Stock Code: 000530; 200530 Short Form of the Stock:Bingshan; Bingshan B No:2021-040 Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.QUARTERLY REPORT FOR THIRD QUARTER, 2021 Important Notes 1. The directors and the Board of Directors, the supervisors and the Supervisory Board, and Senior staff members of Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. (hereinafter referred to as theCompany) hereby confirm that there are no any important omissions, fictitious statements or seriousmisleading carried in this report, and shall take all responsibilities, individual and/or joint, for the reality,accuracy and completeness of the whole contents. 2. Chairman of the Board of Directors of the Company Mr. Ji Zhijian, Financial Majordomo Mrs. Wang Jinxiu and the head of Accounting Department Mr. Li Sheng hereby confirm that the financial report of the quarterlyreport is true and complete. 3. The Company’s quarterly financial report has not been audited. §1 Major accounting data and changes of shareholders 1.1 Major accounting data and financial indexes Is there any traceable adjustment to the financial statements for the previous report period? □ Yes √ No The directors and the Board of Directors of Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.hereby confirm that there are no any important omissions, fictitious statements or serious misleading carried inthis report. | 2021.7-9 | 2020.7-9 | Increase/decrease over 2020.7-9 | 2021.1-9 | 2020.1-9 | Increase/decrease over 2020..1-9 | | Total operating income | 657,628,182.17 | 462,998,187.84 | 42.04% | 1,751,913,803.14 | 1,336,401,602.30 | 31.09% | | Net profit attributable to parent company | -26,965,424.33 | 27,947,259.43 | -196.49% | -41,549,634.34 | 4,342,913.91 | -1,056.72% | | Net profit attributable to parent company after deducting non-recurring gains/losses | -39,026,942.89 | 10,312,723.62 | -478.43% | -50,909,617.50 | 2,055,728.63 | -2,518.00% | | Net cash generated from operating activities | _ | _ | _ | 4,865,672.01 | -96,748,498.60 | 105.03% | | Basic earnings per share | -0.030 | 0.033 | -196.97% | -0.049 | 0.005 | -1,080.00% | | Diluted earnings per share | -0.030 | 0.033 | -196.97% | -0.049 | 0.005 | -1,080.00% | | Weighted average return on net asset yield | -0.80% | 0.83% | Decrease1.63 percentage points | -1.20% | 0.13% | Decrease 1.33 percentage points | | 2021.9.30 | 2020.12.31 | Increase/decrease over 2020.12.31 | | Total assets | 5,861,887,990.24 | 5,681,568,328.36 | 3.17% | | Shareholder’s equity attributable to parent company | 3,309,504,058.37 | 3,375,609,788.07 | -1.96% |
In the first three quarters of 2021, the Company's net profit is in the red, mainly due to the following reasons: 1. Inthe first three quarters of this year, the Company took the initiative to reform its main business, promotedengineering and manufacturing in an orderly way, and specialized and deeply cultivated advantageous marketsegments. Operating revenue increased by 31.09% year on year, but under the influence of rising raw material pricesand intensified market competition, gross profit margin decreased by 2.77 percentage points year on year. 2. Amongthe associated enterprises of the Company, due to the implementation of the new financial instrument standards ofthe Sino-foreign joint ventures from January 1, 2021, the provision of credit impairment losses increasedsignificantly, and the Company's investment income to the associated enterprises decreased by 34.93 million yuan 1.2 Non-recurring profits and losses and their amounts | Item of non-recurring gains and losses | Amount of this report period | Amount from beginning of year to the end of report period | | Profit and loss from disposal of non-current assets | 18,777.67 | 27,171.60 | | Government subsidies which were included in the current profits and losses | 445,847.54 | 1,360,302.53 | | Debt restructuring gains and losses | 859,297.68 | 859,297.68 | | Disposal gains from investments on financial assets available for sale, and gains from fair value change of other non-current financial assets | 8,692,167.86 | 3,657,264.74 | | Other non-operating incomes and expenses except the above mentioned | 4,137,615.45 | 5,515,024.78 | | Income tax effects | 2,100,116.65 | 1,729,462.92 | | Minority equity interests effects (after tax) | -7,929.01 | 329,615.25 | | Total | 12,061,518.56 | 9,359,983.16 |
1.3 Major changes in main financial items and indexes, and description of the cause √ Applicable □ Inapplicable (1). Accounts paid in advance increased 64.54% compared with the beginning of the year, mainly due to theincrease of orders in this period, especially the increase of engineering projects, and the need to advance paymentto suppliers. (2). Other receivables decreased 49.72% compared with the beginning of the year, mainly due to received theequity transfer price of Bingshan Consulting Phase II. (3). Inventory increased 21.33% compared with the beginning of the year, mainly due to the new revenuerecognition rules make some goods issued and unfinished construction projects temporarily unable to carryforward income; Based on the large increase in orders, projects under construction and wIP input increasedsignificantly. (4). Other current assets decreased 34.86% compared with the beginning of the year, mainly due to the adjustmentof the value added tax retention allowance changes. (5). Accounts payable increased 36.81% compared with the beginning of the year, mainly due to the increase ofpurchase orders, related purchases did not arrive at the agreed payment node. (6). Salary payable decreased 60.76% compared with the beginning of the year, mainly due to the payment ofprovision employee compensation of last period-end during the reporting period. (7). Operating sales increased 31.09% on a year-on-year basis, mainly due to the Company's specialization anddeep cultivation advantages of market segments to achieve better results. (8). Operating cost increased 35.37% on a year-on-year basis, mainly due to the increase in operating income, aswell as raw material prices. (9). Selling and distribution expenses increased 44.06% on a year-on-year basis, mainly due to increased marketexpansion in the current period and limited normal sales activities due to the outbreak of COVID-19 in the sameperiod last year. (10). R&D expenses increased 40.39% on a year-on-year basis, mainly due to the increase in operating incomeand corresponding increase in R&D investment. (11).Financial expenses decreased 33.79% on a year-on-year basis, mainly due to the decrease of loans. (12). Net cash flows arising from operating activities increased 101.61 million yuan ,on a year-on-year basis,mainly due to the increase in cash received from merchandise sales. (13).Net cash flows arising from financing activities decreased 74.35 million yuan on a year-on-year basis, mainlydue to due to the reduction of working capital loans, the cash received for borrowing decreased and the cash paidfor debt repayment increased. 2. Shareholders' information 2.1 Total number and particulars of the shareholders by the end of the report period | Total number of shareholders in the reporting period | 39,977 | Total number of shareholders as of the last month before disclosure of the annual report | 0 | | 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 | | | | Sanyo Electric Co., Ltd. | Overseas legal person | 8.72% | 73,503,150 | | | | Lin Zhenming | Foreign natural person | 0.80% | 6,740,000 | | | | Zhang Sufen | Domestic natural person | 0.74% | 6,260,000 | | | | Wang Shaohong | Domestic natural person | 0.55% | 4,654,200 | | | | Wu An | Domestic natural person | 0.53% | 4,500,000 | | | | Zhang Hui | Domestic natural person | 0.46% | 3,860,015 | | | | Fu Hui | Domestic natural person | 0.45% | 3,762,868 | | | | Xue Hong | Domestic natural person | 0.42% | 3,570,000 | | | | Dalian industrial development investment Co., Ltd. | Domestic non-state-owned legal person | 0.40% | 3,406,725 | | | | 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 | | Lin Zhenming | 6,740,000 | Domestically listed foreign shares | | Zhang Sufen | 6,260,000 | RMB denominated ordinary shares | | Wang Shaohong | 4,654,200 | RMB denominated ordinary shares | | Wu An | 4,500,000 | Domestically listed foreign shares | | Zhang Hui | 3,860,015 | RMB denominated ordinary shares | | Fu Hui | 3,762,868 | RMB denominated ordinary shares | | Xue Hong | 3,570,000 | Domestically listed foreign shares | | Dalian industrial development investment Co., Ltd. | 3,406,725 | 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. |
At the end of the report period, the total number of shareholders of the Company was 39,977, including 32,312A-share shareholders and 7,665 B-share shareholders. 2.2 Information on the total number of preferred shareholders and the shares held by top ten preferredshareholders as of the end of the reporting period □ Yes √ No §3 Other important MattersDuring the reporting period, the Company sold 1,700,000 shares of Guotai Junan at an average selling price of 19.30 yuan per share. After the sale, the Company holds Guotai Junan shares 11,210,008 shares. §4 Financial Statements CONSOLIDATION BALANCE SHEETPrepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. September 30, 2021 Unit: RMB Yuan | Items | 30-Sep-2021 | 31-Dec-2020 |
| Monetary funds | 350,507,661.16 | 373,445,731.67 | | Financial assets which are measured by fair value and which changes are recorded in current profit and loss | | |
| Derivative financial assets | | |
| Transaction financial assets | | | | Notes receivable | 104,899,644.08 | 139,121,037.78 |
| Accounts receivable | 919,233,029.01 | 817,011,955.75 | | Receivables financing | 50,894,081.37 | 61,737,282.56 |
| Accounts paid in advance | 254,185,752.90 | 154,481,509.35 |
| Other receivables | 33,953,850.71 | 67,527,176.86 | | Interest receivables | 890,207.24 | 46,879.68 |
| Dividend receivable | 2,390,723.75 | 25,923.75 |
| Inventories | 887,715,500.62 | 731,658,797.98 | | Contract assets | 101,072,065.05 | 91,430,011.60 |
| Assets held for sale | | | | Non-current asset due within one year | 31,381,785.92 | 42,003,576.60 |
| Other current assets | 15,121,186.78 | 23,214,091.44 |
| Total current assets | 2,748,964,557.60 | 2,501,631,171.59 | | Non-current assets: | | |
| Finance asset held available for sales | | | | Held-to-maturity investment | | |
| Long-term account receivable | 62,846,409.09 | 65,867,973.25 |
| Long-term equity investment | 1,591,335,837.19 | 1,597,241,363.62 | | Other Non-current financial assets | 212,766,101.23 | 239,304,098.83 |
| Investment property | 121,733,404.00 | 126,288,477.92 | | Fixed assets | 844,689,047.45 | 891,147,058.82 |
| Construction in progress | 34,194,018.48 | 34,254,599.42 |
| Right of use assets | 21,251,616.12 | | | Engineering material | | |
| Productive biological asset | | | | Oil and gas asset | | |
| Intangible assets | 144,142,163.38 | 145,442,721.24 | | Expense on Research and Development | | |
| Goodwill | 1,750,799.49 | 1,750,799.49 |
| Long-term expenses to be apportioned | 8,572,848.05 | 9,660,538.07 | | Deferred income tax asset | 69,641,188.16 | 68,979,526.11 |
| Other non-current asset | | | | Total non-current asset | 3,112,923,432.64 | 3,179,937,156.77 |
| Total assets | 5,861,887,990.24 | 5,681,568,328.36 |
| Short-term loans | 239,770,000.00 | 282,971,600.00 | | Financial liabilities which are measured by fair value and which changes are recorded in current profit and loss | | |
| Derivative financial liabilities | | | | Transaction financial liabilities | | |
| Notes payable | 363,174,678.21 | 295,151,372.38 | | Accounts payable | 1,049,694,392.67 | 767,267,232.43 |
| Accounts received in advance | | |
| Contract liabilities | 319,732,006.18 | 295,100,657.10 | | Wage payable | 12,214,678.51 | 31,125,808.94 |
| Taxes payable | 10,953,008.80 | 9,714,194.25 | | Other accounts payable | 32,691,393.45 | 43,017,466.38 |
| Interest payable | 2,320,000.06 | 1,839,166.81 |
| Dividend payable | 533,156.00 | 533,156.00 | | Liabilities held for sale | | |
| Non-current liabilities due within one year | 13,757,444.77 | 37,157,126.41 |
| Other current liabilities | 130,283,204.17 | 152,173,946.30 | | Total current liabilities | 2,172,270,806.76 | 1,913,679,404.19 |
| Non-current liabilities: | | | | Long-term loans | 150,000,000.00 | 160,000,000.00 |
| Preferred stock | | | | Perpetual bond | | |
| Lease liability | 18,352,509.03 | | | Long-term account payable | 14,842,323.96 | 14,622,463.75 |
| Special Payable | | | | Anticipation liabilities | | 7,592,239.01 |
| Deferred income | 101,502,893.88 | 104,457,568.86 | | Deferred income tax liabilities | 28,299,665.19 | 32,010,364.83 |
| Other non-current liabilities | | |
| Total non-current liabilities | 312,997,392.06 | 318,682,636.45 | | Total liabilities | 2,485,268,198.82 | 2,232,362,040.64 |
| Share capital | 843,212,507.00 | 843,212,507.00 | | Other equity instruments | | |
| Preferred stock | | | | Perpetual bond | | |
| Capital public reserve | 710,644,497.71 | 726,768,468.00 |
| Less: Treasury stock | | | | Other comprehensive income | 2,501,459.77 | 2,501,459.77 |
| Special preparation | | | | Surplus public reserve | 818,311,159.24 | 805,525,775.33 |
| Retained profit | 934,834,434.65 | 997,601,577.97 | | Total owner’s equity attributable to parent company | 3,309,504,058.37 | 3,375,609,788.07 |
| Minority interests | 67,115,733.05 | 73,596,499.65 |
| Total owner’s equity | 3,376,619,791.42 | 3,449,206,287.72 | | Total liabilities and shareholder’s equity | 5,861,887,990.24 | 5,681,568,328.36 |
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Li Sheng CONSOLIDATION INCOME STATEMENT Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. September 30, 2021 Unit: RMB Yuan | Items | January-September, 2021 | January- September, 2020 | | I. Total sales | 1,751,913,803.14 | 1,336,401,602.30 |
| II. Total operating cost | 1,818,095,119.51 | 1,377,192,596.04 | | Including: Operating cost | 1,537,686,115.03 | 1,135,910,729.34 |
| Taxes and associate charges | 14,782,923.04 | 12,002,625.35 |
| Selling and distribution expenses | 91,119,255.32 | 63,251,592.88 | | Administrative expenses | 108,999,166.58 | 110,494,420.86 |
| R&D expenses | 54,388,434.55 | 38,740,337.42 | | Financial expense | 11,119,224.99 | 16,792,890.19 |
| Including: interest expense | 14,919,014.00 | 14,416,491.69 |
| interest income | 5,032,852.90 | 1,187,533.42 | | Add: Other income | 1,360,302.53 | 6,605,737.40 |
| Gain/(loss) from investment | 19,064,313.18 | 56,407,749.06 |
| Including: income from investment on affiliated enterprise and jointly enterprise | 9,479,575.98 | 44,414,524.88 | | Gain/(loss) from change in fair value (loss as “-“) | 3,754,002.40 | -5,887,502.00 |
| Credit impairment loss (loss as “-“) | -5,784,568.00 | -17,224,475.88 |
| Assets impairment loss (loss as “-“) | -8,258,805.29 | | | Gain/(loss) from asset disposal (loss as “-“) | 27,171.60 | 191,798.01 |
| III. Operating profit | -56,018,899.95 | -697,687.15 | | Add: non-business income | 7,547,220.30 | 2,602,750.06 |
| Less: non-business expense | 1,004,350.24 | 145,844.65 |
| IV. Total profit | -49,476,029.89 | 1,759,218.26 | | Less: Income tax | -1,445,628.95 | -1,927,158.87 |
| V. Net profit | -48,030,400.94 | 3,686,377.13 | | (I) Net profit from continuous operation | -48,030,400.94 | 3,686,377.13 |
| (II)Net profit from discontinuing operation | | |
| Net profit attributable to parent company | -41,549,634.34 | 4,342,913.91 | | Minority shareholders’ gains and losses | -6,480,766.60 | -656,536.78 |
| VI. After-tax net amount of other comprehensive incomes | | | | After-tax net amount of other comprehensive incomes attributable to owners of the Company | | | | (I) Other comprehensive incomes that will not be reclassified into gains and losses | | | | 1. Changes in net liabilities or assets with a defined benefit plan upon re-measurement | | |
| 2. Enjoyable shares in other comprehensive incomes in invests that cannot be reclassified into gains and losses under the equity method | | | | (II) Other comprehensive incomes that will be reclassified into gains and losses | | |
| 1. Enjoyable shares in other comprehensive incomes in invests that will be reclassified into gains and losses under the equity method | | | | 2. Gains and losses on fair value changes of available-for-sale financial assets | | | | 3. Gains and losses on reclassifying held-to-maturity investments into available-for-sale financial assets | | | | 4. Effective hedging gains and losses on cash flows | | |
| 5. Foreign-currency financial statement translation difference | | |
| …… | | | | After-tax net amount of other comprehensive incomes attributable to minority shareholders | | | | VII Total comprehensive income | -48,030,400.94 | 3,686,377.13 |
| Total comprehensive income attributable to parent company | -41,549,634.34 | 4,342,913.91 | | Total comprehensive income attributable to minority shareholders | -6,480,766.60 | -656,536.78 |
| (I) basic earnings per share | -0.049 | 0.005 | | (II) diluted earnings per share | -0.049 | 0.005 |
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Li Sheng CONSOLIDATION CASH FLOW STATEMENTPrepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. January - September, 2021 Unit: RMB Yuan | Items | January - September, 2021 | January - September, 2020 | | I. Cash flows arising from operating activities: | | |
| Cash received from selling commodities and providing labor services | 1,366,490,775.49 | 931,236,976.16 | | Write-back of tax received | 15,767,416.25 | 16,087,153.47 |
| Other cash received concerning operating activities | 76,419,830.88 | 62,856,556.06 |
| Subtotal of cash inflow arising from operating activities | 1,458,678,022.62 | 1,010,180,685.69 | | Cash paid for purchasing commodities and receiving labor service | 991,847,218.79 | 720,359,068.70 |
| Cash paid to/for staff and workers | 258,665,354.27 | 230,849,374.08 | | Taxes paid | 61,236,522.09 | 51,361,443.49 |
| Other cash paid concerning operating activities | 142,063,255.46 | 104,359,298.02 |
| Subtotal of cash outflow arising from operating activities | 1,453,812,350.61 | 1,106,929,184.29 | | Net cash flows arising from operating activities | 4,865,672.01 | -96,748,498.60 |
| II. Cash flows arising from investing activities: | | |
| Cash received from recovering investment | 1,703,262.34 | 2,396,000.00 | | Cash received from investment income | 80,638,354.58 | 69,918,361.75 | | Net cash received from disposal of fixed, intangible and other long-term assets | 718,371.68 | 445,649.60 |
| Net cash received from disposal of subsidiaries and other units | 36,263,700.00 | | | Other cash received concerning investing activities | | |
| Subtotal of cash inflow from investing activities | 119,323,688.60 | 72,760,011.35 | | Cash paid for purchasing fixed, intangible and other long-term assets | 8,985,428.62 | 9,124,507.49 |
| Cash paid for investment | 45,400,000.00 | |
| Net cash paid for achievement of subsidiaries and other business units | | | | Other cash paid concerning investing activities | | |
| Subtotal of cash outflow from investing activities | 54,385,428.62 | 9,124,507.49 | | Net cash flows arising from investing activities | 64,938,259.98 | 63,635,503.86 |
| III. Cash flows arising from financing activities | | |
| Cash received from absorbing investment | | | | Including: Cash received from absorbing minority shareholders' equity investment by subsidiaries | | |
| Cash received from loans | 258,870,000.00 | 351,751,600.00 |
| Cash received from issuing bonds | | | | Other cash received concerning financing activities | 60,343,934.67 | 32,926,633.20 |
| Subtotal of cash inflow from financing activities | 319,213,934.67 | 384,678,233.20 |
| Cash paid for settling debts | 337,563,543.19 | 333,447,223.97 | | Cash paid for dividend and profit distributing or interest paying | 24,159,906.92 | 42,052,924.78 |
| Including: dividends or profit paid by subsidiaries to minority shareholders | | | | Other cash paid concerning financing activities | 34,847,480.91 | 12,182,713.89 |
| Subtotal of cash outflow from financing activities | 396,570,931.02 | 387,682,862.64 |
| Net cash flows arising from financing activities | -77,356,996.35 | -3,004,629.44 | | IV. Influence on cash due to fluctuation in exchange rate | 188,430.42 | -660,346.06 |
| V. Net increase of cash and cash equivalents | -7,364,633.94 | -36,777,970.24 | | Add: Balance of cash and cash equivalents at the period -begin | 314,978,460.49 | 301,527,354.56 |
| VI. Balance of cash and cash equivalents at the period–end | 307,613,826.55 | 264,749,384.32 |
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Li Sheng Note: The adjustment of financial statementsNew lease Standards for the First Implementation Relevant to Financial Statements at the Beginning of the Year √Applicable □Not applicable Consolidated balance sheetConsolidated balance sheet | Item | 31-Dec-2020 | 1-Jan-2021 | The amount of adjustment | | Fixed assets | 891,147,058.82 | 867,177,638.62 | -23,969,420.20 | | Right of use assets | | 23,969,420.20 | +23,969,420.20 | | Long-term payables | 14,622,463.75 | | -14,622,463.75 | | Lease liabilities | | 14,622,463.75 | +14,622,463.75 |
Board of Directors of Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.October 28, 2021
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