StockCode:000530;200530 ShortFormoftheStock:DalengGufen;DalengB;No:2017-016 DalianRefrigerationCo.,Ltd. 2016AnnualReportSummary §1ImportantNotes Thissummaryisextracted fromtheoriginaloftheannualreport.Formoreinformation,the investorsarerecommendedtorefertotheoriginal. Notetothe“Non-standardizedOpinion” □Applicable √Inapplicable Theprofitdistributionproposal √Applicable □Inapplicable Transferthecapitalreservetoincreasecapitalstock √Applicable □Inapplicable TheprofitdistributionproposalreviewedandadoptedatthisBoardmeetingoftheCompanyis: basedonthetotalsharecapitaloftheCompanyof611,776,558shares,paytoallshareholdersthe cashdividendof1yuan(inclusivethetax)andtransfertoallshareholdersthecapitalreserveto increasecapitalstock,4sharesforevery10shares. CompanyProfile Shortformofthestock DALENGGUFEN;DALENG-B Stockcode 000530;200530 Listedstockexchange ShenzhenStockExchange Contactpersons SecretaryoftheBoardofDirectors Authorizedrepresentativeinchargeof securitiesaffairs Name SongWenbao DuYu DALENGGUFENSecurities�} DALENGGUFENSecurities�}Legal Contactaddress LegalAffairsNo.106,LiaoheEast AffairsNo.106,LiaoheEastRoad, Road,DalianEconomicand DalianEconomicandTechnological TechnologicalDevelopmentZone DevelopmentZone Telephone 0411-87968130 0411-87968822 Fax 0411-87968125 0411-87968125 E-mail 000530@bingshan.com 000530@bingshan.com §2TheCompany’sMainbusinessduringthereportingperiod TheCompany,asthelargestindustrialrefrigerationequipmentproductionenterpriseinChina,is committedtodevelopingthebusinessofindustrialrefrigeration,foodfreezingandcoldstorage, centralandcommercialair-conditioning,refrigerationcomponentsandengineeringservice,have coveredthekeyareasoftherefrigerationindustrialchainandforgedthemostcompletecoldand hotindustrialchaininChina. §3SummaryofAccountingDataandFinancialIndexes 3.1Mainaccountingdata(Unit:RMBYuan) DidtheCompanyretroactivelyadjustorrestatetheaccountingdataofpreviousyearsdueto changeintheaccountingpolicyandcorrectionofaccountingmistakes □Applicable √Inapplicable 2016 2015 Increase/decreasecompared 2014 withpreviousyear Operatingrevenue 1,779,499,226.64 1,607,518,439.61 10.70%1,425,715,596.96 Netprofitattributabletoshareholdersof 178,632,660.24 129,947,307.39 37.47% 115,439,722.39 listedcompanies Netprofitattributabletothe shareholdersoflistedcompaniesafter 145,227,418.21 126,122,809.25 15.15% 105,435,245.61 thedeductionofnon-recurringprofit andloss Netcashflowfromoperatingactivities -7,706,320.22 -50,568,474.38 84.75% 28,495,772.47 Basicearningpershare 0.31 0.24 29.17% 0.22 Dilutedearningspershare 0.31 0.24 29.17% 0.22 Weightedaveragereturnonnetasset decrease0.51percentage 5.87% 6.38% 5.98% yield point Increase/decreasecompared Attheendof Attheendof2016 Attheendof2015 withpreviousyear 2014 Totalassets 4,983,511,574.26 4,082,499,864.42 22.07%3,053,930,248.25 Owner's equity attributable to 3,247,797,768.92 2,647,609,091.41 22.67%1,967,027,256.13 shareholdersoflistedcompanies 3.2Thequartermainfinancialindicators(Unit:RMBYuan) Thefirstquarter Thesecondquarter Thethirdquarter Thefourthquarter Operatingrevenue 400,592,922.66 379,326,941.37 471,165,234.36 528,414,128.25 Netprofitattributabletoshareholdersof 25,527,518.21 41,959,768.63 64,264,334.88 46,881,038.52 listedcompanies Netprofitattributabletotheshareholders oflistedcompaniesafterthedeductionof 25,497,476.68 36,412,981.35 38,183,454.01 45,133,506.17 non-recurringprofitandloss Netcashflowfromoperatingactivities -89,736,770.51 46,524,738.11 -15,216,952.20 50,722,664.38 §4ShareCapitalandShareholders'Information 4.1Statementofsharesheldbythetoptenshareholders Totalnumberofshareholdersinthe 36,246 Totalnumberofshareholdersasofthe5thtradingday 41,152 reportingperiod beforedisclosureoftheannualreport Shareholdingoftoptenshareholders Numberof Numberof shareswith pledged Name Nature Proportion Totalnumber sale sharesor restriction sharesfrozen Domestic DalianBingshanGroupCo.,Ltd. non-state-ownedlegal 19.96% 122,083,524 0 0 person SanyoElectricCo.,Ltd. Overseaslegalperson 8.58% 52,502,250 0 0 IndustrialSecuritiesGoldenKylinNo.2Colle Others 2.79% 17,063,257 7,280,081 0 ctiveAssetManagementPlan ZheshangJuchaoNewthinkinghybridsecurities Others 1.81% 11,044,457 0 0 investmentfund NationalSocialSecurityFunds104Portfolio Others 1.32% 8,100,000 5,864,510 0 BCM-Changxinquantitativehybridsecurities Others 1.21% 7,416,235 0 0 investmentfund NationalSocialSecurityFunds503Portfolio Others 0.96% 5,864,510 5,864,510 0 CaitongCapitalKunzeNo.2Securities Others 0.96% 5,864,509 5,864,509 0 vInestmentFund ShenzhenB&DCapitalFengnianJinjiaNo.1 Others 0.96% 5,864,509 5,864,509 0 FundZheshangJuchaoindustrygrowhybridsecurities Others 0.77% 4,701,826 0 0investmentfund DalianBingshanGroupCo.,Ltd.hadtheassociationrelationshipwithSanyoNotestotheassociatedrelationshipanduniform ElectricCo.,Ltd.amongtheaboveshareholders.SanyoElectricCo.,Ltd.holds actionsoftheaboveshareholders 26.6%ofDalianBingshanGroupCo.,Ltd.'sequity. 4.2ParticularsaboutcontrollingshareholdersandactualcontrolleroftheCompany MunicipalityDalianofCommissionGovernment State-owned Co.,Ltd. DalianEquipmentInvestmentManufacture ManagementDalianState-ownedAssets ZhonghuidaDalanRefrigeration Assets Co.,Ltd.YidaGroup Co.,Ltd.Dayang Co.,TechnologyLtd. ElectricCo.,Ltd.Sanyo Supervision 100% Co.,Ltd. 100% andAdministration 22.2% 4.4% 13.3% 13.3% 20.2% 26.6% DalianBingshanGroupCo.,Ltd.19.96% DalianRefrigerationCo.,Ltd. §5Managementdiscussionandanalysis 5.1Businessreviewfor2016 In2016,basedonoperationpolicyof“leadinginnovationandcreatingvalue”,andthemeas “innovation, improvement and enhancement”, the Company kept a firm grasp on innovation-drivenandindustry-financecombination,operation-oriented,underthehelpofcapital operation, created an industry development mode, accelerated research on technologies, strengthen plans of removal and reconstructed, speed up capital resource integration and foundationalmanagementimprovement,enhancedcompetitivepowerandoperationefficiency, strivedtoachievemainoperationtargetandmadeitgrowthonafavorablewayinthefuture. In2016,theCompanyrealizedoperatingincomeofRMB1,779.5million,representing98.86%of theannualplanofRMB1,800millionandayear-on-yearincreaseof10.70%;realizedtotalprofit ofRMB188.18million,representing121.41%oftheannualplanofRMB155millionanda year-on-yearincreaseof38.42%. The Company positively advanced the application and promotion of new products and technologies during reporting period. Petrochemical screw compressor, CO2 helical lobe compressor,falling-filmsemi-closedwatercooledscrewchillerandCO2evaporatorcondenser have been designed and commercialized. The R&D and application project of pressure pre-cooling and ice-temperature fresh-keeping technology passed the sci-tech achievements evaluationorganizedbyChineseAssociationofRefrigeration.863projects―high-capacitycold watercooling,quickfreezingandsmartfishprocessingsystemthroughthereviewfromtechnical expertgroupofMOST(MinistryofScienceand Technology).Marinescrewcompressor was identifiedbyprototypeofnew-productsandnew-technology. Inreportingperiod, theCompanyproceededwiththeremoval andreconstructinanorderly manner.Theprivateplacementwasimplementedsuccessfully,whichguaranteedthecapitalneeds ofremovalandreconstruct.Thetechnicallayoutandplansinnewplantshadbeenoptimized pursuit tothe intelligentmanufacturingplan. The intelligentconstructionofnewplant was implementedsmoothly. Capitalresourceintegrationwasperformedactivelyinreportingperiod.Purchased70%sharesof Sanyo Meicafor improvingtheintelligentstandardsoftheproducts bychanged ittobea wholly-ownedsubsidiaryfromassociatedenterprise; acquired5%sharesofBingshanRyosetsu andcapitalincrementforcreatingamanufacturingbaseofcryogenicquickfreezersbychangedit tobeawholly-ownedsubsidiaryfromcontrollingsubsidiary;settingupPanasonicAppliances Refrigerationforclients inaspectofsolvingthefluorinecold-chain systemwithpurpose of meetingtherapidlygrowthneedsoflow-temperaturelogisticsmarketinChina;investedinFuji Bingshan forfacingthemarketopportunityofgrowingvendingmachineinChinabyimproved capacityupto100,000setsperyearfrom50,000setsperyearsofar. Onsmoothunlockforthefirststockincentiveplanbasis,theCompanypromotedthesecond equity incentive plan,andthetechnical backboneand sales backbone wereincluded inthe incentiveplans,furthertoextendcoverageforimprovingthegrowthincentive andfavorable potentialdevelopmentoftheCompany. Inreportingperiod,ORCscrewexpanderunitsandreekscrewexpanderunitsofthesubsidiary �CWuhanNewWorldRefrigerationareintheseriespromotionstage;thefirsttwo-stagescrew pressureenergypowerofthenaturalgaspipelinenetworkandcoldenergyrecoverysystemhad startedup successfullyin Fushimen Station, Quzhou,Zhejiang,and successfully passedthe 72-hour industrial commissioning acceptance; high-pressure screw compressor Ammonia high-temperature heat pump units and low-pressure screw blower finished the prototype production;themodelpointsofnewproductshavecompletedthearealayoutinChinabasically, operationvenuefromnewproductsaregrowthdramatically,thestrategytransitionwasresolutely implemented.Subsidiary�CBingshanEngineeringincreasedcapitalandupgradethequalificationin reportingperiod,activelycreatednewmarketingbusinessmodeandfocusonpromotingtheintegratedsolutions,thusordershaveahugegrowthonay-o-ybasis.Solutionsforthelarge-low-speedwindtunnel,agriculturalproduct’scoldchain,super-lowtemperaturecoldstorageandairmanagementsystemofnewenergyarerecognizedbythemarket.BingshanEngineeringsuccessfullywanthebiddingoflargestfrozenbeerstationproject,themonomercoldstorage refrigerationsystemproject-themostcoldchainlogisticproject,atthesametime,theprojectpromotesthenew productsandnewoperationaltypesofprojectsascentrifuge,CO2cascadesystem,caststeel compressor,electricheatingreformandvalleyelectricityenergy-storagearebeingimplemented. Subsidiary�CBingshanService’sERPsystemhasofficiallylaunchedinreportingperiod,remote monitoringusersgrewrapidly,servicestandardswereimprovedefficiently,theserviceindustry exploitinaorderway.Accessoriesincomecontinuedtogrowth, andtheremote monitoring on-linebrokethrough100. Subsidiary�CBingshan Guardian optimized the internet of cloud management platform and intelligentplantenergymanagementsysteminreportingperiod,developedmanynewproductsof intelligentcontrolleroftheinternet,furthertostrengththeleadingpositionintechnologywithin thefield. Subsidiary�CBingshanAir-conditionerstartedwiththeclientsofmedicalandautoindustryAC,got totherootofenvironmentalneeds,activelyparticipatedinrelevantprojectwithairtreatment concerned.ThesalesrevenuefromnewfieldandnewproductsofVOCswastegastreatmentand newenergyairmanagementsystemwerepresentingmorethan30%,whichmadeakeyrolein promotingthebusinesstargets. Theassociatedcompany�CPanasonicCompressorsuccessfullydevelopedthemarketinrailtransit AC,thesales ofhorizontalscroll compressorforelectricpassenger carsusewereenlarging continuallybasedonanadvancetechnology.Accumulativesalesofhorizontalscrollcompressor havebroken100,000sets,andbecamethenewefficiencygrowthpoint.Aggressivelyexpanded intooverseasmarketwithagoodachievements,IndiaandNorthAmericainparticular.Completed R&DforE-scrollcompressor,andputthemintoproduction,infieldofhouseholdAC,officially transformedandupgradedfrom Bproductsto Eproducts.Participatedin nationalstandards settingoftheACcompressorforelectricvehicles,andhonored thesecondprizeofmodern managementachievementfornationalenterprisemanagement. The associated company�CPanasonicCold Chain aggressively expanded into theBlueOcean marketcomplyingwiththerequirementschange.Createdhigh-endcommercialmerchandiseof newretailmodelwithCharoenPokphandWarehouseClub.Eyedonthegrowthdevelopmentof communityfreshsupermarketandconveniencestore,thecompanyenteredintonewclientswith C-Store, CITICGuoan andShanxiTangJiu in arow.Thebulkultra-cold storagefreezer MDF-682�Cindependentresearchanddevelopment,hasofficiallyoffline.Operatingtemperature achieved-86℃, thecoreproducts inhealingdomain,thebiologicalmedicineenteredintoa rapidlygrowth.Industrializationoftheinherentmarketservicehassteadydeveloped,andsigned theQualifyforMaintenanceAgreementwithWal-Mart,CarrefourandMetro. Thesinglelargestdistributedenergyproject-CCHPinHarbinAirportwassuccessfullylandedby theassociatedcompany-PanasonicRefrigerationinreportingperiod,madeabetterintegrated solutionsfortheclients.Theperformancetestresultforself-developmentdirectcombustiongrade 1unitofenergyefficiencyhasreachedthestandard,withbettercostperformance,leadingin industry and more strength competition in market. ‘Refrigeration technique of circulative ammoniawater-heatsource”,whichtooktheleadinresearch&development,honoredthefirst prizeofS&TinnovationandcreationoftheSecondChina’sCokingIndustryS&TConference. SignedastrategiccooperationagreementwithSBWandBeijingGasandHeatingEngineering DesignInstitute,forexpandingthedistributedenergymarketvigorously. Theassociatedcompany-PanasonicAppliancesRefrigerationintegratedrelevantresourcesfrom PanasonicColdChainandPanasonicCompressor’sFluorinecold-chainsystemeffectivelyin reporting period, improved sales channel, optimized design team, reinforced engineering constructionandafter-saleservices,offeredabetterintegratedsolutionsofFluorinecold-chain systemfortheclients.Relyingontechnologicalsuperiority,PanasonicAppliancesRefrigeration succeededinobtainingtheorderofCentralChinaColdFreshPort―thebiggestcoldstorageof gardenstuffforced-airpre-coolingapparatussofar. In reporting period, the associated company�CFuji Bingshan upgraded intelligent products, non-cashpaymentandremotecontrollingsystembecomingthenorm,salesbroke30,000setsand revenueandnetprofithaveacontinuedfavorablegrowth.Bycustomizedsolutions,exploitednew VIPclient-Wahaha,theclientbaseofdrinkshasexpanded.Theintelligentwhitespiritvending machinehascompletedindevelopment,andenteredintothefieldofwhitespiritretail.Largefood machineandcoffeemachinestartedoperationinalimitedquantity.Bodyweldingautomaticline came into use, and the efficiency higher upto 100%. Construction of second plant were implementedinaorderway,anddoublecapacityhasasteadyprogress. Theassociatedcompany-Keinin-GrandOcean,dependingonexcellentqualityandcostadvantage, salesperformancecreatednewhighagain.Onbaseoftherectificationcompletiononline1and2, startedthereformingprojectsoffullyautomaticunmannedinstalledspares,stitching,weldingand assembly,continuedtoimprovethequalityofproducts. 5.2MajorchangeoradjustmentintheCompany'smainbusinessinthereportingperiod □Applicable √Inapplicable 5.3Mainbusinessstructure √Applicable□Inapplicable Increase/decreaIncrease/decreas Gross seofoperating eofoperating Increase/decreaseof Productname Operatingrevenue Operatingprofit revenuesona profitona grossprofitona profit year-on-year year-on-year year-on-yearbasis basis basis Refrigerationand Decrease0.63 air-conditioning 1,759,247,556.50 1,448,130,516.25 17.68% 10.58% 11.44% equipment percentagepoints 5.4Isthereaneedtopayparticularattentiontotheoperationofseasonalorcyclicalfeatures □Applicable √Inapplicable 5.5MajorchangeintheCompany'sbusinessrevenue,businesscost,ornetprofitattributableto shareholdersoflistedcompaniesinthereportingperiod □Applicable √Inapplicable 5.6Facesuspensionoflistingandterminationofthelisting □Applicable √Inapplicable §6Mattersrelatedtofinancialreport 6.1Changeinaccountingpolicies,accountingestimatesandaccountingmethodscomparedwith thefinancialstatementsofthepreviousyear √Applicable□Inapplicable AccordingtotheProvisionsofTreatmentsonValue-AddedTax(CaiKuai[2016]No.22)issued fromMinistryofFinance,thepropertytax,landholdingtax,stamptaxandvehicle&vesselusage tax,whicharereckonedunderAdministrationExpenseandoperatingcost,willlistundertheitem ofTaxesandsurcharge,forthoseoccurredafter1May2016. 6.2Correctionofmajoraccountingmistakesinthereportingperiod,whichshouldberetroactively restated□Applicable√Inapplicable6.3Explanationonchangeofconsolidationscopeinthereportperiodcomparedwiththelatestannualreport√Applicable□InapplicableThisyear,thereare3moreentitieswereincludedinthescopeofconsolidation,theyareDalianNewMeicaElectricalTechnologyCo.,Ltd,DalianBingshanP&ARecreationDevelopmentEngineeringCo.,Ltd.,andShanghaiBingshanTechnicalServiceCo.,Ltd,andoneentitywhichisDalianBingshanMetalProcessingCo.,Ltdisexcludedattheyearend.The3rdmeetingofthe7thgenerationofboardofdirectorsapprovedtoacceptthe70%ofshareholdingtransferfromDalianNewMeicaElectricalTechnologyCo.,Ltd,aholdingsubsidiary,hence,DalianNewMeicaElectricalTechnologyCo.,Ltd,hasbecomethefullyownedsubsidiaryaftertransfer.Thetransactionstatedabovehasbeencompletedby31stDecember2016.Hence,theCompanyholds100%shareholdingofDalianNewMeicaElectricalTechnologyCo.,Ltdwhenpreparingtheconsolidatedstatements.Atthe5thmeetingofthe7thgenerationofboardofdirectors,thecompanyandHongKongP&AWaterProjectCo.,Ltdbothrespectivelytransferred50%shareholdingsofDalianBingshanP&ARecreationDevelopmentEngineeringCo.,Ltd.tothefullyownedsubsidiary,DalianBingshanGroupEngineeringCo.,Ltd.Afterthat,thecompanywouldnotholdanysharesofDalianBingshanGroupEngineeringCo.,Ltdanylonger,andthefullyownedsubsidiary,DalianBingshanGroupEngineeringCo.,Ltdwouldhave100%shareholdingsofDalianBingshanP&ARecreationDevelopmentEngineeringCo.,Ltd..Thetransactionsstatedabovehavebeencompletedby31st,December2016.TheboardmeetingofDalianBingshanGroupEngineeringCo.,Ltd,asubsidiaryofthecompany,approvedDalianBingshanGroupEngineeringCo.,LtdandShanghaiQingNengColdChainEquipmentCo.,LtdjointlyinvestedandconstructedShanghaiBingshanTechnicalServiceCo.,Ltd.DalianBingshanGroupEngineeringCo.,Ltdinvested5,100,000Yuan,andheld51%shareholding.ShanghaiBingshanTechnicalServiceCo.,Ltdhasbeenformallyoperatedby31stDecember2016.The15thmeetingofthe6thgenerationofboardapprovedthatDalianBingshanRyosetsuQuickFreezingEquipmentCo.,Ltd.,aholdingsubsidiary,acquiredDalianBingshanMetalProcessingCo.,Ltdwhichisafullyownedsubsidiary.Afterthemerger,DalianBingshanQuickFreezingEquipmentCo.,Ltdwouldbethesurvivalcompany,Thetransactionstatedabovehascompletedby31stDecember2016.6.4ExplanationoftheBoardofDirectorstothe“Non-standardizedOpinion”□Applicable √Inapplicable BoardofDirectorsofDalianRefrigerationCo.,Ltd. April22,2017