Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Bingshan Refrigeration & Heat Transfer
Technologies Co., Ltd.
August, 2026
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Section 1 Important Notice, Table of Contents, and Definitions
The directors and the Board of Directors, and Senior staff members of
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.(hereinafter
referred to as the Company) hereby confirm that there are not any
important omissions, fictitious statements or serious misleading carried in
this report, and shall take all responsibilities, individual and/or joint, for the
reality, accuracy and completeness of the whole contents.
All directors have attended this Board meeting of the Company.
There is no significant risk having adverse influence on attainment of the
Company's future development strategy and business targets. The
paragraph " Management discussion and analysis" in Section 3 of this
Semiannual Report describes major risks , including the risk of increasing
market competition risk and the accounts receivable is on the high side. See
the related sections for the countermeasures to be taken by the Company.
The Company plans to distribute no cash dividends, no bonus shares and
convert no reserve fund into capital stock.
Chairman of the Board of Directors of the Company Mr. Ji Zhijian,
Financial Majordomo Mrs. Wang Jinxiu, and the head of Accounting
Department Mrs. Wu Bin hereby confirm that the financial report of the
semi-annual report is true and complete.
This report is written respectively in Chinese and in English. In the event of
any discrepancy between the two above-mentioned versions, the Chinese
version shall prevail.
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
CONTENTS
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Reference Documents
majordomo and the accountants in charge.
newspapers designated by the China Securities Regulatory Commission in the report period.
Liaison persons: Mr. Song Wenbao, Ms Du Yu
Tel: 0086-411-87968130
Fax: 0086-411-87968125
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Definitions
Defined item Stands for Meaning
Reporting period Stands for From Jan. 1, 2026 to Jun. 30, 2026
The Company, this Company Stands for Bingshan Refrigeration & Heat Transfer Technologies Co.,Ltd.
Dalian Bingshan Group Engineering Co., Ltd.,one of the subsidiaries of the Company where
Bingshan Engineering Stands for
the Company holds 100% of its shares.
Dalian Bingshan Guardian Automation Co., Ltd. one of the subsidiaries of the Company
Bingshan Guardian Stands for
where the Company holds 100% of its shares.
Sonyo Compressor (Dalian) Co., Ltd. Formerly Panasonic Appliances Compressor (Dalian)
Sonyo Compressor Stands for Co., Ltd. one of the subsidiaries of the Company, where the Company holds100% of its
shares.
Sonyo Refrigeration Stands for Sonyo Refrigeration (Dalian) Co., Ltd. Formerly Panasonic Refrigeration (Dalian) Co.,
Ltd., one of the subsidiary of the Company, where the Company holds 100% of its shares.
Sonyo Refrigeration System (Dalian) Co., Ltd. Formerly Panasonic Appliances Refrigeration
Sonyo Refrigeration System Stands for System (Dalian) Co., Ltd., one of the subsidiary of the Company, where the Company holds
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Section 2 About the Company and Main Financial Indicators
I. Company information
Short form of the stock Bingshan; Bingshan B
Stock code 000530; 200530
Listed stock exchange Shenzhen Stock Exchange
Legal name in Chinese 冰山冷热科技股份有限公司
Short form of legal name 冰山冷热
Legal English name Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Abbreviation of legal English name Bingshan
Legal representative Ji Zhijian
II. Contact persons and information
Secretary of the Board of Directors Authorized representative for securities affairs
Name Song Wenbao Du Yu
No.106, Liaohe East Road, Dalian Economic and No.106, Liaohe East Road, Dalian Economic and
Address
Technological Development Zone Technological Development Zone
Tel. 0411-87968130 0411-87968822
Fax 0411-87968125 0411-87968125
E-mail 000530@bingshan.com 000530@bingshan.com
III. Other situations
If the registered address, office address and zip code, website, email box of the Company had any change in the
report period
□ Applicable √ Not applicable
If the information disclosure and the place of preparation had any change in the report period
□ Applicable √ Not applicable
The name of newspaper for information disclosure selected by the Company, the address of the website designated
by China Securities Regulatory Commission for carrying semi-annual report, the place where the semi-annual
report of the Company is prepared had no change in the report period. Refer to the Annual Report for 2025 for
details.
IV. Main accounting data and financial indicators
Did the Company retroactively adjust or restate the accounting data of previous years ?
√ Applicable □ Not applicable
The reason for the retroactive adjustment is the same control enterprise merger.
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Unit: RMB Yuan
Increase/decrease compared
Before adjustment After adjustment After adjustment
Operating revenue 2,179,670,345.56 2,380,320,781.91 2,385,274,786.05 -8.62%
Net profit attributable to shareholders of
listed companies
Net profit belonging to the shareholders
of listed companies after the deduction of 30,733,552.15 72,911,982.78 72,911,982.78 -57.85%
non-recurring profit and loss
Net cash flow from operating activities -97,657,176.10 -1,032,514.46 -968,304.83 -
Basic earning per share 0.06 0.09 0.09 -33.33%
Diluted earnings per share 0.06 0.09 0.09 -33.33%
Weighted average return on net asset
yield
Increase/decrease compared
Before adjustment After adjustment After adjustment
Total assets 7,441,700,389.64 7,596,536,378.75 7,607,143,933.63 -2.17%
Owner's equity attributable to
shareholders of listed companies
V.1.Difference of accounting data between as per Chinese accounting standards and as per
International Accounting Standards
□ Applicable √ Not applicable
Foreign Accounting Standards
The difference of accounting data between as per Chinese Accounting Standards and as per International
Accounting Standards was 0.
VI. Non-recurring profits and losses and their amounts
item Amount
Disposal gains and losses of non-current asset -133,199.26
Government subsidies included in current profit or loss 11,718,151.12
Allowance for impairment reversal of receivables tested separately for impairment 2,512,140.03
The net profit and loss of the subsidiary period from the beginning to the consolidation date of
the company under the same control.
Gains and losses on debt restructuring 2,573,327.11
The one-time expenses incurred by the enterprise due to the discontinuation of related business
-688,062.75
activities
Other non-operating revenue or expense 2,154,776.76
Influence on income tax 1,576,781.10
Influence on minority shareholders 185,467.36
Total 16,409,063.92
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Section 3 Management discussion and analysis
I. The Company’s Main business during the reporting period
Focusing on the hot and cold industry, the Company is committed to the development of industrial
refrigeration and heating business, commercial refrigeration business, air conditioning and environment
business, engineering and service business and new business fields, covering the key areas of the hot and
cold industry chain and creating a complete hot and cold industry chain.
The Company's main products include piston type, screw type, vortex type, lithium bromide absorption
refrigeration machines/units, as well as pressure vessels, combination warehouses, controlled atmosphere
fresh-keeping warehouses, refrigeration stations, quick freezer, etc. The company provides product sales and
comprehensive solutions for both domestic and international markets, with self-operated sales as the main
focus and channel sales as a supplement.
In the first half of 2026, rigid demands such as food safety, energy security, consumption upgrading, energy
conservation and carbon reduction, and domestic substitution will benefit the refrigeration and air
conditioning industry; At the same time, the refrigeration and air conditioning industry is also facing
challenges such as intensified market competition, difficulties in improving efficiency, and difficulties in
recovering payments. In the face of opportunities and challenges, the Company focuses on the hot and cold
business, continuously cultivating advantageous segmented markets such as petrochemicals, cold chain
logistics, beer and dairy products, ship refrigeration, ice and snow venues, and environmental simulation. It
vigorously expands new businesses such as energy storage thermal management and CCUS, actively seizes
the domestic market, and strengthens the development of international markets.
Industrial refrigeration is an important field reflecting the core technology of the Company. After years of
development, the Company has been close to the technical level of the main international competitors in the
field of industrial refrigeration, and has achieved catching up in some fields. Based on the traditional
refrigeration, the Company realizes the balance of cold and heat through the utilization of heat, which greatly
improves the energy utilization rate.
During the reporting period, the Company actively served high-end customers and won multiple high
standard projects such as Three Barrel Oil and Chengxin Chemical.
Commercial refrigeration is the Company's core business. In China, the Company takes the lead in opening
up the green intelligent cold chain from the first kilometer of the field to the last 100 meters of the residential
community, which is the competitive advantage of the Company.
Focusing on food refrigeration, the Company has patented products pre-cooling from the field, all kinds of
quick freezing equipment and refrigeration facilities of various specifications, and China's leading experience
in the design and installation of large-scale ammonia and carbon dioxide refrigerators. On the basis of
absorbing the relevant experience of Japan, Europe and the United States, combined with China's new needs,
to provide newer products, better solutions and fresher experience for the field of food freezing and
refrigeration.
During the reporting period, the Company signed multiple key projects, including the Taizhou Jiaojiang
Yudu Town project, Zhengzhou Dahe Huiji project, Guangzhou Jiangnan Fruit and Vegetable project, and
Shandong Linqing Agricultural Products project.
In recent years, relying on the complete industrial chain, the Company has continuously carried out
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
transformation and upgrading in the field of air conditioning and environment, developed more
energy-saving and environmental protection products around the blue sky project, and accelerated the
transformation and upgrading from air treatment to environmental governance.
At present, the Company has developed a series of innovative products around the market segments of
commercial air conditioning, central air conditioning and special air conditioning, and provides
corresponding solutions in different segments around these innovative products. For hospitals, electronic
factories, high-end real estate, rail transit and other fields, provide targeted solutions.
Cold and hot engineering and service are the Company's advantageous business fields. In recent years, the
Company has realized transformation and upgrading from the manufacturer of cold and hot equipment to the
service provider of comprehensive solution of cold and hot through the development of engineering and
service industry, and realized the dual wheel drive of the enterprise, and provided more professional and
accurate services to each segment market, and constantly created new value for customers and realized
common growth.
At present, the Company focuses on petrochemical technology, refrigeration, central air conditioning, ice and
snow engineering, artificial environment and other market segments. Relying on the enterprise's industrial
chain, value chain and ecosystem, the Company provides services from consulting, planning, design to
manufacturing, installation, commissioning and service in the whole process and life cycle. At the same time,
according to the needs of customers, promote the combination of industry and finance, and provide services
for customers through the form of project general contracting and financial leasing.
With the deepening of China's economic transformation and upgrading, as well as the continuous
introduction of environmental governance policies, the domestic industrial energy conservation and
environmental protection industry is growing rapidly, the level of energy conservation and consumption
reduction of enterprises and the comprehensive utilization of resources is constantly improving, and the
energy industrial structure has changed. Strengthening the optimal utilization of energy has become a
development trend. For low-grade energy recycling, the Company provides customers with a series of
energy-saving, environmental protection, efficient new products, in line with the national strategic
requirements of energy conservation, carbon reduction and sustainable development, and contributes
professional wisdom to the national carbon peak and carbon neutral strategy.
During the reporting period, the Company continued to sign orders for energy storage thermal management
projects and CCUS projects.
II. Analysis of core competence
The Company focuses on main business of cold and heat; independent R&D and joint venture partnerships are
cooperate with each other effectively; capital resources integration and business model innovation are in a positive
interaction; the community of business and interest are being multi-layered created; the develop mode with
Bingshan characteristic are formed.
The Company has the integrated cold-heat industrial chain for offering kinds of comprehensive solution services,
including design, manufacture, installation and maintenance etc., and can satisfy individual requirements
preferably.
The Company possesses a mature and solid marketing networks and after-sale service network on/off-line, and
can offer high quality and high value-added services more initiative and faster for clients from around the city.
Following the technical route of cold and heat balance, the Company has independently developed a series of
energy-saving, environment-friendly, efficient and intelligent cold and heat technologies and products, and
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
actively fulfilled the dual carbon responsibility.
While promoting the transformation and upgrading of its inherent business in an orderly manner, the Company
actively cultivates new momentum for development, and the path of sustainable growth is increasingly clear.
During the reporting period, the Company focused on the hot and cold business, deeply cultivated the market
segment, and steadily improved its sales force, product force, technical force, engineering force and service force,
so as to further enhance its core competitiveness.
III. Analysis of main business
In the first half of 2026, the Company focused on the hot and cold business, deeply cultivated segmented
markets, and continuously strengthened its main business. In the first half of 2026, the Company achieved an
operating revenue of 2,179.67 million yuan, a decrease of 8.62% year-on-year; The net profit attributable to
the shareholders of the listed company was 47.14 million yuan, a decrease of 39.98% year-on-year, mainly
due to the rising prices of raw materials and intensified market competition.
During the reporting period, the Company's subsidiary, Bingshan Engineering, continued to deepen its focus
in niche markets. In the product sector, it actively served high-end clients, securing contracts for several
high-standard projects such as those for the Three Major Oil Companies and Chengxin Chemical. In the
engineering sector, it undertook key projects including the Taizhou Jiaojiang Fish Town, Zhengzhou Dahan
Huiji, Guangzhou Jiangnan Fruit and Vegetable, and Shandong Linqing Agricultural Product projects. In the
energy sector, orders for energy storage thermal management and CCUS continued to be signed.
During the reporting period, the Company's subsidiary, Bingshan Guardian's Cold & Heat System, achieved
new milestones in intelligent energy-saving control. The next-generation Model Predictive Control (MPC)
algorithm was successfully implemented in Bingshan's cold and heat equipment applications, progressing
steadily. The development of MPC energy-saving algorithms embedded in edge controllers has reached
phased results. The Hardware-in-the-Loop testing platform for energy storage temperature control systems
was pragmatically established, significantly enhancing development efficiency.
During the reporting period, the Company's subsidiary, Sonyo Compressor, achieved independent innovation
and high-quality growth. The series development of high-horsepower scroll compressors progressed steadily,
while DC inverter scroll compressors suitable for data center temperature control systems were actively
promoted. Focusing on the heat pump sector, it continued to deepen its expansion in the European market.
Through cost reduction and efficiency improvement, it sought to mitigate the impact of rising bulk material
prices. It was recognized as one of the 100 National 5G Factory Model Application Practice Projects and
selected as a 2026 Liaoning Provincial Intelligent and Digital Transformation Benchmark Enterprise.
During the reporting period, the subsidiary of the Company, Sonyo Refrigeration, focused on industrial
energy conservation and innovative green growth. Signed a contract for the absorption type Class II heat
pump project with the largest steam production capacity in a single domestic project, achieving efficient
coupling of waste heat recovery and steam production. The specialized lithium bromide unit for offshore
platforms has been successfully developed. Awarded as a national level green factory.
During the reporting period, the subsidiary of the Company, Sonyo Refrigeration System, made new
progress in product development. The prototype development of the transcritical CO2 air-cooled integrated
unit has been completed, assisting in the expansion of overseas markets. Optimization and upgrade of marine
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
OCCS compression module and liquefaction module. Launching a new generation of vanadium liquid flow
energy storage temperature control system, actively promoting the development of new customers.
Main financial data variations as compared to the same period of last year
Monetary unit: RMB Yuan
Increase or decrease from the
Report period Same period of last year
same period of last year
Operating revenue 2,179,670,345.56 2,385,274,786.05 -8.62%
Operating cost 1,830,321,338.64 1,993,539,200.73 -8.19%
Selling and distribution expenses 94,846,927.33 106,758,706.39 -11.16%
Administrative expenses 122,206,345.73 123,348,672.93 -0.93%
Financial expenses 15,247,914.85 5,500,121.52 177.23%
Income tax 8,162,939.58 11,443,201.02 -28.67%
R&D expenses 67,347,702.62 69,166,325.91 -2.63%
Net cash flow coming from operating activities -97,657,176.10 -968,304.83 -
Net cash flow coming from investment activities -41,473,545.06 -58,197,181.93 28.74%
Net cash flow coming from fund-raising activities -106,708,896.83 -117,191,683.16 8.94%
Net increase in cash and cash equivalents -249,538,870.96 -172,604,530.42 -39.35%
Note 1: Financial expenses increased significantly, primarily due to foreign exchange losses incurred during
the current period.
Note 2: The decrease in income tax expense was primarily due to the reduction in total profit for the current
period.
Note 3: The net cash flow generated from operating activities has significantly decreased year-on-year,
mainly due to a decrease in current period payments.
Sales income and costs
Report period Same period of last year
Increase or decrease from the
Proportion to the Proportion to the
Amount Amount same period of last year
Sales costs Sales costs
Total sales income 2,179,670,345.56 100% 2,385,274,786.05 100% -8.62%
By industry
Refrigeration and
air-conditioning 2,128,242,559.30 97.64% 2,346,491,455.81 98.37% -9.30%
equipment
Others 51,427,786.26 2.36% 38,783,330.24 1.63% 32.60%
By product
Industrial products 1,563,458,060.44 71.73% 1,608,983,274.72 67.45% -2.83%
Installation project 564,784,498.86 25.91% 715,302,366.12 29.99% -21.04%
Other products and
services
Domestic sales 1,900,015,946.83 87.17% 2,029,028,362.80 85.06% -6.36%
Foreign sales 279,654,398.73 12.83% 356,246,423.25 14.94% -21.50%
Main business structure
Monetary unit: RMB yuan
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Increase/decrease
Increase/decrease
of operating
Gross of operating costs Increase/decrease of gross profit
Operating revenue Operating costs revenues from the
profit from the same from the same period of last year
same period of
period of last year
last year
By industry
Refrigeration and
air-conditioning
By product
Industrial products 1,563,458,060.44 1,277,617,577.52 18.28% -2.83% -1.12% decrease1.41 percentage points
Installation project 564,784,498.86 528,277,887.06 6.46% -21.04% -20.95% decrease 0.10 percentage points
By region
Domestic sales 1,848,588,160.57 1,579,153,916.73 14.58% -8.89% -7.79% decrease 0.05 percentage points
Foreign sales 279,654,398.73 226,741,547.85 18.92% -21.50% -19.28% decrease 2.23 percentage points
IV. Analysis of the non-main business
□Applicable√Not applicable
V. Analysis of assets & liabilities
Monetary unit: RMB yuan
Proportion to Proportion to Proportion increase/decrease.
Amount Amount
the total assets the total assets
Monetary funds 621,705,465.37 8.35% 881,961,122.28 11.59% Decrease 3.24 percentage points
Accounts receivable 1,826,609,128.67 24.55% 1,635,556,614.58 21.50% Increase 3.05 percentage points
Contract assets 164,032,341.04 2.20% 161,816,928.39 2.13% Increase 0.07 percentage points
Inventories 1,401,211,017.51 18.83% 1,439,914,414.18 18.93% Decrease 0.10 percentage points
Investment property 133,159,366.12 1.79% 121,350,188.47 2.00% Decrease 0.21 percentage points
Long-term equity
investment
Fixed assets 1,210,192,835.36 16.26% 1,261,222,376.24 16.58% Decrease 0.32 percentage points
Construction in progress 18,185,186.15 0.24% 15,669,392.61 0.21% Increase 0.03 percentage points
Right of use assets 15,911,036.97 0.21% 18,009,137.49 0.24% Decrease 0.03 percentage points
Short-term loans 204,665,086.56 2.75% 201,836,464.89 2.65% Increase 0.10 percentage points
Contract liabilities 477,122,097.44 6.41% 525,086,822.72 6.90% Decrease 0.49 percentage point
Long-term loans 304,100,000.00 4.09% 368,328,245.18 4.84% Decrease 0.75 percentage points
Lease liabilities 12,393,294.67 0.17% 16,563,173.78 0.22% Decrease 0.05 percentage points
□ Applicable √ Not applicable
√ Applicable □ Not applicable
The beginning number is 1,683,852.59 yuan for other non-current financial assets measured by fair value. There
was no change during the reporting period, and the final number is 1,683,852.59 yuan.
√ Applicable □ Not applicable
Items 2026.6.30 Reasons
Monetary fund 38,536,737.16 Guarantee money; Frozen funds in bank accounts
Notes Receivable 850,000.00 Pledge
Financing of receivables 587,572.14 Pledge
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Items 2026.6.30 Reasons
Fixed assets 59,480,216.27 Pledge
Intangible assets 5,008,531.57 Pledge
investment property 29,889,269.11 Pledge
Total 134,352,326.25
VI. Analysis of investments
√ Applicable □ Not applicable
Investment in the report period (yuan) Investment in the same period of last year (yuan) Amount of variation
Note: The investment amount during the reporting period decreased by 47.60%, mainly due to the purchase of a
high-power production line by its subsidiary Sonyo Compressor in the same period last year.
□ Applicable √ Not applicable
□Applicable √Not applicable
(1) The securities investment
□Applicable √Not applicable
(2) Derivative investment
□Applicable √ Not applicable
During the reporting period, the Company does not exist derivative investment.
VII. The material assets and equity sale
□Applicable √Not applicable
□Applicable √Not applicable
VIII. Analysis of major subsidiary companies and mutual shareholding companies
√ Applicable □ Not applicable
Unit: ten thousand yuan (except for registered capital)
operating
Company name Type The main business registered capital total assets net assets Net profit
income
mutual
Sonyo Compressor shareholding Scroll Compressor 442,396,700 yuan 164,700.78 119,308.12 66,146.11 4,675.27
company
Pipe system connectors,
mutual high-speed rail connectors,
Bingshan Metal
shareholding hydraulic valve bodies, USD 18.0645 million 34,106.92 26,840.80 22,816.41 2,459.09
Technology
company automotive engine parts,
etc.
Subsidiary companies obtained or disposed in the reporting period
√ Applicable □ Not applicable
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
The scope of consolidation at the end of the reporting period increased by one compared to the beginning of the
year, which is Dalian Bingshan Part Technology Co., Ltd., and decreased by one compared to the beginning of
the year, which is Wuhan Lan Ning Energy Technology Co., Ltd.
IX. The structured corporate bodies which the Company controlled
□Applicable √Not applicable
X. Main risks the company faces and response measures
(1)Increasing market competition risk
Countermeasures: focus on hot and cold industries, deeply cultivate segmented markets; quickly enhance product
and engineering capabilities; orderly improving the level of intelligent manufacturing and service-oriented
manufacturing; accelerate the transformation and upgrading of inherent undertakings, improve quality and
efficiency; accelerate the cultivation of new driving forces and increase differentiated competitive advantages.
(2)Risk of high level of trade receivables
Countermeasures: gradually increase the proportion of self-product revenue, strictly implement the project
management system and further strengthen the management of accounts receivable; enhance quality of contract
through intensified customer credit assessment and contract appraisal; effective control of increase in trade
receivables by reduction of guarantee deposits, and taking bank credit instruments as guarantee deposits; improve
contract execution through stricter review on goods delivery, intensified control on project construction and
acceptance, and post-sale service; prepare special composition solutions and incentive policy to accelerate
settlement of trade receivables with relatively long aging.
XI. Implementation of Market Value Management System and Valuation Enhancement Plan
Has the Company established a market value management system.
□Applicable √Not applicable
Has the Company disclosed a plan to increase its valuation.
√Applicable □Not applicable
Due to the fact that the B-share prices have been consistently lower than the net asset value, the Company has
formulated the "Valuation Enhancement Plan", aiming to increase the Company's valuation from several
dimensions such as business improvement, mergers and acquisitions, cash dividends, information disclosure,
investor relations management, and social responsibility. For detailed information, please refer to the relevant
announcement disclosed by the Company on April 24, 2026.
XII. Implementation of the Action Plan for "Double Improvement of Quality and Return"
Has the Company disclosed the announcement of the "Double Improvement of Quality and Return" action plan.
□Applicable √Not applicable
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Section 4 Corporate governance Environmental and Social
Responsibility
I. Changes of directors and senior managers of the Company
√Applicable □ Not applicable
II. Profit distribution and dividend payment
Name Position held Type Date Reason
Nakamichi Tetsuya Director Resignation Apr.7,2026 Job transfer
Nishimoto Shigeyuki Director Elected May 21,2026 Job transfer
III．The implementation and effect of equity incentive
□ Applicable √ Not applicable
IV．Major environmental issues
Whether the Company and its major subsidiaries are included in the list of enterprises that are required to disclose
environmental information in accordance with the law
√Yes □ No
Company Name Query index
Wuhan New World Refrigeration Industry Co., Ltd http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/index
Sonyo Compressor (Dalian) Co., Ltd. https://qyxxpl.ywzh.lnsthj.cn:8802/home/index
V．Social responsibilities
In the first half of 2026, based on the solid progress of the rural revitalization assistance work, the Company
further expanded its public welfare scope and actively carried out charity education assistance and social
volunteer services. The specific work is as follows:
Zhuanghe City. Provide maintenance for the air conditioning equipment of the cultural activity venue for the
villagers.
to actively participate.
set up public welfare lecture halls to popularize refrigeration knowledge, in order to help with talent cultivation
through love-based education assistance, and protect the growth of students with love.
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Section 5 Important items
I. Commitments made by the actual controller, shareholders, related parties,
purchasers, the company and other relevant parties that have completed their
performance during the reporting period and have not completed their
performance as of the end of the reporting period
□ Applicable √ Not applicable
II. Non-operation capital occupation by holding shareholders and their related
parties in the listed company
□ Applicable √ Not applicable
III. Foreign guarantee in violation of regulations
□ Applicable √ Not applicable
IV. Engagement and dismissal of the accounting firm
□ Applicable √ Not applicable
V. Explain to the “non standard audit report” of this reporting period from the
board of directors, board of supervisors of the Company
□Applicable √Not applicable
VI. Explain to the “non standard audit report” last year from the board of
directors of the Company
□Applicable √Not applicable
VII. Bankruptcy restructuring related matters
□ Applicable √ Not applicable
VIII. Major lawsuit issues
□ Applicable √ Not applicable
The Company had no major lawsuit issues in the reporting period.
IX. Punishment and rectification
√Applicable □ Not applicable
The Company and related personnel received the Regulatory Rectification Measures Decision
(Administrative Regulatory Measures [2026] No. 7) issued by the Dalian Regulatory Bureau of the
China Securities Regulatory Commission on March 2, 2026, which required the Company to rectify
issues related to related-party transactions, corporate governance, revenue recognition, and other
matters. Upon receiving the regulatory measures decision, the Company promptly assigned
responsibilities and implemented corrective actions diligently. As of the end of the reporting period,
the aforementioned issues had been fully rectified. For details, refer to the "Rectification Report on
the Regulatory Rectification Measures Taken by the Dalian CSRC Against the Company and Related
Personnel" disclosed by the Company on March 26, 2026, on the Cninfo website.
X. The credibility of Companies and its controlling shareholder, actual controller
√ Applicable □ Not applicable
The controlling shareholder of the Company and the Company don’t exist situation such as
unfulfilled the court’s effective judgments or failed to pay duly a large amount of debt during the
reporting period.
XI. Important associated transactions
In the reporting period, the total amount of normal associated transactions between the Company and
associated parties was 456,500 thousand yuan, accounting for 41.61% of the budgeted amount for
the year 2026. This included 125,420 thousand yuan, accounting for 36.23% of the budgeted amount
for the year 2026, for purchasing supporting products for package projects from associated parties,
and 331,080 thousand yuan, accounting for 44.08% of the budgeted amount for the year 2026, from
selling supporting parts and components to associated parties.
□ Applicable √ Not applicable
□ Applicable √ Not applicable
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
□ Applicable √ Not applicable
companies or financial companies that the company holds
□ Applicable √ Not applicable
□ Applicable √ Not applicable
XII．Major contract and its performance
(1) the hosting status
□ Applicable √ Not applicable
(2) the contracting status
□ Applicable √ Not applicable
(3) the leasing status
√ Applicable □ Not applicable
The Company signed rental contract with MHI Bingshan Refrigeration (Dalian) Co., Ltd., and rent #
Development Zone to MHI Bingshan Refrigeration (Dalian) Co., Ltd. The rental area is 15,259.04
square meters, and the rental term till 16th July, 2029. The annual rent fee for the current reporting
period is RMB 1.9139 million Yuan.
The Company signed rental contract with Dalian Bingshan Wisdom Park Co., Ltd., and rent out the
whole land and house of the Company’s old plant locating at No. 888, Southwest Road, Shahekou
District, Dalian to Dalian Bingshan Wisdom Park Co., Ltd., with rental land area of 167,165.61
square meters and housing area of 105,652.43 square meters. The lease term is from April 1, 2017 to
December 31, 2036. The annual rent fee for the current reporting period is RMB 6.1403 million
Yuan.
√ Applicable □ Not applicable
The Company provided guarantees for its client Shandong Jiechuang Energy Technology Co., Ltd.,
and Jilin Fuyu Agricultural Technology Co., Ltd. based on financing leasing business, which lasted
until the reporting period.
As of the date of this report, all guaranteed debts of Shandong Jiechuang Energy Technology Co.,
Ltd. have been fully settled, and the Company has not assumed any guarantee liability.
Due to its own operational issues, Jilin Province Fuyu Agricultural Technology Co., Ltd. delayed
repayment. Its subsidiary, Dalian Bingshan RYOSETSU Quick Freezing Equipment Co., Ltd.
("Bingshan RYOSETSU "), will advance rental payments monthly starting from August 2026, with a
total advance amount of 9.1385 million yuan. Based on these advances, Bingshan RYOSETSU has
accrued a provision of 1.3016 million yuan in its interim financial statements for the first half of
Subsidiary's Partial Guarantee Liability Performance" disclosed on August 5, 2026.
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□Applicable √Not applicable
XIII. Description of other important matters
□Applicable √Not applicable
XV. Major matters of the company's subsidiaries
□Applicable √Not applicable
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Section 6 Change in Share Capital and Shareholders'
Information
I. Change in share capital
Shares Shares
（before change） （after change）
items Changes
number proportion number proportion
I. Non-circulating share capital with restricted
trade conditions
Other domestic shares 1,595,782 0.19% 0 1,595,782 0.19%
II. Circulating share capital 841,616,725 99.81% 0 841,616,725 99.81%
III. Total shares 843,212,507 100.00% 0 843,212,507 100.00%
The reason for the Change in share capital
□ Applicable √ Not applicable
Approval of changes in shares
□ Applicable √ Not applicable
The influence of change in share capital on the recent year and recent issue for basic earnings per
share ,diluted earnings per share and net assets per share.
□ Applicable √ Not applicable
□ Applicable √ Not applicable
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Shareholders and actual controller
Total number of shareholders in the reporting Total number of shareholders as of the last month
period before disclosure of the annual report
Shareholding of top ten shareholders
Number of
Number of
pledged
shares
Name Nature Proportion Total number shares or
with sale
shares
restriction
frozen
Domestic non-state-owned
Dalian Bingshan Group Co., Ltd. 20.27% 170,916,934 0 0
legal person
Sanyo Electric Co., Ltd. Overseas legal person 8.72% 73,503,150 0 0
Lin Zhenming Foreign natural person 0.80% 6,710,000 0 0
Wu xiaodong Domestic natural person 0.53% 4,445,400 0 0
Xue Hong Domestic natural person 0.43% 3,660,000 0 0
Han Wentao Domestic natural person 0.38% 3,181,300 0 0
Chen Naisheng Domestic natural person 0.27% 2,311,330 0 0
Gao wenbin Domestic natural person 0.25% 2,071,600 0 0
Zhao Guoqing Domestic natural person 0.24% 2,050,600 0 0
Chao huang Investment Co., Ltd. Overseas legal person 0.24% 2,037,000 0 0
Shareholding of top ten shareholders without sale restriction
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Number of shares without
Name Type of shares
sale restriction
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 6,710,000 Domestically listed foreign shares
Wu xiaodong 4,445,400 Domestically listed foreign shares
Xue Hong 3,660,000 Domestically listed foreign shares
Han Wentao 3,181,300 RMB denominated ordinary shares
Chen Naisheng 2,311,330 RMB denominated ordinary shares
Gao wenbin 2,071,600 RMB denominated ordinary shares
Zhao Guoqing 2,050,600 RMB denominated ordinary shares
Chao huang Investment Co., Ltd. 2,037,000 Domestically listed foreign shares
Dalian Bingshan Group Co., Ltd. had the association relationship
Notes to the associated relationship and uniform actions of the with Sanyo Electric Co., Ltd. among the above shareholders.
above shareholders Sanyo Electric Co., Ltd. holds 26.6% of Dalian Bingshan Group
Co., Ltd.'s equity.
At the end of the report period, the total number of shareholders of the Company was 61,890,
including 55,153 A-share shareholders and 6,737 B-share shareholders.
If the Company shareholders had any agreed repurchase transaction in the report period
□ Yes √ No
IV. Changes in shareholding of directors, supervisors and senior managers
□ Applicable √ Not applicable
V. Variation in controlling shareholders or actual controllers
Variation in controlling shareholders in the report period
□ Applicable √ Not applicable
There were no changes in the controlling shareholder in the reporting period.
Variation in actual controllers in the report period
□ Applicable √ Not applicable
VI .Information on Preferred Stock
□ Applicable √ Not applicable
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Section 7 Bond Related Information
□ Applicable √ Not applicable
In the reporting period, the Company didn’t own Bond.
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Section 8 Financial Report
I. The Company's semiannual financial report has not been audited.
II. Accounting statement
BALANCE SHEET
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. June 30, 2026 Unit: RMB Yuan
Items
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 621,705,465.37 113,515,135.42 881,961,122.28 168,256,281.11
Financial assets which are measured by fair value and
which changes are recorded in current profit and loss
Derivative financial assets
Transaction financial assets
Notes receivable 267,365,854.50 47,305,528.08 327,073,361.42 68,484,896.13
Accounts receivable 1,826,609,128.67 554,007,883.87 1,635,556,614.58 463,332,443.22
Receivables financing 359,361,883.76 6,979,764.00 335,509,461.15 13,757,310.58
Accounts paid in advance 174,821,372.60 53,625,122.62 155,949,650.91 65,122,891.32
Other receivables 39,566,910.35 41,659,004.14 43,092,575.59 191,936,403.02
Interest receivables
Dividend receivable 10,542,431.14 3,767,645.29 160,000,000.00
Inventories 1,401,211,017.51 343,200,107.59 1,439,914,414.18 332,344,633.33
Contract assets 164,032,341.04 85,654,431.14 161,816,928.39 81,471,465.36
Assets held for sale
Non-current asset due within one year 388,297.01 359,632.86
Other current assets 25,920,339.90 781,103.82 34,899,376.92 4,225,339.08
Total current assets 4,880,982,610.71 1,246,728,080.68 5,016,133,138.28 1,388,931,663.15
Non-current assets:
Finance asset held available for sales
Held-to-maturity investment
Long-term account receivable 1,215,310.60 1,215,818.17
Long-term equity investment 494,479,222.61 2,907,311,253.08 483,028,918.31 2,894,643,627.80
Other Non-current financial assets 1,683,852.59 368,710.09 1,683,852.59 368,710.09
Investment property 133,159,366.12 131,432,747.11 121,350,188.47 119,792,927.12
Fixed assets 1,210,192,835.36 547,827,097.74 1,261,222,376.24 582,725,753.84
Construction in progress 18,185,186.15 902,769.43 15,669,392.61
Right of use assets 15,911,036.97 24,193,146.66 18,009,137.49 25,719,058.05
Engineering material
Disposal of fixed asset
Productive biological asset
Oil and gas asset
Intangible assets 245,247,816.89 60,308,441.86 252,007,735.29 65,079,359.37
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Expense on Research and Development
Goodwill 286,402,171.93 286,402,171.93
Long-term expenses to be apportioned 5,741,453.87 1,795,432.05 6,036,271.48 2,301,963.63
Deferred income tax asset 126,541,496.49 37,976,519.09 125,344,507.42 38,320,227.77
Other non-current asset 21,958,029.35 3,985,197.86 19,040,425.35 731,843.86
Total non-current asset 2,560,717,778.93 3,716,101,314.97 2,591,010,795.35 3,729,683,471.53
Total assets 7,441,700,389.64 4,962,829,395.65 7,607,143,933.63 5,118,615,134.68
Current liabilities:
Short-term loans 204,665,086.56 120,000,000.00 201,836,464.89 138,089,585.21
Financial liabilities which are measured by fair value
and which changes are recorded in current profit and
loss
Derivative financial liabilities
Transaction financial liabilities
Notes payable 638,705,442.61 99,390,540.81 665,364,289.18 113,282,771.39
Accounts payable 1,764,645,833.58 383,636,727.71 1,664,582,164.08 387,588,325.46
Accounts received in advance
Contract liabilities 477,122,097.44 67,208,810.94 525,086,822.72 63,052,699.58
Wage payable 44,765,823.85 123,043.61 125,177,034.62 8,535,633.24
Taxes payable 21,106,180.53 3,623,326.96 19,752,816.57 3,070,077.04
Other accounts payable 282,454,141.82 201,743,771.31 242,101,014.95 150,943,100.70
Interest payable
Dividend payable 42,693,781.35 42,693,781.35 533,156.00 533,156.00
Liabilities held for sale
Non-current liabilities due within one year 197,567,039.79 177,980,481.56 237,446,970.64 215,298,994.11
Other current liabilities 146,876,468.46 44,815,474.29 184,739,239.53 64,935,733.49
Total current liabilities 3,777,908,114.64 1,098,522,177.19 3,866,086,817.18 1,144,796,920.22
Non-current liabilities:
Long-term loans 304,100,000.00 304,100,000.00 368,328,245.18 368,328,245.18
Bonds payable
Preferred stock
Perpetual bond
Lease liability 12,393,294.67 18,425,192.21 16,563,173.78 19,917,432.95
Long-term account payable 16,350,240.32 18,845,786.63
Long-term wage payable
Special Payable
Anticipation liabilities 3,036,070.48 2,300,208.22
Deferred income 81,589,929.36 45,469,741.11 92,793,132.73 55,223,748.78
Deferred income tax liabilities 26,903,219.27 28,734,303.46
Other non-current liabilities
Total non-current liabilities 444,372,754.10 367,994,933.32 527,564,850.00 443,469,426.91
Total liabilities 4,222,280,868.74 1,466,517,110.51 4,393,651,667.18 1,588,266,347.13
Shareholders’ equity
Share capital 843,212,507.00 843,212,507.00 843,212,507.00 843,212,507.00
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Other equity instruments
Preferred stock
Perpetual bond
Capital public reserve 717,097,098.38 695,623,539.31 717,830,641.15 695,623,539.31
Less: Treasury stock
Other comprehensive income 2,208,669.73 1,246,569.06 2,208,669.73 1,246,569.06
Special preparation 3,046,119.31 1,988,616.80
Surplus public reserve 947,945,927.76 947,945,927.76 923,202,335.01 923,202,335.01
Generic risk reserve
Retained profit 645,812,465.61 1,008,283,742.01 666,260,524.87 1,067,063,837.17
Total owner’s equity attributable to parent company 3,159,322,787.79 3,154,703,294.56
Minority interests 60,096,733.11 58,788,971.89
Total owner’s equity 3,219,419,520.90 3,496,312,285.14 3,213,492,266.45 3,530,348,787.55
Total liabilities and shareholder’s equity 7,441,700,389.64 4,962,829,395.65 7,607,143,933.63 5,118,615,134.68
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
INCOME STATEMENT
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. January-June, 2026 Unit: RMB Yuan
January-June, 2026 January-June, 2025
Items
Consolidation Parent Company Consolidation Parent Company
I. Total sales 2,179,670,345.56 346,561,321.87 2,385,274,786.05 443,470,670.15
II. Total operating cost 2,146,041,230.74 363,321,390.89 2,314,570,743.85 460,673,078.78
Including: Operating cost 1,830,321,338.64 292,026,055.49 1,993,539,200.73 382,684,101.95
Taxes and associate charges 16,071,001.57 5,814,451.28 16,257,716.37 5,477,205.69
Selling and distribution expenses 94,846,927.33 7,316,787.36 106,758,706.39 14,581,396.27
Administrative expenses 122,206,345.73 38,567,001.16 123,348,672.93 39,402,674.11
R&D expenses 67,347,702.62 12,268,147.45 69,166,325.91 9,834,164.03
Financial expense 15,247,914.85 7,328,948.15 5,500,121.52 8,693,536.73
Including: interest expense 9,944,756.95 7,300,079.89 12,504,559.82 8,398,665.12
interest income 2,255,910.41 65,474.93 3,358,417.93 292,579.75
Add: Other income 12,714,406.39 7,215,540.26 8,794,590.75 2,425,847.98
Gain/(loss) from investment 14,172,398.96 20,233,457.88 23,176,138.30 22,713,836.61
Including: income from investment on
affiliated enterprise and jointly enterprise
Gain/(loss) from change in fair value (loss as “-“)
Credit impairment loss (loss as “-“) -4,728,515.12 -1,587,585.55 -9,867,633.85 -2,896,832.18
Assets impairment loss (loss as “-“) -1,195,665.68 -382,692.15 -3,673,034.11 -4,487,134.99
Gain/(loss) from asset disposal (loss as “-“) -77,707.59 -49,988.53 -55,842.88 0.00
III. Operating profit 54,514,031.78 8,668,662.89 89,078,260.41 553,308.79
Add: non-business income 2,680,136.04 0.00 5,555,600.15 308,508.80
Less: non-business expense 580,850.95 200,831.27 1,650,514.85 116,697.85
IV. Total profit 56,613,316.87 8,467,831.62 92,983,345.71 745,119.74
Less: Income tax 8,162,939.58 343,708.68 11,443,201.02 -750,091.66
V. Net profit 48,450,377.29 8,124,122.94 81,540,144.69 1,495,211.40
(I) Net profit from continuous operation 48,450,377.29 8,124,122.94 81,540,144.69 1,495,211.40
(II)Net profit from discontinuing operation
Net profit attributable to parent company 47,142,616.07 78,543,776.29
Minority shareholders’ gains and losses 1,307,761.22 2,996,368.40
VI. After-tax net amount of other comprehensive
incomes
After-tax net amount of other comprehensive incomes
attributable to owners of the Company
(I) Other comprehensive incomes that will not be
reclassified into gains and losses
benefit plan upon re-measurement
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
invests that will be reclassified into gains and losses
under the equity method
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
available-for-sale financial assets
investments into available-for-sale financial assets
difference
……
After-tax net amount of other comprehensive incomes
attributable to minority shareholders
VII Total comprehensive income 48,450,377.29 8,124,122.94 81,540,144.69 1,495,211.40
Total comprehensive income attributable to parent
company
Total comprehensive income attributable to minority
shareholders
VIII. Earnings per share
(I) basic earnings per share 0.06 0.09
(II) diluted earnings per share 0.06 0.09
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
CASH FLOW STATEMENT
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. January -June, 2026 Unit: RMB Yuan
January -June, 2026 January -June, 2025
Items
Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing
labor services
Write-back of tax received 22,385,580.77 89,516.28 30,136,813.41 7,773,364.19
Other cash received concerning operating activities 41,678,584.27 5,431,070.37 52,687,039.90 15,930,701.50
Subtotal of cash inflow arising from operating activities 1,978,698,526.52 308,862,252.65 2,139,209,882.19 325,646,282.33
Cash paid for purchasing commodities and receiving
labor service
Cash paid to/for staff and workers 420,007,507.12 62,897,103.90 430,434,443.85 58,113,306.87
Taxes paid 60,869,392.00 9,104,389.04 90,036,455.03 23,062,915.04
Other cash paid concerning operating activities 114,545,584.18 26,820,392.49 124,038,438.59 24,732,332.92
Subtotal of cash outflow arising from operating activities 2,076,355,702.62 389,950,027.96 2,140,178,187.02 354,197,647.79
Net cash flows arising from operating activities -97,657,176.10 -81,087,775.31 -968,304.83 -28,551,365.46
II. Cash flows arising from investing activities:
Cash received from recovering investment
Cash received from investment income 160,000,000.00 11,150.00 100,000,000.00
Net cash received from disposal of fixed, intangible and
other long-term assets
Net cash received from disposal of subsidiaries and other
units
Other cash received concerning investing activities 50,000,000.00 50,000,000.00
Subtotal of cash inflow from investing activities 50,791,693.53 160,000,000.00 50,241,092.68 100,000,000.00
Cash paid for purchasing fixed, intangible and other
long-term assets
Cash paid for investment 1,420,000.00 3,000,000.00 3,000,000.00
Net cash paid for achievement of subsidiaries and other
business units
Other cash paid concerning investing activities 60,222,000.00 50,000,000.00
Subtotal of cash outflow from investing activities 92,265,238.59 10,511,727.01 108,438,274.61 12,354,241.46
Net cash flows arising from investing activities -41,473,545.06 149,488,272.99 -58,197,181.93 87,645,758.54
III. Cash flows arising from financing activities
Cash received from absorbing investment
Including: Cash received from absorbing minority
shareholders' equity investment by subsidiaries
Cash received from loans 151,681,236.67 70,000,000.00 132,102,821.74 90,000,000.00
Cash received from issuing bonds
Other cash received concerning financing activities 5,559,746.47 5,943,611.11
Subtotal of cash inflow from financing activities 157,240,983.14 70,000,000.00 138,046,432.85 90,000,000.00
Cash paid for settling debts 243,876,930.69 188,500,000.00 223,984,656.45 204,729,166.67
Cash paid for dividend and profit distributing or interest
paying
Including: dividends or profit paid by subsidiaries to
minority shareholders
Other cash paid concerning financing activities 11,029,846.31 3,037,500.00 21,416,068.90 2,952,500.00
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Subtotal of cash outflow from financing activities 263,949,879.97 198,539,803.78 255,238,116.01 215,842,545.85
Net cash flows arising from financing activities -106,708,896.83 -128,539,803.78 -117,191,683.16 -125,842,545.85
IV. Influence on cash due to fluctuation in exchange rate -3,699,252.97 3,752,639.50
V. Net increase of cash and cash equivalents -249,538,870.96 -60,139,306.10 -172,604,530.42 -66,748,152.77
Add: Balance of cash and cash equivalents at the period
-begin
VI. Balance of cash and cash equivalents at the
period–end
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd 2026.01-06 Unit: RMB Yuan
Owners’ equity attributable to parent company
Items Lessen: Other Retained Minority Total of
Capital Special Surplus equity owners’ equity
share capital treasury comprehens profits
suplus preparation reserve
stock ive income
I. balance at the end of last
year
policy
previous period
II. Balance at the beginning of
this year
III. Increase/ decrease of
amount in this year (“-” -733,542.77 1,057,502.51 24,743,592.75 -20,448,059.26 1,307,761.22 5,927,254.45
means decrease)
(I) Total comprehensive
incomes
(II) Capital increased and
reduced by owners
by shareholders
holders of other equity
instruments
payments recognized in
owners’ equity
(III) Profit distribution -733,542.77 24,743,592.75 -67,590,675.33 -43,580,625.35
-733,542.77 24,743,592.75 -24,743,592.75 -43,580,625.35
public reserve
(shareholders)
(IV) Internal carrying
forward of owners’ equity
capital from capital reserves
to share capital
losses
(V) Specific reserve 1,057,502.51 1,057,502.51
(VI) Other
IV. Balance at the end of this
period
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Owners’ equity attributable to parent company
Items Lessen: Other Retained Minority Total of
Capital Special Surplus equity owners’ equity
share capital treasury comprehens profits
suplus preparation reserve
stock ive income
I. balance at the end of last
year
policy
previous period
II. Balance at the beginning of
this year
III. Increase/ decrease of
amount in this year (“-” 1,531,905.35 15,212,024.95 21,358,170.60 2,996,368.40 41,098,469.30
means decrease)
(I) Total comprehensive
incomes
(II) Capital increased and
reduced by owners
by shareholders
holders of other equity
instruments
payments recognized in
owners’ equity
(III) Profit distribution 15,212,024.95 -57,185,605.69 -41,973,580.74
public reserve
-42,160,625.35 -42,160,625.35
(shareholders)
(IV) Internal carrying
forward of owners’ equity
capital from capital reserves
to share capital
losses
(V) Specific reserve 1,531,905.35 1,531,905.35
(VI) Other
IV. Balance at the end of this 843,212,507.00 717,097,098.38 2,208,669.73 1,531,905.35 910,830,538.64 695,324,348.44 60,002,857.20 3,230,207,924.74
period
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
STATEMENT OF CHANGES IN OWNERS’ EQUITY
Prepared by Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd 2026.01-06 Unit: RMB Yuan
Owners’ equity attributable to parent company
Items Other Lessen: Other Total of owners’
Capital Special Surplus equity
share capital equity treasury comprehensive Retained profits
suplus preparation reserve
instrument stock income
I. balance at the end of last
year
policy
previous period
II. Balance at the beginning of
this year
III. Increase/ decrease of
amount in this year (“-” 24,743,592.75 --58,780,095.16 -34,036,502.41
means decrease)
(I) Total comprehensive
incomes
(II) Capital increased and
reduced by owners
by shareholders
holders of other equity
instruments
payments recognized in
owners’ equity
(III) Profit distribution 24,743,592.75 -66,904,218.10 -42,160,625.35
public reserve
-42,160,625.35 -42,160,625.35
(shareholders)
(IV) Internal carrying
forward of owners’ equity
capital from capital reserves
to share capital
losses
(V) Specific reserve
(VI) Other
IV. Balance at the end of this
period
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Owners’ equity attributable to parent company
Items Other Lessen: Other Total of owners’
Capital Special Surplus equity
share capital equity treasury comprehensive Retained profits
suplus preparation reserve
instrument stock income
I. balance at the end of last
year
policy
previous period
II. Balance at the beginning of
this year
III. Increase/ decrease of
amount in this year (“-” 15,212,024.95 -55,877,438.90 -40,665,413.95
means decrease)
(I) Total comprehensive
incomes
(II) Capital increased and
reduced by owners
by shareholders
holders of other equity
instruments
payments recognized in
owners’ equity
(III) Profit distribution 15,212,024.95 -57,372,650.30 -42,160,625.35
public reserve
-42,160,625.35 -42,160,625.35
(shareholders)
(IV) Internal carrying
forward of owners’ equity
capital from capital reserves
to share capital
losses
(V) Specific reserve
(VI) Other
IV. Balance at the end of this
period
Legal Representative: Ji Zhijian Chief Financial Official: Wang Jinxiu Person in Charge of Accounting Organization: Wu Bin
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
III. General Information
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd (the “Company”) was
reorganized and reformed from main part of former Dalian Refrigeration Factory. On
December 8, 1993, the Company went to the public as a listed Company at Shenzhen Stock
Exchange Market. On March 20, 1998, the company successfully went to the public at B
share market and listed at Shenzhen Stock Exchange Market with total share capital of
RMB350,014,975Yuan.
According to the 13th meeting of the 6th generation of board, extraordinary general meeting
for 2015 fiscal year and ' Restricted share incentive plan (draft)', the Company planned to
introduce A ordinary shares to incentive objectives, which was 10,150,000 number of shares
would be granted to 41 share incentive objectives at granted price of RMB5.56Yuan per share.
Up to March 12th ,2015, the Company received new added share capital of
RMB10,150,000Yuan and the share capital had been verified by DaHua Certified Public
Accountants, and had been issued the capital verification report Dahuayanzi [2015]000086 on
March12th , 2015.
The general meeting for 2015 fiscal year held on 21st April 2016 approved the profit
distribution policy for the year of 2015, which agrees the profit distribution based on the total
every 10 shares through capital reserve. The policy stated above was fully implemented on
The 17thmeeting of the 6th generation of board was held on 4th June 2015 and the 2nd interim
shareholders’ meeting was held on 24th June 2015, meeting deliberated and passed the
proposal of non-public offering of ‘A shares’. China’s Securities Regulatory Commission
issued SFC license [2015]3137 on 30th December, 2015, approving that new non-public
offering cannot exceeded 38,821,954 number of shares. The company implemented the post
meeting procedures for China’s Securities Regulatory Commission, which is regarding
adjustment of bottom price and the number of the shares issued after the implementation of
profit distribution policy of 2015 in May, 2016, and accordingly revised the upper limit of
non-public offering of share to58,645,096 number of new ‘A shares’. The company issued the
non-public offering of 58,645,096 number of ‘A shares’ to 7 investors, and as a result, the
total number of shares of the company is changed to 598,892,558 shares, and the par value is
above has been verified by DaHua Certified Public Accountants, and has been issued the
capital verification report Dahuayanzi [2016]000457 on 31st May 2016.
According to the ‘Restricted Share Incentive Plan(draft) of Dalian Refrigeration Company
Limited for the year of 2016’ and the ‘Proposal regarding the shareholders’ meeting
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
authorized the board of directors to implement the Restricted Share Incentive Plan’ approved
on the 3rdprovisional general meeting held on 13th September 2016, the 9th meeting of the 7th
generation of board deliberated and passed the ‘Proposal about granting the restricted shares
to incentive targets’ on September 20th, 2016 and set 20th September 2016 as share granted
date, and granted 12,884,000 number of restricted shares to 188 incentive targets at granted
price of 5.62Yuan per share. By 22ndNovember, 2016, the company has actually received the
newly subscribed registered share capital of 12,884,000Yuan subscribed by incentive targets.
The share capital stated above has been verified by DaHua Certified Public Accountants, and
has been issued the capital verification report Dahuayanzi [2016]001138 on 23rdNovember,
On May 20th, 2017, the general meeting for 2016 fiscal year was held and profit
appropriation scheme for 2016 FY was approved, which was every 10 shares will be
increased by 4 shares through capital reserve based on the total 611,776,558 number of shares.
After the profit appropriation scheme, the registered capital was changed to
RMB856,478,181.00Yuan.
On December 18, 2017, the Company held the third extraordinary shareholders’ meeting of
Restricted Stocks of the 2016 Restricted Stock Incentive Plan”. On March 8, 2018, after the
completion of repurchase and cancellation, the Company implemented the corresponding
capital reduction procedures according to law, and the registered capital of the Company was
changed from 856,487,181 Yuan to 855,908,981 Yuan.
On May 4, 2018, the Company held the 21st meeting of the seventh board of directors which
reviewed and approved the Proposal on Repurchasing and Cancelling Party Restricted Stocks
of the 2015 Restricted Stock Incentive Plan. On June 29, 2018, after the completion of
repurchase and cancellation, the Company implemented the corresponding capital reduction
procedures according to law, and the registered capital of the Company was changed from
On January 17,2019, the Company held the first extraordinary shareholders’ meeting of 2019
which reviewed and approved the Proposal on terminating the implementation of 2016
Restricted Stock Incentive Plan of the Company and logouting the restricted stock. On March
of the Company was changed from 855,434,087 Yuan to 843,212,507 Yuan.
On December 20th, 2019, the Company held the 7th meeting of the 8th Board of Directors
and approved to change the Company’s name from Dalian Refrigeration Company Limited to
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd.
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
The Company is in industrial manufacturing sector, mainly engaged in industrial refrigeration,
refrigerated and frozen food storage, and manufacture and installation of central
air-conditioning and refrigeration equipment. The scope of business includes research and
development, design, manufacture, sale, lease, installation and repair of refrigeration and heat
equipment, accessories, spare parts, and energy-saving and environmental protection products;
Technical services, technical consultation, technical promotion; Design, construction,
installation repair and maintenance of complete sets of refrigeration and air conditioning
projects, mechanical and electrical installation projects, steel structure projects, anti-corrosion
and heat preservation works; Rental of premises; Transport of ordinary goods; Property
management; Low temperature storage; Import and export of goods and technologies. (With
the exception of projects subject to approval according to law, independently carry out
business activities according to law with the business license).
This financial report was approved and issued by the Board of Directors of the Company on
August 12, 2026.
IV. Financial Statements Preparation Basis
（1） Preparing basis
The group’s financial statements are prepared according to the actual occurred transactions
and events, and in accordance with ‘Accounting Standards for Business Enterprises’, its
application guidelines, interpretations and other relevant provisions promulgated by the
Ministry of Finance (collectively referred to as "Accounting Standards for Business
Enterprises") and " No. 15 of Information Disclosure and Reporting Rules for Publicly Listed
Companies - General Provisions for Financial Reports" (revised in 2023) promulgated by the
China Securities Regulatory Commission (hereinafter referred to as the "CSRC").
（2） Going concern
The group has assessed the capacity to continually operate within 12 months since June 60,
Company’s financial statements are prepared on the basis of going concern assumption.
V. Significant Accounting Policies and Accounting Estimates
The financial statements are prepared in line with the requirements of Accounting Standard
for Business Enterprise, and reflect the relative information of the financial position for the
reporting period ended as of June 30, 2026, operating performance, cash flow of the
Company and the group for the reporting period then ended truly and fully.
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
The group adopts the Gregorian calendar year as accounting period from Jan 1 to Dec 31.
The group sets twelve months for one operating cycle.
The group adopts RMB as functional currency.
The financial statements preparation and disclosure are in line with materiality. For those
matters to be disclosed and need judgement for materiality, materiality criteria set up method
and basis are as follows:
In the notes to
Disclosures involved by the financial Materiality criteria set up method and
materiality judgement statements basis
Significant receivables with Single provision is over 10 million Yuan and
individual provision for bad Note VI.3 represents more than 10% of the total
debts provision
Single provision is over 10 million Yuan and
Collection or reverse of
Note VI.3 represents more than 10% of the total
significant receivables
provision
Single provision is over 10 million Yuan and
Significant receivables written
Note VI.3 represents more than 10% of the total
off
provision
Significant construction in
Note XVI.16 Single project budget over 30 million Yuan
progress
The book value of long-term equity
investment in a single investee accounts for
more than 10% of the group's net assets and
the amount is greater than 100 million Yuan,
Significant JV or associates Note VIII.3
or the gain or loss on investment under the
long-term equity investment equity method
accounts for more than 10% of the group's
consolidated net profit
Subsidiary’s net assets are more than10% of
Significant subsidiary the group asses and its net profit is more than
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
（1）Business combination under the same control
Business combination under the same control is the situation where entities participating the
merger are controlled by the same party or controlled by parties under same ultimate control
before and after merger and the control is not temporary.
The group, as an acquirer, the assets and liabilities that the group obtained in a business
combination under the same control should be measured on the basis of their carrying amount
of the acqiree in the ultimate control party’s consolidated financial statements on the
combining date. As for the balance between the carrying amount of the net assets obtained by
the combining party and the carrying amount of the consideration paid by it, the capital
surplus shall be adjusted. If the capital surplus is not sufficient to be offset, the retained
earnings shall be adjusted.
（2）Business combination not under same control
Business combination not under the same control is the situation where entities participating
the merger are not controlled by the same party or not controlled by parties under same
ultimate control before and after merger.
When the group is an acquirer, for a business combination not under same control, the asset,
liability and contingent liability obtained, shall be measured at the fair value on the
acquisition date. The difference, when combination cost exceeds proportionate share of the
fair value of identifiable net assets of acquire should be recognized as goodwill. If the
combination cost is less than proportionate share of the fair value of identifiable net assets of
acquiree, firstly, fair value of identifiable asset, liability or contingent liability shall be
reviewed, and so the fair value of non-monetary assets or equity instruments issued in the
combination consideration , after review, still the combination cost is less than proportionate
share of the fair value of identifiable net assets of acquire, the difference should be recognized
as non-operating income.
If a business consolidation not under common control is finally achieved in stages, when
preparing the consolidated financial statements, the acquirer shall remeasure its previously
held equity interest in the acquiree at its fair value on acquisition date and recognize the gain
or loss as investment income for the current period. Other comprehensive income, under
equity method accounting rising from the interest held in acquiree in relation to the period
before the acquisition, and changes in the value of its other equity other than net profit or loss,
other comprehensive income and profit appropriation shall be transferred to investment gain
or loss for the period in which the acquisition incurs, excluding the other comprehensive
income from the movement on the remeasurement of ne asset or liability of defined benefit
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
plan.
statements
Consolidation scope is determined on the control basis including the Company and all
subsidiaries controlled by the Company. Control criteria is that the group has the power over
the investees, enjoy the variable return by involving the relative activities of the investees and
also has the impact on the return amount through the power over the investees.
If subsidiaries adopt different accounting policy or have different accounting period from the
parent company, appropriated adjustments shall be made in accordance with the Company
policy in preparation of the consolidated financial statements.
All significant intergroup transactions, outstanding balances and unrealized profit shall be
eliminated in full when preparing the consolidated financial statements. Portion of the
subsidiary’s equity not belonging to the parent, profit, loss for the current period, portion of
other comprehensive income and total comprehensive belonging to minority interest, shall be
presented separately in the consolidated financial statements under “minority interest of
equity”, minority interest of profit and loss”, “other comprehensive income attributed to
minority interest” and “total comprehensive income attributed to minority interest” title.
If a subsidiary is acquired under common control, its operation results and cash flow shall be
consolidated since the beginning of the consolidation period. When preparing the comparative
consolidated financial statements, adjustments shall be made to relevant items of comparative
figures as regarded that reporting entity established through consolidation has been always
existing since the point when the ultimate controlling party starts to have the control.
If a subsidiary is acquired not under common control, its operation results and cash flow shall
be consolidated since the beginning of the consolidation period. In preparation of the
consolidated financial statements, adjustments shall be made to subsidiary’s financial
statements based on the fair value of its all identifiable assets, liability or contingent liability
on the acquisition date.
When the group partially disposes of the long –term equity investment in subsidiary without
losing the control over it, in the consolidated financial statements, the difference, between
disposals price and respective disposed value of share of net assets in the subsidiary since the
acquisition date or combination date, shall be adjusted for capital surplus or share premium,
no enough capital surplus, then adjusted for retained earnings.
When the group partially disposes of the long –term equity investment in subsidiary and lose
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
the control over it, in preparation of consolidated financial statements, remaining share of
interest in the subsidiary shall be remeasured on the date of losing control. Sum of the share
disposal consideration and fair value of remaining portion of shareholding minus the share of
the net assets in the subsidiary held based on the previous shareholding percentage since the
acquisition date or combination date, the balance of above is recognized as investment
gain/loss for the period and goodwill shall be written off accordingly. Other comprehensive
income relevant to share investment in subsidiary shall be transferred to investment gain /loss
for the period on the date of losing control.
When the group partially disposes of the long –term equity investment in subsidiary and lose
the control over it by stages, if all disposing transactions are bundled, each individual
transaction shall be seen as a transaction of disposal of a subsidiary by losing control. The
difference between the disposal price and the share of the net assets in the subsidiary held
before the date of losing control, shall be recognize as other comprehensive income until the
date of losing control where it is transferred into investment gain/ loss for the current period.
If the equity investment in the subsidiary is disposed of by stages through multiple
transactions until the control is lost, and it is not a bundled transaction, each transaction shall
be accounted for separately according to whether the control is lost.
The cash listed on the cash flow statements of the Company refers to cash on hand and bank
deposit. The cash equivalents refer to short-term (normally with original maturities of three
months or less) and liquid investments which are readily convertible to known amounts of
cash and subject to an insignificant risk of changes in value.
（1） Foreign currency transaction
Foreign currency transactions are translated at the spot exchange rate issued by People’s Bank
of China (“PBOC”) on the 1st day of the month when the transactions are accounted initially.
At the balance sheet date, foreign currency monetary items should be converted into reporting
currency at the balance sheet date’s spot exchange rate. Exchange differences should be taken
into the current profits and losses except special foreign currency borrowings for construction
and producing assets which are qualifying for assets capitalization, should be capitalized.
Foreign currency non-monetary items, which are recorded in historical cost, should be still
recorded at the spot exchange rate when the transaction occurred and no change on reporting
currency amount. Foreign currency non-monetary items, which are measured at fair value,
should be recorded in the spot exchange rate at the date measuring the fair value and the
differences should be recognized as profit and loss from fair value changes and included in
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
the current profits and losses. Invested capital in foreign currency shall be converted into
reporting currency at FX rate at when the investment is received, and no foreign exchange
difference arises between capital received and monetary items.
（1） Recognition and derecognition of financial instruments
The group shall recognize a financial asset or a financial liability when becoming party to the
contractual provisions of the instrument.
An entity shall derecognize a financial asset(or a part of it or a group of similar financial asset)
when, and only when: 1) the contractual rights to the cash flows from the financial asset
expire, or 2) the entity transfers contractual rights to receive the cash flows of a financial asset,
or assumes a contractual obligation to pay those cash flows received to the 3rd party in full
amount in time according to the ‘passing-through’ agreement and the entity substantially
transfers all the risks and rewards of ownership of the financial asset in nature, or the entity
neither transfers nor retains substantially all the risks and rewards of ownership of the
financial asset, but the entity has not retained control.
Financial liabilities shall be derecognized if the obligation of the liability is fulfilled,
cancelled or expired. An exchange between an existing borrower and lender of debt
instruments with substantially different terms shall be accounted for as an extinguishment of
the original financial liability and the recognition of a new financial liability. Similarly, a
substantial modification of the terms an existing financial liability shall be accounted for as an
extinguishment of the original financial liability and the recognition of a new financial
liability. The difference between the carrying amount of a financial liability extinguished and
the consideration paid, including any non- cash assets transferred or liabilities assumed, shall
be recognized in profit or loss.
A regular way purchase or sale of financial assets shall be recognized and derecognized, as
applicable, using trade date accounting or settlement date accounting.
（2） Classification and measurement of financial assets
At initial recognition, the group shall classify financial assets as measured at amortized cost,
fair value through other comprehensive income or fair value through profit or loss on the
basis of both the group’s business model for managing the financial assets and the contractual
cash flow characteristics of the financial asset. Only when the business model for managing
the financial assets is changed, the affected financial assets shall be reclassified.
In determining the business model, the group considers, among others, the way in which the
company evaluates and reports the performance of financial assets to key management
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
personnel, the risks affecting the performance of financial assets and the way in which they
are managed, and the way in which the relevant business managers are remunerated. In
assessing whether the objective is to collect contract cash flows, the group needs to make an
analytical judgment on the reasons, timing, frequency and value of the sale of the financial
assets before the maturity date.
In determining the contract cash flow characteristics, the group is required to determine
whether the contract cash flow is only the payment of principal and interest based on the
outstanding principal, (including the assessment of the time value of money correction,
judging any significant difference between it and the baseline cash flow/ for financial assets
containing early repayment characteristics, is required to determine whether the fair value of
early repayment features is very small).
Financial assets are measured at fair value at the initial recognition, but accounts receivable or
notes receivable arising from the sale of goods or provision of services, etc., do not contain a
significant financing component or do not consider the financing component of less than one
year, the initial measurement is based on the transaction price.
For financial assets that are measured at fair value, the related transaction costs are directly
included in current profit or loss, and those costs of other categories of financial assets are
included in their initial recognized amounts.
Financial assets subsequent measurement based on the classification
A financial asset shall be measured at amortized cost if both of the following conditions are
met: ①the financial asset is held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows;②the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding. The financial assets of this category include: monetary fund,
receivable, notes receivable and other receivables.
A financial asset shall be measured at fair value through other comprehensive income if both
of the following conditions are met: ① the financial asset is held within a business model
whose objective is achieved by both collecting contractual cash flows and selling financial
assets and ②the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.
The effective interest rate is applied to interest income. A gain or loss arising from a financial
asset measured at fair value through other comprehensive income, which is not part of
hedging relationship shall be recognized in other comprehensive income apart from interest
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
income, impairment loss and foreign exchange difference. When this type of financial assets
is derecognized, accumulated gain or loss previously in the other comprehensive income shall
be out of it and accounted into retained earnings when the financial asset is derecognized. The
financial assets of this category include: receivable financing.
The group may make an irrevocable election for particular investments in equity instruments
that it would be measured at fair value through other comprehensive income, but once the
election is made, it is irrevocable. The group only recognizes the dividend (apart from the
dividend as investment cost pay back) into profit and loss and fair value movement
subsequently will be recognized into comprehensive income and no need for impairment
provision. When this type of financial assets is derecognized, accumulated gain or loss
previously in the other comprehensive income shall be out of it and accounted into retained
earnings when the financial asset is derecognized. The financial asset of this category is
equity instruments.
Apart from classified as the amortized cost financial assets and as fair value through other
comprehensive income financial assets, a financial asset is classified as fair value through
profit or loss. The group shall subsequently measure this financial asset at its fair value,
except for hedging accounting, any gain or loss on FVTPL shall be accounted into profit and
loss. The financial assets of this category include: tradable financial asset other non-current
financial asset.
A financial asset shall be classified as fair value through profit or loss if it is recognized
contingent consideration through business combination, which is not under same control
situation.
（3） Classification, basis for recognition and measurement of financial liability
Except for the financial guarantee contract, commitments to provide a loan at a below‑market
interest rate and financial liabilities that arise when a transfer of a financial asset does not
qualify for derecognition or when the continuing involvement approach applies, the group
shall initially classify all financial liabilities as it measured at amortized cost or financial
liabilities at fair value through profit or loss. For financial liabilities that are measured at fair
value, the related transaction costs are directly included in current profit or loss, and those
costs of other categories of financial assets are included in their initial recognized amounts.
Financial liabilities subsequent measurement based on the classification
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Effective interest method is applied to financial liabilities as subsequently measured at
amortized cost
Financial liability measured at fair value through profit or loss including tradable financial
liability (derivative instrument of financial liability included) and designated as financial
liability measured at fair value through profit or loss. Tradeable financial liability (including
derivate instrument of financial liability) are subsequently measured at fair value. The net
gain or loss arising from changes in fair value are recorded in profit or loss for the period in
which they are incurred. Financial liability designated as it measured at fair value through
profit or loss shall be subsequently measured at fair value, except for changes in fair value
caused by changes in the group's own credit risk, which are recognized in other
comprehensive income, other changes in fair value are recognized in profit or loss for the
current period; The group recognizes all fair value changes (including the amount affected by
changes in its own credit risk) in profit or loss if the inclusion of changes in fair value
caused by changes in its own credit risk in other comprehensive income would cause or
widen the accounting mismatch in profit or loss for the current period.
（4） Financial instrument impairment
Based on expected credit loss, the group shall apply the impairment requirements for the
followings: ① a financial asset measured at amortized cost; ② debt investment measured
at fair value and changes in fair value is through other comprehensive income; ③ lease
receivable; ④ a contractual asset and financial guarantee contract.
Expected credit loss is the weighted average of credit losses with the respective risks of a
default occurring as the weights. A credit loss herein is referred to as the present value, at
original effective rate, of the difference between the contractual cash flows that are due to the
group under the contract; and the cash flows that the Company expects to receive, that's the
present value of the total cash shortage. The group shall measure expected credit losses of a
financial instrument in a way that reflects: ①an unbiased and probability‑weighted amount
that 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 at
the reporting date about past events, current conditions and forecasts of future economic
conditions.
Expected credit loss of financial instrument is assessed individually and portfolio. The group
assesses the expected credit loss based on the portfolio in accordance with the common
characteristics of credit risk which involves type of financial instrument, credit risk grade, and
age of trade receivables.
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
When assessing expected credit losses, the group considers all reasonable and supportable
information, including that which is forward-looking. In making these judgments and
estimates, the group extrapolates the expected changes in the debtor's credit risk based on
historical repayment data combined with factors such as economic policies, macroeconomic
indicators and industry risks. Different estimates may affect the provision for impairment, and
the provision already made may not equal the actual amount of impairment losses in the
future.
For receivable, notes receivable and contract asset etc., which don’t contain significant
financing component and arise from sales of products and service provision, the group adopts
simplified method to account expected credit loss provision at an amount equal to the whole
lifetime expected credit losses.
For lease premium receivable, trade receivable containing significant financing component,
and contract asset, the group adopts simplified method to account expected credit loss
provision at an amount equal to the whole lifetime expected credit losses.
The group determines the expected credit loss of trade receivable on the basis of portfolios
with common characteristics of credit risk, which are considered by expected credit loss
measurement reflection, by reference to historical experience of credit loss and by
comparison of receivable past due days/ receivable age with default risk rate, unless the single
credit loss is separately recognized for contractual payments that is significant in amount and
credit impaired. If certain client is significant different from others in terms of credit risk
characteristics, or the client’s credit risk has significantly increased, such as experiencing
severe finance difficulty, its expected credit loss is obviously higher than it to be at
accounting age, the group will make separate credit loss provision for this client’s receivable.
① Portfolio category and recognition basis of receivable ( contract asset)
The group classifies accounts receivable (and contract assets) according to the similarity and
relevance of credit risk characteristics based on information such as age, nature of payments,
credit risk exposure, historical debt collection, etc. For accounts receivable (and contract
assets), the group determines that aging is the primary factor affecting its credit risk and
therefore, the group assesses its expected credit losses on the basis of aging portfolios. The
group calculates the overdue age based on the payment date agreed in the contract.
No expected credit loss is recognized for receivables from related party within consolidated
scope as the group assesses its credit risk is relatively low.
② Portfolio category and recognition basis of notes receivable
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Portfolio category Expected credit loss accounting estimate policy
Lower credit risk assessed by the management, no
Bank acceptance note portfolio
expected credit loss recognition
Commercial acceptance note Same as receivables portfolio and provided for excepted
portfolio credit loss allowance based on expected credit loss rate
and financial guarantee contracts
With the exception of financial assets (such as debt investments, other debt investments), loan
commitments and financial guarantee contracts for which the simplified measurement method
is adopted above, the group adopts the general method (three-stage method) for the provision
of expected credit losses. At each balance sheet date, the group assesses whether its credit risk
has increased significantly since the initial recognition, and if the credit risk has not increased
significantly since the initial recognition, in the first stage, the group measures the loss
provision at an amount equivalent to the expected credit loss over the next 12 months and
calculates interest income based on the carrying balance and effective interest rate; If the
credit risk has increased significantly since the initial recognition but no credit impairment
has occurred, in the second stage, the group measures the loss provision at an amount
equivalent to the expected credit loss over the entire duration and calculates interest income
based on the carrying balance and effective interest rate; If credit impairment occurs after
initial recognition, in the third stage, the group measures the loss provision at an amount
equivalent to the expected credit loss over the entire duration and calculates interest income at
amortized costs and effective interest rates. For financial instruments with only low credit risk
at the balance sheet date, the group assumes that their credit risk has not increased
significantly since initial recognition
The whole life expected credit loss refers to the expected credit loss caused by all possible
default events during the whole expected life of the financial instrument. Expected credit
losses over the next 12 months are expected credit losses resulting from defaults on financial
instruments that may occur within 12 months after the balance sheet date (or if the expected
duration of the financial instrument is less than 12 months) and are part of the overall
expected credit losses over the life of the financial instrument.
Criteria of significant increase in credit risk and definition of credit impaired assets are
disclosed on Note X.1
（5） Recognition and measurement of transfer of financial assets
A financial asset is derecognized when the financial asset has been transferred together with
substantial all risks and rewards to the transferee. A financial asset can not be derecognized
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
when the substantial all risks and rewards to the financial asset has been retained. When the
all risks and rewards of the financial asset are neither transferred nor retained, but the group
has given up its control of the financial asset, the financial asset shall be derecognized and
recognize the asset and liability originated. Where control of the financial asset is not
relinquished, the relevant financial asset shall be recognized according to the extent to which
it continues to be involved in the transferred financial asset, and the relevant liability shall be
recognized accordingly.
In the case where the financial asset as a whole qualifies for the derecognition conditions, the
difference between the carrying value of transferred financial asset at the derecognition date
and the sum of the consideration received for transfer and the accumulated amount of changes
in fair value in respect of the amount of partial derecognition ( financial assets involved in
transfer must qualify the following conditions: ① the financial asset is held within a
business model whose objective is not only for collecting contractual cash flows but also for
sale; ②the contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest based on the principal amount outstanding) ,
that was previously recorded under other comprehensive income is transferred into profit or
loss for the period.
In the case where only part of the financial asset qualifies for derecognition, the carrying
amount of financial asset being transferred is allocated between the portions that to be
derecognized and the portion that continued to be recognized according to their relative fair
value. The difference between the amount of consideration received for the transfer and the
accumulated amount of changes in fair value that was previously recorded in other
comprehensive income for the asset partially qualified for derecognition (financial assets
involved in transfer must qualify the following conditions: ① the financial asset is held
within a business model whose objective is not only for collecting contractual cash flows but
also for sale; ; ②the contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest based on the principal amount
outstanding ) and the above-mentioned allocated carrying amount is charged to profit or loss
for the period.
Where the assets continue to be involved by providing financial guarantees for the transferred
financial assets, the assets that continue to be involved in the same form are recognized at the
lower of the carrying value of the financial assets and the amount of the financial guarantees.
Financial guarantee amount means the maximum amount of consideration received that will
be required to be repaid.
（6） Distinguish between financial liability and equity instrument and accounting
Financial liability and equity instrument shall be distinguished in accordance with the
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
following standards: ① if the group cannot unconditionally avoid paying cash or financial
asset to fulfil a contractual obligation, the contractual obligation is qualified or financial
liability. For certain financial instrument, although there are no clear terms and conditions to
include obligation of paying cash or other financial liability, contractual obligation may
indirectly be formed through other terms and conditions. ② the group’s own equity
instrument shall also be considered whether it is the substitute of cash, financial asset or it is
the remaining equity, after the issuer deducts liability, enjoyed by the equity holder , if it must
or can be used to settle a financial asset. If the former, the instrument is a financial liability of
the issuer, otherwise it is an equity instrument of the issuer. In certain circumstances, financial
instrument contract is classified as financial liability, if financial instrument contract specifies
the Company must or can use its own equity to settle the financial instrument, the contractual
amount of right or obligation equals to that of the numbers of own equity instrument available
or to be paid multiplied by fair value when settling, nevertheless the amount is fixed, or
varied partially or fully based on the its own equity’s market price(such as interest rate,
certain commodity’s or financial instrument’s price variance).
When classifying a financial instrument (or its component) in the consolidated statements, the
group takes all terms and conditions agreed by the its member and instrument holder into
consideration. If the group because of the instrument, as a whole, bears settlement obligation
by paying cash, other financial asset or other means resulted in financial liability, the
instrument shall be classified as financial liability.
（7） Derivative financial instrument
The group uses derivative financial instruments such as foreign exchange forward contracts,
commodity forward contracts and interest rate swaps to hedge exchange rate risk, commodity
price risk and interest rate risk respectively. Derivative financial instruments are initially
measured at their fair value on the date the derivative transaction contract is signed, and are
subsequently measured at their fair value. A derivative instrument with a positive fair value is
recognized as an asset and a negative fair value is recognized as a liability.
Except hedging accounting, all gain or loss from the FV movement of derivative instrument
shall be recognized in the income statement.
（8） Financial asset and financial liability offset
Financial asset and financial liability shall be presented in the balance sheet separately and
cannot be offset, unless the following conditions are all met: ①the Company has the legal
right to recognized offset amount and the right is enforceable. ② the Company plans to
receive or a legal obligation to pay cash at net amount.
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Inventories are raw material, low-valuable consumable, goods on transit, working-in-progress,
finished goods, and cost to fulfil the contract etc.
The inventories are processed on perpetual inventory system, and are measured at their actual
cost on acquisition. Weighted average cost method is taken for measuring the inventory
dispatched or used. Low value consumables and packaging materials is recognized in the
income statement by one-off method.
At the balance sheet date, inventory is measured at the lower of cost and net realizable value.
If the cost of the inventory is higher than its net realizable value, a provision is made for the
decline in the price of the inventory and it is accounted in the current profit or loss. Net
realizable value is the amount of the estimated selling price of inventory in daily activities
less the estimated costs to be incurred at completion, estimated selling expenses and related
taxes.
Impairment provision for the group's raw materials/goods in stock/WIP/ cost to fulfil the
contract is made on an individual inventory item, and when determining its net realizable
value, the inventory of goods in stock and materials used for sale are determined at the
estimated selling price of the inventory less estimated selling expenses and related taxes;
Inventory of materials held for use in production is determined at the estimated selling price
of the finished goods produced less the estimated costs to be incurred up to completion,
estimated selling expenses.
(1) Contract asset
Contract asset is an entity’s right to consideration in exchange for goods or services that the
entity has transferred to a customer when that right is conditioned on something other than the
passage of time. For example, the group sold two goods that can be clearly distinguished to
the client, then the group has the right to consideration in exchange of the goods because one
of the goods are delivered, but the consideration’s collection is conditioned on the other
goods delivery, in this case, the right to consideration shall be recognized as contract asset.
Expected credit loss recognition of contract asset is referred to the Note III、10 Provision for
impairment of financial assets.
(2) Contract liability
An entity’s obligation to transfer goods or services to a customer for which the entity has
received consideration (or the amount is due) from the customer. If a customer pays
consideration, or the group has a right to an amount of consideration that is unconditional
before the group transfers a good or service to the customer, the group shall present the
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
contract as a contract liability when the payment is made or the payment is due (whichever is
earlier).
(1) Assets recognition methods in relation to contract cost
Assets relevant to contract cost in the group include cost to fulfill the contract and cost to
obtain a contract. Cost to fulfill the contract is presented under inventory and other
non-current assets. Cost to obtain a contract is presented under other current assets and other
non-current assets.
If the costs incurred in fulfilling a contract with a customer are not within the scope of
another Standard such as inventory , fixed assets or intangible assets , an entity shall
recognize an asset from the costs incurred to fulfill a contract only if those costs meet all of
the following criteria: the costs relate directly to a contract or to an anticipated contract,
including direct labor, direct materials and overheads which is clearly stated to be borne by
the client and any other cost in line with the contract; the costs enhance resources of the group
that will be used in performance obligations in the future; and the costs are expected to be
recovered.
An asset as the incremental costs of obtaining a contract with a customer shall be recognized
if the group expects to recover those costs. The group may recognize the incremental costs of
obtaining a contract as an expense when incurred if the amortization period of the asset t is
one year or less. The incremental costs of obtaining a contract are those costs that the group
incurs to obtain a contract with a customer that it would not have incurred if the contract had
not been obtained (for example, a sales commission). Other expenses incurred in order to
obtain a contract rather than the incremental cost, and expected to be recovered (regardless of
whether the contract is obtained such as travelling expenses) shall be recognized as an
expense when incurred, unless those costs are explicitly chargeable to the customer.
(2) Amortization of asset relevant to contract cost
An asset recognized in accordance with contract cost shall be amortized on a systematic basis
that is consistent with the transfer to the customer of the goods or services to which the asset
relates.
(3) Impairment of asset relevant to contract cost
If the carrying value of the group's assets related to the contract cost is higher than the
following two differences, the group will make the impairment provision for the excessive
part and recognize the asset impairment loss: ① The remaining consideration that the group
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
is expected to obtain due to the transfer of the commodities related to the asset; ② Estimate
the costs to be incurred for the transfer of the relevant goods
Long term equity investments are the equity investment in subsidiary, in associated company
and in joint venture.
(1) Judgement on control, joint control and significant influence
Equity investments in which the group has a significant impact on the investee are
investments in associates.
Significant influence refers to having the power to participate in the decision-making of the
financial and operational policies of the investee, but not being able to control or jointly
control the formulation of these policies with other parties. Significant influence exists when
the entity directly or indirectly owned 20% or more but less than 50% voting shares in the
investee, unless there is explicit evidence that the company cannot participate in the
production and operation decisions of the investee or have control over the investee.
When having less than 20% voting shares, the group’s significant influence still exists if the
followings are taken into accounts: representation on the board of directors or equivalent
governing body of the investee, participation in financial or operating activities
policy-making processes, material transactions between the investor and the investee,
interchange of managerial personnel or provision of essential technical information etc.
The group’s joint venture investment is an equity investment whereby the parties have jointly
control over it and have rights to the net assets of the investee. Joint control is the
contractually agreed sharing of control of an arrangement, which exists only when decisions
about the relevant activities require the unanimous consent of the parties sharing control. The
group’s judgement on joint control is based on the joint arrangement that all participants or
combinations of participants collectively control the arrangement and that decisions relating
to the activities of the arrangement must be made with the unanimous consent of those
participants who collectively control the arrangement.
(2) Accounting
The group initially measures the long-term investment in line with the initial cost for
acquiring the investment.
The initial investment cost for long-term equity investment acquired through business
combination under common control, is the carrying amount presented in the consolidated
financial statements of the share of net assets at the combination date in the acquired
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
company. If the carrying amount of net assets at the combination date in the acquired
company is negative, investment shall be recognized at zero.
If long-term equity investment is acquired through business combination not under common
control, initial investment cost shall be the combination cost. If the equity investment of
investee not under common control is acquired by stages and it’s not a bundled transaction,
the carrying amount of the equity investment held previously plus newly increased investment
cost are taken as the initial investment cost.
Apart from the long-term equity investments acquired through business combination, the cost
of investment for the long-term equity investments acquired by cash payment is the amount of
cash paid, relevant direct expense, tax and other necessary expenses for the investment. For
long-term equity investment acquired by issuing equity instruments, the cost of investment is
the fair value of the equity instrument issued.
The Company adopts cost model for investment in subsidiary on separate financial statement.
Under cost model, the long-term equity investment is measured at initial investment cost.
When more investment is added, it shall increase the carrying amount of investment by
adjusting the fair value of additional investment and relevant transaction expenses. Cash
dividend or profit declared by investee shall be recognized as investment gain/loss for the
period based on the proportion share in the investee.
The Company adopts equity method for investment in joint venture and affiliate. Under
equity method, if the initial investment cost is greater than the share of fair value of the
identifiable net assets in the investee, the initial investment cost of long-term equity
investment is no need to be adjusted; If the initial investment cost is less than the share of fair
value of the identifiable net assets in the investee , the difference shall be recorded into the
current profit and loss, and the cost of long-term equity investment shall be adjusted at the
same time.
Long-term equity investment subsequently, under equity method, shall be adjusted for it
carrying amount according to the share of equity increase or decrease in the investee. The
Company shall recognize its share of the investee’s net gain or losses after the investee’s net
profit adjustment, based on the fair value of the investee’s individual identifiable assets at
the acquisition date, after making appropriate adjustments thereto in conformity with the
accounting policies and accounting period, and offsetting the unrealized profit or loss from
the inter-group transactions, not constituting the business, between the entity and its
associates and joint ventures according to the shareholding attributable to the group (full
amount of loss shall be recognized if the inter-group transaction is impairment loss). The
group recognizes net losses incurred by investee to the extent that the carrying value of
long-term equity investments and other long-term interests substantially constituting net
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
investments in investee are written down to zero, except where the group is obliged to bear
additional losses.
The difference between the book value of long-term equity investment and actual acquisition
cost shall be recognized in the gain or loss of investment when the long-term equity
investment is disposed of.
For long-term investments accounted under equity method, other comprehensive income
recorded shall be accounted on the same basis as the investee directly disposing of related
assets or liability when equity method is not used any longer. The movements of
shareholder’s equity, other than the net profit or loss, other comprehensive income and profit
distribution previously recorded in the shareholder’s equity of the Company are recycled to
investment income for the period on disposal.
If the remaining equity after the partially disposal is still accounted for under the equity
method, the relevant other comprehensive income previously recognized under the equity
method, is treated on the same basis as the direct disposal of the relevant assets or liabilities
by the investee and is carried forward on a proportional basis, and the owner's equity, which
is apart from net profit and loss, other comprehensive income and profit distribution of the
investee, shall be recognized and proportionally transfers to current investment income.
Where the entity has no longer joint control or significant influence in the investee company
as a result of partially disposal of the investment, the remaining investment will be accounted
for in line with the Recognition and Measurement of Financial Instruments Standard -No 22
of Accounting Standards for Business Enterprises(No7 Caikuai [2017]), and the difference
between the fair value of remaining investment at the date of losing joint control or
significant influence and its carrying amount shall be recognized in the profit or loss for the
year.
Where the entity has no longer control over the investee company as a result of partially
disposal of the investment, the remaining investment will be changed to be accounted for
using equity method providing remaining joint control or significant influence over the
investee company. The difference between carrying amount of disposed investment and
consideration received actually shall be recognized as investment gain or loss for the period,
and investment shall be adjusted accordingly as if it was accounted for under equity model
since acquisition. Where the entity has on longer joint control or significant influence in the
investee as a result of disposal, the investment shall be accounted for in accordance with the
Recognition and Measurement of Financial Instruments Standard -No 22 of Accounting
Standards for Business Enterprises(No7 Caikuai [2017]), and difference between the carrying
amount and disposal consideration shall be recognized as investment gain or loss for the
period, and the difference between the fair value of remaining investment at the date of losing
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
control and its carrying amount shall be recognized in the profit or loss for the year.
Investment property is held to earn rentals or for capital appreciation or both and includes
property, building and use right of land. They are measured at cost model.
Investment property is depreciated or amortized on straight line basis and its expected useful
life, net residual value rate and annual depreciation rate is as follows:
Useful life Estimated net residual value rate Annual depreciation rate
Category
(years) (%) (%)
Use right of land 50 0 2
Property and Buildings 40 3/10 2.25-2.43
Recognition criteria of fixed assets: defined as the tangible assets which are held for the
purpose of producing goods, rendering services, leasing or for operation & management, and
have more than one year of useful life.
Fixed assets shall be recognized when the economic benefit probably flows into the group and
its cost can be measured reliably. Fixed assets include: building, machinery, transportation
equipment, electronic equipment and others.
All fixed assets shall be depreciated unless the fixed assets had been fully depreciated and are
still being used and land is separately measured. Straight-line depreciation method is adopted
by the group. Estimated net residual value rate, useful life, depreciation rate as follows:
Useful life Estimated net residual Annual depreciation
No Category
(years) value rate (%) rate (%)
The group should review the estimated useful life, estimated net residual value and
depreciation method at the end of each year. If any change has occurred, it shall be regarded
as a change in the accounting estimates.
The cost of construction in progress is determined according to the actual construction
expenditure, including the necessary construction expenditure incurred during the
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
construction period, the capitalized borrowing cost and other related expenses before the
construction reaches the condition expected for use.
Constructions in progress are transferred to fixed assets based on the construction budget and
actual costs on the date when completing and achieving estimated usable status, and the fixed
assets should be depreciated in the next month. Adjustment will be made upon confirmation
of their actual values after implementing the completion and settlement procedures.
The construction in progress shall be transferred to fixed assets when it reaches the expected
usable state, and the criteria are as follows:
Items Criteria of transferring to FA
Property and Buildings Earlier of actual starting of use and completion of inspection
Machinery equipment Earlier of actual starting of use and completion of installation / inspection
The group’s intangible assets include use right of land, patents, non-patented technologies and
others. They are measured at actual cost at acquisition day. For acquired assets, the actual cost
is measured at actual price paid and relevant other expenses. Invested intangible asset shall be
measured at actual cost as contracted or agreed value, however fair value will be taken if the
contracted or agreed value is not fair.
(1) Useful life and the basis for recognition, estimation, amortization method or review
procedure
Use right of land shall be amortized evenly within the amortization period since the remised
date. Patents, technologies and other intangible assets are amortized over the shortest of their
estimated useful life, contractual beneficial period and useful life specified in the law.
Amortization charge is included in the cost of assets or expenses, as appropriate, for the
period according to the usage of the assets. At the end of the year, for definite life of
intangible assets, their estimated useful life and amortization method shall be assessed. Any
change shall be treated as change on accounting estimate.
(2) The scope and accounting of research and development
The group separates the expenditure on internal research and development projects into
research phase expenditure and development phase expenditure. At research phase,
expenditure are expenses directly relevant to research activity, including R&D employee’s
salary, materials, depreciation, technology cooperation cost and assessment testing fees. At
development phase, expenses can be capitalized only when meeting the following conditions:
(a)the technical feasibility of completing the intangible asset so that it will be available for
use or sale.
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
(b)its intention to complete the intangible asset and use or sell it.
(c)how the intangible asset will generate probable future economic benefits. Among other
things, the entity can demonstrate the existence of a market for the output of the intangible
asset or the intangible asset itself or, if it is to be used internally, the usefulness of the
intangible asset.
(d)the availability of adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset.
(e)its ability to measure reliably the expenditure attributable to the intangible asset during its
development.
Any expenditure not qualifying for the above conditions shall be accounted into profit and
loss account.
The projects expenditure will go to the development stage and start to be capitalized after
meeting the above conditions, and passing the technical feasibility and economic feasibility
studies, and being approved after evaluation.
The group assesses whether there is any indication that long-term equity investment,
investment property under cost model, fixed assets, construction in progress, right-of-use
asset and intangible assets with definite useful life may be impaired. If there is any indication
that an asset may be impaired, the asset will be tested for impairment. Goodwill and
intangible asset with infinite useful life and development cost not reaching available for use
status, are tested for impairment annually no matter there is any indication of impairment or
not.
(1) Non-current asset impairment excluding financial asset (expect goodwill)
When testing the impairment, the group recognized the recoverable amount of an asset, which
the higher of its fair value less costs to sell and the present value of the future cash flows
expected to be derived from the asset. After impairment test, any difference of carrying
amount over its recoverable amount shall be recognized as impairment loss.
The group estimates recoverable amount based on an individual asset. If it is not possible to
estimate the recoverable amount of an individual asset, the recoverable amount is determined
on the basis of the asset groups or asset portfolio to which the asset belongs. Asset portfolio is
determined based on whether the major cash inflow generated by the asset group is
independent from the cash inflow of other assets or the asset portfolio.
Net amount which FV less disposal cost is reference to the agreed sale price or observable
market price for similar asset within the arm length transaction. When estimating the present
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
value of future cash flows, management must estimate the expected future cash flows of the
asset or group of assets and select an appropriate discount rate to determine the present value
of future cash flows.
(2) Goodwill impairment
The group allocates the carrying value of the goodwill generated from the business
combination to the relevant asset group or to the relevant asset group combination which is
difficult to allocate to the relevant asset group，in a reasonable way from the date of purchase.
When conducting impairment tests on goodwill contained within the related asset group or
asset group combination, if there are signs of impairment in the asset group or asset group
combination related to goodwill, the impairment test shall firstly be conducted on the asset
group or asset group combination excluding goodwill, and the recoverable amount shall be
calculated and compared with the relevant carrying value so to recognize the corresponding
impairment loss; Then, an impairment test is conducted on the asset group or asset group
combination containing goodwill to compare the carrying value with the recoverable amount.
If the recoverable amount is lower than the carrying value, the impairment loss amount is first
offset against the carrying value of goodwill allocated to the asset group or asset group
combination, and then offset the carrying value of the asset group and asset group
combination based on the proportion of the carrying value of other assets in the asset group or
asset group combination without goodwill.
The methodology, parameters and assumptions of the goodwill impairment test are referred in
Notes VI.19.
Once the impairment loss on the assets is recognized, it can not be reversed in a subsequent
period.
The group's long-term prepaid expense refers to landscape fees, renovation &decoration
expenses and other expenses paid and should be allocated over 1year.It will be amortized
evenly within its beneficial period. The remaining unamortized expense should be charged
into income statement if long-term prepaid expense can not bring the beneficial inflows.
Landscape fees will be amortized for 10 years and renovation& decoration fees will be
amortized for 5-10 years.
Employee’s benefit comprises short-term benefit, post-employment benefit, termination
benefit and other long-term employee’s benefit.
Short-term benefit includes salary, bonus, allowance, welfare, social insurance, housing funds,
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
labor union expense, staff training expense, during the period in which the service rendered
by the employees, the actually incurred short term employee benefits shall be recognized as
liability and shall be recognized in P&L or related cost of assets based on benefit objective
allocated from the service rendered by employees.
Post-employment benefits include the basic pension scheme and unemployment insurance etc.
Based on the risk and obligation borne by the Company, post-employment benefits are
classified into defined contribution plan and defined benefit plan. For defined contribution
plan, liability shall be recognized based on the contributed amount made by the Company to
separate entity at the balance sheet date in exchange of employee service for the period and it
shall be recorded into current profit and loss account or relevant cost of assets in accordance
with beneficial objective.
Other long-term employee’s benefit refers to all other employee benefits other than short-term
benefit, post-employment benefit and termination benefit.
When the Company has transactions such as commitment to externals, discounting the trade
acceptance note, unsettled litigation or arbitration which meets the following criterion,
provision should be recognized: It is the Company's present obligation; carrying out the
obligation will probably cause the Company's economic benefit outflow; the obligation can
be reliably measured.
Provision is originally measured on the best estimate of outflow for paying off the present
obligations. When determining the best estimate, need to consider the risk, uncertainty, time
value of monetary relevant to contingent items. The group needs to review the present best
estimate and accordingly adjust the carrying value of the provision account.
The group recognizes revenue when it has fulfilled its contractual performance obligations, i.e.
when the customer has obtained control of the relevant goods or services. Control right of
goods or services refers to the ability to direct the use of, and obtain substantially all of the
remaining benefits from, the asset.
If the contract between the group and the customer meets the following five conditions at the
same time, the group has fulfilled the performance obligation when the customer obtains the
control of the relevant goods or services, and the revenue is recognized:
obligations;
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
commodities;
the company's future cash flow risk, time distribution or amount;
customer is likely to be recovered.
When the group transfers control of a good or service over time, it satisfies a performance
obligation and recognizes revenue over time only if one of the following criteria is met,
otherwise it shall be the performance obligation at a point in time.
performance as the entity performs
that the customer controls as the asset is created or enhanced
the entity has an enforceable right to payment for performance completed to date
(1) Revenue policy from sales
The group’s revenue mainly includes income from sale of goods and installation of the whole
set of refrigeration engineering project.
Based on the actual situation, the group recognizes the revenue as the followings；
obligation of transferring goods. The group recognizes the revenue at the time when the
arrival acceptance is completed by customers, having taken all followings into consideration:
present debt collection right entitled to the sales of goods, the transfer of the main risks and
rewards in the ownership of the goods, the transfer of the legal ownership entitled to the
goods, the transfer of physical assets, the acceptance of goods by customers.
declaration and export procedures.
Revenue from installation of the whole set of refrigeration engineering project. In the
refrigeration installation contract between the group and the customer, since the equipment
sales and installation services cannot be distinguished separately, the entire project contract is
regarded as a single performance obligation, and the revenue of the single performance
obligation is recognized at the completion of the customer acceptance. when a performance
obligation over time is satisfied, revenue shall be recognized within the contract term
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
according to the performance progress, which is determined by the percentage of the
cumulative actual cost to expected total contract cost. When the performance progress can not
be estimated reasonably, the group recognizes the revenue to the extent where the already
incurred cost can be compensated until the performance progress can be decided.
(2) Determining and allocating the transaction price
If the contract includes two or more performance obligations, at the inception date of contract,
the group shall allocate the transaction price to each performance obligation identified in the
contract on a relative standalone selling price ratio basis and measure the revenue at the
allocated transaction price to each performance. If any solid evidence indicates that contract
discount is only relevant to one or some (not all) performance obligations, the discount shall
be allocated into the one or these performance obligations.
An amount of consideration can vary because of cash discounts, price guarantee. The group
determines the best estimate of the variable consideration in line with the expectation or the
amount that most probably incurred, but includes, in the transaction price, the variable
consideration not exceeding the amount that is highly unlikely to result in a material reversal
of cumulative revenue recognized when the relevant uncertainty is eliminated.
The group accounts for consideration payable to a customer as a reduction of the transaction
price and, therefore, of revenue unless the payment to the customer is in exchange for a
distinct good or service. Accordingly, the revenue shall be recognized at the later of the
revenue recognition and the consideration paid to a customer.
For sales with a right of return, the group recognizes the revenue for the consideration
expected to have the right to receive arising from transferring the goods to customers when
the customer receives the control right over the relevant goods, and recognizes the expected
refund amount as provision. At the same time, receivable of return cost, as an asset, shall be
recognized for the carrying value of the returned goods when it is expected to be transferred
less expected cost for getting it back (including decline in value) and net amount of the above
asset cost shall be carried over to the cost. At every balance sheet date, the group will reassess
the future sales returns and remeasure the above assets and liabilities.
Where a significant financing component exists in the contract, the transaction price shall be
measured at the assumed price that the payment is made by cash when the client receives the
control right of goods or services. The difference between the promised consideration and the
determined transaction price shall be amortized within the contract period using effective
interest rate, and it is the discounting rate at which the dominated price of the contract
consideration is discounted to the cash price.
According to the agreement or the regulation etc., the group provide warranty for the goods
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
sold and it is the quality assurance for promising the goods are in commodity with the agreed
standards and shall be accounted for as Note III、22 provision.
Government grant shall be recognized only when all attached conditions are met and the grant
is possibly received. Where a government grant is in the form of a transfer of monetary asset,
it is measured at the amount received. Where a government grant is made on the basis of
fixed amount or conclusive evidence indicates relevant conditions for financial support are
met and expect to probably receive the fund, it is measured at the amount receivable. Where a
government grant is in the form of a transfer of non-monetary asset, it is measured at fair
value. If fair value cannot be determined reliably, it is measured at a nominal amount of
RMB1 Yuan.
Assets-related government grant is the government fund obtained by the group for the
purpose of long-term assets purchase and construction or establishment in the other forms.
Income-related grants are the grant given by the government apart from the assets-related
grants. If no grant objective indicated clearly in the government documents, the group shall
judge it according to the principle mentioned above. If the grant is difficult to be separated, it
shall be considered as income-related grant as a whole.
Assets-related government grants are recognized as deferred income, which shall be evenly
amortized to profit or loss over the useful life of the related asset. Any assets are sold,
transferred, disposed of or impaired earlier than their useful life expired date, the remaining
balance of deferred income which hasn’t been allocated shall be carried forward to the
income statement when the assets are disposed of.
Income-related government grants that is a compensation for related expenses or losses to be
incurred in subsequent periods are recognized as deferred income and credited to the relevant
period when the related expenses are incurred. Government grants relating to compensation
for related expenses or losses already incurred are charged directly to the profit or loss for the
period. Government grants related to daily business, shall be recognized as other income in
accordance with business nature or offsetting related expenses, otherwise, shall be recognized
as non-operating income or expenses.
The deferred income tax assets or the deferred income tax liabilities should be recognized
according to the differences (temporary difference) between the carrying amount of the assets
or liabilities and its tax base and the difference between the carrying amount of tax base item
and its tax base.
Deferred tax liability shall be recognized for all taxable temporary difference apart from the
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
followings : (1) temporary differences arise from the initial recognition of goodwill or the
initial recognition of assets or liabilities arising from non-business combinations that do not
affect accounting profits or taxable income (or deductible losses); (2) The group is able to
control the timing of the reversal of taxable temporary differences related to investments in
subsidiaries, associates, and joint ventures, and such temporary differences are likely not to be
reversed in the foreseeable future.
The group recognizes deferred income tax assets for deductible temporary differences,
deductible losses, and tax deductions that are likely to be obtained to offset future taxable
income, except for the following situations: (1) the initial recognition of assets or liabilities
arising from non-business combination transactions where temporary differences do not affect
accounting profits or taxable income (or deductible losses); (2) Deductible temporary
differences related to investments in subsidiaries, associates, and joint ventures that cannot
simultaneously meet the following conditions: temporary differences are likely to be reversed
in the foreseeable future, and taxable income is likely to be obtained in the future to offset
deductible temporary differences.
The group recognizes deferred income tax assets for all unused deductible losses to the extent
that there is likely to be sufficient taxable income to offset the deductible losses. The
management uses plenty of judgment to estimate the timing and amount of future taxable
income, combined with tax planning strategies, to determine the amount of deferred income
tax assets, which results in uncertainty.
On the balance sheet date, deferred income tax assets and deferred income tax liabilities are
measured at the applicable tax rate during the expected period of asset recovery or liability
settlement.
When the following conditions are met simultaneously, the group shall present the deferred
income tax assets and deferred income tax liabilities at the net amount after offsetting: The
group has the legal right to settle the current income tax assets and deferred income tax
liabilities at the net amount; Deferred income tax assets and deferred income tax liabilities are
related to the income tax levied by the same tax collection and management authority on the
same taxpayer or on different taxpayers. However, in the future, within the term when each
significant deferred income tax asset and deferred income tax liability to be reversed, the
involved taxpayers intend to settle the current income tax assets and liabilities on a net basis
or acquire assets and settle debts simultaneously.
(1) Lease identification
Lease: A contract, or part of a contract, that conveys the right to use an asset (the underlying
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
asset) for a period of time in exchange for consideration.
At inception of a contract, the group shall assess whether the contract is, or contains, a lease.
A contract is, or contains, a lease if the contract conveys the right to control the use of an or
many identified assets for a period of time in exchange for consideration.
For a contract that is, or contains several leases, the group shall separate the contract and
account each lease separately. The group shall account for each lease component separately
from non-lease components of the contract if the contract contains lease and non-lease
components. Each leasing part is accounted for according to the leasing standards, while the
non-leasing part is accounted for according to other applicable accounting standards. If the
contract includes both leasing and non-leasing parts, the group, as the lessor, will split the
leasing and non-leasing parts and conduct accounting treatment separately. Each leasing part
will be accounted for according to the leasing standards, while the non-leasing part will be
accounted for according to other applicable accounting standards. As the lessee, the group
chooses not to separate the lease and non-lease, and joins each leased part and its non- leased
parts separately into a lease, accounting treatment shall be carried out in accordance with
leasing standards; However, if the contract includes embedded derivative instruments that
should be split, the group will not merge them with the leasing portion for accounting
treatment.
(2) As a leasee
At the commencement date, the group as a lessee shall recognize a right-of-use asset and a
lease obligation except short-term lease and low value asset lease.
Right-of-use assets represents a lessee’s right to use an underlying asset for the lease term,
and is initially measured at cost.
The cost of the right-of-use asset shall comprise:
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 incentives
received, 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 to
the condition required by the terms and conditions of the lease, unless those costs are incurred
to produce inventories. Where the group remeasures the lease liability in accordance with the
relevant provisions of the leasing standard, the carrying value of right-of-use asset is adjusted
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
accordingly.
The group shall follow the following principles when determining the depreciation life of the
right-of-use asset: if the ownership of the leased asset can be reasonably determined at the
end of the lease term, depreciation shall be calculated and deducted during the remaining
service life of the leased asset; Where it is not certain that the ownership of the leased asset
can be acquired at the end of the lease term, depreciation shall be calculated at the shorter of
the lease term and the remaining service life of the leased asset. The depreciation amount
shall be accounted into cost of assets or profit and loss account.
At the commencement date, a lessee shall measure the lease liability at the present value of
the lease payments that are not paid at that date.
The lease payments included in the measurement of the lease liability comprise the following
payments for the right to use the underlying asset during the lease term that are not paid at the
commencement date: ① fixed payments (including in-substance fixed payments) less any
lease 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 price
of a purchase option if the lessee is reasonably certain to exercise that option; ④ payments
of penalties for terminating the lease, if the lessee will certainly exercise an option to
terminate the lease during the lease term; ⑤ amounts expected to be payable by the lessee
under residual value guarantees.
When calculating the present value of the lease payments, interest rate implicit in the lease
shall be used. If the rate cannot be readily determined, the group shall use the lessee’s
incremental borrowing rate. Interest on the lease liability in each period during the lease term
shall be calculated based on a constant periodic rate of interest, and be recognized as in profit
or loss unless its capitalization.
After the lease commencement date, the group increases the carrying amount of lease liability
when recognizing the interest on lease liability and; decreases the carrying amount of lease
liability when making lease payment. The group remeasures the lease liability in accordance
with the present value of revised lease payment, when the followings incur: ① change of
in-substance fixed payments (subject to original discounting rate) ② change of amounts
expected 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 discounting
rate) ④ change in assessment of a buy option(subject to revised discounting rate) ⑤
change in assessment of a renew option or termination option or actual situation(subject to
revised discounting rate).
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
The group has chosen not to recognize the right-of-use asset and lease liability for short-term
lease (lease term less than 12 months) and low value asset (30,000 Yuan) when it is single
leased new asset. In this case, lease payment will be accounted directly in profit or loss or on
the straight-line basis in profit or loss.
The group, as a seller and a lease within the sales and lease back transaction, assesses whether
the transfer of the asset is a sale. If the transfer of assets is not a sale, the group shall continue
to recognize the transferred assets and at the same time recognize a financial liability equal to
the transfer income (Note VI. 34 lease). If the transfer of assets is a sale, the group shall
measure the right-of-use asset arising from the leaseback at the proportion of the previous
carrying amount of the asset that relates to the right of use retained by the group. Accordingly,
the group shall recognize only the amount of any gain or loss that relates to the rights
transferred to the buyer-lessor.
(3) As a lessor
The group, as a lessor, classified it as a finance lease if it transfers substantially all the risks
and rewards incidental to ownership of an underlying asset unless an operating lease.
At the commencement date, the group shall recognize the lease payment receivable and
derecognize of finance lease asset. When initially measuring the lease payment receivable, net
lease investment value shall be used for the lease payment receivable.
Net lease investment value equals to the any residual value guarantees plus the PV of undue
lease receivable discounted at the interest rate implicit in the lease. The group shall recognize
interest income over the lease term based on a constant periodic rate. The variable lease
payment obtained by the group related to operating leases, which are not included in the net
lease investment, shall be accounted for in the current profit and loss when actually incurred
Lease payment received shall be recognized as lease income on a straight-line basis within the
period.
The initial direct expenses incurred by the group in relation to operating leases are capitalized
to the cost of leasing the underlying asset and are recognized in profit or loss by instalments
over the lease period on the same basis as rental income. Variable lease payments made by the
group in relation to operating leases that are not included in lease collections are recognized
in profit or loss for the period when they are actually incurred.
The group shall account for a modification to an operating lease as a new lease from the
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
effective date of the modification, considering any received in advance or lease payments
receivable relating to the original lease as part of the lease payments receivable for the new
lease
The group measures investment property, derivative financial instruments and equity
instruments at fair value at each balance sheet date. Fair value refers to the price that market
participants can receive by selling an asset or can pay for transferring a liability in an orderly
transaction that takes place on the measurement date.
Assets and liabilities measured or disclosed at fair value in the financial statements are
determined to belong to the different fair value level based on the lowest level of input values
that are significant to the fair value measurement as a whole: level 1 input is the unadjusted
quoted price for identical asset or liability available at the active market on the measurement
date; level 2 input is the directly or indirectly observable input for relevant asset or liability
apart from level 1 input; level 3 input is the unobservable input for relevant asset or liability.
(For levels 1 and 2) For financial instruments traded in an active market, the group determines
their fair value by their active market quotes; For financial instruments that are not traded in
an active market, the group uses valuation techniques to determine their fair value, and the
valuation model used is mainly the discounted cash flow model. The input of valuation
techniques mainly includes: risk-free interest rate of debt, credit premium and liquidity
premium; estimator coefficient. and liquidity discount of equity.
(For level 3) The fair value of level 3 is determined on the basis of the group's valuation
models, such as the discounted cash flow model. The group also considers the initial
transaction price, recent transactions of the same or similar financial instruments, or full
third-party transactions of comparable financial instruments. As at 31 December 2023, level 3
financial assets measured at fair value are valued by using significant unobserved inputs such
as discount rates, but their fair value is not materially sensitive to reasonable changes in these
significant unobserved inputs.
The group uses the market approach to determine the fair value of unlisted equity investments.
This requires the group to determine comparable listed companies, select market coefficient,
estimate liquidity discounts, etc., and is therefore subject to uncertainty.
(1) On December 5, 2025, the Ministry of Finance issued the "Interpretation No. 19 of the
Enterprise Accounting Standards" (Finance and Accounting [2025] No. 32) to regulate non
same control
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
The recognition and measurement of compensatory assets in business combinations, the
treatment of capital reserves when disposing of subsidiaries acquired through business
combinations under the same control, the termination of recognition of financial liabilities
settled through electronic payment systems, the refinement of cash flow characteristics (SPPI)
evaluation of financial asset contracts, and the classification disclosure of fair value changes
in FVOCI equity instrument investments will be implemented from January 1, 2026.
(2) On June 4, 2026, the Ministry of Finance issued the "Interpretation of Enterprise
Accounting Standards No. 20" (Finance and Accounting [2026] No. 7), which further refines
the evaluation of cash flow characteristics of financial asset contracts (non recourse financial
assets and contract linked instruments), and the foreign currency conversion and disclosure
when the currency lacks convertibility. It will be implemented from the date of issuance.
After evaluation, the Group is currently not involved in the relevant matters stipulated in this
interpretation, and all provisions of Interpretation No. 19 and No. 20 have no impact on the
Group's financial statements.
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
VI. Taxation
Tax Tax base Tax rate
Value-added tax (VAT) Sales revenue or Purchase 5%、6%、9%、13%
City construction tax Value-added tax payables 7%
Education surcharge Value-added tax payables 3%
Local education surcharge Value-added tax payables 2%
Enterprise income tax(EIT) Current period taxable profit 15% or 25%
Real estate tax 1.2% or 12%
revenue from leasing property
Land use tax Land using right area Fixed amount per square meter
Other tax According to the relevant provisions of the state and local
Notes for tax entities with different EIT rate
Tax entities EIT rate
Bingshan Refrigeration & Heat Transfer Technologies Co. ,Ltd 15%
Dalian Bingshan Group Engineering Co., Ltd. 25%
Dalian Bingshan Air-conditioning Equipment Co., Ltd. 15%
Dalian Bingshan Guardian Automation Co., Ltd. 15%
Dalian Bingshan-RYOSETSU Quick Freezing Equipment Co., Ltd. 25%
Wuhan New World Refrigeration Industrial Co., Ltd. 15%
Dalian Bingshan Engineering & Trading Co., Ltd 25%
Dalian Universe Thermal Technology Co., Ltd. 25%
Chengdu Bingshan Refrigeration Engineering Co., Ltd. 25%
Wuhan New World Air-conditioning Refrigeration Engineering Co., Ltd 25%
Sonyo Compressor(Dalian)Co., Ltd. 15%
Sonyo Refrigeration System (Dalian) Co., Ltd. 15%
Sonyo Refrigeration (Dalian) Co., Ltd. 15%
HKD profit ≤ 2
million, 8.25%;
Bingshan International Trade (Hong Kong) Limited
HKD profit>2
million, 16.5%
Dalian Bingshan Part Technology Co., Ltd. 5%
The Company obtained the qualification of high and new technology enterprises on December,
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Tax Bureau and Local tax Bureau. The Certificate No. is GR202321201041, and the validity
duration is three years. According to the tax law, the Company can be granted for the
preferential tax policy of enterprise income tax rate of 15% in three years.
The Company’s subsidiary, Dalian Bingshan Air-conditioning Equipment Co., Ltd. obtained
the qualification of high and new technology enterprises on December, 2023 approved by
Dalian Science Technology Bureau, Dalian Finance Bureau, Dalian State Tax Bureau and
Local tax Bureau. The Certificate No. is GR202321201161, and the validity duration is three
years. According to the tax law, Bingshan Air-conditioning can be granted for the preferential
tax policy of enterprise income tax rate of 15% in three years.
The Company’s subsidiary, Dalian Bingshan Guardian Automation Co., Ltd. obtained the
qualification of high and new technology enterprises on December, 2024 approved by Dalian
Science Technology Bureau, Dalian Finance Bureau, Dalian State Tax Bureau and Local tax
Bureau. The Certificate No. is GR202421200978, and the validity duration is three years.
According to the tax law, Bingshan Guardian can be granted for the preferential tax policy of
enterprise income tax rate of 15% in three years.
The Company’s subsidiary, Wuhan New World Refrigeration Industrial Co., Ltd obtained the
qualification of high and new technology enterprises on November, 2024 approved by Hubei
Science Technology Bureau, Hubei Finance Bureau, Hubei State Tax Bureau and Hubei Local
tax Bureau. The Certificate No. is GR202442000336, and the validity duration is three years.
According to the tax law, Wuhan New World Refrigeration can be granted for the preferential
tax policy of enterprise income tax rate of 15% in three years.
The Company’s subsidiary, Sonyo Compressor(Dalian)Co., Ltd.(hereinafter referred to
as“ Sonyo Compressor” obtained the qualification of high and new technology enterprises on
December, 2024 approved by Dalian Science Technology Bureau, Dalian Finance Bureau,
Dalian State Tax Bureau and Local tax Bureau. The Certificate No. is GR202421200617, and
the validity duration is three years. According to the tax law, the Company can be granted for
the preferential tax policy of enterprise income tax rate of 15% in three years.
The Company’s subsidiary, Sonyo Refrigeration System (Dalian) Co., Ltd.(hereinafter referred
to as“ Sonyo Refrigeration System” obtained the qualification of high and new technology
enterprises on December, 2023 approved by Dalian Science Technology Bureau, Dalian
Finance Bureau, Dalian State Tax Bureau and Local tax Bureau. The Certificate No. is
GR202321201152, and the validity duration is three years. According to the tax law, the
Company can be granted for the preferential tax policy of enterprise income tax rate of 15% in
three years.
The Company’s subsidiary, Sonyo Refrigeration (Dalian) Co., Ltd.(hereinafter referred to
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
as“ Sonyo Refrigeration System” obtained the qualification of high and new technology
enterprises on December, 2024 approved by Dalian Science Technology Bureau, Dalian
Finance Bureau, Dalian State Tax Bureau and Local tax Bureau. The Certificate No. is
GR202421200850, and the validity duration is three years. According to the tax law, the
Company can be granted for the preferential tax policy of enterprise income tax rate of 15% in
three years.
VII. Notes to Consolidated Financial Statements
The financial statement data disclosed below, unless otherwise specified, "beginning" refers
to January 1, 2026, "end of period" refers to June 30, 2026, "current period" refers to the
period from January 1 to June 30, 2026, and "previous period" refers to the period from
January 1 to June 30, 2025, with the currency unit being RMB yuan.
Item Closing Balance Opening Balance
Cash on hand 9,678.51 11,965.04
Cash in bank 593,956,472.54 825,008,807.79
Other cash and cash equivalents 27,739,314.32 56,940,349.45
Total 621,705,465.37 881,961,122.28
Note1: within the bank deposits, 110,685,722.16 Yuan was time deposits and interest income;
frozen fund of 10,578,125.84 Yuan, and guarantee deposit for migrant worker of
Note2: Other monetary funds are bank acceptance deposit 8,410,882.68Yuan, deposit for
letter of guarantee is 19,328,431.64 Yuan.
(1) Category of notes receivable
Items Closing Balance Opening Balance
Bank acceptance notes 252,177,833.63 315,005,979.40
Commercial acceptance notes 15,188,020.87 12,067,382.02
Total 267,365,854.50 327,073,361.42
Closing Balance Opening Balance
Provision for Provision for
Items Booking balance Book Booking balance
bad debts bad debts Book value
value
Amount % Amount % Amount % Amount %
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Including:
Notes receivable with 100
provision for bad debts by .00
.58 .08 2% 854.50 .79 0% 17.37 0% 2
%
combination
Including:
Bank acceptance bill .63 02% 833.63 .40 % 0
trade acceptance draft 4.07% 12,067,381.02
Total .00
.58 .08 2% 854.50 .79 0% 17.37 0% 2
%
Provision for bad debts by combination:
Closing Balance
Items
Booking balance Bad debt provision Provision ratio
Banker's acceptance draft 252,177,833.63
Trade acceptance draft 16,039,540.95 851,520.08 5.31%
Total 268,217,374.58 851,520.08
Instructions for determining the basis for this combination:
If the bad debt provision for bills receivable is accrued according to the general model of
expected credit loss, please refer to the disclosure method of other receivables to disclose the
relevant information of bad debt provision:
Applicable Not applicable
(2) Provision for bad debts for the current period:
Provision for bad debts in the current period:
Opening Change during the year Closing
Category
balance Accrued Collected/reversed Written-off Others Balance
Bad debt
provision for 1,310,816.37 352,740.37 812,036.66 851,520.08
notes receivable
Total 1,310,816.37 352,740.37 812,036.66 851,520.08
Among them, the amount of bad debt provision recovered or reversed in the current period is
important:
Applicable Not applicable
(3)Notes receivable pledged by the company at the end of the period
Items Closing pledged amount
Bank acceptance notes 850,000.00
Total 850,000.00
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
(4) Notes receivable endorsed or discounted but not mature at the end of year:
Item Closing amount no more Closing amount still
recognized recognized
Bank acceptance notes 108,166,431.13
Trade acceptance draft 2,069,044.00
Total 110,235,475.13
(1) Category of accounts receivable
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
on individual basis
Bad debt provision
on group
Including: aging as
characteristics of 2,439,962,224.42 99.47% 616,160,646.21 25.25% 1,823,801,578.21
credit risk
Total 2,452,999,258.78 100.00% 626,390,130.11 25.54% 1,826,609,128.67
(Continued)
Opening balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
on individual basis
Bad debt provision
on group
Including: aging as
characteristics of 2,249,684,720.05 99.42% 616,935,655.93 27.42% 1,632,749,064.12
credit risk
Total 2,262,721,754.41 100.00% 627,165,139.83 27.72% 1,635,556,614.58
Aging Closing Balance
Within1 year 1,276,004,089.43
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
More than 3 years 547,522,466.65
More than 5 years 262,035,898.08
Total 2,452,999,258.78
Instructions for determining the basis for this combination:
If the bad debt provision for accounts receivable is accrued according to the general model of
expected credit loss, please refer to the disclosure method of other receivables to disclose the
relevant information of bad debt provision:
Applicable Not applicable
Disclosure by age
Closing Balance
Items
Booking balance Provision %
within 1 year 1,276,004,089.43 61,012,443.01 4.78%
more than 5 years 255,580,986.88 255,580,986.88 100.00%
Total 2,439,962,224.42 616,160,646.21
Provision for bad debts in the current period:
Opening Change during the period Closing
Category
balance Accrued Collected/reversed Written-off Others Balance
Bad debt
provision
for 627,165,139.83 9,021,624.31 5,125,657.82 6,863,711.02 2,192,734.81 626,390,130.11
accounts
receivable
Item Written off amount
Receivable actually written off 6,863,711.02
(1) contract asset
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Closing Balance
Items
Booking balance Provision Carrying amount
Undue warranty 183,850,261.71 24,475,993.01 159,374,268.70
Unsettled receivable of revenue
recognized over time
Total 193,708,885.00 29,676,543.96 164,032,341.04
(continued)
Opening balance
Items
Booking balance Provision Carrying amount
Undue warranty 178,324,350.44 22,629,454.12 155,694,896.32
Unsettled receivable of revenue
recognized over time
Total 190,777,994.50 28,961,066.11 161,816,928.39
(2) Category of contract asset based on bad debt provision method
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
on individual basis
Bad debt provision
on group
Including: aging as
characteristics of 191,998,936.20 99.12% 27,966,595.16 14.57% 164,032,341.04
credit risk
Total 193,708,885.00 100.00% 29,676,543.96 15.32% 164,032,341.04
(continued)
Opening Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
on individual basis
Bad debt provision
on group
Including: aging as 189,068,045.70 99.10% 27,251,117.31 14.41% 161,816,928.39
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Opening Balance
Items Booking balance Provision
Booking value
Amount % Amount %
characteristics of
credit risk
Total 190,777,994.50 100.00% 28,961,066.11 15.18% 161,816,928.39
Opening balance Closing Balance
Name Accounts Provision for Accounts Provision for Proportion
Reason
receivable bad debts receivable bad debts (%)
Recovery is not
Company 2 1,709,948.80 1,709,948.80 1,709,948.80 1,709,948.80 100.00%
expected
Total 1,709,948.80 1,709,948.80 1,709,948.80 1,709,948.80 —
Closing Balance
Aging Accounts Provision for Drawing proportion
receivable bad debts
Within 1 year 98,253,066.73 5,588,730.02 5.69%
Over 5 years 2,459,834.54 2,459,834.54 100.00%
Total 191,998,936.20 27,966,595.15
(3) Bad debt provision of current period
Collected/
Category Accrued Written-off Others Reason
reversed
Undue warranty 2,052,651.39 989,102.00 -
Unsettled receivable of
revenue recognized over -348,071.54 -
time
Total 1,704,579.85 989,102.00 -
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Items Closing Balance Opening Balance
Bank acceptance notes 359,361,883.76 335,509,461.15
Total 359,361,883.76 335,509,461.15
(2) Category of accounts receivable based on bad debt provision method
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision
on group
Including: bank
acceptance notes
Total 359,361,883.76 100.00% 359,361,883.76
(Continued)
Opening balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision on group 335,509,461.15 100.00% 335,509,461.15
Including: aging as
characteristics of credit risk
Total 335,509,461.15 100.00% 335,509,461.15
(3) Pledged notes receivable up to the end of year.
Items Closing pledged amount
Bank acceptance notes 587,572.14
Total 587,572.14
Items Closing Balance Opening Balance
Dividends receivable 592,327.29
Other receivable 38,974,583.06 43,092,575.59
Total 39,566,910.35 43,092,575.59
(1) Dividends receivable
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Items(or Investee) Closing Balance Opening Balance
Dalian Bingshan Group Huahuida Financial Leasing
Co., Ltd.
Total 592,327.29
(2). Other receivables
Nature Closing Balance Opening Balance
Receivables and Payables 30,897,088.95 31,017,128.68
Guarantee deposits 35,105,173.36 2,363,019.14
Petty cash 6,174,651.80 31,012,852.10
Others 4,573,536.57 16,337,618.12
Total 76,750,450.68 80,730,618.04
The first phase The second phase The third phase
Provision for bad debts Expected Credit Loss Expected Credit Loss for Total
Expected credit losses in the
for the duration (No the duration (Credit
next 12 months
Credit Devaluation) impairment has occurred)
Balance on January 1, 2026 1,605,096.85 36,182,621.68 37,787,718.53
The balance of January 1, 2026 in
the current period
Provision for current period 5,420.43 5,420.43
Reversal for current period -48,955.35 147,059.82 98,104.47
Written-off 107,882.86 2,072.52 109,955.38
Balance on June 30, 2026 1,448,258.64 36,333,029.41 37,775,867.62
Changes in book balances with significant changes in loss provisions in the current
period
Applicable Not applicable
Disclosure by age
Aging Closing Balance
Within 1 year 21,591,772.37
Over 3 years 43,627,015.30
Over 5 years 35,841,459.33
Total 76,750,450.68
Provision for bad debts in the current period:
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Change during the year
Opening Closing
Category Accrued Collected/re Written-
balance Others Balance
versed off
Provision for bad
debts of other 37,787,718.53 98,104.47 109,955.38 37,775,867.62
receivables
Total 37,787,718.53 98,104.47 109,955.38 37,775,867.62
Name Category Closing Balance Aging % of the total OR Closing Balance of Provision
Export Tax
Top 1 2,809,523.12 Within 1 year 3.66% 102,828.55
Rebate
Top 2 Deposit 2,476,894.20 4-5 years 3.23% 1,719,212.26
Top 3 Rent 2,329,229.79 Within 1 year 3.03% 85,249.81
Top 4 Deposit 2,049,000.00 2.67% 2,049,000.00
over 5 years
Top 5 Deposit 1,317,572.92 over 5 years 1.72% 45,324.51
Total 10,982,220.03 14.31% 4,001,615.13
(1) Aging of prepayments
Closing Balance Opening Balance
Items
Amount Percentage Amount Percentage
Within 1 year 152,054,125.00 86.98% 130,253,296.15 83.53%
Over 3 years 4,495,234.84 2.57% 4,549,988.01 2.91%
Total 174,821,372.60 155,949,650.91
(2) Prepayments from the top 5 debtors based on closing balance
The sum of top 5 of prepayment is 52,008,117.20 Yuan, represents 29.75% of closing
balance of prepayment.
(1) Categories of inventories
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Closing Balance
Item
Book value Provision for decline Net book value
Cost to fulfill the contract 433,989,598.35 9,393,149.14 424,596,449.21
Finished goods 541,614,439.30 23,883,238.93 517,731,200.37
Raw materials 259,087,349.18 25,179,253.61 233,908,095.57
Working in progress 203,606,340.11 32,068,406.53 171,537,933.58
Self-manufactured
semi-finished products
Goods on transit 3,437,245.40 3,437,245.40
Materials on consignment
for further processing
Low-value consumable 147,056.71 147,056.71
Total 1,491,735,065.72 90,524,048.21 1,401,211,017.51
(Continued)
Opening Balance
Item
Book value Provision for decline Net book value
Cost to fulfill the contract 521,572,675.61 9,498,861.27 512,073,814.34
Finished goods 503,904,845.74 32,267,732.46 471,637,113.28
Raw materials 250,506,901.06 31,927,475.12 218,579,425.94
Working in progress 197,085,943.16 33,444,367.83 163,641,575.33
Self-manufactured semi-finished
products
Goods on transit 23,330,604.92 351,397.26 22,979,207.66
Materials on consignment for further
processing
Low-value consumable 183,600.81 183,600.81
Total 1,547,404,248.12 107,489,833.94 1,439,914,414.18
(2) Provision for decline in the value of inventories
Increase Decrease
Opening Closing
Item Others Reverse/ Others
Balance Accrual Balance
transferred Written- off transferred
Raw materials 31,927,475.12 20,037.95 6,768,259.46 25,179,253.61
Working in
progress
Finished goods 32,267,732.46 460,149.88 8,844,643.41 23,884,047.12
Cost to fulfill
the contract
Goods on 351,397.26 351,397.26
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Increase Decrease
Opening Closing
Item Others Reverse/ Others
Balance Accrual Balance
transferred Written- off transferred
transit
Total 107,489,833.94 480,187.83 17,445,973.56 90,524,048.21
Accrual for provision for decline in the value of inventories
Basis for net realizable value Reasons for
Item
recognition reverse/write-off
Raw materials The amount deducting the expected Sold
Working in progress cost to product completion, selling Sold
Finished goods expense and relative tax from the Sold
Cost to fulfill the contract estimated selling price. Sold
Items Closing Balance Opening Balance
Long-term receivables due within one year 388,297.01 359,632.86
Total 388,297.01 359,632.86
Item Closing Balance Opening Balance
Input VAT to be deducted 22,468,593.17 29,743,674.42
Prepaid VAT 806,676.67 3,213,956.72
The amount of income tax prepaid 970,258.02 1,898,839.02
Contract acquisition cost 1,245,928.91 28,301.88
Prepaid expenses 428,883.13 14,604.88
Total 25,920,339.90 34,899,376.92
(1) Details
Item Closing Balance Discounted
rate
Carrying
Provision Book value
amount
Installment payment for selling 1,886,800.00 121,072.55 1,765,727.45
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
goods
Unrealized financing income -162,119.84 -162,119.84 3.5%-4.35%
Transfer of long-term
receivables due within one 417,613.48 29,316.47 388,297.01
year
Total 1,307,066.68 91,756.08 1,215,310.60
(2) Category of long-term receivable based on bad debt provision method
Closing Balance
Items Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision on group 1,307,066.68 100.00% 91,756.08 7.02% 1,215,310.60
Including: using aging as a
combination of credit risk 1,724,680.16 100.00% 121,072.55 7.02% 1,603,607.61
characteristics
Transfer of long-term receivables due
within one year
Total 1,307,066.68 100.00% 91,756.08 7.02% 1,215,310.60
Closing Balance
Aging Accounts Provision for bad Drawing proportion
receivable debts (%)
Within 1 year 1,307,066.68 91,756.08 7.02%
Total 1,307,066.68 91,756.08
Bad debt Expected credit loss within Expected credit loss
Expected credit loss Total
provision the whole period (no within the whole period
within 12 months
impairment) (impairment incurred)
Opening balance 91,794.40 91,794.40
Opening balance
— — — —
during the year
--transfer to the 2nd
- - - -
stage
--transfer to the 3rd - - - -
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
stage
--reverse to the 2nd
- - - -
stage
----reverse to the
- - - -
Accrued -38.32 -38.32
Reverse - - - -
Cancelation - - - -
Written off - - - -
Other movement - - - -
Closing balance 91,756.08 91,756.08
(3) Bad debt provision of long-term receivable for the year
Change during the year
Opening Closing
Category Accrued Collected/
balance Written-off Others Balance
reversed
Bad debt
provision
Total 91,794.40 -38.32 91,756.08
Increase/Decrease
Gains and
Provision for
Beginning losses Adjustment of Cash bonus or Ending Provision for
Investee Change impairment
balance recognized other profits balance impairment
Increased Decreased of other of the Others
under the comprehensive announced to
equity current
equity income issue
period
method
Associates — — — — — — — — — — —
Dalian Honjo Chemical
Co., Ltd
Keihin-Grand Ocean
Thermal Technology 49,614,057.86 -1,538,958.16 48,075,099.70
(Dalian)Co.,Ltd.
Dalian Fuji Bingshan
Vending Machine Co., Ltd.
MHI Bingshan
Refrigeration (Dalian) 17,053,051.54 -1,456,899.31 15,596,152.23
Co.,Ltd.
Dalian Fuji Bingshan
Vending Machine Sales Co.,
Ltd
Jiangsu Jingxue Insulation
Technology Co.,Ltd (N4)
Dalian Bingshan Metal
Technology Co.,Ltd.
Dalian Bingshan Group
Huahuida Financial Leasing 47,438,452.34 *.** 592,327.29 *.**
Co., Ltd
Wuhan Sikafu Power
Control Equipment Co., Ltd
PT BINGSHAN MAKMUR
INDONESTA
Total 483,028,918.31 12,042,631.59 592,327.29 494,479,222.61
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Item Closing Balance Opening Balance
Financial assets classified as FVTPL 1,683,852.59 1,683,852.59
Including: equity instruments 1,683,852.59 1,683,852.59
Total 1,683,852.59 1,683,852.59
(1) Investment property measured as cost model
Property&
Item Land-use-rights Total
building
I. Initial cost — — —
(1) FA\transferred from CIP 12,337,300.00 2,949,800.00 15,287,100.00
II. Accumulated depreciation — — —
(1) accrued/amortization 2,905,790.12 260,944.38 3,166,734.50
(2) FA\transferred from CIP 199,453.04 111,734.81 311,187.85
III. Impairment reserve — — —
IV. Book value — — —
(3) Investment property without ownership certificate
There are no investment properties with incomplete property ownership certificates this year.
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Items Closing Book Value Opening Book Value
Fixed asset 1,210,192,835.36 1,261,222,376.24
Total 1,210,192,835.36 1,261,222,376.24
(1) Fixed assets detail
Property& Machinery Transportation
Item Other equipment Total
buildings equipment equipment
I. Initial cost — — — — —
(1) Purchase 1,306,272.22 1,421,238.94 1,621,687.80 4,349,198.96
(2) Transferred from
construction-in-progress
(3) Acquired from business
combination
(4) financial lease 513,147.86 513,147.86
(1) Disposal 130,595.56 5,841,696.73 2,337,055.24 234,877.96 8,544,225.49
(2) transferred into investment
property
II. Accumulated depreciation — — — — —
(1) Accrued 15,814,548.44 36,248,822.50 693,278.58 6,180,513.79 58,937,163.31
(2) Acquired from business
combination
(3) financial lease 17,410.38 17,410.38
(1) Disposal 10,056.33 4,926,203.90 1,968,988.95 224,595.86 7,129,845.04
(2) transferred into investment
property
III. Impairment reserve — — — — —
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Property& Machinery Transportation
Item Other equipment Total
buildings equipment equipment
(1)Acquired from business
combination
(1) Disposal 121,398.10 121,398.10
IV.Book value — — — — —
Item Closing book value Opening book value
Construction-in-progress 18,185,186.15 15,669,392.61
Total 18,185,186.15 15,669,392.61
(1) Construction-in-progress details
Closing balance Opening balance
Item Book
Provision Book Value Book balance Provision Book value
balance
Installation and
renovation of
machine tools 14,398,228.32 14,398,228.32 11,030,187.67 11,030,187.67
and mechanical
equipment
Software of
intelligent 3,556,795.41 3,556,795.41 4,639,204.94 4,639,204.94
manufacture
Buildings &
reconstruction
Total 18,185,186.15 18,185,186.15 15,669,392.61 15,669,392.61
(2) Change in the significant construction in progress
Decrease
Opening Closing
Name Increase Transfer to FA/ Other
balance balance
Intangible assets decrease
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Decrease
Opening Closing
Name Increase Transfer to FA/ Other
balance balance
Intangible assets decrease
Installation and
renovation of
machine tools and 10,805,702.49 15,628,331.54 663,127.04 14,398,228.32
mechanical
equipment
Total 10,805,702.49 15,628,331.54 663,127.04 14,398,228.32
(Continued)
Including:
Percent of
Progress Accumulated accumulate Interest
investment
Name Budget of capitalized d capitalized capitalization Source of funds
against
construction interest interest of Rate
budget
the year
Installation and
renovation of
Self-
machine tools 16,804,182.27 85.68% 85.68% - - -
financing
and mechanical
equipment
Total 16,804,182.27 — — — — — —
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Property/ Transportation Electronic
Item Machinery Land use right Software Total
buildings equipment equipment
I. Initial cost — — — — — —
(1) lease in 87,392.07 87,392.07
(2) business combination
(1) Disposal
(2) transferred into FA 708,849.56 708,849.56
II. Accumulated
amortization
(1) Accrued 969,273.78 16,835.19 33,195.59 80,266.92 535,942.62 1,673,053.58 37,539.48
(2) business combination
(1) Disposal
(2) transferred into FA 196,410.55 196,410.55
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Property/ Transportation Electronic
Item Machinery Land use right Software Total
buildings equipment equipment
III. Impairment reserve — — — — — —
IV. Book value — — — — — —
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Non-
Item Land use right Patent Others Total
Patent
I. Initial cost — — — — —
(1) Purchase 311,320.75 311,320.75
(2) Transferred from
construction-in-progress
(3) increase via merge
(1) Transfer to investment
real estate
II. Accumulated
— — — — —
amortization
(1) Accrued 4,525,401.33 1,454,085.71 2,720,515.20 8,700,002.24
(2) Increase from merger
(1) Transfer to investment
real estate
III. Impairment
— — — — —
provision
(1) Increase from merger
(1) Disposal
IV. Book value — — — — —
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
(1) Original cost of goodwill
Increased during Decreased during
current year current year
Opening
Name Enterprises Closing Balance
Balance
merger Other Disposal Other
increase
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 the fair value of the proportion of the acquired company’s identifiable net asset.
The difference between the book value of equity investment of 48, 287,589.78 Yuan and the
identifiable net asset’s fair value of Dalian Sanyo High-efficient Refrigeration System Co., Ltd of
In the year 2016, Dalian Bingshan Group Engineering Co., Ltd purchases shares of Dalian
Bingshan Baoan Leisure Industry Co., Ltd and gains control. The transferred price is based on the
net asset of Dalian BingshanBaoan Leisure Industry Co., Ltd on June 30th, 2016. Negotiated with
Dalian Bingshan Baoan Leisure Industry Co., Ltd’s shareholder Baoan Water Project (China)
Limited Company, the transfer price is the combination cost on the purchasing date which is
Company’s identifiable net asset is 5,049,096.85 Yuan on the purchasing day, therefore, goodwill is
Dalian Bingshan Baoan Leisure Industry Co., Ltd in 2019.
In 2022, the Company purchased 60% of the shareholdings of Sonyo Compressor (Dalian)Co.,
Ltd from Sanyo Electric (China)Co., Ltd, and negotiated with Sanyo Electric (China)Co., Ltd to
determine the share transfer consideration of 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 previous shareholdings on acquisition date plus
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
asset of 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. from Panasonic Corporation of china Co., LTD and 25% shareholdings of Sonyo
Refrigeration System (Dalian) Co., Ltd from Panasonic Appliances cold Chain (Dalian)Co.Ltd. The
negotiated share transfer consideration of 81,735,060.00 Yuan. After the transaction, Sonyo
Compressor (Dalian)Co., Ltd became a subsidiary. This transaction is a business combination not
under same control, cost of combination is the FV of previous shareholdings on acquisition date plus
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. from Panasonic Corporation of China Co., LTD and 60% shareholdings of Sonyo Refrigeration
(Dalian) Co., Ltd from Sanyo Electric (China)Co., Ltd. This transaction is a business combination
not under same control, cost of combination is the consideration of 145,285,500.00 Yuan for share
transfer. Goodwill of 38,056,663.52Yuan is recognized for the difference between the share of FV of
net identifiable asset of acquire. 107,228,836.48Yuan and cost of combination on acquisition date.
The book value of goodwill from business combination shall be allocated into the relevant asset
group using the reasonable method since acquisition date, and be tested for impairment on related
asset groups containing goodwill by professional appraisal companies or use evaluation models to
predict the recoverable amount of related asset groups containing goodwill in accordance with the
present value of future cash flows including gross profit rate, sales growth rate (2.81%-7.05%),
discount rate(10.51%-12.64%) and other parameters in the next 5 years. No goodwill impairment has
been found when the recoverable amount of asset group for testing is higher than its book value.
Opening Other Closing
Item Increase Amortization
Balance Decrease balance
Greenland of new factory 1,263,830.02 446,057.76 817,772.26
Employee’s dormitory use right 1,181,300.40 69,239.16 1,112,061.24
Membership fee for golf 341,000.00 8,250.00 332,750.00
Renovation and rebuilding 1,306,463.02 678,899.08 236,639.94 1,748,722.16
Amortization of instruments 46,194.67 17,286.25 28,908.42
Software maintenance fee 254,951.67 58,684.68 196,266.99
Technology entrance fee of cold and
heat machinery
Total 6,036,271.48 738,598.58 1,033,416.19 5,741,453.87
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
(1) Deferred tax assets without offsetting
Closing balance Opening balance
Item Deductible Deferredtax Deductibletemporary
Deferredtaxassets
temporarydifference assets difference
Provision for credit
impairment
Asset impairment provision 111,214,834.46 16,806,749.53 125,545,107.70 18,940,837.38
Depreciation of fixed assets 67,744,518.27 10,161,677.74 67,744,518.27 10,161,677.74
Unrealized income 15,884,175.46 3,971,043.86 15,884,175.46 3,971,043.86
Advance sales rebate 24,531,204.35 3,679,680.65 24,531,204.35 3,679,680.65
government grants 20,001,854.62 3,000,278.19 22,104,227.00 3,315,634.05
Unrealized profits from
internal transactions
Lease liability 11,203,019.79 1,803,414.42 8,577,510.50 1,409,588.02
Accrued expenses 6,622,174.17 993,326.13 6,622,174.17 993,326.13
Provisions 2,300,208.22 378,141.28 2,300,208.22 378,141.28
Safety production cost 1,988,616.80 298,292.52 1,988,616.80 298,292.52
Other 8,809,354.66 1,321,403.20 8,809,354.66 1,321,403.20
Total 780,570,151.93 132,774,336.95 779,187,680.02 131,935,458.26
(2) Deferred tax liabilities without offsetting
Closing balance Opening balance
Item Taxable Taxable
Deferred tax Deferred tax
temporary temporary
liabilities liabilities
difference difference
Revaluation increase in
business combination
asst not under same
control
FA depreciation 36,063,279.93 5,432,111.76 36,122,663.18 5,418,399.49
Use right of asset 4,361,837.69 800,728.70 7,014,886.01 1,172,551.35
Total 220,962,913.89 33,136,059.73 234,322,576.33 35,268,704.91
(3) Net deferred tax asset or liability
Offset
Offset amount at Closing balance of amount at the Opening balance of
Item
the year-end net of DTA/DTL beginning of net of DTA/DTL
the year
Deferred tax assets 6,232,840.46 126,541,496.49 6,590,950.84 125,344,507.42
Deferred tax liabilities 6,232,840.46 26,903,219.27 6,590,950.84 28,734,303.46
(4) Unrecognized deferred tax assets details
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Item Closing balance Opening balance
Deductible temporary difference 151,888,392.95 172,621,148.01
Deductible loss 568,188,633.71 558,446,860.19
Total 720,077,026.66 731,068,008.20
(5) Unrecognized deductible loss of deferred tax assets expired years
Year Closing balance Opening balance Notes
Total 568,188,633.71 558,446,860.19 —
Closing Balance Opening balance
Category Carrying
Book value Provision Book value Provision Carrying amount
amount
Debt offset housing 19,428,587.00 1,455,755.51 17,972,831.49 19,428,587.00 1,455,755.51 17,972,831.49
Prepaid equipment
payment
Total 23,413,784.86 1,455,755.51 21,958,029.35 20,496,180.86 1,455,755.51 19,040,425.35
Item At the period end
Book value Carrying amount Type Restriction
Guarantee
Monetary fund 38,536,737.16 38,536,737.16 Frozen
deposit/ frozen bank account
Notes receivable 850,000.00 850,000.00 Pledged Pledged
Financing of receivable 587,572.14 587,572.14 Pledged Pledged
FA 94,117,633.35 59,480,216.27 Pledged Pledged
Intangible asset 8,266,573.44 5,008,531.57 Pledged Pledged
Investment property 38,955,728.90 29,889,269.11 Pledged Pledged
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Total 181,314,244.99 134,352,326.25 — —
(continued)
Item At the beginning of the period
Book value Carrying amount Type Restriction
Guarantee
Monetary fund 59,004,453.72 59,004,453.72 Frozen deposit/ frozen
bank account
Notes receivable Pledged Pledged
Financing of receivable 2,720,000.00 2,720,000.00 Pledged Pledged
FA 89,706,820.32 56,697,340.72 Pledged Pledged
Intangible asset 8,266,573.44 5,091,198.31 Pledged Pledged
Investment property 38,955,728.90 30,395,181.55 Pledged Pledged
Total 198,653,576.38 153,908,174.30 — —
(1) Category of short-term borrowing
Loan category Closing balance Opening balance
Credit loan 177,191,600.00 176,711,185.21
Factoring loan 22,875,802.82 19,276,014.68
Mortgage loan 2,000,000.00 3,000,000.00
Pledged loan 2,597,683.74 2,849,265.00
Total 204,665,086.56 201,836,464.89
Notes Category Closing balance Opening balance
Bank acceptance notes 638,705,442.61 665,364,289.18
Total 638,705,442.61 665,364,289.18
Item Closing balance Opening balance
Material payments 1,026,656,839.07 963,708,735.52
Project payments 679,194,091.37 659,245,594.97
Equipment payments 52,429,277.10 36,132,610.35
Others 6,365,626.04 5,495,223.24
Total 1,764,645,833.58 1,664,582,164.08
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Item Closing balance Opening balance
Interest payable - -
Dividend payable 42,693,781.35 533,156.00
Other accounts payable 239,760,360.47 241,567,858.95
Total 282,454,141.82 242,101,014.95
Item Closing balance Opening balance
Ordinary share dividend 42,693,781.35 533,156.00
Total 42,693,781.35 533,156.00
(1) Other payables categorized by payments nature
Payments nature Closing balance Opening balance
Supplier platform 189,426,283.69 176,455,533.29
Apply for reimbursement and
unpaid
Cash pledge and security deposit 15,162,526.30 15,586,100.96
Agency fees 2,959,421.97
Repair fees 268,539.61 1,684,332.73
Receivables and payables 315,650.70 737,505.99
Trade mark and royalty 229,728.24 162,319.48
Others 19,670,623.17 26,065,965.64
Total 239,760,360.47 241,567,858.95
(1) Contract liability
Item Closing balance Opening balance
Received in advance due from unrealized revenue 477,122,097.44 525,086,822.72
Total 477,122,097.44 525,086,822.72
(1) Category of employee’s payable
Opening
Item Increase Decrease Closing balance
balance
Short-term employee’s
payable
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Opening
Item Increase Decrease Closing balance
balance
Post-employment benefit
–defined contribution plan
Termination benefits 115,025.00 688,062.75 803,087.75
Total 125,177,034.62 340,884,628.81 421,295,839.58 44,765,823.85
(2) Short-term employee’s payables
Opening
Item Increase Decrease Closing balance
balance
Salaries, bonus,
allowance, and subsidy
Welfare 138,867.90 10,513,446.47 10,607,906.87 44,407.50
Social insurance 10,435.11 22,396,329.05 22,397,427.64 9,336.52
Include: Medical
insurance
On-duty injury
insurance
Maternity insurance 484,157.63 484,157.63
Housing funds 944.76 26,663,049.62 26,662,977.62 1,016.76
Labor union and training
expenses
Reward bonus and welfare
fund
Others 1,323,456.71 1,323,456.71
Total 125,045,129.28 303,700,425.89 383,994,879.16 44,750,676.01
(3) Defined contribution plan
Opening
Item Increase Decrease Closing balance
balance
Pension 16,368.80 35,365,854.34 35,367,534.34 14,688.80
Unemployment
insurance
Total 16,880.34 36,496,140.17 36,497,872.67 15,147.84
Item Closing balance Opening balance
Enterprise income tax 4,761,877.27 9,815,321.28
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Value-added tax 9,234,677.72 3,632,033.88
Real estate tax 2,895,102.58 2,987,873.81
Land use tax 1,652,378.23 1,343,645.06
City maintenance and construction tax 902,182.78 361,550.05
Stamp duty 715,429.83 775,147.93
Education surcharge 601,823.55 216,192.20
Individual income tax 300,096.18 577,158.49
Environmental tax 42,612.39 43,893.87
Total 21,106,180.53 19,752,816.57
Item Closing balance Opening balance
Long term loans due within one year 182,250,000.00 219,320,544.93
Long-term payable due within one year 11,227,411.77 14,883,189.60
Lease obligation due within one year 4,089,628.02 3,243,236.11
Total 197,567,039.79 237,446,970.64
Item Closing balance Opening balance
Notes payable endorsed not derecognized 107,933,791.39 145,365,603.31
Output Vat to be carried forward 38,942,677.07 39,373,636.22
Total 146,876,468.46 184,739,239.53
(1) Category of long-term borrowing
Category Closing Balance Opening Balance
Pledged loan 272,700,000.00 333,902,223.70
Guarantee loan 31,400,000.00 34,426,021.48
Total 304,100,000.00 368,328,245.18
Category Closing Balance Opening Balance
Lease payment 33,229,979.92 37,530,642.51
Less: unrecognized finance expense 16,747,057.23 17,790,446.86
Non-current liability due within 1 year 4,089,628.02 3,177,021.87
Total 12,393,294.67 16,563,173.78
Item Closing Balance Opening Balance
Long term accounts payable 16,350,240.32 18,845,786.63
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Total 16,350,240.32 18,845,786.63
Item Closing Balance Opening Balance
Financial lease borrowings 16,350,240.32 18,845,786.63
Total 16,350,240.32 18,845,786.63
Nature Closing Balance Opening Balance Reason
Warranty 1,734,500.48 2,300,208.22
Others 1,301,570.00
Total 3,036,070.48 2,300,208.22
Item Opening Balance Increase Decrease Closing Balance
Government subsidy 92,793,132.73 1,296,628.04 12,499,831.41 81,589,929.36
Total 92,793,132.73 1,296,628.04 12,499,831.41 81,589,929.36
Increase/decrease（+/-）
Opening New Closing
Item Share Transfer from
balance share others Subtotal balance
dividend capital reserve
issued
Total share
capital
Items Opening Balance Increase Decrease Closing Balance
Share premium 669,193,413.27 669,193,413.27
Other capital reserves 48,637,227.88 733,542.77 47,903,685.11
Total 717,830,641.15 733,542.77 717,097,098.38
Opening
Items Amount for the Less：Previously recognized Less： After-tax After-tax attribute Closing Balance
Balance
period before in profit or loss into other income attribute to the to minority
income tax comprehensive income tax parent company shareholder
I.Later can’t reclassified into
profit and loss of other - - - - - - -
comprehensive income
II. Later reclassified into profit
and loss of other 2,208,669.73 - - - - - 2,208,669.73
comprehensive income
Other comprehensive income
that can be transferred to profit 2,208,669.73 - - - - - 2,208,669.73
or loss under the equity method
Other comprehensive income
total 2,208,669.73 - - - - - 2,208,669.73
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Item Opening Balance Increase Decrease Closing Balance
Manufacturing
safety
Total 1,988,616.80 6,638,471.74 5,580,969.23 3,046,119.31
Item Opening Closing
Increase Decrease
Balance Balance
Statutory surplus reserve 393,376,564.76 393,376,564.76
Discretionary surplus reserve 529,825,770.25 24,743,592.75 554,569,363.00
Total 923,202,335.01 24,743,592.75 947,945,927.76
Item 2026-06-30 2025-06-30
Closing balance of last year 666,260,524.87 673,966,177.84
Add: Adjustments to the opening balance of
undistributed profits
Including: additional retrospective adjustments
according to the new accounting standards
Change on accounting policy
Correction of prior period significant errors -
Change on combination scope under same
control
Other factors -
Opening balance of current year 666,260,524.87 673,966,177.84
Add: net profit attributable to shareholders of
parent company in the year
Less: Provision for statutory surplus reserves 12,371,796.37
Provision for any surplus reserves 24,743,592.75 15,212,024.95
Dividends payable for common shares 42,160,625.35 42,160,625.35
Others 686,457.23
Closing balance of current year 645,812,465.61 666,260,524.87
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
(1) Details
Items 2026.01-06 2025.01-06
Sales revenue Cost of sales Sales revenue Cost of sales
Revenue from principle operation 2,128,242,559.30 1,805,895,464.58 2,346,491,455.81 1,978,257,633.93
Revenue from other operation 51,427,786.26 24,425,874.06 38,783,330.24 15,281,566.80
Total 2,179,670,345.56 1,830,321,338.64 2,385,274,786.05 1,993,539,200.73
(2) Main revenue and COS details
Northeast China Central China Total
Contract classification
Sales revenue Cost of sales Sales revenue Cost of sales Sales revenue Cost of sales
Classified by products
Manufacture products 1,477,019,811.63 1,199,221,339.15 86,438,248.81 78,396,238.37 1,563,458,060.44 1,277,617,577.52
Project installation 512,279,953.82 479,070,761.30 52,504,545.04 49,207,125.76 564,784,498.86 528,277,887.06
Other products and service 46,411,184.37 22,216,425.84 5,016,601.89 2,209,448.22 51,427,786.26 24,425,874.06
Classified by geography location
domestic 1,756,056,551.09 1,473,766,978.44 143,959,395.74 129,812,812.35 1,900,015,946.83 1,603,579,790.79
overseas 279,654,398.73 226,741,547.85 143,959,395.74 129,812,812.35 279,654,398.73 226,741,547.85
Timing of goods transferred
At a point 2,035,710,949.82 1,700,508,526.29 143,959,395.74 129,812,812.35 2,179,670,345.56 1,830,321,338.64
Over the time
Total 2,035,710,949.82 1,700,508,526.29 143,959,395.74 129,812,812.35 2,179,670,345.56 1,830,321,338.64
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Items 2026.01-06 2025.01-06
Property tax 6,082,883.58 5,414,391.06
City construction tax 3,062,701.83 3,905,022.67
Education surcharge 2,160,059.19 2,691,045.12
Land use tax 3,312,866.73 2,712,679.52
Stamp duty 1,382,756.19 1,337,054.70
Vehicle and vessel tax 13,684.08 24,079.08
Others 56,049.97 173,444.22
Total 16,071,001.57 16,257,716.37
Items 2026.01-06 2025.01-06
Employee benefit 67,141,914.20 69,120,056.85
Official expense 14,631,844.27 16,084,202.44
Depreciation expense 9,986,789.59 12,023,632.08
Maintenance and repair expense 1,560,419.03 1,589,653.02
Long-term assets amortization 7,885,938.56 5,381,646.45
Travel expense 2,562,093.15 4,386,732.64
Design consultant and test service expense 10,627,779.77 3,174,657.30
Safety production cost 1,586,060.83 1,994,019.39
Business entertaining expense 1,299,449.35 1,671,259.39
Insurance expense 924,475.78 967,662.39
Advertisement expense 984,424.94 168,642.18
Transportation expense 900.00 4,238.32
Patent trade mark use 218,200.04 4,696,215.64
Other expense 2,796,056.22 2,086,054.84
Total 122,206,345.73 123,348,672.93
Items 2026.01-06 2025.01-06
Employee benefit 64,984,403.22 68,196,742.22
Official business expense 8,078,131.96 8,567,397.72
Travel expense 6,817,788.21 8,396,214.18
Business entertaining expense 4,774,930.70 3,835,075.56
Advertisement and bids expense 3,187,197.22 4,957,078.21
Maintenance and repair expense 2,852,746.59 8,364,735.06
Depreciation expense 1,057,933.38 1,107,441.98
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Other expense 3,093,796.05 3,334,021.46
Total 94,846,927.33 106,758,706.39
Items 2026.01-06 2025.01-06
Employee benefit 45,913,711.45 44,006,837.73
Raw material 9,010,232.35 5,966,648.85
Depreciation and amortization expense 7,635,126.23 7,354,601.96
Other expense 4,788,632.59 11,838,237.37
Total 67,347,702.62 69,166,325.91
Items 2026.01-06 2025.01-06
Interest expenses 9,944,756.95 12,504,559.82
Less: interest income 2,255,910.41 3,358,417.93
Add: exchange loss 6,617,411.80 -4,839,403.93
Add: others expenditure 941,656.51 1,193,383.56
Total 15,247,914.85 5,500,121.52
Items 2026.01-06 2025.01-06
Government subsidy 6,943,766.80 1,812,199.32
Input VAT accelerated deduction 5,345,742.59 6,763,433.99
Personal income tax handling fee refund 274,897.00 215,957.44
Land tax and property tax reduction and
exemption
Total 12,714,406.39 8,794,590.75
Items 2026.01-06 2025.01-06
Long-term equity investment gain under equity method 12,042,631.59 24,534,336.83
Gain from disposal of long-term equity investment
Gain from FV remeasurement of the shares on obtaining control
Gain from holding of other noncurrent financial assets
Gain from disposal of other no-current financial assets
Gain on debt restructuring 2,573,327.11 -1,358,198.53
Discounting fees for bank acceptance note -443,559.74
Dividend received for other equity instrument held
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Total 14,172,398.96 23,176,138.30
Items 2026.01-06 2025.01-06
Bad debt loss on notes receivable 459,296.29 813,434.62
Bad debt loss on receivable -3,895,966.49 -10,807,297.06
Bad debt loss on other receivable 11,850.91 126,546.39
Bad debt loss on long term receivable 38.32 -317.80
Impairment losses related to financial
-1,301,570.00
guarantees
Bad debt loss on long-term receivables due
-2,164.15
within one year
Total -4,728,515.12 -9,867,633.85
Items 2026.01-06 2025.01-06
Loss on impairment of inventory and cost to
-480,187.83 -1,670,601.42
fulfill the contract obligation
Loss of contract asset impairment -715,477.85 -2,002,432.69
Total -1,195,665.68 -3,673,034.11
Item 2026.01-06 2025.01-06
Gain on non-current assets disposal -77,707.59 -55,842.88
Including: gain on non-current assets
-77,707.59 -55,842.88
disposal not classified as held for sale
Including: gain on fixed assets disposal -77,707.59 -55,842.88
gain on intangible assets disposal
gain on early derecognition of use
right asset
Total -77,707.59 -55,842.88
Amounts recognized into
Item 2026.01-06 2025.01-06 non-recurring profit or loss
for the period
Verified accounts payable 312,122.61 1,708,642.64 312,122.61
Transfer of advance receipts for contract 764,464.00 1,224,522.13 764,464.00
Fines, compensation gains 1,425,093.60 2,378,322.71 1,425,093.60
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Claim loss reversal 115,446.52 64,190.50 115,446.52
Gains from disposal of non current assets 23,286.26 114,569.27 23,286.26
Other items 39,723.05 65,352.90 39,723.05
Total 2,680,136.04 5,555,600.15 2,680,136.04
Amounts recognized into
Item 2026.01-06 2025.01-06 non-recurring profit or
loss for the period
Non-current assets scrap loss 91,702.63 422,433.35 91,702.63
Compensation 64,777.10 306,937.79 64,777.10
Outward donation 100,000.00 100,000.00
Others
Total 580,850.95 1,650,514.85 580,850.95
(1) Income tax expenses
Items 2026.01-06 2025.01-06
Current income tax expenses 11,278,042.30 15,216,378.89
Deferred income tax expenses -3,115,102.72 -3,773,177.87
Total 8,162,939.58 11,443,201.02
(2) Adjustment process of accounting profit and income tax expense
Items Current year
Consolidated total profit this year 56,613,316.87
Income tax expenses at applicable tax rate 8,491,997.53
Effect on subsidiary applied to different tax rate 50,453.09
Effect on prior period income tax adjustment 1,864,499.82
Effect on non-taxable income -888,946.82
The impact of non deductible costs, expenses, and losses -265,986.71
The impact of using previously unrecognized deferred tax assets on
deductible losses
The impact of deductible temporary differences or deductible losses on
unrecognized deferred tax assets in this period
Deferred income tax assets recognized for temporary differences in the
previous period
Additional deduction for R&D expenses -3,928,937.39
Income tax expense 8,162,939.58
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
(1) Cash relevant to operating activities
Items 2026.01-06 2025.01-06
Deposit returned 14,211,689.12 26,813,637.19
Financial funds 1,637,458.98 12,248,012.99
Lease premium received 12,783,959.98 4,308,103.91
Interest income 2,476,635.55 3,483,794.50
Receivable from the 3rd party 3,506,690.35 1,369,647.62
Compensation 61,778.62 734,747.32
Received travel expense refund 189,453.65 783,253.97
Others 6,810,918.02 2,945,842.40
Total 41,678,584.27 52,687,039.90
Items 2026.01-06 2025.01-06
Expenditure 83,992,489.15 91,140,894.61
Deposit paid 21,891,126.60 27,778,877.46
Accounts receivable and payable 1,606,936.34 1,285,840.71
Bank charges 777,961.17 1,103,994.86
Account freeze 5,398,160.38 873,417.33
Others 878,910.54 1,855,413.62
Total 114,545,584.18 124,038,438.59
(2) Cash relevant to investing activities
Items 2026.01-06 2026.01-06
Fixed-term deposit 50,000,000.00 50,000,000.00
Total 50,000,000.00 50,000,000.00
Items 2026.01-06 2025.01-06
Fixed-term deposit 60,222,000.00 50,000,000.00
Total 60,222,000.00 50,000,000.00
Items 2026.01-06 2025.01-06
Purchase and construct long-term assets 30,623,238.59 58,438,274.61
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Total 30,623,238.59 58,438,274.61
(3) Cash relevant to financing activities
Items 2026.01-06 2025.01-06
Notes payable to supplier 5,559,746.47 3,943,611.11
Sale leaseback and financial lease 2,000,000.00
Total 5,559,746.47 5,943,611.11
Items 2026.01-06 2025.01-06
Sale& leaseback and financial lease 9,163,975.98 4,096,677.84
Payment factoring 3,500.00 3,246,537.60
Lease premium payable 1,862,370.33 2,230,749.01
Supply chain bills 11,842,104.45
Total 11,029,846.31 21,416,068.90
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
(1) Information
Items 2026.01-06 2025.01-06
—— ——
activities:
Net profit 48,450,377.29 81,540,144.69
Add: Provision for impairment of assets 5,924,180.80 13,551,577.29
Depreciation of fixed assets, Amortization of
mineral resources, and biological assets
Depreciation of right-of-use assets 1,673,053.58 3,939,345.17
Amortization of intangible assets 8,700,002.24 7,851,714.06
Amortization of long-term deferred expenses 1,033,416.19 889,457.01
Losses on disposal of fixed assets, intangible assets,
and long-term assets (income listed with”-”)
Losses on write-off of fixed assets (income listed
with”-”)
Change of fair value profit or loss
Financial expense (income listed with”-”) 9,944,756.95 12,504,559.82
Investment loss (income listed with”-”) -14,172,398.96 -23,176,138.30
Decrease of deferred tax assets (increase listed
with”-”)
Increase of deferred tax liabilities (decrease listed
-11,314,230.52 -2,042,066.61
with”-”)
Decrease of inventories (increase listed with”-”) 55,669,182.40 164,041,830.93
Decrease of operating receivables (increase listed
-172,835,088.93 -288,449,462.61
with”-”)
Increase of operating payables (decrease listed
-101,323,155.56 -39,372,848.35
with”-”)
Others
Net cash flows arising from operating activities -97,657,176.10 -968,304.83
— —
unrelated to cash income and expenses
Liabilities transferred to capital - -
Convertible bonds within 1 year - -
Financing leased fixed assets - -
— —
equivalent
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Items 2026.01-06 2025.01-06
Closing balance of cash 472,483,006.05 779,698,019.84
Less: Opening balance of cash 722,021,877.01 952,302,550.26
Add: Closing balance of cash equivalent — —
Less: Opening balance of cash equivalent — —
Net increase of cash and cash equivalent -249,538,870.96 -172,604,530.42
(2) Cash and cash equivalents
Items 2026.01-06 2025.01-06
Cash 472,483,006.05 722,021,877.01
Including: Cash on hand 9,678.51 11,965.04
Bank deposit used for paying at any moment 472,473,327.54 722,009,911.97
Other monetary fund for paying at any moment
Deposit fund in central bank available for payment - -
Cash equivalent - -
Including: bonds investment with maturity in 3 months - -
Closing balance of cash and cash equivalents 472,483,006.05 722,021,877.01
Cash and cash equivalents with restriction within the
- -
Company and its subsidiaries of the group
(3) Monetary fund not belonging to cash and cash equivalent
Items 2026.01-06 2025.01-06 Reasons
Fixed term deposit 110,000,000.00 50,000,000.00
Guarantee money for bank acceptance
note
Guarantee money for guarantee letter 19,328,431.64 7,035,512.05
Frozen 10,578,125.84 6,650,265.95
Rural workers’ salary account restriction 685,722.16 3,191,024.44
Interest receivable 217,708.30
Rural workers’ Guarantee money 219,297.00 351,057.41
Total 149,222,459.32 80,991,068.96 —
None
(1) Monetary category of foreign currency
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Closing Balance Exchange
Item Closing Balance (RMB)
(foreign currency) Rate
Cash — — —
Including：USD 2,009,214.31 6.8109 13,684,557.74
Euro 11,078.73 7.7671 86,049.60
JPY 439,713,013.00 0.042045 18,487,733.63
HK$ 431,397.24 0.8699 375,255.20
Accounts receivable — — —
Including: USD 8,870,519.68 6.8109 60,416,222.49
Euro 2,287,603.20 7.7671 17,768,042.81
GBP 140,443.58 9.4346 1,325,029.00
JPY 66,461,232.16 0.042045 2,794,362.51
Accounts payable — — —
Including: USD 1,567,922.11 6.8109 10,678,960.70
JPY 59,540,181.30 0.042045 2,503,366.92
As a lessee
Items 2026.01-06 2025.01-06
Interest expense on lease liabilities 43,360.69 836,389.40
Short-term lease expense recognized in income statement 716,486.26 839,203.46
Low-value asset lease expense recognized in income
statement (excl short-term lease) - -
Income from the sublease of the right-of-use the assets - -
Sum of cash outflows related to leases 1,393,699.80 1,729,755.25
Cash inflow from sale and leaseback transactions - 765,653.09
Cash outflow from sale and leaseback transactions - 4,426,991.15
As a lessor
Operating lease
Include: income related to variable lease
Items Lease income payments not included in lease payment
receivable
Office and plant 14,171,858.30 -
Total 14,171,858.30 -
VIII .Research and development expense
Items 2026.01-06 2025.01-06
Employee benefit 45,913,711.45 44,006,837.73
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Items 2026.01-06 2025.01-06
Raw material 9,010,232.35 5,966,648.85
Depreciation and amortization expense 7,635,126.23 7,354,601.96
Other expense 4,788,632.59 11,838,237.37
Total 67,347,702.62 69,166,325.91
Expensed R&D 67,347,702.62 69,166,325.91
IX. Change of Consolidation Scope
The scope of consolidation at the end of the reporting period increased by one compared to the
beginning of the year, which is Dalian Bingshan Part Technology Co., Ltd.
The scope of consolidation at the end of the reporting period decreased by one compared to the
beginning of the year, which is Wuhan Lanning Energy Technology Co., Ltd.
X. Interest in other entity
(1) Organization structure of group company
Registered Main Shareholding (%)
Registere Obtaining
Name of subsidiaries capital business Business nature
d address Direct Indirect method
（10K） address
Dalian Bingshan Group
Engineering Co., Ltd.
Chengdu Bingshan
Refrigeration Engineering 1,000.00 Chengdu Chengdu Service - 51 Establish
Co., Ltd.
Dalian Bingshan
Air-conditioning Equipment 8,254.00 Dalian Dalian Manufacturing 100 - Establish
Co., Ltd.
Dalian Bingshan Guardian
Automation Co., Ltd.
Dalian
Bingshan-RYOSETSU
Quick Freezing Equipment
Co., Ltd.
Wuhan New World
Refrigeration Industrial Co.,
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Name of subsidiaries Registered Main Registere Business nature Shareholding (%) Obtaining
capital business d address method
Ltd.
Wuhan New World
Air-conditioning
Refrigeration Engineering
Co., Ltd
Dalian Universe Thermal
Technology Co., Ltd.
Dalian Bingshan
Engineering & Trading Co., 3,000.00 Dalian Dalian Service 100 - Acquisition
Ltd
Dalian Bingshan
Hong Hong
Engineering & Trading 320.00 Service - 100 Acquisition
Kong Kong
(Hong Kong) Co., Ltd.
Sonyo Compressor
(Dalian)Co., Ltd.
Sonyo Refrigeration System
(Dalian) Co., Ltd.
Sonyo Refrigeration
(Dalian) Co., Ltd.
Dalian Bingshan Part
Technology Co., Ltd.
subsidiaries with over 50% voting right.
(2) There are no significant non-subsidiaries.
（1）Change of equity share in subsidiary
None.
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
（1）The important affiliated companies
Shareholding (%)
Main
Name of joint ventures or Registered Business Accounting
business
affiliated companies address nature methods
address
Direct Indirect
Dalian Bingshan Metal Equity
Dalian Dalian Manufacturing 49.00 -
Technology Co., Ltd. method
affiliated company.
（2） The Company doesn’t have joint venture or affiliated companies which have no
significant influence although being held 20% or more voting rights.The key financial
information of affiliated companies
Closing Opening
balance/Current balance/Last
period period
Items
Dalian Bingshan Metal Technology
Co., Ltd.
Current assets 298,973,530.21 278,789,258.68
Non-current assets 42,095,631.56 40,260,431.18
Total assets 341,069,161.77 319,049,689.86
Current liabilities 72,661,176.36 53,180,522.14
Non-current liabilities
Total liabilities 72,661,176.36 53,180,522.14
Minority interests
Equity to the parent company 268,407,985.41 265,869,167.72
Share of net assets according to the shareholding
proportions
Adjusting events
—Goodwill 19,269,770.94 19,269,770.94
—Unrealized profits of insider trading
--Others
Book value of equity investment of affiliated
companies
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Closing Opening
balance/Current balance/Last
period period
Items
Dalian Bingshan Metal Technology
Co., Ltd.
Fair value of equity investment with public offer
Operating income 228,164,148.83 223,050,763.81
Financial expense
Income tax expense
Net profit 24,590,935.13 27,838,652.85
Net profit of discontinuing operation
Other comprehensive income
Total comprehensive income 24,590,935.13 27,838,652.85
The current dividends received from joint
ventures
（3） Summary financial information of insignificant affiliated companies
Items 2026.01-06 2025.01-06
Affiliated company — —
Total book value of investment of affiliated
companies
The total of following items according to the
— —
shareholding proportions
Net profit 2,895,438.89 32,372,063.31
Other comprehensive income 2,895,438.89 32,372,063.31
Total comprehensive income
（4） Significant restrictions of the ability of affiliated companies transferring funds to
the Company.
No.
（5） Contingency related to joint venture or affiliated company need to be disclosed.
No.
XI. Government Grant
Liability item involved in government grant
Into non- The value Related to
Opening Into other Closing
Items Increase operatin offset cost asset/incom
Balance income Balance
g income and expense e
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Deferred asset
income
Deferred asset/incom
income
e
Deferred
income
Items 2026.01-06 2025.01-06
Other income 7,093,766.80 1,812,199.32
XII. Risk Related to Financial Instruments
The main financial instruments held by the group are borrowings, accounts receivable, accounts
payable, other non-current financial asset etc. The detailed explanation is referred to the note
No.V. The related risks of these financial instruments and the risk management policy conducted
to reduce these risks by the group are introduced as below. The group management conducts to
manage and monitor these risks exposure and control these risks under certain risk level.
The objectives of risk management conducted by the Company are to reach the balance between
risk and profit return by reducing the negative influence to operating performance to the
minimum level as well as maximizing the shareholders’ and other investors’ profits. Based on
these objectives, the basic risk management policy is to recognize and analyze all sorts of risk
that the Company faced with, to set up the proper risk tolerance bottom line conducting risk
management, as well as to monitor these risks in a timely and effective manner, and to ensure
these risks under the limit level.
(1) Market risk
Most of the Company’s business is located in China, and settled with RMB. But the Company
defined exchange rate risk of assets, liabilities dominated in foreign currency and future
transaction dominated in foreign currency (mainly including USD, JPY, EURO,HKD and GBP).
The financial department of the Company monitors the Company’s foreign currency transaction
and the scale of foreign assets and liabilities, and decreases exchange rate risk. During the
current year the Company did not agree any forward foreign exchange contract or currency
swap contract .As at June 30,2026, the Company’s assets and liabilities dominated in foreign
currency are listed in RMB as following：
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Items June 30, 2026 January 1, 2026
Monetary fund-USD 13,684,557.74 10,539,621.43
Monetary fund-JPY 18,487,733.63 13,409,787.49
Monetary fund- EURO 86,049.60 400,386.29
Monetary fund- HKD 375,255.20 336,511.67
Receivable -USD 60,416,222.49 60,641,684.16
Receivable -GBP 1,325,029.00 1,325,029.00
Receivable -JPY 2,794,362.51 4,945,567.88
Receivable - EURO 17,768,042.81 5,539,903.08
Payables -USD 10,678,960.70 9,830,989.06
Payables -JPY 2,503,366.92 2,478,880.79
The group paid close attention to the effect on FX risk.
The interest risk of the group incurred from bank loan, risk of a floating interest rate of financial
liabilities that lead to the group facing cash flow interest rate risk, financial liabilities with a fixed
interest rate lead to the group facing cash flow interest rate risk. The company determined the proportion
of fixed interest rate and floating interest rate according the current market circumstance. The group’s
interest-bearing debt is borrowings of RMB 665,541,600.00 at fixed interest rate as of June
The financial department of the group continuously monitors the interest rates level, and the
management would make some adjustment to lower the interest rate risk according to the latest market
situation. Climbing interest rate will increase the cost of newly increased interest-bearing liability and
interest expense for unsettled interest-bearing liability at floating rate and have adverse effect on the
business performance.
The price risk of the Company is mainly commodity price risk. The Company sells products at market
prices. As the national economy enters the "new normal", the manufacturing industry is under great
economic downward pressure, and the drastic fluctuations of bulk material prices have a certain impact
on the group 's operations.
(2) Credit risk
The credit risk of the group comes from monetary fund, notes receivable, accounts receivable, and other
accounts receivable etc. The management made credit policies and monitored changes of this credit
exposure.
The group 's monetary fund was in bank with higher credit rating, so there was no significant credit risk,
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
nor significant losses due to the default of other entity. Upper limit policy is adopted to avoid any credit
risk from financial institution.
The group made relevant policy to control credit risk exposure from receivable, other receivable and
notes receivable. The group assesses the client’s credit background according to the client’s financial
performance, possibility of obtaining guarantee from the 3rd party, credit record and other factors such
as current market. The group will periodically monitor the credit situation of the client and will take
measures such as prompt letter, shorten credit period or cancel the credit to ensure the overall credit risk
within the controllable scope.
As at June 30, 2026, the top five customers of receivable accounts balance are 308,105,190.47 Yuan,
representing 11.64% of sum of receivable and contract assets.
(3) Liquidity risk
Liquidity risk was referred to the risk of shortage of funds incurred when the enterprise fulfills the
obligation of settlement by cash or other financial assets. The way to manage the liquidity risk is to
ensure enough fund available to fulfill the liability by due date in prevention from unacceptable loss of
or reputation damage to the group. The group periodically analyze the liability structure and expiry date
and the financial department of the group continued to monitors the short term or long-term capital
needs to ensure maintain plenty of cash flow. And the same time they also monitor the condition of bank
loan agreements and obtain commitments from banks to reduce liquidity risks.
The fund mainly comes from bank loan. By June 30, 2026, the credit limit still available is 982.34
million Yuan(765.66 million Yuan 2025) and short-term credit limit available is 982.34 million
Yuan(765.66 million Yuan 2025).
As at June 30, 2026, the group’s financial assets and financial liabilities in line with non-discounted cash
flow of the contracts as following：
Currency unity:10kYuan
Items Within 1 year 1-2 years 2-5 years Over 5 years Total
Financial Assets
Cash and cash in bank 62,170.55 62,170.55
Notes receivable 26,736.59 26,736.59
Accounts receivable 182,660.91 182,660.91
Financing receivable 35,936.19 35,936.19
Other Receivable 3,956.69 3,956.69
Contract asset 18,805.35 18,805.35
Other current asset 2,592.03 2,592.03
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Other non-current financial 168.39 168.39
asset
Long-term receivable 38.61 82.92 121.53
Financial Liabilities
Short-term loan 20,466.51 20,466.51
Notes Payable 63,870.54 63,870.54
Accounts payable 176,464.58 176,464.58
Other payable 21,988.40 21,988.40
Employee’s payable 4,476.58 4,476.58
Tax payable 2,110.62 2,110.62
Non-current liability due 19,756.70 19,756.70
within 1 year
Long-term loan 15,550.00 14,910.00 30,410.00
Lease obligation 362.76 876.57 1,239.33
Long-term payable 1,635.02 1,635.02
(1) Classified by transfer method
Transfer method Nature Amount Derecognition Basis for derecognition
Bank acceptance bill with high All risk and reward have been
Endorsement of a bill 257,999,105.00 Y
credit rating transferred
Bank acceptance bill with high All risk and reward have been
Discounting a bill 23,033,997.15 Y
credit rating transferred
Endorsement/discounti Bank/trade acceptance bill with Retain mostly risk and reward including
ng of a bill non-high credit rating default risk
All risk and reward have been
Factoring Receivable 7,190,000.00 Y
transferred
Total — 398,754,577.28 — —
(2) Derecognized financial asset due to transfer
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Derecognized Gain/loss from
Item Transfer method
Amount derecognition
Bank acceptance bill with
Endorsement of a bill 257,999,105.00
high credit rating
Bank acceptance bill with
Discounting a bill 23,033,997.15 -69,838.86
high credit rating
Factoring without
Receivable 7,190,000.00 -219,456.37
recourse
Total — 288,223,102.15 -289,295.23
XIII. Related Parties Relationship and Transactions
i. Related parties’ relationship
(1) Controlling shareholder and ultimate controller
Registered Business Registered Shareholding Voting power
Parent company
address nature capital（10K） percentage (%) percentage (%)
Dalian Bingshan
Dalian Manufacture 11,108.00 20.27 20.27
Group Co., Ltd.
Note: Dalian Bingshan Group Co., Ltd. is a Sino –foreign joint venture located No.106 Liaohe
East Road, DDZ, Dalian, China. The legal representative of Dalian Bingshan Group Co., Ltd. is
Mr. Ji Zhijian, and the registered capital is RMB158.58 million. The registered business
operation period is from 3rd July 1985 to 2nd July 2035. The business scope includes research,
development, manufacture, sales, service and installment of refrigeration equipment, cooling
and freezing equipment, different size of air-conditioners, petrochemical equipment, electronic
and electronic- control products, home electronic appliance, environment protect equipment and
etc. (unless the licenses needed)
The Company’s ultimate controller is Dalian Bingshan Group Co., Ltd.
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Referrer to the content in the Note “VIII. 1. (1) Organization structure of group company”.
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 with
related parties during the current period or last period, including:
Names of the joint ventures or affiliated company Relationships with the Company
Keinin-Grand Ocean Thermal Technology (Dalian) Co., Ltd. Affiliated company of the Company
Dalian Fuji Bingshan Vending Machine Co., Ltd. Affiliated company of the Company
Dalian Fuji Bingshan Vending Machine Sales Co., Ltd. Affiliated company of the Company
Jiangsu Jingxue Insulation Technology Co., Ltd. Affiliated company of the Company
MHI Bingshan Refrigeration (Dalian) Co., Ltd. Affiliated company of the Company
Dalian Honjo Chemical Co., Ltd. Affiliated company of the Company
Dalian Bingshan Metal Technology Co., Ltd. Affiliated company of the Company
Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd. Affiliated company of the Company
Dalian Bingshan Group Huayida Commercial Factoring Co., LTD Subsidiary of its affiliated company
Dalian Jingxue Freezing Equipment Co., Ltd. Subsidiary of its affiliated company
Shanghai Jingxue Freezing Equipment Co., Ltd. Subsidiary of its affiliated company
Jiangsu Jingxue Insulation Environmental Engineering Co., Ltd. Subsidiary of its affiliated company
Wuhan Sikafu Power Control Equipment Co., Ltd. Affiliated company of its subsidiary
PT BINGSHANMAKMUR INDONESTA Affiliated company of its subsidiary
Name of related party Related party relationship
Company under direct/indirect Control of Panasonic Co., Both parties are under the control of or significant
Ltd influence by the same party
Both parties are under the control of or significant
Sanyo Corporation
influence by the same party
Panasonic Corporation of China Co., Ltd Directors of the Company also serve as directors
Both parties are under the control of or significant
Dalian Spindle Environmental Facilities Co., Ltd.
influence by the same party(Within the past 12 months)
Both parties are under the control of or significant
LINDE HYDROGEN FUELTECH (DALIAN) CO., LTD.
influence by the same party
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Name of related party Related party relationship
Both parties are under the control of or significant
Linde Engineering (Dalian) Co., Ltd.
influence by the same party
Both parties are under the control of or significant
Dalian Shentong Electric Co., Ltd,
influence by the same party
Both parties are under the control of or significant
Dalian Fuji Bingshan Control System Co., Ltd.
influence by the same party
Both parties are under the control of or significant
BAC Dalian Co., Ltd.
influence by the same party
The Company director serves as a director of that
Dalian Bingshan Wisdom Park Co., Ltd.
company
Dalian Binggu Hotel Management Co., Ltd. The Company director serves as a director of that
company
Dalian Xiangu Intelligent Technology Co., Ltd. The Company director serves as a director of that
company
The Company director serves as a director of that
Alphavita Bio-scientific (Dalian) Co., Ltd.
company
Bingshan Technology Service （Dalian） Co., Ltd. Under control of the same ultimate controlling party
The Company director serves as a director of that
Sonyo Cold Chain (Dalian) Co., Ltd.
company
The Company director serves as a director of that
Sonyo Cold Chain (Dalian) Equipment (Wuhan) Co., LTD
company
The Company director serves as a director of that
Dalian Kangyang Industry Group Co., LTD
company
Dalian State-owned Assets Investment and Management An associated natural person serves as a director of the
Group Co.,Ltd. company
Note: Companies under direct/indirect Control of Panasonic Co., Ltd are:
Panasonic Electric Taiwan Co.,Ltd. , Wanbao(Guangzhou) Compressor Co.,Ltd, , Panasonic
Electronic Devices(Jiangmen)Co.,Ltd. , Panasonic R&D Center Suzhou Co.,Ltd Dalian Branch ,
Panasonic Corporation, Panasonic Industry (China) Co., Ltd. , Shanghai Branch, Appliances
Microwave Oven(Shanghai) Co.,Ltd. , Panasonic Motor(Hangzhou)Co.,Ltd. , Panasonic
Electric Equipment (China）Co.,Ltd. , Panasonic Appliances Air-Conditioning and Refrigeration
Corporation, Panasonic Home Appliances (China) Co.,Ltd. , Panasonic
Procurement(CHINA)Co.,Ltd. , Panasonic Industry (China) Co., Ltd. , Panasonic Home
Appliances(Hangzhou)Co.,Ltd. , Singapore Panasonic Cold Chain Asia, Panasonic Sales Taiwan
Co Ltd..
Panasonic Appliances Air-Conditioning Malaysia Sdn.Bhd.、Panasonic Cold Chain Poland Sp. Z
O.O. 、 Panasonic Connect Co.,Ltd.Media Entertainment Business Division 、 Panasonic
Corporation 、 Panasonic Corporation Appliances Company Heating ＆ Cooling Solutions Bd
Commercial Air-Conditionin 、 Panasonic Corporation Appliances Company 、 Panasonic
Corporation Heating & Ventilation A/C Company Heating And Cooling Devices Business
Division、Panasonic Corporation Heating & Ventilation Ac Company Commercial Equipment
Solutions Business Division、Panasonic Do Brasil Limitada Miami Branch、Panasonic Heating
And Ventilation Air-Conditioning Czech,S.R.O.、Panasonic Hong Kong Co,.Ltd.、Panasonic
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
India Pvt Ltd (Apin) 、 Panasonic Industrial Devices Sales Company Of America 、Panasonic
Industrial Devices Sales Taiwan Co.,Ltd. 、 Panasonic Industrial Devices Sales(M)Sdn Bhd 、
Panasonic Industry Europe Gmbh 、 Panasonic Industry Sales Asia Pacific 、 Panasonic Life
Solutions India Private Limited 、 Panasonic Operational Excellence Co.,Ltd. 、 Panasonic
Operational Excellence Co.,Ltd. （ Pex ） 、 Panasonic Taiwan Co.,Ltd. 、 Panasonic A.P.Sales
(Thailand)Co.Ltd、Panasonic Corporation、Panasonic Corporation Appliances Company.
ii. Related Party transactions
(1) Purchase of goods/receive labour services
Related party Content 2026.01-06 2025.01-06
BAC Dalian Co., Ltd. Purchases of goods 4,879,054.03 12,891,976.50
Bingshan Technology Service （Dalian） Co., Ltd. Purchases of goods 4,178,879.64 9,238,810.28
Sonyo Cold Chain (Dalian)Co. Ltd Purchases of goods 59,222,021.14 41,445,471.06
Alphavita Bio-scientific (Dalian) Co., Ltd. Purchases of goods 186,856.60 93,428.30
Dalian Honjo Chemical Co., Ltd Purchases of goods 11,409,168.93 1,392,076.63
Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd Purchases of goods 81,392.27 7,208.11
Dalian Bingshan Metal Technology Co., Ltd. Purchases of goods 26,299,959.10 28,338,772.07
Dalian Fuji Bingshan Control System Co., Ltd. Purchases of goods 1,158,277.88 1,999,595.78
Dalian Fuji Bingshan Vending Machine Co., Ltd Purchases of goods 1,305.15 18,241.71
Dalian Fuji Bingshan Vending Machine Sales Co., Ltd Purchases of goods 19,469.03
Dalian Jingxue Insulation Technology Co., Ltd. Purchases of goods 188,197.35 1,999,595.78
Dalian Shentong Electric Co., Ltd. Purchases of goods 2,851,649.36 4,010,542.09
Jiangsu Jingxue Insulation Technology Co., Ltd. Purchases of goods 1,160,344.94 7,600,991.19
Shanghai Jingxue Insulation Technology Co., Ltd. Purchases of goods 870,030.99
Company under direct/indirect Control of Panasonic Co., Ltd Purchases of goods 10,139,961.55 21,681,272.45
Dalian Spindle Environmental Facilities Co., Ltd Purchases of goods 1,830,566.22 4,180,530.98
Receive labor
Dalian Bingshan Wisdom Park Co., Ltd 898,329.32 1,135,740.74
services
Receive labor
Dalian Bingshan Group Co., Ltd. 65,696.01 21,681,272.45
services
Receive labor
Dalian Binggu Hotel Management Co., Ltd. 1,188.12 4,180,530.98
services
(2) Sales of goods/ labour services provision
Related party Content 2026.01-06 2025.01-06
Company under direct/indirect Control of Panasonic Co., Ltd Sales of goods 137,983,652.70 163,578,247.40
Sonyo Cold Chain (Dalian) Co., Ltd Sales of goods 81,293,578.23 68,651,671.06
BAC Dalian Co., Ltd Sales of goods 89,089,916.14 61,674,033.25
Bingshan Technology Service （Dalian） Co., Ltd. Sales of goods 9,141,932.95 8,423,665.24
Dalian Fuji Bingshan Vending Machine Co., Ltd Sales of goods 1,514,999.69 3,221,321.30
Dalian Bingshan Wisdom Park Co., Ltd Sales of goods 304,214.17 383,661.03
MHI Bingshan Refrigeration (Dalian) Co., Ltd. Sales of goods 3,078,477.58 4,776,622.01
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Related party Content 2026.01-06 2025.01-06
Alphavita Bio-scientific (Dalian) Co., Ltd. Sales of goods 761,706.90 1,615,598.37
Dalian Honjo Chemical Co., Ltd Sales of goods 2,862,249.94 2,173,330.51
Dalian Fuji Bingshan Control System Co., Ltd. Sales of goods 1,929,667.17
Dalian Bingshan Metal Technology Co., Ltd. Sales of goods 1,098,503.06 296,199.40
Dalian Shentong Electric Co., Ltd Sales of goods 108,600.87 249,203.55
Dalian Jingxue Freezing Equipment Co., Ltd Sales of goods 51,556.08 0.00
Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd Sales of goods 2,991,150.45
Wuhan Sikafu Power Control Equipment Co., Ltd. Sales of goods 25,957.36 70,027.60
Sonyo Cold Chain (Dalian) Equipment (Wuhan) Co., Ltd. Sales of goods 3,540,225.50 1,517,802.35
Linde Engineering (Dalian) Co., Ltd. Sales of goods 8,321.10
Dalian Bingshan Group Co., Ltd. Sales of goods 84,905.66 0.00
Dalian Spindle Environmental Facilities Co., Ltd Sales of goods 131,801.94 436,300.59
Supply labor
Dalian Fuji Bingshan Control System Co., Ltd. 249,213.96
services
Supply labor
Dalian Bingshan Group Co., Ltd. 8,606.62 4,391.14
services
Supply labor
Dalian Shentong Electric Co., Ltd 2,644.50 7,002.84
services
(3) Assets Lease
Assets rent out
Current
Category of Last period Lease
Lessee period Lease
assets rent out Income
Income
Dalian Bingshan Wisdom Park Co., Ltd Land/property 6,140,264.35 4,506,673.78
MHI Bingshan Refrigeration (Dalian) Co., Ltd. Plant 1,913,862.82 1,904,761.90
Sonyo Cold Chain (Dalian) Equipment (Wuhan) Co., Plant /Employee
Ltd. dormitory
Office/ Plant
Company under direct/indirect Control of Panasonic
/Employee 387,405.72 381,668.58
Co., Ltd
dormitory
Dalian Jingxue Freezing Equipment Co., Ltd Plant and office 326,408.92 381,454.77
Wuhan Sikafu Power Control Equipment Co., Ltd Plant 360,522.94 496,132.49
Bingshan Technology Service （Dalian） Co., Ltd. Plant and office 163,289.51 147,436.30
Dalian Xiangu Intelligent Technology Co., Ltd. Equipment 272,787.61
Dalian Spindle Environmental Facilities Co., Ltd. Office 880.72
Assets under lease
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Category of assets Lease premium paid
Lessor
rent in 2026.01-06 2025.01-06
Dalian Bingshan Group Huahuida Financial
Fixed asset 3,113,463.00 3,446,272.00
Leasing Co., Ltd
Sonyo Cold Chain (Dalian)Co. Ltd Plant 1,700,966.97
(Continued)
Interests on lease liabilities Increased right-of-use assets
Lessor
Dalian Bingshan Group Huahuida
Financial Leasing Co., Ltd
Sonyo Cold Chain (Dalian)Co. Ltd 157,060.35
Funds borrow from /lent to related party
Name of the related party Amount Starting date Ending date Explanation
Funds in
Dalian Bingshan Group Huahuida Financial Leasing 14,750,000.0 Sale and
Co.,Ltd 0 leaseback
Dalian Bingshan Group Huahuida Financial Leasing 13,805,309.7 Sale and
Co.,Ltd 3 leaseback
Dalian Bingshan Group Huahuida Financial Leasing Sale and
Co.,Ltd leaseback
Dalian Bingshan Group Huahuida Financial Leasing Sale and
Co.,Ltd leaseback
Dalian Bingshan Group Huahuida Financial Leasing Sale and
Co.,Ltd leaseback
Dalian Bingshan Group Huahuida Financial Leasing Sale and
Co.,Ltd leaseback
Dalian Bingshan Group Huahuida Financial Leasing Sale and
Co.,Ltd leaseback
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial 1,800,000.00 2024.10.31 2026.10.30 Factoring
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
Dalian Bingshan Group Huayida Commercial
Factoring Co., Ltd
iii. Balances with Related party
Closing Balance
Item Related party
Book Balance Bad debt Provision
Accounts receivable Sonyo Cold Chain (Dalian)Co. Ltd. 75,178,026.79 4,245,678.65
Accounts receivable BAC Dalian Co., Ltd 47,633,756.22 3,343,889.68
Accounts receivable Company under direct/indirect Control of
Panasonic Co., Ltd.
Accounts receivable Bingshan Technology Service（Dalian）Co., Ltd. 16,129,190.14 1,340,826.01
Accounts receivable Sonyo Cold Chain Equipment (Wuhan) Co., Ltd. 11,364,602.43 797,795.09
Accounts receivable Dalian Bingshan Wisdom Park Co., Ltd. 13,459,491.87 2,599,142.73
Accounts receivable Dalian Fuji Bingshan Vending Machine Co., Ltd. 2,265,667.82 159,049.88
Accounts receivable Alphavita Bio-scientific (Dalian) Co., Ltd. 1,987,379.63 150,572.06
Accounts receivable Linde Hydrogen Fueltech (Dalian) Co., Ltd. 1,539,244.44 136,865.17
Accounts receivable MHI Bingshan Refrigeration (Dalian) Co., Ltd. 2,902,070.24 215,035.08
Accounts receivable Dalian Health and Wellness Industry Group Co.,
Ltd
Accounts receivable PT BINGSHAN MAKMUR INDONESTA 704,650.00 85,040.66
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Accounts receivable Dalian Bingshan Group Huahuida Financial
Leasing Co., Ltd.
Accounts receivable Linde Engineering (Dalian) Co., Ltd. 22,144.33 3,706.96
Accounts receivable Dalian Shentong Electric Co., Ltd 16,118.00 927.69
Contract asset Bingshan Technology Service（Dalian）Co., Ltd. 598,400.65 19,262.80
Contract asset Sonyo Cold Chain (Dalian)Co. Ltd. 6,200.00 435.24
Other receivable Bingshan Technology Service（Dalian）Co., Ltd. 417,280.00 15,272.45
Wuhan Sikafu Power Control Equipment Co.,
Other receivable 10,535.84 385.61
Ltd.
Dalian Bingshan Group Huayida Commercial
Other receivable 23,573.33 862.78
Factoring Co., Ltd.
Prepayment Dalian Shentong Electric Co., Ltd 5,506,668.65
Prepayment BAC Dalian Co., Ltd 474.60
Prepayment Shanghai Jingxue Insulation Technology Co., Ltd. 54,431.10
Prepayment Company under direct/indirect Control of
Panasonic Co., Ltd.
Prepayment Jiangsu Jingxue Insulation Technology Co., Ltd. 13,610.00
Prepayment Dalian Fuji Bingshan Control System Co., Ltd. 113,072.02
Prepayment Sonyo Cold Chain (Dalian)Co. Ltd. 399,893.11
Prepayment Dalian Bingshan Group Huahuida Financial
Leasing Co., Ltd.
(Continued)
Opening Balance
Item Related party
Book Balance Bad debt Provision
Accounts receivable Sonyo Cold Chain (Dalian)Co. Ltd. 82,215,721.94 5,771,543.68
Accounts receivable BAC Dalian Co., Ltd 32,884,151.56 2,308,467.44
Accounts receivable Company under direct/indirect Control of
Panasonic Co., Ltd.
Accounts receivable Bingshan Technology Service （Dalian） Co.,
Ltd.
Accounts receivable Sonyo Cold Chain Equipment (Wuhan) Co.,
Ltd.
Accounts receivable Dalian Bingshan Wisdom Park Co., Ltd 6,779,040.11 2,315,259.55
Accounts receivable Dalian Fuji Bingshan Vending Machine Co.,
Ltd
Accounts receivable Alphavita Bio-scientific (Dalian) Co., Ltd. 2,894,365.08 232,267.21
Accounts receivable Linde Hydrogen Fueltech (Dalian) Co., Ltd 1,539,244.44 136,865.17
Accounts receivable MHI Bingshan Refrigeration (Dalian) Co., Ltd. 1,381,095.17 101,569.87
Accounts receivable Dalian Health and Wellness Industry Group
Co., Ltd
Accounts receivable PT BINGSHAN MAKMUR INDONESTA 451,337.50 31,683.89
Accounts receivable Dalian Bingshan Group Huahuida Financial
Leasing Co., Ltd.
Accounts receivable Linde Engineering (Dalian) Co., LTD 22,144.33 3,706.96
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Accounts receivable Dalian Shentong Electric Co., Ltd 2,202.00 154.58
Bingshan Technology Service （Dalian） Co.,
Contract asset 598,400.65 19,262.80
Ltd.
Contract asset Sonyo Cold Chain (Dalian)Co. Ltd. 6,200.00 435.24
Bingshan Technology Service （Dalian） Co.,
Other receivable 400,000.00 14,640.00
Ltd.
Wuhan Skaff Power Control Equipment Co.,
Other receivable 12,748.03 466.58
Ltd.
Dalian Bingshan Group Huayida Commercial
Other receivable
Factoring Co., Ltd.
Prepayment Dalian Shentong Electric Co., Ltd 6,639,791.89
Prepayment BAC Dalian Co., Ltd 385,423.52
Shanghai Jingxue Insulation Technology Co.,
Prepayment 383,059.40
Ltd.
Prepayment Company under direct/indirect Control of
Panasonic Co., Ltd.
Prepayment Jiangsu Jingxue Insulation Technology Co.,
Ltd.
Prepayment Dalian Fuji Bingshan Control System Co., Ltd. 113,072.02
Prepayment Sonyo Cold Chain (Dalian)Co. Ltd. 58,800.00
Prepayment Dalian Bingshan Group Huahuida Financial
Leasing Co., Ltd.
Closing Opening
Item Related party
Balance Balance
Accounts Payable Jiangsu Jingxue Insulation Technology Co.,Ltd 22,675,429.27 34,252,465.26
Accounts Payable Sonyo Cold Chain (Dalian)Co., Ltd. 59,140,071.88 33,900,564.23
Accounts Payable Bingshan Technology Service （Dalian） Co., Ltd. 6,515,036.53 14,357,617.55
Accounts Payable Dalian Bingshan Metal Technology Co., Ltd, 12,094,904.38 12,076,246.08
Accounts Payable BAC Dalian Co., Ltd 2,643,868.78 10,433,242.08
Accounts Payable Dalian Honjo Chemical Co., Ltd. 9,571,044.77 3,006,167.36
Accounts Payable Dalian Shentong Electric Co., Ltd 1,965,060.47 1,410,292.94
Company under direct/indirect Control of Panasonic
Accounts Payable 2,537,325.19 1,322,559.18
Co., Ltd
Jiangsu Jingxue Insulation Environmental Engineering
Accounts Payable 1,017,525.00
Co., Ltd
Accounts Payable Dalian Bingshan Part Technology Co., Ltd. 1,309,278.51
Accounts Payable Dalian Fuji Bingshan Control System Co., Ltd. 528,991.64 528,991.64
Accounts Payable Dalian Fuji Bingshan Vending Machine Co., Ltd 24,819.94 23,514.79
Dalian State-owned Assets Investment and Management
Other payable 239,013.54 3,639,632.23
Group Co., Ltd.
Other payable Dalian Fuji Bingshan Control System Co., Ltd. 1,296,055.00 1,340,000.00
Company under direct/indirect Control of Panasonic
Other payable 229,728.24 1,015,476.74
Co., Ltd
Other payable Dalian Jingxue Freezing Equipment Co., Ltd. 70,000.00 70,000.00
Other payable Wuhan Sikafu Power Control Equipment Co., Ltd 65,495.00 65,495.00
Other payable Sanyo Corporation 19,249.06
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Dalian Bingshan Group Huayida Commercial Factoring
Other payable 31,885.32
Co., Ltd.
Long-term Dalian Bingshan Group Huahuida Financial Leasing
payable Co., Ltd
Long-term Dalian Bingshan Group Huayida Commercial Factoring
payable Co., Ltd.
Non-current
Dalian Bingshan Group Huahuida Financial Leasing
liability due 7,155,176.23 6,388,277.92
Co., Ltd
within 1 year
Non-current
Dalian Bingshan Group Huayida Commercial Factoring
liability due 4,341,155.78 6,103,062.21
Co., Ltd.
within 1 year
Short-term Dalian Bingshan Group Huayida Commercial Factoring
borrowing Co., Ltd.
Contract liability Dalian Honjo Chemical Co., Ltd. 266,308.00
Contract liability Sonyo Cold Chain (Dalian) Co. Ltd. 190,455.04
Company under direct/indirect Control of Panasonic
Contract liability 42.54 14,845.32
Co., Ltd.
Contract liability PT BINGSHAN MAKMUR INDONESTA 7,200,940.00
Other current
Sonyo Cold Chain (Dalian)Co. Ltd. 24,759.15
liability
Accounts Payable Dalian Jingxue Insulation Technology Co., Ltd. 32,310.00
Other payable Dalian Bingshan Wisdom Park Co., Ltd 3,559.80
Other payable Jiangsu Jingxue Insulation Technology Co., Ltd. 10,091,410.31
iv. Related Party Commitment
None
v. Others
None
XIV. Share-Based Payment
None
XV. Contingency & commitment
None
Up to June 30, 2026, guarantee obligations undertaken by the Company due to financial
leasing.
The Company sold water chiller and heat pump to Shangdong Jiechuang Energy
Technology Co., Ltd (“Shandong Jiechuang”) in the form of financial lease. The Company
as a seller singed finance lease contract with Huahuida as both a buyer and a lessor and
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Shandong Jiechuang as a lessee. The contract price is 6.998million Yuan. Shandong
Jiechuang had made 10% down payment, and remaining 6.2982million Yuan is underlined
the leasing contract amount. In case the lease premium is delayed by the lessee, the
Company needs to pay lease premium on behalf of the lessee and be obliged to the buy
back responsibility. Shandong Jiechuang issued an unconditional, irrevocable and
joint liability counter guarantee, and the Company is the beneficiary. Guarantee scope
covers the full liability because of the sales in the form of financial lease. As at June 30,
Yuan.
Dalian Bingshan-RYOSETSU Quick Freezing Equipment Co., Ltd. (‘Bingshan-
RYOSETSU’), the subsidiary of the Company sold refrigeration equipment to Jilin Fuyu
Agricultural Technology Co., Ltd (‘Jinlin Fuyu’) in the form of financial lease. Bingshan-
RYOSETSU as a seller singed finance lease contract with Huahuida as both a buyer and a
lessor and Jinlin Fuyu as a lessee. The contract price is 20.50million Yuan. In case the lease
premium is delayed by the lessee, Bingshan- RYOSETSU needs to pay lease premium on
behalf of the lessee and be obliged to the buy back responsibility. Due to operational issues
with Jilin Fuyu, repayment has been delayed. Bingshan- RYOSETSU received a "Notice of
Advance Payment Performance for Jilin Fuyu Project" from Huahuida on July 30, 2026,
requiring it to fulfill its guarantee responsibilities. Bingshan- RYOSETSU will advance
monthly rent starting from August 2026, with a total advance payment of 9.1385 million
yuan. In view of the above situation, Bingshan- RYOSETSU has provisioned an estimated
liability of 1.3016 million yuan in its 2026 semi-annual financial statements.
Until June, 30, 2026, the balance of all guarantee obligation of the financial lease is RMB
liability as the lessees’ default.
There are no other significant or contingent matters to be disclosed until June, 2026.
XVI. Events after the Balance Sheet Date
The Company has no significant subsequent event after the balance sheet date.
XVII. Other Significant Events
No.
No.
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
(1) The exchange of non-monetary assets
No.
(2) The exchange of other assets
No.
No.
No.
The management of the group divided the business into 2 segments based on the geographic
area: Northeast China and Central China. The Northeast is the Company’s general headquarters
and the subsidiaries registered in Dalian. The Central includes Chengdu Bingshan Refrigeration
Engineering Co., Ltd, Wuhan New World Refrigeration Industrial Co., Ltd and its subsidiary,
Wuhan New World Air-conditioning Refrigeration Engineering Co., Ltd.
(1) The basis and accounting policies of reporting segments
The internal organization structure, management requirements and internal report scheme are
the determination basis for the Company to set the operating segments. The segments are those
satisfied the following requirements.
allocate resource, assess its performance.
segments can be acquired.
The group confirms the report segments based on the operating segments. The transfer price
among segments is set base on the market price. The assets and related expenses in common use
are allocated to different segments based on their proportion of revenue.
(2) The financial information of reporting segments
Amount unit ： Yuan
Items Northeast China Central China Offset Total
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Items Northeast China Central China Offset Total
Impairment loss on assets 68,305,329.65 4,209,163.46 72,514,493.11
Impairment loss on credit -1,277,599.51 -124,148.67 206,082.50 -1,195,665.68
Depreciation and amortization -5,284,904.35 1,981,336.05 -1,424,946.82 -4,728,515.12
Investment income from associates
and joint venture
Operating profits(loss) 72,490,558.56 -3,194,830.98 -12,682,410.71 56,613,316.87
Income tax 8,719,535.32 12,360.29 -568,956.03 8,162,939.58
Net profit(loss) 63,771,023.24 -3,207,191.27 -12,113,454.68 48,450,377.29
Total assets 9,848,438,359.88 485,237,784.49 -2,891,975,754.73 7,441,700,389.64
Total liabilities 4,490,548,653.99 414,616,698.10 -682,884,483.35 4,222,280,868.74
(3) Others
None
The group hasn’t had other important transactions and matters affect the investor's decision in
this period.
XVIII. Notes to the Main Items of the Financial Statements of Parent Company
(1) Bad debt provisions under accounting aging analysis method:
Aging Closing Balance Opening Balance
Within 1 year 396,283,498.87 329,107,924.75
Over 3 years 186,990,814.79 193,088,054.03
Over 5 years 94,230,401.20 120,583,526.17
Total 755,719,109.06 663,460,037.15
(2) Accounts receivable category
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Closing Balance
Item Booking balance Provision
Booking value
Amount % Amount %
Bad debt provision on group 755,719,109.06 100.00% 201,711,225.19 26.69% 554,007,883.87
(1) Accounting age as
characters
(2) Related party within
consolidation scope
Total 755,719,109.06 100.00% 201,711,225.19 26.69% 554,007,883.87
(Continued)
Opening Balance
Item Booking balance Provision Booking
Amount % Amount % balance
Bad debt provision on group 663,460,037.15 100.00% 200,127,593.93 30.16% 463,332,443.22
(1) Accounting age as
characters
(2) Related party within
consolidation scope
Total 663,460,037.15 100.00% 200,127,593.93 30.16% 463,332,443.22
(3) Bad debt provision
Change during the year
Closing
Category Opening balance
Accrued Collected/ Balance
Written-off Other
reversed
Bad debt
provision
Total 200,127,593.93 1,583,631.26 201,711,225.19
Item Closing Balance Opening Balance
Interest receivable - -
Dividend receivable 10,542,431.14 160,000,000.00
Other receivable 31,116,573.00 31,936,403.02
Total 41,659,004.14 191,936,403.02
Item Closing Balance Opening Balance
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Sonyo Refrigeration System (Dalian)Co., Ltd. 9,950,103.85
Dalian Bingshan Group Huahuida Financial Leasing Co., Ltd 592,327.29
Sonyo Compressor (Dalian)Co., Ltd. 160,000,000.00
Total 10,542,431.14 160,000,000.00
(1) The category of other receivables
Items Closing Balance Opening Balance
Receivables and payables 21,935,014.23 21,672,864.74
Petty cash 8,766,312.16 10,098,294.00
Deposits 1,128,186.89 802,756.27
Others 177,051.00 283,625.00
Total 32,006,564.28 32,857,540.01
(2) Other receivable listed by account aging
Aging Closing Balance Opening Balance
Within 1 year 3,087,641.25 6,364,219.32
Over 3 years 24,189,679.63 23,417,521.00
Over 5 years 21,661,904.00 21,611,904.00
Total 32,006,564.28 32,857,540.01
(3) Other receivable classified by provision method
Closing Balance
Item Booking balance Provision Booking value
Amount % Amount %
Bad debt provision
- - - - -
on individual
Bad debt provision
on group
(1) Accounting age
as characters
(2) Related party
within 20,000,000.00 62.49% 20,000,000.00
consolidation
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
scope
Total 32,006,564.28 100.00% 889,991.28 2.78% 31,116,573.00
(continued)
Opening Balance
Item Booking balance Provision Booking value
Amount % Amount %
Bad debt provision on
- - - - -
individual
Bad debt provision on
group
(3) Accounting age as
characters
(4) Related party
within 20,000,000.00 60.87% 20,000,000.00
consolidation scope
Total 32,857,540.01 100.00% 921,136.99 2.80% 31,936,403.02
Closing Balance
Aging Provision for bad Drawing Proportion
Accounts receivable
debts (%)
Within 1 year 3,087,641.25 113,781.67 3.69%
Over 5 years 1,661,904.00 392,142.80 23.60%
Total 12,006,564.28 889,991.28
Expected Expected credit Expected credit loss
bad debt
credit loss loss within the within the whole Total
provision
within 12 whole period(no period(impairment
months impairment) incurred)
Opening balance 422,418.52 498,718.47 921,136.99
Opening balance
— — — —
during the year
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
--transfer to the
--transfer to the
--reverse to the
----reverse to the
Accrued -31,145.71 -31,145.71
Reverse
Cancelation
Written off
Other movement
Closing balance 391,272.81 498,718.47 889,991.28
(4) Bad debt provision details
Change during the year
Opening Closing
Category Accrued Collected/
balance Written-off Others Balance
reversed
Bad debt
provision
Total 921,136.99 -31,145.71 889,991.28
(5) Other receivables from the top 5 debtors
Closing
Closing % of
Name Category Aging Balance of
Balance the total
Provision
No.1 Receivables and payables 20,000,000.00 Over5 years 62.49%
No.2 Other deposit 1,100,000.00 Over5 years 3.44% 40,260.00
No.3 Bid deposit 800,000.00 4-5 years 2.50% 29,280.00
No.4 Bid deposit 800,000.00 3-4 years 2.50% 29,280.00
No.5 Bid deposit 800,000.00 1-2 years 2.50% 29,280.00
Total — 23,500,000.00 — 73.43% 128,100.00
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
(1) Category of long-term equity investments
Closing Balance Opening Balance
Item
Closing Balance Provision Book Value Opening Balance Provision Book Value
Investment of subsidiaries 2,425,108,433.14 2,425,108,433.14 2,422,108,433.14 2,422,108,433.14
Investment of affiliates
and JV
Total 2,907,311,253.08 2,907,311,253.08 2,894,643,627.80 2,894,643,627.80
(2) Investments of subsidiaries
Provision for Increase/Decrease
Provision for
Beginning impairment
Investee Provision for Ending balance impairment
balance at beginning Increased Decreased Others
impairment at year end
of year
Dalian Bingshan Group Engineering
Co., Ltd
Dalian Bingshan Air-Conditioning
Equipment Co., Ltd
Dalian Bingshan Guardian
Automation Co., Ltd
Dalian Bingshan-RYOSETSU Quick
Freezing Equipment Co., Ltd
Dalian Universe Thermal Technology
Co., Ltd
Wuhan New World Refrigeration
Industrial Co., Ltd
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Provision for Increase/Decrease
Provision for
Beginning impairment
Investee Provision for Ending balance impairment
balance at beginning Increased Decreased Others
impairment at year end
of year
Dalian Bingshan Engineering &
Trading Co., Ltd
Sonyo Compressor (Dalian)Co., Ltd 1,380,455,603.23 1,380,455,603.23
Sonyo Refrigeration System (Dalian)
Co., Ltd
Sonyo Refrigeration (Dalian) Co., Ltd 145,285,500.00 145,285,500.00
Total 2,422,108,433.14 3,000,000.00 2,425,108,433.14
(3) Joint ventures& affiliated companies
Increase/Decrease
Provision
Adjustme
for
Provision for Gains and losses nt of
Beginning Cash bonus or Provision impairme
Investee impairment recognized under other Changes of Ending balance
balance Increased Decreased profits for Others nt
at beginning the equity comprehe other equity
announced impairment at year
of year method nsive
end
income
Dalian Honjo
Chemical Co., Ltd
Keinin-Grand Ocean
Thermal Technology 49,614,057.86 -1,538,958.16 48,075,099.70
(Dalian) Co., Ltd
Dalian Fuji Bingshan
Vending Machine Co., 67,119,564.34 -596,912.66 66,522,651.68
Ltd
MHI Bingshan
Refrigeration (Dalian) 17,053,051.54 -1,456,899.31 15,596,152.23
Co., Ltd.
Dalian Fuji Bingshan
Vending Machine
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Increase/Decrease
Provision
Adjustme
for
Provision for Gains and losses nt of
Beginning Cash bonus or Provision impairme
Investee impairment recognized under other Changes of Ending balance
balance Increased Decreased profits for Others nt
at beginning the equity comprehe other equity
announced impairment at year
of year method nsive
end
income
Sales Co., Ltd
Jiangsu Jingxue
Insulation Technology 143,558,044.80 *.** *.**
Co., Ltd
Bingshan Metal
Technical Service 138,895,377.85 12,049,558.21 150,944,936.06
（Dalian） Co., Ltd.
Dalian Bingshan
Group Huahuida
Financial Leasing
Co., Ltd
Total 472,535,194.66 10,259,952.57 592,327.29 482,202,819.94
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
Item
Revenue Cost Revenue Cost
Revenue from main
operation
Revenue from other
operation
Total 346,561,321.87 292,026,055.49 443,470,670.15 382,684,101.95
Items 2026.01-06 2025.01-06
Long-term equity investment gain under cost method 9,950,103.85
Long-term equity investment gain under equity method 10,259,952.57 22,713,836.61
Gain on debt restructuring 58,274.10
Bank acceptance bill discount fee -34,872.64
Total 20,233,457.88 22,713,836.61
None
XIX. Approval of Financial Statements
The parent and consolidated financial statements of the Company were approved by the Board
of Directors of the Company on August 12, 2026.
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2026 Semiannual Report
XX. Supplementary Information to the Financial Statements
Earnings per share
Weighted
(EPS)
Profit of report period average return
Basic Diluted
on net assets
EPS EPS
Net profit attributable to shareholders of parent
company
Net profit after deducting non-recurring gains and
losses attributable to shareholders of parent company
Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd
August 12, 2026
