Stock Code: 000530; 200530 Short Form of the Stock: Bingshan; Bingshan B; No: 2021-009
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
2020 Annual Report Summary
§1 Important Notes
This summary is extracted from the original of the annual report. For more information, theinvestors are recommended to refer to the original.
Note to the “Non-standardized Opinion”
□Applicable √Inapplicable
The profit distribution proposal
√Applicable □Inapplicable
Transfer the capital reserve to increase capital stock
□Applicable √Inapplicable
The profit distribution proposal reviewed and adopted at this Board meeting of the Company is:
based on the total share capital of the Company of 843,212,507 shares, pay to all shareholders thecash dividend of 0.1 yuan (inclusive the tax) for every 10 shares .The Company will not transferthe capital reserve to increase capital stock.Company Profile
| Short form of the stock | Bingshan; Bingshan B | |
| Stock code | 000530; 200530 | |
| Listed stock exchange | Shenzhen Stock Exchange | |
| Contact persons | Secretary of the Board of Directors | Authorized representative in charge of securities affairs |
| Name | Song Wenbao | Du Yu |
| Contact address | Securities﹠Legal Affairs No.106, Liaohe East Road, Dalian Economic and Technological Development Zone | Securities﹠Legal AffairsNo.106, Liaohe East Road, Dalian Economic and Technological Development Zone |
| Telephone | 0411-87968130 | 0411-87968822 |
| Fax | 0411-87968125 | 0411-87968125 |
| 000530@bingshan.com | 000530@bingshan.com | |
§2 The Company’s Main business during the reporting periodThe Company revolves around hot and cold businesses, is committed to developing Industrialrefrigeration and heating business field, commercial refrigeration and refrigeration business field,air-conditioning and environment business field, core parts business field, engineering and servicebusiness field have covered the key areas of the cold and hot industrial chain and forged thecomplete cold and hot industrial chain in China.
§3 Summary of Accounting Data and Financial Indexes
3.1 Main accounting data (Unit: RMB Yuan)
Did the Company retroactively adjust or restate the accounting data of previous years due tochange in the accounting policy and correction of accounting mistakes?
□Applicable √Inapplicable
| 2020 | 2019 | Increase/decrease compared with previous year | 2018 | |
| Operating revenue | 1,727,267,935.15 | 1,831,851,280.70 | -5.71% | 1,966,064,612.44 |
| Net profit attributable to shareholders of listed companies | 21,341,133.39 | 89,112,113.43 | -76.05% | 110,503,175.90 |
| Net profit belonging to the shareholders of listed companies after the deduction of non-recurring profit and loss | 6,128,351.99 | 21,406,535.65 | -71.37% | 45,862,588.97 |
| Net cash flow from operating activities | -13,142,427.45 | 12,695,071.81 | -203.52% | -119,657,885.64 |
| Basic earnings per share | 0.025 | 0.106 | -76.42% | 0.13 |
| Diluted earnings per share | 0.025 | 0.106 | -76.42% | 0.13 |
| Weighted average return on net asset yield | 0.64% | 2.63% | Decrease 1.99 percentage points | 3.21% |
| 2020.12.31 | 2019.12.31 | Increase/decrease compared with previous year | 2018.12.31 | |
| Total assets | 5,681,568,328.36 | 5,525,503,256.26 | 2.82% | 5,568,279,452.26 |
| Owner's equity attributable to shareholders of listed companies | 3,375,609,788.07 | 3,379,565,029.89 | -0.12% | 3,377,633,617.02 |
3.2 The quarter main financial indicators (Unit: RMB Yuan)
| the first quarter | the second quarter | the third quarter | the fourth quarter | |
| Operating revenue | 463,218,112.74 | 410,185,301.72 | 462,998,187.84 | 390,866,332.85 |
| Net profit attributable to shareholders of listed companies | -58,673,476.79 | 35,069,131.27 | 27,947,259.43 | 16,998,219.48 |
| Net profit belonging to the shareholders of listed companies after the deduction of non-recurring profit and loss | -29,177,871.92 | 20,920,876.93 | 10,312,723.62 | 4,072,623.36 |
| Net cash flow from operating activities | -81,344,046.60 | 2,993,357.85 | -18,397,809.85 | 83,606,071.15 |
§4 Share Capital and Shareholders' Information
4.1 Statement of shares held by the top ten shareholders
| Total number of shareholders in the reporting period | 54,931 | Total number of shareholders as of the last month before disclosure of the annual report | 45,887 | ||||||
| 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 | ||||
| Lin Zhenming | Foreign natural person | 0.80% | 6,740,000 | ||||||
| Zhang Sufen | Domestic natural person | 0.60% | 5,100,000 | ||||||
| Wu An | Domestic natural person | 0.53% | 4,500,000 | ||||||
| Sun Huiming | Domestic natural person | 0.52% | 4,384,079 | ||||||
| Xue Hong | Domestic natural person | 0.42% | 3,550,000 | ||||||
| Dalian industrial development investment Co., Ltd. | Domestic non-state-owned legal person | 0.40% | 3,406,725 | ||||||
| Kong Guiyan | Domestic natural person | 0.37% | 3,108,054 | ||||||
| Li Xiaohua | Domestic natural person | 0.36% | 3,062,908 | ||||||
| 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. | ||||||||
4.2 Particulars about controlling shareholders and actual controller of the Company
§5 Corporate BondsThe Company’s non-public issuance of exchangeable corporate bonds was listed at the ShanghaiStock Exchange on August 6, 2018. As of August 1, 2018, according to the using plan disclosed inthe prospectus, the raised funds of the Company’s non-public issuance of exchangeable corporatebonds have been used to repay bank loans. The special account for the Company's 2018exchangeable corporate bonds fund raising was cancelled in March 2019. Till the reporting period,the Company's exchangeable corporate bondholders exchanged a total of 8.3889 million shares.
§6 Management discussion and analysis
6.1 Business review for 2020
In 2020, the Company continued to focus on "exploitation, pragmatism, collaboration and action"to maintain strategic momentum, strengthen development confidence, focus on hot and cold mainbusinesses, deepen market segmentation, continuously improve and innovate, and strive to achievemain business objectives. In 2020, the company achieved operating income of 1,727,267,935.15yuan, a decrease of 5.71% on a year-on-year basis; net profit attributable to shareholders of listedcompanies was 21,341,133.39 yuan, a significant decrease on a year-on-year basis. The substantialchange in net profit was mainly due to the large amount of non-recurring income in the sameperiod last year, the large amount of non-recurring losses during the reporting period, and thedecrease in operating income of associates, which resulted in a corresponding decrease in theCompany's investment income.
During the reporting period, the Company made steady progress and operated prudently. Theprevention and control of the epidemic situation was carried out pragmatically, the production andoperation were stable and orderly, and the sales and orders steadily rebounded, and theimprovement of main business achieved initial results. Optimized the business and coordinationsystem, and more closely integrated technology and market. Renamed the Company, unified thetrade name and trademark, enhanced the brand value of Bingshan, and highlighted the Company'shot and cold main business.
During the reporting period, Wuhan New World Refrigeration, a subsidiary of the Company,faced the impact of the epidemic and made efforts to reduce expenditure and increase revenue.Implemented flexible working system to improve the efficiency of employees' on-the-joboperations and reduce labor costs. Strengthened the recovery of long-term debt and reduced assetimpairment losses. Implemented product optimization to improve operational stability. Set up aspecial team to strengthen the market expansion of standard products and energy products.
During the reporting period, Bingshan Engineering Company, a subsidiary of the Company,established a professional work department to further develop its superior market segment. Takingadvantage of the first class qualifications, we won the bid for many representative projects such ascarbon dioxide project, corn deep processing project, central kitchen project, and ammonia systemimprovement project. The natural gas liquefaction market achieved new developments, and LNGgeneral contracting projects got new orders.The installation of the freezing station for large air-cooled cold-storage transport boats that brokethe monopoly of foreign ships was completed.
During the reporting period, Bingshan Service Company, a subsidiary of the Company,
accelerated digital applications through online and offline two-wheel drives. BingshanIndustrial Refrigeration Technology Service Cloud Platform was awarded as the "Service-orientedManufacturing Demonstration Platform in Liaoning Province" and has provided services for manyBingshan-funded enterprises. The machine room custody and transportation business was steadily
promoted, the layout of national service outlets was optimized in an orderly manner, and theservice capacity and management capabilities continued to be improved.
During the reporting period, Panasonic Appliances Compressor, the Company's associatedcompany, continued to promote its transformation. Through the reform of the marketing systemand the optimization of the product structure, the focus of sales has shifted from large customersto small and medium-sized customers, from the light commercial air-conditioning field to themulti-field coordinated development of refrigeration, rail transit and other fields. The CO
two-stage rolling rotor compressor for rail transit air-conditioning was selected as the "InnovativeProduct of China Refrigeration Expo 2020". It was awarded as the "Enterprise Technology Centerin Liaoning Province". As the scroll compressor continuously being replaced by the rotorcompressor in the light commercial air-conditioning field and affected by the decline in overseassales, the net profit realized in 2020 decreased on a year-on-year basis.
During the reporting period, Panasonic Appliances Cold Chain, an associate company of theCompany, focused on the new retail and new catering markets. On the basis of strengthening salesin the supermarket, focused on core products such as refrigerating smart self pick-up cabinets,heating smart dining cabinets, and refrigerating smart vending cabinets, and optimized contactlessdistribution/sales solutions. Due to the decline in overseas sales and the existence of large equitytransfer income in the same period last year, the net profit realized in 2020 had a dramatic declineon a year-on-year basis.
During the reporting period, Panasonic Appliances Refrigeration, an associate company of theCompany, continued to improve its core competitiveness. Engineering orders increasedsignificantly, and it signed 4 Olympic skating rink projects, and undertook several EPC projects.The optimization of the product structure was accelerated, and the CO
trans-critical pistoncompressor unit was sold. The full life cycle cold chain engineering network cloud platform withintegrated solutions as the core was built in an orderly manner, and digital applications werefirmly advanced. It was awarded as the "Gazelle Enterprise in Liaoning Province".
During the reporting period, Fuji Bingshan, an associate company of the Company, continued toadjust its marketing model and strengthen its leading products. Reduced the traditional marketingmodel based on operators, expanded the development of brand marketing, and promoted specialmarketing. Focused on leading products such as beverage machines, coffee machines, andintegrated machines to better utilize comparative advantages. Affected by the financial strain ofoperators and the slowdown in market expansion, the net profit realized in 2020 had a dramaticdecline on a year-on-year basis.
During the reporting period, Jingxue Company, an associate company of the Company, as anenterprise under review for the initial public offering on the ChiNext of the China SecuritiesRegulatory Commission, submitted relevant applications to the ChiNext that started the pilotregistration system, and was officially accepted by the Shenzhen Stock Exchange on July 1, 2020,and passed the deliberation of the ChiNext Listing Committee on December 29, 2020, it alsoneeds to obtain a decision from the China Securities Regulatory Commission approving theregistration
During the reporting period, in order to further focus on the hot and cold main business andstrengthen the improvement of main business, the Company transferred all its 49% equity ofDalian Bingshan Group Management Consulting Co., Ltd.
6.2 Major change or adjustment in the Company's main business in the reporting period
□Applicable √Inapplicable
6.3 Main business structure
□Applicable √Inapplicable
| product | Operating revenue | Operating profit | Gross profit | Increase/decrease of Operating profit 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 |
| Refrigeration and air-conditioning equipment | 1,680,314,480.42 | 278,939,529.38 | 16.60% | -5.93% | -7.78% | Decrease 0.33 percentage points |
6.4 Is there a need to pay particular attention to the operation of seasonal or cyclical features?
□Applicable √Inapplicable
6.5 Major change in the Company's business revenue, business cost, or net profit attributable toshareholders of listed companies in the reporting period
□Applicable √Inapplicable
6.6 Face suspension of listing and termination of the listing
□Applicable √Inapplicable
6.7 Matters related to financial report
6.7.1 Change in accounting policies, accounting estimates and accounting methods compared withthe financial statements of the previous year
√Applicable □Inapplicable
On July 5th, 2017, the Ministry of Finance announced amendment to “Accounting Standards forBusiness Enterprises No.14-income "(No22 Caikuai[2017]) (hereinafter referred to as “updatedincome standard”). Since January 1, 2018, the updated income standard took effect for either thecompany both listed in overseas and domestic or IFRS or Accounting Standards for BusinessEnterprises adoption of the company listed overseas. The rest of domestic listed companies shalladopt the standard since January 1, 2020. When preparing the financial statements for 2020FY, thepolicy has been adopted and the accounting has been done in accordance with this standard.New revenue standard took effect since January 1, 2020 and introduced 5 steps for revenuerecognition and gave more instruction to special transactions (or matters). The new revenueaccounting policy is referred to the note IV. 28. The new revenue standard requests thecumulative effects shall be adjusted in the opening accounts (on January 1, 2020) of retainedearnings and other items in the financial statements for the first adoption and no adjustments arerequested for the comparative figures. When adopting the new revenue standard, the companyonly adjusted the cumulative effects for incomplete contract on the first adoption date. Anychanges of contract prior to the beginning period of the first adoption year, shall be simplified bythe company. New revenue standard adoption and effect on the comparison figure as follows:
Consolidated balance sheet
| Effected Items | December 31st,2019 | Effect on new standard adoption | January 1st,2020 |
| Accounts receivable | 1,030,342,541.88 | -73,210,394.19 | 957,132,147.69 |
| Contract asset | 73,210,394.19 | 73,210,394.19 | |
| Received in advance | 160,571,622.53 | -160,571,622.53 | |
| Contract liability | 142,098,781.00 | 142,098,781.00 | |
| Other current liability | 18,472,841.53 | 18,472,841.53 |
Balance sheet of parent company
| Effected Items | December 31st,2019 | Effect on new standard adoption | January 1st,2020 |
| Accounts receivable | 526,554,114.61 | -17,803,062.64 | 508,751,051.97 |
| Contract asset | 17,803,062.64 | 17,803,062.64 | |
| Received in advance | 47,114,426.48 | -47,114,426.48 | |
| Contract liability | 41,694,182.73 | 41,694,182.73 | |
| Other current liability | 5,420,243.75 | 5,420,243.75 |
6.7.2 Correction of major accounting mistakes in the reporting period, which should beretroactively restated
□Applicable √Inapplicable
6.7.3 Explanation on change of consolidation scope in the report period compared with the latestannual report
□Applicable √Inapplicable
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
April 24, 2021