2022-04-22-深交所-冰山B_2021年年度报告（英文版）_188页_2mb

Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. 2021 Annual Report Summary

Core Content Overview

This document is the 2021 Annual Report of Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd., published in April 2022. It provides a comprehensive overview of the company’s operations, financial performance, strategic direction, and corporate governance during the reporting period, which spans January 1, 2021, to December 31, 2021.

Key Entities and Definitions

Company Information

• Stock Code: 000530 (Bingshan), 200530 (Bingshan B)
• Listed Exchange: Shenzhen Stock Exchange
• Registered Address: No.106, Liaohe East Road, Dalian Economic and Technological Development Zone (Postcode: 116630)
• Legal Representative: Ji Zhijian
• Website: www.bingshan.cn
• Email: 000530@bingshan.com

Main Financial Indicators (2021)

Key Financial Performance Highlights

• The Company experienced a significant loss in 2021, with a net profit attributable to shareholders of -269.06 million yuan, a -1,360.76% drop from 2020.
• The net profit after non-recurring items was -355.05 million yuan, a -5,893.56% decline.
• Operating revenue increased by 20.95%, reaching 2.09 billion yuan.
• Net cash flow from operations improved by 111.55%, showing recovery in cash generation.
• The Company's weighted average return on net assets dropped to -8.31%, indicating poor asset performance.

Main Business Overview

Bingshan focuses on refrigeration and heating industries, offering a comprehensive range of products and services across:

• Industrial refrigeration and heating
• Commercial refrigeration
• Air conditioning and environment
• Engineering and service
• New business fields such as CCUS, ORC, and photovoltaics

1. Industrial Refrigeration and Heating Business

• The company has reached the technical level of international competitors in industrial refrigeration.
• It has developed "industrial and commercial open screw refrigeration unit and refrigeration system", which was recognized as a "manufacturing single champion product" by the Ministry of Industry and Information Technology.
• The company realizes the balance of cold and heat through heat utilization, improving energy efficiency.

2. Commercial Refrigeration Business

• A core business, with leading experience in green intelligent cold chain solutions.
• Offers pre-cooling devices, quick-freezing equipment, and ammonia and CO₂ refrigeration systems.
• Patented products and innovative solutions are tailored to meet Chinese market needs.

3. Air Conditioning and Environment Business

• The company has developed energy-saving and environmentally friendly products aligned with the blue sky project.
• Transferred 30% equity in Dalian Bingshan Air Conditioning Equipment Co., Ltd. from Showa Iron Industry, now holding 100% ownership.

4. Engineering and Service Business

• Provides comprehensive solutions covering design, manufacturing, installation, and maintenance.
• Focuses on petrochemical, refrigeration, central air conditioning, and ice and snow engineering.
• Implements project general contracting and financial leasing to enhance service offerings.

5. New Business Fields

• Expands into CCUS, ORC, and photovoltaic technologies, aligning with national energy strategies.
• Makes significant progress in these new areas, especially in energy conservation and environmental protection.

Challenges and Opportunities

Opportunities

• National "Double Carbon" strategy and energy conservation policies drive demand for green and efficient refrigeration and heating systems.
• Cold chain logistics and ammonia refrigerant usage are expected to grow with new design standards.
• The 14th Five-Year Plan promotes cold chain development, creating potential for market expansion.

Challenges

• Intensified market competition and rising raw material prices negatively impact gross profit margin (down by 5.59 percentage points).
• Credit impairment losses increased due to higher accounts receivable.
• New financial instruments standards and impact of the pandemic on new retail equipment leasing caused a 149.93 million yuan drop in investment income.

Strategic Development and Future Outlook

• The company aims to promote business integration and innovate business models.
• It will focus on the hot and cold industry chain, aiming to enhance core competitiveness.
• Emphasizes technological innovation, market expansion, and sustainable development.
• The "double carbon" strategy and resource utilization are key drivers for future growth.
• The company is committed to achieving sustained, healthy, and harmonious development, becoming a trusted and respected enterprise.

Conclusion

Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. faces significant financial challenges in 2021, primarily due to rising costs, intensified competition, and external factors such as the pandemic. However, it has successfully expanded into new business areas, optimized engineering and service operations, and aligned with national energy and environmental strategies. The company is positioned for future growth through innovation, market expansion, and strategic restructuring.