed of the plant was not obtained. In 2023, the land use right is obtained, the certificate of the plant ownership is in progress |
| Rihang Apartment | 918,201.57 | The documents are not ready in full, the certificate of the building ownership can not be obtained |
15. Fixed assets
| Items | Closing Book Value | Opening Book Value |
| Fixed asset | 1,211,794,069.63 | 1,291,851,402.46 |
| Fixed asset disposal | - | - |
| Total | 1,211,794,069.63 | 1,291,851,402.46 |
(1) Fixed assets detail
| Item | Property& buildings | Machinery equipment | Transportation equipment | Other equipment | Total |
| I. Initial cost | |||||
| 1.Opening balance | 984,762,292.94 | 1,860,863,124.51 | 26,414,272.96 | 248,448,105.42 | 3,120,487,795.83 |
| 2. Increase | 12,183,574.51 | 56,432,801.76 | 1,566,348.74 | 18,736,019.07 | 88,918,744.08 |
| (1) Purchase | - | 5,903,608.99 | 1,264,136.35 | 2,824,527.38 | 9,992,272.72 |
| (2) Transferred from construction-in- progress | 10,143,125.41 | 50,529,192.77 | 302,212.39 | 15,911,491.69 | 76,886,022.26 |
| (3) financial lease | - | - | - | - | - |
| (4) investment | 2,040,449.10 | - | - | - | 2,040,449.10 |
| 3. Decrease | 4,608,045.19 | 152,361,604.74 | 4,524,956.89 | 26,296,697.90 | 187,791,304.72 |
| (1) Disposal | 2,478,665.70 | 152,361,604.74 | 4,524,956.89 | 26,296,697.90 | 185,661,925.23 |
| (2) transferred to investment property | 2,129,379.49 | - | - | - | 2,129,379.49 |
| 4.Closing balance | 992,337,822.26 | 1,764,934,321.53 | 23,455,664.81 | 240,887,426.59 | 3,021,615,235.19 |
| II. Accumulated depreciation | |||||
| 1.Opening balance | 343,048,484.83 | 1,281,264,893.77 | 18,926,836.54 | 169,991,538.16 | 1,813,231,753.30 |
| 2. Increase | 30,542,895.37 | 91,310,418.67 | 1,541,494.28 | 14,020,350.18 | 137,415,158.50 |
| (1) Accrued | 29,461,456.86 | 91,310,418.67 | 1,541,494.28 | 14,020,350.18 | 136,333,719.99 |
| (2) Investment | 1,081,438.51 | - | - | - | 1,081,438.51 |
| 3. Decrease | 1,497,964.76 | 125,312,442.36 | 3,554,272.85 | 21,350,238.08 | 151,714,918.05 |
| (1) Disposal | 846,510.85 | 125,312,442.36 | 3,554,272.85 | 21,350,238.08 | 151,063,464.14 |
| (2) transferred to investment | 651,453.91 | - | - | - | 651,453.91 |
| 4.Closing balance | 372,093,415.44 | 1,247,262,870.08 | 16,914,057.97 | 162,661,650.26 | 1,798,931,993.75 |
| III. Impairment reserve | |||||
| 1.Opening balance | 1,125,906.87 | 10,009,682.05 | 286,519.26 | 3,982,531.89 | 15,404,640.07 |
| 2. Increase | |||||
| 3. Decrease | - | 3,173,153.83 | - | 1,342,314.43 | 4,515,468.26 |
| (1) Disposal | - | 3,173,153.83 | - | 1,342,314.43 | 4,515,468.26 |
| 4.Closing balance | 1,125,906.87 | 6,836,528.22 | 286,519.26 | 2,640,217.46 | 10,889,171.81 |
| IV.Book value | |||||
| 1.Closing book value | 619,118,499.95 | 510,834,923.23 | 6,255,087.58 | 75,585,558.87 | 1,211,794,069.63 |
| 2.Opening book value | 640,587,901.24 | 569,588,548.69 | 7,200,917.16 | 74,474,035.37 | 1,291,851,402.46 |
(2)Fixed assets without ownership certificate
| Item | Book value | Reason |
| Self -constructed buildings | 29,824,686.02 | Self-constructed buildings of Sonyo Compressor and Sonyo Refrigeration without the land use right, the certificate of the plant ownership can not be obtained. |
| Rihang Apartment | 918,201.63 | The documents are not ready in full, the certificate of the building ownership can not be obtained. |
16. Construction-in-progress
| Item | Closing book value | Opening book value |
| Construction-in-progress | 86,221,660.80 | 114,801,351.21 |
| Construction materials | - | - |
| Total | 86,221,660.80 | 114,801,351.21 |
(1) Construction-in-progress details
| Item | Closing balance | Opening balance | ||||
| Book balance | Provision | Book Value | Book balance | Provision | Book value | |
| Buildings & reconstruction | 29,766,943.79 | - | 29,766,943.79 | 26,282,803.78 | - | 26,282,803.78 |
| Improvement of machinery | 69,390,477.81 | 15,064,649.38 | 54,325,828.43 | 83,833,793.88 | - | 83,833,793.88 |
| Software of intelligent manufacture | 2,128,888.58 | - | 2,128,888.58 | 4,684,753.55 | - | 4,684,753.55 |
| Total | 101,286,310.18 | 15,064,649.38 | 86,221,660.80 | 114,801,351.21 | - | 114,801,351.21 |
(2) Change in the significant construction in progress
| Name | Opening balance | Increase | Decrease | Closing balance | |
| Transfer to FA/ Intangible assets | Other decrease | ||||
| Improvement of machinery | 59,648,413.52 | 11,465,158.30 | 20,731,436.25 | - | 50,382,135.57 |
| Buildings & reconstruction | 24,020,836.00 | 5,588,447.11 | 2,784,054.04 | - | 26,825,229.07 |
| Total | 83,669,249.52 | 17,053,605.41 | 23,515,490.29 | - | 77,207,364.64 |
(Continued)
| Name | Budget | Percent of investment against budget (%) | Progress of construction | Accumulated capitalized interest | Including: accumulated capitalized interest of the year | Interest capitalization Rate (%) | Source of funds |
| Improvement of machinery | 66,438,917.61 | 81.77 | 81.77 | - | Self- financing | ||
| Buildings & reconstruction | 31,404,649.19 | 94.79 | 94.79 | - | Self- financing | ||
| Total | 97,843,566.80 | — | — | — | — | — |
(3) Impairment provision
| Item | Opening balance | Increase | Decrease | Closing balance | Reason |
| Buildings & reconstruction | - | 15,064,649.38 | - | 15,064,649.38 | Suspended |
| Total | - | 15,064,649.38 | - | 15,064,649.38 | — |
17. Right-of-use assets
| Item | Property/ buildings | Machinery | Transportation equipment | Electronic equipment | Land use right | Software | Total |
| I. Initial cost | |||||||
| 1.Opening balance | 22,301,098.69 | 1,500,407.13 | - | 996,991.93 | 15,403,548.97 | 40,202,046.72 | |
| 2. Increase | 1,268,280.29 | - | 172,876.63 | - | - | 350,368.74 | 1,791,525.66 |
| (1) lease in | 1,268,280.29 | - | 172,876.63 | - | - | 350,368.74 | 1,791,525.66 |
| 3. Decrease | 6,624,187.74 | - | - | 194,322.66 | 2,543,304.56 | - | 9,361,814.96 |
| (1) Disposal | 6,624,187.74 | - | - | 194,322.66 | 2,543,304.56 | - | 9,361,814.96 |
| 4.Closing balance | 16,945,191.24 | 1,500,407.13 | 172,876.63 | 802,669.27 | 12,860,244.41 | 350,368.74 | 32,631,757.42 |
| II. Accumulated amortization | |||||||
| 1.Opening balance | 5,090,415.92 | 637,746.67 | - | 162,220.54 | 3,763,606.51 | - | 9,653,989.64 |
| 2. Increase | 3,949,530.98 | 333,057.15 | 89,895.91 | 206,013.70 | 1,066,142.53 | 43,796.06 | 5,688,436.33 |
| (1) Accrued | 3,949,530.98 | 333,057.15 | 89,895.91 | 206,013.70 | 1,066,142.53 | 43,796.06 | 5,688,436.33 |
| 3. Decrease | 3,291,773.87 | - | - | 194,322.58 | 2,543,304.56 | - | 6,029,401.01 |
| (1) Disposal | 3,291,773.87 | - | - | 194,322.58 | 2,543,304.56 | - | 6,029,401.01 |
| 4.Closing balance | 5,748,173.03 | 970,803.82 | 89,895.91 | 173,911.66 | 2,286,444.48 | 43,796.06 | 9,313,024.96 |
| III. Impairment reserve | — | — | — | — | — | - | — |
| 1. Opening balance | - | - | - | - | - | - | - |
| 2. Increase | - | - | - | - | - | - | - |
| 3. Decrease | - | - | - | - | - | - | - |
| 4.Closing balance | - | - | - | - | - | - | - |
| IV. Book value | — | — | — | — | — | - | — |
| 1. Closing book value | 11,197,018.21 | 529,603.31 | 82,980.72 | 628,757.61 | 10,573,799.93 | 306,572.68 | 23,318,732.46 |
| 2. Opening book value | 17,210,682.77 | 862,660.46 | - | 834,771.39 | 11,639,942.46 | - | 30,548,057.08 |
18. Intangible assets
| Item | Land use right | Patent | Non- Patent | Others | Total |
| I. Initial cost | |||||
| 1.Opening balance | 240,905,737.40 | 17,630,188.82 | 5,773,680.00 | 74,249,345.48 | 338,558,951.70 |
| 2. Increase | - | - | - | 8,427,931.79 | 8,427,931.79 |
| (1) Purchase | - | - | - | 6,858,843.13 | 6,858,843.13 |
| (2) Transferred from construction-in-progress | - | - | - | 1,569,088.66 | 1,569,088.66 |
| (3) increase via merge | |||||
| 3. Decrease | - | - | - | 2,013,910.38 | 2,013,910.38 |
| (1) Disposal | - | - | - | 2,013,910.38 | 2,013,910.38 |
| 4.Closing balance | 240,905,737.40 | 17,630,188.82 | 5,773,680.00 | 80,663,366.89 | 344,972,973.11 |
| II. Accumulated amortization | |||||
| 1.Opening balance | 71,901,377.46 | 10,470,188.25 | 4,773,708.00 | 40,847,535.60 | 127,992,809.31 |
| 2. Increase | 5,987,097.94 | 1,429,516.20 | 500,004.00 | 7,043,398.68 | 14,960,016.82 |
| (1) Accrued | 5,987,097.94 | 1,429,516.20 | 500,004.00 | 7,043,398.68 | 14,960,016.82 |
| 3. Decrease | - | - | - | 1,990,910.38 | 1,990,910.38 |
| (1) Disposal | - | - | - | 1,990,910.38 | 1,990,910.38 |
| 4.Closing balance | 77,888,475.40 | 11,899,704.45 | 5,273,712.00 | 45,900,023.90 | 140,961,915.75 |
| III. Impairment provision | |||||
| 1. Opening balance | - | - | - | 11,981.17 | 11,981.17 |
| 2. Increase | - | - | - | - | - |
| (1) Accrued | - | - | - | - | - |
| 3. Decrease | - | - | - | - | - |
| (1) Disposal | - | - | - | - | - |
| 4.Closing balance | - | - | - | 11,981.17 | 11,981.17 |
| IV. Book value | |||||
| 1. Closing book value | 163,017,262.00 | 5,730,484.37 | 499,968.00 | 34,751,361.82 | 203,999,076.19 |
| 2. Opening book value | 169,004,359.94 | 7,160,000.57 | 999,972.00 | 33,389,828.71 | 210,554,161.22 |
19. Goodwill
(1) Original cost of goodwill
| Name | Opening Balance | Increased | Decreased | Closing Balance |
| Sonyo Compressor (Dalian)Co.,Ltd | 240,922,872.80 | - | - | 240,922,872.80 |
| Sonyo Refrigeration (Dalian) Co., Ltd. | 38,056,663.52 | - | - | 38,056,663.52 |
| Sonyo Refrigeration System (Dalian) Co., Ltd. | 5,671,836.12 | - | - | 5,671,836.12 |
| Dalian Universe Thermal Technology Co.,Ltd. | 1,440,347.92 | - | - | 1,440,347.92 |
| Dalian Bingshan Group Engineering Co., Ltd | 310,451.57 | - | - | 310,451.57 |
| Total | 286,402,171.93 | - | - | 286,402,171.93 |
(2) Goodwill impairment provision
In the year 2015, the book value of equity investment of Dalian Universe Thermal Technology Co.,Ltd exceeds thefair value of the proportion of the acquired company’s identifiable net asset. The difference between the book value ofequity investment of 48, 287,589.78 Yuan and the identifiable net asset’s fair value of Dalian Sanyo High-efficientRefrigeration System Co., Ltd of 46,847,241.86 Yuan on the acquisition date of July 31
st,2015 is recognized asgoodwill of 1,440,347.92 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 LeisureIndustry Co., Ltd and gains control. The transferred price is based on the net asset of Dalian BingshanBaoan LeisureIndustry Co., Ltd on June 30
th, 2016. Negotiated with Dalian Bingshan Baoan Leisure Industry Co., Ltd’s shareholderBaoan Water Project (China) Limited Company, the transfer price is the combination cost on the purchasing date whichis 5,359,548.42 Yuan, the fair value of proportion of Dalian BingshanBaoan Leisure Industry Company’s identifiable netasset is 5,049,096.85 Yuan on the purchasing day, therefore, goodwill is 310,451.57Yuan on the purchasing date. DalianBingshan 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 SanyoElectric (China)Co.,Ltd, and negotiated with Sanyo Electric (China)Co.,Ltd to determine the share transferconsideration of 929,148,000.00 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 previousshareholdings on acquisition date plus 60% shareholdings acquisition consideration, which is 1,548,580,000Yuan intotal. Goodwill of 240,922,872.80 Yuan is recognized for the difference between the share of FV of net identifiable assetof acquiree, 1,307,657,127.20Yuan and cost of combination on acquisition date.
In 2022, the Company purchased 30% of the shareholdings of Sonyo Refrigeration System (Dalian) Co., Ltd. fromPanasonic Corporation of china Co., LTD and 25% shareholdings of Sonyo Refrigeration System (Dalian) Co., Ltd fromPanasonic Appliances cold Chain (Dalian)Co.Ltd. The negotiated share transfer consideration of 81,735,060.00 Yuan.After the transaction, Sonyo Compressor (Dalian)Co.,Ltd became a subsidiary. This transaction is a businesscombination not under same control, cost of combination is the FV of previous shareholdings on acquisition date plus55% shareholdings acquisition consideration, which is 111,456,900.00Yuan in total. Goodwill of 5,671,836.12 Yuan isrecognized for the difference between the share of FV of net identifiable asset of acquire, 105,785,063.87Yuan and cost
of combination on acquisition date.In 2023, the Company purchased 40% of the shareholdings of Sonyo Refrigeration (Dalian) Co., Ltd. fromPanasonic Corporation of China Co., LTD and 60% shareholdings of Sonyo Refrigeration (Dalian) Co., Ltd from SanyoElectric (China)Co.,Ltd. This transaction is a business combination not under same control, cost of combination is theconsideration of 145,285,500.00 Yuan for share transfer. Goodwill of 38,056,663.52Yuan is recognized for thedifference between the share of FV of net identifiable asset of acquire. 107,228,836.48Yuan and cost of combination onacquisition date.The book value of goodwill from business combination shall be allocated into the relevant asset group using thereasonable method since acquisition date, and be tested for impairment on related asset groups containing goodwill byprofessional appraisal companies or use evaluation models to predict the recoverable amount of related asset groupscontaining goodwill in accordance with the present value of future cash flows including gross profit rate, sales growthrate (4.04%-5.21%), discount rate(10.12%-11.33%) and other parameters in the next 5 years. No goodwill impairmenthas been found when the recoverable amount of asset group for testing is higher than its book value.
20. Long-term unamortized expense
| Item | Opening Balance | Increase | Amortization | Other Decrease | Closing balance |
| Greenland of new factory | 3,048,061.06 | - | 892,115.52 | - | 2,155,945.54 |
| Employee’s dormitory use right | 1,458,257.10 | - | 138,478.35 | - | 1,319,778.75 |
| Membership fee for golf | 374,000.00 | - | 16,500.00 | - | 357,500.00 |
| Renovation and rebuilding | 142,091.33 | 2,140,100.03 | 547,708.41 | - | 1,734,482.95 |
| Amortization of instruments | 315,236.61 | 34,159.28 | 237,916.44 | - | 111,479.45 |
| Software maintenance | 8,675.50 | 43,362.83 | 11,621.76 | - | 40,416.57 |
| Total | 5,346,321.60 | 2,217,622.14 | 1,844,340.48 | - | 5,719,603.26 |
21. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets without offsetting
| Item | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred tax assets | Deductible temporary difference | Deferred tax assets | |
| Provision for credit impairment | 435,919,173.38 | 75,919,841.22 | 445,951,688.75 | 81,048,834.24 |
| Provision for impairment of assets | 134,581,459.34 | 20,319,705.43 | 153,519,850.70 | 23,185,410.37 |
| FA depreciation | 54,071,935.80 | 8,110,790.37 | 48,341,817.47 | 7,251,272.60 |
| Accrued sales discount | 16,775,734.14 | 2,516,360.12 | 17,125,319.07 | 2,568,797.86 |
| Unrealized profit from intra-group | 13,034,503.47 | 1,955,175.52 | 13,034,503.47 | 1,955,175.52 |
| Unrealized revenue | 12,912,057.50 | 3,228,014.38 | 11,170,890.18 | 2,792,722.55 |
| Government grant | 12,244,929.32 | 1,836,739.40 | ||
| Lease liability | 9,109,228.24 | 1,470,613.49 | 52,799,814.74 | 8,006,670.79 |
| Deductible loss | 7,223,987.87 | 1,083,598.18 | ||
| Provision | 2,301,229.56 | 378,294.47 | 4,544,802.83 | 714,830.47 |
| Safety cost | 449,375.00 | 67,406.25 | ||
| Others | 1,460,577.94 | 219,086.69 | 1,138,175.07 | 170,726.26 |
| Total | 699,634,816.56 | 117,038,219.27 | 748,076,237.28 | 127,761,846.91 |
(2) Deferred tax liabilities without offsetting
| Item | Closing balance | Opening balance | ||
| Taxable temporary difference | Deferred tax liabilities | Taxable temporary difference | Deferred tax liabilities | |
| Revaluation increase in business combination asst not under same control | 216,909,045.47 | 32,536,356.82 | 253,978,835.91 | 38,096,825.39 |
| Change on FV of other non-current financial assets | - | - | 151,430,911.13 | 22,714,636.67 |
| FA depreciation | 40,073,339.62 | 6,011,000.94 | 44,655,750.06 | 6,698,362.51 |
| Use right of asset | 8,262,320.31 | 1,339,915.36 | 48,864,566.94 | 7,414,624.88 |
| Total | 265,244,705.40 | 39,887,273.12 | 498,930,064.04 | 74,924,449.45 |
(3) Net deferred tax asset or liability
| Item | Offset amount at the year-end | Closing balance of net of DTA/DTL | Offset amount at the beginning of the year | Opening balance of net of DTA/DTL |
| Deferred tax assets | 13,285,391.56 | 103,752,827.71 | 14,112,987.38 | 113,648,859.53 |
| Deferred tax liabilities | 13,285,391.56 | 26,601,881.56 | 14,112,987.38 | 60,811,462.07 |
(4) Unrecognized deferred tax assets details
| Item | Closing balance | Opening balance |
| Deductible temporary difference | 77,793,766.46 | 227,656,543.59 |
| Deductible loss | 518,523,346.16 | 553,968,553.34 |
| Total | 596,317,112.62 | 781,625,096.93 |
(5) Unrecognized deductible loss of deferred tax assets expired years
| Year | Closing balance | Opening balance | Notes |
| 2024 | - | 7,735,166.14 | - |
| 2025 | 9,324,721.56 | 8,950,922.50 | - |
| 2026 | 54,629,003.37 | 54,629,003.37 | - |
| 2027 | 65,263,403.90 | 67,364,986.52 | - |
| 2028 | 55,941,615.57 | 55,969,301.70 | - |
| 2029 | 37,412,135.40 | 39,791,411.14 | - |
| 2030 | 8,559,346.09 | 7,689,545.97 | - |
| 2031 | 99,102,467.44 | 126,221,649.87 | - |
| 2032 | 20,100,936.15 | 44,819,905.64 | - |
| 2033 | 117,623,814.71 | 140,796,660.49 | - |
| 2034 | 50,565,901.97 | - | - |
| Total | 518,523,346.16 | 553,968,553.34 | - |
22. Other non-current asset
| Category | Closing Balance | Opening balance | ||||
| Book value | Provision | Carrying amount | Book value | Provision | Carrying amount | |
| Debt offset housing | 21,770,721.00 | 1,609,486.12 | 20,161,234.88 | 21,770,721.00 | 1,527,371.56 | 20,243,349.44 |
| Total | 21,770,721.00 | 1,609,486.12 | 20,161,234.88 | 21,770,721.00 | 1,527,371.56 | 20,243,349.44 |
23. Assets with restricted ownership or use rights
| Item | At the year end | |||
| Book value | Carrying amount | Type | Restriction | |
| Monetary fund | 40,157,949.96 | 40,157,949.96 | Frozen | Guarantee deposit/ frozen bank account |
| Notes receivable | 8,555,115.03 | 8,555,115.03 | Pledged | Pledged |
| Financing of receivable | 129,115,879.46 | 129,115,879.46 | Pledged | Pledged |
| FA | 89,706,820.32 | 58,150,963.78 | Mortgage | Mortgage |
| Intangible asset | 8,266,573.44 | 5,120,297.71 | Mortgage | Mortgage |
| Investment property | 38,955,728.90 | 31,214,402.83 | Mortgage | Mortgage |
| Total | 314,758,067.11 | 272,314,608.77 | ||
(continued)
| Item | At the beginning of the year | |||
| Book value | Carrying amount | Type | Restriction | |
| Monetary fund | 110,277,531.37 | 110,277,531.37 | Frozen | Guarantee deposit/ frozen bank account |
| Notes receivable | 4,939,655.20 | 4,939,655.20 | Pledged | Pledged |
| Financing of receivable | 99,078,000.87 | 99,078,000.87 | Pledged | Pledged |
| FA | 89,720,897.99 | 60,540,912.88 | Mortgage | Mortgage |
| Intangible asset | 8,266,573.44 | 5,421,865.27 | Mortgage | Mortgage |
| Investment property | 38,955,728.90 | 32,097,825.31 | Mortgage | Mortgage |
| Total | 351,238,387.77 | 312,355,790.90 | ||
24. Short-term borrowing
(1) Category of short-term borrowing
| Loan category | Closing balance | Opening balance |
| Credit loan | 149,334,095.56 | 256,686,746.70 |
| Factoring loan | 15,271,202.33 | 2,976,345.47 |
| Mortgage loan | 2,000,000.00 | 2,624,692.21 |
| Pledged loan | 678,109.37 | - |
| Total | 167,283,407.26 | 262,287,784.38 |
25. Notes payable
| Notes Category | Closing balance | Opening balance |
| Bank acceptance notes | 569,117,426.19 | 670,720,999.48 |
| Total | 569,117,426.19 | 670,720,999.48 |
26. Accounts payable
| Item | Closing balance | Opening balance |
| Material payments | 860,628,492.89 | 931,983,444.51 |
| Project payments | 696,387,654.58 | 675,076,736.92 |
| Equipment payments | 38,362,719.82 | 43,234,911.60 |
| Others | 6,002,923.51 | 5,540,269.98 |
| Total | 1,601,381,790.80 | 1,655,835,363.01 |
27. Other accounts payable
| Item | Closing balance | Opening balance |
| Dividend payable | 533,156.00 | 533,156.00 |
| Other accounts payable | 226,828,051.96 | 278,270,996.17 |
| Total | 227,361,207.96 | 278,804,152.17 |
27.1 Dividend payable
| Item | Closing balance | Opening balance |
| Ordinary share dividend | 533,156.00 | 533,156.00 |
| Total | 533,156.00 | 533,156.00 |
27.2 Other accounts payable
(1) Other payables categorized by payments nature
| Payments nature | Closing balance | Opening balance |
| Supplier platform | 138,427,047.31 | 179,737,197.47 |
| Cash pledge and security deposit | 17,352,388.67 | 14,448,796.02 |
| Apply for reimbursement and unpaid | 17,093,300.41 | 24,617,613.80 |
| Payable | 13,486,275.11 | 22,407,941.90 |
| Agency fees | 6,811,472.88 | 5,317,884.69 |
| Repair | 3,173,010.34 | 4,676,404.47 |
| Trade mark and royalty | 2,403,064.87 | 2,531,401.13 |
| Others | 28,081,492.37 | 24,533,756.69 |
| Total | 226,828,051.96 | 278,270,996.17 |
28. Contract liability
(1) Contract liability
| Item | Closing balance | Opening balance |
| Received in advance due from unrealized revenue | 645,711,808.53 | 787,685,294.53 |
| Total | 645,711,808.53 | 787,685,294.53 |
29. Employee’s payable
(1) Category of employee’s payable
| Item | Opening balance | Increase | Decrease | Closing balance |
| Short-term employee’s payable | 149,352,510.11 | 675,208,893.85 | 678,023,805.11 | 146,537,598.85 |
| Post-employment benefit –defined contribution plan | 11,203.35 | 73,583,788.19 | 73,397,894.37 | 197,097.17 |
| Termination benefits | 133,400.00 | 6,774,379.53 | 6,907,779.53 | - |
| Total | 149,497,113.46 | 755,567,061.57 | 758,329,479.01 | 146,734,696.02 |
(2) Short-term employee’s payables
| Item | Opening balance | Increase | Decrease | Closing balance |
| Salaries, bonus, allowance, and subsidy | 136,231,457.30 | 532,862,205.86 | 534,488,750.79 | 134,604,912.37 |
| Welfare | - | 30,904,645.77 | 30,904,645.77 | - |
| Social insurance | 6,925.69 | 46,424,681.15 | 46,309,727.64 | 121,879.20 |
| Include: Medical insurance | 6,654.11 | 37,078,780.28 | 36,986,878.18 | 98,556.21 |
| Supplemental insurance | - | 40,806.58 | 40,806.58 | - |
| On-duty injury insurance | 271.58 | 4,853,413.97 | 4,840,989.39 | 12,696.16 |
| Maternity insurance | - | 4,451,680.32 | 4,441,053.49 | 10,626.83 |
| Housing funds | 178,155.98 | 50,495,763.15 | 50,591,746.13 | 82,173.00 |
| Labor union and training expenses | 4,008,680.40 | 10,910,703.80 | 11,299,956.60 | 3,619,427.60 |
| Reward bonus and welfare fund | 8,927,290.74 | - | 818,084.06 | 8,109,206.68 |
| Others | - | 3,610,894.12 | 3,610,894.12 | - |
| Total | 149,352,510.11 | 675,208,893.85 | 678,023,805.11 | 146,537,598.85 |
(3) Defined contribution plan
| Item | Opening balance | Increase | Decrease | Closing balance |
| Pension | 10,863.84 | 71,341,405.46 | 71,161,150.30 | 191,119.00 |
| Unemployment insurance | 339.51 | 2,242,382.73 | 2,236,744.07 | 5,978.17 |
| Total | 11,203.35 | 73,583,788.19 | 73,397,894.37 | 197,097.17 |
30. Tax payable
| Item | Closing balance | Opening balance |
| Enterprise income tax | 15,275,100.75 | 10,958,503.00 |
| Value-added tax | 8,385,659.83 | 5,013,411.92 |
| Real estate tax | 2,658,712.33 | 2,589,711.66 |
| Land use tax | 1,313,359.14 | 1,313,078.49 |
| City maintenance and construction tax | 833,824.30 | 551,839.60 |
| Stamp duty | 711,220.14 | 879,269.28 |
| Education surcharge | 595,588.79 | 514,426.82 |
| Individual income tax | 501,446.30 | 394,171.13 |
| River toll fee | 1,669.18 | 2,080.36 |
| Total | 30,276,580.76 | 22,216,492.26 |
31. Non-current liabilities due within one year
| Item | Closing balance | Opening balance |
| Long-term borrowings due within one year | 139,783,355.56 | 119,400,000.00 |
| Long-term payable due within one year | 15,006,026.71 | 24,636,926.13 |
| Lease obligation due within one year | 6,631,690.45 | 6,608,421.51 |
| Total | 161,421,072.72 | 150,645,347.64 |
32. Other current liabilities
| Item | Closing balance | Opening balance |
| Notes payable endorsed not derecognized | 145,160,311.19 | 148,957,983.15 |
| Output Vat to be carried forward | 45,849,215.48 | 54,357,881.28 |
| Total | 191,009,526.67 | 203,315,864.43 |
33. Long-term borrowing
(1) Category of long-term borrowing
| Category | Closing Balance | Opening Balance |
| Pledged loan | 501,031,874.58 | 609,700,000.00 |
| Mortgage loan | 6,300,000.00 | - |
| Guarantee loan | 40,014,666.67 | 70,000,000.00 |
| Total | 547,346,541.25 | 679,700,000.00 |
Note 1: Pledged loan of 0.6 billion Yuan is for business combination in 2022, which comprises
0.3 billion Yuan from Dalian Zhoushuizi Branch of China Construction Bank Corporation, 5years with 2.75%borrowing rate. 50% shareholdings of Sonyo Compressor (Dalian)Co.,Ltd and 37.5% shareholdings of SonyoRefrigeration System (Dalian) Co., Ltd. were pledged. China Construction Bank Corporation will complete theguarantee in February 2023. 0.3 billion Yuan from Dalian Branch of Bank of Communications Co.,Ltd., 7 yearswith 2.75% borrowing rate. 50% shareholdings of Sonyo Compressor (Dalian)Co.,Ltd and 37.5% shareholdings ofSonyo Refrigeration System (Dalian) Co., Ltd. were pledged. Dalian Branch of Bank of Communications Co.,Ltdwill complete the guarantee in February 2023. In 2025, 50 million Yuan loan is planned to pay back toConstruction bank and 46 million Yuan loan to Communications bank.Note 2: Pledged loan includes a new loan of 87 million Yuan in 2023 for acquisition of Sonyo Refrigeration(Dalian) Co., Ltd. held by Panasonic Corporation of China Co., LTD and Sanyo Electric (China)Co.,Ltd. The loanis expired by 7 years with 2.75% borrowing rate. Up to December 31, 2024, the closing balance is 74million Yuanand will be repaid 13 million Yuan in 2025.
Note 3: In year 2016, the Development Fund from China Development Bank gave support to the Company’s
intelligent and green equipment of cold chain and service industry base project and provided special fund to theCompany’s holding shareholder, Bingshan Group. The fund is160 million Yuan with 10year’s expiration at 1.2%rate. Once the fund arrived, Bingshan Group gave it to the Company at the same rate of 1.2% in lump sum. Theabove fund needed to be warranted by the Company. The guarantee seems to be given for the holding shareholder,but it is for the Company itself in fact. Up to December 31, 2024, the closing balance is 70 million Yuan and willbe repaid 30 million Yuan in 2025.
34. Lease obligation
(1) Details of lease obligation
| Category | Closing balance | Opening balance |
| Lease payment | 44,764,698.58 | 38,276,477.18 |
| Less: unrecognized finance expense | 19,061,162.35 | 7,533,068.70 |
| Non-current liability due within 1 year | 6,631,690.45 | 6,608,421.51 |
| Net lease liability | 19,071,845.78 | 24,134,986.97 |
35. Long term accounts payable
| Item | Closing Balance | Opening Balance |
| Long term accounts payable | 12,451,396.59 | 10,331,937.30 |
| Total | 12,451,396.59 | 10,331,937.30 |
35.1Category by nature
| Nature | Closing Balance | Opening Balance |
| Financial lease borrowings | 12,451,396.59 | 10,331,937.30 |
| Total | 12,451,396.59 | 10,331,937.30 |
36. Provision
| Nature | Closing Balance | Opening Balance | Reason |
| Warranty | 2,301,229.53 | 4,544,802.88 | — |
| Others | 402,140.00 | - | — |
| Total | 2,703,369.53 | 4,544,802.88 | — |
37. Deferred income
(1) Category of deferred income
| Item | Opening Balance | Increase | Decrease | Closing Balance |
| Government subsidy | 98,274,267.80 | 684,168.00 | 8,224,955.51 | 90,733,480.29 |
| Total | 98,274,267.80 | 684,168.00 | 8,224,955.51 | 90,733,480.29 |
(1) Government subsidy
| Government subsidy item | Opening Balance | Increase | To non- operating income | To other income | The value offset cost and expense this year | Others | Closing Balance | Related with asset/ income |
| Application of NH3 and CO2 instead of R22 screw refrigerating machine combined condensing unit | 18,573,486.16 | - | - | 1,928,452.02 | - | - | 16,645,034.14 | Asset Related |
| Compressor IC system | 2,800,820.83 | - | - | 368,769.72 | - | - | 2,432,051.11 | Asset related |
| Ultrasonic intelligent defrost technology | 2,449,028.62 | - | - | 384,824.40 | - | - | 2,064,204.22 | Asset related |
| R290 replacement of R22 large industrial screw unit | 16,258,329.00 | - | - | 1,223,666.04 | - | - | 15,034,662.96 | Asset related |
| R290 replacement of R22 industrial double stage screw unit | 5,934,600.00 | - | - | 621,393.00 | - | - | 5,313,207.00 | Asset related |
| Ultrasonic defrost sample project | 142,500.00 | - | - | 30,000.00 | - | - | 112,500.00 | Asset related |
| Contribution to subsidiary company relocation | 36,762,000.00 | - | - | 1,114,000.00 | - | - | 35,648,000.00 | Asset related |
| Eco Compressor project | 14,867,771.19 | - | - | 2,553,850.33 | - | - | 12,313,920.86 | Asset / Income related |
| Meat storage technology and equipment | 485,732.00 | 684,168.00 | - | - | - | - | 1,169,900.00 | Asset / Income related |
| Total | 98,274,267.80 | 684,168.00 | - | 8,224,955.51 | 90,733,480.29 | — |
38.Share capital
| Item | Opening balance | Increase/decrease（+/-） | Closing balance | ||||
| New share issued | Share dividend | Transfer from capital reserve | Others | Subtotal | |||
| Total share capital | 843,212,507.00 | - | - | - | - | - | 843,212,507.00 |
39.Capital reserves
| Items | Opening Balance | Increase | Decrease | Closing Balance |
| Share premium | 669,193,413.27 | - | - | 669,193,413.27 |
| Other capital reserves | 47,903,685.11 | - | - | 47,903,685.11 |
| Total | 717,097,098.38 | - | - | 717,097,098.38 |
40.Other comprehensive income
| Items | Opening Balance | Current year | Closing Balance | ||||
| Amount for the period before income tax | Less：Previously recognized in profit or loss into other comprehensive income | Less：income tax | After-tax attribute to the parent company | After-tax attribute to minority shareholder | |||
| I.Later can’t reclassified into profit and loss of other comprehensive income | - | - | - | - | - | - | - |
| II. Later reclassified into profit and loss of other comprehensive income | 2,208,669.73 | - | - | - | - | - | 2,208,669.73 |
| Other comprehensive income that can be transferred to profit or loss under the equity method | 2,208,669.73 | - | - | - | - | - | 2,208,669.73 |
| Other comprehensive income total | 2,208,669.73 | - | - | - | - | - | 2,208,669.73 |
41. Special reserve
| Item | Opening Balance | Increase | Decrease | Closing Balance |
| Manufacturing safety | 449,374.96 | 9,641,589.11 | 10,090,964.07 | - |
| Total | 449,374.96 | 9,641,589.11 | 10,090,964.07 | - |
42.Surplus reserves
| Item | Opening Balance | Increase | Decrease | Closing Balance |
| Statutory surplus reserve | 373,398,755.92 | 7,606,012.47 | 381,004,768.39 | |
| Discretionary surplus reserve | 493,760,683.42 | 20,853,061.88 | 514,613,745.30 | |
| Total | 867,159,439.34 | 28,459,074.35 | 895,618,513.69 |
Note: The Company made profit distribution during the reporting period. According to the resolution of the2023 annual General meeting of shareholders, the discretionary surplus reserve of RMB20,853,061.88 will beappropriated based on 20% of the net profit of the statutory financial report for FY2023; Statutory surplus reserveof 7,606,012.47 Yuan shall be appropriated based on 10% of the net profit of the parent company this year.
43.Undistributed profits
| Item | Current year | Last year |
| Closing balance of last year | 617,386,488.34 | 618,445,922.58 |
| Add: Adjustments to the opening balance of undistributed profits | - | -65,810.05 |
| Including: additional retrospective adjustments according to the new accounting standards | - | -65,810.05 |
| Opening balance of current year | 617,386,488.34 | 618,380,112.53 |
| Add: net profit attributable to shareholders of parent company in the year | 110,335,139.06 | 49,375,900.83 |
| Less: Provision for statutory surplus reserves | 7,606,012.47 | 10,426,530.94 |
| Provision for discretionary surplus reserves | 20,853,061.88 | 31,510,869.01 |
| Dividends payable for common shares | 25,296,375.21 | 8,432,125.07 |
| Closing balance of current year | 673,966,177.84 | 617,386,488.34 |
44.Operating revenue and cost
(1) Details
| Items | Current year | Last year | ||
| Sales revenue | Cost of sales | Sales revenue | Cost of sales | |
| Revenue from principle operation | 4,435,315,179.34 | 3,715,591,847.99 | 4,708,789,817.06 | 3,931,870,621.80 |
| Revenue from other operation | 95,832,029.64 | 48,216,368.20 | 107,151,650.64 | 73,726,836.39 |
| Total | 4,531,147,208.98 | 3,763,808,216.19 | 4,815,941,467.70 | 4,005,597,458.19 |
(2) Main revenue and COS details
| Contract classification | Northeast China | Central China | Total | |||
| Sales revenue | Cost of sales | Sales revenue | Cost of sales | Sales revenue | Cost of sales | |
| Classified by products | 4,377,863,106.52 | 3,648,054,729.45 | 153,284,102.46 | 115,753,486.74 | 4,531,147,208.98 | 3,763,808,216.19 |
| Manufacture products | 3,205,706,578.00 | 2,567,700,529.27 | 117,286,263.50 | 91,479,352.86 | 3,322,992,841.50 | 2,659,179,882.13 |
| Project installation | 1,090,071,347.44 | 1,039,457,365.52 | 19,657,337.89 | 16,151,351.23 | 1,109,728,685.33 | 1,055,608,716.75 |
| Other products and service | 82,085,181.08 | 40,896,834.66 | 16,340,501.07 | 8,122,782.65 | 98,425,682.15 | 49,019,617.31 |
| Classified by geography location | 4,377,863,106.52 | 3,648,054,729.45 | 153,284,102.46 | 115,753,486.74 | 4,531,147,208.98 | 3,763,808,216.19 |
| domestic | 3,761,872,931.25 | 3,170,994,675.32 | 153,284,102.46 | 115,753,486.74 | 3,915,157,033.71 | 3,286,748,162.06 |
| overseas | 615,990,175.27 | 477,060,054.13 | - | - | 615,990,175.27 | 477,060,054.13 |
| Timing of goods transferred | 4,377,863,106.52 | 3,648,054,729.45 | 153,284,102.46 | 115,753,486.74 | 4,531,147,208.98 | 3,763,808,216.19 |
| At a point | 4,324,319,033.35 | 3,598,191,853.05 | 153,284,102.46 | 115,753,486.74 | 4,477,603,135.81 | 3,713,945,339.79 |
| Over the time | 53,544,073.17 | 49,862,876.40 | - | - | 53,544,073.17 | 49,862,876.40 |
| Total | 4,377,863,106.52 | 3,648,054,729.45 | 153,284,102.46 | 115,753,486.74 | 4,531,147,208.98 | 3,763,808,216.19 |
45.Taxes and surcharges
| Items | Current year | Last year |
| Property tax | 10,687,349.62 | 10,073,731.86 |
| City construction tax | 9,022,845.50 | 9,012,910.60 |
| Education surcharge | 6,471,029.87 | 6,439,924.63 |
| Land use tax | 5,427,544.54 | 5,015,774.62 |
| Stamp duty | 2,988,502.65 | 3,354,441.63 |
| Vehicle and vessel tax | 48,080.08 | 48,250.80 |
| Others | 18,497.60 | 23,642.94 |
| Total | 34,663,849.86 | 33,968,677.08 |
46.Selling expenses
| Items | Current year | Last year |
| Employee benefit | 152,109,707.56 | 141,519,344.86 |
| Business travel expense | 24,263,543.79 | 25,719,851.30 |
| Official business expense | 24,204,767.58 | 25,483,586.78 |
| Business entertaining expense | 16,792,673.00 | 15,227,636.78 |
| Maintenance and repair expense | 13,375,783.32 | 17,803,113.38 |
| Advertisement and bids expense | 4,689,987.05 | 4,936,902.38 |
| Depreciation expense | 2,411,651.93 | 2,257,182.91 |
| Other expense | 2,862,415.72 | 914,408.09 |
| Total | 240,710,529.95 | 233,862,026.48 |
47. Administrative expenses
| Items | Current year | Last year |
| Employee benefit | 160,039,888.99 | 127,272,720.89 |
| Official expense | 29,418,682.12 | 28,493,919.83 |
| Depreciation expense | 21,417,108.80 | 25,264,201.98 |
| Long-term assets amortization | 14,348,155.12 | 11,646,085.10 |
| Design consultant and test service expense | 13,245,807.87 | 8,075,373.29 |
| Maintenance and repair expense | 11,254,680.61 | 16,475,833.99 |
| Patent trade mark use | 10,685,467.52 | 9,372,566.10 |
| Business travel expense | 7,654,226.60 | 6,514,713.45 |
| Other taxes and fee | 3,924,000.03 | 3,686,510.53 |
| Safety production cost | 3,880,395.28 | 3,062,462.68 |
| Business entertaining expense | 3,557,038.72 | 2,738,569.12 |
| Insurance expense | 2,645,035.92 | 1,435,356.69 |
| Advertisement expense | 583,431.31 | 814,999.22 |
| Other expense | 2,710,495.81 | 5,714,932.63 |
| Total | 285,364,414.70 | 250,568,245.50 |
48.Technology development expense
| Items | Current year | Last year |
| Employee benefit | 91,123,015.98 | 102,598,481.06 |
| Raw material | 33,426,263.16 | 20,934,040.54 |
| Depreciation and amortization expense | 17,272,044.93 | 14,685,194.95 |
| Other expense | 13,704,991.50 | 25,968,001.16 |
| Total | 155,526,315.57 | 164,185,717.71 |
49.Financial expenses
| Items | Current year | Last year |
| Interest expenses | 33,022,192.73 | 37,918,133.57 |
| Less: interest income | 9,280,290.94 | 10,558,433.14 |
| Add: exchange loss | -3,407,833.33 | -299,066.17 |
| Add: others expenditure | 2,667,787.47 | 3,097,443.21 |
| Total | 23,001,855.93 | 30,158,077.47 |
50.Other income
| Items | Current year | Last year |
| Government subsidy | 18,269,439.71 | 12,002,208.32 |
| Input VAT accelerated deduction | 15,785,855.84 | 17,504,090.47 |
| Insurance premium refund | 2,137,900.00 | 367,800.00 |
| Job stability subsidy | 1,221,189.00 | 111,468.81 |
| Personal income tax handling fee refund | 403,935.18 | 180,238.52 |
| VAT deduction for recruiting poor people | - | 12,350.00 |
| Gain on debt restructuring | - | 1,512.39 |
| Total | 37,818,319.73 | 30,179,668.51 |
51.Gain on fair value change
| Source of gain on FV change | Current year | Last year |
| Other non-current financial assets | 27,205,532.40 | 14,073,910.32 |
| Total | 27,205,532.40 | 14,073,910.32 |
52.Investment income
| Items | Current year | Last year |
| Long-term equity investment gain under equity method | 30,246,020.75 | -4,884,731.99 |
| Gain from holding of other non-current financial assets | 5,411,654.40 | 5,796,799.24 |
| Gain from disposal of other non-current financial assets | 33,277,105.94 | - |
| Gain on debt restructuring | 2,154,769.80 | 1,790,089.90 |
| Discounting fees for bank acceptance note | -737,835.68 | -1,595,528.43 |
| Total | 70,351,715.21 | 1,106,628.72 |
53.Credit impairment loss (loss listed as “-”)
| Items | Current year | Last year |
| Bad debt loss on receivable | -15,790,318.34 | -68,147,779.35 |
| Bad debt loss on other receivable | -882,917.23 | -1,885,950.98 |
| Bad debt loss on notes receivable | -536,795.36 | 91,074.58 |
| Bad debt loss on long term receivable | -10,571.36 | 210,600.00 |
| Total | -17,220,602.29 | -69,732,055.75 |
54.Assets impairment losses (loss listed as “-”)
| Items | Current year | Last year | |
| Loss on impairment of inventory and cost to fulfill the contract obligation | -29,153,785.19 | -17,646,037.59 | |
| Loss of contract asset impairment | 16,725,088.49 | 4,767,716.49 | |
| Impairment on other non-current asset | -82,114.56 | -1,527,371.56 | |
| Impairment on construction in progress | -15,064,649.38 | - | |
| Total | -27,575,460.64 | -14,405,692.66 | |
55.Gain on assets disposal (loss listed as “-”)
| Item | Current year | Last year |
| Gain on non-current assets disposal | 5,010,221.27 | -1,184,930.14 |
| Including: gain on non-current assets disposal not classified as held for sale | 5,010,221.27 | -1,184,930.14 |
| Including: gain on fixed assets disposal | 5,185,071.48 | -689,706.84 |
| gain on intangible assets disposal | - | -433,100.00 |
| gain on early derecognition of use right asset | -174,850.21 | -62,123.30 |
| Total | 5,010,221.27 | -1,184,930.14 |
56. Non-operating income
（1） Non-operating income list
| Item | Current year | Last year | Amounts recognized into non-recurring profit or loss for the year |
| Payable written-off | 6,083,744.04 | 1,895,792.78 | 6,083,744.04 |
| Penalty received | 3,117,992.73 | 2,021,941.14 | 3,117,992.73 |
| Loss claimed reverse | 1,186,292.67 | 10,206,786.86 | 1,186,292.67 |
| Gain on donation | 128,800.00 | - | 128,800.00 |
| Gain on disposal of non-current asset | 41,493.05 | 39,884.14 | 41,493.05 |
| Other items | 923,931.55 | 369,517.17 | 923,931.55 |
| Total | 11,482,254.04 | 14,533,922.09 | 11,482,254.04 |
57.Non-operating expenses
| Item | Current year | Last year | Amounts recognized into non-recurring profit or loss for the year |
| Non-current assets scrap loss | 5,809,971.12 | 5,511,195.40 | 5,809,971.12 |
| Compensation | 2,322,513.96 | 952,429.15 | 2,322,513.96 |
| Expected loss on pending litigation | 241,996.39 | - | 241,996.39 |
| Outward donation | 60,000.00 | 360,000.00 | 60,000.00 |
| Others | 1,066,222.01 | 142,852.98 | 1,066,222.01 |
| Total | 9,500,703.48 | 6,966,477.53 | 9,500,703.48 |
58. Income tax expenses
(1) Income tax expenses
| Items | Current year | Last year |
| Current income tax expenses | 36,274,871.93 | 25,126,696.59 |
| Deferred income tax expenses | -24,313,548.68 | -14,094,997.51 |
| Total | 11,961,323.25 | 11,031,699.08 |
(2) Adjustment process of accounting profit and income tax expense
| Items | Current year |
| Consolidated total profit this year | 125,643,303.02 |
| Income tax expenses at applicable tax rate | 18,846,495.45 |
| Effect on subsidiary applied to different tax rate | 3,738,359.93 |
| Effect on prior period income tax adjustment | 3,220,667.98 |
| Effect on non-taxable income | -5,210,951.26 |
| Effect on non-deductible cost, expense and loss | 2,146,835.15 |
| Effect on use of deductible loss from unrecognized deferred tax assets in the prior period | -8,839,865.32 |
| Deferred tax assets recognized for prior period temporary difference | -1,959,289.59 |
| Effect on temporary difference or deductible loss from unrecognized deferred tax assets this year | 19,449,340.23 |
| R&D expenditure accelerated deduction | -19,430,269.32 |
| Income tax expense | 11,961,323.25 |
59. Notes to cash flow statement
(1) Cash relevant to operating activities
1) Cash received relevant to operating activities
| Items | Current year | Last year |
| Deposit returned | 41,482,792.46 | 56,211,426.27 |
| Lease premium received | 25,014,316.79 | 34,669,117.40 |
| Government grants | 12,106,148.33 | 15,077,248.10 |
| Interest income | 11,356,266.86 | 8,914,720.67 |
| Receivable from the 3rd party | 6,651,943.84 | 3,001,285.07 |
| Compensation | 2,246,739.02 | 2,497,389.05 |
| Received travel expense refund | 2,155,963.19 | 1,834,601.94 |
| Frozen money refund | 20,924,320.43 | 550,487.90 |
| Others | 3,048,070.46 | 4,072,381.79 |
| Total | 124,986,561.38 | 126,828,658.19 |
2) Cash paid relevant to operating activities
| Items | Current year | Last year |
| Expenditure | 173,808,996.79 | 202,530,612.54 |
| Deposit paid | 37,902,779.65 | 50,899,935.96 |
| Business travel borrowing | 7,894,695.20 | 8,978,717.58 |
| Frozen accounts | 6,236,821.19 | 21,363,555.30 |
| Bank handling charges | 2,901,472.22 | 3,533,466.20 |
| Unsettled AR/AP among non-related party | 3,439,560.21 | 181,386.21 |
| Others | 2,841,796.69 | 2,935,250.16 |
| Total | 235,026,121.95 | 290,422,923.95 |
(2) Cash relevant to investing activities
1) Significant cash received relevant to investing activities
| Items | Current year | Last year |
| Cash dividend | 40,030,942.29 | 44,342,521.09 |
| Investment recoup | 45,841,618.00 | - |
| Gain on disposal of equity investment | 212,428,461.60 | - |
| Total | 298,301,021.89 | 44,342,521.09 |
2) Cash received relevant to investing activities
| Items | Current year | Last year |
| Fixed-term deposit -principle | 268,000,000.00 | - |
| Total | 268,000,000.00 | - |
3) Significant cash paid relevant to investing activities
| Items | Current year | Last year |
| Purchase of long-term asset | 78,719,169.31 | 89,321,945.50 |
| Fixed-term deposit -principle | 150,000,000.00 | - |
| Total | 228,719,169.31 | 89,321,945.50 |
4) Other cash paid relevant to investing activities
| Items | Current year | Last year |
| Fixed-term deposit | 150,000,000.00 | 168,000,000.00 |
| Total | 150,000,000.00 | 168,000,000.00 |
(3) Cash relevant to financing activities
1) Other cash received relevant to financing activities
| Items | Current year | Last year |
| Notes payable to supplier | 9,964,739.15 | 55,956,005.87 |
| Sale leaseback and financial lease | 2,000,000.00 | 6,600,000.00 |
| Notes discounted | 1,598,937.32 | 3,119,926.93 |
| Others | 11,480,935.05 | |
| Total | 25,044,611.52 | 65,675,932.80 |
2) Others cash paid relevant to financing activities
| Items | Current year | Last year |
| Payment of guarantee money | 20,338,159.55 | 39,502,750.62 |
| Notes payable to supplier | 47,750,000.00 | 13,629,318.00 |
| Sale& leaseback and financial lease | 18,074,898.60 | 10,891,978.68 |
| Lease premium payable | 3,879,173.06 | 6,585,497.64 |
| Others | 660,706.34 | 80,863.54 |
| Total | 90,702,937.55 | 70,690,408.48 |
60. Supplementary information of consolidated cash flow statement
(1) Information
| Items | Current year | Last year |
| 1. Adjusting net profit into cash flows of operating activities: | —— | —— |
| Net profit | 113,681,979.77 | 54,174,539.75 |
| Add: Provision for impairment of assets | 27,575,460.64 | 14,405,692.66 |
| Provision for impairment of credit | 17,220,602.29 | 69,732,055.75 |
| Depreciation of fixed assets, Amortization of mineral resources, and biological assets | 142,519,339.90 | 135,625,135.60 |
| Depreciation of right-of-use assets | 5,688,436.33 | 11,340,839.21 |
| Amortization of intangible assets | 14,960,016.82 | 13,570,693.11 |
| Amortization of long-term deferred expenses | 1,844,340.48 | 1,545,642.28 |
| Losses on disposal of fixed assets, intangible assets, and long-term assets (income listed with”-”) | -5,010,221.27 | 1,184,930.14 |
| Losses on scrap of fixed assets (income listed with”-”) | 5,768,478.07 | 5,471,311.26 |
| Change of fair value profit or loss | -27,205,532.40 | -14,073,910.32 |
| Financial expense (income listed with”-”) | 33,022,192.73 | 37,918,133.57 |
| Investment loss (income listed with”-”) | -70,351,715.21 | -1,106,628.72 |
| Decrease of deferred tax assets (increase listed with”-”) | 9,896,031.82 | -21,471,717.58 |
| Increase of deferred tax liabilities (decrease listed with”-”) | -34,209,580.51 | 864,530.06 |
| Decrease of inventories (increase listed with”-”) | 243,070,107.18 | -257,408,322.60 |
| Decrease of operating receivables (increase listed with”-”) | 45,124,178.28 | -500,972,621.69 |
| Increase of operating payables (decrease listed with”-”) | -286,439,840.48 | 424,759,029.78 |
| Others | - | - |
| Net cash flows arising from operating activities | 237,154,274.44 | -24,440,667.74 |
| 2. Significant investment and financing activities unrelated to cash income and expenses | — | |
| Liabilities transferred to capital | - | |
| Convertible bonds within 1 year | - | |
| Financing leased fixed assets | - | |
| 3. Net increase (decrease) of cash and cash | — |
| equivalent | ||
| Closing balance of cash | 951,579,683.60 | 670,440,335.98 |
| Less: Opening balance of cash | 670,440,335.98 | 921,661,803.17 |
| Add: Closing balance of cash equivalent | - | |
| Less: Opening balance of cash equivalent | - | |
| Net increase of cash and cash equivalent | 281,139,347.62 | -251,221,467.19 |
(2) Cash and cash equivalents
| Items | Current year | Last year |
| Cash | 951,579,683.60 | 670,440,335.98 |
| Including: Cash on hand | 28,585.88 | 70,750.93 |
| Bank deposit used for paying at any moment | 951,551,097.72 | 670,303,450.55 |
| Other monetary fund for paying at any moment | 66,134.50 | |
| Deposit fund in central bank available for payment | - | |
| Cash equivalent | - | |
| Including: bonds investment with maturity in 3 months | - | |
| Closing balance of cash and cash equivalents | 951,579,683.60 | 670,440,335.98 |
(3) Monetary fund not belonging to cash and cash equivalent
| Items | Current year | Last year | Reasons | ||
| Fixed term deposit | 50,000,000.00 | 168,000,000.00 | Held to maturity | ||
| Guarantee money for bank acceptance note | 15,278,927.28 | 44,200,486.65 | Guarantee money | ||
| Guarantee money for guarantee letter | 14,925,131.02 | 41,547,977.10 | Guarantee money | ||
| Frozen | 6,512,838.08 | 21,578,536.32 | Frozen | ||
| Interest receivable | 406,111.11 | 2,321,702.76 | Held to maturity | ||
| Rural workers’ salary account restriction | 3,190,047.46 | 1,731,234.30 | Special account | ||
| Rural workers guarantee fund | 251,006.12 | 1,219,297.00 | Guarantee money | ||
| Total | 90,564,061.07 | 280,599,234.13 | — | ||
61. Change of shareholder’s equity
None
62. Monetary category of foreign currency
(1) Monetary category of foreign currency
| Item | Closing Balance (foreign currency) | Exchange Rate | Closing Balance (RMB) |
| Cash | |||
| Including：USD | 1,654,811.64 | 7.1884 | 11,895,447.99 |
| JPY | 410,505,789.00 | 0.046233 | 18,978,914.14 |
| Euro | 17,077.82 | 7.5257 | 128,522.55 |
| Accounts receivable | — | — | |
| Including: USD | 7,240,050.99 | 7.1884 | 52,044,382.54 |
| JPY | 172,489,988.00 | 0.046233 | 7,974,729.62 |
| Euro | 650,363.00 | 7.5257 | 4,894,436.83 |
| GBP | 140,443.58 | 9.0765 | 1,274,736.15 |
| Accounts payable | |||
| Including: USD | 344,524.99 | 7.1884 | 2,476,583.44 |
| JPY | 71,058,586.00 | 0.046233 | 3,285,251.61 |
| Other accounts payable | — | — | |
| Including: USD | 120,594.09 | 7.1884 | 866,878.56 |
| JPY | 34,222,156.10 | 0.046233 | 1,582,192.94 |
63. Lease
(1) As a lessee
| Items | Current year | Last year |
| Interest expense on lease liabilities | 1,545,658.27 | 1,043,053.19 |
| Short-term lease expense recognized in income statement | 2,052,986.01 | 4,114,059.87 |
| Low-value asset lease expense recognized in income statement (excl short-term lease) | - | - |
| Income from the sublease of the right-of-use the assets | - | - |
| Sum of cash outflows related to leases | 5,240,197.61 | 8,453,910.59 |
| Cash inflow from sale and leaseback transactions | 2,000,000.00 | 6,600,000.00 |
| Cash outflow from sale and leaseback transactions | 3,330,252.62 | 10,891,978.68 |
(2) As a lessor
Operating lease
| Items | Lease income | Include: income related to variable lease payments not included in lease payment receivable |
| Office and plant | 11,230,884.64 | |
| Total | 11,230,884.64 | - |
VI. Research and development expense
| Items | Current year | Last year |
| Labor cost | 91,123,015.98 | 102,598,481.06 |
| Material cost | 33,426,263.16 | 20,934,040.54 |
| Depreciation and amortization | 17,272,044.93 | 14,685,194.95 |
| Others | 13,704,991.50 | 25,968,001.16 |
| Total | 155,526,315.57 | 164,185,717.71 |
| Expensed R&D | 155,526,315.57 | 164,185,717.71 |
| Capitalized R&D |
VII. Change of Consolidation Scope
NoneVIII. Interest in other entity
1.Equity of subsidiaries
（1） Organization structure of group company
| Name of subsidiaries | Registered capital (million Yuan） | Main business address | Registered address | Business nature | Shareholding (%) | Obtaining method | |
| Direct | Indirect | ||||||
| Dalian Bingshan Group Engineering Co., Ltd. | 300.00 | Dalian | Dalian | Installation | 100 | - | Establish |
| Chengdu Bingshan Refrigeration Engineering Co., Ltd. | 10.00 | Chengdu | Chengdu | Service | - | 51 | Establish |
| Dalian Bingshan Group Sales Co., Ltd. | 18.00 | Dalian | Dalian | Trading | 100 | - | Establish |
| Dalian Bingshan Air-conditioning Equipment Co., Ltd. | 82.54 | Dalian | Dalian | Manufacturing | 100 | - | Establish |
| Dalian Bingshan Guardian Automation Co., Ltd. | 50.70 | Dalian | Dalian | Manufacturing | 100 | - | Establish |
| Dalian Bingshan-RYOSETSU Quick Freezing Equipment Co., Ltd. | 57.58 | Dalian | Dalian | Manufacturing | 100 | - | Establish |
| Wuhan New World Refrigeration Industrial Co., Ltd. | 200.00 | Wuhan | Wuhan | Manufacturing | 100 | - | Acquisition |
| Wuhan New World Air-conditioning Refrigeration Engineering Co., Ltd | 35.00 | Wuhan | Wuhan | Installation | - | 100 | Establish |
| Wuhan Lanning Energy Technology Co., Ltd. | 22.00 | Wuhan | Wuhan | Trading | - | 100 | Acquisition |
| Dalian Universe Thermal Technology Co.,Ltd. | 80.00 | Dalian | Dalian | Manufacturing | 55 | - | Acquisition |
| Dalian Bingshan Engineering & Trading Co., Ltd | 30.00 | Dalian | Dalian | Service | 100 | - | Acquisition |
| Sonyo Compressor (Dalian)Co.,Ltd. | 442.40 | Dalian | Dalian | Manufacturing | 100 | - | Acquisition |
| Sonyo Refrigeration System (Dalian) Co., Ltd. | 105.00 | Dalian | Dalian | Manufacturing | 100 | - | Acquisition |
| Sonyo Refrigeration (Dalian) Co., Ltd. | 212.08 | Dalian | Dalian | Manufacturing | 100 | - | Acquisition |
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 over50% voting right.
（2） There are no significant non-subsidiaries.
2.Change of equity share in subsidiary which is still under control
There is no change of equity share in subsidiary
3.Equity in joint venture arrangement or associated enterprise
（1） The important affiliated companies
| Name of joint ventures or affiliated companies | Main business address | Registered address | Business nature | Shareholding (%) | Accounting methods | |
| Direct | Indirect | |||||
| Dalian Bingshan Metal Technology Co., Ltd. | Dalian | Dalian | Manufacturing | 49.00 | - | Equity 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 beingheld 20% or more voting rights.
（2） The key financial information of affiliated companies
| Items | Closing balance/Current year |
| Closing balance/Current year Dalian Bingshan Metal Technology Co., Ltd. |
| Current assets | 256,248,904.13 |
| Including: Cash and cash equivalents | 80,025,332.42 |
| Non-current assets | 42,099,190.29 |
| Total assets | 298,348,094.42 |
| Current liabilities | 60,317,579.55 |
| Non-current liabilities | - |
| Total liabilities | 60,317,579.55 |
| Total net asset | 238,030,514.87 |
| Minority interests | - |
| Equity to the parent company | 238,030,514.87 |
| Share of net assets according to the shareholding proportions | 116,634,952.28 |
| Adjusting events | - |
| —Goodwill | 19,269,770.94 |
| —Unrealized profits of insider trading | - |
| --Others | - |
| Book value of equity investment of affiliated companies | 135,904,723.22 |
| Fair value of equity investment with public offer | - |
| Operating income | 432,254,731.20 |
| Financial expense | -2,035,716.59 |
| Income tax expense | 9,817,260.94 |
| Net profit | 58,136,954.23 |
| Net profit of discontinuing operation | - |
| Other comprehensive income | - |
| Total comprehensive income | 58,136,954.23 |
| The current dividends received from joint ventures | 30,759,188.94 |
(Continued)
| Items | Opening balance/Last year | ||
| Dalian Fuji Bingshan Vending Machine Co., Ltd | Jiangsu Jingxue Insulation Technology Co.,Ltd | Dalian Bingshan Metal Technology Co., Ltd. | |
| Current assets | 279,515,256.77 | 1,513,841,724.68 | 334,413,727.30 |
| Including: Cash and cash equivalents | 18,195,178.30 | 151,387,053.19 | 163.052.296.71 |
| Non-current assets | 190,659,275.57 | 301,638,618.76 | 38,148,931.23 |
| Total assets | 470,174,532.34 | 1,815,480,343.44 | 372,562,658.53 |
| Current liabilities | 300,289,317.09 | 943,431,015.22 | 58,315,558.14 |
| Non-current liabilities | 32,367,401.38 | 40,353,776.15 | - |
| Total liabilities | 332,656,718.47 | 983,784,791.37 | 58,315,558.14 |
| Total net asset | 137,517,813.87 | 831,695,552.07 | 314,247,100.39 |
| Minority interests | - | 274,736.66 | - |
| Equity to the parent company | 137,517,813.87 | 831,420,815.41 | 314,247,100.39 |
| Share of net assets according to the shareholding proportions | 67,383,728.80 | 123,964,843.58 | 153,981,079.19 |
| Adjusting events | - | - | - |
| —Goodwill | 226,689.29 | 20,390,060.33 | 19,269,770.94 |
| —Unrealized profits of insider trading | - | - | - |
| --Others | - | - | - |
| Book value of equity investment of affiliated companies | 67,610,418.09 | 144,354,903.91 | 173,250,850.13 |
| Fair value of equity investment with public offer | - | - | - |
| Operating income | 209,845,287.10 | 1,152,098,034.96 | 464,881,380.24 |
| Financial expense | 11,084,822.85 | 1,934,530.46 | -2,682,355.04 |
| Income tax expense | -353,797.35 | 4,996,495.33 | 10,449,723.61 |
| Net profit | -85,684,074.85 | 38,019,504.83 | 63,729,802.01 |
| Net profit of discontinuing operation | - | - | - |
| Other comprehensive income | - | - | - |
| Total comprehensive income | -85,684,074.85 | 38,019,504.83 | 63,729,802.01 |
| The current dividends received from joint ventures | - | 1,610,172.00 | 33,134,422.30 |
（1） Summary financial information of insignificant affiliated companies
| Items | Current year | Last year |
| Affiliated company | — | — |
| Total book value of investment of affiliated companies | 346,068,692.14 | 136,058,775.37 |
| The total of following items according to the shareholding proportions | — | — |
| Net profit | -7,939,529.15 | 3,826,157.59 |
| Other comprehensive income | - | - |
| Total comprehensive income | -7,939,529.15 | 3,826,157.59 |
（2） Significant restrictions of the ability of affiliated companies transferring funds
to the Company.No.
（3） Contingency related to joint venture or affiliated company need to be
disclosed.No.IX. Government Grant
1. Liability item involved in government grant
| Items | Opening Balance | Increase | Into non- operating income | Into other income | The value offset cost and expense | Closing Balance | Related to asset/income |
| Deferred income | 82,920,764.61 | - | - | 5,671,105.18 | - | 77,249,659.43 | asset |
| Deferred income | 15,353,503.19 | 684,168.00 | - | 2,553,850.33 | - | 13,483,820.86 | asset/income |
| 98,274,267.80 | 684,168.00 | - | 8,224,955.51 | - | 90,733,480.29 | — |
2. Recognized in income statement
| Items | Current year | Last year |
| Other income | 19,798,839.71 | 12,002,208.32 |
X. Risk Related to Financial InstrumentsThe main financial instruments held by the group are borrowings, accounts receivable, accountspayable, other non-current financial asset etc. The detailed explanation is referred to the noteNo.V. The related risks of these financial instruments and the risk management policy conductedto reduce these risks by the group are introduced as below. The group management conducts tomanage 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 betweenrisk and profit return by reducing the negative influence to operating performance to theminimum level as well as maximizing the shareholders’ and other investors’ profits. Based onthese objectives, the basic risk management policy is to recognize and analyze all sorts of riskthat the Company faced with, to set up the proper risk tolerance bottom line conducting riskmanagement, as well as to monitor these risks in a timely and effective manner, and to ensurethese 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 Companydefined exchange rate risk of assets, liabilities dominated in foreign currency and futuretransaction dominated in foreign currency (mainly including USD, JPY, EURO,HKD and GBP).The financial department of the Company monitors the Company’s foreign currency transactionand the scale of foreign assets and liabilities, and decreases exchange rate risk. During thecurrent year the Company did not agree any forward foreign exchange contract or currencyswap contract .As at 31st December 2024, the Company’s assets and liabilities dominated inforeign currency are listed in RMB as following：
| Items | December 31, 2024 | January 1, 2024 |
| Monetary fund-USD | 11,895,447.99 | 5,900,837.69 |
| Monetary fund-JPY | 18,978,914.14 | 5,352,282.10 |
| Monetary fund- EURO | 128,522.55 | 346,986.51 |
| Monetary fund- HKD | - | 84,495.39 |
| Receivable -USD | 52,044,382.54 | 50,158,313.38 |
| Receivable -GBP | 1,282,811.66 | - |
| Receivable -JPY | 7,974,729.62 | 3,847,098.27 |
| Receivable - EURO | 4,894,436.83 | 5,426,571.06 |
| Payables -USD | 2,476,583.44 | 7,966,726.35 |
| Payables -JPY | 3,285,251.61 | 1,794,696.33 |
| Other payables - JPY | 1,582,192.94 | - |
The group paid close attention to the effect on FX risk.
2) Interest rate risk
The interest risk of the group incurred from bank loan, risk of a floating interest rate of financialliabilities that lead to the group facing cash flow interest rate risk, financial liabilities with a fixedinterest rate lead to the group facing cash flow interest rate risk. The company determined the proportionof fixed interest rate and floating interest rate according the current market circumstance. The group’sinterest-bearing debt is borrowings of RMB 686,000,000.00 at fixed interest rate as of December31,2024(borrowings of RMB 799,100,000.00 in2023).The financial department of the group continuously monitors the interest rates level, and themanagement would make some adjustment to lower the interest rate risk according to the latest marketsituation. Climbing interest rate will increase the cost of newly increased interest-bearing liability andinterest expense for unsettled interest-bearing liability at floating rate and have adverse effect on thebusiness performance.
3) Price risk
The price risk of the Company is mainly commodity price risk. The Company sells products at marketprices. As the national economy enters the "new normal", the manufacturing industry is under greateconomic downward pressure, and the drastic fluctuations of bulk material prices have a certain impacton the group 's operations.
(1) Credit risk
The credit risk of the group comes from monetary fund, notes receivable, accounts receivable, and otheraccounts receivable etc. The management made credit policies and monitored changes of this creditexposure.The group 's monetary fund was in bank with higher credit rating, so there was no significant credit risk,nor significant losses due to the default of other entity. Upper limit policy is adopted to avoid any creditrisk from financial institution.The group made relevant policy to control credit risk exposure from receivable, other receivable andnotes receivable. The group assesses the client’s credit background according to the client’s financialperformance, possibility of obtaining guarantee from the 3rd party, credit record and other factors suchas current market. The group will periodically monitor the credit situation of the client and will takemeasures such as prompt letter, shorten credit period or cancel the credit to ensure the overall credit riskwithin the controllable scope.As at 31st December 2024, the top five customers of receivable accounts balance are262,076,417.63Yuan, representing 11.46% of sum of receivable and contract assets.
(3) Liquidity risk
Liquidity risk was referred to the risk of shortage of funds incurred when the enterprise fulfills theobligation of settlement by cash or other financial assets. The way to manage the liquidity risk is toensure enough fund available to fulfill the liability by due date in prevention from unacceptable loss ofor reputation damage to the group. The group periodically analyze the liability structure and expiry dateand the financial department of the group continued to monitors the short term or long-term capitalneeds to ensure maintain plenty of cash flow. And the same time they also monitor the condition of bankloan agreements and obtain commitments from banks to reduce liquidity risks.The fund mainly comes from bank loan. By December 31
st, 2024, the credit limit still available is 711.87million Yuan(618.30 million Yuan 2023) and short-term credit limit available is 711.87 millionYuan(618.30 million Yuan 2023).As at 31
st
December 2024, the group’s financial assets and financial liabilities in line withnon-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 | 104,214.37 | 104,214.37 | |||
| Notes receivable | 35,285.49 | 35,285.49 | |||
| Accounts receivable | 149,223.43 | 149,223.43 | |||
| Financing receivable | 38,207.33 | 38,207.33 | |||
| Other Receivable | 4,574.84 | 4,574.84 | |||
| Contract asset | 18,476.09 | 18,476.09 | |||
| Other current asset | 2,763.64 | 2,763.64 | |||
| Other non-current financial asset | 168.39 | 168.39 | |||
| Long-term receivable | 5.93 | 7.59 | 0.48 | 14.00 | |
| Financial Liabilities | |||||
| Short-term loan | 16,728.34 | 16,728.34 | |||
| Notes Payable | 56,911.74 | 56,911.74 | |||
| Accounts payable | 160,138.18 | 160,138.18 | |||
| Other payable | 22,682.81 | 22,682.81 | |||
| Employee’s payable | 14,673.47 | 14,673.47 | |||
| Tax payable | 3,027.66 | 3,027.66 | |||
| Non-current liability due within 1 year | 16,142.11 | 16,142.11 | |||
| Long-term loan | 44,134.65 | 4,000.00 | 6,600.00 | 54,734.65 | |
| Lease obligation | 346.79 | 637.44 | 922.96 | 1,907.19 | |
| Long-term payable | 554.87 | 690.27 | 1,245.14 |
2. Financial asset transfer
(1) Classified by transfer method
| Transfer method | Nature | Amount | Derecognition | Basis for derecognition |
| Endorsement of a bill | Bank acceptance bill with high credit rating | 386,371,303.27 | Y | All risk and reward have been transferred |
| Discounting a bill | Bank acceptance bill with high credit rating | 33,231,779.38 | Y | All risk and reward have been transferred |
| Endorsement/discounting of a bill | Bank/trade acceptance bill with non-high credit rating | 174,902,890.29 | N | Retain mostly risk and reward including default risk |
| Factoring | Receivable | 13,478,950.00 | Y | All risk and reward have been transferred |
| Total | — | 607,984,922.94 | — | — |
(2) Derecognized financial asset due to transfer
| Item | Transfer method | Derecognized Amount | Gain/loss from derecognition |
| Bank acceptance bill with high credit rating | Endorsement of a bill | 386,371,303.27 | - |
| Bank acceptance bill with high credit rating | Discounting a bill | 33,231,779.38 | -89,454.91 |
| Receivable | Factoring without recourse | 13,478,950.00 | - |
| Total | — | 433,082,032.65 | -89,454.91 |
XI. Disclosure of Fair Value
1. Amount and measurement level of the assets and liabilities measured at fair value at the year
end
| Items | Fair value at the year end | |||
| 1st level measurement of FV | 2nd level measurement of FV | 3rd level measurement of FV | Total | |
| Financial assets Continuously measured at FV | — | — | — | — |
| Receivable financing | - | 382,073,283.27 | 382,073,283.27 | |
| Other non-current financial asset | - | 1,683,852.59 | 1,683,852.59 | |
| Total | - | 382,073,283.27 | 1,683,852.59 | 383,757,135.86 |
2. Basis for Market price of first level measurement of fair value
None.
3. For continuous and discontinuous 2nd level of FV, valuation technique adopted andkey parameter quantitive and qualitive information.Bank acceptance notes (receivable financing) as measured at fair value through othercomprehensive income is within this scope. Bank acceptance notes held by the group mainlyare high credit grading from the large commercial bank. As the remaining maturity is short andcredit risk is very low, on the balance sheet date, the book value of bank acceptance notesreceivable is similar to fair value.
4. For continuous and discontinuous 3rd level of FV, valuation technique adopted andkey parameter quantitive and qualitive information.As of December 31, 2024, the book value of the share investment in Guotai Junan InvestmentManagement Co.,Ltd and Wuhan Steel and Power Co.,Ltd is 1,683,852.59 Yuan. It ispresented as other non-current financial asset in accordance with No.22- financial instrumentrecognition and measurement of Accounting Standards for Business Enterprises. Having
considered there is neither active market for invested company’s share nor market price is
available for reference, and it is not feasible to obtain the relevant observable input value. FVof the investment is measured at cost by taking influence factor of FV into consideration.
5. For continuous 3
rdlevel of FV, adjusted information of opening and closing balanceand sensitivity analysis of unobservable parameter.None.
6. Assets continuously measured at fair value have switched among different level duringthe year.None.
7. Changes of valuation technique and reasons for changes
None.
8. Assets and liability are disclosed at FV rather than measured at FV
None.XII. Related Parties Relationship and Transactionsi. Related parties’ relationship
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
| Parent company | Registered address | Business nature | Registered capital | Shareholding percentage (%) | Voting power percentage (%) |
| Dalian Bingshan Group Co., Ltd. | Dalian | Manufacture | 158,580,000.00 | 20.27 | 20.27 |
Note: Dalian Bingshan Group Co., Ltd. is a Sino –foreign joint venture located No.106 LiaoheEast Road, DDZ, Dalian, China. The legal representative of Dalian Bingshan Group Co., Ltd. isMr. Ji Zhijian, and the registered capital is RMB158.58 million. The registered businessoperation period is from 3rd July 1985 to 2nd July 2035. The business scope includes research,development, manufacture, sales, service and installment of refrigeration equipment, coolingand freezing equipment, different size of air-conditioners, petrochemical equipment, electronicand electronic- control products, home electronic appliance, environment protect equipment andetc. (unless the licenses needed)
2. Subsidiaries
Referrer to the content in the Note “VIII. 1. (1) Organization structure of group company”.
3. Affiliated company and joint venture
The 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 withrelated parties during the current period or last period, including:
| Names of the joint ventures or affiliated company | Relationships with the Company |
| Dalian Fuji Bingshan Vending Machine Co., Ltd. | Affiliated company of the Company |
| Dalian Fuji Bingshan Vending Machine Sales Co., 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 |
| SONGZ -Grand Ocean Thermal Technology (Dalian) Co., Ltd. | Affiliated company of the Company |
| Dalian Bingshan Group Huayida Financial Leasing 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 |
| SONGZ -Grand Ocean New Energy Vehicle Spare Part (Changchun) .,Ltd. | Subsidiary of its affiliated company |
| Wuhan Sikafu Power Control Equipment Co., Ltd. | Affiliate of its subsidiary |
4. Other related parties
| Name of related party | Related party relationship |
| Company under direct/indirect Control of Panasonic Co.,Ltd | under control of or significant influence by the same party |
| Sanyo Corporation | under control of or significant influence by the same party |
| Dalian Spindle Environmental Facilities Co., Ltd. | under control of or significant influence by the |
| same party | |
| LINDE HYDROGEN FUELTECH (DALIAN) CO., LTD. | under control of or significant influence by the same party |
| Dalian Shentong Electric Co., Ltd. | under control of or significant influence by the same party |
| Dalian Fuji Bingshan Control System Co., Ltd. | under control of or significant influence by the same party |
| BAC Dalian Co., Ltd. | under control of or significant influence by the same party |
| Dalian Bingshan Wisdom Park Co., Ltd | under control of or significant influence by the same party |
| Dalian Bingshan Part Technology Co.,LTD. | Under control of the same ultimate controlling party |
| Alphavita Bio-scientific (Dalian) Co., Ltd. | Under control of the same ultimate controlling party |
| Bingshan Technology Service （Dalian） Co., Ltd. | Under control of the same ultimate controlling party |
| Sonyo Cold Chain(Dalian) Co., Ltd. | Under control of the same ultimate controlling party |
| Sonyo Cold Chain Equipment (Wuhan) Co., Ltd. | Under control of the same ultimate controlling party’s subsidiary |
| Dalian Health and Wellness Industry Group Co., Ltd | Directors and senior officers of the Company serve as directors and senior officers in Dalian Zhonghuida Refrigeration Technology Co., Ltd Company |
| Dalian State-owned Assets Investment and Management Group Co.,Ltd. | An associated natural person serves as a director of the company |
Note: Companies under direct/indirect Control of Panasonic Co.,Ltd are:
Panasonic Electric Taiwan Co.,Ltd. , Wanbao(Guangzhou) Compressor Co.,Ltd, , PanasonicElectronic Devices(Jiangmen)Co.,Ltd. , Panasonic R&D Center Suzhou Co.,Ltd Dalian Branch ,Panasonic Corporation, Panasonic Industry (China) Co., Ltd. , Shanghai Branch, AppliancesMicrowave Oven(Shanghai) Co.,Ltd. , Panasonic Motor(Hangzhou)Co.,Ltd. , PanasonicElectric Equipment (China）Co.,Ltd. , Panasonic Appliances Air-Conditioning and RefrigerationCorporation, Panasonic Home Appliances (China) Co.,Ltd. , PanasonicProcurement(CHINA)Co.,Ltd. , Panasonic Industry (China) Co., Ltd. , Panasonic HomeAppliances(Hangzhou)Co.,Ltd. , Singapore Panasonic Cold Chain Asia, Panasonic Sales TaiwanCo Ltd..Panasonic Appliances Air-Conditioning Malaysia Sdn.Bhd.、Panasonic Cold Chain Poland Sp. ZO.O.、Panasonic Connect Co.,Ltd.Media Entertainment Business Division、PanasonicCorporation、Panasonic Corporation Appliances Company Heating＆Cooling Solutions BdCommercial Air-Conditionin、Panasonic Corporation Appliances Company、PanasonicCorporation Heating & Ventilation A/C Company Heating And Cooling Devices BusinessDivision、Panasonic Corporation Heating & Ventilation Ac Company Commercial EquipmentSolutions Business Division、Panasonic Do Brasil Limitada Miami Branch、Panasonic HeatingAnd Ventilation Air-Conditioning Czech,S.R.O.、Panasonic Hong Kong Co,.Ltd.、Panasonic
India Pvt Ltd (Apin)、Panasonic Industrial Devices Sales Company Of America、PanasonicIndustrial Devices Sales Taiwan Co.,Ltd.、Panasonic Industrial Devices Sales(M)Sdn Bhd、Panasonic Industry Europe Gmbh、Panasonic Industry Sales Asia Pacific、Panasonic LifeSolutions India Private Limited、Panasonic Operational Excellence Co.,Ltd.、PanasonicOperational Excellence Co.,Ltd.（Pex）、Panasonic Taiwan Co.,Ltd.、Panasonic A.P.Sales(Thailand)Co.Ltd、Panasonic Corporation、Panasonic Corporation Appliances Company.ii. Related Party transactions
1. Purchase of goods, offer and receive labour services etc inter-group transactions
(1) Purchase of goods/receive labour services
| Related party | Content | Current year | Last year |
| Dalian Bingshan Metal Technology Co.,Ltd. | Purchases of goods | 62,734,659.74 | 63,809,032.17 |
| Sonyo Cold Chain (Dalian)Co.Ltd | Purchases of goods | 58,961,755.22 | 40,499,927.26 |
| Jiangsu Jingxue Insulation Technology Co.,Ltd. | Purchases of goods | 35,868,159.33 | 28,067,092.90 |
| Company under direct/indirect Control of Panasonic Co.,Ltd | Purchases of goods | 26,696,668.01 | 13,763,555.55 |
| Bingshan Technology Service （Dalian） Co., Ltd. | Purchases of goods | 21,254,763.30 | 5,575,811.09 |
| Dalian Honjo Chemical Co., Ltd | Purchases of goods | 14,418,121.76 | 10,305,185.60 |
| Dalian Bingshan Part Technology Co.,LTD. | Purchases of goods | 14,257,101.84 | 10,775,437.38 |
| Dalian Shentong Electric Co., Ltd. | Purchases of goods | 10,593,486.97 | 1,680,077.95 |
| BAC Dalian Co., Ltd. | Purchases of goods | 9,499,080.31 | 18,579,088.19 |
| Dalian Spindle Environmental Facilities Co., Ltd | Purchases of goods | 1,168,153.45 | 780,949.56 |
| Dalian Fuji Bingshan Control System Co., Ltd. | Purchases of goods | 970,858.76 | 5,029,475.45 |
| Dalian Bingshan Wisdom Park Co., Ltd | Purchases of goods | 161,184.48 | 80,441.60 |
| Alphavita Bio-scientific (Dalian) Co., Ltd. | Purchases of goods | 93,428.30 | 4,466,987.61 |
| Sanyo Corporation | Receive labor services | 79,389.43 | 1,621,316.09 |
| Dalian Fuji Bingshan Vending Machine Sales Co., Ltd | Purchases of goods | 68,141.59 | 35,398.23 |
| Sonyo Cold Chain (Dalian)Co.Ltd | Receive labor services | 59,669.09 | |
| Shanghai Jingxue Freezing Equipment Co., Ltd | Purchases of goods | 53,008.85 | |
| Dalian Jingxue Freezing Equipment Co., Ltd. | Purchases of goods | 28,300.88 |
| Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd. | Purchases of goods | 15,337.41 | |
| Dalian Fuji Bingshan Vending Machine Co., Ltd | Purchases of goods | 9,597.63 | 505,497.50 |
| Dalian Bingshan Group Co., Ltd. | Purchases of goods | 943.40 | |
| Bingshan Technology Service （Dalian） Co., Ltd. | Receive labor services | - | 2,011,933.16 |
| Dalian Bingshan Wisdom Park Co., Ltd | Receive labor services | - | 47,169.81 |
| Dalian Bingshan Group Co., Ltd. | Receive labor services | - | 24,452.83 |
| Total | 256,991,809.75 | 207,658,829.93 |
(2) Sales of goods/ labour services provision
| Related party | Content | Current year | Last year |
| Company under direct/indirect Control of Panasonic Co.,Ltd | Sales of goods | 294,094,000.19 | 285,292,151.76 |
| Sonyo Cold Chain(Dalian)Co.Ltd | Sales of goods | 124,892,254.77 | 138,639,729.84 |
| BAC Dalian Co., Ltd | Sales of goods | 102,516,304.77 | 69,977,098.57 |
| Bingshan Technology Service （Dalian） Co., Ltd. | Sales of goods | 53,199,272.20 | 32,203,558.67 |
| Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd. | Sales of goods | 13,053,097.35 | - |
| Sonyo Cold Chain Equipment (Wuhan) Co., Ltd. | Sales of goods | 12,938,062.52 | - |
| Dalian Fuji Bingshan Vending Machine Co., Ltd | Sales of goods | 9,294,419.14 | 16,843,047.06 |
| Dalian Health and Wellness Industry Group Co., Ltd | Sales of goods | 6,653,136.22 | - |
| MHI Bingshan Refrigeration (Dalian) Co.,Ltd. | Sales of goods | 5,359,262.29 | 7,181,290.12 |
| Alphavita Bio-scientific (Dalian) Co., Ltd. | Sales of goods | 3,226,307.14 | 4,522,436.41 |
| Dalian Honjo Chemical Co., Ltd | Sales of goods | 2,416,987.78 | 1,863,564.01 |
| Dalian Bingshan Part Technology Co.,LTD | Sales of goods | 2,306,804.62 | 1,742,813.23 |
| Dalian Spindle Environmental Facilities Co., Ltd | Sales of goods | 1,256,946.19 | 3,665,307.02 |
| Dalian Bingshan Wisdom Park Co., Ltd | Sales of goods | 531,283.99 | 13,402,551.72 |
| Dalian Fuji Bingshan Control System Co., Ltd. | Sales of services | 417,570.36 | 414,608.77 |
| Dalian Shentong Electric Co., Ltd | Sales of goods | 412,111.48 | 120,092.03 |
| Dalian Fuji Bingshan Control System Co., Ltd. | Sales of goods | 209,722.13 | 153,752.97 |
| Bingshan Technology Service （Dalian） Co., Ltd. | Sales of goods | 163,716.81 | - |
| Dalian Jingxue Freezing Equipment Co., Ltd | Sales of goods | 85,702.88 | 96,698.39 |
| Linde Hydrogen Fueltech (Dalian) Co., Ltd | Sales of goods | 67,265.46 | 794,939.42 |
| Dalian Bingshan Wisdom Park Co., Ltd | Sales of services | - | 141,509.43 |
| Dalian Bingshan Group Co., Ltd. | Sales of service | - | 43,018.86 |
| Dalian Bingshan Group Co., Ltd. | Sales of goods | - | 26,445.02 |
| Total | 633,094,228.29 | 577,124,613.30 |
(3) Assets Lease
1) Assets rent out
| Lessee | Category of assets rent out | Current year Lease Income | Last year Lease Income |
| Dalian Bingshan Wisdom Park Co., Ltd | Land/property | 9,013,347.56 | 9,013,347.56 |
| MHI Bingshan Refrigeration (Dalian) Co.,Ltd. | Plant | 3,809,523.80 | 3,809,523.80 |
| Linde Hydrogen Fueltech (Dalian) Co., Ltd | Plant | 2,792,899.62 | 2,360,040.71 |
| Sonyo Cold Chain (Dalian)Co.Ltd | Plant /Employee dormitory | 1,760,363.32 | 2,160,513.31 |
| Company under direct/indirect Control of Panasonic Co.,Ltd | Plant/ office / dormitory | 763,337.16 | 1,483,508.26 |
| Dalian Bingshan Part Technology Co.,Ltd. | Plant and office | 846,330.36 | 194,954.13 |
| Dalian Jingxue Freezing Equipment Co., Ltd. | Plant and office | 784,927.88 | 784,927.88 |
| Wuhan Sikafu Power Control Equipment Co., Ltd | Plant | 721,045.88 | 721,045.88 |
| Bingshan Technology Service （Dalian） Co., Ltd. | Plant and office | 310,725.81 | 355,081.77 |
| Dalian Bingshan Group Co., Ltd. | Office | 66,055.05 | 66,055.05 |
| Dalian Spindle Environmental Facilities Co., Ltd. | Office | 5,284.40 | 20,069.72 |
2) Assets under lease
| Lessor | Category of assets rent in | Lease premium paid | |
| Current year | Last year | ||
| Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd | Fixed asset | 573,090.24 | 25,173,657.70 |
| Sonyo Cold Chain(Dalian)Co.Ltd | Plant | 2,456,952.29 | - |
(Continued)
| Lessor | Interests on lease liabilities | Increased right-of-use assets | ||
| Current year | Last year | Current year | Last year | |
| Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd | 69,055.29 | 2,067,080.20 | - | - |
| Sonyo Cold Chain(Dalian)Co.Ltd | 378,902.66 | |||
(4) Lease under short term
| Lessee | Category of assets rent out | Current year Lease Income | Last year Lease Income |
| Dalian State-owned Assets Investment and Management Group Co.,Ltd. | Land | 873,740.74 | 873,740.74 |
(5) Warranty provided by Related Parties
The national development fund planned to support the Company’s intelligent and greenequipment of cold chain and service industry base project, and provide the special fund to thecontrolling shareholder of the Company, Bingshan Group. Please refer to the “ Note V. 33 longterm borrowings”.
(6) Funds borrow from /lent to related party
| Name of the related party | Amount | Starting date | Ending date | Explanation |
| Funds in | ||||
| Dalian Bingshan Group Co., Ltd. | 160,000,000.00 | 2016.03.14 | 2026.03.13 | Project fund investment |
| Dalian Bingshan Group | 13,805,309.73 | 2021.11.10 | 2026.11.09 | Sale and |
| Huahuida Financial Leasing Co.,Ltd | leaseback | |||
| Dalian Bingshan Group Huahuida Financial Leasing Co.,Ltd | 6,600,000.00 | 2023.02.24 | 2025.02.23 | Sale and leaseback |
| Dalian Bingshan Group Huahuida Financial Leasing Co.,Ltd | 2,000,000.00 | 2024.01.24 | 2026.01.23 | Sale and leaseback |
| Dalian Bingshan Group Huahuida Financial Leasing Co.,Ltd | 8,600,000.00 | 2024.07.26 | 2026.07.25 | Sale and leaseback |
| Dalian Bingshan Group Huayida Commercial Factoring Co., Ltd | 8,000,000.00 | 2024.01.19 | 2026.01.18 | Factoring |
| Dalian Bingshan Group Huayida Commercial Factoring Co., Ltd | 1,000,000.00 | 2024.06.19 | 2026.06.18 | Factoring |
| Dalian Bingshan Group Huayida Commercial Factoring Co., Ltd | 6,400,000.00 | 2024.07.31 | 2028.07.30 | Factoring |
| Dalian Bingshan Group Huayida Commercial Factoring Co., Ltd | 1,000,000.00 | 2024.07.26 | 2026.07.25 | Factoring |
| Dalian Bingshan Group Huayida Commercial Factoring Co., Ltd | 1,200,000.00 | 2024.08.26 | 2026.08.25 | Factoring |
| Dalian Bingshan Group Huayida Commercial Factoring Co., Ltd | 3,000,000.00 | 2024.09.14 | 2025.09.13 | Factoring |
| Dalian Bingshan Group Huayida Commercial Factoring Co., Ltd | 2,564,370.38 | 2024.10.23 | 2025.10.22 | Factoring |
| Dalian Bingshan Group Huayida Commercial Factoring Co., Ltd | 1,800,000.00 | 2024.10.31 | 2026.10.30 | Factoring |
| Dalian Bingshan Group Huayida Commercial Factoring Co., Ltd | 3,000,000.00 | 2024.11.15 | 2025.11.14 | Factoring |
| Dalian Bingshan Group Huayida Commercial Factoring Co., Ltd | 6,000,000.00 | 2024.12.15 | 2025.11.15 | Factoring |
| Dalian Bingshan Group Huayida Commercial Factoring Co., Ltd | 4,000,000.00 | 2024.12.27 | 2025.12.26 | Factoring |
(7) Asset transfer and debt restructuring among the related parties
| Item | Transaction | Current year | Last year |
| Sanyo Corporation | Purchase shareholdings of affiliated company | - | 87,171,300.00 |
| Panasonic Corporation of | Purchase shareholdings of | - | 58,114,200.00 |
| China Co., Ltd | affiliated company | ||
| Total | - | 145,285,500.00 |
(8) Management Remuneration
| Item | Current year | Last year |
| Total remuneration | 5,140,400.00 | 5,033,700.00 |
(9) Other transactions with related party
Noneiii. Balances with Related party
1.Accounts receivable due from related parties
| Item | Related party | Closing Balance | ||||||
| Book Balance | Bad debt Provision | |||||||
| Accounts receivable | Sonyo Cold Chain (Dalian)Co.Ltd | 70,233,768.67 | 5,769,841.07 | |||||
| Accounts receivable | BAC Dalian Co., Ltd | 29,726,955.86 | 2,086,832.30 | |||||
| Accounts receivable | Company under direct/indirect Control of Panasonic Co.,Ltd | 23,124,134.38 | 692,390.83 | |||||
| Accounts receivable | Sonyo Cold Chain Equipment (Wuhan) Co., Ltd. | 9,290,724.88 | 653,141.38 | |||||
| Accounts receivable | Bingshan Technology Service （Dalian） Co., Ltd. | 8,120,883.28 | 570,086.01 | |||||
| Accounts receivable | Dalian Bingshan Wisdom Park Co., Ltd | 7,476,477.33 | 1,390,028.46 | |||||
| Accounts receivable | Dalian Fuji Bingshan Vending Machine Co., Ltd | 5,051,832.96 | 354,638.67 | |||||
| Accounts receivable | Dalian Bingshan Group Huahuida Financial Leasing Co.,Ltd | 4,224,312.50 | 296,546.74 | |||||
| Accounts receivable | MHI Bingshan Refrigeration (Dalian) Co.,Ltd. | 3,105,512.32 | 218,006.97 | |||||
| Accounts receivable | Alphavita Bio-scientific (Dalian) Co., Ltd. | 2,265,320.79 | 246,626.01 | |||||
| Accounts receivable | Dalian Health and Wellness Industry Group Co., Ltd | 1,693,997.95 | 118,918.66 | |||||
| Accounts receivable | Linde Hydrogen Fueltech (Dalian) Co., Ltd | 786,500.99 | 223,828.69 | |||||
| Accounts receivable | Dalian Spindle Environmental Facilities Co., Ltd | 765,477.31 | 53,736.51 | |||||
| Accounts receivable | Dalian Fuji Bingshan Control System Co., Ltd. | 54,200.00 | 7,850.40 |
| Accounts receivable | Dalian Shentong Electric Co., Ltd | 50,652.00 | 3,555.77 |
| Accounts receivable | Jiangsu Jingxue Insulation Technology Co.,Ltd. | 3,570.00 | 1,051.32 |
| Other receivable | Bingshan Technology Service （Dalian） Co., Ltd. | 400,000.00 | 14,640.00 |
| Other receivable | Sonyo Cold Chain (Dalian)Co.Ltd | 260,719.09 | 18,302.48 |
| Contract asset | Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd | 432,562.50 | 30,365.89 |
| Contract asset | Dalian Bingshan Metal Technology Co.,Ltd | 9,250.00 | 649.35 |
| Contract asset | Dalian Health and Wellness Industry Group Co., Ltd | 1,000.00 | 70.20 |
| Prepayment | Dalian Shentong Electric Co., Ltd | 11,949,284.99 | - |
| Prepayment | Dalian Fuji Bingshan Control System Co., Ltd. | 2,127,955.54 | - |
| Prepayment | Company under direct/indirect Control of Panasonic Co.,Ltd | 1,632,646.65 | - |
| Prepayment | Bingshan Technology Service （Dalian） Co., Ltd. | 1,327,651.07 | - |
| Prepayment | BAC Dalian Co., Ltd | 216,202.86 | - |
| Prepayment | Dalian Bingshan Wisdom Park Co., Ltd | 23,888.59 | - |
(Continued)
| Item | Related party | Opening Balance | |
| Book Balance | Bad debt Provision | ||
| Accounts receivable | Sonyo Cold Chain (Dalian)Co.Ltd | 84,045,272.25 | 4,997,695.76 |
| Accounts receivable | BAC Dalian Co., Ltd | 28,426,981.24 | 1,995,574.08 |
| Accounts receivable | Company under direct/indirect Control of Panasonic Co.,Ltd | 12,595,875.91 | 174,589.96 |
| Accounts receivable | Dalian Bingshan Wisdom Park Co., Ltd | 10,199,546.41 | 807,170.38 |
| Accounts receivable | Dalian Fuji Bingshan Vending Machine Co., Ltd | 6,270,661.55 | 440,200.44 |
| Accounts receivable | MHI Bingshan Refrigeration (Dalian) Co.,Ltd. | 3,390,197.07 | 237,991.83 |
| Accounts receivable | Alphavita Bio-scientific (Dalian) Co., Ltd. | 2,791,425.71 | 200,691.99 |
| Accounts receivable | Dalian Bingshan Part Technology Co.,LTD | 1,606,085.44 | 52,796.80 |
| Accounts receivable | Dalian Spindle Environmental Facilities Co., Ltd | 1,072,064.56 | 75,258.93 |
| Accounts receivable | Bingshan Technology Service （Dalian） Co., Ltd. | 965,375.22 | 67,769.34 |
| Accounts receivable | Linde Hydrogen Fueltech (Dalian) Co., Ltd | 909,470.99 | 139,380.02 |
| Accounts receivable | Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd | 138,450.00 | 9,719.19 |
| Accounts receivable | Dalian Fuji Bingshan Control System Co., Ltd. | 54,200.00 | 6,410.69 |
| Other receivable | Bingshan Technology Service （Dalian） Co., Ltd. | 100,000.00 | 100,000.00 |
| Other receivable | Dalian Fuji Bingshan Vending Machine Co., Ltd | 48,000.00 | 7,608.00 |
| Other receivable | Wuhan Sikafu Power Control Equipment Co., Ltd. | 4,287.61 | 156.93 |
| Prepayment | Jiangsu Jingxue Insulation Technology Co.,Ltd. | 4,088,975.80 | - |
| Prepayment | Company under direct/indirect Control of Panasonic Co.,Ltd | 1,152,192.68 | - |
| Prepayment | Sonyo Cold Chain (Dalian)Co.Ltd | 636,235.00 | - |
| Prepayment | BAC Dalian Co., Ltd | 216,191.11 | - |
| Prepayment | Dalian Fuji Bingshan Vending Machine Co., Ltd | 176,869.45 | - |
| Prepayment | Dalian Fuji Bingshan Vending Machine Sales Co., Ltd. | 77,000.00 | - |
| Prepayment | Bingshan Technology Service （Dalian） Co., Ltd. | 74,297.11 | - |
| Prepayment | Dalian Bingshan Part Technology Co.,LTD | 13,806.00 | - |
| Contract asset | Dalian Bingshan Wisdom Park Co., Ltd | 550,000.00 | 38,610.00 |
1. Accounts Payable due from Related Party
| Item | Related party | Closing Balance | Opening Balance |
| Accounts Payable | Jiangsu Jingxue Insulation Technology Co.,Ltd | 51,228,592.31 | 65,052,640.75 |
| Accounts Payable | Sonyo Cold Chain (Dalian)Co.,Ltd | 18,271,180.03 | 10,067,451.24 |
| Accounts Payable | BAC Dalian Co., Ltd | 14,755,585.47 | 21,731,458.82 |
| Accounts Payable | Dalian Bingshan Metal Technology Co.,Ltd | 11,802,602.36 | 9,745,165.83 |
| Accounts Payable | Dalian Honjo Chemical Co., Ltd. | 7,135,583.64 | 6,672,533.86 |
| Accounts Payable | Dalian Bingshan Part Technology Co.,LTD | 4,717,413.12 | 6,266,070.43 |
| Accounts Payable | Jiangsu Jingxue Insulation Environmental Engineering Co.,Ltd | 2,026,200.00 | 2,896,300.00 |
| Accounts Payable | Dalian Shentong Electric Co., Ltd | 1,758,722.25 | |
| Accounts Payable | Company under direct/indirect Control of Panasonic Co.,Ltd | 1,167,608.32 | 864,418.25 |
| Accounts Payable | Bingshan Technology Service （Dalian） Co., Ltd. | 742,017.35 | 126,241.74 |
| Accounts Payable | Dalian Spindle Environmental Facilities Co., Ltd | 498,527.44 | 794,006.00 |
| Accounts Payable | Dalian Fuji Bingshan Control System Co., Ltd. | 322,272.97 | 502,571.47 |
| Accounts Payable | Jiangsu Jingxue Insulation Environmental Engineering Co.,Ltd | 207,616.60 | |
| Accounts Payable | Dalian Fuji Bingshan Vending Machine Co., Ltd | 5,907.73 | |
| Other payable | Dalian Bingshan Group Huayida Commercial Factoring Co., Ltd. | 7,986,275.11 | 15,000,000.00 |
| Other payable | Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd. | 5,500,000.00 | 7,407,941.90 |
| Other payable | Company under direct/indirect Control of Panasonic Co.,Ltd | 3,416,919.14 | 3,273,305.50 |
| Other payable | Dalian State-owned Assets Investment and Management Group Co.,Ltd. | 434,356.75 | |
| Other payable | Dalian Jingxue Freezing Equipment Co., Ltd. | 70,000.00 | |
| Other payable | Sanyo Corporation | 63,232.42 | |
| Other payable | Bingshan Technology Service （Dalian） Co., Ltd. | 14,946.50 | 104,625.50 |
| Other payable | Sonyo Cold Chain (Dalian)Co.,Ltd | - | 91,779.71 |
| Other payable | Jiangsu Jingxue Insulation Environmental Engineering Co.,Ltd | - | 70,000.00 |
| Non-current liability due within 1 year | Dalian Bingshan Group Huayida Commercial Factoring Co., Ltd. | 9,107,732.23 | |
| Non-current liability due within 1 year | Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd | 5,898,294.48 | 25,140,961.04 |
| Long-term payable | Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd | 2,649,273.56 | 10,331,937.30 |
| Long-term payable | Dalian Bingshan Group Huayida Commercial Factoring Co., Ltd. | 1,557,654.53 | |
| Short-term borrowing | Dalian Bingshan Group Huayida Commercial Factoring Co., Ltd. | 3,790,267.28 | 2,976,345.47 |
| Contract liability | Company under direct/indirect Control of Panasonic Co.,Ltd | 132,587.77 | 313,952.83 |
| Contract liability | Dalian Fuji Bingshan Control System Co., Ltd. | 38,509.12 | |
| Contract liability | Sonyo Cold Chain (Dalian)Co.Ltd | 15,258.81 | 35,605.27 |
| Contract liability | Dalian Honjo Chemical Co., Ltd. | 10,626.23 | |
| Contract liability | Bingshan Technology Service （Dalian） Co., Ltd. | - | 2,337,426.58 |
| Contract liability | Linde Hydrogen Fueltech (Dalian) Co., Ltd | - | 2,138,974.27 |
| Other current liability | Company under direct/indirect Control of Panasonic Co.,Ltd | 12,003.20 | 35,021.95 |
| Other current liability | Dalian Fuji Bingshan Control System Co., Ltd. | 5,006.18 | |
| Other current liability | Sonyo Cold Chain (Dalian)Co.Ltd | 1,983.64 | 4,628.68 |
| Other current liability | Dalian Honjo Chemical Co., Ltd. | 1,381.41 | |
| Other current liability | Linde Hydrogen Fueltech (Dalian) Co., Ltd | - | 319,616.84 |
| Other current liability | Bingshan Technology Service （Dalian） Co., Ltd. | - | 303,865.45 |
| Other current liability | Linde Hydrogen Fueltech (Dalian) Co., Ltd | - | - |
| Other current liability | Bingshan Technology Service （Dalian） Co., Ltd. | - | - |
| Lease payable | Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd | - | 656,980.83 |
i. Related Party CommitmentNoneii. Others
NoneXIII. Share-Based Payment
NoneXIV. Contingency & commitment
1. Commitment
None
2. Contingency
The Company sold water chiller and heat pump to Shangdong Jiechuang EnergyTechnology Co.,Ltd (“Shandong Jiechuang”) in the form of financial lease. The Companyas a seller singed finance lease contract with Huahuida as both a buyer and a lessor andShandong Jiechuang as a lessee. The contract price is 6.998million Yuan. ShandongJiechuang had made 10% down payment, and remaining 6.2982million Yuan is underlinedthe leasing contract amount. In case the lease premium is delayed by the lessee, theCompany needs to pay lease premium on behalf of the lessee and be obliged to the buyback responsibility. Shandong Jiechuang issued an unconditional, irrevocable and jointliability counter guarantee, and the Company is the beneficiary. Guarantee scope covers thefull liability because of the sales in the form of financial lease. As at 31 December 2024,the balance of the guarantee obligation of the financial lease is RMB2,011,900.00 Yuan.The Company sold refrigerating house equipment to Liuyang Zhongjie TechnologyInvestment Co.,Ltd (“Liuyang Zhongjie”) in the form of financial lease. The Company as aseller singed finance lease contract with Huahuida as both a buyer and a lessor and LiuyangZhongjie as a lessee. The contract price is 9.831million Yuan. In case the lease premium isdelayed by the lessee, the Company needs to pay lease premium on behalf of the lessee andbe obliged to the buy back responsibility. Liuyang Zhongjie issued an unconditional,irrevocable and joint liability counter guarantee, and the Company is the beneficiary.Guarantee scope covers the full liability because of the sales in the form of financial lease.As at 31 December, 2024, the balance of the guarantee obligation of the financial lease isRMB2,129,000.00 Yuan.The Company sold refrigeration equipment, air conditioning and production line equipmentto Shanxi Yiming Food Co., Ltd (‘Shanxi Yiming’) in the form of financial lease. TheCompany as a seller singed finance lease contract with Huahuida as both a buyer and alessor and Shanxi Yiming as a lessee. The contract price is 28.2311million Yuan. In casethe lease premium is delayed by the lessee, the Company needs to pay lease premium onbehalf of the lessee and be obliged to the buy back responsibility. Shareholders ShanxiYiming and nature person issued an unconditional, irrevocable and joint liability counterguarantee, and the Company is the beneficiary. Guarantee scope covers the full liabilitybecause of the sales in the form of financial lease. As at 31 December, 2024, the balance ofthe guarantee obligation of the financial lease is RMB 8.135million Yuan.
Dalian Bingshan-RYOSETSU Quick Freezing Equipment Co.,Ltd (‘Bingshan-RYOSETSU’), the subsidiary of the Company sold refrigeration equipment to Jilin FuyuAgricultural 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 alessor and Jinlin Fuyu as a lessee. The contract price is 20.50million Yuan. In case the leasepremium is delayed by the lessee, Bingshan- RYOSETSU needs to pay lease premium onbehalf of the lessee and be obliged to the buy back responsibility. Shareholders Jinlin Fuyuand nature person issued an unconditional, irrevocable and joint liability counter guarantee,and Bingshan- RYOSETSU is the beneficiary. Guarantee scope covers the full liabilitybecause of the sales in the form of financial lease. As at 31 December, 2024, the balance ofthe guarantee obligation of the financial lease is RMB 10.7512million Yuan.Until 31 December, 2024, the balance of all guarantee obligation of the financial lease isRMB 23.0271 million Yuan. There is no situation where the Company needs to undertakethe liability as the lessees’ default.There are no other significant or contingent matters to be disclosed until December, 2024XV. Events after the Balance Sheet Date
1. Unadjusted significant events
None
2. Information about profit distribution
| Item | Content |
| Planned profit/ dividend distribution | 42,160,625.35 |
| Profit/dividend approved for distribution declaration | The 3rd meeting of the 10th generation of board approved the profit appropriation policy for the year of 2024, based on 843,212,507.00 numbers of share in total, paying out cash dividend of 0.5Yuan for every 10 shares (before tax) and cash dividend of B shares are paid in Hong Kong dollars. |
3. Sales Return
There is no significant sales return after the balance sheet date.
4. Others
Except the subsequent event disclosed above, the Company has no other significantsubsequent event.XVI. Other Significant Events
1. Error correction and effect in previous period
None.
2. Debt Restructuring
None.
3. Asset exchange
(1) The exchange of non-monetary assets
None.
(2) The exchange of other assets
None.
4. Annuity Plan
None.
5. Operation termination
None.
6. Segment Information
The management of the group divided the business into 2 segments based on the geographicarea: Northeast China and Central China. The Northeast is the Company’s general headquartersand the subsidiaries registered in Dalian. The Central includes Chengdu Bingshan RefrigerationEngineering Co., Ltd, Wuhan New World Refrigeration Industrial Co., Ltd and its subsidiary,Wuhan Lanning Energy Technology Co., Ltd. and Wuhan New World Air-conditioning RefrigerationEngineering Co., Ltd.
(1) The basis and accounting policies of reporting segments
The internal organization structure, management requirements and internal report scheme arethe determination basis for the Company to set the operating segments. The segments are thosesatisfied 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 priceamong segments is set base on the market price. The assets and related expenses in common useare allocated to different segments based on their proportion of revenue.
(2) The financial information of reporting segments：
| Items | Northeast China | Central China | Offset | Total |
| 1 Operating income | 4,844,889,579.60 | 223,444,799.45 | -537,187,170.07 | 4,531,147,208.98 |
| 2 Cost | 4,076,891,799.35 | 212,571,959.31 | -525,655,542.47 | 3,763,808,216.19 |
| Impairment loss on assets | -19,229,984.12 | -8,707,129.61 | 361,653.09 | -27,575,460.64 |
| Impairment loss on credit | -17,221,525.83 | -4,450,358.42 | 4,451,281.96 | -17,220,602.29 |
| Depreciation and amortization | 136,361,622.94 | 10,017,634.57 | -149,150.00 | 146,230,107.51 |
| 3 Investment income from associates and joint venture | - | - | - | - |
| 4 Operating profits(loss) | 247,351,049.26 | -15,817,862.84 | -105,889,883.40 | 125,643,303.02 |
| 5 Income tax | 9,975,816.20 | 627,028.44 | 1,358,478.61 | 11,961,323.25 |
| 6 Net profit(loss) | 237,375,233.06 | -16,444,891.28 | -107,248,362.01 | 113,681,979.77 |
| 7 Total assets | 10,087,183,612.11 | 443,956,681.39 | -2,902,824,806.15 | 7,628,315,487.35 |
| 8 Total liabilities | 4,751,720,458.28 | 373,083,443.78 | -685,597,870.15 | 4,439,206,031.91 |
(3) Others
None
7. Other important transactions and matters affect the investor's decisionThe group hasn’t had other important transactions and matters affect the investor's decision inthis period.
XVII. 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 | 252,493,482.65 | 457,075,717.70 |
| 1-2 years | 168,666,036.29 | 124,339,052.45 |
| 2-3 years | 55,975,990.70 | 58,073,083.27 |
| Over 3 years | 148,746,595.23 | 109,679,441.52 |
| 3-4 years | 38,330,982.87 | 49,782,646.14 |
| 4-5 years | 55,105,024.02 | 2,186,288.76 |
| Over 5 years | 55,310,588.34 | 57,710,506.62 |
| Total | 625,882,104.87 | 749,167,294.94 |
(2) Accounts receivable category
| Item | Closing Balance | ||||
| Booking balance | Provision | Booking value | |||
| Amount | % | Amount | % | ||
| Bad debt provision on group | 625,882,104.87 | 100.00 | 158,917,243.15 | 25.39 | 466,964,861.72 |
| (1) Accounting age as characters | 474,142,917.60 | 75.76 | 158,917,243.15 | 33.52 | 315,225,674.45 |
| (2) Related party within consolidation scope | 151,739,187.27 | 24.24 | - | - | 151,739,187.27 |
| Total | 625,882,104.87 | 100.00 | 158,917,243.15 | 25.39 | 466,964,861.72 |
(Continued)
| Item | Opening Balance | ||||
| Booking balance | Provision | Booking balance | |||
| Amount | % | Amount | % | ||
| Bad debt provision on group | 749,167,294.94 | 100.00 | 136,234,112.03 | 18.18 | 612,933,182.91 |
| (1) Accounting age as characters | 492,240,628.86 | 65.71 | 136,234,112.03 | 27.68 | 356,006,516.83 |
| (2) Related party within consolidation scope | 256,926,666.08 | 34.29 | - | - | 256,926,666.08 |
| Total | 749,167,294.94 | 100.00 | 136,234,112.03 | 18.18 | 612,933,182.91 |
1) Bad debt provisions on group basis
| Aging | Closing Balance | ||
| Accounts receivable | Provision for bad debts | Drawing Proportion (%) | |
| Within 1 year | 179,204,272.90 | 12,580,139.96 | 7.02 |
| 1-2 years | 90,216,058.77 | 15,102,168.24 | 16.74 |
| 2-3 years | 55,975,990.70 | 17,257,397.93 | 30.83 |
| 3-4 years | 38,330,982.87 | 18,908,673.85 | 49.33 |
| 4-5 years | 55,105,024.02 | 39,758,274.83 | 72.15 |
| Over 5 years | 55,310,588.34 | 55,310,588.34 | 100.00 |
| Total | 474,142,917.60 | 158,917,243.15 | —— |
(3) Bad debt provision
| Category | Opening balance | Change during the year | Closing Balance | |||
| Accrued | Collected/ reversed | Written-off | Other | |||
| Bad debt provision | 136,234,112.03 | 22,667,304.12 | - | - | 15,827.00 | 158,917,243.15 |
| Total | 136,234,112.03 | 22,667,304.12 | - | - | 15,827.00 | 158,917,243.15 |
(4) Top 5 receivable and contract assets
Based on closing balance ranking, sum of the top five significant receivable and contract asset are267,902,529.92Yuan, representing 42.80% of total receivables and contract asset at the year end42,061,046.61Yuan bad debt provision is provided respectively.
2. Other Receivables
| Item | Closing Balance | Opening Balance |
| Dividend receivable | 100,000,000.00 | 110,000,000.00 |
| Other receivable | 28,957,016.22 | 28,883,665.74 |
| Total | 128,957,016.22 | 138,883,665.74 |
2.1 Dividend receivable
| Item | Closing Balance | Opening Balance |
| Sonyo Compressor (Dalian)Co.,Ltd. | 100,000,000.00 | 110,000,000.00 |
| Total | 100,000,000.00 | 110,000,000.00 |
2.2 Other receivable
(1) The category of other receivables
| Items | Closing Balance | Opening Balance |
| Receivables and payables | 20,032,160.00 | 20,260,866.63 |
| Deposits | 7,181,055.11 | 8,478,407.11 |
| Petty cash | 904,835.68 | 580,451.46 |
| Others | 1,306,589.74 | - |
| Total | 29,424,640.53 | 29,319,725.20 |
(2) Other receivable listed by account aging
| Aging | Closing Balance | Opening Balance |
| Within 1 year | 4,758,618.79 | 3,049,940.86 |
| 1-2 years | 1,177,004.63 | 3,316,384.23 |
| 2-3 years | 1,805,617.00 | 1,315,000.00 |
| Over 3 years | 21,683,400.11 | 21,638,400.11 |
| 3-4 years | 115,000.00 | 20,210,000.00 |
| 4-5 years | 20,210,000.00 | 229,835.11 |
| Over 5 years | 1,358,400.11 | 1,198,565.00 |
| Total | 29,424,640.53 | 29,319,725.20 |
(3) Other receivable classified by provision method
| Item | Closing Balance | ||||
| Booking balance | Provision | Booking value | |||
| Amount | % | Amount | % | ||
| Bad debt provision on individual | - | - | - | - | - |
| Bad debt provision on group | 29,424,640.53 | 100.00 | 467,624.31 | 1.59 | 28,957,016.22 |
| (1) Accounting age as characters | 9,392,480.53 | 31.92 | 467,624.31 | 4.98 | 8,924,856.22 |
| (2) Related party within consolidation | 20,032,160.00 | 68.08 | - | - | 20,032,160.00 |
| scope | |||||
| Total | 29,424,640.53 | 100.00 | 467,624.31 | 1.59 | 28,957,016.22 |
(continued)
| Item | Opening Balance | ||||
| Booking balance | Provision | Booking value | |||
| Amount | % | Amount | % | ||
| Bad debt provision on individual | - | - | - | - | - |
| Bad debt provision on group | 29,319,725.20 | 100.00 | 436,059.46 | 1.49 | 28,883,665.74 |
| (3) Accounting age as characters | 9,319,725.20 | 31.79 | 436,059.46 | 4.68 | 8,883,665.74 |
| (4) Related party within consolidation scope | 20,000,000.00 | 68.21 | - | - | 20,000,000.00 |
| Total | 29,319,725.20 | 100.00 | 436,059.46 | 1.49 | 28,883,665.74 |
1) Bad debt provisions on group basis
| Aging | Closing Balance | ||
| Accounts receivable | Provision for bad debts | Drawing Proportion (%) | |
| Within 1 year | 4,726,458.79 | 172,988.39 | 3.66 |
| 1-2 years | 1,177,004.63 | 43,078.37 | 3.66 |
| 2-3 years | 1,805,617.00 | 66,085.58 | 3.66 |
| 3-4 years | 115,000.00 | 4,209.00 | 3.66 |
| 4-5 years | 210,000.00 | 7,686.00 | 3.66 |
| Over 5 years | 1,358,400.11 | 173,576.97 | 12.78 |
| Total | 9,392,480.53 | 467,624.31 | —— |
2) The bad debt provision of other receivable
| bad debt provision | 1st stage | 2nd stage | 3rd stage | Total |
| Expected credit loss within 12 months | Expected credit loss within the whole period(no impairment) | Expected credit loss within the whole period(impairment incurred) | ||
| Opening balance | 287,321.36 | - | 148,738.10 | 436,059.46 |
| Opening balance during the year | — | — | — | — |
| --transfer to the 2nd stage | ||||
| --transfer to the 3rd stage | ||||
| --reverse to the 2nd stage | ||||
| ----reverse to the 1st stage | ||||
| Accrued | 51,737.95 | 51,737.95 | ||
| Reverse | 20,173.10 | 20,173.10 | ||
| Cancelation | ||||
| Written off | ||||
| Other movement | ||||
| Closing balance | 339,059.31 | 128 565.00. | 467,624.31 |
(4) Bad debt provision details
| Category | Opening balance | Change during the year | Closing Balance | |||
| Accrued | Collected/ reversed | Written-off | Others | |||
| Bad debt provision | 436,059.46 | 51,737.95 | 20,173.10 | - | - | 467,624.31 |
| Total | 436,059.46 | 51,737.95 | 20,173.10 | - | - | 467,624.31 |
(5) Other receivables from the top 5 debtors
| Name | Category | Closing Balance | Aging | % of the total | Closing Balance of Provision |
| Wuhan New World Refrigeration Industrial Co., Ltd | Receivable | 20,000,000.00 | 4-5 years | 67.97 | - |
| Deta Town Gas | Other deposit | 1,100,000.00 | Over5 years, | 3.74 | 40,260.00 |
| Xinjiang Jinghui New Materials Co., Ltd | Bid deposit | 800,000.00 | 1-2 years | 2.72 | 29,280.00 |
| Inner Mongolia Daquan New Energy Co., Ltd | Bid deposit | 800,000.00 | 2-3 years | 2.72 | 29,280.00 |
| Dalian Yongsheng Hardware and Electrical Co., Ltd | Others | 680,400.00 | Within 1 year | 2.31 | 24,902.64 |
| Total | — | 23,380,400.00 | — | 79.46 | 123,722.64 |
3. Long-term equity investments
(1) Category of long-term equity investments
| Item | Closing Balance | Opening Balance | ||||
| Closing Balance | Provision | Book Value | Opening Balance | Provision | Book Value | |
| Investment of subsidiaries | 2,432,830,861.29 | - | 2,432,830,861.29 | 2,416,830,861.29 | - | 2,416,830,861.29 |
| Investment of affiliates and JV | 473,699,761.22 | - | 473,699,761.22 | 513,550,283.58 | - | 513,550,283.58 |
| Total | 2,906,530,622.51 | - | 2,906,530,622.51 | 2,930,381,144.87 | - | 2,930,381,144.87 |
(2) Investments of subsidiaries
| Investee | Beginning balance | Provision for impairment at beginning of year | Increase/Decrease | Ending balance | Provision for impairment at year end | |||
| Increased | Decreased | Provision for impairment | Others | |||||
| Dalian Bingshan Group Engineering Co., Ltd | 293,749,675.77 | - | - | - | - | - | 293,749,675.77 | - |
| Dalian Bingshan Group Sales Co., Ltd | 20,722,428.15 | - | - | - | - | - | 20,722,428.15 | - |
| Dalian Bingshan Air-Conditioning Equipment Co., Ltd | 53,272,185.00 | - | 16,000,000.00 | - | - | - | 69,272,185.00 | - |
| Dalian Bingshan Guardian Automation Co., Ltd | 50,638,361.52 | - | - | - | - | - | 50,638,361.52 | - |
| Dalian Bingshan-RYOSETSU Quick Freezing Equipment Co., Ltd | 59,356,051.19 | - | - | - | - | - | 59,356,051.19 | - |
| Dalian Universe Thermal Technology Co.,Ltd | 48,287,589.78 | - | - | - | - | - | 48,287,589.78 | - |
| Wuhan New World Refrigeration Industrial Co., Ltd | 184,674,910.81 | - | - | - | - | - | 184,674,910.81 | - |
| Dalian Bingshan Engineering & Trading Co., Ltd | 71,537,064.86 | - | - | - | - | - | 71,537,064.86 | - |
| Sonyo Compressor (Dalian)Co.,Ltd | 1,380,455,603.23 | - | - | - | - | - | 1,380,455,603.23 | - |
| Sonyo Refrigeration System (Dalian) Co., Ltd | 108,851,490.98 | - | - | - | - | - | 108,851,490.98 | - |
| Sonyo Refrigeration (Dalian) Co., Ltd | 145,285,500.00 | - | - | - | - | - | 145,285,500.00 | - |
| Total | 2,416,830,861.29 | - | 16,000,000.00 | - | - | - | 2,432,830,861.29 | - |
(3) Joint ventures& affiliated companies
| Investee | Beginning balance | Increase/Decrease | Ending balance | Provision for impairment at year end | ||||||||
| Provision for impairment at beginning of year | Increased | Decreased | Gains and losses recognized under the equity method | Adjustment of other comprehensive income | Changes of other equity | Cash bonus or profits announced | Provision for impairment | Others | ||||
| 1. Affiliated company | ||||||||||||
| Dalian Honjo Chemical Co., Ltd | 8,160,024.36 | - | - | - | 302,081.37 | - | - | - | - | - | 8,462,105.73 | - |
| Keinin-Grand Ocean Thermal Technology (Dalian) Co., Ltd | 57,579,975.00 | - | - | - | -4,257,688.27 | - | - | - | - | - | 53,322,286.73 | - |
| Dalian Fuji Bingshan Vending Machine Co., Ltd | 67,610,418.09 | - | - | - | -514,319.31 | - | - | - | - | - | 67,096,098.78 | - |
| MHI Bingshan Refrigeration (Dalian) Co., Ltd. | 16,543,655.54 | - | - | - | 202,819.43 | - | - | - | - | - | 16,746,474.97 | - |
| Dalian Fuji Bingshan Vending Machine Sales Co., Ltd | - | - | - | - | - | - | - | - | - | - | - | - |
| Jiangsu Jingxue Insulation Technology Co.,Ltd | 144,354,903.91 | - | - | - | 4,400,840.64 | - | - | 3,220,344.00 | - | - | 145,535,400.55 | - |
| Bingshan Metal Technical Service | 173,250,850.13 | - | - | 34,931,610.00 | 28,344,672.03 | - | - | 30,759,188.94 | - | - | 135,904,723.22 | - |
| （Dalian） Co., Ltd. | ||||||||||||
| Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd | 46,050,456.55 | - | - | - | 1,218,624.64 | - | - | 636,409.95 | - | - | 46,632,671.24 | - |
| Total | 513,550,283.58 | - | - | 34,931,610.00 | 29,697,030.53 | - | 34,615,942.89 | - | - | 473,788,407.15 | - |
4. Operating revenue and cost
| Item | Current year | Last year | ||
| Revenue | Cost | Revenue | Cost | |
| Revenue from main operation | 659,943,953.87 | 583,283,354.16 | 1,075,630,556.46 | 894,335,541.56 |
| Revenue from other operation | 36,515,698.20 | 21,115,829.87 | 71,936,541.24 | 55,064,727.51 |
| Total | 696,459,652.07 | 604,399,184.03 | 1,147,567,097.70 | 949,400,269.07 |
5. Investment income
| Items | Current year | Last year |
| Long-term equity investment gain under cost method | 106,062,894.23 | 137,049,291.85 |
| Long-term equity investment gain under equity method | 29,697,030.53 | -5,506,787.08 |
| Gain from holding of other non-current financial assets | 5,400,504.40 | 5,782,304.24 |
| Gain from disposal of other non-current financial assets | 33,277,105.94 | - |
| Discounting fees for bank acceptance note | -159,492.41 | -159,560.15 |
| Gain on debt restructuring | -130,005.76 | - |
| Total | 174,148,036.93 | 137,165,248.86 |
6. Others
NoneXVIII. Supplementary Information to the Financial Statements
1. Non-operating profit or loss
| Items | Current year | Notes |
| Gain or loss from disposal of non-current assets (including written off part of the impairment provision) | -758,256.80 | |
| Government grants recorded into profit or loss | 19,490,628.71 | |
| The gain or loss of fair value changes arising from the holding of financial assets and financial liabilities by non-financial enterprises and the loss or profit arising from the disposal of them, apart from the effective hedging for the normal business operation. | 60,482,638.34 | |
| Expenses for using funds from non-financial institution recognized in current profit/loss | - | |
| Profits/loss from investments or management of assets entrusted by others | - | |
| Investment income on entrusted loan | - | |
| Assets impairment provision accrued due to force majeure, e.g.: suffering natural disasters | - | |
| Reversal of impairment provision of accounts receivable separately tested for | 4,324,906.64 |
| impairment | ||
| Gains from acquisition of subsidiary or associates when initial cost is less than the fair value of identifiable net asset of invested company | - | |
| Net gain/loss of subsidiary from combination under same control between the beginning of year and consolidation date. | - | |
| Profits/loss from non-monetary assets exchange | - | |
| Profit or loss from debts restructuring | 2,154,769.80 | |
| One-off expenses incurred for discontinued operation activities such as the expense of relocating employees | -6,774,379.53 | |
| Effects of gain/loss from one-off adjustments of gain/loss based on laws and regulations of taxation and accounting. | - | |
| Share payment arising from the cancellation or modification of share incentive plans | - | |
| For cash settled share payment, gains and losses arising from changes in the fair value of employee payable after the exercise date | - | |
| The profits/gains from changes of fair value for investment property subsequently measured at fair value model | - | |
| Gain/loss on excessive part from the transaction where the trading price is obviously unfair. | - | |
| Gains/ loss from contingencies beyond the normal business | -402,140.00 | |
| Custodian fees obtained from entrusted operations | - | |
| Non-operating revenue and expense besides the above items | 8,152,168.63 | |
| Other profit or loss | - | |
| Subtotal | 86,670,335.79 | |
| Effect on income tax | 10,575,731.10 | |
| Attributable to minority shareholders’ equity (after tax) | 27,843.47 | |
| Total | 76,066,761.22 |
2. Return on equity and earnings per share
| Profit of report period | Weighted average return on net assets (%) | Earnings per share (EPS) | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to shareholders of parent company | 3.57 | 0.13 | 0.13 |
| Net profit after deducting non-recurring gains and losses attributable to shareholders of parent company | 1.11 | 0.04 | 0.04 |
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd
April 24, 2025